Cities Index.
Agenda packet

Fontana City Council
September 13, 2022

Document
Agenda packet
Meeting
September 13, 2022
Body
Fontana City Council
Pages
235
Original file
115.5 MB
Text extracted from the city's file for reading and search. Open the original on fontana.legistar.com. That file is the official record.

In Favor of: J.N. Patton
Affects: As described therein
The location of the easement cannot be determined from record information.

7. Rights, rights of way, reservations and exceptions in the patent recorded July 10, 1899 in Book "F" of Patents, Page 249.

The location of the easement cannot be determined from record information.

8. An easement for pipe line and conduit and incidental purposes, recorded August 24, 1912 in Book 512 of Deeds, Page 322.

In Favor of: Jennie E. Biggin
Affects: Said Land
The location of the easement cannot be determined from record information.

9. An easement for water and pipe line and incidental purposes, recorded December 19, 1914 in Book 561 of Deeds, Page 136.

In Favor of: I.I. Bennett and Mabel Bennett
Affects: Said Land
The location of the easement cannot be determined from record information.

10. An easement for public utilities and incidental purposes, recorded November 28, 1951 in Book 2859,

Page 235 ends

In Favor of: Southern California Edison Company Ltd., a corporation Affects: As described therein

11. An easement for road and pipelines and incidental purposes, recorded December 2, 1953 in Book 3287, Page 151 of Official Records.

In Favor of: John C. Mahler and Grace Mahler
Affects: Said Land
The location of the easement cannot be determined from record information.

DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1501
Order Number: NHSC-6614406 (tc)
Page Number: 5
First American Title
Document(s) declaring modifications thereof recorded May 24, 1956 in Book 3946, Page 255 of Official Records.

12. An easement for pipelines, ingress, egress and road and incidental purposes, recorded December 28, 1959 in Book 5018, Page 333 of Official Records.

In Favor of: Harold N. Bucy and Marie K. Bucy
Affects: Said Land
The location of the easement cannot be determined from record information.

13. An easement for ingress, egress and pipe line and incidental purposes, recorded March 10, 1966 in Book 6585, Page 377 of Official Records.

In Favor of: Harold N. Bucy and Marie K. Bucy
Affects: Said Land
The location of the easement cannot be determined from record information.

14. An easement in that certain Final Order of Condemnation for roadway purposes and incidental purposes, recorded June 20, 1972 in Book 7959, Page 98 of Official Records.

In Favor of: James R. Kostoff, et al
Affects: A portion of said land
The location of the easement cannot be determined from record information.

15. An easement in that certain Final Order of Condemnation for roadway purposes and incidental purposes, recorded July 10, 1972 in Book 7973, Page 496 of Official Records.

In Favor of: Thomas Tedesco, et al
Affects: A portion of said land
The location of the easement cannot be determined from record information.

16. An easement for public road purposes and incidental purposes, recorded September 17, 1973 in Book 8268, Page 1304 of Official Records.

In Favor of: Far West Recreation Centers, Inc., a Nevada corporation, as to an undivided one-half interest
Affects: Said Land
The effect of a document entitled "Corporation Quitclaim (Easement)", recorded October 30, 2012 as Instrument No. 2012-0448999 of Official Records.

DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1502
Order Number: NHSC-6614406 (tc)
Page Number: 6
First American Title

17. An easement for roadway purposes and incidental purposes, recorded September 17, 1973 in Book 8268, Page 1306 of Official Records.

In Favor of: International Fastener Research Corporation, a New York corporation, as to an undivided one-half interest
Affects: Said Land
The effect of a document entitled "Corporation Quitclaim (Easement)", recorded October 30, 2012 as Instrument No. 2012-0448999 of Official Records.

18. Abutter's rights of ingress and egress to or from the street, highway, or freeway abutting said land have been relinquished in the document recorded November 26, 1973 in Book 8314, Page 57 of Official Records.

19. A waiver of any claims for damages by reason of the location, construction, landscaping or maintenance of a contiguous freeway, highway or roadway, as contained in the document recorded November 26, 1973 in Book 8314, Page 57 of Official Records.

20. Abutter's rights of ingress and egress to or from the street, highway, or freeway abutting said land have been relinquished in the document recorded May 31, 1974 in Book 8442, Page 1636 of Official Records.

21. A waiver of any claims for damages by reason of the location, construction, landscaping or maintenance of a contiguous freeway, highway or roadway, as contained in the document recorded May 31, 1974 in Book 8442, Page 1636 of Official Records. "The above deed herein recite that such remaining property shall abut upon and have access to said Frontage Road which be connected to Citrus Avenue, (Lytle Creek Road)".

22. Abutter's rights of ingress and egress to or from street, highway, or freeway abutting said land have been relinquished in the document recorded January 20, 1975 in Book 8598, Page 20 of Official Records.

23. A waiver of any claims for damages by reason of the location, construction, landscaping or maintenance of a contiguous freeway, highway or roadway, as contained in the document recorded January 20, 1975 in Book 8598, Page 20 of Official Records.

24. An easement to construct roads, use existing roads and make such addition thereto and incidental purposes, recorded June 27, 1975 in Book 8709, Page 4 of Official Records.

In Favor of: James R. Kostoff, nominee and Patricia A. Kostoff, his wife Affects: As described therein
The location of the easement cannot be determined from record information.

25. The effect of a map purporting to show the land and other property, filed November 6, 1980 in Book 41, Pages 71-81 of Record of Surveys.

26. The Terms, Provisions and Easement(s) contained in the document entitled "Grant of Easement and Agreement" recorded March 11, 2004 as Instrument No. 2004-171203 of Official Records.

DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1503
Order Number: NHSC-6614406 (tc)
Page Number: 7
First American Title

27. The terms and provisions contained in the document entitled "Memorandum of Agreement and Lien" recorded June 16, 2005 as Instrument No. 2005-428902 of Official Records.

28. An easement for drainage and grading and incidental purposes as condemned by Final Order of Condemnation, recorded August 30, 2007 as Instrument No. 2007-0503773 of Official Records.

In Favor of: San Bernardino County Flood Control District Affects: As described therein

29. The effect of a map purporting to show the land and other property, filed August 3, 2016 in Book 0158, Pages 50 - 56 of Record of Surveys.

30. The terms and provisions contained in the document entitled "Monarch Hills Development Agreement" recorded March 27, 2019 as Instrument No. 2019-0093136 of Official Records.

31. A lien for unsecured property taxes, evidenced by a certificate recorded by the tax collector of San Bernardino County, recorded August 25, 2020, as Instrument No. 2020-0305938 of Official Records.

Debtor: American Superior Land LLC
Year & No.: 2019 & 635382
Amount: $19,646.57, and any other amounts due thereunder.

32. This is a pro-forma preliminary report. It does not reflect the present status of title and is not intended to be a commitment to insure.

There are requirements that must be met before a policy of title insurance can be issued. Such requirements may include the recordation of a map or maps and/or a deed or deeds. A commitment to insure setting forth those requirements should be obtained from the Company.

33. Rights of the public in and to that portion of the Land lying within any Road, Street, Alley or Highway.

34. Water rights, claims or title to water, whether or not shown by the Public Records.

35. Rights of parties in possession.

Prior to the issuance of any policy of title insurance, the Company will require:

DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1504
Order Number: NHSC-6614406 (tc)
Page Number: 8
First American Title

36. With respect to Roseville Investments, LLC, a Florida limited liability company:
a. A copy of its operating agreement and any amendments thereto; b. If it is a California limited liability company, that a certified copy of its articles of organization (LLC1) and any certificate of correction (LLC-11), certificate of amendment (LLC-2), or restatement of articles of organization (LLC-10) be recorded in the public records; c. If it is a foreign limited liability company, that a certified copy of its application for registration (LLC-5) be recorded in the public records;
d. With respect to any deed, deed of trust, lease, subordination agreement or other document or instrument executed by such limited liability company and presented for recordation by the Company or upon which the Company is asked to rely, that such document or instrument be executed in accordance with one of the following, as appropriate:
(i) If the limited liability company properly operates through officers appointed or elected pursuant to the terms of a written operating agreement, such document must be executed by at least two duly elected or appointed officers, as follows: the chairman of the board, the president or any vice president, and any secretary, assistant secretary, the chief financial officer or any assistant treasurer; (ii) If the limited liability company properly operates through a manager or managers identified in the articles of organization and/or duly elected pursuant to the terms of a written operating agreement, such document must be executed by at least two such managers or by one manager if the limited liability company properly operates with the existence of only one manager. e. Other requirements which the Company may impose following its review of the material required herein and other information which the Company may require

37. With respect to American Superior Land, LLC, a Delaware limited liability company:
a. A copy of its operating agreement and any amendments thereto; b. If it is a California limited liability company, that a certified copy of its articles of organization (LLC1) and any certificate of correction (LLC-11), certificate of amendment (LLC-2), or restatement of articles of organization (LLC-10) be recorded in the public records; c. If it is a foreign limited liability company, that a certified copy of its application for registration (LLC-5) be recorded in the public records;
d. With respect to any deed, deed of trust, lease, subordination agreement or other document or instrument executed by such limited liability company and presented for recordation by the Company or upon which the Company is asked to rely, that such document or instrument be executed in accordance with one of the following, as appropriate:
(i) If the limited liability company properly operates through officers appointed or elected pursuant to the terms of a written operating agreement, such document must be executed by at least two duly elected or appointed officers, as follows: the chairman of the board, the president or any vice president, and any secretary, assistant secretary, the chief financial officer or any assistant treasurer; (ii) If the limited liability company properly operates through a manager or managers identified in the articles of organization and/or duly elected pursuant to the terms of a written operating agreement, such document must be executed by at least two such managers or by one manager if the limited liability company properly operates with the existence of only one manager. e. Other requirements which the Company may impose following its review of the material required herein and other information which the Company may require DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1505
Order Number: NHSC-6614406 (tc)
Page Number: 9
First American Title

38. With respect to EPC Holdings 823, LLC, a Washington limited liability company:
a. A copy of its operating agreement and any amendments thereto; b. If it is a California limited liability company, that a certified copy of its articles of organization (LLC1) and any certificate of correction (LLC-11), certificate of amendment (LLC-2), or restatement of articles of organization (LLC-10) be recorded in the public records; c. If it is a foreign limited liability company, that a certified copy of its application for registration (LLC-5) be recorded in the public records;
d. With respect to any deed, deed of trust, lease, subordination agreement or other document or instrument executed by such limited liability company and presented for recordation by the Company or upon which the Company is asked to rely, that such document or instrument be executed in accordance with one of the following, as appropriate:
(i) If the limited liability company properly operates through officers appointed or elected pursuant to the terms of a written operating agreement, such document must be executed by at least two duly elected or appointed officers, as follows: the chairman of the board, the president or any vice president, and any secretary, assistant secretary, the chief financial officer or any assistant treasurer; (ii) If the limited liability company properly operates through a manager or managers identified in the articles of organization and/or duly elected pursuant to the terms of a written operating agreement, such document must be executed by at least two such managers or by one manager if the limited liability company properly operates with the existence of only one manager. e. Other requirements which the Company may impose following its review of the material required herein and other information which the Company may require

39. With respect to RMD Inland Investors, LLC, a Delaware limited liability company:
a. A copy of its operating agreement and any amendments thereto; b. If it is a California limited liability company, that a certified copy of its articles of organization (LLC1) and any certificate of correction (LLC-11), certificate of amendment (LLC-2), or restatement of articles of organization (LLC-10) be recorded in the public records; c. If it is a foreign limited liability company, that a certified copy of its application for registration (LLC-5) be recorded in the public records;
d. With respect to any deed, deed of trust, lease, subordination agreement or other document or instrument executed by such limited liability company and presented for recordation by the Company or upon which the Company is asked to rely, that such document or instrument be executed in accordance with one of the following, as appropriate:
(i) If the limited liability company properly operates through officers appointed or elected pursuant to the terms of a written operating agreement, such document must be executed by at least two duly elected or appointed officers, as follows: the chairman of the board, the president or any vice president, and any secretary, assistant secretary, the chief financial officer or any assistant treasurer; (ii) If the limited liability company properly operates through a manager or managers identified in the articles of organization and/or duly elected pursuant to the terms of a written operating agreement, such document must be executed by at least two such managers or by one manager if the limited liability company properly operates with the existence of only one manager. e. Other requirements which the Company may impose following its review of the material required herein and other information which the Company may require DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1506
Order Number: NHSC-6614406 (tc)
Page Number: 10
First American Title

40. With respect to EPC Holdings 944, LLC, a Washington limited liability company:
a. A copy of its operating agreement and any amendments thereto; b. If it is a California limited liability company, that a certified copy of its articles of organization (LLC1) and any certificate of correction (LLC-11), certificate of amendment (LLC-2), or restatement of articles of organization (LLC-10) be recorded in the public records; c. If it is a foreign limited liability company, that a certified copy of its application for registration (LLC-5) be recorded in the public records;
d. With respect to any deed, deed of trust, lease, subordination agreement or other document or instrument executed by such limited liability company and presented for recordation by the Company or upon which the Company is asked to rely, that such document or instrument be executed in accordance with one of the following, as appropriate:
(i) If the limited liability company properly operates through officers appointed or elected pursuant to the terms of a written operating agreement, such document must be executed by at least two duly elected or appointed officers, as follows: the chairman of the board, the president or any vice president, and any secretary, assistant secretary, the chief financial officer or any assistant treasurer; (ii) If the limited liability company properly operates through a manager or managers identified in the articles of organization and/or duly elected pursuant to the terms of a written operating agreement, such document must be executed by at least two such managers or by one manager if the limited liability company properly operates with the existence of only one manager. e. Other requirements which the Company may impose following its review of the material required herein and other information which the Company may require DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1507
Order Number: NHSC-6614406 (tc)
Page Number: 11
First American Title

INFORMATIONAL NOTES
Note: The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than the certain dollar amount set forth in any applicable arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. If you desire to review the terms of the policy, including any arbitration clause that may be included, contact the office that issued this Commitment or Report to obtain a sample of the policy jacket for the policy that is to be issued in connection with your transaction.

1. General and special taxes and assessments for the fiscal year 2020-2021.

First Installment: $24,369.63, PAID
Penalty: $0.00
Second Installment: $24,369.62, PAID
Penalty: $0.00
Tax Rate Area: 010243
A. P. No.: 0226-075-17-0-000

2. General and special taxes and assessments for the fiscal year 2020-2021.

First Installment: $337.31, PAID
Penalty: $0.00
Second Installment: $337.29, PAID
Penalty: $0.00
Tax Rate Area: 010243
A. P. No.: 0226-075-27-0-000

3. General and special taxes and assessments for the fiscal year 2020-2021.

First Installment: $7,040.64, PAID
Penalty: $0.00
Second Installment: $7,040.61, PAID
Penalty: $0.00
Tax Rate Area: 010243
A. P. No.: 0226-075-28-0-000

4. General and special taxes and assessments for the fiscal year 2020-2021.

First Installment: $9,414.98, PAID
Penalty: $0.00
Second Installment: $9,414.94, PAID
Penalty: $0.00
Tax Rate Area: 010243
A. P. No.: 0226-075-29-0-000

5. General and special taxes and assessments for the fiscal year 2020-2021.

First Installment: $3,877.13, PAID
Penalty: $0.00
Second Installment: $3,877.10, PAID
Penalty: $0.00
DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1508
Order Number: NHSC-6614406 (tc)
Page Number: 12
First American Title
Tax Rate Area: 010243
A. P. No.: 0226-075-39-0-000

6. General and special taxes and assessments for the fiscal year 2020-2021.

First Installment: $30,184.21, PAID
Penalty: $0.00
Second Installment: $30,184.21, PAID
Penalty: $0.00
Tax Rate Area: 010243
A. P. No.: 0226-075-18-0-000

7. General and special taxes and assessments for the fiscal year 2020-2021.

First Installment: $1,115.82, PAID
Penalty: $0.00
Second Installment: $1,115.82, PAID
Penalty: $0.00
Tax Rate Area: 010243
A. P. No.: 0226-075-26-0-000

8. General and special taxes and assessments for the fiscal year 2020-2021.

First Installment: $48,940.15, PAID
Penalty: $0.00
Second Installment: $48,940.13, PAID
Penalty: $0.00
Tax Rate Area: 074057
A. P. No.: 0226-075-02-0-000

9. General and special taxes and assessments for the fiscal year 2020-2021.

First Installment: $4,124.77, PAID
Penalty: $0.00
Second Installment: $4,124.75, PAID
Penalty: $0.00
Tax Rate Area: 074026
A. P. No.: 0226-075-04-0-000

10. General and special taxes and assessments for the fiscal year 2020-2021.

First Installment: $1,939.19, PAID
Penalty: $0.00
Second Installment: $1,939.17, PAID
Penalty: $0.00
Tax Rate Area: 074022
A. P. No.: 0226-075-05-0-000

11. General and special taxes and assessments for the fiscal year 2020-2021.

DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1509
Order Number: NHSC-6614406 (tc)
Page Number: 13
First American Title
First Installment: $21,046.28, PAID
Penalty: $0.00
Second Installment: $21,046.25, PAID
Penalty: $0.00
Tax Rate Area: 010243
A. P. No.: 0226-075-10-0-000

12. General and special taxes and assessments for the fiscal year 2020-2021.

First Installment: $19,385.03, PAID
Penalty: $0.00
Second Installment: $19,384.99, PAID
Penalty: $0.00
Tax Rate Area: 074056
A. P. No.: 0226-075-11-0-000

13. General and special taxes and assessments for the fiscal year 2020-2021.

First Installment: $3,600.50, PAID
Penalty: $0.00
Second Installment: $3,600.47, PAID
Penalty: $0.00
Tax Rate Area: 010243
A. P. No.: 0226-075-15-0-000

14. General and special taxes and assessments for the fiscal year 2020-2021.

First Installment: $14,401.31, PAID
Penalty: $0.00
Second Installment: $14,401.28, PAID
Penalty: $0.00
Tax Rate Area: 010243
A. P. No.: 0226-075-16-0-000

15. General and special taxes and assessments for the fiscal year 2020-2021.

First Installment: $556.12, PAID
Penalty: $0.00
Second Installment: $556.10, PAID
Penalty: $0.00
Tax Rate Area: 010243
A. P. No.: 0226-075-30-0-000

16. General and special taxes and assessments for the fiscal year 2020-2021.

First Installment: $1,661.91, PAID
Penalty: $0.00
Second Installment: $1,661.90, PAID
Penalty: $0.00
Tax Rate Area: 010243
A. P. No.: 0226-075-40-0-000
DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1510
Order Number: NHSC-6614406 (tc)
Page Number: 14
First American Title

17. General and special taxes and assessments for the fiscal year 2020-2021.

First Installment: $1,107.78, PAID
Penalty: $0.00
Second Installment: $1,107.77, PAID
Penalty: $0.00
Tax Rate Area: 010243
A. P. No.: 0226-075-41-0-000

18. The property covered by this report is vacant land.

19. According to the public records, there has been no conveyance of the land within a period of twentyfour months prior to the date of this report, except as follows:

None

20. We find no outstanding voluntary liens of record affecting subject property. Disclosure should be made concerning the existence of any unrecorded lien or other indebtedness which could give rise to any possible security interest in the subject property.

The map attached, if any, may or may not be a survey of the land depicted hereon. First American expressly disclaims any liability for loss or damage which may result from reliance on this map except to the extent coverage for such loss or damage is expressly provided by the terms and provisions of the title insurance policy, if any, to which this map is attached.

DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1511
Order Number: NHSC-6614406 (tc)
Page Number: 15
First American Title

LEGAL DESCRIPTION
Real property in the City of Fontana, County of San Bernardino, State of California, described as follows:

THOSE PORTIONS OF LAND LYING WITHIN SECTION 13, TOWNSHIP 1 NORTH, RANGE 6 WEST, SAN

BERNARDINO MERIDIAN, IN THE CITY OF FONTANA, COUNTY OF SAN BERNARDINO, STATE OF

CALIFORNIA, ACCORDING TO THE OFFICIAL GOVERNMENT TOWNSHIP MAP THEREOF, APPROVED BY THE SURVEYOR GENERAL, DATED NOVEMBER 13, 1885, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

PARCEL "A"
COMMENCING AT THE SOUTHEAST CORNER OF SAID SECTION 13; THENCE, ALONG THE EAST LINE OF SAID SECTION 13, NORTH 00°35'58" EAST, 2,761.05 FEET TO THE TRUE POINT OF BEGINNING; SAID

POINT BEING ON A NON-TANGENT CURVE, CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 1,354.00 FEET, A RADIAL LINE TO SAID BEGINNING OF CURVE BEARS SOUTH 46°21'52" EAST;

THENCE LEAVING SAID EAST LINE AND SOUTHWESTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 07°00'40", A DISTANCE OF 165.68 FEET;
THENCE NORTH 06°19'00" EAST, 102.98 FEET;
THENCE NORTH 83°41'00" WEST, 64.84 FEET;
THENCE SOUTH 19°20'13" WEST, 24.98 FEET;
THENCE SOUTH 10°02'56" WEST, 72.77 FEET;
THENCE SOUTH 23°17'49" EAST, 30.77 FEET;
THENCE SOUTH 06°19'00" WEST, 37.04 FEET TO THE BEGINNING OF A NON-TANGENT CURVE, CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 1,354.00 FEET, A RADIAL LINE TO SAID BEGINNING OF CURVE BEARS SOUTH 35°49'43" EAST;
THENCE SOUTHWESTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 05°09'47", A DISTANCE OF 122.01 FEET;
THENCE SOUTH 30°39'56" EAST, 46.00 FEET TO A POINT HEREINAFTER REFERRED TO AS POINT "A"; THENCE CONTINUING SOUTH 30°39'56" EAST, 46.00 FEET;
THENCE SOUTH 32°15'03" EAST, 16.95 FEET TO THE BEGINNING OF A NON-TANGENT CURVE, CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 465.00 FEET, A RADIAL LINE TO SAID BEGINNING OF CURVE BEARS SOUTH 63°39'22" EAST;
THENCE SOUTHWESTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 04°32'36", A DISTANCE OF 36.87 FEET;
THENCE SOUTH 59°06'46" EAST, 26.69 FEET TO THE TO THE BEGINNING OF A NON-TANGENT CURVE, CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 1,757.38 FEET, A RADIAL LINE TO SAID BEGINNING OF CURVE BEARS SOUTH 56°00'45" EAST SAID CURVE ALSO BEING THE NORTHWESTERLY DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1512
Order Number: NHSC-6614406 (tc)
Page Number: 16
First American Title
LINE OF THE LAND DESCRIBED IN THE GRANT DEED RECORDED NOVEMBER 26, 1973 IN BOOK 8314, PAGE 57, OFFICIAL RECORDS OF SAID COUNTY;
THENCE ALONG SAID NORTHWESTERLY LINE THE FOLLOWING COURSES:

THENCE NORTHEASTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 02°15'25", A DISTANCE OF 69.23 FEET;
THENCE NORTH 31°40'39" EAST, 69.26 FEET;
THENCE NORTH 31°40'53" EAST, 293.65 FEET TO SAID EAST LINE OF SECTION 13; THENCE, ALONG SAID EAST LINE, NORTH 00°35'58" EAST, 2.83 FEET TO THE POINT OF BEGINNING.

THE ABOVE DESCRIBED PARCEL CONTAINS 33,420 SQUARE FEET, MORE OR LESS.

PARCEL "B"
BEING A STRIP OF LAND, 92.00 FEET WIDE, THE CENTERLINE OF WHICH IS DESCRIBED AS FOLLOWS:

BEGINNING AT HEREINBEFORE REFERENCED POINT "A"; SAID POINT BEING AT THE BEGINNING OF A NON-TANGENT CURVE, CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 1,400.00 FEET, A RADIAL LINE TO SAID BEGINNING OF CURVE BEARS SOUTH 30°39'56" EAST; THENCE SOUTHWESTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 15°58'30", A DISTANCE OF 390.34 FEET;
THENCE SOUTH 75°18'34" WEST, 88.81 FEET TO A POINT HEREINAFTER REFERRED TO AS POINT "B"; THENCE SOUTH 75°18'34" WEST, 4.23 FEET TO A POINT HEREINAFTER REFERRED TO AS POINT "C"; THENCE SOUTH 75°18'34" WEST, 397.13 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 1,500.00 FEET;
THENCE SOUTHWESTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 20°31'20", A DISTANCE OF 537.27 FEET;
THENCE SOUTH 54°47'14" WEST, 325.65 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 2,000.00 FEET;
THENCE SOUTHWESTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 11°31'10", A DISTANCE OF 402.10 FEET;
THENCE SOUTH 66°18'24" WEST, 222.62 FEET TO A POINT HEREINAFTER REFERRED TO AS POINT "D"; THENCE SOUTH 66°18'24" WEST, 1.36 FEET TO A POINT HEREINAFTER REFERRED TO AS POINT "E"; THENCE SOUTH 66°18'24" WEST, 731.55 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE NORTHERLY AND HAVING A RADIUS OF 2,000.00 FEET;
THENCE WESTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 02°29'05", A DISTANCE OF

86.73 FEET;
THENCE SOUTH 68°47'29" WEST, 151.64 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1513
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SOUTHERLY AND HAVING A RADIUS OF 1,050.00 FEET;
THENCE WESTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 00°53'46", A DISTANCE OF

16.42 FEET TO THE WESTERLY LINE OF THE EAST HALF OF THE EAST HALF OF THE SOUTHWEST QUARTER OF SAID SECTION 13.

THE SIDELINES OF SAID STRIP SHALL BE PRONGED OR SHORTENED AS TO TERMINATE IN SAID WESTERLY LINE.

THE ABOVE DESCRIBED STRIP OF LAND CONTAINS 308,734 SQUARE FEET, MORE OR LESS.

PARCEL "C"
BEGINNING AT HEREINBEFORE REFERENCED POINT "B";
THENCE SOUTH 14°41'26" EAST, 46.00 FEET TO A POINT ON THE SOUTHERLY LINE OF SAID PARCEL "B" AND THE TRUE POINT OF BEGINNING;
THENCE, LEAVING SAID SOUTHERLY LINE, SOUTH 28°53'08" WEST, 37.27 FEET; THENCE SOUTH 75°18'34" WEST, 77.07 FEET;
THENCE NORTH 58°16'01" WEST, 37.27 FEET TO SAID SOUTHERLY LINE; THENCE, ALONG SAID SOUTHERLY LINE, NORTH 75°18'34" EAST, 128.45 FEET TO THE TRUE POINT OF BEGINNING.

THE ABOVE DESCRIBED PARCEL OF LAND CONTAINS 2,775 SQUARE FEET, MORE OR LESS.

PARCEL "D"
BEGINNING AT HEREINBEFORE REFERENCED POINT "C";
THENCE NORTH 14°41'26" WEST, 46.00 FEET TO A POINT ON THE NORTHERLY LINE OF SAID PARCEL "B" AND THE TRUE POINT OF BEGINNING;
THENCE, LEAVING SAID NORTHERLY LINE, NORTH 63°11'39" WEST, 34.71 FEET; THENCE SOUTH 75°18'34" WEST, 63.00 FEET;
THENCE SOUTH 33°48'46" WEST, 34.71 FEET TO SAID NORTHERLY LINE; THENCE, ALONG SAID NORTHERLY LINE, NORTH 75°18'34" EAST, 115.00 FEET TO THE TRUE POINT OF BEGINNING.

THE ABOVE DESCRIBED STRIP OF LAND CONTAINS 2,047 SQUARE FEET, MORE OR LESS.

PARCEL "E"
BEGINNING AT HEREINBEFORE REFERENCED POINT "D";
THENCE SOUTH 23°41'36" EAST, 46.00 FEET TO A POINT ON THE SOUTHEASTERLY LINE OF SAID PARCEL "B" AND THE TRUE POINT OF BEGINNING;
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THENCE, LEAVING SAID SOUTHEASTERLY LINE, SOUTH 19°52'58" WEST, 37.27 FEET; THENCE SOUTH 57°27'24" WEST, 9.00 FEET;
THENCE SOUTH 66°18'24" WEST, 59.29 FEET;
THENCE SOUTH 75°09'23" WEST, 9.00 FEET;
THENCE NORTH 67°16'11" WEST, 37.27 FEET TO SAID SOUTHEASTERLY LINE; THENCE, ALONG SAID SOUTHEASTERLY LINE, NORTH 66°18'24" EAST, 128.45 FEET TO THE TRUE POINT OF BEGINNING;
THE ABOVE DESCRIBED STRIP OF LAND CONTAINS 2,869 SQUARE FEET, MORE OR LESS.

PARCEL "F"
BEGINNING AT HEREINBEFORE REFERENCED POINT "E";
THENCE NORTH 23°41'36" WEST, 46.00 FEET TO A POINT ON THE NORTHWESTERLY LINE OF SAID PARCEL "B" AND THE TRUE POINT OF BEGINNING;
THENCE NORTH 64°02'42" WEST, 38.84 FEET;
THENCE SOUTH 81°00'42" WEST, 9.00 FEET;
THENCE SOUTH 66°18'24" WEST, 58.03 FEET;
THENCE SOUTH 51°36'05" WEST, 9.00 FEET;
THENCE SOUTH 16°39'29" WEST, 38.84 FEET TO SAID NORTHWESTERLY LINE; THENCE, ALONG SAID NORTHWESTERLY LINE, NORTH 66°18'24" EAST, 125.74 FEET TO THE TRUE POINT OF BEGINNING;
NOTE: THE ABOVE DESCRIPTION IS FOR IDENTIFICATION PURPOSES ONLY AND HAS BEEN PROVIDED FOR THE ACCOMMODATION OF THIS REPORT. SAID DESCRIPTION IS NOT INSURABLE PURSUANT TO

THE SUBDIVISION MAP ACT OF THE STATE OF CALIFORNIA AND SHOULD NOT BE RELIED UPON TO CONVEY OR ENCUMBER SAID LAND.

APN's: PORTION OF 0226-075-17-0-000, 0226-075-27-0-000, 0226-075-28-0-000, PORTION OF 0226- 075-29-0-000, 0226-075-39-0-000,PORTION OF 0226-075-18-0-000, 0226-075-26-0-000, 0226-075-02-0- 000, 0226-075-04-0-000, 0226-075-05-0-000, 0226-075-10-0-000, 0226-075-11-0-000, PORTION OF 0226-075-15-0-000, PORTION OF 0226-075-16-0-000, 0226-075-30-0-000, 0226-075-40-0-000, PORTION OF 0226-075-41-0-000 and PORTION OF 0226-075-36-0-000 DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1515
Order Number: NHSC-6614406 (tc)
Page Number: 19
First American Title
DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1516
Order Number: NHSC-6614406 (tc)
Page Number: 20
First American Title
NOTICE
Section 12413.1 of the California Insurance Code, effective January 1, 1990, requires that any title insurance company, underwritten title company, or controlled escrow company handling funds in an escrow or subescrow capacity, wait a specified number of days after depositing funds, before recording any documents in connection with the transaction or disbursing funds. This statute allows for funds deposited by wire transfer to be disbursed the same day as deposit. In the case of cashier's checks or certified checks, funds may be disbursed the next day after deposit. In order to avoid unnecessary delays of three to seven days, or more, please use wire transfer, cashier's checks, or certified checks whenever possible.

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Page Number: 21
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EXHIBIT A

LIST OF PRINTED EXCEPTIONS AND EXCLUSIONS (BY POLICY TYPE) CLTA STANDARD COVERAGE POLICY – 1990

EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of:

1. (a) Any law, ordinance or governmental regulation (including but not limited to building or zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien, or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy.
(b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy.

2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge.

3. Defects, liens, encumbrances, adverse claims or other matters:
(a) whether or not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the insured claimant;
(b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy;
(c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or for the estate or interest insured by this policy.

4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with the applicable doing business laws of the state in which the land is situated.

5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law.

6. Any claim, which arises out of the transaction vesting in the insured the estate of interest insured by this policy or the transaction creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws.

EXCEPTIONS FROM COVERAGE - SCHEDULE B, PART I
This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of:

1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records.

Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public, records.

2. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof.

3. Easements, liens or encumbrances, or claims thereof, not shown by the public records.

4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records.

5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records.

6. Any lien or right to a lien for services, labor or material unless such lien is shown by the public records at Date of Policy.

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CLTA/ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE (12-02-13)

EXCLUSIONS
In addition to the Exceptions in Schedule B, You are not insured against loss, costs, attorneys' fees, and expenses resulting from:

1. Governmental police power, and the existence or violation of those portions of any law or government regulation concerning:
a. building;
b. zoning;
c. land use;
d. improvements on the Land;
e. land division; and
f. environmental protection.

This Exclusion does not limit the coverage described in Covered Risk 8.a., 14, 15, 16, 18, 19, 20, 23 or 27.

2. The failure of Your existing structures, or any part of them, to be constructed in accordance with applicable building codes. This Exclusion does not limit the coverage described in Covered Risk 14 or 15.

3. The right to take the Land by condemning it. This Exclusion does not limit the coverage described in Covered Risk 17.

4. Risks:
a. that are created, allowed, or agreed to by You, whether or not they are recorded in the Public Records; b. that are Known to You at the Policy Date, but not to Us, unless they are recorded in the Public Records at the Policy Date; c. that result in no loss to You; or
d. that first occur after the Policy Date - this does not limit the coverage described in Covered Risk 7, 8.e., 25, 26, 27 or 28.

5. Failure to pay value for Your Title.

6. Lack of a right:
a. to any land outside the area specifically described and referred to in paragraph 3 of Schedule A; and b. in streets, alleys, or waterways that touch the Land.

This Exclusion does not limit the coverage described in Covered Risk 11 or 21.

7. The transfer of the Title to You is invalid as a preferential transfer or as a fraudulent transfer or conveyance under federal bankruptcy, state insolvency, or similar creditors' rights laws.

8. Contamination, explosion, fire, flooding, vibration, fracturing, earthquake, or subsidence.

9. Negligence by a person or an Entity exercising a right to extract or develop minerals, water, or any other substances.

LIMITATIONS ON COVERED RISKS
Your insurance for the following Covered Risks is limited on the Owner's Coverage Statement as follows:

For Covered Risk 16, 18, 19, and 21 Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A.

The deductible amounts and maximum dollar limits shown on Schedule A are as follows:

Your Deductible Amount Our Maximum Dollar Limit of Liability Covered Risk 16: 1% of Policy Amount Shown in Schedule A or $2,500 $10,000 (whichever is less)
Covered Risk 18: 1% of Policy Amount Shown in Schedule A or $5,000 $25,000 (whichever is less)
Covered Risk 19: 1% of Policy Amount Shown in Schedule A or $5,000 $25,000 (whichever is less)
Covered Risk 21: 1% of Policy Amount Shown in Schedule A or $2,500 $5,000 (whichever is less)

2006 ALTA LOAN POLICY (06-17-06)

EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of:

1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to
(i) the occupancy, use, or enjoyment of the Land;
(ii) the character, dimensions, or location of any improvement erected on the Land; DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1519
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(iii) the subdivision of land; or
(iv) environmental protection;
or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5.
(b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6.

2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8.

3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 13, or 14); or
(e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage.

4. Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing-business laws of the state where the Land is situated.

5. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury or any consumer credit protection or truth-in-lending law.

6. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction creating the lien of the Insured Mortgage, is
(a) a fraudulent conveyance or fraudulent transfer, or
(b) a preferential transfer for any reason not stated in Covered Risk 13(b) of this policy.

7. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the Insured Mortgage in the Public Records. This Exclusion does not modify or limit the coverage provided under Covered Risk 11(b).

The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage:

EXCEPTIONS FROM COVERAGE
[Except as provided in Schedule B - Part II,[ t[or T]his policy does not insure against loss or damage, and the Company will not pay costs, attorneys' fees or expenses, that arise by reason of:
[PART I
[The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage:

1. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records.

2. Any facts, rights, interests, or claims that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land.

3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records.

4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records.

5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records.

6. Any lien or right to a lien for services, labor or material unless such lien is shown by the Public Records at Date of Policy.

PART II
In addition to the matters set forth in Part I of this Schedule, the Title is subject to the following matters, and the Company insures against loss or damage sustained in the event that they are not subordinate to the lien of the Insured Mortgage:]

2006 ALTA OWNER'S POLICY (06-17-06)

EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of:

1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to
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(i) the occupancy, use, or enjoyment of the Land;
(ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or
(iv) environmental protection;
or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5.
(b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6.

2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8.

3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 9 or 10); or
(e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title.

4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction vesting the Title as shown in Schedule A, is
(a) a fraudulent conveyance or fraudulent transfer, or
(b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy.

5. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A.

The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage:

EXCEPTIONS FROM COVERAGE
This policy does not insure against loss or damage, and the Company will not pay costs, attorneys' fees or expenses, that arise by reason of:
[The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage:

1. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records.

2. Any facts, rights, interests, or claims that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land.

3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records.

4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records.

5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records.

6. Any lien or right to a lien for services, labor or material unless such lien is shown by the Public Records at Date of Policy.

7. [Variable exceptions such as taxes, easements, CC&R's, etc. shown here.]

ALTA EXPANDED COVERAGE RESIDENTIAL LOAN POLICY (07-26-10)

EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of:

1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to
(i) the occupancy, use, or enjoyment of the Land;
(ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or
(iv) environmental protection;
or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16. (b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1521
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14 or 16.

2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8.

3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 16, 17, 18, 19, 20, 21, 22, 23, 24, 27 or 28); or
(e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage.

4. Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing-business laws of the state where the Land is situated.

5. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury or any consumer credit protection or truth-in-lending law. This Exclusion does not modify or limit the coverage provided in Covered Risk 26.

6. Any claim of invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as to Advances or modifications made after the Insured has Knowledge that the vestee shown in Schedule A is no longer the owner of the estate or interest covered by this policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11.

7. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching subsequent to Date of Policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11(b) or 25.

8. The failure of the residential structure, or any portion of it, to have been constructed before, on or after Date of Policy in accordance with applicable building codes. This Exclusion does not modify or limit the coverage provided in Covered Risk 5 or 6.

9. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction creating the lien of the Insured Mortgage, is
(a) a fraudulent conveyance or fraudulent transfer, or
(b) a preferential transfer for any reason not stated in Covered Risk 27(b) of this policy.

10. Contamination, explosion, fire, flooding, vibration, fracturing, earthquake, or subsidence.

11. Negligence by a person or an Entity exercising a right to extract or develop minerals, water, or any other substances.

DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1522
Privacy Notice
Effective: October 1, 2019
Notice Last Updated: January 1, 2021
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We may change this Privacy Notice from time to time. Any and all changes to this Privacy Notice will be reflected on this page, and where appropriate provided in person or by another electronic method. YOUR CONTINUED USE, ACCESS,

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NOTICE HAS BEEN PROVIDED TO YOU WILL REPRESENT THAT YOU HAVE READ AND UNDERSTOOD THIS PRIVACY NOTICE.

Contact Us [email protected] or toll free at 1-866-718-0097. © 2020 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE:FAF Form 10-PRIVACY20 (12-18-20) Page 1 of 2 Privacy Notice (2020 First American Financial Corporation) English
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For California Residents
If you are a California resident, you may have certain rights under California law, including but not limited to the California Consumer Privacy Act of 2018 (“CCPA”). All phrases used in this section shall have the same meaning as those phrases are used under California law, including the CCPA.

Right to Know. You have a right to request that we disclose the following information to you: (1) the categories of personal information we have collected about or from you; (2) the categories of sources from which the personal information was collected; (3) the business or commercial purpose for such collection and/or disclosure; (4) the categories of third parties with whom we have shared your personal information; and (5) the specific pieces of your personal information we have collected. To submit a verified request for this information, go to our online privacy policy at www.firstam.com/privacy-policy to submit your request or call toll-free at 1-866-718-0097. You may also designate an authorized agent to submit a request on your behalf by going to our online privacy policy at www.firstam.com/privacy-policy to submit your request or by calling toll-free at 1-866-718-0097.

Right of Deletion. You also have a right to request that we delete the personal information we have collected from and about you. This right is subject to certain exceptions available under the CCPA and other applicable law. To submit a verified request for deletion, go to our online privacy policy at www.firstam.com/privacy-policy to submit your request or call toll-free at 1-866-718-0097. You may also designate an authorized agent to submit a request on your behalf by going to our online privacy policy at www.firstam.com/privacy-policy to submit your request or by calling toll-free at 1-866-718- 0097.

Verification Process. For either a request to know or delete, we will verify your identity before responding to your request. To verify your identity, we will generally match the identifying information provided in your request with the information we have on file about you. Depending on the sensitivity of the information requested, we may also utilize more stringent verification methods to verify your identity, including but not limited to requesting additional information from you and/or requiring you to sign a declaration under penalty of perjury.

Notice of Sale. We do not sell California resident information, nor have we sold California resident information in the past 12 months. We have no actual knowledge of selling the information of minors under the age of 16.

Right of Non-Discrimination. You have a right to exercise your rights under California law, including under the CCPA, without suffering discrimination. Accordingly, First American will not discriminate against you in any way if you choose to exercise your rights under the CCPA.

Notice of Collection. To learn more about the categories of personal information we have collected about California residents over the last 12 months, please see “What Information Do We Collect About You” in https://www.firstam.com/privacy-policy. To learn about the sources from which we have collected that information, the business and commercial purpose for its collection, and the categories of third parties with whom we have shared that information, please see “How Do We Collect Your Information”, “How Do We Use Your Information”, and “How Do We Share Your Information” in https://www.firstam.com/privacy-policy.

Notice of Sale. We have not sold the personal information of California residents in the past 12 months.

Notice of Disclosure. To learn more about the categories of personal information we may have disclosed about California residents in the past 12 months, please see “How Do We Use Your Information” and “How Do We Share Your Information” in https://www.firstam.com/privacy-policy. © 2020 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE:FAF Form 10-PRIVACY20 (12-18-20) Page 2 of 2 Privacy Notice (2020 First American Financial Corporation) English
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16498.00170\34034614.3
EXHIBIT E-1

EXHIBIT E

LAND OWNER PROPERTY PRELIMINARY TITLE REPORT
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CLTA Preliminary Report Form Order Number: NHSC-6614406 (tc) (Rev. 11/06) Page Number: 1
First American Title
First American Title Company
1250 Corona Pointe Court, Ste 200
Corona, CA 92879
Derek Barbour
Richland Communities, Inc.
3161 Michelson Drive, Suite 425
Irvine, CA 92612
Customer Reference: Proposed Lytle Creek Road
Order Number: NHSC-6614406 (tc)
Title Officer: Terrell Crutchfield
Phone: (951)256-5879
Fax No.: (866)558-2872
E-Mail: [email protected]
Buyer:
.

PRELIMINARY REPORT
In response to the above referenced application for a policy of title insurance, this company hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof, a Policy or Policies of Title Insurance describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an Exception below or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations of said Policy forms.

The printed Exceptions and Exclusions from the coverage and Limitations on Covered Risks of said policy or policies are set forth in Exhibit A attached. The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than that set forth in the arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. Limitations on Covered Risks applicable to the CLTA and ALTA Homeowner's Policies of Title Insurance which establish a Deductible Amount and a Maximum Dollar Limit of Liability for certain coverages are also set forth in Exhibit A. Copies of the policy forms should be read. They are available from the office which issued this report.

Please read the exceptions shown or referred to below and the exceptions and exclusions set forth in Exhibit A of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered.

It is important to note that this preliminary report is not a written representation as to the condition of title and may not list all liens, defects, and encumbrances affecting title to the land.

Please be advised that any provision contained in this document, or in a document that is attached, linked or referenced in this document, that under applicable law illegally discriminates against a class of individuals based upon personal characteristics such as race, color, religion, sex, sexual orientation, gender identity, familial status, disability, national origin, or any other legally protected class, is illegal and unenforceable by law.

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Order Number: NHSC-6614406 (tc)
Page Number: 2
First American Title
This report (and any supplements or amendments hereto) is issued solely for the purpose of facilitating the issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance, a Binder or Commitment should be requested.

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Order Number: NHSC-6614406 (tc)
Page Number: 3
First American Title
Dated as of June 08, 2021 at 7:30 A.M.

The form of Policy of title insurance contemplated by this report is:

To Be Determined
A specific request should be made if another form or additional coverage is desired.

Title to said estate or interest at the date hereof is vested in:

ROSEVILLE INVESTMENTS, LLC, A FLORIDA LIMITED LIABILITY COMPANY, AS TO AN UNDIVIDED

42.57% INTEREST AND AMERICAN SUPERIOR LAND, LLC, A DELAWARE LIMITED LIABILITY COMPANY, AS TO AN UNDIVIDED 27.05% INTEREST, AND EPC HOLDINGS 823, LLC, A WASHINGTON LIMITED LIABILITY COMPANY, AS TO AN UNDIVIDED 13.65% INTEREST, AND RMD INLAND INVESTORS, LLC, A DELAWARE LIMITED LIABILITY COMPANY, AS TO AN UNDIVIDED 4.01% INTEREST, AND EPC HOLDINGS 944, LLC, A WASHINGTON LIMITED LIABILITY COMPANY, AS TO AN UNDIVIDED 12.72%

INTEREST, ALL AS TENANTS IN COMMON, AS TO A PORTION OF SAID LAND AND

SAN BERNARDINO COUNTY FLOOD CONTROL DISTRICT, A BODY CORPORATE AND POLITIC, AS TO A

PORTION OF SAID LAND
The estate or interest in the land hereinafter described or referred to covered by this Report is:

A fee.

The Land referred to herein is described as follows:
(See attached Legal Description)
At the date hereof exceptions to coverage in addition to the printed Exceptions and Exclusions in said policy form would be as follows:

1. General and special taxes and assessments for the fiscal year 2021-2022, a lien not yet due or payable.

2. General and special taxes and assessments for the fiscal year 2020-2021 are exempt. (Affects APN 0226-075-36-0-000)

3. The lien of supplemental taxes, if any, assessed pursuant to Chapter 3.5 commencing with Section 75 of the California Revenue and Taxation Code.

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Order Number: NHSC-6614406 (tc)
Page Number: 4
First American Title

4. Any adverse interest or claim of right or title based upon the assertion that the boundaries of the Southwest 1/4 of Section 13, Township 1 North, Range 6 West, San Bernardino Base and Meridian, according to the official plat of said land filed in the District Land Office June 2, 1874 are not identical with the corresponding boundaries of said 1/4 section, according to the official plat of said land filed in the District Land Office April 2, 1894.

5. An easement for utilities and incidental purposes in the document recorded February 4, 1887 in Book "F", Page 548 of Agreements.

The location of the easement cannot be determined from record information.

6. An easement for water pipes and incidental purposes, recorded May 19, 1888 in Book 77 of Deeds,

Page 179 ends

In Favor of: J.N. Patton
Affects: As described therein
The location of the easement cannot be determined from record information.

7. Rights, rights of way, reservations and exceptions in the patent recorded July 10, 1899 in Book "F" of Patents, Page 249.

The location of the easement cannot be determined from record information.

8. An easement for pipe line and conduit and incidental purposes, recorded August 24, 1912 in Book 512 of Deeds, Page 322.

In Favor of: Jennie E. Biggin
Affects: Said Land
The location of the easement cannot be determined from record information.

9. An easement for water and pipe line and incidental purposes, recorded December 19, 1914 in Book 561 of Deeds, Page 136.

In Favor of: I.I. Bennett and Mabel Bennett
Affects: Said Land
The location of the easement cannot be determined from record information.

10. An easement for public utilities and incidental purposes, recorded November 28, 1951 in Book 2859,

Page 235 ends

In Favor of: Southern California Edison Company Ltd., a corporation Affects: As described therein

11. An easement for road and pipelines and incidental purposes, recorded December 2, 1953 in Book 3287, Page 151 of Official Records.

In Favor of: John C. Mahler and Grace Mahler
Affects: Said Land
The location of the easement cannot be determined from record information.

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Order Number: NHSC-6614406 (tc)
Page Number: 5
First American Title
Document(s) declaring modifications thereof recorded May 24, 1956 in Book 3946, Page 255 of Official Records.

12. An easement for pipelines, ingress, egress and road and incidental purposes, recorded December 28, 1959 in Book 5018, Page 333 of Official Records.

In Favor of: Harold N. Bucy and Marie K. Bucy
Affects: Said Land
The location of the easement cannot be determined from record information.

13. An easement for ingress, egress and pipe line and incidental purposes, recorded March 10, 1966 in Book 6585, Page 377 of Official Records.

In Favor of: Harold N. Bucy and Marie K. Bucy
Affects: Said Land
The location of the easement cannot be determined from record information.

14. An easement in that certain Final Order of Condemnation for roadway purposes and incidental purposes, recorded June 20, 1972 in Book 7959, Page 98 of Official Records.

In Favor of: James R. Kostoff, et al
Affects: A portion of said land
The location of the easement cannot be determined from record information.

15. An easement in that certain Final Order of Condemnation for roadway purposes and incidental purposes, recorded July 10, 1972 in Book 7973, Page 496 of Official Records.

In Favor of: Thomas Tedesco, et al
Affects: A portion of said land
The location of the easement cannot be determined from record information.

16. An easement for public road purposes and incidental purposes, recorded September 17, 1973 in Book 8268, Page 1304 of Official Records.

In Favor of: Far West Recreation Centers, Inc., a Nevada corporation, as to an undivided one-half interest
Affects: Said Land
The effect of a document entitled "Corporation Quitclaim (Easement)", recorded October 30, 2012 as Instrument No. 2012-0448999 of Official Records.

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Order Number: NHSC-6614406 (tc)
Page Number: 6
First American Title

17. An easement for roadway purposes and incidental purposes, recorded September 17, 1973 in Book 8268, Page 1306 of Official Records.

In Favor of: International Fastener Research Corporation, a New York corporation, as to an undivided one-half interest
Affects: Said Land
The effect of a document entitled "Corporation Quitclaim (Easement)", recorded October 30, 2012 as Instrument No. 2012-0448999 of Official Records.

18. Abutter's rights of ingress and egress to or from the street, highway, or freeway abutting said land have been relinquished in the document recorded November 26, 1973 in Book 8314, Page 57 of Official Records.

19. A waiver of any claims for damages by reason of the location, construction, landscaping or maintenance of a contiguous freeway, highway or roadway, as contained in the document recorded November 26, 1973 in Book 8314, Page 57 of Official Records.

20. Abutter's rights of ingress and egress to or from the street, highway, or freeway abutting said land have been relinquished in the document recorded May 31, 1974 in Book 8442, Page 1636 of Official Records.

21. A waiver of any claims for damages by reason of the location, construction, landscaping or maintenance of a contiguous freeway, highway or roadway, as contained in the document recorded May 31, 1974 in Book 8442, Page 1636 of Official Records. "The above deed herein recite that such remaining property shall abut upon and have access to said Frontage Road which be connected to Citrus Avenue, (Lytle Creek Road)".

22. Abutter's rights of ingress and egress to or from street, highway, or freeway abutting said land have been relinquished in the document recorded January 20, 1975 in Book 8598, Page 20 of Official Records.

23. A waiver of any claims for damages by reason of the location, construction, landscaping or maintenance of a contiguous freeway, highway or roadway, as contained in the document recorded January 20, 1975 in Book 8598, Page 20 of Official Records.

24. An easement to construct roads, use existing roads and make such addition thereto and incidental purposes, recorded June 27, 1975 in Book 8709, Page 4 of Official Records.

In Favor of: James R. Kostoff, nominee and Patricia A. Kostoff, his wife Affects: As described therein
The location of the easement cannot be determined from record information.

25. The effect of a map purporting to show the land and other property, filed November 6, 1980 in Book 41, Pages 71-81 of Record of Surveys.

26. The Terms, Provisions and Easement(s) contained in the document entitled "Grant of Easement and Agreement" recorded March 11, 2004 as Instrument No. 2004-171203 of Official Records.

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Order Number: NHSC-6614406 (tc)
Page Number: 7
First American Title

27. The terms and provisions contained in the document entitled "Memorandum of Agreement and Lien" recorded June 16, 2005 as Instrument No. 2005-428902 of Official Records.

28. An easement for drainage and grading and incidental purposes as condemned by Final Order of Condemnation, recorded August 30, 2007 as Instrument No. 2007-0503773 of Official Records.

In Favor of: San Bernardino County Flood Control District Affects: As described therein

29. The effect of a map purporting to show the land and other property, filed August 3, 2016 in Book 0158, Pages 50 - 56 of Record of Surveys.

30. The terms and provisions contained in the document entitled "Monarch Hills Development Agreement" recorded March 27, 2019 as Instrument No. 2019-0093136 of Official Records.

31. A lien for unsecured property taxes, evidenced by a certificate recorded by the tax collector of San Bernardino County, recorded August 25, 2020, as Instrument No. 2020-0305938 of Official Records.

Debtor: American Superior Land LLC
Year & No.: 2019 & 635382
Amount: $19,646.57, and any other amounts due thereunder.

32. This is a pro-forma preliminary report. It does not reflect the present status of title and is not intended to be a commitment to insure.

There are requirements that must be met before a policy of title insurance can be issued. Such requirements may include the recordation of a map or maps and/or a deed or deeds. A commitment to insure setting forth those requirements should be obtained from the Company.

33. Rights of the public in and to that portion of the Land lying within any Road, Street, Alley or Highway.

34. Water rights, claims or title to water, whether or not shown by the Public Records.

35. Rights of parties in possession.

Prior to the issuance of any policy of title insurance, the Company will require:

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Order Number: NHSC-6614406 (tc)
Page Number: 8
First American Title

36. With respect to Roseville Investments, LLC, a Florida limited liability company:
a. A copy of its operating agreement and any amendments thereto; b. If it is a California limited liability company, that a certified copy of its articles of organization (LLC1) and any certificate of correction (LLC-11), certificate of amendment (LLC-2), or restatement of articles of organization (LLC-10) be recorded in the public records; c. If it is a foreign limited liability company, that a certified copy of its application for registration (LLC-5) be recorded in the public records;
d. With respect to any deed, deed of trust, lease, subordination agreement or other document or instrument executed by such limited liability company and presented for recordation by the Company or upon which the Company is asked to rely, that such document or instrument be executed in accordance with one of the following, as appropriate:
(i) If the limited liability company properly operates through officers appointed or elected pursuant to the terms of a written operating agreement, such document must be executed by at least two duly elected or appointed officers, as follows: the chairman of the board, the president or any vice president, and any secretary, assistant secretary, the chief financial officer or any assistant treasurer; (ii) If the limited liability company properly operates through a manager or managers identified in the articles of organization and/or duly elected pursuant to the terms of a written operating agreement, such document must be executed by at least two such managers or by one manager if the limited liability company properly operates with the existence of only one manager. e. Other requirements which the Company may impose following its review of the material required herein and other information which the Company may require

37. With respect to American Superior Land, LLC, a Delaware limited liability company:
a. A copy of its operating agreement and any amendments thereto; b. If it is a California limited liability company, that a certified copy of its articles of organization (LLC1) and any certificate of correction (LLC-11), certificate of amendment (LLC-2), or restatement of articles of organization (LLC-10) be recorded in the public records; c. If it is a foreign limited liability company, that a certified copy of its application for registration (LLC-5) be recorded in the public records;
d. With respect to any deed, deed of trust, lease, subordination agreement or other document or instrument executed by such limited liability company and presented for recordation by the Company or upon which the Company is asked to rely, that such document or instrument be executed in accordance with one of the following, as appropriate:
(i) If the limited liability company properly operates through officers appointed or elected pursuant to the terms of a written operating agreement, such document must be executed by at least two duly elected or appointed officers, as follows: the chairman of the board, the president or any vice president, and any secretary, assistant secretary, the chief financial officer or any assistant treasurer; (ii) If the limited liability company properly operates through a manager or managers identified in the articles of organization and/or duly elected pursuant to the terms of a written operating agreement, such document must be executed by at least two such managers or by one manager if the limited liability company properly operates with the existence of only one manager. e. Other requirements which the Company may impose following its review of the material required herein and other information which the Company may require DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1533
Order Number: NHSC-6614406 (tc)
Page Number: 9
First American Title

38. With respect to EPC Holdings 823, LLC, a Washington limited liability company:
a. A copy of its operating agreement and any amendments thereto; b. If it is a California limited liability company, that a certified copy of its articles of organization (LLC1) and any certificate of correction (LLC-11), certificate of amendment (LLC-2), or restatement of articles of organization (LLC-10) be recorded in the public records; c. If it is a foreign limited liability company, that a certified copy of its application for registration (LLC-5) be recorded in the public records;
d. With respect to any deed, deed of trust, lease, subordination agreement or other document or instrument executed by such limited liability company and presented for recordation by the Company or upon which the Company is asked to rely, that such document or instrument be executed in accordance with one of the following, as appropriate:
(i) If the limited liability company properly operates through officers appointed or elected pursuant to the terms of a written operating agreement, such document must be executed by at least two duly elected or appointed officers, as follows: the chairman of the board, the president or any vice president, and any secretary, assistant secretary, the chief financial officer or any assistant treasurer; (ii) If the limited liability company properly operates through a manager or managers identified in the articles of organization and/or duly elected pursuant to the terms of a written operating agreement, such document must be executed by at least two such managers or by one manager if the limited liability company properly operates with the existence of only one manager. e. Other requirements which the Company may impose following its review of the material required herein and other information which the Company may require

39. With respect to RMD Inland Investors, LLC, a Delaware limited liability company:
a. A copy of its operating agreement and any amendments thereto; b. If it is a California limited liability company, that a certified copy of its articles of organization (LLC1) and any certificate of correction (LLC-11), certificate of amendment (LLC-2), or restatement of articles of organization (LLC-10) be recorded in the public records; c. If it is a foreign limited liability company, that a certified copy of its application for registration (LLC-5) be recorded in the public records;
d. With respect to any deed, deed of trust, lease, subordination agreement or other document or instrument executed by such limited liability company and presented for recordation by the Company or upon which the Company is asked to rely, that such document or instrument be executed in accordance with one of the following, as appropriate:
(i) If the limited liability company properly operates through officers appointed or elected pursuant to the terms of a written operating agreement, such document must be executed by at least two duly elected or appointed officers, as follows: the chairman of the board, the president or any vice president, and any secretary, assistant secretary, the chief financial officer or any assistant treasurer; (ii) If the limited liability company properly operates through a manager or managers identified in the articles of organization and/or duly elected pursuant to the terms of a written operating agreement, such document must be executed by at least two such managers or by one manager if the limited liability company properly operates with the existence of only one manager. e. Other requirements which the Company may impose following its review of the material required herein and other information which the Company may require DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1534
Order Number: NHSC-6614406 (tc)
Page Number: 10
First American Title

40. With respect to EPC Holdings 944, LLC, a Washington limited liability company:
a. A copy of its operating agreement and any amendments thereto; b. If it is a California limited liability company, that a certified copy of its articles of organization (LLC1) and any certificate of correction (LLC-11), certificate of amendment (LLC-2), or restatement of articles of organization (LLC-10) be recorded in the public records; c. If it is a foreign limited liability company, that a certified copy of its application for registration (LLC-5) be recorded in the public records;
d. With respect to any deed, deed of trust, lease, subordination agreement or other document or instrument executed by such limited liability company and presented for recordation by the Company or upon which the Company is asked to rely, that such document or instrument be executed in accordance with one of the following, as appropriate:
(i) If the limited liability company properly operates through officers appointed or elected pursuant to the terms of a written operating agreement, such document must be executed by at least two duly elected or appointed officers, as follows: the chairman of the board, the president or any vice president, and any secretary, assistant secretary, the chief financial officer or any assistant treasurer; (ii) If the limited liability company properly operates through a manager or managers identified in the articles of organization and/or duly elected pursuant to the terms of a written operating agreement, such document must be executed by at least two such managers or by one manager if the limited liability company properly operates with the existence of only one manager. e. Other requirements which the Company may impose following its review of the material required herein and other information which the Company may require DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1535
Order Number: NHSC-6614406 (tc)
Page Number: 11
First American Title

INFORMATIONAL NOTES
Note: The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than the certain dollar amount set forth in any applicable arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. If you desire to review the terms of the policy, including any arbitration clause that may be included, contact the office that issued this Commitment or Report to obtain a sample of the policy jacket for the policy that is to be issued in connection with your transaction.

1. General and special taxes and assessments for the fiscal year 2020-2021.

First Installment: $24,369.63, PAID
Penalty: $0.00
Second Installment: $24,369.62, PAID
Penalty: $0.00
Tax Rate Area: 010243
A. P. No.: 0226-075-17-0-000

2. General and special taxes and assessments for the fiscal year 2020-2021.

First Installment: $337.31, PAID
Penalty: $0.00
Second Installment: $337.29, PAID
Penalty: $0.00
Tax Rate Area: 010243
A. P. No.: 0226-075-27-0-000

3. General and special taxes and assessments for the fiscal year 2020-2021.

First Installment: $7,040.64, PAID
Penalty: $0.00
Second Installment: $7,040.61, PAID
Penalty: $0.00
Tax Rate Area: 010243
A. P. No.: 0226-075-28-0-000

4. General and special taxes and assessments for the fiscal year 2020-2021.

First Installment: $9,414.98, PAID
Penalty: $0.00
Second Installment: $9,414.94, PAID
Penalty: $0.00
Tax Rate Area: 010243
A. P. No.: 0226-075-29-0-000

5. General and special taxes and assessments for the fiscal year 2020-2021.

First Installment: $3,877.13, PAID
Penalty: $0.00
Second Installment: $3,877.10, PAID
Penalty: $0.00
DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1536
Order Number: NHSC-6614406 (tc)
Page Number: 12
First American Title
Tax Rate Area: 010243
A. P. No.: 0226-075-39-0-000

6. General and special taxes and assessments for the fiscal year 2020-2021.

First Installment: $30,184.21, PAID
Penalty: $0.00
Second Installment: $30,184.21, PAID
Penalty: $0.00
Tax Rate Area: 010243
A. P. No.: 0226-075-18-0-000

7. General and special taxes and assessments for the fiscal year 2020-2021.

First Installment: $1,115.82, PAID
Penalty: $0.00
Second Installment: $1,115.82, PAID
Penalty: $0.00
Tax Rate Area: 010243
A. P. No.: 0226-075-26-0-000

8. General and special taxes and assessments for the fiscal year 2020-2021.

First Installment: $48,940.15, PAID
Penalty: $0.00
Second Installment: $48,940.13, PAID
Penalty: $0.00
Tax Rate Area: 074057
A. P. No.: 0226-075-02-0-000

9. General and special taxes and assessments for the fiscal year 2020-2021.

First Installment: $4,124.77, PAID
Penalty: $0.00
Second Installment: $4,124.75, PAID
Penalty: $0.00
Tax Rate Area: 074026
A. P. No.: 0226-075-04-0-000

10. General and special taxes and assessments for the fiscal year 2020-2021.

First Installment: $1,939.19, PAID
Penalty: $0.00
Second Installment: $1,939.17, PAID
Penalty: $0.00
Tax Rate Area: 074022
A. P. No.: 0226-075-05-0-000

11. General and special taxes and assessments for the fiscal year 2020-2021.

DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1537
Order Number: NHSC-6614406 (tc)
Page Number: 13
First American Title
First Installment: $21,046.28, PAID
Penalty: $0.00
Second Installment: $21,046.25, PAID
Penalty: $0.00
Tax Rate Area: 010243
A. P. No.: 0226-075-10-0-000

12. General and special taxes and assessments for the fiscal year 2020-2021.

First Installment: $19,385.03, PAID
Penalty: $0.00
Second Installment: $19,384.99, PAID
Penalty: $0.00
Tax Rate Area: 074056
A. P. No.: 0226-075-11-0-000

13. General and special taxes and assessments for the fiscal year 2020-2021.

First Installment: $3,600.50, PAID
Penalty: $0.00
Second Installment: $3,600.47, PAID
Penalty: $0.00
Tax Rate Area: 010243
A. P. No.: 0226-075-15-0-000

14. General and special taxes and assessments for the fiscal year 2020-2021.

First Installment: $14,401.31, PAID
Penalty: $0.00
Second Installment: $14,401.28, PAID
Penalty: $0.00
Tax Rate Area: 010243
A. P. No.: 0226-075-16-0-000

15. General and special taxes and assessments for the fiscal year 2020-2021.

First Installment: $556.12, PAID
Penalty: $0.00
Second Installment: $556.10, PAID
Penalty: $0.00
Tax Rate Area: 010243
A. P. No.: 0226-075-30-0-000

16. General and special taxes and assessments for the fiscal year 2020-2021.

First Installment: $1,661.91, PAID
Penalty: $0.00
Second Installment: $1,661.90, PAID
Penalty: $0.00
Tax Rate Area: 010243
A. P. No.: 0226-075-40-0-000
DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1538
Order Number: NHSC-6614406 (tc)
Page Number: 14
First American Title

17. General and special taxes and assessments for the fiscal year 2020-2021.

First Installment: $1,107.78, PAID
Penalty: $0.00
Second Installment: $1,107.77, PAID
Penalty: $0.00
Tax Rate Area: 010243
A. P. No.: 0226-075-41-0-000

18. The property covered by this report is vacant land.

19. According to the public records, there has been no conveyance of the land within a period of twentyfour months prior to the date of this report, except as follows:

None

20. We find no outstanding voluntary liens of record affecting subject property. Disclosure should be made concerning the existence of any unrecorded lien or other indebtedness which could give rise to any possible security interest in the subject property.

The map attached, if any, may or may not be a survey of the land depicted hereon. First American expressly disclaims any liability for loss or damage which may result from reliance on this map except to the extent coverage for such loss or damage is expressly provided by the terms and provisions of the title insurance policy, if any, to which this map is attached.

DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1539
Order Number: NHSC-6614406 (tc)
Page Number: 15
First American Title

LEGAL DESCRIPTION
Real property in the City of Fontana, County of San Bernardino, State of California, described as follows:

THOSE PORTIONS OF LAND LYING WITHIN SECTION 13, TOWNSHIP 1 NORTH, RANGE 6 WEST, SAN

BERNARDINO MERIDIAN, IN THE CITY OF FONTANA, COUNTY OF SAN BERNARDINO, STATE OF

CALIFORNIA, ACCORDING TO THE OFFICIAL GOVERNMENT TOWNSHIP MAP THEREOF, APPROVED BY THE SURVEYOR GENERAL, DATED NOVEMBER 13, 1885, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

PARCEL "A"
COMMENCING AT THE SOUTHEAST CORNER OF SAID SECTION 13; THENCE, ALONG THE EAST LINE OF SAID SECTION 13, NORTH 00°35'58" EAST, 2,761.05 FEET TO THE TRUE POINT OF BEGINNING; SAID

POINT BEING ON A NON-TANGENT CURVE, CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 1,354.00 FEET, A RADIAL LINE TO SAID BEGINNING OF CURVE BEARS SOUTH 46°21'52" EAST;

THENCE LEAVING SAID EAST LINE AND SOUTHWESTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 07°00'40", A DISTANCE OF 165.68 FEET;
THENCE NORTH 06°19'00" EAST, 102.98 FEET;
THENCE NORTH 83°41'00" WEST, 64.84 FEET;
THENCE SOUTH 19°20'13" WEST, 24.98 FEET;
THENCE SOUTH 10°02'56" WEST, 72.77 FEET;
THENCE SOUTH 23°17'49" EAST, 30.77 FEET;
THENCE SOUTH 06°19'00" WEST, 37.04 FEET TO THE BEGINNING OF A NON-TANGENT CURVE, CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 1,354.00 FEET, A RADIAL LINE TO SAID BEGINNING OF CURVE BEARS SOUTH 35°49'43" EAST;
THENCE SOUTHWESTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 05°09'47", A DISTANCE OF 122.01 FEET;
THENCE SOUTH 30°39'56" EAST, 46.00 FEET TO A POINT HEREINAFTER REFERRED TO AS POINT "A"; THENCE CONTINUING SOUTH 30°39'56" EAST, 46.00 FEET;
THENCE SOUTH 32°15'03" EAST, 16.95 FEET TO THE BEGINNING OF A NON-TANGENT CURVE, CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 465.00 FEET, A RADIAL LINE TO SAID BEGINNING OF CURVE BEARS SOUTH 63°39'22" EAST;
THENCE SOUTHWESTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 04°32'36", A DISTANCE OF 36.87 FEET;
THENCE SOUTH 59°06'46" EAST, 26.69 FEET TO THE TO THE BEGINNING OF A NON-TANGENT CURVE, CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 1,757.38 FEET, A RADIAL LINE TO SAID BEGINNING OF CURVE BEARS SOUTH 56°00'45" EAST SAID CURVE ALSO BEING THE NORTHWESTERLY DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1540
Order Number: NHSC-6614406 (tc)
Page Number: 16
First American Title
LINE OF THE LAND DESCRIBED IN THE GRANT DEED RECORDED NOVEMBER 26, 1973 IN BOOK 8314, PAGE 57, OFFICIAL RECORDS OF SAID COUNTY;
THENCE ALONG SAID NORTHWESTERLY LINE THE FOLLOWING COURSES:

THENCE NORTHEASTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 02°15'25", A DISTANCE OF 69.23 FEET;
THENCE NORTH 31°40'39" EAST, 69.26 FEET;
THENCE NORTH 31°40'53" EAST, 293.65 FEET TO SAID EAST LINE OF SECTION 13; THENCE, ALONG SAID EAST LINE, NORTH 00°35'58" EAST, 2.83 FEET TO THE POINT OF BEGINNING.

THE ABOVE DESCRIBED PARCEL CONTAINS 33,420 SQUARE FEET, MORE OR LESS.

PARCEL "B"
BEING A STRIP OF LAND, 92.00 FEET WIDE, THE CENTERLINE OF WHICH IS DESCRIBED AS FOLLOWS:

BEGINNING AT HEREINBEFORE REFERENCED POINT "A"; SAID POINT BEING AT THE BEGINNING OF A NON-TANGENT CURVE, CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 1,400.00 FEET, A RADIAL LINE TO SAID BEGINNING OF CURVE BEARS SOUTH 30°39'56" EAST; THENCE SOUTHWESTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 15°58'30", A DISTANCE OF 390.34 FEET;
THENCE SOUTH 75°18'34" WEST, 88.81 FEET TO A POINT HEREINAFTER REFERRED TO AS POINT "B"; THENCE SOUTH 75°18'34" WEST, 4.23 FEET TO A POINT HEREINAFTER REFERRED TO AS POINT "C"; THENCE SOUTH 75°18'34" WEST, 397.13 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 1,500.00 FEET;
THENCE SOUTHWESTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 20°31'20", A DISTANCE OF 537.27 FEET;
THENCE SOUTH 54°47'14" WEST, 325.65 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 2,000.00 FEET;
THENCE SOUTHWESTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 11°31'10", A DISTANCE OF 402.10 FEET;
THENCE SOUTH 66°18'24" WEST, 222.62 FEET TO A POINT HEREINAFTER REFERRED TO AS POINT "D"; THENCE SOUTH 66°18'24" WEST, 1.36 FEET TO A POINT HEREINAFTER REFERRED TO AS POINT "E"; THENCE SOUTH 66°18'24" WEST, 731.55 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE NORTHERLY AND HAVING A RADIUS OF 2,000.00 FEET;
THENCE WESTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 02°29'05", A DISTANCE OF

86.73 FEET;
THENCE SOUTH 68°47'29" WEST, 151.64 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1541
Order Number: NHSC-6614406 (tc)
Page Number: 17
First American Title
SOUTHERLY AND HAVING A RADIUS OF 1,050.00 FEET;
THENCE WESTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 00°53'46", A DISTANCE OF

16.42 FEET TO THE WESTERLY LINE OF THE EAST HALF OF THE EAST HALF OF THE SOUTHWEST QUARTER OF SAID SECTION 13.

THE SIDELINES OF SAID STRIP SHALL BE PRONGED OR SHORTENED AS TO TERMINATE IN SAID WESTERLY LINE.

THE ABOVE DESCRIBED STRIP OF LAND CONTAINS 308,734 SQUARE FEET, MORE OR LESS.

PARCEL "C"
BEGINNING AT HEREINBEFORE REFERENCED POINT "B";
THENCE SOUTH 14°41'26" EAST, 46.00 FEET TO A POINT ON THE SOUTHERLY LINE OF SAID PARCEL "B" AND THE TRUE POINT OF BEGINNING;
THENCE, LEAVING SAID SOUTHERLY LINE, SOUTH 28°53'08" WEST, 37.27 FEET; THENCE SOUTH 75°18'34" WEST, 77.07 FEET;
THENCE NORTH 58°16'01" WEST, 37.27 FEET TO SAID SOUTHERLY LINE; THENCE, ALONG SAID SOUTHERLY LINE, NORTH 75°18'34" EAST, 128.45 FEET TO THE TRUE POINT OF BEGINNING.

THE ABOVE DESCRIBED PARCEL OF LAND CONTAINS 2,775 SQUARE FEET, MORE OR LESS.

PARCEL "D"
BEGINNING AT HEREINBEFORE REFERENCED POINT "C";
THENCE NORTH 14°41'26" WEST, 46.00 FEET TO A POINT ON THE NORTHERLY LINE OF SAID PARCEL "B" AND THE TRUE POINT OF BEGINNING;
THENCE, LEAVING SAID NORTHERLY LINE, NORTH 63°11'39" WEST, 34.71 FEET; THENCE SOUTH 75°18'34" WEST, 63.00 FEET;
THENCE SOUTH 33°48'46" WEST, 34.71 FEET TO SAID NORTHERLY LINE; THENCE, ALONG SAID NORTHERLY LINE, NORTH 75°18'34" EAST, 115.00 FEET TO THE TRUE POINT OF BEGINNING.

THE ABOVE DESCRIBED STRIP OF LAND CONTAINS 2,047 SQUARE FEET, MORE OR LESS.

PARCEL "E"
BEGINNING AT HEREINBEFORE REFERENCED POINT "D";
THENCE SOUTH 23°41'36" EAST, 46.00 FEET TO A POINT ON THE SOUTHEASTERLY LINE OF SAID PARCEL "B" AND THE TRUE POINT OF BEGINNING;
DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1542
Order Number: NHSC-6614406 (tc)
Page Number: 18
First American Title
THENCE, LEAVING SAID SOUTHEASTERLY LINE, SOUTH 19°52'58" WEST, 37.27 FEET; THENCE SOUTH 57°27'24" WEST, 9.00 FEET;
THENCE SOUTH 66°18'24" WEST, 59.29 FEET;
THENCE SOUTH 75°09'23" WEST, 9.00 FEET;
THENCE NORTH 67°16'11" WEST, 37.27 FEET TO SAID SOUTHEASTERLY LINE; THENCE, ALONG SAID SOUTHEASTERLY LINE, NORTH 66°18'24" EAST, 128.45 FEET TO THE TRUE POINT OF BEGINNING;
THE ABOVE DESCRIBED STRIP OF LAND CONTAINS 2,869 SQUARE FEET, MORE OR LESS.

PARCEL "F"
BEGINNING AT HEREINBEFORE REFERENCED POINT "E";
THENCE NORTH 23°41'36" WEST, 46.00 FEET TO A POINT ON THE NORTHWESTERLY LINE OF SAID PARCEL "B" AND THE TRUE POINT OF BEGINNING;
THENCE NORTH 64°02'42" WEST, 38.84 FEET;
THENCE SOUTH 81°00'42" WEST, 9.00 FEET;
THENCE SOUTH 66°18'24" WEST, 58.03 FEET;
THENCE SOUTH 51°36'05" WEST, 9.00 FEET;
THENCE SOUTH 16°39'29" WEST, 38.84 FEET TO SAID NORTHWESTERLY LINE; THENCE, ALONG SAID NORTHWESTERLY LINE, NORTH 66°18'24" EAST, 125.74 FEET TO THE TRUE POINT OF BEGINNING;
NOTE: THE ABOVE DESCRIPTION IS FOR IDENTIFICATION PURPOSES ONLY AND HAS BEEN PROVIDED FOR THE ACCOMMODATION OF THIS REPORT. SAID DESCRIPTION IS NOT INSURABLE PURSUANT TO

THE SUBDIVISION MAP ACT OF THE STATE OF CALIFORNIA AND SHOULD NOT BE RELIED UPON TO CONVEY OR ENCUMBER SAID LAND.

APN's: PORTION OF 0226-075-17-0-000, 0226-075-27-0-000, 0226-075-28-0-000, PORTION OF 0226- 075-29-0-000, 0226-075-39-0-000,PORTION OF 0226-075-18-0-000, 0226-075-26-0-000, 0226-075-02-0- 000, 0226-075-04-0-000, 0226-075-05-0-000, 0226-075-10-0-000, 0226-075-11-0-000, PORTION OF 0226-075-15-0-000, PORTION OF 0226-075-16-0-000, 0226-075-30-0-000, 0226-075-40-0-000, PORTION OF 0226-075-41-0-000 and PORTION OF 0226-075-36-0-000 DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1543
Order Number: NHSC-6614406 (tc)
Page Number: 19
First American Title
DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1544
Order Number: NHSC-6614406 (tc)
Page Number: 20
First American Title
NOTICE
Section 12413.1 of the California Insurance Code, effective January 1, 1990, requires that any title insurance company, underwritten title company, or controlled escrow company handling funds in an escrow or subescrow capacity, wait a specified number of days after depositing funds, before recording any documents in connection with the transaction or disbursing funds. This statute allows for funds deposited by wire transfer to be disbursed the same day as deposit. In the case of cashier's checks or certified checks, funds may be disbursed the next day after deposit. In order to avoid unnecessary delays of three to seven days, or more, please use wire transfer, cashier's checks, or certified checks whenever possible.

DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1545
Order Number: NHSC-6614406 (tc)
Page Number: 21
First American Title

EXHIBIT A

LIST OF PRINTED EXCEPTIONS AND EXCLUSIONS (BY POLICY TYPE) CLTA STANDARD COVERAGE POLICY – 1990

EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of:

1. (a) Any law, ordinance or governmental regulation (including but not limited to building or zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien, or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy.
(b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy.

2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge.

3. Defects, liens, encumbrances, adverse claims or other matters:
(a) whether or not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the insured claimant;
(b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy;
(c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or for the estate or interest insured by this policy.

4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with the applicable doing business laws of the state in which the land is situated.

5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law.

6. Any claim, which arises out of the transaction vesting in the insured the estate of interest insured by this policy or the transaction creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws.

EXCEPTIONS FROM COVERAGE - SCHEDULE B, PART I
This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of:

1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records.

Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public, records.

2. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof.

3. Easements, liens or encumbrances, or claims thereof, not shown by the public records.

4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records.

5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records.

6. Any lien or right to a lien for services, labor or material unless such lien is shown by the public records at Date of Policy.

DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1546
Order Number: NHSC-6614406 (tc)
Page Number: 22
First American Title
CLTA/ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE (12-02-13)

EXCLUSIONS
In addition to the Exceptions in Schedule B, You are not insured against loss, costs, attorneys' fees, and expenses resulting from:

1. Governmental police power, and the existence or violation of those portions of any law or government regulation concerning:
a. building;
b. zoning;
c. land use;
d. improvements on the Land;
e. land division; and
f. environmental protection.

This Exclusion does not limit the coverage described in Covered Risk 8.a., 14, 15, 16, 18, 19, 20, 23 or 27.

2. The failure of Your existing structures, or any part of them, to be constructed in accordance with applicable building codes. This Exclusion does not limit the coverage described in Covered Risk 14 or 15.

3. The right to take the Land by condemning it. This Exclusion does not limit the coverage described in Covered Risk 17.

4. Risks:
a. that are created, allowed, or agreed to by You, whether or not they are recorded in the Public Records; b. that are Known to You at the Policy Date, but not to Us, unless they are recorded in the Public Records at the Policy Date; c. that result in no loss to You; or
d. that first occur after the Policy Date - this does not limit the coverage described in Covered Risk 7, 8.e., 25, 26, 27 or 28.

5. Failure to pay value for Your Title.

6. Lack of a right:
a. to any land outside the area specifically described and referred to in paragraph 3 of Schedule A; and b. in streets, alleys, or waterways that touch the Land.

This Exclusion does not limit the coverage described in Covered Risk 11 or 21.

7. The transfer of the Title to You is invalid as a preferential transfer or as a fraudulent transfer or conveyance under federal bankruptcy, state insolvency, or similar creditors' rights laws.

8. Contamination, explosion, fire, flooding, vibration, fracturing, earthquake, or subsidence.

9. Negligence by a person or an Entity exercising a right to extract or develop minerals, water, or any other substances.

LIMITATIONS ON COVERED RISKS
Your insurance for the following Covered Risks is limited on the Owner's Coverage Statement as follows:

For Covered Risk 16, 18, 19, and 21 Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A.

The deductible amounts and maximum dollar limits shown on Schedule A are as follows:

Your Deductible Amount Our Maximum Dollar Limit of Liability Covered Risk 16: 1% of Policy Amount Shown in Schedule A or $2,500 $10,000 (whichever is less)
Covered Risk 18: 1% of Policy Amount Shown in Schedule A or $5,000 $25,000 (whichever is less)
Covered Risk 19: 1% of Policy Amount Shown in Schedule A or $5,000 $25,000 (whichever is less)
Covered Risk 21: 1% of Policy Amount Shown in Schedule A or $2,500 $5,000 (whichever is less)
2006 ALTA LOAN POLICY (06-17-06)

EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of:

1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to
(i) the occupancy, use, or enjoyment of the Land;
(ii) the character, dimensions, or location of any improvement erected on the Land; DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1547
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First American Title
(iii) the subdivision of land; or
(iv) environmental protection;
or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5.
(b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6.

2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8.

3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 13, or 14); or
(e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage.

4. Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing-business laws of the state where the Land is situated.

5. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury or any consumer credit protection or truth-in-lending law.

6. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction creating the lien of the Insured Mortgage, is
(a) a fraudulent conveyance or fraudulent transfer, or
(b) a preferential transfer for any reason not stated in Covered Risk 13(b) of this policy.

7. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the Insured Mortgage in the Public Records. This Exclusion does not modify or limit the coverage provided under Covered Risk 11(b).

The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage:

EXCEPTIONS FROM COVERAGE
[Except as provided in Schedule B - Part II,[ t[or T]his policy does not insure against loss or damage, and the Company will not pay costs, attorneys' fees or expenses, that arise by reason of:
[PART I
[The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage:

1. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records.

2. Any facts, rights, interests, or claims that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land.

3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records.

4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records.

5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records.

6. Any lien or right to a lien for services, labor or material unless such lien is shown by the Public Records at Date of Policy.

PART II
In addition to the matters set forth in Part I of this Schedule, the Title is subject to the following matters, and the Company insures against loss or damage sustained in the event that they are not subordinate to the lien of the Insured Mortgage:] 2006 ALTA OWNER'S POLICY (06-17-06)

EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of:

1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to
DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1548
Order Number: NHSC-6614406 (tc)
Page Number: 24
First American Title
(i) the occupancy, use, or enjoyment of the Land;
(ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or
(iv) environmental protection;
or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5.
(b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6.

2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8.

3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 9 or 10); or
(e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title.

4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction vesting the Title as shown in Schedule A, is
(a) a fraudulent conveyance or fraudulent transfer, or
(b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy.

5. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A.

The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage:

EXCEPTIONS FROM COVERAGE
This policy does not insure against loss or damage, and the Company will not pay costs, attorneys' fees or expenses, that arise by reason of:
[The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage:

1. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records.

2. Any facts, rights, interests, or claims that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land.

3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records.

4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records.

5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records.

6. Any lien or right to a lien for services, labor or material unless such lien is shown by the Public Records at Date of Policy.

7. [Variable exceptions such as taxes, easements, CC&R's, etc. shown here.]

ALTA EXPANDED COVERAGE RESIDENTIAL LOAN POLICY (07-26-10)

EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of:

1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to
(i) the occupancy, use, or enjoyment of the Land;
(ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or
(iv) environmental protection;
or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16. (b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1549
First American Title
14 or 16.

2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8.

3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 16, 17, 18, 19, 20, 21, 22, 23, 24, 27 or 28); or
(e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage.

4. Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing-business laws of the state where the Land is situated.

5. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury or any consumer credit protection or truth-in-lending law. This Exclusion does not modify or limit the coverage provided in Covered Risk 26.

6. Any claim of invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as to Advances or modifications made after the Insured has Knowledge that the vestee shown in Schedule A is no longer the owner of the estate or interest covered by this policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11.

7. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching subsequent to Date of Policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11(b) or 25.

8. The failure of the residential structure, or any portion of it, to have been constructed before, on or after Date of Policy in accordance with applicable building codes. This Exclusion does not modify or limit the coverage provided in Covered Risk 5 or 6.

9. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction creating the lien of the Insured Mortgage, is
(a) a fraudulent conveyance or fraudulent transfer, or
(b) a preferential transfer for any reason not stated in Covered Risk 27(b) of this policy.

10. Contamination, explosion, fire, flooding, vibration, fracturing, earthquake, or subsidence.

11. Negligence by a person or an Entity exercising a right to extract or develop minerals, water, or any other substances.

DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1550
Privacy Notice
Effective: October 1, 2019
Notice Last Updated: January 1, 2021
This Privacy Notice describes how First American Financial Corporation and its subsidiaries and affiliates (together referred to as “First American,” “we,” “us,” or “our”) collect, use, store, and share your information. This Privacy Notice applies to information we receive from you offline only, as well as from third parties, when you interact with us and/or use and access our services and products (“Products”). For more information about our privacy practices, including our online practices, please visit https://www.firstam.com/privacy-policy/. The practices described in this Privacy Notice are subject to applicable laws in the places in which we operate.

What Type Of Information Do We Collect About You? We collect a variety of categories of information about you.

To learn more about the categories of information we collect, please visit https://www.firstam.com/privacy-policy/.

How Do We Collect Your Information? We collect your information: (1) directly from you; (2) automatically when you interact with us; and (3) from third parties, including business parties and affiliates.

How Do We Use Your Information? We may use your information in a variety of ways, including but not limited to providing the services you have requested, fulfilling your transactions, comply with relevant laws and our policies, and handling a claim. To learn more about how we may use your information, please visit https://www.firstam.com/privacypolicy/.

How Do We Share Your Information? We do not sell your personal information. We only share your information, including to subsidiaries, affiliates, and to unaffiliated third parties: (1) with your consent; (2) in a business transfer; (3) to service providers; and (4) for legal process and protection. To learn more about how we share your information, please visit https://www.firstam.com/privacy-policy/.

How Do We Store and Protect Your Information? The security of your information is important to us. That is why we take commercially reasonable steps to make sure your information is protected. We use our best efforts to maintain commercially reasonable technical, organizational, and physical safeguards, consistent with applicable law, to protect your information.

How Long Do We Keep Your Information? We keep your information for as long as necessary in accordance with the purpose for which it was collected, our business needs, and our legal and regulatory obligations.

Your Choices We provide you the ability to exercise certain controls and choices regarding our collection, use, storage, and sharing of your information. You can learn more about your choices by visiting https://www.firstam.com/privacypolicy/.

International Jurisdictions: Our Products are offered in the United States of America (US), and are subject to US federal, state, and local law. If you are accessing the Products from another country, please be advised that you may be transferring your information to us in the US, and you consent to that transfer and use of your information in accordance with this Privacy Notice. You also agree to abide by the applicable laws of applicable US federal, state, and local laws concerning your use of the Products, and your agreements with us.

We may change this Privacy Notice from time to time. Any and all changes to this Privacy Notice will be reflected on this page, and where appropriate provided in person or by another electronic method. YOUR CONTINUED USE, ACCESS,

OR INTERACTION WITH OUR PRODUCTS OR YOUR CONTINUED COMMUNICATIONS WITH US AFTER THIS

NOTICE HAS BEEN PROVIDED TO YOU WILL REPRESENT THAT YOU HAVE READ AND UNDERSTOOD THIS PRIVACY NOTICE.

Contact Us [email protected] or toll free at 1-866-718-0097. © 2020 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE:FAF Form 10-PRIVACY20 (12-18-20) Page 1 of 2 Privacy Notice (2020 First American Financial Corporation) English
DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1551
For California Residents
If you are a California resident, you may have certain rights under California law, including but not limited to the California Consumer Privacy Act of 2018 (“CCPA”). All phrases used in this section shall have the same meaning as those phrases are used under California law, including the CCPA.

Right to Know. You have a right to request that we disclose the following information to you: (1) the categories of personal information we have collected about or from you; (2) the categories of sources from which the personal information was collected; (3) the business or commercial purpose for such collection and/or disclosure; (4) the categories of third parties with whom we have shared your personal information; and (5) the specific pieces of your personal information we have collected. To submit a verified request for this information, go to our online privacy policy at www.firstam.com/privacy-policy to submit your request or call toll-free at 1-866-718-0097. You may also designate an authorized agent to submit a request on your behalf by going to our online privacy policy at www.firstam.com/privacy-policy to submit your request or by calling toll-free at 1-866-718-0097.

Right of Deletion. You also have a right to request that we delete the personal information we have collected from and about you. This right is subject to certain exceptions available under the CCPA and other applicable law. To submit a verified request for deletion, go to our online privacy policy at www.firstam.com/privacy-policy to submit your request or call toll-free at 1-866-718-0097. You may also designate an authorized agent to submit a request on your behalf by going to our online privacy policy at www.firstam.com/privacy-policy to submit your request or by calling toll-free at 1-866-718- 0097.

Verification Process. For either a request to know or delete, we will verify your identity before responding to your request. To verify your identity, we will generally match the identifying information provided in your request with the information we have on file about you. Depending on the sensitivity of the information requested, we may also utilize more stringent verification methods to verify your identity, including but not limited to requesting additional information from you and/or requiring you to sign a declaration under penalty of perjury.

Notice of Sale. We do not sell California resident information, nor have we sold California resident information in the past 12 months. We have no actual knowledge of selling the information of minors under the age of 16.

Right of Non-Discrimination. You have a right to exercise your rights under California law, including under the CCPA, without suffering discrimination. Accordingly, First American will not discriminate against you in any way if you choose to exercise your rights under the CCPA.

Notice of Collection. To learn more about the categories of personal information we have collected about California residents over the last 12 months, please see “What Information Do We Collect About You” in https://www.firstam.com/privacy-policy. To learn about the sources from which we have collected that information, the business and commercial purpose for its collection, and the categories of third parties with whom we have shared that information, please see “How Do We Collect Your Information”, “How Do We Use Your Information”, and “How Do We Share Your Information” in https://www.firstam.com/privacy-policy.

Notice of Sale. We have not sold the personal information of California residents in the past 12 months.

Notice of Disclosure. To learn more about the categories of personal information we may have disclosed about California residents in the past 12 months, please see “How Do We Use Your Information” and “How Do We Share Your Information” in https://www.firstam.com/privacy-policy. © 2020 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE:FAF Form 10-PRIVACY20 (12-18-20) Page 2 of 2 Privacy Notice (2020 First American Financial Corporation) English
DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1552
16498.00170\34034614.3
EXHIBIT F-1

EXHIBIT F

FORM OF NONFOREIGN TRANSFEROR DECLARATION
Nonforeign Transferor Declaration
TRANSFEROR’S CERTIFICATION OF NON-FOREIGN STATUS
Section 1445 of the Internal Revenue Code provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a foreign person. For U.S. tax purposes (including Section 1445), the owner of a disregarded entity (which has legal title to a U.S. real property interest under local law) will be the transferor of the Property and not the disregarded entity. To inform
(“Transferee”), the transferee of that certain real property described in Schedule ”1” attached hereto and incorporated herein by this reference, that withholding of tax is not required upon the disposition of the above-referenced real property by ____________________(“Transferor”), the undersigned hereby certifies the following on behalf of the Transferor:

1. Transferor is not a foreign corporation, foreign partnership, foreign trust, foreign estate or foreign person (as those terms are defined in the Code and the Income Tax Regulations promulgated thereunder); and

2. Transferor’s taxpayer identification number is: __________________; and

3. Transferor’s address is: _____________________________________________.

The Transferor understands that this Certification may be disclosed to the Revenue Service by the Transferee and that any false statement contained herein could be punished by fine, imprisonment, or both.

DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1553
16498.00170\34034614.3
EXHIBIT F-2
The Transferor understands that the Transferee is relying on this Certification in determining whether withholding is required upon said transfer.

Under penalty of perjury I declare that I have examined this Certification and to the best of my knowledge and belief it is true, correct and complete, and I further declare that I have authority to sign this document on behalf of the Transferor.

Dated: “TRANSFEROR”
,
By:

Name:

Title:

DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1554
16498.00170\34034614.3
EXHIBIT G-1

EXHIBIT G

FORM OF GRANT DEED
DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1555
APN: NO RECORDING FEE REQUIRED:

This document is exempt from Fee Pursuant to
Government Code Section 27383
Documentary Tax Due: $None

GRANT DEED
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, [INSERT] does hereby grant to [INSERT] (“Grantee”), a fee interest of that certain real property in the City of Fontana, County of San Bernardino, State of California described as follows:
[INSERT LEGAL DESCRIPTION]
GRANTOR:
[INSERT] Date
Sheet 1 of 2
City Index No.

RECORDING REQUESTED BY:
[insert]
Once Recorded, Return To:
[insert]
DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1556

CITY OF FONTANA ACCEPTANCE CERTIFICATE
This is to certify that the interest in real property conveyed by the deed or grant deed dated from [INSERT] to the City of Fontana, a Municipal Corporation, is hereby accepted by the undersigned officer pursuant to authority conferred by resolution of the City Council adopted on July 16, 1991 and the grantee consents to the recordation thereof by its duly authorized officer.

By:

Ricardo Sandoval, P.E., P.L.S.

City Engineer, City of Fontana
Sheet 2 of 2
City Index No.

DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1557
16498.00170\34034614.3
EXHIBIT G-1

EXHIBIT H

FORM OF GRANT OF EASEMENT
DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1558
19782.00019\9576601.4
No Recording Fees or Documentary Transfer Tax
Government Code § 27383
Rev & Tax Code § 11922

RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:

CITY OF FONTANA
Engineering Department
8353 Sierra Avenue
Fontana, California 92335
___________________________________________________________________________________ APN: (Space above this line is for Recorders Use) FILE:

TRA:

GRANT OF EASEMENT
(Road Construction)
FOR VALUABLE CONSIDERATION, the receipt of which is hereby acknowledged, The CITY OF FONTANA, a municipal corporation (“Grantor”) hereby grants to [INSERT], their successors and assigns (collectively, “Grantee”), a permanent, nonexclusive easement for ingress, egress, construction and development of a road and necessary improvements and appurtenances (“Road”), upon, over and across that certain real property in the County of San Bernardino, State of California, as described in Exhibit “A” and depicted on Exhibit “B” attached hereto (“Easement Area”).

The easement rights described herein include the right to construct and develop the Road, including any slopes associated therewith. The Road is required to be improved with asphalt or some other paved surface. Construction and development of the Road by Grantee is pursuant to that certain Real Property Exchange Agreement dated [INSERT] and does not create a duty or obligation of any type to third parties, including Grantor or any persons claiming rights under Grantor, for death, personal injury or property damage allegedly resulting from the construction or development of the Road. Grantee shall have the right to prohibit public access to the Road by means of gates and fences secured by locks or other access control devices while Grantee is constructing and developing the Road and until Grantor terminates this easement.

Doc. No. ______________

GRANTOR
Date ________________________________ By
Its:
(mailing address)
(city) (state) (zip code)
DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1559
19782.00019\9576601.4
Doc. No.
(Rev. 1/15)

ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA )
) ss
COUNTY OF _________________ )
On , before me, ,
Notary Public, personally appeared __________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature: (Seal)
DocuSign Envelope ID: 4DBF8682-6E8B-46EF-93D0-37CF0CE803F2 1560
Certificate Of Completion
Envelope Id: 4DBF86826E8B46EF93D037CF0CE803F2 Status: Completed Subject: Lytle Creek Road Exchange Agreement
Source Envelope:

Document Pages: 107 Signatures: 12 Envelope Originator:

Certificate Pages: 6 Initials: 0 Purchasing Office
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
8353 Sierra Avenue
Fontana, CA 92335
[email protected]
IP Address: 192.146.186.96
Record Tracking
Status: Original
8/12/2021 10:15:32 AM
Holder: Purchasing Office
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
John Troutman
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 64.58.151.194
Sent: 8/12/2021 10:22:24 AM
Viewed: 8/12/2021 11:06:36 AM
Signed: 8/13/2021 10:56:59 AM
Electronic Record and Signature Disclosure:

Accepted: 8/12/2021 11:06:36 AM
ID: 9e1876da-cd4b-4423-a1a3-ecb5f3ba9402
Ricardo Sandoval
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 192.146.186.96
Sent: 8/13/2021 10:57:03 AM
Viewed: 8/13/2021 1:08:07 PM
Signed: 8/16/2021 5:57:15 PM
Electronic Record and Signature Disclosure:

Accepted: 8/13/2021 1:08:07 PM
ID: cd14a51a-3a69-4015-9652-bb3df5c477fe
Phillip Burum
[email protected]
Deputy City Manager
Security Level: Email, Account Authentication
(None) Signature Adoption: Pre-selected Style
Using IP Address: 192.146.186.96
Sent: 8/16/2021 5:57:18 PM
Viewed: 8/17/2021 9:51:02 AM
Signed: 8/17/2021 9:52:49 AM
Electronic Record and Signature Disclosure:

Accepted: 8/17/2021 9:51:02 AM
ID: 24d85b07-0914-4ca0-b08c-e3540a7a7c38
Ruben Duran
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 177.248.193.42
Signed using mobile
Sent: 8/17/2021 9:52:52 AM
Viewed: 8/19/2021 9:33:46 AM
Signed: 8/19/2021 9:36:49 AM
Electronic Record and Signature Disclosure:

Accepted: 8/19/2021 9:33:46 AM
ID: 502019ce-6d35-478e-a785-9a2fa726a548
1561
Signer Events Signature Timestamp
Sid Lambert
[email protected]
Purchasing Office
Blais & Associates
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 192.146.186.96
Sent: 8/19/2021 9:36:53 AM
Viewed: 8/23/2021 9:01:13 AM
Signed: 8/23/2021 9:01:25 AM
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Lisa Strong
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 192.146.186.96
Sent: 8/23/2021 9:01:29 AM
Viewed: 8/23/2021 9:12:02 AM
Signed: 8/23/2021 9:13:47 AM
Electronic Record and Signature Disclosure:

Accepted: 8/23/2021 9:12:02 AM
ID: 0415b438-c038-4f21-b7e1-e4b62c4573c2
Mark Denny
[email protected]
City Manager
Security Level: Email, Account Authentication
(None) Signature Adoption: Pre-selected Style
Using IP Address: 174.67.227.114
Sent: 8/23/2021 9:13:51 AM
Viewed: 8/23/2021 9:29:21 AM
Signed: 8/23/2021 9:29:59 AM
Electronic Record and Signature Disclosure:

Accepted: 8/23/2021 9:29:21 AM
ID: 6fdb68e2-5a9b-482e-b8b4-66251164019e
Tonia Lewis
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 76.218.56.24
Signed using mobile
Sent: 8/23/2021 9:30:03 AM
Viewed: 8/23/2021 10:38:01 AM
Signed: 8/23/2021 10:38:27 AM
Electronic Record and Signature Disclosure:

Accepted: 8/23/2021 10:38:01 AM
ID: 35571679-83a5-4a8d-9478-12ee0dcd0835
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
Carbon Copy Events Status Timestamp
Kathy Kasinger
[email protected]
Records Coordinator
Security Level: Email, Account Authentication
(None)
Sent: 8/23/2021 10:38:30 AM
Electronic Record and Signature Disclosure:
1562
Carbon Copy Events Status Timestamp
Accepted: 8/23/2021 7:44:48 AM
ID: d013739f-38a6-49ca-80d8-96f99b9b16bc
Kari Ecoff
[email protected]
Security Level: Email, Account Authentication
(None)
Sent: 8/23/2021 10:38:31 AM
Viewed: 8/23/2021 10:50:32 AM
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Witness Events Signature Timestamp
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 8/12/2021 10:22:24 AM
Certified Delivered Security Checked 8/23/2021 10:38:01 AM Signing Complete Security Checked 8/23/2021 10:38:27 AM Completed Security Checked 8/23/2021 10:38:31 AM
Payment Events Status Timestamps
Electronic Record and Signature Disclosure
1563

ELECTRONIC RECORD AND SIGNATURE DISCLOSURE
From time to time, City of Fontana (we, us or Company) may be required by law to provide to you certain written notices or disclosures. Described below are the terms and conditions for providing to you such notices and disclosures electronically through your DocuSign, Inc. (DocuSign) Express user account. Please read the information below carefully and thoroughly, and if you can access this information electronically to your satisfaction and agree to these terms and conditions, please confirm your agreement by clicking the 'I agree' button at the bottom of this document.

Getting paper copies
At any time, you may request from us a paper copy of any record provided or made available electronically to you by us. For such copies, as long as you are an authorized user of the DocuSign system you will have the ability to download and print any documents we send to you through your DocuSign user account for a limited period of time (usually 30 days) after such documents are first sent to you. After such time, if you wish for us to send you paper copies of any such documents from our office to you, you will be charged a $0.00 per-page fee. You may request delivery of such paper copies from us by following the procedure described below.

Withdrawing your consent
If you decide to receive notices and disclosures from us electronically, you may at any time change your mind and tell us that thereafter you want to receive required notices and disclosures only in paper format. How you must inform us of your decision to receive future notices and disclosure in paper format and withdraw your consent to receive notices and disclosures electronically is described below.

Consequences of changing your mind
If you elect to receive required notices and disclosures only in paper format, it will slow the speed at which we can complete certain steps in transactions with you and delivering services to you because we will need first to send the required notices or disclosures to you in paper format, and then wait until we receive back from you your acknowledgment of your receipt of such paper notices or disclosures. To indicate to us that you are changing your mind, you must withdraw your consent using the DocuSign 'Withdraw Consent' form on the signing page of your DocuSign account. This will indicate to us that you have withdrawn your consent to receive required notices and disclosures electronically from us and you will no longer be able to use your DocuSign Express user account to receive required notices and consents electronically from us or to sign electronically documents from us.

All notices and disclosures will be sent to you electronically Unless you tell us otherwise in accordance with the procedures described herein, we will provide electronically to you through your DocuSign user account all required notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you during the course of our relationship with you. To reduce the chance of you inadvertently not receiving any notice or disclosure, we prefer to provide all of the required notices and disclosures to you by the same method and to the same address that you have given us. Thus, you can receive all the disclosures and notices electronically or in paper format through the paper mail delivery system. If you do not agree with this process, please let us know as described below. Please also see the paragraph immediately above that describes the consequences of your electing not to receive delivery of the notices and disclosures electronically from us.

Electronic Record and Signature Disclosure created on: 2/2/2017 6:54:36 AM Parties agreed to: John Troutman, Ricardo Sandoval, Phillip Burum, Ruben Duran, Lisa Strong, Mark Denny, Tonia Lewis, Kathy Kasinger 1564
How to contact City of Fontana:

You may contact us to let us know of your changes as to how we may contact you electronically, to request paper copies of certain information from us, and to withdraw your prior consent to receive notices and disclosures electronically as follows:

To contact us by email send messages to: [email protected] To advise City of Fontana of your new e-mail address
To let us know of a change in your e-mail address where we should send notices and disclosures electronically to you, you must send an email message to us at [email protected] and in the body of such request you must state: your previous e-mail address, your new e-mail address. We do not require any other information from you to change your email address..

In addition, you must notify DocuSign, Inc to arrange for your new email address to be reflected in your DocuSign account by following the process for changing e-mail in DocuSign.

To request paper copies from City of Fontana
To request delivery from us of paper copies of the notices and disclosures previously provided by us to you electronically, you must send us an e-mail to [email protected] and in the body of such request you must state your e-mail address, full name, US Postal address, and telephone number. We will bill you for any fees at that time, if any.

To withdraw your consent with City of Fontana
To inform us that you no longer want to receive future notices and disclosures in electronic format you may:
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1565
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16498.00170\40636159.3
4 EXHIBIT “1”

EXCHANGE AGREEMENT
EXHIBIT "2"

ASSIGNMENT AND ASSUMPTION OF AGREEMENT
1567

ASSIGNMENT AND ASSUMPTION OF AGREEMENT REGARDING LYTLE CREEK

ROAD RIGHT OF WAY EXCHANGE AND JOINT ESCROW INSTRUCTIONS This ASSIGNMENT AND ASSUMPTION OF AGREEMENT REGARDING LYTLE CREEK ROAD RIGHT OF WAY EXCHANGE AND JOINT ESCROW INSTRUCTIONS (this “Assignment”) is executed as of the 9th day of September, 2021, by and between EPC HOLDINGS 823 LLC, a Washington limited liability company, EPC HOLDINGS 944 LLC, a Washington limited liability company, ROSEVILLE INVESTMENTS, LLC, a Florida limited liability company, AMERICAN SUPERIOR LAND, LLC, a Delaware limited liability company, and RMD INLAND INVESTORS, LLC, a Delaware limited liability company (collectively, “Assignor”), and ARROYO CAP II-6, LLC, a Delaware limited liability company (“Assignee”).

Reference is hereby made to those certain Agreements of Purchase and Sale and Joint Escrow Instructions of even date herewith, by and between each entity comprising Assignor, as Seller, and Assignee, as Buyer (the “Agreements”). Capitalized terms used and not otherwise defined herein shall have the meanings respectively ascribed to such terms in the Agreements.

For good and valuable consideration, the mutual receipt and legal sufficiency of which are hereby acknowledged, Assignor and Assignee hereby agree as follows:

1. Assignor hereby assigns, transfers and delegates to Assignee, without recourse or warranty whatsoever, all of Assignor’s right, title and interest in and to that certain Agreement Regarding Lytle Creek Road Right of Way Exchange and Joint Escrow Instructions dated as of August 11, 2021, by and between Assignors and the City of Fontana, a municipal corporation (the “Exchange Agreement”).

2. Assignee hereby assumes all rights and obligations of Assignor under the Exchange Agreement arising from and after the date hereof.

3. This Assignment may be executed in any number of counterparts, each of which shall be an original, but all of which shall, together, constitute one and the same instrument. [signature page follows]

1568
1569
1570
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-1627 Agenda Date: 9/13/2022
Agenda #: L. Category: Consent Calendar
FROM:

Police Department
SUBJECT:

Police Department Monthly Information Update
RECOMMENDATION:

Accept the Police Department monthly information update for July 2022.

COUNCIL GOALS:
· Operate in a businesslike manner by creating a memorable customer experience with every interaction.
· Increase citizen involvement by informing the public about issues, program, and accomplishments.
· Concentrate on Inter-governmental relations by establishing partnerships and positive working relationships with other public agencies providing services to residents and local businesses.

DISCUSSION:

The July 2022 monthly information report has been completed. Once the report is accepted by the City Council it will be featured on the Department website.

FISCAL IMPACT:

There is no fiscal impact.

MOTION:

Approve staff recommendation.

City of Fontana Page 1 of 1 Printed on 9/7/2022
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2022 CRIME STATISTICS ARE IN NIBRS
FORMAT
• As reported to the community in October of 2021, the Fontana Police Department transitioned from Uniform Crime Reporting (UCR) format to the Department of Justice mandated National Incident Based Reporting System (NIBRS).
• There were significant reporting requirement changes, in terms of types of crimes and categories reported.
• As a result, year-to-year comparison reporting is not available due to the new format and crimes reported.
• As an example, Robbery was reported as a Crime Against Person in UCR format but transitioned to a Property Crime under NIBRS. • It is important to note nothing has changed in the manner your Fontana Police Department investigates crimes.
1572

POLICE DEPARTMENT

MONTHLY REPORT
July 2022
1573

NOTEWORTHY EVENTS
• The Fontana Police Department’s Special Operations Unit utilized the criminal citation process of enforcement of firework-related violations of the Fontana City Code (FCC). • Prior to the Fourth of July Operation, the Police Department contacted the City Attorney’s Office to collaborate and work closely on these cases.
• Prior to the 4th of July holiday, the Police Department utilized officers from the Rapid Response Team to conduct preemptive operations. Investigative operations were conducted for several weeks leading up to July 4th. • Rapid Response Team officers conducted 15 undercover purchases of illegal fireworks. 10 citations were issued and approximately 1,500 pounds of fireworks were seized (One arrest was made when a violator was found to be in possession of a loaded firearm).
• During the period of July 1st through July 4th (2022), the Fontana Police Department’s Dispatch Center received approximately 429 calls for service for fireworks.
• Last year during the same time period, there were 623 calls for service (31% decrease in calls received). • The majority of calls received were in Areas 2 and 3 (These calls made up approximately 70% of the total calls for service related to fireworks).
• During the peak hours on the 4th of July (8PM –11PM) dispatch received 189 calls for service related to fireworks. • This was down from 330 calls the previous year during the same time period (a decrease of approximately 58%).

KA1
1574
Slide 3
KA1 Kevin Anderson, 2/9/2021
1575
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CITYWIDE
• Priority 1 response time- 4:03 (Emergency calls like subject not breathing, shots fired, and other immediate risk to life/safety)
• Calls for service- 9,985
• Total Traffic Accidents- 210
• Non-Injury- 174, Injury - 36
• Total arrests- 692
• Hispanic- 452, White- 109, Black- 105, All others races- 26 • Total Group A Offenses- 788
• Crimes Against Persons- 167
• Crimes Against Property- 382
• Crimes Against Society- 239
1577
CITYWIDE • Crimes Against Person- 167
• Homicide- 0
• Sex Offenses- 11
• Assault- 154
• Kidnapping- 2
• Crimes Against Property- 382
• Robbery- 10
• Burglary- 54
• Larceny- 138
• Destruction of Property- 35
• Fraud- 45
• Possession of Stolen Property- 52
• Motor Vehicle Theft- 31
• Other Miscellaneous Property Crimes- 17
• Crimes Against Society- 239
• Drug and Paraphernalia Possession- 200
• Possession of Child Pornography- 6
• Possession of Weapons- 32
• Other Miscellaneous Crimes- 1
1578

CRIMES BY BEAT
• Police Department Beat system is NOT
geographically the same as City Council
representation Districts
• Beat 1- All area north of 210 Freeway
• Beat 2- All area south of 210 Freeway and
north of Foothill
• Beat 3- All area south of Foothill and north
of 10 Freeway
• Beat 4- All area south of the 10 Freeway
Area 1
Area 2
Area 3
Area 4
1579
BEAT 1

AREA COMMANDER IS LIEUTENANT CARLO GRANILLO
EMAIL- [email protected]
DESK- (909) 350-7716
• Total Group A Offenses- 78
• Crimes Against Persons- 12
• Crimes Against Property- 60
• Crimes Against Society- 6
1580
BEAT 2

AREA COMMANDER IS LIEUTENANT ADAM CLABAUGH
EMAIL- [email protected]
DESK- (909) 854-8004
• Total Group A Offenses- 151
• Crimes Against Persons- 45
• Crimes Against Property- 76
• Crimes Against Society- 30
1581
BEAT 3

AREA COMMANDER IS LIEUTENANT RAUL FILETO
EMAIL – [email protected]
DESK – (909) 854-8161
• Total Group A Offenses- 369
• Crimes Against Persons- 84
• Crimes Against Property- 167
• Crimes Against Society- 118
1582
Beat 4

AREA COMMANDER IS LIEUTENANT DOUG IMHOF
EMAIL – [email protected]
DESK – (909) 350-7707
• Total Group A Offenses- 136
• Crimes Against Persons- 23
• Crimes Against Property- 67
• Crimes Against Society- 46
1583

ADDITIONAL USEFUL INFORMATION
• For more information regarding specific geographical crime data, visit www.crimemapping.com and enter your zip code
• Police Department information line- (909) 350-7740
• Police Department Dispatch non-emergency line- (909) 350-7700 • Anonymous crime reporting (909) 356-TIPS to leave a recorded message
• Report Graffiti on City Property- (909) 350-GONE
• Office of the Chief- (909) 350-7702 or [email protected] 1584
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-1645 Agenda Date: 9/13/2022
Agenda #: M. Category: Consent Calendar
FROM:

Engineering
SUBJECT:

Approve the Measure I Five-Year Capital Project Needs Analysis for Fiscal Years 2023/2024 - 2027/2028
RECOMMENDATION:

Adopt Resolution No. 2022-113, adopting the Measure I Five Year Capital Project Needs Analysis (CPNA) for Fiscal Years 2023/2024 - 2027/2028.

COUNCIL GOALS:
· Invest in the City’s infrastructure (streets, sewers, parks, etc.) by providing for the development of new infrastructure.
· Invest in the City’s infrastructure (streets, sewers, parks, etc.) by focusing on relief of traffic congestion.
· Invest in the City’s infrastructure (streets, sewers, parks, etc.) by utilizing Measure-I Funds wisely.

DISCUSSION:

San Bernardino County Transportation Authority (SBCTA) is responsible for administering the San Bernardino County Measure I Program in which projects receive funding through the Local PassThrough Program or Major Streets Program. The City of Fontana receives and utilizes funds through the two Measure I Programs for transportation-related projects.

The Capital Project Needs Analysis (CPNA) List identifies the projects which will be funded by the Major Street Program with a five-year projection. Annually, SBCTA requires local jurisdictions to complete an update of these five-year programs identifying the projects to be funded. Projects include major roadway improvements such as Sierra Avenue Widening (Foothill Boulevard to Baseline Avenue), Foothill Boulevard Widening (Hemlock to Almeria Avenue), and Etiwanda Avenue/Slover Intersection Widening. The use of Major Street Program funds in the Measure I Program requires funds from the local Development Impact Fee to match at a ratio of 32.1%.

The projects named in the CPNA list are identified independently from the Local Pass-Through Program List referred to as the Five-Year Capital Improvement Program (CIP) List approved by the City Council on July 26, 2022.

FISCAL IMPACT:

City of Fontana Page 1 of 2 Printed on 9/7/2022
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File #: 21-1645 Agenda Date: 9/13/2022
Agenda #: M. Category: Consent Calendar
Under the Measure, I Program there are two areas of funding for projects; the Local Pass-Through Program identified as Fund 246 and the Major Streets Program identified as Fund 245. The Local Pass-Through Program was approved by the City Council on July 26, 2022.

The Measure I Major Streets Program are reimbursed by SBCTA as work is completed. The required

32.1% match by the City will ultimately be funded by Development Impact Fees. The project budgets for the projects listed on the CPNA will be established as each individual project moves forward providing full funding detail.

MOTION:

Approve staff recommendation.

City of Fontana Page 2 of 2 Printed on 9/7/2022
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RESOLUTION NO. 2022-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FONTANA

ADOPTING THE MEASURE I FIVE-YEAR CAPITAL PROJECT NEEDS
ANALYSIS FOR FISCAL YEARS 2023/2024-2027/2028.

WHEREAS, San Bernardino County voters approved passage of Measure I in November 2004, authorizing the San Bernardino County Transportation Authority to impose a one-half of one percent retail transactions and use tax applicable in the incorporated and unincorporated territory of the County of San Bernardino; and
WHEREAS, revenue from the tax can only be used for transportation improvement and traffic management programs authorized in the Expenditure Plans set forth in Ordinance No. 04-01 of the Authority; and WHEREAS, the Strategic Plan requires each local jurisdiction applying for revenue from the Local Street Program to annually adopt and update a FiveYear Capital Project Needs Analysis; and WHEREAS, California Public Utilities Code 190300 and Ordinance No. 04- 01 require each local jurisdiction to maintain General Fund expenditures for transportation-related construction and maintenance activities at the required Maintenance of Effort base year level in each fiscal year of the adopted FiveYear Capital Improvement Plan, which for the City of Fontana is $1,901,831; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Fontana hereby adopts the Exhibit “A” Five-Year Capital Project Needs Analysis for Fiscal Years 2023/2024 through 2027/2028.
1587
APPROVED AND ADOPTED this 13th day of September 2022.

READ AND APPROVED AS TO LEGAL FORM:
____________________________________
City Attorney
I, Germaine McClellan Key, City Clerk and Ex-Officio Clerk of the City of Fontana, California, do hereby certify that the foregoing Resolution is the actual Resolution duly and regularly adopted by the City Council at a regular meeting of said City Council on the 13th day of September 2022, by the following to-wit:

AYES:

NOES:

ABSENT:

City Clerk of the City of Fontana
Mayor of the City of Fontana
ATTEST:

City Clerk
1588
Nexus Project Cost $ 10,759,000
Dev. Loan? No
5-Year Advance? No
Public Share: 67.9%
Dev. Share: 32.10%
Project Information Phase Funding PRIOR* FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FUTURE PA&ED
Total Cost: $0.00
Fund Type: MSI Arterial $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
Other: ______ $ - $ - $ - $ - $ - $ - $ -
PS&E
Total Cost: $0.00
Fund Type: MSI Arterial $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
Other: ______ $ - $ - $ - $ - $ - $ - $ -
ROW
Total Cost: $195,367.00
Fund Type: MSI Arterial $ 132,654.00 $ - $ - $ - $ - $ - $ - DEV FEE $ 62,713.00 $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
Other: ______ $ - $ - $ - $ - $ - $ - $ -
CONST
Total Cost: $0.00
Fund Type: MSI Arterial $ - $ - $ - $ - $ - $ - $ -
DEV FEE $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
Other: ______ $ - $ - $ - $ - $ - $ - $ -
*Prior should identify any expenses incurred in prior years that have not yet been reimbursed by SBCTA including anticipated FY 2022/2023 expenses.

Capital Project Needs Analysis
City of Fontana
Valley Arterial Sub-Program
Widen Sierra Ave. from Summit
Ave. to I-15 (36003378)
Current Total Project Cost
Estimate:
$195,367.00
Total Measure I Request:
$132,654.00
(Summation of Measure I)
Comments:
2024-2028 CPNA Template v3 - FINAL.xlsx - Proj 1
1589
Nexus Project Cost $ 12,031,000
Dev. Loan? No
5-Year Advance? No
Public Share: 67.9%
Dev. Share: 32.10%
Project Information Phase Funding PRIOR* FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FUTURE PA&ED
Total Cost: $0.00
Fund Type: MSI Arterial $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
Other: ______ $ - $ - $ - $ - $ - $ - $ -
PS&E
Total Cost: $0.00
Fund Type: MSI Arterial $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
Other: ______ $ - $ - $ - $ - $ - $ - $ -
ROW
Total Cost: $1,326,367.00
Fund Type: MSI Arterial $ 900,603.00 $ - $ - $ - $ - $ - $ - DEV FEE $ 425,764.00 $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
Other: ______ $ - $ - $ - $ - $ - $ - $ -
CONST
Total Cost: $13,796,098.00
Fund Type: MSI Arterial $ 9,367,550.00 $ - $ - $ - $ - $ - $ - DEV FEE $ 4,428,548.00 $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
Other: ______ $ - $ - $ - $ - $ - $ - $ -
Capital Project Needs Analysis
City of Fontana
Valley Arterial Sub-Program
Widen Sierra Ave from Foothill
Blvd to Baseline Ave. (36003281)
Current Total Project Cost
Estimate:
$15,122,464.00
Total Measure I Request:
$10,268,153.00
(Summation of Measure I)
*Prior should identify any expenses incurred in prior years that have not yet been reimbursed by SBCTA including anticipated FY 2022/2023 expenses.

Comments:
2024-2028 CPNA Template v3 - FINAL.xlsx - Proj 2
1590
Nexus Project Cost $ 13,826,000
Dev. Loan? No
5-Year Advance? No
Public Share: 67.9%
Dev. Share: 32.10%
Project Information Phase Funding PRIOR* FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FUTURE PA&ED
Total Cost: $458,072.00
Fund Type: MSI Arterial $ 311,031.00 $ - $ - $ - $ - $ - $ - DEV FEE $ 147,041.00 $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
Other: ______ $ - $ - $ - $ - $ - $ - $ -
PS&E
Total Cost: $1,130,000.00
Fund Type: MSI Arterial $ 767,270.00 $ - $ - $ - $ - $ - $ - DEV FEE $ 362,730.00 $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
Other: ______ $ - $ - $ - $ - $ - $ - $ -
ROW
Total Cost: $0.00
Fund Type: MSI Arterial $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
Other: ______ $ - $ - $ - $ - $ - $ - $ -
CONST
Total Cost: $0.00
Fund Type: MSI Arterial $ - $ - $ - $ - $ - $ - $ -
DEV FEE $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
Other: ______ $ - $ - $ - $ - $ - $ - $ -
Capital Project Needs Analysis
City of Fontana
Valley Arterial Sub-Program
Widen Foothill Blvd from Hemlock
to Almeria. (36003333)
Current Total Project Cost
Estimate:
$1,588,072.00
Total Measure I Request:
$1,078,301.00
(Summation of Measure I)
*Prior should identify any expenses incurred in prior years that have not yet been reimbursed by SBCTA including anticipated FY 2022/2023 expenses.

Comments:
2024-2028 CPNA Template v3 - FINAL.xlsx - Proj 3
1591
Nexus Project Cost $ 8,069,000
Dev. Loan? No
5-Year Advance? No
Public Share: 67.9%
Dev. Share: 32.10%
Project Information Phase Funding PRIOR* FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FUTURE PA&ED
Total Cost: $0.00
Fund Type: MSI Arterial $ - $ - $ - $ - $ - $ - $ -
DEV FEE $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
Other: ______ $ - $ - $ - $ - $ - $ - $ -
PS&E
Total Cost: $0.00
Fund Type: MSI Arterial $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
Other: ______ $ - $ - $ - $ - $ - $ - $ -
ROW
Total Cost: $441,227.00
Fund Type: MSI Arterial $ 299,593.00 $ - $ - $ - $ - $ - $ - DEV FEE $ 141,634.00 $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
Other: ______ $ - $ - $ - $ - $ - $ - $ -
CONST
Total Cost: $10,888,071.00
Fund Type: MSI Arterial $ 5,256,598.00 $ - $ - $ - $ - $ - $ - DEV FEE $ 2,485,077.00 $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
- Select Fund - $ - $ - $ - $ - $ - $ - $ -
Other: ______ $ 3,146,396.00 $ - $ - $ - $ - $ - $ -
$11,329,298.00
Total Measure I Request:
$5,556,191.00
Capital Project Needs Analysis
City of Fontana
Valley Arterial Sub-Program
Widen Slover Ave. from Etiwanda
Ave to 800' e/o Etiwanda from 2
to 4 lanes(36003350)
Current Total Project Cost
Estimate:
*Prior should identify any expenses incurred in prior years that have not yet been reimbursed by SBCTA including anticipated FY 2022/2023 expenses.
(Summation of Measure I)
Comments:
2024-2028 CPNA Template v3 - FINAL.xlsx - Proj 4
1592
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-1646 Agenda Date: 9/13/2022
Agenda #: N. Category: Consent Calendar
FROM:

Engineering
SUBJECT:

Approval of Final Map for Tract No. 20382
RECOMMENDATION:

Approve the Final Map for Tract No. 20382 located south of Foothill Boulevard and west of Banana Avenue; accept easements; and authorize the City Manager to enter into a Subdivision Agreement with the subdivider.

COUNCIL GOALS:
· Invest in the City’s infrastructure (streets, sewers, parks, etc.) by maintaining and improving the city's existing infrastructure.
· Invest in the City’s infrastructure (streets, sewers, parks, etc.) by providing for the development of new infrastructure.

DISCUSSION:

Tract No. 20382 is located south of Foothill Boulevard and west of Banana Avenue. The subdivision consists of 72 condominium units.

The Tentative Tract Map (TTM21-000003) was conditionally approved by the Planning Commission on September 21, 2021. All conditions precedent to submitting the final map have been completed by the applicant. The subdivider, Inland Senior Development, LLC, has complied with the Conditions of Approval and dedicated the required streets and easements as a part of the project. The tract map has been reviewed by the City Engineer and found to be substantially correct.

In addition, an authorization is requested for the City Manager to enter into a Subdivision Agreement with the subdivider to guarantee the completion of required infrastructure in accordance with the Subdivision Map Act. This map is now being brought to City Council for final approval.

FISCAL IMPACT:

This action will only approve the tract map for recordation and authorize permits for the construction of the development, therefore there is no fiscal impact to City resources at this time.

MOTION:

Approve staff recommendation.

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VICINITY MAP CITY OF FONTANA

ENGINEERING DEPARTMENT
1594

Revised – RP -06/23/2022

SUBDIVISION IMPROVEMENT AGREEMENT
Tract Map No.:

THIS AGREEMENT is between the City of Fontana, a municipal corporation, County of San Bernardino, State of California ("City") and
("Subdivider"):

WHEREAS, the application for tentative Tract Map No. , was conditionally approved on ; and
WHEREAS, Subdivider is the owner of that certain parcel of land defined by the Final Map and Subdivider proposes to do and perform certain work of improvement thereon as set forth in this agreement; and
WHEREAS, City desires to assure that the proposed improvements will be done in a good workmanlike manner and in accordance with the laws and standards now in force and effect in the City, the terms and conditions of which are incorporated herein by reference; and WHEREAS, Subdivider declares acknowledgement the pertinent regulations contained in the City Code and in the Subdivision Map Act (Government Code Sections 66410 to 66500) and agrees to comply therewith; and
WHEREAS, a Final Map of the subdivision, prepared in accordance with the City's Subdivision Ordinance, has been filed by Subdivider with City for approval by the City Council; NOW THEREFORE, in consideration of the approval and acceptance of the Final Map by the City Council and the acceptance of easements therein offered for dedication for street, utility, and other public purposes and the covenants herein contained, the parties hereto mutually covenant and agree as follows:

1. General requirements:

Subdivider shall, at its own cost and expense, provide all required tests, design work, equipment, materials and labor in order to complete all of the improvements as associated with the requirements per the approved project or to the satisfaction of the City Engineer of the City of Fontana.

All required improvements have an estimated cost of construction totaling ____________________________________________________________ ($ ) as shown on Exhibit "A".

Improvements are shown on approved plans on file with City Engineer.

The estimated cost of construction set forth in Exhibit “A” is for estimation purposes only, and for calculation of the amount of securities 20382Inland Senior Development, LLC 20382 September 21st, 2021 Forty-Nine Thousand Five Hundred Thirty-Six Dollars and Sixty-Three Cents 49,536.63 1599
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required pursuant to the provisions of section (2), below. Subdivider’s obligation to complete the improvements, or any portion of them, is not limited in any way by the estimated cost of construction, and the obligation of Subdivider’s surety in connection with the securities required pursuant to the provisions of section (2), below.

2. Security:

Subdivider shall, at all times, guarantee its performance of this agreement by furnishing to City and maintaining good and sufficient security as required by the State Subdivision Map Act on forms approved by City for the purposes and in the amounts as follows:
a. To ensure a faithful performance of this agreement in regard to the improvements in the amount of 100% of the estimated cost of construction of the improvements; and
b. To secure payment to any contractor, sub-contractor, persons renting equipment or furnishing labor or materials for the improvements required to be constructed or installed pursuant to this agreement in the additional amount of 100% of the estimated cost of construction of the improvements; and
c. To guarantee or warranty the work done pursuant to this agreement for a period of one (1) year following acceptance thereof by City Council of the City of Fontana against any defective work or labor done or defective materials furnished in the amount of 20% of the estimated cost of construction of the improvements; and
d. To warranty the setting of required subdivision monuments within oneyear following recordation of the Final Map in the amount of 100% of the estimated cost of setting subdivision monuments as shown in Exhibit "A". e. To guarantee the landscape maintenance of all landscape improvements for a period of one year (1) year following acceptance of thereof by the City.

The securities required by this agreement shall be kept on file with the City Clerk.

The terms of the security documents required by this agreement are hereby incorporated in this agreement by reference and copies attached hereto.

The security, which guarantees performance, can be released upon acceptance of the improvements by the City Council. The security which guarantees payment to contractor, sub-contractors and to persons furnishing labor, materials or equipment will be released 6 months after acceptance of the improvements by the 1600
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City Council, less the total of all claims to which the City has been given proper notice.

Securities may be released upon the final completion and acceptance of the work subject to the provisions herein. The City Council, in its absolute discretion, may release a portion of the security given for faithful performance of the improvement work as the improvement progresses upon application thereof by the Subdivider.

3. Time of Completion:

All of the required improvements shall be completed within 24 months from the effective date of this agreement. If the work is not completed within the specified time period because of acts of God, the public enemy, the City, or because of fire, flood, epidemic, quarantine restrictions, strikes or freight embargoes, the Subdivider shall be entitled to an extension beyond the specified time period for a period equal to the length of such delay within ten days from the beginning of such delay.

In addition to the extension for the reasons referenced in the foregoing paragraph, Subdivider may submit a written request, Exhibit “B”, for a discretionary extension of the time for completion of the improvements to the City Engineer.

The City Engineer may grant or reject such extension, in whole or in part or with conditions, in his sole discretion. If an extension of time is granted it shall in no way affect the validity of this contract or release the surety on the securities referenced herein.

In the event that Subdivider fails to complete the improvements within the required period or any approved extension, the City may complete the work and shall be entitled to recover the full cost and expenses thereof from Subdivider, or his surety as herein provided. If City pursues completion of the improvement work, it may require Subdivider, or his surety, to pay the City in advance, sufficient monies to cover the City's cost in completing construction of the improvements.

Any limitations period provided by law related to breach of this Agreement or the terms thereof shall not commence running until Subdivider, or Subdivider’s surety pursuant to Section 2 of this Agreement, has provided the City Engineer with written notice of Subdivider’s intent to abandon or otherwise not complete the improvements.

4. Effective Date of Agreement:

This Agreement shall not become effective unless and until the Subdivision Map has been approved by the City Council of the City of Fontana and also accepted 1601
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the Final Map for recordation by the County Recorder of the County of San Bernardino.

5. Utility Deposits - Statements:

Prior to the commencement of any work to be performed within the area delineated on the Final Map, the Subdivider must file a written statement with the City Clerk and the City Engineer, signed by the Subdivider, and each public utility involved, to the effect that Subdivider has made all deposits legally required by such public utility for the connection/extension of any and all public serving utilities to be provided to or within the subdivision.

6. Permits - Compliance with Law:

Subdivider shall, at Subdivider's expense, obtain all necessary permits and licenses, pay all charges, fees and taxes, and give all necessary and incidental notices to the due and lawful prosecution of the work.

7. Definition and Ownership of Improvements:

The term "improvements" means: grading, paving, curbs and gutters, pathways, storm drains, sanitary sewers, utilities, drainage facilities, traffic controls, landscaping, street lights, and all other required facilities as shown in detail upon plans, profiles and specifications which have been prepared or are now in final preparation by engineers acting for Subdivider subject to approval by the City Engineer of the City of Fontana. No work on the improvements shall be commenced until plans and/or profiles therefore have been submitted, approved and permitted by the City Engineer. All required public improvements constructed or installed pursuant to this Agreement shall become the sole exclusive property of the City, without payment therefore, upon acceptance of the improvements by the City Council.

8. Obligations of Subdivider:

Notwithstanding the fact that Subdivider's plans and specifications, completion of the work, and other acts are subject to approval of the City, it is understood and agreed that any approval by the City thereof shall in no way relieve Subdivider of satisfactorily performing all work on the related obligations hereunder. The construction shall be done strictly in accordance with the plans and specifications prepared by Subdivider or its engineer, and as approved by the City as being consistent with the City Code and Standards. Subdivider warrants that its plans and specifications conform as a minimum to all City codes and standards and that they are adequate to accomplish the work in a good workmanlike manner and in accordance with responsible construction practices.
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9. Superintendence by Subdivider:

Subdivider shall personally supervise all work involved in the improvements, or shall designate a competent foreman or superintendent, satisfactory to the City Engineer, to supervise the work at all times during progress, with authority to act for Subdivider. In the event satisfactory superintendence is not being exercised by the Subdivider, the City Engineer may order suspension of all work within the subdivision until the deficiency is adequately corrected.

10. Repair and Replacements:

Subdivider shall replace, or have replaced, or repair, or have repaired, as the case may be, or pay to the owner the entire cost of replacement or repairs, for all survey monuments or for 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 by the City or by any public or private corporation, or by any person whomsoever or by combination of such owners. Any such repair or replacement shall be completed in a reasonable manner and subject to the approval of the City Engineer and affected property owner.

11. Inspection by City:

Subdivider shall at all times maintain proper facilities and provide safe access for inspection by City to all parts of the work and to the shops where the work is in preparation. The cost of inspections shall be paid by the Subdivider.

12. Approval by City Engineer.

All required improvements shall be constructed under the inspection of and subject to approval of the City Engineer. Therefore, it is mutually agreed by the parties hereto that the City Engineer shall have the right to reject any or all of the work to be performed under this contract if such work does not conform to the plans and specifications set forth herein or the City's Codes and standards. Any damage to the improvements (existing or new) that occurs during the course of work performed under this Agreement shall be repaired or replaced, by the Subdivider, to the satisfaction of the City Engineer before the final acceptance of completed work and release of security.

13. Liability for Performance Injury or Damage:

Neither the City nor any of its officers or agents shall be liable to Subdivider or its contractors for any error or omission arising out of or in connection with any work to be performed under this contract. Additionally, 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 1603
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cause whatsoever in, on, or about the subdivision of said land covered by this Agreement, or any part thereof.

14. Indemnification and Release:

Prior to the commencement of any work pursuant to this contract, Subdivider's contractors shall furnish to City satisfactory evidence of an insurance policy written upon a form and by a company (which meets with the approval of City) insuring 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 and claim arising as a result thereof. Minimum liability and property damage insurance shall not be less than $250,000 for all damages arising out of bodily injury to a death of one person and not less than $1,000,000 for all damages arising out of bodily injuries to or death of more than one person in any occurrence; and not less than $250,000 for all damages and/or destruction of property in any one occurrence and not less than $500,000 for all damages and/or destruction of property during the policy period.

Such policy shall be in favor of Subdivider or its contractors and of the City, its officers, agents, and employees and shall be maintained in full force and effect during the life of this contract. The policy shall state by its terms and by an endorsement that it shall not be cancelled until City shall have had at least ninety (90) days' notice in writing of such cancellation.

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 non-performance of any of or all work to be done in 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, the Subdivider's agents, employees, and sub-contractors, while engaged in the performance if the work.

15. Liability of Subdivider:

The Subdivider agrees that the use for any purpose and by any person of any and all of the streets, easements and improvements herein specified shall be at the sole and exclusive risk of the Subdivider at all times prior to final acceptance by the City of the completed street and other improvements thereon and therein; provided that acceptance by the City shall in no way eliminate or lessen any of Subdivider's obligations or undertakings contained in this Agreement. The issuance of any occupancy permits (if granted) by the City for buildings located within the subdivision shall not be construed in any manner to constitute an 1604
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acceptance and approval of any or all of the required improvements in said subdivision.

16. Relationship of Contractors:

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

17. Repair or Reconstruction of Defective Work:

If, within a period of up to one year after City Council acceptance of the improvement work performed under this Agreement, any of the improvements for work done under this Agreement fails to fulfill any of the requirements of this Agreement, or the specifications referred to herein, Subdivider shall without delay and without any cost to the City (upon receipt of written notice from the City), repair or replace or reconstruct any defective of otherwise unsatisfactory part or parts of the work or structure. Should Subdivider fail to act promptly or in accordance with this requirement, or should the exigencies of the case require repairs or replacements to be made before Subdivider can be notified, City may, at its own option, make the necessary repairs or replacements or perform the necessary work and offset that amount against any security pledged by Subdivider for faithful performance, labor and materials, or warranty obligations under this agreement.

18. Warranty:

Without limiting the foregoing, Subdivider warrants and guarantees: materials used and workmanship performed on said work for a period of one (1) year after completion and acceptance thereof by the City, and the setting of all required Final Map monuments.

19. Assignment:

This agreement shall not be assignable by Subdivider without written consent of City.
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IN WITNESS WHEREOF, this agreement shall for all purposes be deemed an original thereof, having been duly executed by the Subdivider herein named on the day of , 20 being duly signed by its undersigned representative(s) pursuant to authority of its governing body.

SUBDIVIDER CITY OF FONTANA
By: By:

Matthew C. Ballantyne
City Manager
By: Attest:

Germaine McClellan Key
City Clerk
APPROVED AS TO FORM:

By:

Ruben Duran
City Attorney
APPROVED AS TO CONTENT:

By:

Michael Thornton, P.E., P.L.S
Interim City Engineer
Attachments: (1) Exhibit "A" – Cost Estimate
(2) Exhibit "B" – Time Extension
(3) Securities
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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-1653 Agenda Date: 9/13/2022
Agenda #: O. Category: Consent Calendar
FROM:

Engineering
SUBJECT:

Award a Construction Contract for the Citrus Avenue at Chase Road Traffic Signal Project SB-08-DE22 RECOMMENDATION:

1. Award and authorize the City Manager to execute a construction contract with California Professional Engineering for the construction of the Citrus Avenue at Chase Road Traffic Signal Project in the amount of $713,980 and authorize a 10% contingency in the amount of $71,398 (Bid No. SB-08-DE-22).

2. Approve and authorize the City Manager to execute any and all utility agreements, utility easements, and subsequent agreements on behalf of the City of Fontana for the Citrus Avenue at Chase Road Traffic Signal Project.

COUNCIL GOALS:
· Invest in the City’s infrastructure (streets, sewers, parks, etc.) by maintaining and improving the city's existing infrastructure.
· Invest in the City’s infrastructure (streets, sewers, parks, etc.) by providing for the development of new infrastructure.
· Invest in the City’s infrastructure (streets, sewers, parks, etc.) by focusing on relief of traffic congestion.
· Invest in the City’s infrastructure (streets, sewers, parks, etc.) by utilizing Measure-I Funds wisely.

DISCUSSION:

This project is a component of a comprehensive transportation improvement and traffic management program. Engineering staff regularly conducts studies of intersections throughout the City to determine the need for new traffic signals to aid in circulation and ease congestion.

The subject traffic signal is needed to improve Fire Station No. 73 access to Citrus Avenue and to mitigate traffic congestion. The new traffic signal will be equipped with an emergency vehicle preemption system to control the intersections as emergency vehicles exit the station.

This intersection is identified on the City’s Traffic Signal Priority List. Implementation of a traffic signal at this intersection will improve traffic flow and enhance fire department access to Citrus City of Fontana Page 1 of 2 Printed on 9/7/2022
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signal at this intersection will improve traffic flow and enhance fire department access to Citrus Avenue and reduce response times. The new traffic signal will be integrated into the existing interconnected signals with coordinated timing along the Citrus Avenue corridor. The project also includes pavement resurfacing, as well as improvements to the roadway signing and striping.

On August 9, 2022, at 2:00 p.m., bids for this contract were opened. A total of ten (10) bids were received ranging from $713,980.00 to $1,008,225.00. California Professional Engineering submitted the apparent lowest bid in the amount of $713,980.00. The Engineer's estimate is $828,360.

After reviewing the proposed bid documents and performing the reference checks, Engineering staff has determined California Professional Engineering to be the lowest responsible and responsive bidder.

FISCAL IMPACT:

The project is possible through the current Local Measure I Program. The project is funded in Fiscal Year 2022-2023 in Local Measure I Fund No. 246 and in Fire Capital Fund No. 610 in Project No. 3384 Citrus Avenue at Chase Road Traffic Signal Project.

MOTION:

Approve staff recommendation.

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PROJECT LOCATION

CITRUS AVE AND CHASE AVE TRAFFIC SIGNAL PROJECT

CITRUS AVENUE AT CHASE ROAD TRAFFIC SIGNAL PROJECT
SB-080-DE-22
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Bid Results
Citrus Avenue at Chase Road Traffic Signal Project
SB-08-DE-22

1. California Professional Engineering $713,980.00
La Puente, CA

2. Elecnor Belco Electric, Inc. $723,494.00
Chino, CA

3. Crosstown Electrical & Data Inc. $743,338.00
Irwindale, CA

4. KDC, Inc. $750,000.00
Los Alamitos, CA

5. Roadway Engineering & Construction Corp. $763,980.00 Fontana, CA

6. Asplundh Construction, LLC $787,817.00
Anaheim, CA

7. Baker Electric Inc. $792,682.00
Escondido, CA

8. International Line Builders, Inc. $828,500.00
Corona, CA

9. DBX, Inc. $937,332.00
Temecula, CA

10. Comet Electric $1,008,225.00
Chatsworth, CA
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CITRUS AVENUE AT CHASE ROAD TRAFFIC SIGNAL PROJECT (SB-08-DE-22), bidding on 08/09/2022 2:00 PM (PDT)

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CITRUS AVENUE AT CHASE ROAD TRAFFIC SIGNAL PROJECT (SB-08-DE-22), bidding on 08/09/2022 2:00 PM (PDT)

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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-1669 Agenda Date: 9/13/2022
Agenda #: P. Category: Consent Calendar
FROM:

Police Department
SUBJECT:

Approve Federal Bureau of Investigation Inland Violent Crime Suppression Task Force Cost Reimbursement Agreement
RECOMMENDATION:

1. Approve and authorize the Chief of Police to execute a State and Local Task Force Agreement between the Federal Bureau of Investigation (FBI) Inland Violent Crime Suppression Task Force (IVCSTF) and the Fontana Police Department.

2. Approve and authorize the Chief of Police to renew said contract annually as long as it remains in the best interest of the City of Fontana.

3. Increase revenue and expenditure budgets (10140231) in the amount of $3,229.

COUNCIL GOALS:
· Improve public safety by increasing operational efficiency, visibility and availability. · Concentrate on Inter-governmental relations by establishing partnerships and positive working relationships with other public agencies providing services to residents and local businesses.

DISCUSSION:

The City of Fontana Police Department often works cooperatively with other agencies sharing information and assisting with operations to derive the maximum benefit to the City from Officers’ efforts.

This agreement will assign one Fontana Police Officer to the Task Force. The FBI will provide reimbursement for overtime of the assigned officer based on the Federal fiscal year (October 1 - September 30). The Officer will work with the FBI Special Agents to accomplish the Task Force objectives. Some of those objectives are:
· Gather and report intelligence data relating to violent crime · Conduct undercover operations where appropriate and engage in other traditional methods of investigation in order that the Task Force’s activities will result in effective prosecution before the courts of the United States and the State of California Staff recommends approving this agreement and renewing it annually as it will benefit the city in City of Fontana Page 1 of 2 Printed on 9/7/2022
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File #: 21-1669 Agenda Date: 9/13/2022
Agenda #: P. Category: Consent Calendar
aiding in the reduction of violent crimes.

FISCAL IMPACT:

Increase revenue budget 10140231.6483 in the amount of $3,229 and appropriate $3,229 to expenditure budget 10140231.7113 for the period ending September 30, 2022. Budget forms will be submitted to the Budget Office with the First Quarter Budget Report.

MOTION:

Accept staff recommendation.

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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-1670 Agenda Date: 9/13/2022
Agenda #: Q. Category: Consent Calendar
FROM:

Police Department
SUBJECT:

Approve San Bernardino County District Attorney Victim Advocacy Services Agreement RECOMMENDATION:

1. Approve the Contract/Agreement between the San Bernardino County District Attorney’s Office (Bureau of Victim Services) and the Fontana Police Department to provide Victim Advocacy Services to improve the health, welfare, and quality of life of victims of crime including children.

2. Authorize the City Manager and the Chief of Police or his assigned designee to sign the Agreement, all related documents, and any amendments to continue this cooperative agreement as long as it is in the best interest of the City of Fontana.

COUNCIL GOALS:
· Improve public safety by increasing operational efficiency, visibility and availability. · Concentrate on Inter-governmental relations by establishing partnerships and positive working relationships with other public agencies providing services to residents and local businesses.

DISCUSSION:

The Fontana Police Department’s role in this agreement is to provide adequate office space, Internet connectivity, the ability to print to a duplex-capable printer, equipment, supplies, and office assistance for each Advocate.

Assembly Bill 109 which establishes the California Public Safety Realignment Act of 2011, permits a San Bernardino County Victim Advocate (Advocate) to be stationed in a non-County agency or organization in order to provide Victim Advocacy Services to improve the health, welfare, and quality of life of victims of crime, including children.

The Contract is effective as of August 23, 2022, and expires June 30, 2023, in accordance with the end of the fiscal year. The Contract may be terminated earlier. If AB109 funding is renewed in successive years, the contract term will change to match the funding period of the given year and be renewed upon agreement and signature by FPD and the San Bernardino County.

Staff recommends approving this Agreement as it will assist the DA’s office, the Police Department, and the community by maximizing our resources to provide assistance to individuals who have been victimized.

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File #: 21-1670 Agenda Date: 9/13/2022
Agenda #: Q. Category: Consent Calendar
FISCAL IMPACT:

There is no fiscal impact with the approval of this agreement.

MOTION:

Approve staff recommendations.

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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-1671 Agenda Date: 9/13/2022
Agenda #: R. Category: Consent Calendar
FROM:

Police Department
SUBJECT:

Approve Crossing Guard Service Agreement between Fontana Unified School District, Etiwanda School District, and the City of Fontana
RECOMMENDATION:

1. Approve Amendment No. 1 of the Crossing Guard Services Agreement with Fontana Unified School District (FUSD), Etiwanda School District (ESD), and the City of Fontana (COF) for a oneyear (1) term renewing year two (2) of the contract at the new rate of $27.35.

2. Approve a recurring appropriation from General Fund #101 to 10140352.8130 to provide for the annual contract increase over the prior year in the amount of $150,260.00.

3. Approve a one-time appropriation in the amount of $6,293.70 which is 50% of the cost for one additional site serviced during the 2021/2022 school year (540 hours at $23.31 per hour = $12,587.40).

COUNCIL GOALS:
· Improve public safety by increasing operational efficiency, visibility and availability. · Concentrate on Inter-governmental relations by establishing partnerships and positive working relationships with other public agencies providing services to residents and local businesses.

DISCUSSION:

Fontana Unified School District administers the crossing guard services for both the City of Fontana and the Etiwanda School District. The contract provider for these services via Fontana Unified School District is All City Management Services who employs and provides the school crossing guards.

Fontana Unified School District submits invoices to the City and ESD on a quarterly basis for the services rendered in the preceding quarter. During the 2021/2022 school year one additional site was serviced. A one-time appropriation is being requested for $6,293.70 which is 50% (of the 540 service hours at $23.31 per hour) for the additional site.

Current pricing is based upon 46,824 billing hours per school year which includes covering 75 locations between the 2 school districts. The new contract price for year two is $1,279,358.52. Per the contract the City agrees to pay fifty percent (50% not to exceed $639,679.26) of the cost.

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File #: 21-1671 Agenda Date: 9/13/2022
Agenda #: R. Category: Consent Calendar
Staff recommends accepting the contract so the school districts can continue to provide crossing guard services to the children in our community that attend FUSD and ESD schools.

FISCAL IMPACT:

Staff is requesting annual recurring funds in the amount of $150,260.00 be appropriated from General Fund #101 to 10140352.8130 to cover additional crossing guard services.

Additional one-time funds are being requested to pay invoice submitted following the 2021/2022 fiscal year in the amount of $6,293.70 to pay for the additional school site serviced in 2021/2022.

Appropriate paperwork will be submitted during the First Quarter Budget Review.

MOTION:

Approve staff recommendation.

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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-1673 Agenda Date: 9/13/2022
Agenda #: S. Category: Consent Calendar
FROM:

Planning Department
SUBJECT:

Purchase and Sale Agreement - 8436 Sierra Avenue
RECOMMENDATION:

1. Approve a Purchase & Sale Agreement for the sale of 8436 Sierra Avenue, APN # 01911311, located at the southwest corner of Sierra Avenue and Spring Street in Downtown Fontana.

2. Authorize the City Manager to execute any documents necessary or appropriate to effectuate said approvals and/or agreement.

COUNCIL GOALS:
· Promote economic development by concentrating on job creation. · Promote economic development by pursuing business attraction, retention, and expansion.

DISCUSSION:

The City of Fontana will be undertaking an expansive and comprehensive revitalization of Downtown Fontana. The specific geographic area to be targeted includes Upland Ave to the North, Merrill Ave to the South, Mango Ave to the East and Juniper Ave to the West. In an effort to facilitate the implementation of this revitalization, the City will be assisting with the acquisition and assemblage of various properties in Downtown Fontana.

The property at 8436 Sierra Avenue recently became available for acquisition in Downtown Fontana.

This property includes a 8,100 square foot multi-tenant building on a 8,250 square foot lot.

The City and the sellers brokers have reached agreement on a Purchase Agreement with the following proposed deal-points;
· The City of Fontana would acquire the property (8436 Sierra Avenue) for the price of $1,544,600
· The City of Fontana and sellers Song K. Yun and Abbie L Bostrum - Yun will equally split any/all escrow and title fees as appropriate.
· The City will have sixty days to perform any due diligence on the subject property, including completion of an environmental assessment and title review. · Following the due-diligence period the City will have a fifteen-day financing period to complete City of Fontana Page 1 of 2 Printed on 9/7/2022
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all wire-transfers and documents necessary for the close of escrow. · The property and building located at 8436 Sierra Avenue is currently occupied and in use by multiple tenants. All leases will be assigned to City of Fontana upon close of escrow. · Tenants will be required to vacate the building and property, including the timely removal of any furniture, equipment and/or supplies within 60 days of delivery of notice to vacate by city.

Approval of the Purchase Agreement and sale of 8436 Sierra Avenue will assist with the assemblage of various properties located in Downtown Fontana. That assemblage will facilitate the City’s vision and plans to dramatically revitalize the Downtown Community.

FISCAL IMPACT:

Monies are available for the sale of these properties, totaling approximately $1.55M - in Fund 601 - Capital Reinvestment. Appropriate paperwork will be submitted to the Budget Office with the First Quarter Budget Status Report.

MOTION:

Approve staff recommendation.

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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-1674 Agenda Date: 9/13/2022
Agenda #: T. Category: Consent Calendar
FROM:

Police Department
SUBJECT:

Approve the Fontana Unified School District Police (FUSP) and the City of Fontana - Concurrent Jurisdiction
RECOMMENDATION:

1. Approve a Memorandum of Understanding (MOU) between the Fontana Unified School District (FUSD) and the City of Fontana to have their respective Police Departments cooperate to the fullest extent possible within their statutory obligations and responsibilities to provide efficient police services to the citizens and students of the City of Fontana.

2. Authorize the City Manager and the Chief of Police or his assigned designee to sign the MOU, all related documents, and any amendments to continue this cooperative agreement as long as it is in the best interest of the City of Fontana.

COUNCIL GOALS:
· Improve public safety by increasing operational efficiency, visibility and availability. · Concentrate on Inter-governmental relations by working cooperatively with neighboring jurisdictions.

DISCUSSION:

The Fontana Police Department (FPD) and the Fontana School Police Department (FSPD) have had a long-standing partnership providing police services and programs to the students at Fontana Unified School District (FUSD).

This MOU clearly identifies the law enforcement roles and responsibilities of each of the respective police departments. FUSD shall have primary law enforcement responsibilities in areas of concurrent jurisdiction for crimes/incidents occurring in their presence or reported to them, provided manpower/resources are available, with the exception of serious felonies as listed in California Penal Code Section 1192.7 and 1192.8.

Furthermore, due to increased security concerns the FPD Chief of Police authorized FSPD to exercise full police powers anywhere within the jurisdiction of the City of Fontana as detailed in the attached MOU.

FISCAL IMPACT:

There will be no fiscal impact with the approval of this MOU.

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File #: 21-1674 Agenda Date: 9/13/2022
Agenda #: T. Category: Consent Calendar
MOTION:

Approve staff recommendation.

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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-1663 Agenda Date: 9/13/2022
Agenda #: U. Category: Consent Calendar
FROM:

City Clerk
SUBJECT:

Amendment of the Conflict-of-Interest Code for the City of Fontana, Pursuant to the Political Reform Act of 1974
RECOMMENDATION:

Adopt Resolution No. 2022-115, of the City Council of the City of Fontana, California, adopting and approving the amended Conflict-of-Interest Code for the City of Fontana, Pursuant to the Political Reform Act of 1974.

COUNCIL GOALS:
· Create and maintain a dynamic team by promoting stability and predictability by providing consistent policy direction.
· Create and maintain a dynamic team by ensuring commissions work within clear guidelines to achieve Council goals.

DISCUSSION:

The Political Reform Act of 1974, Government Code section 81000, et seq. (the “Act”), requires all public agencies to adopt and maintain a conflict-of-interest code. The Act further requires that agencies regularly review and update their codes as directed by the code reviewing body or when change is necessitated by changed circumstances (Sections 87306 and 87306.5). The City Council is the City’s code-reviewing body.

As the code-reviewing body, the City Council directed that the Code be review and, if a change in the Code was necessary, that a revised Code be prepared and submitted to the City Council for final approval. During this bi-annual review, staff found that certain amendments to the Code are necessary.

Government Code Section 87303 provides that no code or amendment to a code shall be effective until it has been approved by the code-reviewing body.

Attached is a legislative (redlined) version of the proposed amended Code. The proposed revisions are based on the need to designate new positions and delete positions due to position no longer existing within the organization. All positions affected by this amendment have been given proper notice of this meeting.

FISCAL IMPACT:

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File #: 21-1663 Agenda Date: 9/13/2022
Agenda #: U. Category: Consent Calendar
None.

MOTION:

Approve staff recommendation.

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RESOLUTION NO. 2022-115

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

FONTANA, CALIFORNIA, APPROVING AND ADOPTING AN

AMENDED CONFLICT OF INTEREST CODE PURSUANT TO
THE POLITICAL REFORM ACT OF 1974

WHEREAS, the State of California enacted the Political Reform Act of 1974, Government Code Section 81000, et seq. (the "Act"), which contains provisions relating to conflicts of interest which potentially affect all officers, employees and consultants of the City of Fontana (the “City”), and which requires all public agencies to adopt and promulgate a conflict-of-interest code; and
WHEREAS, the City Council adopted a Conflict of Interest Code (the "Code") which was amended on November 10, 2020, in compliance with the Act; and WHEREAS, subsequent changed circumstances within the City have made it advisable and necessary pursuant to Sections 87306 and 87307 of the Act to amend and update the City’s Code; and
WHEREAS, the potential penalties for violation of the provisions of the Act are substantial and may include criminal and civil liability, as well as equitable relief which could result in the City being restrained or prevented from acting in cases where the provisions of the Act may have been violated; and
WHEREAS, notice of the time and place of a public meeting on, and of consideration by the City Council of, the proposed amended Code was provided to each affected designated employee and was publicly posted for review; and WHEREAS, a public meeting was held upon the proposed amended Code at a regular meeting of the City Council on September 13, 2022, at which all present were given an opportunity to be heard on the proposed amended Code.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Fontana that:

Section 1. The City Council does hereby approve and adopt the proposed amended Conflict of Interest Code, a copy of which is attached hereto and shall be on file with the Deputy City Clerk and available to the public for inspection and copying; Section 2. The said amended Conflict of Interest Code shall become effective immediately after the date of its adoption and approval.

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APPROVED AND ADOPTED this 13th day of September 2022.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney
I, Germaine McClellan Key, City Clerk of the City of Fontana, and Ex-Officio Clerk of the City Council, do hereby certify that the foregoing Resolution is the actual Resolution duly and regularly adopted by the City Council of said City at a regular meeting thereof, held on September 13. ,2022, by the following vote to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________
City Clerk of the City of Fontana
___________________________
Mayor of the City of Fontana
ATTEST:
___________________________
City Clerk
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October 2020 September 2022

LEGISLATIVE VERSION
(SHOWS CHANGES MADE)

CONFLICT OF INTEREST CODE
OF THE

CITY OF FONTANA
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October 2020 September 2022

CONFLICT OF INTEREST CODE FOR THE

CITY OF FONTANA
(Amended November 10, 2020 September 13, 2022)
The Political Reform Act (Gov. Code § 81000, et seq.) requires state and local government agencies to adopt and promulgate conflict of interest codes. The Fair Political Practices Commission has adopted a regulation (2 Cal. Code of Regs. § 18730) that contains the terms of a standard conflict of interest code, which can be incorporated by reference in an agency’s code. After public notice and hearing Section 18730 may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act. Therefore, the terms of 2 California Code of Regulations section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission are hereby incorporated by reference. This incorporation page, Regulation 18730 and the attached Appendix designating positions and establishing disclosure categories, shall constitute the conflict of interest code of the City of Fontana (the “City”).

The Mayor, Members of the City Council and Planning Commission, the City Manager, the City Attorney and the City Treasurer, shall electronically file their annual statements of economic interests directly with the Fair Political Practices Commission. All other officials and designated positions required to submit a statement of economic interests shall file their statements with the Deputy City Clerk as the City’s Filing Officer. The Deputy City Clerk shall retain the originals of the statements filed by all other officials and designated positions and will make all retained statements available for public inspection and reproduction during regular business hours. (Gov. Code § 81008.)
All officials and designated positions required to submit a statement of economic interests shall receive ethics training as required pursuant to Government Code section 53235 (AB 1234). The Deputy City Clerk, as the City’s Filing Officer, shall annually provide all filers with information on training available to meet the requirements of Section 53235, and maintain required records indicating the dates that filers satisfied the training requirements and the entity that provided the training. These records shall be retained for five years after the date of training and are public records subject to disclosure under the California Public Records Act. (Gov. Code § 53235.2.) -1-
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DESIGNATED POSITIONS’ DISCLOSURE CATEGORIES

TITLE OR FUNCTION ASSIGNED
App. A-4- October 2020 September 2022

APPENDIX

CONFLICT OF INTEREST CODE
OF THE

CITY OF FONTANA
(Amended November 10, 2020 September 13, 2022)
PART “A”
The Mayor, Members of the City Council and Planning Commission, the City Manager, the City Attorney, the City Treasurer, and all Other City Officials who manage public investments as defined by 2 Cal. Code of Regs. § 18700.3(b), are NOT subject to the City’s Code but must file disclosure statements under Government Code Section 87200 et seq. [Regs. § 18730(b)(3)]

OFFICIALS WHO MANAGE PUBLIC INVESTMENTS
It has been determined that the positions listed below are Other City Officials who manage public investments. 1 These positions are listed here for informational purposes only.

Finance Manager/Deputy City Treasurer Chief Financial Officer Financial Consultants
1 Individuals holding one of the above-listed positions may contact the Fair Political Practices Commission for assistance or written advice regarding their filing obligations if they believe that their position has been categorized incorrectly. The Fair Political Practices Commission makes the final determination whether a position is covered by § 87200.
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DESIGNATED POSITIONS’ DISCLOSURE CATEGORIES

TITLE OR FUNCTION ASSIGNED
App. A-5- October 2020 September 2022

DESIGNATED POSITIONS

GOVERNED BY THE CONFLICT OF INTEREST CODE
DESIGNATED POSITIONS’ DISCLOSURE CATEGORIES

TITLE OR FUNCTION ASSIGNED
Accounting Manager 5
Administrative Analyst 5
Administrative Project Coordinator 3, 5
Annexation Program Coordinator 1, 2
Assistant Building Official 3, 5, 6
Assistant Engineer 2, 3, 5, 6
Assistant Park Planner 2, 3, 5
Assistant Planner 3, 5, 6
Assistant to the City Manager/Intergovernmental 4
Relations Manager
Associate Engineer 2, 3, 5, 6
Associate Planner 3, 5, 6
Budget Manager 4
Building Inspector 3, 5, 6
Building Official 3, 5, 6
Business License Technician 6
Business Services Manager 4
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TITLE OR FUNCTION ASSIGNED
App. A-6- October 2020 September 2022
Buyer 4
Cable Production Specialist 5
Chief Equipment Mechanic 5
Chief Financial Officer 4
City Attorney (not filing under Gov Code 87200) 1, 2
City Clerk 5
City Communications and Marketing Manager 5
Code Compliance Inspector 5, 6
Code Enforcement Inspector 5, 6
Community Improvement Program Manager 1, 2
Community Services Coordinator 5
Community Services Manager 5
Community Services Supervisor 5
Computer Forensics Technician 5
Contracts Administrator 4
Customer Service Supervisor 5
Database Administrator 5
Deputy City Clerk 5
Deputy City Manager 1, 2
Deputy Director, Management Services 4
Deputy Director, Public Works 2, 3, 5, 6
Development Services Supervisor 5
Director of Building & Safety 3, 5, 6
Director of Community Development 1, 2
Director of Community Services 5
Director of Engineering 2, 3, 5, 6
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DESIGNATED POSITIONS’ DISCLOSURE CATEGORIES

TITLE OR FUNCTION ASSIGNED
App. A-7- October 2020 September 2022
Director of Human Resources & Risk Management 5
Director of Information Technology 5
Director of Management Services 4
Director of Planning 1,2
Director of Public Works 2, 3, 5, 6
Director of Redevelopment/Special Projects 1, 2
Economic Development Manager 1, 2
Economic Development Analyst 2, 5
Engineering Manager 2, 3, 5
Environmental Control Specialist 6
Environmental Control Supervisor 5
Facility Maintenance Supervisor 5
Fleet Maintenance Supervisor 5
GIS Administrator 5
GIS Analyst 5
Grants Coordinator 1
Housing Development Manager 2, 3, 5
Housing Technician 2, 5
Human Resources Analyst (ALL) 5
Human Resources Specialist 5
Human Resources Technician 5
Information Systems Division Manager 5
Information Technology Manager 5
Internal Auditor, Sr. 4
IT Business Analyst 5
Landscape Inspector 6
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TITLE OR FUNCTION ASSIGNED
App. A-8- October 2020 September 2022
Landscape Project Coordinator 2, 3, 5
Landscape Technician II 2, 3, 5
Management Analyst 5
Marketing Communications Specialist 5
Network Administrator 5
Network/Security Administrator 5
Operations & Construction Project Supervisor 2, 3, 5
Park Development Coordinator 2, 3, 5
Parks & Landscape Supervisor 5
Plan Check Engineer 3, 5, 6
Planning Inspector 2, 3, 6
Planning Manager 2, 3, 5, 6
Planning Technician 3, 5, 6
Plans Examiner 3, 5, 6
Police Administrative Lieutenant 5, 6
Police Administrative Services Manager 5
Police Captain 5, 6
Police Chief 5, 6
Police Communications Supervisor 5
Police Support Services Supervisor 5
Principal Civil Engineer 2, 3, 5, 6
Principal Planner 2, 3, 5, 6
Project Coordinator 2, 3, 5
Project Specialist 1, 2
Public Affairs Manager 5
Public Safety Administrator 5
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TITLE OR FUNCTION ASSIGNED
App. A-9- October 2020 September 2022
Public Works Director/ City Engineer 2, 3, 5, 6
Public Works Inspection Supervisor 3, 5, 6
Public Works Inspector 3, 5, 6
Public Works Manager 5
Pump Maintenance Technician 5
Purchasing Specialist 4
Purchasing Supervisor 4
Real Property Analyst 1, 2
Records Coordinator 5
Resources/Budget Officer 4
Senior Accountant 5
Senior Civil Engineer 2, 3, 5, 6
Senior Engineer 2, 3, 5, 6
Senior Civil Land Surveyor 2, 3, 5
Senior Park Planner 3, 5
Senior Planner 2, 3, 5, 6
Senior Plans Examiner 2, 3, 5, 6
Senior Traffic Engineer 2, 3, 5, 6
Software Development Supervisor 5
Strategic Transportation Engineering Manager 2, 3, 5, 6 Supervising Accountant 5
Supervising Animal Services Officer 5
Supervising Code Compliance Inspector 5,6
Supervising Plans Examiner 3, 5, 6
Supervising Real Property Agent 1, 2
Supervising Technical Engineer 5
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DESIGNATED POSITIONS’ DISCLOSURE CATEGORIES

TITLE OR FUNCTION ASSIGNED
App. A-10- October 2020 September 2022
Supervising Traffic Systems Specialist 5
Systems/Network Administrator 5
Technology Services Business Analyst 5
Technology Services Division Manager 5
Technology Services Specialist 5
Telecommunications Specialist 5
Traffic Engineering Technician 5, 6
Transportation Engineering Manager 2, 3, 5, 6
Utility & Streets Supervisor 5

MEMBERS OF BOARDS,

COMMITTEES & COMMISSIONS
Oversight Board to Successor Agency 1, 2
Project Area Committee 1, 2
Successor Agency 1, 2
Consultants and New Positions2
2 Individuals serving as a consultant as defined in FPPC Reg. 18700.3(a) or in a new position must file under the broadest disclosure category set forth in this Code subject to the following limitation:

The City Manager may determine that, due to the range of duties or contractual obligations, it is more appropriate to designate a limited disclosure requirement. A clear explanation of the duties and a statement of the extent of the disclosure requirements must be in a written document. The City Manager’s determination is a public record and shall be retained for public inspection in the same manner and location as this Conflict of Interest Code. 1698
October 2020 September 2022

OFFICES
PART “B”

DISCLOSURE CATEGORIES
The disclosure categories listed below identify the types of economic interests that the designated position must disclose for each disclosure category to which he or she is assigned.3 “Investment” means financial interest in any business entity (including a consulting business or other independent contracting business) and are reportable if they are either located in or doing business in the jurisdiction, are planning to do business in the jurisdiction, or have done business during the previous two years in the jurisdiction of the City.

Category 1: All investments and business positions in business entities, and sources of income, including gifts, loans and travel payments, that are located in, do business in, or own real property within the jurisdiction of the City.

Category 2: All interests in real property which is located in whole or in part within, or not more than two (2) miles outside, the jurisdiction of the City, including any leasehold, beneficial or ownership interest or option to acquire property.

Category 3: All investments and business positions in business entities, and sources of income, including gifts, loans and travel payments, that are engaged in land development, construction or the acquisition or sale of real property within the jurisdiction of the City.

Category 4: All investments and business positions in business entities, and sources of income, including gifts, loans and travel payments, that provide services, products, materials, machinery, vehicles or equipment of a type purchased or leased by the City.

Category 5: All investments and business positions in business entities, and sources of income, including gifts, loans and travel payments, that provide services, products, materials, machinery, vehicles or equipment of a type purchased or leased by the designated position’s department, unit or division. 3 This Conflict of Interest Code does not require the reporting of gifts from outside this agency’s jurisdiction if the source does not have some connection with or bearing upon the functions or duties of the position. (Reg. 18730.1)
App. B-1-
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Category 6: All investments and business positions in business entities and sources of income, including gifts, loans and travel payments, subject to the regulatory, permit, licensing application or other authority or entitlement of the designated position’s department, unit or division.
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www.fppc.ca.gov
FPPC Advice: [email protected] (866.275.3772)

Page 1 of 1 ends

2022 Local Agency Biennial Notice
Name of Agency:

Mailing Address:

Contact Person: Phone No.

Email: Alternate Email:

Accurate disclosure is essential to monitor whether officials have conflicts of interest and to help ensure public trust in government. The biennial review examines current programs to ensure that the agency’s code includes disclosure by those agency officials who make or participate in making governmental decisions.

This agency has reviewed its conflict of interest code and has determined that (check one BOX):
q An amendment is required. The following amendments are necessary:
(Check all that apply.)
¡ Include new positions
¡ Revise disclosure categories
¡ Revise the titles of existing positions
¡ Delete titles of positions that have been abolished and/or positions that no longer make or participate in making governmental decisions
¡ Other (describe)
q The code is currently under review by the code reviewing body. q No amendment is required. (If your code is over five years old, amendments may be necessary.)
Verification (to be completed if no amendment is required) This agency’s code accurately designates all positions that make or participate in the making of governmental decisions. The disclosure assigned to those positions accurately requires that all investments, business positions, interests in real property, and sources of income that may foreseeably be affected materially by the decisions made by those holding designated positions are reported. The code includes all other provisions required by Government Code Section 87302.
__________________________________________ _________________________ Signature of Chief Executive Officer Date
All agencies must complete and return this notice regardless of how recently your code was approved or amended. Please return this notice no later than October 3, 2022, or by the date specified by your agency, if earlier, to:
(PLACE RETURN ADDRESS OF CODE REVIEWING BODY HERE)
PLEASE DO NOT RETURN THIS FORM TO THE FPPC.
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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-1648 Agenda Date: 9/13/2022
Agenda #: V. Category: Consent Calendar
FROM:

Engineering
SUBJECT:

Award a Professional Services Agreement for Geotechnical Engineering and Materials Testing Services for the Downtown Parking Structure Project SQ-07-DE-23.

RECOMMENDATION:

1. Award and authorize the City Manager to execute a Professional Services Agreement in a not to exceed amount of $271,518 with Ninyo & Moore Geotechnical and Environmental Sciences Consultants, Inc. for Geotechnical Engineering and Materials Testing Services for the Downtown Parking Structure Project, Request for Proposals SQ-07-DE-23.

2. Approve and authorize the City Manager to execute any future amendments to the Professional Services Agreement.

3. Approve and authorize the use of funds in the amount of $271,518 from Fund 302 as part of the City’s American Rescue Plan Act Expenditure Plan (ARPA) revenue loss category.

COUNCIL GOALS:
· Enhance the local environment for future generations and create a healthy economic and environmental future by adopting policies that promote compact and efficient development in new and existing communities.
· Invest in the City’s infrastructure (streets, sewers, parks, etc.) by maintaining and improving the city's existing infrastructure.
· Invest in the City’s infrastructure (streets, sewers, parks, etc.) by providing for the development of new infrastructure.

DISCUSSION:

On March 8, 2022, the City Council approved the ARPA Expenditure Plan which included the Downtown Parking Structure Project in the amount of $10.0 million in the Revenue Loss category.

Per the U.S. Department of the Treasury State and Local Fiscal Recovery Funds Final Rule, the City can elect to take a standard allowance of $10.0 million for revenue loss for which funds be used for government services. As the City’s current ARPA Expenditure Plan includes $18.0 million of projects to be funded in the revenue loss category, $8.0 million of projects in this category will be leveraged with General Fund ARPA eligible projects. These leveraged projects will be presented to Council for consideration in future plan updates.

The proposed project is to be constructed within the existing parking lot of the City’s Human Resources Department Building located at 8491 Sierra Avenue, Fontana, CA 92335, and shall City of Fontana Page 1 of 2 Printed on 9/7/2022
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File #: 21-1648 Agenda Date: 9/13/2022
Agenda #: V. Category: Consent Calendar
Resources Department Building located at 8491 Sierra Avenue, Fontana, CA 92335, and shall consist of a 4-tier parking structure. Each tier will have a footprint of approximately 130 feet by 230 feet with one vehicle entrance and exit at a location not yet determined. The City anticipates the structure to include 330 - 350 parking spaces and one elevator. The intent of the structure is to serve as both public and employee parking for the civic center campus as well as the planned downtown area which is to be revitalized.

Staff solicited a Request for Qualifications and Proposals (RFQ/P) for Geotechnical Engineering and Materials Testing Services by notifying firms through the Purchasing Office. Thirty-eight (38) prospective firms downloaded the RFQ/P documents. On August 4, 2022, proposals were received from twelve (12) firms interested in providing geotechnical engineering and materials testing services for the project. Statements of Qualifications were evaluated and ranked in accordance with City policies and procedures.

FISCAL IMPACT:

The Project is possible through the American Rescue Plan Act (ARPA) in Fund #302, specifically the Downtown Parking Structure Project No. 36000035.

MOTION:

Approve staff recommendation.

City of Fontana Page 2 of 2 Printed on 9/7/2022
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Firms Rank
Ninyo & Moore
Fontana, CA
1 Geocon West, Inc.

Redlands, CA
2 RMA Group
Rancho Cucamonga, CA
3 ATLAS Technical Consultants
Riverside, CA
4 Earth Systems Pacific
Burmuda Dunes, CA
4 Leighton Consulting, Inc.

Rancho Cucamonga, CA
6 American Engineering Laboratories, Inc.

La Habra, CA
7 MTGL, Inc.

Riverside, CA
8 Koury Engineering and Testing, Inc.

Chino, CA
9 Hilltop Geotechnical, Inc.

San Bernardino, CA
10 Fenagh Engineering and Testing
Rancho Cucamonga, CA
11 Southwest Inspection & Testing, Inc.

La Habra, CA
12 Geotechnical - Downtown Parking Structure
SQ-07-DE-23
Ranking
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N
0 1 inch = 600 feet
600 1200

PARKING STRUCTURE PROJECT

PROJECT LOCATION
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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-1682 Agenda Date: 9/13/2022
Agenda #: W. Category: Consent Calendar
FROM:

Police Department
SUBJECT:

Memorandum of Understanding between the Federal Bureau of Investigation (FBI) and the Fontana Police Department
RECOMMENDATION:

1. Approve a Memorandum of Understanding (MOU) between the Federal Bureau of Investigation (FBI) and the Fontana Police Department.

2. Authorize the Chief of Police (or his designee) to sign the MOU, all related documents, and any amendments to continue this cooperative agreement as long as it remains in the best interest of the City of Fontana.

COUNCIL GOALS:
· Concentrate on Inter-governmental relations by working cooperatively with neighboring jurisdictions.
· Concentrate on Inter-governmental relations by establishing partnerships and positive working relationships with other public agencies providing services to residents and local businesses.

DISCUSSION:

The Fontana Police Department (FPD) often works cooperatively with other agencies sharing information and assisting with operations to derive the maximum benefits to the City for Officers’ efforts.

The mission of the Federal Bureau of Investigation Inland Regional Child Exploitation Task Force (CEFT) is to provide rapid, proactive, and intelligence-driven investigative response for the purpose of cases involving child abductions, sexual exploitation of children enterprises, contact offenses against children, trafficking of child pornography, international parental kidnapping and other crimes against children. This MOU clearly identifies the law enforcement roles and responsibilities of each of the respective entities.

Staff recommends approving this agreement and renewing it annually as it will benefit the City in aiding in the reduction of vulnerability of children to sexual exploitation, abuse, and negative impact of domestic and international parental right disputes.

FISCAL IMPACT:

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File #: 21-1682 Agenda Date: 9/13/2022
Agenda #: W. Category: Consent Calendar
There is no fiscal impact with the approval of this MOU.

MOTION:

Approve staff recommendation.

City of Fontana Page 2 of 2 Printed on 9/7/2022
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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-1683 Agenda Date: 9/13/2022
Agenda #: X. Category: Consent Calendar
FROM:

Police Department
SUBJECT:

Approve the Agreement For Use of Range Facilities
RECOMMENDATION:

1. Approve and authorize the Chief of Police to execute the Operational Agreement and any amendments between San Bernardino County Sheriff’s Department and the Fontana Police Department for use of range facilities for the period of August 1, 2022, through June 30, 2027, on a fee for service basis.

2. Approve and authorize the Chief of Police to continue said services as long as they remain in the best interest of the City of Fontana.

COUNCIL GOALS:
· Improve public safety by increasing operational efficiency, visibility and availability. · Concentrate on Inter-governmental relations by establishing partnerships and positive working relationships with other public agencies providing services to residents and local businesses.

DISCUSSION:

The Fontana Police Department would like to continue to utilize the San Bernardino County Sheriff’s Department range facilities. The facility is used by sworn personnel (SWAT Team Members) on an as needed basis.

The facilities shall include, but are not limited to, a pistol range, rifle range and classroom facility. The availability to use the facility allows for training/qualifications that meet the Police Officer’s Standard Training (POST) requirements.

FISCAL IMPACT:

Funds to utilize the San Bernardino County Sheriff’s Department Range Facility have been included in the 2022/2023 fiscal year budget. Funds will continue to be budgeted annually through the term of the agreement. Minimal fiscal impact is anticipated as the facility is one of many locations used for training.

MOTION:

Accept staff recommendation.

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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-1686 Agenda Date: 9/13/2022
Agenda #: Y. Category: Consent Calendar
FROM:

Public Works
SUBJECT:

Final Acceptance of the Village of Heritage Pool Deck Repair Project (MS-106-PW-22).

RECOMMENDATION:

1. Accept as complete the work performed by Masterseal Corporation for the Village of Heritage Pool Deck Repair project and approve the final construction cost of $223,200.

2. Authorize the City Engineer/Director of Public Works to file a notice of completion and release the 5% retention.

COUNCIL GOALS:
· Invest in the City’s infrastructure (streets, sewers, parks, etc.) by maintaining and improving the city's existing infrastructure.

DISCUSSION:

On April 12, 2022, the City Council awarded a contract to Masterseal Corporation in the amount of $219,500 and authorized a 10% contingency fund of $21,950 for the performance of pool deck repair work at the Village of Heritage Pool Deck Repair Project (MS-106-PW-22).

The project was completed on August 5, 2022 at a final construction cost of $223,200. One (1) contract change order was executed in the amount of $3,700 during the performance of this contract.

All work has been completed to the satisfaction of the City.

This project replaced the existing worn and damaged pool deck coating with a new deck coating that includes a 5-year warranty on labor and materials and has a projected 10-year life expectancy.

FISCAL IMPACT:

The funding for this project was budgeted out of LMD 2 Fund 396 in ORG # 39638205. Remaining funds for this project will be returned to fund balance.

MOTION:

Approve Staff Recommendation
City of Fontana Page 1 of 1 Printed on 9/7/2022
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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-1687 Agenda Date: 9/13/2022
Agenda #: Z. Category: Consent Calendar
FROM:

Public Works
SUBJECT:

Final acceptance of Walnut Village Iron Fencing Removal and Installation Project (SB-56-PW-22) RECOMMENDATION:

1. Accept as complete the work performed by J & A Engineering Corporation for the Walnut Village Iron Fencing Removal and Installation Project and approve the final construction cost of $494,461.

2. Authorize the City Engineer/Director of Public Works to file a Notice of Completion and release the 5% retention.

COUNCIL GOALS:
· Invest in the City’s infrastructure (streets, sewers, parks, etc.) by maintaining and improving the city's existing infrastructure.

DISCUSSION:

On April 12th, 2022, the City Council awarded a construction contract to J & A Engineering Corp. in the amount of $449,526 for the Walnut Village Fencing Removal and Installation Project (SB-56-PW22).

The project was completed on July 8, 2022 with a final construction cost of $494,461. One (1) contract change order was executed for a total of $44,935. All work has been completed to the satisfaction of the City.

This project consisted of the removal and replacement of 3,234 linear feet of deteriorated wrought iron fencing surrounding eleven (11) existing City owned detention basins in the Walnut Village Community.

FISCAL IMPACT:

Funding for this project in the amount of $526,000 was included in the Fiscal Year 2021/2022 operating budget in LMD #1 ORG 39538275. Remaining funds for this project will be returned to fund balance.

MOTION:

Approve Staff Recommendation
City of Fontana Page 1 of 1 Printed on 9/7/2022
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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-1680 Agenda Date: 9/13/2022
Agenda #: AA. Category: Consent Calendar
FROM:

Management Services
SUBJECT:

Fiscal Year 2022-23 Gann Spending Limit
RECOMMENDATION:

Adopt Resolution No. 2022 - 116 , establishing an Appropriations Limit of $337,778,231 pursuant to Article XIII(B) of the California Constitution for Fiscal Year 2022-23 COUNCIL GOALS:
· Operate in a businesslike manner by ensuring that the public debate is based on accurate information.
· Practice sound fiscal management by producing timely and accurate financial information.
· Practice sound fiscal management by living within our means while investing in the future.
· Practice sound fiscal management by developing long-term funding and debt management plans.
· Practice sound fiscal management by producing transparent information in a timely matter.

DISCUSSION:

In November of 1979, voters approved Proposition 4, an initiative that added Article XIII B to the California Constitution. The constitutional amendment, also known as the Gann Initiative, placed limits on the annual growth in appropriations or expenditures made by local government agencies for tax funded services in an effort to control government spending. Article XIII B required that the annual growth in appropriation not exceed the annual growth in population and inflation. California Government Code 61113 et seq. was then put in place requiring local government agencies to annually review and adopt a resolution establishing its annual appropriation limit. The growth calculation is driven by both the percent change in California per capita income and the population change in unincorporated San Bernardino County, both of which are provided by the California Department of Finance.

The limit restricts appropriations from tax revenues by State and local governments. Under its provisions, no local agency can appropriate proceeds of taxes in excess of its “appropriation limit”.

Excess funds may be carried over into the next year. However, any excess funds remaining after the second year must be returned to taxpayers by reducing tax rates or fees.

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File #: 21-1680 Agenda Date: 9/13/2022
Agenda #: AA. Category: Consent Calendar
Using the population and per capita personal income data provided by the California Department of Finance, the City’s appropriation limit for Fiscal Year 2022-23 is $337,778,231. Appropriations subject to the limitation in the 2022-23 Operating Budget total $120,279,920, which is $217,498,311 or 64% less than the computed allowable limit.

FISCAL IMPACT:

There is no fiscal impact to the City since the appropriations subject to the limitation in the 2022-23 budget are less than the computed allowable limit. Article XIII (B) limitation is not a restricting factor for the City, but will be monitored annually and budget adjustments recommended if they are required in future years
MOTION:

Approve staff recommendation.

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Constitutional Spending Limit
The voters of California, during a special election in
1979, approved Article XIII(B) of the California
State Constitution which provides that the City’s
annual appropriations be subject to certain state
limitations. This appropriations limit is often referred to as the GANN Limit.

In 1980 the State Legislature added Section 9710 to
the Government Code providing that the governing
body of each local jurisdiction must establish, by
resolution, an appropriations limit for the following
year. The appropriations limit for any fiscal year is
equal to the previous year’s limit adjusted for
population changes and the changes in the US
Consumer Price Index (or California per capital
personal income, if smaller). The necessary
statistical information is provided each year by the
California Department of Finance.

The City’s limitation is calculated each year and
established by a resolution of the City Council as
part of the annual Operating Budget process.

Using the population and per capita personal income
data provided by the California Department of
Finance, the City’s appropriation limit for Fiscal Year 2022-23 is $337,778,231. Appropriations subject to
the limitation in the 2022-23 Operating Budget total
$120,279,920, which is $217,498,311 or 64% less
than the computed allowable limit.

The Article XIII(B) limitation is not a restricting
factor for the City of Fontana, but will be monitored
annually and budget adjustments recommended if
they are required in future years.

Appropriations Limit
2021-22 Appropriations Limit $289,644,326
2022-23 Adjustment Factors:

Population (1.39) 1.0139
Per capita income change (7.55%) 1.0755
Total adjustment 1.0904
2022-23 Appropriations Limit $337,778,231
Appropriations Subject to Limit
Proceeds of taxes
Less: qualified capital outlay
Appropriations subject to limit $120,279,920
Percentage of Appropriations Limit used 36%
$0
$40,000,000
$80,000,000
$120,000,000
$160,000,000
$200,000,000
$240,000,000
$280,000,000
$320,000,000
$360,000,000
2018-19 2019-20 2020-21 2021.22 2022.23
Five-Year History of Appropriations Limit
Appropriations Limit Appropriations Subject to Limit
1742
RESOLUTION NO. 2022 -116

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FONTANA ESTABLISHING AN APPROPRIATIONS LIMIT OF $337,778,231 PURSUANT

TO ARTICLE XIII (B) OF THE CALIFORNIA CONSTITUTION FOR FISCAL YEAR 2022/2023
WHEREAS, Article XIII (B) of the California Constitution provides that the total annual appropriations subject to limitation of the State and of each local government entity for the prior year is to be adjusted for changes in either the growth in the California Per Capita Income or the growth in the non-resident assessed valuation due to new construction and the changes in population within either its own jurisdiction or county in which the public entity is located, and WHEREAS, pursuant to said Article XIII (B) of the California Constitution, the City Council of the City deems it to be in the best interest of the City of Fontana to establish an appropriations limit for Fiscal Year 2022/2023, and
WHEREAS, the City of Fontana has determined that said appropriations limit for Fiscal Years 2022/2023 be established in the amount of $337,778,231, calculated using the growth factor in the California Per Capita Income and change in population within the City of Fontana.

NOW, THEREFORE, be it resolved, determined, and ordered by the City Council of the City of Fontana that said appropriations limit herein established may be changed as deemed necessary by resolution of the City Council.

APPROVED AND ADOPTED this 13th day of September, 2022.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney
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RESOLUTION NO. 2022 -
I, Germaine Key, City Clerk of the City of Fontana, and Ex-Officio Clerk of the City Council do hereby certify that the foregoing resolution is the actual resolution duly and regularly adopted by the City Council at a regular meeting on the 13th day of September, 2022, by the following vote to-wit:

AYES:

NOES:

ABSENT:

City Clerk of the City of Fontana

Mayor of the City of Fontana
ATTEST:

City Clerk
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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-1637 Agenda Date: 9/13/2022
Agenda #: AB. Category: Consent Calendar
FROM:

Public Works
SUBJECT:

Award Bid for Pool Chemicals (SB-10-PW-22).

RECOMMENDATION:

Award bid and authorize the Purchasing Office to issue purchase orders for Pool Chemicals, SB-10- PW-22 for a period of two (2) years, renewable for three (3) one-year extensions at the City’s sole discretion, for a total of $152,420 per year for an aggregate amount not to exceed $609,600 for the five (5) years.

1. SCP Distributors LLC dba Lincoln Aquatics, and

2. Waterline Technologies, Inc.,
COUNCIL GOALS:
· To operate in a businesslike manner by becoming more service oriented. · To invest in the City’s infrastructure (streets, sewers, parks, etc.) by maintaining and improving the City’s existing infrastructure.

DISCUSSION:

City staff recently solicited bids for Pool Chemicals used to maintain the City’s existing aquatics facilities. In accordance with City purchasing policies, staff have completed the formal bidding process. Bids were opened electronically at 2:00 P.M. on August 4th, 2022. Two hundred thirty (230) vendors were notified of the bid. Bid packets were downloaded/received by eleven (11) vendors and we received two (2) bid responses. Five (5) Fontana vendors were notified, and no Fontana vendor responses were received. After evaluating the bid responses, the Purchasing Office is recommending SCP Distributors LLC dba Lincoln Aquatics, and Waterline Technologies, Inc. for award of contracts as they are the lowest, most responsive, and responsible bidders.

FISCAL IMPACT:

Current funds in the amount of $152,420 have been budgeted in the current Fiscal Year 2022/2023 Operating Budget, specifically in the General Fund Org 10138205, CFD1 Org 40138205, and LMD2 Org 39638205.

MOTION:

Approve staff recommendation.

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8353 SIERRA AVENUE, FONTANA, CA 92335
www.fontanapurchasing.org
City of Fontana
Purchasing Office
August 18, 2022
TO: Dan West, Public Works Manager
FROM: Ticha Loera, Purchasing Specialist
SUBJECT: RECAP OF BID SB-10-PW-22, POOL CHEMICALS
The bid for the above-named project was opened electronically at 2:00 P.M. on August 4, 2022. Two hundred thirty (230) bidders were notified of the bid. Bid packets were downloaded/received by eleven (11) vendors and we received two (2) bid responses.

Five (5) Fontana vendors were notified. No Fontana vendor responses were received.

After evaluating the vendor responses, the Purchasing Office is recommending SCP Distributors LLC dba Lincoln Aquatics and Waterline Technologies, Inc. for award of contracts as they are the lowest, most responsive, and responsible bidders.

If you agree with the Purchasing Office’s recommendation, please forward, at your earliest convenience, an Action Report to Fontana City Council for their concurrence with the recommendation.

If you have any questions, please contact me at x6696.
cc: Purchasing File
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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-1681 Agenda Date: 9/13/2022
Agenda #: A. Category: Public Hearing
FROM:

Housing
SUBJECT:

Public Hearing and adoption of the Draft HOME-ARP Allocation Plan RECOMMENDATION:

1. Open a public hearing to receive public comments on the Draft HOME-ARP Allocation Plan and the proposed expenditure of HOME-ARP funds in compliance with the requirements of the U.S. Department of Housing and Urban Development (HUD) and the City’s Citizen Participation Plan;

2. Direct staff to incorporate the public comments into the HOME-ARP Allocation Plan;

3. Review and approve the HOME-ARP Allocation Plan in the amount of $2,633,658; and

4. Authorize the City Manager or his designee to make necessary changes and submit the HOME-ARP Allocation Plan, execute documents related to the submission of the HOME-ARP Allocation Plan.

5. Authorize the City Manager, or City Manager’s designee, to execute and transmit any documents necessary or desirable, including but not limited to purchase agreements that may include acquisitions costs up to the full amount of the allocated funds, to facilitate the timely administration of the HOME ARP Acquisition, Rehabilitation, and Rental Program including but not limited to property purchase agreements.

COUNCIL GOALS:
· Practice sound fiscal management by producing timely and accurate financial information.
· Concentrate on Inter-governmental relations by pursuing financial participation from county, state and federal governments.

DISCUSSION:

The City of Fontana is a participating jurisdiction for HOME Investment Partnerships (HOME) funds through the U.S. Department of Housing and Urban Development (HUD). As such, the City has been awarded $2,633,568 of HOME-American Rescue Plan Act (HOME-ARP) funding.

As a prerequisite for receiving the HOME-ARP allocation, the City is required to submit a HOME-ARP Allocation Plan that includes 1) a summary of the consultation process and the results of consultation; 2) a summary of comments received through the public participation process and a summary of any comments or recommendations not accepted and the reason why; 3) a description of HOME-ARP qualifying populations within the jurisdiction; 4) an assessment of unmet needs of City of Fontana Page 1 of 2 Printed on 9/7/2022
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File #: 21-1681 Agenda Date: 9/13/2022
Agenda #: A. Category: Public Hearing
of HOME-ARP qualifying populations within the jurisdiction; 4) an assessment of unmet needs of each qualifying population; 5) an assessment of gaps in housing and shelter inventory, homeless assistance and services, and homelessness prevention service delivery system; and 6) a summary of planned use of HOME-ARP funds for eligible activities based on the unmet needs of the qualifying populations.

The City plans to utilize these funds to develop affordable rental housing in the City to serve households at risk of homelessness. The Allocation Plan will amend the 2021-2022 Annual Action Plan to address these funds.

FISCAL IMPACT:

The fiscal impact associated with the approval of this item is $2,633,658 and is currently budgeted in HOME Fund #363 Project #03020004.

MOTION:

Approve staff recommendation.

City of Fontana Page 2 of 2 Printed on 9/7/2022
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HOME Investment
Partnerships Program
American Rescue Plan

Substantial Amendment to
2021 Annual Action Plan
DRAFT

HOME-ARP ALLOCATION PLAN
August 2022
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Substantial Amendment to
2021 Annual Action Plan

HOME-ARP ALLOCATION PLAN

HOME Investment Partnerships Program
American Rescue Plan

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CITY COUNCIL

ACQUANETTA WARREN
Mayor

PETER A. GARCIA
Mayor Pro Tem

PHILLIP W. COTHRAN
Councilmember

JOHN ROBERTS
Councilmember

JESUS “JESSE” SANDOVAL
Councilmember
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CITY OF FONTANA - i - HOME-ARP ALLOCATION PLAN

CONTENTS
Executive Summary ...................................................................................................... 1 Introduction ................................................................................................................... 2 HOME-ARP Eligible Qualifying Populations and Activities ........................................... 2 Stakeholder Consultation and Public Participation ......................................................... 4 Stakeholder Consultation – Organizations Consulted by Type and Method ................. 4 Summary of Feedback Received from Consulted Organizations ................................. 4 Public Participation .................................................................................................... 6 Efforts to Broaden Public Participation ........................................................................ 7 Public Comments and Recommendations Received ................................................... 8 Public Comments and Recommendations Not Accepted and Reasons Why ................ 8 Needs Assessment and Gap Analysis ............................................................................ 9 Housing Inventory Count ........................................................................................... 9 Size and Demographic Composition of Qualifying Populations .................................. 10 Sheltered Homeless Populations .............................................................................. 10 Unsheltered Homeless Populations .......................................................................... 10 At-risk of Homelessness........................................................................................... 10 Fleeing or Attempting to Flee Domestic Violence, Dating Violence, Sexual Assault, Stalking or Human Trafficking .................................................................................. 11 Other Populations: Currently housed and at risk of repeat homelessness ...................... 11 Other Populations: At greatest risk of housing instability – Households with incomes <30% AMI and experiencing severe housing cost burden ......................................... 12 Other Populations: At greatest risk of housing instability – Households with incomes 30-50% AMI that meet HUD’s §91.5 definition of at risk of homelessness ................. 12 Unmet Housing and Service Needs of Qualifying Populations ................................... 12 Current Resources Available to Assist Qualifying Populations ....................................... 13 Current Resources: Congregate Beds and Non-congregate Shelter Units ................ 14 Current Resources: Supportive Services .................................................................. 14 Current Resources: Tenant-based Rental Assistance ............................................... 15 Current Resources: Affordable and Permanent Supportive Rental Housing ............... 15 1788
CITY OF FONTANA - ii - HOME-ARP ALLOCATION PLAN
Current Resources: Housing V ................................................................................. 15 Shelter, Housing and Service Delivery System Gaps ................................................ 15 Shelter Gap ............................................................................................................. 16 Tenant-based Rental Assistance Gap....................................................................... 16 Affordable and Permanent Supportive Rental Housing Gap ...................................... 16 Housing Voucher Gap.............................................................................................. 16 Service Delivery System Gaps ................................................................................. 17 Characteristics of Housing Associated with Increased Risk of Homelessness for Other Populations .............................................................................................................. 18 Priority Needs for Qualifying Populations .................................................................. 18 HOME-ARP Activities .................................................................................................. 20 Uses of HOME-ARP Funding.................................................................................... 20 Rationale for Uses of HOME-ARP Funding ............................................................... 20 HOME-ARP Housing Production Goals ........................................................................ 20 Preferences ................................................................................................................ 21 HOME-ARP Refinancing Guidelines ............................................................................. 21 Appendices
Citizen Participation and Consultation ................................................................ Appendix A Grantee SF-424s and Certifications ................................................................... Appendix B

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CITY OF FONTANA - iii - HOME-ARP ALLOCATION PLAN

VERSION HISTORY
No. Summary of Changes
1 Published Draft for Public Comment: 8/13/22 Sent to HUD for Approval: TBD Conducted Public Hearing: 9/13/22 Approved by HUD: TBD
Original HOME-ARP Allocation Plan.

Public Contact Information
Development Services Department
Attn: Valerie Gonzales, Housing Development Manager
8353 Sierra Avenue
Fontana, CA 92335
909-350-6625
[email protected]
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CITY OF FONTANA - 1 - HOME-ARP ALLOCATION PLAN
Executive Summary
The City of Fontana has been allocated $2,633,568 of HOME Investment Partnerships Program-American Rescue Plan Act (HOME-ARP) funding from the US Department of Housing and Urban Development (HUD). In order to receive the HOME-ARP allocation, the City must develop a HOME-ARP Allocation Plan that will become part of the City’s PY2021 HUD Annual Action Plan by substantial amendment.

To ensure broad input into the HOME-ARP Allocation Plan from stakeholders and the public, the City engaged in consultation with stakeholders and the public, including a virtual consultation session, a survey of stakeholders, a 30-day public comment period, and a public hearing.

The needs assessment and gap analysis identified the following needs and gaps within the City:
 In January 2020, the annual Point in Time (PIT) count revealed that 7 people were residing in emergency housing using motel vouchers. Another 149 people were unsheltered on the streets, in tents or makeshift shelters, or in cars, vans, RVs or campers.
 2014-2018 CHAS Data from HUD reported 3,320 renter households with incomes at or below 30% AMI are at risk of homelessness in the City.  The 2014-2019 HUD CHAS data indicates there are 8,715 renter households with an annual income at or below 30% AMI with a cost burden that are at greatest risk of housing instability.
 The CHAS data reports that there are 1,830 households with incomes more than 30 and but equal to or less than 50% AMI that are at risk of homelessness in the City because of at least one of the housing problems as defined by HUD.  The greatest need for supportive services is in the areas of housing search and counseling services, case management services, financial assistance costs, mental health services, outpatient health services, services for special populations, and transportation assistance
To address these needs within the community the City will allocate $2,238,533 of HOMEARP funds to the development of affordable rental housing. Both the consultation with stakeholders and the needs assessment data show that the risk of homelessness and housing instability is affecting large numbers of City residents. The lack of affordable housing can be addressed using these available funds. The remainder of the funds will be used for planning and administration activities related to the funds. 1791
CITY OF FONTANA - 2 - HOME-ARP ALLOCATION PLAN
Introduction
The City of Fontana has been allocated $2,633,568 of HOME Investment Partnerships Program-American Rescue Plan Act (HOME-ARP) funding from the US Department of Housing and Urban Development (HUD). To receive the HOME-ARP allocation the City of Fontana must develop a HOME-ARP Allocation Plan that will become a part of the City’s PY2021 HUD Annual Action Plan by substantial amendment. The HOME-ARP Allocation Plan must include the following:

1. A summary of the consultation process and the results of consultation;

2. A summary of comments received through the public participation process and a summary of any comments or recommendations not accepted and the reason why;

3. A description of HOME-ARP qualifying populations within the jurisdiction;

4. An assessment of unmet needs of each qualifying population;

5. An assessment of gaps in housing and shelter inventory, homeless assistance and services, and homelessness prevention service delivery system;

6. A summary of planned use of HOME-ARP funds for eligible activities based on the unmet needs of the qualifying populations;

7. An estimate of the number of housing units for qualifying populations the City will produce or preserve with its HOME-ARP allocation;

8. A description of any preferences for individuals and families in a particular qualifying population or a segment of a qualifying population;

9. HOME-ARP Refinancing Guidelines; and

10.Certifications and SF-424, SF-424B, and SF-424D Forms.

The following entities are responsible for preparing the Allocation Plan and those responsible for administration of the HOME-ARP grant.

Responsible Agencies
Agency Role Name Department/Agency
HOME Administrator City of Fontana Development Services Department HOME-ARP Eligible Qualifying Populations and Activities HUD’s CPD Notice 21-10 Requirements for the Use of Funds in the HOME-American Rescue Plan Program establishes the requirements for funds appropriated under section 3205 of the 1792
CITY OF FONTANA - 3 - HOME-ARP ALLOCATION PLAN
American Rescue Plan Act of 2021 for the HOME Investment Partnerships Program (HOME) to provide homelessness assistance and supportive services.

The American Rescue Plan Act (ARP) defines qualifying individuals or families, including Veterans, that are:

1. Homeless, as defined in section 103(a) of the McKinney-Vento Homeless Assistance Act;

2. At risk of homelessness, as defined in section 401 of the McKinney-Vento Homeless Assistance Act;

3. Fleeing or attempting to flee domestic violence, dating violence, sexual assault, or stalking (as defined by HUD in 24 CFR 5.2003) or human trafficking (as outlined in the Trafficking Victims Protection Act of 2000 as amended [22 USC 7102]); and

4. Part of other populations, where providing supportive services or assistance under section 212(a) of the National Affordable Housing Act 42 USC 12472(a) would:
a. Prevent a family’s homelessness;
b. Serve those with the greatest risk of housing instability.

HOME-ARP funds may be used benefit qualifying populations through:

1. Tenant-based Rental Assistance (TBRA);

2. Development and support of affordable housing;

3. Provision of supportive services;

4. Acquisition and development of non-congregate shelter;

5. Nonprofit capacity building and operating assistance; and

6. Program planning and administration.
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CITY OF FONTANA - 4 - HOME-ARP ALLOCATION PLAN
Stakeholder Consultation and Public Participation
HUD requires each HOME-ARP Participating Jurisdiction to consult with agencies and service providers whose clientele include the HOME-ARP qualifying populations. Agencies that must, at a minimum, be consulted include the Continuum of Care serving the jurisdiction’s geographic area, homeless and domestic violence service providers, veterans’ groups, public housing agencies (PHAs), public agencies that address fair housing, civil rights, and the needs or persons with disabilities.

HUD also requires that each Participating Jurisdiction provide opportunities for the public to comment on the proposed Allocation Plan, including the amount of HOME-ARP funds that will be received and the range of activities that the City may undertake.

To ensure broad input into the HOME-ARP Allocation Plan from stakeholders and the public, the City engaged in consultation with stakeholders and the public, including a virtual consultation session, a survey of stakeholders, a 30-day public comment period, and a public hearing.

Stakeholder Consultation
The City of Fontana consulted with representatives from multiple agencies, groups, and organizations involved in the development of affordable housing, addressing homelessness, and the provision of services to qualifying populations in preparing this HOME-ARP Allocation Plan.

A virtual session was held July 28. 2022. Representatives from multiple agencies, groups, and organizations were invited via email to attend. Those unable to attend were invited to submit written comments via emails or schedule a phone call to share their thoughts.

The virtual consultation session included an overview of the HOME-ARP notice to inform attendees of the qualifying populations and eligible activities, an opportunity to ask clarifying questions, a request for input into needs and gaps, and priority populations and activities, and an overview of the Allocation Plan timeline and process.

A survey instrument was designed and available online and invited representatives from multiple agencies, groups, and organizations to rank the qualifying populations and eligible activities and services in order of perceived need, and the best approach for carrying out those activities for the community.
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CITY OF FONTANA - 5 - HOME-ARP ALLOCATION PLAN
The City’s virtual session was attended by four representatives of three agencies. The survey was completed by seven representatives of six agencies. All HUD-required agency types were represented in either the virtual session or the online survey.

The City attempts to maintain a current and comprehensive list of agencies, organizations and other stakeholders and invited representatives from each entity to participate in the planning process at multiple points in the planning process. If an agency did not attend meetings or participate in surveys, it was done so by the agency’s choice.

Organizations Consulted by Type and Method
Organizations Consulted by Type and Methods
Organization Consulted Type of Organization Method of
Consultation
Boy & Girls Club of
Fontana
Nonprofit, addresses needs of qualifying
populations Survey
City of Fontana Public, addresses needs of qualifying
populations Virtual Session
City of Fontana Housing
Authority
Public, addresses needs of qualifying
populations, serves as public housing authority Virtual Session Housing Authority of
the County of San
Bernardino
Public, addresses needs of qualifying
populations, serves as public housing authority Email
Inland Fair Housing and
Mediation Board
Nonprofit, addresses needs of qualifying
populations including providing civil rights and
fair housing services to the City
Survey
Inland Regional Center Nonprofit, addresses needs of qualifying populations including disabled Survey
Option House, Inc.

Nonprofit, addresses needs of qualifying
populations including those fleeing domestic
violence and other dangerous situations
Survey
Palm Communities For profit, addresses needs of qualifying populations, including affordable housing Virtual Session VA Loma Linda Medical
Center, Health Care for
Homeless Veterans
Program
Public, addresses needs of qualifying
populations including veterans Survey
Water of Life Nonprofit, addresses needs of qualifying
populations including homeless Virtual Session
City of Fontana Housing
Authority
Public, addresses needs of qualifying
populations, serves as public housing authority Survey
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CITY OF FONTANA - 6 - HOME-ARP ALLOCATION PLAN
Summary of Feedback Received from Consulted Organizations Consultation revealed strong support for the following:

Development and support of affordable housing. Participants in the virtual session discussed the need for additional affordable housing. Specific issues mentioned included the shortage of affordable housing inventory and the long waitlists to access affordable housing, whether it’s permanent supportive housing, subsidized housing, housing that accepts vouchers or other tenant-based assistance. Of respondents to the survey, 86% believed there was a high need for this activity and 14% believed there was a moderate need.

Acquisition and development of non-congregate shelter. Participants in the virtual session discussed the need for shelter in general and for specific populations including families, those fleeing domestic violence and other situations, people with service animals, the elderly and single people. There is shelter available within the City, but not enough people seeking shelter often are referred to other facilities outside the city, especially in the case of fleeing domestic violence and other dangerous situations. Of respondents to the survey, 57% believed there was a high need for this activity and 43% believed there was a moderate need.

Provision of supportive services. As part of the conversation about the development of noncongregate shelter, one participant mentioned the need for childcare assistance to shelter residents, allowing them to seek work or maintain a job. Survey respondents were asked to rate what they believed is the current need for various services eligible under HOME-ARP.

Of respondents to the survey, 100% believed there was a high need for housing search and counseling services. The other activities with the most ratings for “high need” were case management services and financial assistance costs (86%), mental health services, outpatient health services, services to special populations, and transportation assistance (71%).

Rating of Current Need for Supportive Services
Supportive Services High Need Moderate
Need Low Need No Need
Housing search and
counseling services 100% 0% 0% 0%
Case management services 86% 0% 14% 0%
Financial assistance costs 86% 14% 0% 0%
Mental health services 71% 29% 0% 0%
Outpatient health services 71% 14% 14% 0%
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Services for special
populations 71% 29% 0% 0%
Transportation assistance 71% 14% 14% 0%
Landlord/tenant liaison
services 57% 29% 14% 0%
Legal services 57% 14% 29% 0%
Outreach services 57% 29% 14% 0%
Substance abuse treatment 57% 29% 14% 0%
Credit repair services 43% 43% 14% 0%
Food assistance 43% 57% 0% 0%
Mediation services 43% 29% 29% 0%
Education Services 33% 33% 33% 0%
Job training and employment
services 29% 71% 0% 0%
Child Care Assistance 14% 57% 29% 0%
Tenant-based rental assistance (TBRA). In conjunction with affordable housing, many attendees mentioned the need to increase availability of the TBRA program and as a companion to the development of affordable housing. Of respondents to the survey, 43% believed there was a high need for this activity and 43% believed there was a moderate need.

Nonprofit capacity building and operating assistance. In the survey, respondents were asked if they believed there was a need for nonprofit capacity building and operating assistance.

Of respondents to the survey, 100% responded affirmatively that there was a need in the nonprofit sector for this assistance.

Public Participation
To provide opportunities for public participation, the City of Fontana sent an email to all agencies and individuals on its email list notifying them of the opportunity to participate in the virtual consultation session held on July 28, 2022. In addition to attending the virtual consultation session, they were asked to complete an online survey regarding their views of the level of need for the eligible activities and qualifying populations as described by the CPD Notice 21-10. Those unable to attend, or who had further comments after the virtual session were invited to email them directly to City staff.

A combined notice of public comment period and public hearing was published in the San Bernardino Sun and the Press Enterprise, on August 12, 2022 and the Fontana Herald News on August 19, 2022. The public notice was published in both English and Spanish. The San Bernardino Sun, the Press Enterprise, and the Fontana Herald qualify as newspapers of general circulation.
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Efforts to Broaden Public Participation
To broaden public participation, members of the public who are on the City’s email list were also invited via email to attend the virtual consultation session held in the formulation of the Allocation Plan.

Public Comments and Recommendations Received
To be completed after the Public Comment period and the Public Hearing.

Public Comments and Recommendations Not Accepted and Reasons Why To be completed after the Public Comment period and the Public Hearing. 1798
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Needs Assessment and Gap Analysis
The needs assessment and gap analysis must evaluate the size and demographic composition of HOME-ARP qualifying populations, and unmet needs of HOME-ARP qualifying populations. In addition, the needs assessment and gap analysis must identify any gaps within its current shelter and housing inventory, and service delivery system. This needs assessment and gap analysis focuses on the following:

1. Sheltered and unsheltered homeless populations;

2. Currently housed populations at risk of homelessness;

3. Other families requiring services or housing to prevent homelessness; and

4. Those at greatest risk of housing instability or unstable housing situations.

Housing Inventory Count
The annual Housing Inventory Count (HIC) provides useful context regarding the number and type of beds and units that are available for individuals and families experiencing on any given night. The following tables summarize beds and units available as of January 2021 in the City by bed type.

Emergency housing beds include emergency shelter and transitional housing; emergency shelter generally allows for short-term or nightly stays, while transitional housing generally allows for a stay up to 24 months. Both types of emergency housing may include supportive services designed to facilitate movement to independent living.

The 2021 HIC did not include details about housing available for subpopulations. (HIC) Emergency Housing Beds Available January 2021
Family Units Family Beds Adult-Only
Beds
Child-Only
Beds
Total YearRound Beds
Emergency
Shelter 0 0 10 0 10
Transitional
Housing 7 25 4 0 36
Total
Emergency
Housing Beds
7 25 14 0 46
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Rapid rehousing provides security and utility deposits and/or monthly rental and utility assistance for rental units that rent for less than the fair market rent. Assistance is generally provided for the shortest period of time necessary for a household to gain stable housing and can range from 3 to 24 months. Permanent supportive housing provides for an unlimited lease term; residents receive services necessary to promote continued housing stability.

Rapid Rehousing and Permanent Supportive Housing Available January 2021 Family Units Family Beds Adult-Only
Beds
Child-Only
Beds
Total YearRound Beds
Rapid
Rehousing 7 20 1 0 21
Permanent
Supportive
Housing
0 0 0 0 0
Total YearRound Beds 20 1 0 21
Size and Demographic Composition of Qualifying Populations Sheltered Homeless Populations
The 2022 sheltered Point-in-Time count identified 7 people experiencing sheltered homelessness in the City on February 24, 2020. People are considered sheltered when they are residing in emergency shelter or transitional housing, but not when they are receiving rapid rehousing assistance or residing in permanent supportive housing. Among individuals experiencing sheltered homelessness:
 7 (100%) were housed using motel vouchers
San Bernadino County Homeless Partnership does the official PIT count in the county and does not publish family status.

Unsheltered Homeless Populations
The 2022 unsheltered Point-in-Time count identified 149 people experiencing sheltered homelessness in the City on February 24, 2022. Among individuals experiencing unsheltered homelessness who were interviewed:
 67 (74.4%) were male
 23 (25.6%) were female
 5 (5.6%) were aged 18-24
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 29 (32.2% were aged 25-39
 22 (24.4%) were aged 40-49
 24 (26.7%) were aged 50-61
 10 (11.1%) were aged 62 or over
 55 (61.1%) were White
 20 (22.2%) were African American or Black
 40 (46.7) were Hispanic
 32 (35.6%) became homeless for the first time during the past 12 months  20 (22.2%) were chronically homeless
 29 (32.2%) were released from a correctional institution during the past year  55 (61.1%) had no monthly income
At-risk of Homelessness
Households at risk of homelessness are those with incomes at or below 30% AMI that lack sufficient resources or support networks to prevent homelessness, and  Have moved more than two times due to economic reasons in the past 60 days, or  Are doubled up with another household due to economic hardship, or  Will be evicted within 21 days, or
 Live in a hotel or motel without financial assistance from a nonprofit or government entity, or
 Live in an efficiency apartment and are overcrowded, or  Are exiting a publicly-funded institution or system of care The CHAS 2014-2018 Data Table 10 indicates that there are approximately 3,320 households with incomes at or below 30% AMI that are at risk of homelessness in the City.

Fleeing or Attempting to Flee Domestic Violence, Dating Violence, Sexual Assault, Stalking or Human Trafficking
The State of California Department of Justice maintains statistics on domestic violence statewide by jurisdiction. In 2018, the Fontana Police Department responded to a total of 720 calls related to domestic violence. Of these calls:
 599 of these domestic incidents did not involve a weapon  134 calls involved a weapon
o 2 domestic incidents involved a firearm
o 9 domestic incidents involved a knife or cutting instruments 1801
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o 72 domestic incidents involved other dangerous weapons o 37 domestic incidents involved personal weapons (i.e. feet or hands, etc.) o 52 domestic incidents involved strangulation
o 5 domestic incidents involved suffocation
Therefore, if each one of these calls represented a household with member(s) who required housing assistance, it can be estimated that there were up to 720 households in 2018 who were in need of some form of housing assistance. The form of housing assistance required may vary depending on the specific circumstances of each case.

Other Populations
Other populations, as defined by HOME-ARP, include those who:

1. Are currently housed and at risk of repeat homelessness;

2. Have incomes at or below 30% AMI and are experiencing severe housing cost burden; and

3. Otherwise meet the definition of at risk of homelessness and have incomes income of more than 30% and at or below 50%
Other Populations: At greatest risk of housing instability – Households with incomes <30% AMI and experiencing housing cost burden
The 2014-2019 HUD CHAS data indicates there are 3,320 renter households with an annual income at or below 30% AMI with a cost burden that are at greatest risk of housing instability.

These renter households include:
 Two-person households, one or both of whom are age 62 or older: 35  Small families with 2-4 non-elderly people: 35
 Large families with 5 or more people: 4
 People living alone or with non-relatives who are age 62 or older: 40  People living alone or with non-relatives, none of whom are age 62 or older: 10 Other Populations: At greatest risk of housing instability – Households with incomes 30-50% AMI that meet HUD’s §91.5 definition of at risk of homelessness
Households in this category are those with incomes at more than 30% and at or below 50% AMI that lack sufficient resources or support networks to prevent homelessness, and 1802
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 Have moved more than two times due to economic reasons in the past 60 days, or  Are doubled up with another household due to economic hardship, or  Will be evicted within 21 days, or
 Live in a hotel or motel without financial assistance from a nonprofit or government entity, or
 Live in an efficiency apartment and are overcrowded, or  Are exiting a publicly-funded institution or system of care HUD Comprehensive Housing Affordability Strategy (CHAS) 2014-2018 Data Table 10 provides information on households that include more than one family, household income level and overcrowding. The CHAS data indicates that there are approximately 3,310 households with incomes more than 30% and at or below 50% AMI that are at risk of homelessness in the City because of at least one of the housing problems as defined by HUD. In addition, 70 are living in households with more than one family.

Unmet Housing Needs of Qualifying Populations
The greatest unmet housing need of qualifying populations is the availability of affordable rental housing. As the table below shows, only 4% of the nearly 19,000 rental units in the City are available to households with incomes at or below 50% AMI. The level of need for affordable rental units for households with incomes at or below 50% AMI is nearly three times the available units, according to HUD CHAS data for 2014-2018.

Housing Needs Inventory and Gap Analysis

Available
Units
Level of
Need
HH with at
least 1 Housing
Problem
GAP
(units-level of
need)
Total Rental Units 18,950
<=30% AMI 175 3,320 2,910 (3,145)
>30% to <=50%
AMI
80 3,310 3,060 (3,230)
Total <=50% AMI 255 6,630 5,970 (6,375)
Unmet Service Needs of Qualifying Populations
Based on consultation with service providers in the City, the greatest unmet service needs of qualifying populations including sheltered and unsheltered homeless populations, currently housed populations at risk of homelessness, other families requiring services or assistance to prevent homelessness, and those at greatest risk of housing instability or in unstable housing situations are:
 Housing search and counseling services
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 Case management services
 Financial assistance costs
 Mental health services
 Outpatient health services
 Services for special populations
 Transportation assistance
Additional unmet service needs of qualifying populations, including sheltered and unsheltered homeless populations, currently housed populations at risk of homelessness, other families requiring services or assistance to prevent homelessness, and those at greatest risk of housing instability or in unstable housing situations include the following as described in HUD CPD Notice 2021-10, as may be amended:
 Landlord/tenant liaison services
 Legal services
 Outreach services
 Substance abuse treatment
 Credit repair services
 Food assistance
 Mediation services
 Education services
 Job training and employment services
 Childcare assistance
Current Resources Available to Assist Qualifying Populations Current available resources include:
 Congregate beds and non-congregate shelter units
 Supportive services
 Affordable and permanent supportive housing
 Housing vouchers
Current Resources: Congregate Beds and Non-congregate Shelter Units In February 2022, there were seven congregate beds and no beds in non-congregate shelter units. Congregate beds include emergency, safe haven, and transitional housing beds and units. Non-congregate shelter includes permanent supportive housing and rapid re-housing. 1804
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Current Resources: Supportive Services
San Bernardino County’s homeless Continuum of Care (CoC) is comprised of a network of public, private, faith-based, for-profit, and non-profit service providers who utilize several federal, state and local resources to provide services for homeless people. The region’s municipalities, including the City of Fontana, also provide resources for services that assist the homeless and those at risk of becoming homeless. The non-profit and faith-based community plays a key role in the current CoC system. Hundreds of agencies throughout the County provide programs ranging from feeding the homeless on the street to creating permanent supportive housing opportunities. These services are available to homeless families with children, and single men and women. The non-profit and faith-based community also serves special needs populations, such as victims of domestic violence, veterans, the disabled and youth.

Current Resources: Tenant-based Rental Assistance
Currently there are no HOME funds being used in Fontana to support Tenant-based Rental Assistance vouchers.

Current Resources: Affordable and Permanent Supportive Rental Housing There are 28 apartment complexes within the City that have been identified by the Fontana Housing Authority as being affordable rental housing units. The City makes the contact information on these properties available to people and agencies assisting people seeking housing. The properties offer at least 2,484 affordable units. Of those properties, three properties are project-based Housing Choice Voucher programs, and nine rent only to seniors.

Of the 13 complexes renting to the general population that responded to the survey, 10 complexes (with a total of 176 units) had waiting lists that totaled more than 4,000 names (there may be duplicates between the lists); two complexes do not maintain a waiting list; and at least four had closed their list. Based on the survey and information found online, none of the complexes had units available for rent.

Of the three complexes renting only to seniors that responded to the survey, two complexes reported waiting lists of more than 400 names (there may be duplicates) and reported that the lists included names dating back from two to five years ago. Based on the survey and information found online, none of the complexes had units available. 1805
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Current Resources: Housing Vouchers
The Housing Authority of the County of San Bernardino currently has 8,714 Housing Choice Vouchers deployed within the County. Of those, there are 634 vouchers deployed in the City.

The Housing Authority also maintains a waiting list for those vouchers. It is currently using a waiting list from 2019. There are 5,840 names still on the list and the list will probably be depleted in the next six to eight months if funding continues. Applications were taken for the 2022 waiting list between June 7 and June 30, 2022. About 26,000 applications were received and are currently being processed.

The City does not sponsor any Housing Choice Vouchers.

Shelter, Housing and Service Delivery System Gaps
Shelter Gap
There is an estimated need for 156 additional shelter beds based on the 2022 PIT count. The PIT count found that there were 7 persons in emergency shelter in the City but 149 unsheltered persons in a variety of situations, including on the street, in tents or makeshift shelters, or in cars, vans or RVs/campers.

The 2022 PIT count does not define how many were individuals, in family units, or children.

Tenant-based Rental Assistance Gap
There is an estimated gap of 4,460 tenant-based rental assistance vouchers for households with income less than 50% AMI and paying more than 50% of household income for rent, including utilities.

Tenant-based Rental Assistance Gap
Renter Households with Income at or below 50% AMI paying more than 50% of income for rent, including utilities
4,460
TBRA vouchers available 0
TBRA gap 4,460
The tenant-based rental assistance vouchers gap was calculated using HUD CHAS data Table 7 and is equal to the number of renter households with income at or below 50% AMI and paying more than 50% of household income for rent, including utilities.

Affordable Rental Housing Gap
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There is an estimated gap of 2,600 rental units affordable to renter households with income at or below 30% AMI and an estimated gap of 1,860 rental units affordable to renter households with income more than 30% and at or below 50% AMI.

Affordable Rental Unit Gap
Renter Households with Income at or below 30% AMI paying more than 50% of income for rent, including utilities
2,600
Renter Households with Income 30% to 50% AMI paying more than 50% of income for rent, including utilities
1,860
Total Affordable Rental Unit Need 4,460
The number of Affordable Rental Units was calculated using HUD CHAS Data Table 7 and is equal to the number of renter households’ income category paying more than 50% of household income for rent, including utilities.

Permanent Supportive Rental Housing Gap
Permanent supportive rental housing is a subset of the affordable rental housing gap, primarily for households with income at or below 30% AMI. In addition to affordable rent, permanent supportive housing provides an array of services necessary to help people with disabilities and/or experiencing chronic homelessness to retain housing stability. There is an estimated gap of 663 permanent supportive housing units in the City.

Permanent Supportive Housing Gap
Population of Fontana Census 2020 208,393
Per capita estimate of permanent supportive housing need .003183 Estimated need for Permanent Supportive Housing 663
Permanent Supportive Housing Available 0
Total Permanent Supportive Housing Gap 663
The number of Permanent Supportive Rental Housing Units needed was calculated by multiplying the current population of the City, according to the California Census 2020, by the per capita need (.003182) in California as calculated by the Corporation for Supportive Housing.

Housing Voucher Gap
The size of the housing voucher gap is in the City unknown. Fontana represents 9.6% of the county population (2,181,654 in 2020). The current waiting list is 5,840, and it is conceivable that there could be 560 names on the waiting list currently residing in Fontana. In addition, there are 26,000 1807
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applications for the new list. Using the same formula, and assuming that the applicants on the 2019 have reapplied for the new list, there could be another 1,900 applicants in the City hoping to get housing assistance with a housing voucher.

Service Delivery System Gap
To identify gaps in the service delivery system, the City relied on its consultation with stakeholders and experience working with the organizations working in the City. The stakeholders believe that the most critical service gaps are in the areas of job training and employment services, housing search and housing counseling services, childcare, mental health services, outreach services, and case management. The stakeholders also believed there was a need for assistance with general administrative costs and building capacity among the service providers serving the City’s qualifying populations.

Characteristics of Housing Associated with Increased Risk of Homelessness for Other Populations
For other populations, severe housing cost burden, or paying more than 50% of household income for rent and utilities is the primary characteristic of housing associated with the risk of homelessness in the City. The HUD CHAS Data Table 7 indicates there are 6,665 households (owners and renters) at or below 50% AMI who are spending more than 50% of the household income on rent and utilities.

Priority Needs for Qualifying Populations
Homeless. An article on the website policyadvice.net, The State of Homelessness in the US2022, uses PBS as a source for the following statistics:
 25% of homeless people have a mental illness
 38% have an alcohol abuse issue
 26% have a drug abuse issue
That information, and other research, indicates that there is a need for mental health services and substance abuse services for the homeless in the City. Participants in the consultation process believed that homelessness was best served by the development of additional shelter beds, affordable housing, and TBRA assistance for housing. The priority needs for supportive services included housing search, mental health services, financial assistance, and case management.
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At risk of homelessness. One of the indicators of risk of homelessness is housing cost burden. According to the National Alliance to End Homelessness, in their State of Homelessness: 2021 Edition, households experiencing a severe housing cost burden and households “doubling up” or sharing housing are both at a greater risk of homelessness than they were in 2007. They used numbers from 2019, before the COVID-19 pandemic and project that reduced work hours and elevated unemployment will have increased those at risk.

Participants in the consultation process believed those at risk of homelessness in the City would benefit from additional affordable housing, TBRA assistance for housing, and supportive services offering housing counseling, fair housing, credit repair services, and eviction defense.

Fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking or human trafficking. The National Resource Center on Domestic Violence reports that domestic violence is frequently an immediate cause or precursor to homelessness and housing instability and that more than a third of domestic violence survivors report becoming homeless immediately after separating from their partners. The national Institute of Justice reports that one homeless woman in four is homeless mainly because of her experiences with violence. That violence can include categories of domestic violence, dating violence, sexual assault, stalking or human trafficking.

Participants in the consultation process believed those dealing with fleeing unsafe relationships or living situations, would benefit from supportive services offering housing counseling, mental health services, fair housing, case management services affordable housing and TBRA assistance.

Housing instability and homelessness prevention. Housing instability encompasses a number of challenges, such as having trouble paying rent, overcrowding, moving frequently, staying with friends or family, or rent burden. Those populations affected by housing instability can include children and people who have spent time in prison. According to the US Department of Health and Human Services, those affected by housing instability may live in substandard housing subjecting them to health and safety risks, live in overcrowded units, or forced moves that may result in homelessness.

Participants in the consultation process believed that housing instability, often caused by rent burden, and preventing homelessness was best addressed with affordable rental housing, TBRA assistance, non-congregate shelter, and supportive services including job training and 1809
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employment services, housing search and housing counseling services, childcare, mental health services, outreach services, and case management.

HOME-ARP Activities
The City will solicit applications from developers, service providers, and/or nonprofits to implement eligible activities and/or develop shelter and housing. A Notice of Funds Available (NOFA) will be issued. The NOFA will, at a minimum, specify eligible activities, eligible applicants, minimum and maximum funding amounts, application thresholds, and will provide instructions on how to submit a proposal. The City will not directly administer HOME-ARP activities beyond program administration and planning and no developers, service providers, and/or nonprofits are responsible for program administration and planning on behalf of the City.

Uses of HOME-ARP Funding
Activity Funding Amount Percent of
Allocation
Statutory
Limit
Non-congregate Shelter
Affordable Rental Housing $2,238,533
Tenant-based Rental Assistance
Supportive Services
Nonprofit Operating Assistance 5%
Nonprofit Capacity Building 5%
Administration and Planning $395,035 15%
Total HOME-ARP Allocation $2,633,568

Rationale for Uses of HOME-ARP Funding
There is need for more affordable rental housing within the City as evidenced by the consultation process and the needs assessment and gap analysis undertaken in preparation of this allocation plan.

Affordable Rental Housing. Participants in the virtual session discussed the need for additional affordable housing. Specific issues mentioned included the shortage of affordable housing inventory and the long waitlists to access affordable housing, whether it’s permanent 1810
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supportive housing, subsidized housing, housing that accepts vouchers or other tenantbased assistance.

According to the CHAS 2014-2018 data, there were 3,320 households with incomes at or below 30% AMI and 3,310 households with incomes more than 30% but at or below 50% AMI that are at risk of homelessness in the City because of at least one of the housing problems as defined by HUD. Only 4% of the nearly 19,000 rental units in the City are available to households with incomes at or below 50% AMI. Allocating these funds to develop additional affordable rental housing will address the need in the community to serve those households at risk of homelessness.

Administration and planning. HOME-ARP administration and planning funds were used to pay City staff working on this allocation plan. HOME-ARP administrative and planning funds were not used to hire consulting services in the preparation of this plan. After the Allocation Plan is approved, administration and planning funds will be used for standard expenses in managing the HOME-ARP program, including the costs of City staff, and hired consultants.

Consultants may assist with administrative tasks such as grant administration, monitoring, and reporting.

HOME-ARP Housing Production Goals
The City of Fontana will produce an estimated 25 affordable rental housing units with HOMEARP funds. The units will be available to households at or below 50% AMI.

Preferences
The City of Fontana will not provide preferences to any population or subpopulation.

HOME-ARP Refinancing Guidelines
The City of Fontana does not plan to use HOME-ARP funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds. Therefore, refinancing guidelines pursuant to 24 CFR 92.206(b) are not applicable to this HOME-ARP Allocation Plan.
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APPENDIX A
Citizen Participation
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Summary of Citizen Participation Comments
Allocation Plan Public Review and Comment Period August 13 to September 13, 2022
To be completed after the Public Comment period and the Public Hearing.

Public Hearing before City Council on September 13, 2022 To be completed after the Public Comment period and the Public Hearing.

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APPENDIX B
SF-424 Grant Application,
SF-424B Assurances,
SF-424D Assurances, and
Allocation Plan Certifications
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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-1625 Agenda Date: 9/13/2022
Agenda #: B. Category: Public Hearing
FROM:

Housing
SUBJECT:

Public Hearing for Consolidated Annual Performance Evaluation Report (CAPER) and Adoption of the Community Development Block Grant-CARES Act (CDBG-CV) Substantial Amendment RECOMMENDATION:

1. Conduct a public hearing for the Consolidated Annual Performance and Evaluation Report prepared for the U.S. Department of Housing & Urban Development to report on specific Federal housing assistance and community development activities undertaken by the City of Fontana during Fiscal Year 2021-2022; and

2. Conduct a public hearing for the adoption of the Community Development Block GrantCARES Act (CDBG-CV) funding Action Plan Substantial Amendment prepared for the U.S.

Department of Housing & Urban Development; and

3. Authorize the City Manager to execute and transmit any documents necessary to submit the Consolidated Annual Performance and Evaluation Report and Community Development Block GrantCARES Act (CDBG-CV) Substantial Amendment, along with any comments received during the public hearing and public comment period, to the Department of Housing & Urban Development.

COUNCIL GOALS:
· Increase citizen involvement by informing the public about issues, program, and accomplishments.
· Concentrate on Inter-governmental relations by establishing partnerships and positive working relationships with other public agencies providing services to residents and local businesses.

DISCUSSION:

As an entitlement jurisdiction of the U.S. Department of Housing and Urban Development (HUD), the City of Fontana is required to annually prepare and submit the Consolidated Annual Performance and Evaluation Report (CAPER) to HUD. The CAPER document summarizes the City’s use of federal entitlements in a given fiscal year.

In fiscal year 2021-2022, the City of Fontana received $2,130,919 in Community Development Block Grant (CDBG) Program funds, $726,670 in HOME Investment Partnerships (HOME) Program funds, and $179,056 in Emergency Solutions Grant (ESG) Program funds. The 2021-2022 CAPER evaluates the City’s achievement of goals established in the One-Year Action Plan for FY 2021-2022 and assesses the City’s overall performance during fiscal year 2021-2022 in meeting priorities City of Fontana Page 1 of 3 Printed on 9/7/2022
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File #: 21-1625 Agenda Date: 9/13/2022
Agenda #: B. Category: Public Hearing
and assesses the City’s overall performance during fiscal year 2021-2022 in meeting priorities identified in the first year of the City’s adopted Five-Year Consolidated Plan (2020-2024).

The CAPER continues to provide a summary of outcomes associated with HUD funding allocated through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Through this Act, the City received $2,467,484 in additional CDBG funds and $2,343,005 in ESG funds specifically earmarked to respond to the effects of the COVID-19 pandemic.

In fiscal year 2021-2022, the City of Fontana successfully carried out the actions outlined in both the One-Year Action Plan and the Consolidated Plan.

In July 2020, October 2020 and October 2021, the City approved substantial amendments to allocate the Community Development Block Grant-CARES Act (CDBG-CV) and Emergency Solutions GrantCARES Act (ESG-CV) funds respectively to appropriately address the needs of the community during the Coronavirus (COVID-19) pandemic authorized through the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

This amendment will revise the activities of the CDBG-CV allocation to include funds for hotel/motel vouchers that will assist the homeless population with temporary non-congregate shelter to prevent, prepare for, and respond to the COVID-19 pandemic.

The City proposes the following revised CDBG-CV activities:

Activity Name Proposed
Funding
Amount
Description
Housing Assistance $1,633,988 Provide short-term (max 6 consecutive months) of housing assistance to
households adversely impacted by
COVID-19.

Homeless Services
Operations
$ 340,000 Provide operating assistance to
homeless services operations.

Administration $ 493,496 Overall administration of the CDBG-CV Programming
TOTAL $2,467,484
As required by HUD, a preliminary draft of the CAPER has been made available for public review for a minimum of 15 days. From August 30th through September 13, 2022, copies of the draft CAPER were available to residents of the City of Fontana and other interested parties on the City’s webpage and various City buildings.

Notice of availability of the CAPER and invitation to comment was published in the Press Enterprise, the San Bernardino Sun and El Chicano newspapers. To date, we have received no written City of Fontana Page 2 of 3 Printed on 9/7/2022
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Agenda #: B. Category: Public Hearing
comments on the CAPER document.

FISCAL IMPACT:

No fiscal impact. Funds were appropriated and allocated in prior fiscal years in CDBG Fund # 362 and HOME Fund #363.

MOTION:

Approve staff recommendation.

City of Fontana Page 3 of 3 Printed on 9/7/2022
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DRAFT
2021-2022 CONSOLIDATED ANNUAL PERFORMANCE

AND EVALUATION REPORT
JULY 1, 2021 THROUGH JUNE 30, 2022
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City of Fontana 2020-2021 CAPER i
Table of Contents
CR-05 - Goals and Outcomes ................................................................................................ 1 CR-15 - Resources and Investments 91.520(a)...................................................................... 8 CR-20 - Affordable Housing 91.520(b)...................................................................................14 CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c)...............16 CR-30 - Public Housing 91.220(h); 91.320(j) .........................................................................19 CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j)...................................................................20 CR-40 - Monitoring 91.220 and 91.230..................................................................................25 CR-45 - CDBG 91.520(c).......................................................................................................27 CR-50 - HOME 91.520(d)......................................................................................................28 CR-60 - ESG 91.520(g) (ESG Recipients only) .....................................................................30 CR-65 - Persons Assisted .....................................................................................................32 CR-70 – ESG 91.520(g) - Assistance Provided and Outcomes .............................................35 CR-75 – Expenditures ...........................................................................................................36 Appendices
Appendix A – Public Notices ...................................................................................................... A Appendix B – Summary of Citizen Participation Comments ....................................................... B Appendix C – IDIS Reports ........................................................................................................C 1820
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1821
City of Fontana 2020-2021 CAPER 1
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-05 - Goals and Outcomes
Progress the jurisdiction has made in carrying out its strategic plan and its action plan.

91.520(a)
The 2021-2022 Consolidated Annual Performance and Evaluation Report (CAPER) is the City of Fontana’s report to the U.S. Department of Housing and Urban Development (HUD) describing the use of federal Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME) and Emergency Solutions Grant (ESG) funds. The CAPER reports on the first program year of the 2020-2024 Consolidated Plan period, covering July 1, 2021 to June 30, 2022.

The City receives CDBG, HOME and ESG funds from HUD on a formula basis each year, and in turn, implements projects and awards grants and loans to individual households and nonprofit, for-profit or public organizations for projects in furtherance of the adopted Consolidated Plan. In addition to the formula grants, this CAPER includes data related to special allocations awarded through the Coronavirus Aid, Relief and Economic Security (CARES) Act for the CDBG and ESG programs. These programs are respectively titled CDBG-CV and ESG-CV.

The activities reported in this CAPER were determined and planned in the City’s 2021-2022 Annual Action Plan. The Annual Action Plan was approved at a Public Hearing on April 27, 2021.

Following the approval of the Annual Action Plan, the City completed two non-substantial amendments to the plan, to address a minor increase in annual increase in annually allocated funds and ESG project funding.

For the 2021-2022 program year, the City received $2,130,919 of CDBG funds and $104,626 in prior year resources; $726,670 of HOME funds, and $1,303,193 in prior year resources; and $179,056 in ESG funds for a total investment of $4,444,464. In FY2020 The City received $2,467,484 in CDBG-CV Funds and $2,343,005 in ESG-CV funds. As of June 30, 2022, the City of Fontana had disbursed 55 percent of CDBG-CV.

The investment of CDBG, HOME and ESG funds was a catalyst for positive change in the community. Together with other federal, state, and local investments, HUD resources allowed the City and its partners to:
• Provide Fair Housing services to 618 individuals,
• Provided Public Safety services to 59,140 individuals, • Provided 45 seniors with recreational scholarships,
• Acquired one property,
• Completed owner rehabilitation of 13 housing units, and • Completed construction of 8 new affordable rental units.

During the 2021-2022 Program Year, the City utilized CDBG-CV to support Short-term housing assistance (CDBG-CV) to 66 households
Table 1 provides a summary of the five-year and one-year accomplishments for the period ending June 30, 2022, arranged by each of the Strategic Plan Goals included in the 2020-2024 Strategic Plan of the Consolidated Plan.
1822
City of Fontana 2020-2021 CAPER 2
OMB Control No: 2506-0117 (exp. 07/31/2015)
Comparison of the proposed versus actual outcomes for each outcome measure submitted with the consolidated plan and explain, if applicable, why progress was not made toward meeting goals and objectives. 91.520(g) Table 1 - Accomplishments – Strategic Plan & Program Year to Date Goal Category Source /
Amount
Indicator Unit of
Measure
Expected:

Strategic
Plan
Actual:

Strategic
Plan
Percent
Complete
Expected:

Program
Year
Actual:

Program
Year
Percent
Complete
Affordable
Housing
Preservation
Affordable
Housing
CDBG:
$2,818,250
Homeowner
Housing
Rehabilitated
Household
Housing
Unit
100 19 19% 10 13 130%
Affordable
Rental
Housing
Development
Affordable
Housing
CDBG:
$3,213,800
HOME:
$3,935,685
Rental units
constructed
Household
Housing
Unit
22 8 36% 11 8 73%
Rental units
rehabilitated
Household
Housing
Unit
7 0 0% 3 0 0%
Homeowner
Housing
Rehabilitated
Household
Housing
Unit
0 0 0% 2 0 0%
City of
Fontana
CDBG and
HOME
Program
Admin
Administration
CDBG:
$1,924,496
HOME:
$357,289
Other Other 5 2 0% 1 1 100%
1823
City of Fontana 2020
-2021 CAPER3
OMB Control No: 2506-0117 (exp. 07/31/2015)
City of
Fontana
Public
Facilities
Improvements
Non-Housing
Community
Development
CDBG: $1,000,000
Public Facility
or
Infrastructure
Activities other
than
Low/Moderate
Income
Housing
Benefit
Persons
Assisted 20,000 0 0% 0 0 0%
COVID-19
Response
Non-Housing
Community
Development
Prevent,
prepare, and
respond to
COVID-19
CDBG-CV:
$2,467,484
ESG-CV:
$2,343,005
Public service
activities other
than
Low/Moderate
Income
Housing
Benefit
Persons
Assisted 200 2190 110% - 66 -
Tenant-based
rental
assistance /
Rapid
Rehousing
Households
Assisted 90 5 6% 5
Homeless
Person
Overnight
Shelter
Persons
Assisted 296 37 13%
Homelessness
Prevention
Persons
Assisted 156 140 93%
Fair Housing
Services
Affordable
Housing
CDBG: $175,000 Other Other 450 779 173% 90 618 687%
1824
City of Fontana 2020-2021 CAPER 4
OMB Control No: 2506-0117 (exp. 07/31/2015)
Homeless
Assistance Homeless ESG:
$898,375
Tenant-based
rental
assistance /
Rapid
Rehousing
Households
Assisted 250 0 0% 6 0 0%
Homelessness
Prevention
Persons
Assisted 500 94 18% 116 0 0%
Public
Services for
low-income
families
Non-Housing
Community
Development
CDBG:
$1,578,886
Public service
activities other
than
Low/Moderate
Income
Housing
Benefit
Persons
Assisted 100,000 118,631 119% 2,200 59,230 2,692%
1825
City of Fontana 2021-2022 CAPER 5
OMB Control No: 2506-0117 (exp. 07/31/2015)
Assess how the jurisdiction’s use of funds, particularly CDBG, addresses the priorities and specific objectives identified in the plan, giving special attention to the highest priority activities identified.

The 2020-2024 Consolidated Plan identified seven high priority goals of the city. During the 2021- 2022 program year the city made progress toward meeting these goals while working in an environment which continues to be impacted by the effects of the pandemic.

Preservation of the supply of affordable housing, specifically existing affordable housing stock occupied by low- and moderate-income households, was achieved through the city’s housing rehabilitation programs. In program year 2021-2022, the housing rehabilitation programs rehabilitated 13 housing units.

The city worked to expand the supply of affordable housing in partnership with housing developers. CDBG and HOME funds may be leveraged in support of the development of new rental housing units affordable to households earning less than 30, 60, or 80 percent of Area Median Income (AMI), including units reserved for residents with special needs. In addition, the City may use CDBG and HOME funds to acquire and rehabilitate existing single family and multifamily housing units to increase the supply of affordable rental housing for its lower-income households. In program year 2021-2022, the Sierra Ramona project, which received HOME funds, was completed. The eight units of housing are fully leased; six to households earning 0-30 percent of AMI, and two to households earning 30-50 percent of AMI. The City also acquired a 1,221 square foot residential property on Upland Avenue and rehab will be completed in the next fiscal year. The Southridge Apartment Project continues to make progress. It is anticipated this project will bring 11 new units of affordable housing to market the next fiscal year.

Ensuring equal access to housing opportunities by affirmatively furthering fair housing choice through the provision of fair housing education, counseling, anti-discrimination and landlordtenant mediation services is a high priority goal for the city. In program year 2021-2022 Inland Fair Housing & Mediation Board served 618 residents of Fontana.

Prevention and elimination of homelessness is a high priority goal for the city. Fontana supports a continuum of services to prevent and eliminate homelessness including but not limited to homeless prevention programs, emergency shelter and transitional housing. In program year 2021-2022 homeless prevention services were provided to many people in need.

Providing a range of public services to low-income residents to prevent homelessness and ameliorate the effects of poverty is a high priority to the city. Through the 2021 public safety program CDBG funds were used to support the City's Multiple Enforcement Team (MET), which will provide a balanced approach in traditional law enforcement services, along with conducting outreach, education and providing resources to the homeless population. The MET worked directly with the homeless to reduce crime relating to homelessness, calls for service, resources to medical professionals and city staff. The City also provided funding for the recreational scholarship program which benefitted 45 low-income seniors. 1826
City of Fontana 2021-2022 CAPER 6
OMB Control No: 2506-0117 (exp. 07/31/2015)
Improving city public facilities and infrastructure to benefit low- and moderate-income residents or those presumed under HUD regulations to be low- and moderate-income such as the elderly and disabled adults is a high priority goal. Infrastructure projects have a long ramp up period. Funds were not allocated in the 2021-2022 program year.

In program year 2021-2022 the city continued efforts to prevent, prepare and respond to COVID-19 through on-going CDBG-CV and ESG-CV funded programs.

CDBG-CV funded the Emergency Housing Assistance Program which provided subsistence payments in the form of rent and mortgage relief to low- and moderate-income households. This program was funded with $1,973,988 in program year 2020-2021. In 2020-2021 151 households received assistance. Program participation dropped significantly in 2021-2022 to 66 households.

In program year 2021-2022 $464,798 were expended.

ESG-CV funded programming included street outreach, shelter, homeless prevention, rapid rehousing, data collection, and administration. The city allocated $2,343,005 to these activities in program year 2020-2021. The City continued to fund homeless services in the 2021-2022 program year benefitting many households experiencing and at risk of experiencing homelessness.
1827
City of Fontana 2021-2022 CAPER 7
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-10 - Racial and Ethnic composition of families assisted Describe the families assisted (including the racial and ethnic status of families assisted).

91.520(a)
Table 2 – Table of assistance to racial and ethnic populations by source of funds Race CDBG HOME ESG
White 22
Black or African American 14
Asian 2 1
American Indian or American Native 5
Native Hawaiian or Other Pacific Islander 0
Total 43 1
Hispanic 31 3
Not Hispanic 0
Total 31 3
Narrative
Table 2 provides an aggregate of race and ethnicity data for the combined number of people, families, households or housing units reported as complete during the program year based on accomplishment data from all CDBG, HOME, and ESG activities reported in HUD’s Integrated Disbursement and Information System (IDIS). Based on this information, an array of persons, families, households or housing unit occupants benefitted from CDBG, HOME, or ESG funded housing, and public service projects during the program year. It should be noted that two CDBG participants identified as multi-racial, and seven HOME participants identified as multi-racial.

CDBG-CV served a total of 66 individuals. The racial and ethnic composition of those served is a follow: White (34 individuals); Black or African American (16 individuals); Asian (11 individuals); American Indian or American Native (3 individuals); Other multi-racial (2 individuals); Hispanic (35 individuals).
1828
City of Fontana 2021-2022 CAPER 8
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-15 - Resources and Investments 91.520(a)
Identify the resources made available
Table 3 - Resources Made Available
Source of Funds Resources
Made
Available ($)
Amount
Expended During
Program Year ($)
CDBG $2,235,545 $1,674,847
HOME $2,029,863 $118,357
ESG $179,056
CDBG-CV $2,467,484 $464,798
ESG-CV $2,343,005
Narrative
The federal, state, local and private resources available for the implementation of projects during the 2021-2022 program year are identified in Table 3. The CDBG resources included $2,130,919 in formula grant funds and $104,626 in prior year resources for a total of $2,235,545. The HOME resources included $726,670 formula funds and $1,303,193 in prior year resources for a total of $2,100,000. The ESG resources included $179,056 in formula funds.

The City is prioritizing the investment of HOME funds in support of the Southridge Apartment project that it is anticipated will expand the supply of affordable housing by 11 units available to 30%, 60%, and 80% AMI households. Significant HOME funds are available to finance this project, which is anticipated to be completed in fiscal year 2022-2023.

To prevent, prepare for and respond to the coronavirus, the City received a total of $2,467,484 in CDBG-CV funds and $2,343,005 in ESG-CV funds. A total of $1,572,361 CDBG-CV remained available at the beginning of the 2021-2022 program year. 1829
City of Fontana 2021-2022 CAPER 9
OMB Control No: 2506-0117 (exp. 07/31/2015)
Identify the geographic distribution and location of investments Table 4 – Identify the geographic distribution and location of investments Target Area
Planned
Percentage of
Allocation
Actual
Percentage of
Allocation
Narrative Description
Citywide 85% 85% Public services mostly serve low- and
moderate-income areas.

Low- and
Moderate-Income
Areas
10% 15%
There were no capital projects in the
program year. Only the public safety
program was restricted to low- and
moderate-income areas.

Narrative
The actual percentages of allocation in the table above reflect the City’s CDBG formula allocation excluding the City’s planned administrative costs. For Program Year 2021-2022, the City identified one activity to exclusively benefit its low- and moderate-income areas. That was its public safety program to which $279,637 was allocated. This amounted to 15 percent of the City’s CDBG allocation not including program administration or CV funds. 1830
City of Fontana 2021-2022 CAPER 10
OMB Control No: 2506-0117 (exp. 07/31/2015)
Leveraging
Explain how federal funds leveraged additional resources (private, state and local funds), including a description of how matching requirements were satisfied, as well as how any publicly owned land or property located within the jurisdiction that were used to address the needs identified in the plan.

In planning and implementing all HUD funded activities, the City regularly works to identify and leverage other funding streams to maximize the impact of the CDBG, HOME, and ESG activities.

Cities receiving HOME Program funds are generally required to provide a HOME match of 25% of their annual allocation. The City of Fontana has qualified for a HOME match reduction of 100% due to COVID-19. Therefore, the City is not required to provide any match as part of the HOME Program. The ESG program requires a dollar-for-dollar match requirement. The City of Fontana requires its ESG subrecipients to meet the match requirement. This is done through a mix of cash and in-kind match as allowed under 24 CFR Part 576. In accordance with State law and local priority, the City consistently looks to leverage state and locally owned property to achieve its annual goals.

Table 5 – Fiscal Year Summary - HOME Match Report
Fiscal Year Summary – HOME Match

1. Excess match from prior Federal fiscal year $18,305,025.57

2. Match contributed during current Federal fiscal year $0

3. Total match available for current Federal fiscal year (Line 1 plus Line 2) $0

4. Match liability for current Federal fiscal year $0

5. Excess match carried over to next Federal fiscal year (Line 3 minus Line 4) $18,305,025.57
1831
City of Fontana 2021-2022 CAPER 11
OMB Control No: 2506-0117 (exp. 07/31/2015)
Table 6 – Match Contribution for the Federal Fiscal Year Match Contribution for the Federal Fiscal Year
Project
No. or
Other ID
Date of
Contrib
.

Cash
(nonFederal
sources)
Forego
ne
Taxes,
Fees,
Charge
s
Apprais
ed
Land/R
eal
Propert
y
Requir
ed
Infrastructu
re
Site
Prep.,
Const.

Material
s,
Donate
d labor
Bond
Financi
ng
Total Match
None N/A $0 $0 $0 $0 $0 $0 $0
Table 7 – Program Income
Program Income – Enter the program amounts for the reporting period Balance on hand
at beginning of
reporting period
Amount received
during reporting
period
Total amount
expended during
reporting period
Amount
expended for
TBRA
Balance on hand
at end of
reporting period
$0 $14,466 $0 $0 $14,466
HOME MBE/WBE report
The City has a policy that requires formal outreach to minority and women-owned businesses as part of the City’s HOME Program. It is an integral part of the City’s contracting practices. All developers funded by the City make a good faith effort to outreach to minority- and women-owned businesses, when soliciting goods and services to support CDBG-funded projects or activities.

Minimal HOME funds were expended during Program Year 2020-2021, therefore, there were no MBE/WBEs beneficiaries during the Program Year.
1832
City of Fontana 2021-2022 CAPER 12
OMB Control No: 2506-0117 (exp. 07/31/2015)
Minority Business Enterprises and Women Business Enterprises – Indicate the number and dollar value of contracts for HOME projects completed during the reporting period Table 8 – Minority Business and Women Business Enterprises Total
Minority Business Enterprises
White
NonHispanic
Alaskan
Native
or
America
n Indian
Asian or
Pacific
Islander
Black
NonHispanicHispanic
Contracts
Number 0 0 0 0 0 0
Dollar Amount $0 $0 $0 $0 $0 $0
Sub-Contracts
Number 0 0 0 0 0 0
Dollar Amount $0 $0 N/A $0 $0 $0
Total Women Business
Enterprises Male
Contracts
Number 0 0 0
Dollar Amount $0 $0 $0
Sub-Contracts
Number 0 0 0
Dollar Amount $0 $0 $0
1833
City of Fontana 2021-2022 CAPER 13
OMB Control No: 2506-0117 (exp. 07/31/2015)
Minority Owners of Rental Property – Indicate the number of HOME assisted rental property owners and the total amount of HOME funds in these rental properties assisted Table 9 – Minority Owners of Rental Property
Total
Minority Property Owners
White
NonHispanic
Alaskan
Native or
America
n Indian
Asian or
Pacific
Islander
Black
NonHispani
c
Hispanic
Number 0 0 0 0 0 0
Dollar Amount $0 $0 $0 $0 $0 $0
Relocation and Real Property Acquisition – Indicate the number of persons displaced, the cost of relocation payments, the number of parcels acquired, and the cost of acquisition
Table 10 – Relocation and Real Property Acquisition
Parcels Acquired 0 $0
Businesses Displaced 0 $0
Nonprofit Organizations Displaced 0 $0
Households Temporarily Relocated, not
Displaced 0 $0
Househol
ds
Displaced
Total
Minority Property Enterprises
White
NonHispanic
Alaskan
Native or
American
Indian
Asian or
Pacific
Islander
Black NonHispanic Hispanic
Number 0 0 0 0 0 0
Cost $0 $0 $0 $0 $0 $0
1834
City of Fontana 2021-2022 CAPER 14
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-20 - Affordable Housing 91.520(b)
Evaluation of the jurisdiction's progress in providing affordable housing, including the number and types of families served, the number of extremely low-income, low-income, moderate-income, and middle-income persons served.

Table 11 – Number of Households
One-Year Goal Actual
Number of homeless households to be provided
affordable housing units 0 0
Number of non-homeless households to be
provided affordable housing units 26 21
Number of special-needs households to be
provided affordable housing units 0 0
Total 26 21
Table 12 Number of Households Supported
One-Year Goal Actual
Number of households supported through rental
assistance 6
Number of households supported through the
production of new units 11 8
Number of households supported through the
rehab of existing units 10 13
Number of households supported through the
acquisition of existing units 2
Total 23 21
Discuss the difference between goals and outcomes and problems encountered in meeting these goals.

City staff, subrecipients and contractors continued to be impacted by the pandemic and global issues far beyond local control. While workflows and access to clientele normalized some, labor and material costs continue to be impacted by limited supply. City staff and partners’ efforts were focused on assisting the community to prevent, prepare and respond to the coronavirus and expand opportunity for low- and moderate-income residents.

According to the one-year goals in the 2021 Action Plan the City forecasted providing affordable housing to 26 low- and moderate-income households. Due to the pandemic HOME projects timelines have been delayed about a year. The eight units from the Sierra Ramona project were realized in this fiscal year and the anticipated 11 units from the Southridge Apartment projects will likely be pushed out to fiscal year 2022-2023. The City acquired a property on Upland Avenue this fiscal year. Accomplishments from this project should be realized next fiscal year when rehab is completed, and units are leased.
1835
City of Fontana 2021-2022 CAPER 15
OMB Control No: 2506-0117 (exp. 07/31/2015)
In the 2021-2022 Annual Action Plan the City forecast ESG would provide rental assistance to six households. In the 2020-2021 Annual Action Plan the City forecast ESG-CV would provide rental assistance to 60 households, and CDBG-CV would provide emergency housing assistance (rental and mortgage) to 200 households. Since the City received the CDBG-CV funds in 2020, 219 households have been assisted.

Discuss how these outcomes will impact future annual action plans.

Concurrent to this report the City is proposing an amendment to the 2020-2021 Action Plan to redirect a portion of unused emergency housing assistance project funds to a homeless services operations project. The City anticipates meeting all five-year goals during the full performance period. Future Annual Action Plans will reflect this.

Include the number of extremely low-income, low-income, and moderate-income persons served by each activity where information on income by family size is required to determine the eligibility of the activity.

Table 13 – Number of Families or Households Served
Number of Households Served CDBG Actual HOME Actual
Extremely Low-income 3 6
Low-income 49 2
Moderate-income 6 0
Total 58 8
Narrative Information
The table above (Table 13) includes the owner-occupied rehab, acquisition rehab and scholarship programs. To address what HUD defines as “worst case housing need” – low-income residents who pay more than 50 percent of their income for housing costs—the City provided funds in the 2021-2022 Action Plan through the ESG, ESG-CV and CDBG-CV programs to provide rental, mortgage and utility assistance to low- and moderate-income households - including those who are defined as experiencing worst case housing needs. Subsistence payments assisted 17 extremely low-income, 13 low-income, and 36 moderate-income residents. Further, the City continues to pursue the development of additional low- and moderate-income housing opportunities through the CDBG, HOME and other federal and state programs.

Through all programs, the City ensures that assistance is also targeted and made available to individuals experiencing disabilities to ensure that they have equal access to affordable housing programs. Where possible, the homeless service provider (Water of Life), leverages County programs for supportive housing activities and refers clients to such programs. 1836
CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) Evaluate the jurisdiction’s progress in meeting its specific objectives for reducing and ending homelessness through:

Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
To address incidences of homelessness in Fontana and to prevent extremely low-income Fontana families from becoming homeless, the City places a high priority on programs that work to prevent homelessness or rapidly connect homeless individuals with housing and supportive services. To address this need, the City has supported a continuum of services in the City of Fontana utilizing its ESG and ESG-CV funds, and though the San Bernardino County Continuum of Care (CoC) to prevent and eliminate homelessness; including, but not limited to, Homelessness Prevention programs, Emergency Shelter programs and transitional housing. Using ESG-CV funds, the City invested in Homelessness Prevention, Street Outreach, Emergency Shelter and Rapid ReHousing programs directly and through the Water of Life, which served a total of ### persons in the 2021-2022 program year.

The Office of Homeless Services was granted an exception by HUD to not complete Point-inTime Homeless count in 2021, due to health and safety concerns coupled with those about accuracy. The 2020 San Bernardino Homeless Partnership’s Point-in-Time count captured a 19.9 percent increase County wide in the number of homeless persons over the previous year. Of that amount, the number of homeless in Fontana was 116 persons, all of which were unsheltered.

This represented a 23.4 percent increase in homeless persons in the City over the previous year.

These figures do not include the homeless who have been displaced due to COVID-19 pandemic and economic downturn.

Addressing the emergency shelter and transitional housing needs of homeless persons The ultimate solution to ending homelessness is transitional and permanent housing closely aligned with supportive services that ensure housing stability can be maintained. However, because the demand for affordable housing far outpaces the region’s supply, the CoC continues to rely on its emergency and transitional housing system to address the immediate needs of San Bernardino County’s homeless population.

The City of Fontana, through its ESG and ESG-CV allocation, funded the Water of Life Homelessness Prevention Programs and the acquisition of a property that will serve as a temporary emergency shelter. In addition, the City supported the efforts of the San Bernardino County Continuum of Care (CoC) and its member organizations that address homelessness. As described earlier, the City supported local nonprofit agencies who provide emergency rental assistance and housing counseling to low- and moderate-income residents to prevent homelessness.
1837
Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: likely to become homeless after being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); and, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs
During Program Year 2021-2022, the City connected chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth with available resources through the San Bernardino County CoC, which is comprised of a network of public, private, faith-based, for-profit, and non-profit service providers who utilize several federal, state and local resources to provide services for homeless people. The goal was to help unsheltered homeless persons make the transition to permanent housing and independent living, including shortening the period that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units.

To supplement HUD-funded efforts, the City supports the collaborative work of Social Work Action Group (SWAG) and Community Outreach and Support Team (COAST) which connect those experiencing homelessness with housing and needed services to enable them to exit their life on the street. SWAG focuses on case management, while COAST focuses on street engagement.

The cost of these programs are funded by the City’s Permanent Local Housing (PLHA) allocation and other non-federal funds.

The nonprofit and faith-based communities play a key role in the current CoC system. Hundreds of agencies throughout the County provided programs ranging from feeding the homeless on the street to creating permanent supportive housing opportunities. These services were available to homeless families with children, and single men and women. The nonprofit and faith-based community also served special needs populations, such as victims of domestic violence, veterans, the disabled and youth.

The City provided ESG and ESG-CV funds to Water of Life to prevent individuals and families who were recently homeless from becoming homeless again and to prevent individuals and families who are at risk of homelessness from experiencing it. This assistance helped low- and moderate-income individuals and families who were currently housed but faced circumstances beyond their control that made it infeasible to stay current on their rent. Additionally, Water of Life aids through a Hotel-Motel Voucher system for low- and moderate-income individuals that do not currently have housing.

The City of Fontana funds the Inland Fair Housing and Mediation Board to provide fair housing, tenant/landlord mediation and legal services for residents through attorney consultations and preparation of legal documents for the residents to represent themselves in family law and landlord/tenant actions. Some of these services are provided to prevent undue evictions that could lead to homelessness.
1838
The Housing Authority of the County of San Bernardino provides Section 8 rental assistance to extremely low- and very low-income households located within the City limits. The Section 8 program gives priority to households that are at risk of becoming homeless or currently residing in inadequate housing.

Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again The San Bernardino County CoC Ten-Year Plan to End Homelessness included a goal to more rapidly identify and assess people experiencing homelessness. The CoC is working with 2-1-1 to create a Coordinated Entry Systems (CES) for persons at risk or experiencing homelessness within the CoC. The activities include street outreach, a universal assessment, intake, referrals and transportation to resources. The CES will include a database, housed in the Homeless Management Information System (HMIS), using real time data entry to match clients to appropriate service providers. Collectively these strategies minimize duplication of effort and better connect the most vulnerable individuals and families, chronically homeless, and people at risk of becoming homeless to appropriate resources.
1839
CR-30 - Public Housing 91.220(h); 91.320(j)
Actions taken to address the needs of public housing
The City of Fontana Housing Authority was formed in 1994 under State of California Housing Authority Law to actively improve existing neighborhoods and develop affordable housing opportunities using local, state and federal resources. The Fontana Housing Authority does not administer a Section 8 Program and does not own HUD Public Housing; however, the City is within the service area of the Housing Authority of the County of San Bernardino (HACSB) for the purposes of Section 8 and Public Housing.

The HACSB currently manages an active portfolio of 8,689 tenant-based and project-based Section 8 Moving to Work Housing Choice vouchers serving 20,106 individuals. Of the 20,106 individuals, 12,603 are adults (including 3,643 seniors) and 7,503 are children. There is still a great need in Fontana for additional subsidized housing with nearly 1,140 applications from Fontana families on the waiting list. Currently, there are 681 families Countywide receiving tenant-based rental assistance, while 98 families are receiving project-based rental assistance.

Actions taken to encourage public housing residents to become more involved in management and participate in homeownership
HACSB has continued to encourage residents to be actively involved in the community and in the management of public housing developments through resident councils and numerous opportunities for feedback such as community meetings and surveys. HACSB and the City of Fontana also continue to actively encourage and promote public housing residents to explore homeownership opportunities and programs through HACSB’s Homeownership Assistance Program targeted at current Public Housing Authority (PHA) residents. HACSB also encourages and supports residents in participating in homebuyer counseling programs and recommends residents use the family self-sufficiency escrow account to save money towards homeownership.

Actions taken to provide assistance to troubled PHAs
Not applicable. HACSB is considered a High Performing PHA. 1840
CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j)
Actions taken to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment. 91.220 (j); 91.320 (i) A barrier to affordable housing is a public policy or nongovernmental condition that constrains the development or rehabilitation of affordable housing, such as land use controls, property taxes, state prevailing wage requirements, environmental protection, cost of land and availability of monetary resources. Barriers to affordable housing are distinguished from impediments to fair housing choice in the sense that barriers are lawful and impediments to fair housing choice are usually unlawful.

The primary barriers to affordable housing in Fontana continue to be housing affordability and the lack of monetary resources necessary to develop and sustain affordable housing. The two barriers are related in the sense that demand for affordable housing exceeds the supply and insufficient resources are available to increase the supply of affordable housing to meet demand. Fontana continues to deal with the ramifications of the State of California’s elimination of local Redevelopment Agencies which were a crucial resource for the development and preservation of affordable housing. This was the most significant public policy change impacting affordable housing and residential investment. While there are mechanisms whereby certain affordable housing assets tied to the former Redevelopment Agencies may be utilized today, these resources are finite and scarce. Although the City no longer has access to Redevelopment Housing Set-Aside funds, the City will continue to leverage its CDBG and HOME funds to attract private and other available public resources, including land conveyed to the City for the purpose of affordable housing, to facilitate affordable housing development. This strategy will increase the supply of affordable housing and preserve existing affordable housing in the City.

To address housing affordability and the lack of monetary resources for affordable housing, the Strategic Plan of the 2020-2024 Consolidated Plan called for the investment of a significant portion of CDBG and HOME funds for the rehabilitation of 20 new affordable rental housing units, seven rental units acquired and rehabbed and the preservation of 100 existing affordable housing units. During the 2021-2022 program year, ## housing units were rehabilitated.

Actions taken to address obstacles to meeting underserved needs. 91.220(k); 91.320(j) The primary obstacles to meeting the underserved needs of low- and moderate-income people include lack of funding from federal, state and other local sources, the high cost of housing that is not affordable to low-income people and the lack of availability of home improvement financing in the private lending industry. To address these obstacles, the City invested CDBG, CDBG-CV, ESG and ESG-CV funds in Program Year 2021-2022 in projects that provide grants to low- and moderate-income homeowners and renters for emergency mortgage and rent assistance, projects that provide public and neighborhood services to low- and moderate-income people and those with special needs, and projects that prevent homelessness. To address underserved needs, the City allocated 100 percent of its non-administrative CDBG and 100 percent of its HOME investments in Program Year 2021-2022 to projects and activities that benefit low- and moderate-income people.

Actions taken to reduce lead-based paint hazards. 91.220(k); 91.320(j) 1841
The Residential Lead-Based Paint Hazard Reduction Act of 1992 (Title X) emphasizes prevention of childhood lead poisoning through housing-based approaches. To reduce lead-based paint hazards, the rehabilitation of housing units built prior to January 1, 1978 included a lead-based paint testing and risk assessment process. When lead-based paint was identified, the City ensured that developers and contractors incorporate safe-work practices and depending on the level of assistance, abate the lead-based paint as part of the scope of work to effectively reduce lead-based paint hazards to children in accordance with 24 CFR Part 35.

Actions taken to reduce the number of poverty-level families. 91.220(k); 91.320(j) The City’s CDBG-CV and ESG-CV maintained safe and adequate housing for many residents. In addition to these local efforts, mainstream state and federal resources also contributed to reducing the number of individuals and families in poverty. Federal programs, such as the Earned Income Tax Credit and Head Start, provide pathways out of poverty for families who are ready to pursue employment and educational opportunities. Additionally, in California, the primary programs that assist families in poverty are CalWORKS, CalFresh (formerly food stamps) and Medi-Cal. Together, these programs provided individuals and families with employment assistance, subsidy for food, medical care, child-care and cash payments to meet basic needs such as housing, nutrition and transportation. Other services are available to assist persons suffering from substance abuse, domestic violence and mental illness.

Actions taken to develop institutional structure. 91.220(k); 91.320(j) The institutional delivery system in Fontana is high-functioning and collaborative—particularly the relationship between local government and the nonprofit sector comprised of a network of capable nonprofit organizations that are delivering a full range of services to residents. Strong City departments anchor the administration of HUD grant programs and the housing, community and economic development activities that are implemented by the City.

To support and enhance the existing institutional structure, the City of Fontana continued to collaborate with affordable housing developers and nonprofit agencies receiving CDBG and HOME funds through the 2021-2022 Action Plan to ensure that the needs of low- and moderateincome residents were met as envisioned within the 2020-2024 Consolidated Plan - Strategic Plan.

Actions taken to enhance coordination between public and private housing and social service agencies. 91.220(k); 91.320(j)
To enhance coordination between public and private housing and social service agencies, the City continued consulting with and inviting the participation of a wide variety of agencies and organizations involved in the delivery of housing and supportive services to low- and moderateincome residents in Fontana—particularly in the low-and moderate-income areas.

Identify actions taken to overcome the effects of any impediments identified in the jurisdiction’s analysis of impediments to fair housing choice. 91.520(a) During Program Year 2021-2022, the City of Fontana Department of Administrative Services and the Inland Fair Housing and Mediation Board affirmatively furthered fair housing choice. The City is following the recommendations laid out in the prior Analysis of Impediments to Fair Housing 1842
(AI). As explained in the most recent AI conducted in 2020, the will City continue to address the previous impediments even though progress has been made. No new impediments were identified in the 2021-2022 Program Year.

Impediment: Lending Practices: Discrimination by Race
The previous AI revealed that loan approval rates were generally higher in 2009 for Asians (55%) and Whites (55%) than for Hispanics (48%) and African Americans (40%) in the City. According to the 2020-2024 Analysis, the approval rate in 2017 has increased substantially for all groups to include 65% for African Americans, 79% for Whites, 74% for Asians and 76% for Hispanics, although showing a decline for all group since 2015.

Action: The City is working with Inland Fair Housing and Mediation Board (IFHMB) to provide written outreach to lending institutions regarding the City commitment to eliminate racial discrimination in lending patterns; to encourage attendance of all staff at IFHMB workshops; and to provide flyers regarding FTHB education, including IFHMB FAQ on the City website. IFHMB is continuing to offer Fair Housing education as part of the FTHB courses; as well as provide outreach regarding IFHMB programs targeted to census blocks identified by City staff.

IFHMB staffed a fair housing workshop at the Fontana Senior Center in October 2019 that provided information about fair housing laws and the duty to affirmatively further faith housing.

As a result of continuing education efforts, the City did not identify any neighborhoods where it believes disparate lending patterns exist. There were no reports of any significant HMDA data findings for IFHMB to further investigate and enforce. However, IFHMB and the City will continue to work together to ensure that the City continues to meet their obligations to affirmatively further fair housing under the Fair Housing Act.

Impediment: Discrimination against Persons with Disabilities Based on an increase in complaints to the fair housing service provider, the previous AI noted that there was a lack of understanding and sensitivity of the fair housing rights of the disabled by the housing industry. Half of the fair housing complaints were from those with disabilities.

Action: The City is working with IFHMB to provide recommendations of properties believed to be discriminatory in their practices as information is received; facilitate accessibility reviews of multifamily properties; and distribute design and construction information to all who inquire about building permits. IFHMB is continuing to focus investigation efforts on tips and complaints regarding disability; review properties built within the last five years for accessibility compliance; and provide the City with literature regarding the Fair Housing Act seven design and construction requirements.

Over 4,000 Fair Housing and Accessibility Brochures were distributed within the City of Fontana during the program year. IFHMB has received federal funding to do accessibility testing for the seven design and construction requirements of the Fair Housing Act. IFHMB will continue to seek and identify properties to conduct such design and construction testing and will follow-up with developers and the City as appropriate.

Impediment: Lack of Awareness of Fair Housing Laws
There was a general lack of knowledge in the community of fair housing rights and responsibilities. 1843
Action: The City is continuing to work with IFHMB to provide opportunities for conducting Fair Housing workshops in the City and providing IFHMB outreach materials as a part the City newsletter and utility bill mailings. IFHMB is continuing to collaborate with local realtors; providing recurring education to members of the Inland Valleys Association of Realtors; offering no-cost Fair Housing workshops; and developing a fair housing FAQ for the City website.

The City has a fair housing link to the Services page of the City of Fontana website, as well as on the Housing Authority page. IFHMB participated in providing fair housing material at several community events including a City meeting with local community-based organizations, Citrus Head Start Resources Fair, a Housing Rights and Responsibilities workshop and Health Resources Fair at the Fontana Senior Center. IFHMB released cable bulletins via the City Community Channel for recruiting testers, familial status, general housing discrimination and domestic violence at various times during the program year. Over 4,000 brochures on fair housing were distributed during the period between July 1, 2019 and June 30, 2020 in various apartments, nonprofit organizations, public offices, and local stores in the City of Fontana. IFHMB will continue its efforts to work with the City on addressing awareness of fair housing laws and affirmatively further fair housing.

Impediment: Transit Access
The elderly and low-income are dependent upon public transportation. The AI identified two underserved areas of the City: 1) Falcon Ridge/Summit Avenue Job Center; 2) Southwest Industrial Job Centers.

Action: The City has worked with Omni Trans to provide a bus route with new stops in the Northern areas of the City (Route 82: Rancho Cucamonga-Fontana-Sierra Lakes). The City of Fontana continues to work with Omni Trans on bus routes throughout Fontana. That process includes evaluating current and potentially future lines (based upon anticipated development).

The current priorities include identifying locations for the installation of bus turnouts and bus shelters. Future Omni Trans services will be dictated by both demand (ridership) and by new single-family development (in both Central and North Fontana).

Impediment: Reasonable Accommodations
The AI noted that much of the housing stock in Fontana was built before accessibility standards were enacted. Modifications to these units may be needed to allow access by a person with disabilities. The City requires a variance to install features to accommodate persons with disabilities that may be prohibitive to many lower income persons.

Action: A request for a fee deferral or cost reduction for securing a minor variance for projects that include reasonable accommodation improvements is under consideration by the City. Until a revision can be made to the City Development Code, an internal memo has been distributed to all Housing and Planning staff regarding the City process for waiving minor variance fees for applications that include reasonable accommodation improvements. A statement on the City reasonable accommodation policy has been made available to the public.

Impediment: Multi-Family Civil Rights Compliance
1844
According to the City Section 109 Voluntary Compliance Agreement, the City must examine Federal and contractual civil rights compliance requirements on all City-owned multi-family residential properties.

Action: The City is working with IFHMB to review all civil rights compliance requirements and current affirmative marketing plans; and to show what efforts have been undertaken to accomplish the identified impediments, including any updates to the civil rights compliance requirements to date. The City provided IFHMB with an update on City-owned housing in Fall 2019 as part of updating its Analysis of Impediment to Fair Housing during the 2020-2024 Consolidated Plan.

Impediment: North Fontana Affordable Multi-Family Development According to the Voluntary Compliance Agreement, the City must examine opportunities for the creation of new affordable multi-family housing to be distributed equitably throughout the City, particularly in North Fontana.

Action: The City continues to actively seek developers for areas zoned multifamily housing and continues to preserve the zoning designation of such areas in Northern Fontana. The City adopted the Westgate Master Plan in North Fontana, which included several key properties to be set aside for multifamily housing developments. The City’s Southridge Apartment project has been delayed, but is still anticipated to be completed in the following 2021-2022 Program Year.

Impediment: Lack of Awareness of Housing Services and Facilities in the City According to the Voluntary Compliance Agreement, the City must publish and distribute a brochure written in Spanish which describes housing services and facilities within the City.

Action: The City has information regarding discrimination and fair housing laws available on their website, along with contact information and office hours for IFHMB Ontario office and all the IFHMB services are available in both English and Spanish during all office hours.

Impediment: Transitional and Supportive Housing
State law requires cities to identify adequate sites, appropriate zoning, development standards and a permitting process to facilitate and encourage development of transitional and permanent supportive housing. The City Zoning Ordinance does not currently provide such zoning and development standards.

Action: On October 28, 2014, the City enacted Ordinance 1708, which established an Emergency Shelter Overlay District in Light Industrial land use designations. 1845
CR-40 - Monitoring 91.220 and 91.230
Describe the standards and procedures used to monitor activities carried out in furtherance of the plan and used to ensure long-term compliance with requirements of the programs involved, including minority business outreach and the comprehensive planning requirements
To ensure CDBG, ESG, HOME, CDBG-CV, and ESG-CV funds were used efficiently and in compliance with applicable regulations, the City provided technical assistance to all subrecipients at the beginning of the program year and monitored the progress of its subrecipients throughout the program year.

Technical Assistance
To enhance compliance with federal program regulations, the City provides an annual Notice of Funding Availability (NOFA) workshop to review the Plan goals, program requirements and available resources with potential applicants. Subsequent to approval of the Annual Action Plan, City staff reviews program regulations in detail with any subrecipients and City Departments to provide useful forms and resources for documenting compliance and to review the City’s compliance procedures and requirements. Additionally, individualized technical assistance is provided on an as-needed basis throughout the program year.

Activity Monitoring
All activities are monitored, beginning with a detailed review upon receipt of an application to determine eligibility, conformance with a National Objective and conformance with a Plan goal.

This review also examines the proposed use of funds, eligibility of the service area, eligibility of the intended beneficiaries and likelihood of compliance with other federal requirements such as the National Environmental Policy Act, the System for Award Management (SAM) debarment list, prevailing wage, Minority and Women Business Enterprise, Section 3 and federal acquisition and relocation regulations, as applicable.

Subrecipients are required to submit an audit and other documentation to establish their capacity, and any findings noted in the audit are reviewed with the applicant. Eligible applications are then considered for funding. Once funded, desk monitoring includes ongoing review of required quarterly performance reports. For CDBG public service and ESG activities, an on-site monitoring is conducted once every two (2) years, or more frequently as needed to ensure compliance. These reviews include both a fiscal and programmatic review of the subrecipient’s activities. The reviews determine if the subrecipient is complying with the program regulations and City contract. Areas routinely reviewed include overall administration, financial systems, appropriateness of program expenditures, program delivery, client eligibility determination and documentation, reporting systems, and achievement toward achieving contractual goals. Following the monitoring visit, a written report is provided delineating the results of the review and any findings of non-compliance and the required corrective action. Subrecipients and City departments normally have 30 days to provide the City with corrective actions taken to address any noted findings. Individualized technical assistance is provided, as noted above, as soon as compliance concerns are 1846
identified. For CDBG capital projects, monitoring also includes compliance with regulatory agreement requirements. For HOME funded activities, annual monitoring is undertaken to ensure that for renter occupied units, household income, rents and utility allowances are in compliance with applicable limits pursuant to the affordability covenant. For ownership units, annual monitoring of occupancy is conducted throughout the affordability period.

For the HOME-funded activities, annual monitoring is undertaken to ensure that for renteroccupied units, household income, rents and utility allowances are in compliance with applicable limits pursuant to the affordability covenant. For ownership units, annual monitoring of occupancy is conducted throughout the affordability period.

The following is a list of the rental units that were monitored in calendar year 2021. Extensive technical assistance was provided to all the apartment owners and managers in 2018 regarding incomes, rent levels and lease provisions. All properties were found to be in compliance. Field audits were conducted seven properties shown below.

Address Inspection/
Audit Date
16254 Ceres Ave (Phase I) 4/1/2022
16424 Ceres Ave (Phase III) 3/29/2022
16284 Ceres Ave.(Phase II) 4/1/2022
16930, 16947, 16955, 16965, 16966, 16976 Reed St.
(Reed Street Apartments) 4/27/2022
8347 Laurel Ave (Laurel Woods) 2/8/2022
7807 Juniper (Siena) 2/8/2022
8015 Citrus Ave (Hillcrest) 1/13/2022
Citizen Participation Plan 91.105(d); 91.115(d)
Describe the efforts to provide citizens with reasonable notice and an opportunity to comment on performance reports.

In accordance with the City adopted Citizen Participation Plan, a public notice was published in the San Bernardino Sun, Press Enterprise, and El Chicano in English and in Spanish on August 25, 2022, notifying the public of the availability of the Consolidated Annual Performance and Evaluation Report for a 15-day public review and comment period. A copy of the public notices is included in Appendix A. The draft CAPER is made available on the City website and posted publicly.

A public hearing w before the City Council will be held on Tuesday, September 13, 2022, to solicit comments from residents and interested parties. A summary of any written or oral comments received during the public hearing is included in Appendix B. 1847
CR-45 - CDBG 91.520(c)
Specify the nature of, and reasons for, any changes in the jurisdiction’s program objectives and indications of how the jurisdiction would change its programs as a result of its experiences.

In the 2021-2022 program year, the City provided CDBG-funded public services. The City’s CDBG Fair Housing program served 618 unduplicated individuals. The City’s Public Safety Program served 59,140 individuals. The housing assistance program supported 66 low- and moderateincome households to remain safe and in their homes during the pandemic.

Program year 2021-2022 is the second year of the five-year 2020-2024 Consolidated Planning cycle. High priority needs identified in the Consolidated Plan – Strategic Plan reflect Fontana’s community. Future expenditures will impact these strategies.

As described in the CR-05 (Goals and Outcomes) section, the City made three non-substantial amendments its Annual Action Plan during the program year. These amendments were to address a minor increase in the FY2021 CDBG allocation, ESG project and CDBG rental acquisition rehab budget modifications.
1848
CR-50 - HOME 91.520(d)
Include the results of on-site inspections of affordable rental housing assisted under the program to determine compliance with housing codes and other applicable regulations Maintaining HOME-assisted affordable housing is a high priority. During the 2021-2022 Program Year, the City inspected the HOME-assisted properties listed below to determine compliance with the housing codes and other applicable regulations. Where any deficiencies existed, the property owner and property management were notified to make repairs and City staff followed up to ensure completion.

The following is a list of the rental properties that were monitored in calendar year 2021-2022. All units were found to be in compliance. The City conduct field audits for seven complexes listed below.

Address Inspection/
Audit Date
16254 Ceres Ave. (Phase I) 4/1/2022
16424 Ceres Ave. (Phase III) 3/29/2022
16284 Ceres Ave. (Phase II) 4/1/2022
16930, 16947, 16955, 16965, 16966, 16976 Reed St.
(Reed Street Apartments) 4/27/2022
8347 Laurel Ave. (Laurel Woods) 2/8/2022
7807 Juniper (Siena) 2/8/2022
8015 Citrus Ave. (Hillcrest) 1/13/2022
Provide an assessment of the jurisdiction's affirmative marketing actions for HOME units.

92.351(b)
The City certified it made effort to affirmatively further fair housing as a participating jurisdiction that received HOME Program funds. The City used CDBG funds to promote fair housing by contracting with the Inland Fair Housing and Mediation Board to provide a variety of fair housing services.
1849
Refer to IDIS reports to describe the amount and use of program income for projects, including the number of projects and owner and tenant characteristics According to the PR-09 report for the HOME program, $14,466 of HOME program income was receipted during Program Year 2021-2022 and will be committed for the next City HOME project in the next Program Year.

Describe other actions taken to foster and maintain affordable housing. 91.220(k) The City of Fontana funds the Inland Fair Housing and Mediation Board to provide fair housing, tenant/landlord mediation and legal services for residents through attorney consultations and preparation of legal documents for the residents to represent themselves in family law and landlord/tenant actions. Some of these services are provided to prevent undue evictions that could lead to homelessness.

The Housing Authority of the County of San Bernardino provides Section 8 rental assistance to extremely low- and very low-income households located within the City limits. The Section 8 program gives priority to households that are at risk of becoming homeless or currently residing in inadequate housing.
1850
CR-60 - ESG 91.520(g) (ESG Recipients only)
ESG Supplement to the CAPER in e-snaps
For Paperwork Reduction Act

1. Recipient Information—All Recipients Complete
Basic Grant Information
Recipient Name FONTANA
Organizational DUNS Number 058728630
EIN/TIN Number 956004770
Identify the Field Office LOS ANGELES
Identify CoC(s) in which the recipient
or subrecipient(s) will provide ESG
assistance
San Bernardino City & County CoC
ESG Contact Name
Prefix Mrs.

First Name Valerie
Middle Name D
Last Name Gonzales
Suffix N/A
Title Acting Housing Development Manager
ESG Contact Address
Street Address 1 8353 Sierra Ave.

Street Address 2 N/A
City Fontana
State CA
ZIP Code 92335
Phone Number (909) 350-6625
Extension N/A
Fax Number
Email Address [email protected]
ESG Secondary Contact
Prefix N/A
First Name N/A
Last Name N/A
Suffix N/A
Title N/A
Phone Number N/A
Extension N/A
Email Address N/A

2. Reporting Period—All Recipients Complete
Program Year Start Date 07/01/2021
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Program Year End Date 06/30/2022
3a. Subrecipient Form – Complete one form for each subrecipient Subrecipient or Contractor Name: Water of Life
City: Fontana
State: CA
Zip Code: 92336
DUNS Number: 793842550
Is subrecipient a victim services provider: No
Subrecipient Organization Type: Nonprofit
ESG Subgrant or Contract Award Amount: $###
1852
CR-65 - Persons Assisted

4. Persons Served
4a. Complete for Homelessness Prevention Activities
Number of Persons in
Households
Total
Adults 125
Children 90
Don't Know/Refused/Other 0
Missing Information 0
Total 215
Table 3 – Household Information for Homeless Prevention Activities 4b. Complete for Rapid Re-Housing Activities
Number of Persons in
Households
Total
Adults 11
Children 16
Don't Know/Refused/Other 0
Missing Information 0
Total 27
Table 4 – Household Information for Rapid Re-Housing Activities 4c. Complete for Shelter
Number of Persons in
Households
Total
Adults 0
Children 0
Don't Know/Refused/Other 0
Missing Information 0
Total 0
Table 5 – Shelter Information
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4d. Street Outreach
Table 6 – Household Information for Street Outreach
4e. Totals for all Persons Served with ESG
Number of Persons in
Households
Total
Adults 136
Children 106
Don't Know/Refused/Other 0
Missing Information 0
Total 242
Table 7 – Household Information for Persons Served with ESG

5. Gender—Complete for All Activities
Total
Male 99
Female 142
Transgender 0
Don't Know/Refused/Other 1
Missing Information 0
Total 242
Table 8 – Gender Information
Number of Persons in
Households
Total
Adults 0
Children 0
Don't Know/Refused/Other 0
Missing Information 0
Total 0
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6. Age—Complete for All Activities
Table 9 – Age Information

7. Special Populations Served—Complete for All Activities Number of Persons in Households
Subpopulation Total Total
Persons
Served –
Prevention
Total
Persons
Served –
RRH
Total
Persons
Served in
Emergency
Shelters
Veterans 0 0 0 0
Victims of
Domestic Violence 6 6 8 0
Elderly 13 13 1 0
HIV/AIDS 1 1 1 0
Chronically
Homeless 0 0 0 0
Persons with Disabilities:

Severely
Mentally Ill 6 6 0 0
Chronic
Substance Abuse 0 0 0 0
Other Disability 15 15 0 0
Total
(Unduplicated if
possible) 21 21 0 0
Table 10 – Special Population Served
Total
Under 18 101
18-24 29
25 and over 112
Don't Know/Refused/Other 0
Missing Information 0
Total 242
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CR-70 – ESG 91.520(g) - Assistance Provided and Outcomes

8. Shelter Utilization
Number of New Units – Rehabbed N/A
Number of New Units – Conversion N/A
Total Number of bed - nights available N/A
Total Number of bed - nights provided N/A
Capacity Utilization N/A
Table 11 – Shelter Capacity

9. Project Outcomes Data measured under the performance standards developed in consultation with the CoC(s)
The City did not directly control bed stock but provided vouchers for ESG-CV eligible individuals to stay in a hotel or motel housing unit. In FY21 the City acquired a property to serve as an emergency shelter. It is currently under rehab and is expected to be operational in FY22. 1856
CR-75 – Expenditures

11. Expenditures
11a. ESG Expenditures for Homelessness Prevention*
Dollar Amount of Expenditures in Program
Year
2019 2020 2021
Expenditures for Rental Assistance 126,807.00 45,000.00 91,888.00 Expenditures for Housing Relocation and
Stabilization Services - Financial
Assistance
0 0 0
Expenditures for Housing Relocation &
Stabilization Services - Services 0 16,586.00 10,000.00 Expenditures for Homeless Prevention
under Emergency Shelter Grants Program 0 0 0
Subtotal Homelessness Prevention 126,807.00 61,586.00 101,888.00 Table 12 – ESG Expenditures for Homelessness Prevention 11b. ESG Expenditures for Rapid Re-Housing*
Dollar Amount of Expenditures in Program
Year
2019 2020 2021
Expenditures for Rental Assistance 0 38,900.07 0
Expenditures for Housing Relocation and
Stabilization Services - Financial
Assistance
0 0 0
Expenditures for Housing Relocation &
Stabilization Services - Services 0 42,712.93 0
Expenditures for Homeless Assistance
under Emergency Shelter Grants Program 0 0 0
Subtotal Rapid Re-Housing 0 81,613.00 0
Table 13 – ESG Expenditures for Rapid Re-Housing
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11c. ESG Expenditures for Emergency Shelter
Dollar Amount of Expenditures in Program
Year
2019 2020 2021
Essential Services 0 0 0
Operations 0 0 0
Renovation 0 0 0
Major Rehab 0 0 0
Conversion 0 0 0
Subtotal 0 0 0
Table 14 – ESG Expenditures for Emergency Shelter
11d. Other Grant Expenditures
Dollar Amount of Expenditures in Program
Year
2019 2020 2021
Street Outreach 0 0 0
HMIS 6,500.00 6,500.00 6,500.00
Administration 10,808.00 12,137.00 13,415.00
Table 15 - Other Grant Expenditures
11e. Total ESG Grant Funds
Table 16 - Total ESG Funds Expended
11f. Match Source
2019 2020 2021
Other Non-ESG HUD Funds 0 0 0
Other Federal Funds 0 0 0
State Government 0 0 0
Local Government 0 0 0
Private Funds 126,807.00 143,199.00 101,888.00
Other: Employee Salaries/Volunteer
Hours
0 0 0
Fees 0 0 0
Program Income 0 0 0
Total Match Amount 126,807.00 143,199.00 101,888.00
Table 17 - Other Funds Expended on Eligible ESG Activities 11g. Total
Total ESG Funds
Expended
2019 2020 2021
$144,115.00 $161,836.00 121,803.00
1858
Total Amount of
Funds Expended on
ESG Activities
2019 2020 2021
Total $144,155.00 $161,836.00 121,803.00
Table 18 - Total Amount of Funds Expended on ESG Activities 1859
The City of Fontana
Housing Department
ACTION PLAN – SUBSTANTIAL AMENDMENT, SEPTEMBER 2022
CARE Act Funding Programs
(CDBG-CV – Revised Activities)
1860
Annual Action Plan Fontana 2
OMB Control No: 2506-0117 (exp. 09/30/2021)
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Annual Action Plan Fontana 3
OMB Control No: 2506-0117 (exp. 09/30/2021)
Table of Contents
EXECUTIVE SUMMARY ....................................................................................................................................4 PROCESS ...................................................................................................................................................... 7 EXPECTED RESOURCES – 91.220(C)(1,2)........................................................................................................ 12 ANNUAL GOALS AND OBJECTIVES – 91.220(C)(3)............................................................................................ 13 PROJECTS – 91.220(D)................................................................................................................................ 14 1862
Annual Action Plan Fontana 4
OMB Control No: 2506-0117 (exp. 09/30/2021)
Executive Summary
September 2022 – Amendment
The City proposes to create a project to support homeless services operations. This activity will address the persistent need for non-congregate shelter and the waning need for subsistence payments by diverting $340,000 in unused CDBG-CV funds from the emergency housing assistance project to the homeless services operations project.

August 2022 – Amendment
To address the changing needs of those experiencing and at risk of experiencing homelessness in the context of COVID-19 the City of Fontana has modified funding within the homeless assistance. In accordance with the City’s Citizen Participation Plan and the regulations of 24 CFR Part 91, the changes to this project do not constitute a substantial amendment. The City will revise the budget of the ESG-CV activities to:

Activity Original Allocation Revised Allocation
Homeless Prevention $600,000 $632,517
Rapid Re-Housing $270,231 $94,028
Street Outreach $195,174 $272,438
Emergency Shelter $287,000 $333,949
Temporary Emergency Shelter $700,000 $700,000
HMIS $56,301 $75,774
Administration $234,299 $234,299
September 2021 – Amendment
Given the increased demand for emergency shelter for unsheltered homeless residents within the City of Fontana as a result of the coronavirus pandemic, the City proposes allocating $730,000 for the acquisition of a property to serve as a temporary emergency shelter to serve at-risk unsheltered residents. The City proposes revising the budget of the ESG-CV activities to:

Activity Original Allocation Revised Allocation
Homeless Prevention $800,000 $600,000
Rapid Re-Housing $770,231 $270,231
Street Outreach $195,174 $195,174
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Annual Action Plan Fontana 5
OMB Control No: 2506-0117 (exp. 09/30/2021)
Emergency Shelter $287,000 $287,000
Temporary Emergency Shelter $0 $700,000
HMIS $56,301 $56,301
Administration $234,299 $234,299
December 2020 Minor Amendment
The City of Fontana completed a minor amendment to reflect minor changes to ESG-CV activities to activities based on program and operation need. This amendment is considered to be minor in nature as defined by the City’s Citizen Participation Plan.

October 2020 – Amendment
The City of Fontana received additional special allocations for the Community Development Grant (CDGBCV) and Emergency Solutions Grant (ESG-CV) from the U.S. Department of Housing and Urban Development (HUD) via the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The City received an additional $1,232,380 in CDBG-CV resources and $1,723,436 in ESG-CV resources. Combining the first allocations of CDBG-CV and ESG-CV respectively, the City received the following amounts via the CARES Act:

CDBG-CV: $2,467,484
ESG-CV: $2,343,005
September 2020 - Amendment
Given the high level of demand for housing assistance, the City of Fontana has reallocated $488,084 from the economic development program to the housing assistance program. The City of Fontana will use resources via the Department of Treasury Coronavirus Relief Fund to provide economic development assistance to Fontana businesses impacted by COVID-19.

Background
Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the President signed it on March 27, 2020 authorizing $2.2 trillion in a variety of stimulus measures to prevent, prepare for, and respond to the COVID-19 pandemic. The law includes a special allocation of the Community Development Block Grant (CDBG-CV) and Emergency Solutions Grant (ESG-CV) funds to enable communities to effectively address the impact of COVID-19 on their communities, especially low- and moderate-income residents.

Sources
The City of Fontana will receive a combined allocation of the following grants from HUD under the CARES Act:

CDBG-CV $2,467,484
ESG-CV $2,343,005
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OMB Control No: 2506-0117 (exp. 09/30/2021)
These funds are separate and distinct from the City’s regular CDBG and ESG funds. The City Council is responsible for determining how CDBG-CV and ESG-CV funds will be used to prevent, prepare and respond to the COVID-19 virus. In consultation with key City departments and partners serving the needs of lowand moderate-income in the community, this submission to the City Council requests approval of the new CDBG-CV and ESG-CV allocations.

Proposed Uses of Community Development Block Grant (CDBG-CV Allocation 2) Housing Assistance: $985,904
Program Administration: $246,476
Proposed Uses of Emergency Solutions Grant (ESG-CV Allocation 2) Homeless Assistance $1,551,093
Program Administration $172,343
Uses of Community Development Block Grant (CDBG-CV Allocation 1) Housing Assistance: $988,084
Program Administration: $247,020
Uses of Emergency Solutions Grant (ESG-CV Allocation 1) Homeless Assistance $557,613
Program Administration $61,956
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Annual Action Plan Fontana 7
OMB Control No: 2506-0117 (exp. 09/30/2021)
Process
September 2022 – Amendment
The City is required to conduct a five-day review period for this substantial amendment. As it will be released concurrent to the 2021-2022 CAPER there will be a 15-day comment period from August 30, 2022 – September 13, 2022. The City will hold a public hearing for the Substantial Amendment as part of the September 13, 2022 City Council meeting.

August 2022 – Amendment
The changes made to the 2020 Action Plan in August 2022 qualify as non-substantial according to the City’s Citizen Participation Plan and the regulations of 24 CFR Part 91.

September 2021 Amendment
The City of Fontana conducted a 30-day review period for this substantial amendment from August 30, 2021 – September 28, 2021. The City held a virtual public hearing for the substantial amendment as part of the September 28, 2021 City Council meeting.

October 2020 Amendment
The City of Fontana is conducting a 5-day review period for this substantial amendment from October 22 – October 27, 2020. The City will conduct a virtual public hearing for the substantial amendment as part of the October 27, 2020 City Council meeting.

September 2020 Amendment
The City of Fontana is conducting a 5-day review period for this substantial amendment from September 18 – September 22, 2020. The City will conduct a virtual public hearing for the substantial amendment as part of the September 22, 2020 City Council meeting.

Original Amendment
Given the urgency to design and launch programs with the CDBG-CV and ESG-CV allocations, the CARES Act authorized grantees with the flexibility of providing 5-day public review periods and the authority to use virtual public hearings to fulfill applicable public hearing requirements. On March 31, 2020, HUD issued a memo authorizing grantees to modify public review and hearing requirements to comply with this flexibility. The City of Fontana requested the use of these waivers on April 21, 2020 and received approval from HUD on April 23, 2020 to utilize them.

As such, the City of Fontana is conducting a 5-day review period for this substantial amendment from July 10 – July 14, 2020. The City will conduct a virtual public hearing for the substantial amendment as part of the July 14, 2020 City Council meeting.
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OMB Control No: 2506-0117 (exp. 09/30/2021)
To encourage review and comment on the proposed activities, the City of Fontana published notices advertising the substantial amendment in English and Spanish newspapers. The City posted this amendment on the City’s website for review and comment.

To ensure reasonable participation in the public hearing, the meeting will be broadcast live on KFON TV as well as through the City’s website. Additionally, residents can listen to the public hearing via teleconference. Residents can submit comments via email or mail during the public review period or during the public hearing.
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Annual Action Plan Fontana 9
OMB Control No: 2506-0117 (exp. 09/30/2021)
Sort
Order
Activity • Target Population Summary Summary of Comments Received

1. Public
Hearing
• Minorities
• Non-English Speaking
• Persons with
disabilities
• Broad community
• Residents of
public/assisted
housing
• Stakeholders
The City conducted its
public hearing to review
the Substantial
Amendment to the
Action Plan on July 14,
2020.

No comments

2. Comment
Period
• Minorities
• Non-English Speaking
• Persons with
disabilities
• Broad community
• Residents of
public/assisted
housing
• Stakeholders
The City conducted its
5-day comment period
from July 10 – July 14,
2020
No comments

3. Public
Hearing
• Minorities
• Non-English Speaking
• Persons with
disabilities
• Broad community
• Residents of
public/assisted
housing
• Stakeholders
The City conducted its
public hearing to review
the Substantial
Amendment to the
Action Plan on
September 22, 2020.

No comments

4. Comment
Period
• Minorities
• Non-English Speaking
• Persons with
disabilities
• Broad community
• Residents of
public/assisted
housing
• Stakeholders
The City conducted its
5-day comment period
from September 18 –
September 22, 2020
No comments
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Annual Action Plan Fontana 10
OMB Control No: 2506-0117 (exp. 09/30/2021)

5. Public
Hearing
• Minorities
• Non-English Speaking
• Persons with
disabilities
• Broad community
• Residents of
public/assisted
housing
• Stakeholders
The City conducted its
public hearing to review
the Substantial
Amendment to the
Action Plan on October
27, 2020.

6. Comment
Period
• Minorities
• Non-English Speaking
• Persons with
disabilities
• Broad community
• Residents of
public/assisted
housing
• Stakeholders
The City conducted its
5-day comment period
from October 22 –
October 27, 2020

7. Public
Hearing
• Minorities
• Non-English Speaking
• Persons with
disabilities
• Broad community
• Residents of
public/assisted
housing
• Stakeholders
The City will conduct its
public hearing to review
the Substantial
Amendment to the
Action Plan on
September 28, 2021.

8. Comment
Period
• Minorities
• Non-English Speaking
• Persons with
disabilities
• Broad community
• Residents of
public/assisted
housing
• Stakeholders
The City will conduct its
30-day comment period
from August 30 –
September 28, 2021

9. Comment
Period
• Minorities
• Non-English Speaking
• Persons with
disabilities
• Broad community
• Residents of
public/assisted
housing
• Stakeholders
The City will conduct its
15-day comment period
from August 30 –
September 13, 2022.
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Annual Action Plan Fontana 11
OMB Control No: 2506-0117 (exp. 09/30/2021)

10. • Minorities
• Non-English Speaking
• Persons with
disabilities
• Broad community
• Residents of
public/assisted
housing
• Stakeholders
The City will conduct its
public hearing to review
the Substantial
Amendment to the
Action Plan on
September 13, 2022.

Table 1 – Resident Engagement
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OMB Control No: 2506-0117 (exp. 09/30/2021)
Expected Resources – 91.220(c)(1,2)
Introduction
For the combined special allocations of CDBG-CV and ESG-CV resources, the City anticipates it will receive a CDBG allocation of $2,467,484 and an ESG allocation of $2,343,005. If HUD authorizes additional resources, the City will further amend this Action Plan.

Anticipated Resources
Program Source of
Funds
Use of Funds CARES Act
Allocation
Narrative
Description
CDBG-CV PublicFederal
• Planning and Administration
• Economic Development
• Housing
• Public Services
$2,467,484 CDBG activities to
prevent, prepare,
or respond to
COVID-19
ESG-CV PublicFederal
• Homeless Prevention
• Rapid Rehousing
$2,343,005 ESG activities to
prevent, prepare,
or respond to
COVID-19
Table 2 - Expected Resources
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied In the initial planning and programming of these resources, the Community Development Department has worked closely with other city departments as well as County, State, and Federal partners to identify other available resources authorized through the CARES Act, the Small Business Administration (SBA), and Federal Emergency Management Agency (FEMA) that can be leveraged to maximize the impact of the CDBG-CV and ESG-CV resources.
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OMB Control No: 2506-0117 (exp. 09/30/2021)
Annual Goals and Objectives – 91.220(c)(3)
To allocate the CDBG-CV and ESG-CV programs, the City of Fontana has established one new goal for the Annual Action Plan.

Goals Summary Information
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome
Indicator
1 COVID-19
Response
2019 2022 Affordable
Housing; NonHousing
Community
Development;
Homeless
Citywide COVID-19 Impact CDBG:
$2,467,484
ESG: $2,343,005
200
households;
2,266 overnight
beds
300 persons
(homeless
prevention);
5 persons
(rapid
rehousing)
200 persons
(street
outreach); 125
persons
(emergency
shelter); 25
persons
(temporary
emergency
shelter)
Table 3 – Annual Goals
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OMB Control No: 2506-0117 (exp. 09/30/2021)
Projects – 91.220(d)
Introduction
With the CDBG-CV and ESG-CV allocations, the City of Fontana will fund the following projects.

Projects
# Project Name
1 Program Administration
2 Housing Assistance
3 ESG-CV Assistance
4 Homeless Services Operations
Table 4 – Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs These projects were determined in consultation with City staff, departments, and stakeholders serving low- and moderate-income residents of Fontana to identify critical needs resulting from COVID-19 within the City.

Project Summary Information
1 Project Name Program Administration
Target Area Citywide
Goals Supported COVID-19 Response
Needs Addressed COVID-19 Impact
Funding CDBG: $493,496
Description Overall administration of the CDBG-CV Program including:
completion of grant application, oversight of citizen
participation process, development of annual funding
contracts with agencies, set up of projects in HUD funds disbursement system and draw down funds, implementation of projects and compliance with HUD reporting requirements.

Eligibility of this activity is based on Section 105(a)(13) of HUD's regulation.

Target Date 9/30/2022
Estimate the number and type
of families that will benefit from
the proposed activities
n/a
Location Description Activities will be managed from City offices.

Planned Activities Planning and Administration of the CDBG-CV Program. 1873
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OMB Control No: 2506-0117 (exp. 09/30/2021)
2 Project Name Housing Assistance
Target Area Citywide
Goals Supported COVID-19 Response
Needs Addressed COVID-19 Impact
Funding CDBG: $1,663,988
Description Through this program, the City will provide short-term (3 consecutive months) of housing assistance to households adversely impacted by COVID-19 and operational support to homeless service providers.

Target Date 12/31/2021
Estimate the number and type
of families that will benefit from
the proposed activities
It is estimated that 200 low- and moderate-income households will benefit from this activity
Location Description Citywide
Planned Activities This program will provide immediate financial housing assistance to low- and moderate-income households that were adversely impacted by COVID-19 and are unable to pay rent or mortgage payments and will be at risk of eviction or
foreclosure when current housing eviction moratoriums
expire. Additionally, it will provide operation support to homeless services providers.
3 Project Name ESG-CV Assistance
Target Area Citywide
Goals Supported COVID-19 Response
Needs Addressed COVID-19 Impact
Funding ESG: $2,343,005
Description Support a continuum of services in Fontana and San Bernardino County to prevent and eliminate homelessness for households impacted by COVID-19 including but not limited to homeless prevention and rapid rehousing programs
Target Date 9/30/2022
Estimate the number and type
of families that will benefit from
the proposed activities
(see planned activities below)
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Annual Action Plan Fontana 16
OMB Control No: 2506-0117 (exp. 09/30/2021)
Location Description Citywide
Planned Activities Street Outreach (200 persons assisted ) $272,438 Emergency Shelter (125 persons assisted) $333,949
Rapid Re-Housing (5 persons) $94,028
Homeless Prevention (300 persons) $632,517
Temporary Emergency Shelter (25 persons): $700,000
HMIS $75,774
ESG Program Administration $234,299
4 Project Name Homeless Services Operations
Target Area Citywide
Goals Supported COVID-19 Response
Needs Addressed COVID-19 Impact
Funding CDBG-CV $340,000
Description Provide operating assistance to homeless services operations.

Target Date 9/30/2023
Estimate the number and type
of families that will benefit from
the proposed activities
It is estimates this will benefit approximately 75 households experiencing or at risk of experiencing homelessness.

Location Description Citywide
Planned Activities Vouchers
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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-1692 Agenda Date: 9/13/2022
Agenda #: C. Category: Public Hearing
FROM:

Finance
SUBJECT:

Public Hearing on Formation of Community Facilities District No. 111 (Monterado) RECOMMENDATION:

1. Adopt Resolution No. 2022-117, of the City Council of the City of Fontana of formation of the City of Fontana Community Facilities District No. 111 (Monterado), authorizing the levy of a special tax within the community facilities district and establishing an appropriations limit for the community facilities district.

2. Adopt Resolution No. 2022-118, of the City Council of the City of Fontana deeming it necessary to incur bonded indebtedness within the City of Fontana Community Facilities District No. 111 (Monterado).

3. Adopt Resolution No. 2022-119, of the City Council of the City of Fontana calling special election for City of Fontana Community Facilities District No. 111 (Monterado).

4. Adopt Resolution No. 2022-120, of the City Council of the City of Fontana declaring results of special election and directing the recording of notice of special tax lien.

5. Read by title only and waive further reading of and introduce Ordinance No. 1904 levying special taxes within the City of Fontana Community Facilities District No. 111 (Monterado); and that the reading of the title constitutes the first reading thereof.

6. Adopt Resolution No. 2022- 121, of the City Council of the City of Fontana authorizing the execution and delivery of a Letter of Credit Agreement and an Acquisition and Funding Agreement.

COUNCIL GOALS:
· Practice sound fiscal management by developing long-term funding and debt management plans.

DISCUSSION:

Lennar Homes of California, Inc. has initiated the process to form a Community Facilities District for the purpose of financing the acquisition of certain public facilities that are eligible under the City financing goals and policies, namely sewer, storm drain, street improvements, landscaping, and development impact fees. The formation of the district will benefit the City by funding the infrastructure projects outside of the typical improvements that would be required for the project including a contribution for a project of community benefit. CFD bond funding will allow for City of Fontana Page 1 of 2 Printed on 9/7/2022
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File #: 21-1692 Agenda Date: 9/13/2022
Agenda #: C. Category: Public Hearing
including a contribution for a project of community benefit. CFD bond funding will allow for infrastructure to be built at one time reducing construction inconvenience for earlier residents and enhancing the overall community aesthetics.

The project consists of approximately 21.67 gross (11.55 net taxable) acres (198 residential lots), is located on the west side of Citrus Avenue north of Duncan Canyon Road.

On July 26, 2022, the City Council adopted a resolution of intent to establish Community Facilities District No. 111 (Monterado) and to incur bonded indebtedness of the district.

The proposed Rate and Method of Apportionment (RMA) includes rates to pay for bonded indebtedness and maintenance of street lighting, landscaping and parks. Initial assigned residential rates are proposed as follows:

Land
Use
Class
Residential Floor Area Bond
Debt
Maint Total
1 2,250 sf or Greater $3,258 $366 $3,624
2 2,050 sf to less than 2,250 sf $3,218 $366 $3,584
3 1,850 sf to less than 2,050 sf $3,031 $366 $3,397
4 1,650 sf to less than 1,850 sf $2,940 $366 $3,306
5 Less than 1,650 sf $2,907 $366 $3,273
Sales prices for the homes have been estimated at $580,000 to $642,000. The proposed rates have been established to provide a total tax rate of less than 1.95% of the home value per City Policy.

The proposed rates for bonded indebtedness will support $7.3 million of bonds, providing funds to finance $6.0 million of facilities and/or fees. The proposed annual rate for maintenance of $366 will be sufficient to fund the annual maintenance costs for street lighting, landscaping and parks within and surrounding the area of the CFD. The rate also includes the maintenance costs related to the water quality system required by the State of California. The maximum annual tax rate for maintenance have been set at $510 per unit with a 2% escalator per City Policy.

This action will form the District, authorize the levy of the special tax and authorize bonded indebtedness. The recommended action complies with the City Council’s debt management objectives.

FISCAL IMPACT:

This District will provide annual funding for maintenance costs, administration and debt service costs once bonds are issued.

MOTION:

Approve staff recommendation.

City of Fontana Page 2 of 2 Printed on 9/7/2022
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4132-1999-4170.2
RESOLUTION NO. 2022-117

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF FONTANA OF FORMATION OF THE CITY OF
FONTANA COMMUNITY FACILITIES DISTRICT NO. 111
(MONTERADO), AUTHORIZING THE LEVY OF A

SPECIAL TAX WITHIN THE COMMUNITY FACILITIES

DISTRICT AND ESTABLISHING AN APPROPRIATIONS

LIMIT FOR THE COMMUNITY FACILITIES DISTRICT
WHEREAS, on July 26, 2022, the City Council (the “City Council”) of the City of Fontana (the “City”), pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), adopted a resolution entitled “A Resolution of the City Council of the City of Fontana of Intention to Establish a Community Facilities District Proposed to be Named City of Fontana Community Facilities District No. 111 (Monterado), and to Authorize the Levy of a Special Tax” (the “Resolution of Intention”), stating its intention to establish a community facilities district (the “Community Facilities District”) proposed to be named City of Fontana Community Facilities District No. 111 (Monterado), to authorize the levy of a special tax within the Community Facilities District to finance certain public facilities and services and setting the date for a public hearing to be held on the establishment of the Community Facilities District; WHEREAS, pursuant to the Resolution of Intention, notice of said public hearing was published in the Fontana Herald News, a newspaper of general circulation published in the area of the Community Facilities District, in accordance with the Act; WHEREAS, on this date, the City Council opened, conducted and closed said public hearing;
WHEREAS, pursuant to the Resolution of Intention, each officer of the City who is or will be responsible for providing one or more of the proposed types of public facilities or services was directed to study, or cause to be studied, the proposed Community Facilities District and, at or before said public hearing, file a report with the City Council containing a brief description of the public facilities and services by type that will in his or her opinion be required to adequately meet the needs of the Community Facilities District, and his or her estimate of the cost of providing such public facilities and services; such officers were also directed to estimate the fair and reasonable cost of the public facilities proposed to be purchased as completed public facilities and of the incidental expenses proposed to be paid;
WHEREAS, said report was so filed with the City Council and made a part of the record of said public hearing;
WHEREAS, at the hearing, the testimony of all persons for or against the establishment of the Community Facilities District, the extent of the Community Facilities District and the furnishing of the specified types of public facilities and services was heard; WHEREAS, written protests against the establishment of the Community Facilities District, the furnishing of any specified type or types of facilities and services within the 1878
2 4132-1999-4170.2
Community Facilities District or the levying of any specified special tax were not made or filed at or before said hearing by 50% or more of the registered voters, or six registered voters, whichever is more, residing within the territory proposed to be included in the Community Facilities District, or the owners of one-half or more of the area of land in the territory proposed to be included in the Community Facilities District and not exempt from the special tax; WHEREAS, there has been filed with the City Clerk of the City a letter from the Registrar of Voters of the County of San Bernardino indicating that no persons were registered to vote within the territory of the proposed Community Facilities District as of July 19, 2022, and, accordingly, that 12 or more persons have not been registered to vote within the territory of the proposed Community Facilities District for each of the 90 days preceding the close of said public hearing; WHEREAS, Section 53314.9 of the Act provides that, at any time either before or after the formation of a community facilities district, the legislative body may accept advances of funds from any source, including, but not limited to, private persons or private entities and may provide, by resolution, for the use of those funds for any authorized purpose, including, but not limited to, paying any cost incurred by the local agency in creating a community facilities district; WHEREAS, Section 53314.9 of the Act further provides that the legislative body may enter into an agreement, by resolution, with the person or entity advancing the funds, to repay all or a portion of the funds advanced, as determined by the legislative body, with or without interest, under all the following conditions: (a) the proposal to repay the funds is included in both the resolution of intention to establish a community facilities district adopted pursuant to Section 53521 of the Act and in the resolution of formation to establish a community facilities district pursuant to Section 53325.1 of the Act, (b) any proposed special tax is approved by the qualified electors of the community facilities district pursuant to the Act, and (c) any agreement shall specify that if the qualified electors of the community facilities district do not approve the proposed special tax, the local agency shall return any funds which have not been committed for any authorized purpose by the time of the election to the person or entity advancing the funds; WHEREAS, the City and Lennar Homes of California, LLC, a California limited liability company (the “Landowner”), entered into a Deposit and Reimbursement Agreement, dated as of June 1, 2022 (the “Deposit Agreement”), that provides for the advancement of funds by the Landowner to be used to pay costs incurred in connection with the establishment of the Community Facilities District and the issuance of special tax bonds thereby, and provides for the reimbursement to the Landowner of such funds advanced, without interest, from the proceeds of any such bonds issued by the Community Facilities District; and WHEREAS, in accordance with Section 53314.9 of the Act, the City desires to accept such advances and to reimburse the Landowner therefor, without interest, from the proceeds of special tax bonds issued by the Community Facilities District; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fontana as follows:

Section 1. The foregoing recitals are true and correct.

Section 2. The Community Facilities District is hereby established pursuant to the Act. 1879
3 4132-1999-4170.2
Section 3. The Community Facilities District is hereby named “City of Fontana Community Facilities District No. 111 (Monterado).”
Section 4. The public facilities (the “Facilities”) proposed to be financed by the Community Facilities District pursuant to the Act are described under the caption “Facilities” on Exhibit A hereto, which is by this reference incorporated herein. Those Facilities proposed to be purchased as completed public facilities are described under the caption “Facilities to be Purchased” on Exhibit A hereto. The services (the “Services”) proposed to be financed by the Community Facilities District pursuant to the Act are described under the caption “Services” on Exhibit A hereto. The incidental expenses proposed to be incurred are described under the caption “Incidental Expenses” on Exhibit A hereto. All or any portion of the Facilities may be financed through a financing plan, including, but not limited to, a lease, lease-purchase or installmentpurchase arrangement.

Section 5. The proposed special tax to be levied within the Community Facilities District has not been precluded by majority protest pursuant to Section 53324 of the Act.

Section 6. Except where funds are otherwise available, a special tax (the “Special Tax”) sufficient to pay for all Facilities and Services, secured by recordation of a continuing lien against all nonexempt real property in the Community Facilities District, will be annually levied within the Community Facilities District. The rate and method of apportionment of the Special Tax (the “Rate and Method”), in sufficient detail to allow each landowner within the proposed Community Facilities District to estimate the maximum amount that he or she will have to pay, is described in Exhibit B attached hereto, which is by this reference incorporated herein. The conditions under which the obligation to pay the Special Tax to pay for Facilities may be prepaid and permanently satisfied are specified in the Rate and Method. The Special Tax will be collected in the same manner as ordinary ad valorem property taxes or in such other manner as the City Council shall determine, including direct billing of the affected property owners.

Section 7. The tax year after which no further Special Tax to pay for Facilities will be levied against any parcel used for private residential purposes is specified in the Rate and Method.

Under no circumstances shall the Special Tax to pay for Facilities in any fiscal year against any parcel used for private residential purposes be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the Community Facilities District by more than 10% above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults. For purposes of this paragraph, a parcel shall be considered “used for private residential purposes” not later than the date on which an occupancy permit for private residential use is issued.

Section 8. Pursuant to Section 53344.1 of the Act, the City Council hereby reserves to itself the right and authority to allow any interested owner of property within the Community Facilities District, subject to the provisions of said Section 53344.1 and to those conditions as it may impose, and any applicable prepayment penalties as prescribed in the bond indenture or comparable instrument or document, to tender to the Community Facilities District treasurer in full payment or part payment of any installment of the Special Tax or the interest or penalties thereon which may be due or delinquent, but for which a bill has been received, any bond or other 1880
4 4132-1999-4170.2
obligation secured thereby, the bond or other obligation to be taken at par and credit to be given for the accrued interest shown thereby computed to the date of tender.

Section 9. The name, address and telephone number of the office that will be responsible for preparing annually a current roll of Special Tax levy obligations by assessor’s parcel number and that will be responsible for estimating further Special Tax levies pursuant to Section 53340.2 of the Act are as follows: Chief Financial Officer, Management Services, City of Fontana, 8353 Sierra Avenue, Fontana, California 92335, (909) 350-7679.

Section 10. Upon recordation of a notice of Special Tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the Special Tax shall attach to all nonexempt real property in the Community Facilities District and this lien shall continue in force and effect until the Special Tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the tax by the City Council ceases.

Section 11. The boundary map of the Community Facilities District has been recorded in San Bernardino County in Book 90 at Page 50 of Maps of Assessments and Community Facilities Districts in the San Bernardino County Recorder’s Office (Document No. 2022-0266763).

Section 12. The annual appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, of the Community Facilities District is hereby established at $8,000,000.

Section 13. Pursuant to the provisions of the Act, the levy of the Special Tax and a proposition to establish the appropriations limit specified above shall be subject to the approval of the qualified electors of the Community Facilities District at a special election. The City Council hereby finds and determines that no persons were registered to vote within the territory of the proposed Community Facilities District as of July 19, 2022, and that 12 or more persons have not been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of the public hearing held by the City Council on the establishment of the Community Facilities District. Accordingly, pursuant to Section 53326 of the Act, the vote shall be by the landowners of the Community Facilities District and each person who is the owner of land as of the close of said public hearings, or the authorized representative thereof, shall have one vote for each acre or portion of an acre that he or she owns within the Community Facilities District not exempt from the Special Tax. The voting procedure shall be by mailed or hand-delivered ballot.

Section 14. The Landowner has heretofore advanced certain funds, and may advance additional funds, which have been or may be used to pay costs incurred in connection with the creation of the Community Facilities District and the issuance of special tax bonds thereby. The City Council has previously approved the acceptance of such funds for the purpose of paying costs incurred in connection with the creation of the Community Facilities District and the issuance of special tax bonds thereby. The City Council proposes to repay all or a portion of such funds expended for such purpose, solely from the proceeds of such bonds, pursuant to the Deposit Agreement. The Deposit Agreement is hereby incorporated herein as though set forth in full herein. 1881
5 4132-1999-4170.2
Section 15. The City Council hereby finds and determines that all proceedings up to and including the adoption of this Resolution were valid and in conformity with the requirements of the Act. In accordance with Section 53325.1 of the Act, such finding shall be final and conclusive.

Section 16. All actions heretofore taken by the officers, employees and agents of the City with respect to the establishment of the Community Facilities District, or in connection with or related to any of the matters referred to herein, are hereby approved, confirmed and ratified.

Section 17. The officers, employees and agents of the City are hereby authorized and directed to take all actions and do all things which they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof.

Section 18. This Resolution shall take effect immediately upon its adoption.

APPROVED and ADOPTED by the City Council of the City of Fontana on September 13, 2022.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney
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4132-1999-4170.2

EXHIBIT A

FACILITIES, SERVICES AND INCIDENTAL EXPENSES
Facilities
The types of facilities to be financed by the Community Facilities District are streets, including grading, paving, curbs and gutters, sidewalks, street signalization and signage, street lights and parkway and landscaping related thereto, sewers, storm drains, flood control facilities, fire protection facilities, police facilities, public facilities, landscaping, library facilities, park and recreational facilities, and land, rights-of-way and easements necessary for any of such facilities.

Facilities to be Purchased
The types of facilities to be purchased as completed facilities are streets, including grading, paving, curbs and gutters, sidewalks, street signalization and signage, street lights and parkway and landscaping related thereto, sewers, storm drains, fire protection facilities, police facilities, public facilities, landscaping, library facilities, park and recreational facilities, and land, rights-ofway and easements necessary for any of such facilities.

Services
The types of services to be financed by the Community Facilities District are fire protection and suppression services, maintenance and lighting of parks, parkways, streets, roads and open space, flood and storm protection services and maintenance and operation of any real property or other tangible property with an estimated useful life of five or more years that is owned by the City.

Incidental Expenses
The incidental expenses proposed to be incurred include the following:
(a) the cost of planning and designing public facilities to be financed, including the cost of environmental evaluations of those facilities; (b) the costs associated with the creation of the Community Facilities District, issuance of bonds, determination of the amount of taxes, collection of taxes, payment of taxes, or costs otherwise incurred in order to carry out the authorized purposes of the Community Facilities District; and
(c) any other expenses incidental to the construction, completion, and inspection of the authorized work.
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EXHIBIT B

PROPOSED RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX 1884
City of Fontana July 1, 2022
Community Facilities District No. 111 (Monterado) Page 1

RATE AND METHOD OF APPORTIONMENT FOR
CITY OF FONTANA COMMUNITY FACILITIES DISTRICT No. 111
(MONTERADO)
A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels of Taxable Property in City of Fontana Community Facilities District No. 111 (Monterado) ("CFD No. 111") and collected each Fiscal Year, in an amount determined by the City Council of the City of Fontana, through the application of the Rate and Method of Apportionment as described below. All of the real property in CFD No. 111, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre" or "Acreage" means the land area expressed in acres of an Assessor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded County map or the land area calculated to the reasonable satisfaction of the CFD Administrator using the boundaries set forth on such map or plan. The square footage of an Assessor’s Parcel is equal to the Acreage of such parcel multiplied by 43,560. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 (commencing with Section 53311) of the California Government Code. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 111, including but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 111 or any designee thereof of complying with arbitrage rebate requirements with respect to the Special Tax and CFD No. 111 Bonds; the costs to the City, CFD No. 111 or any designee thereof of complying with disclosure requirements of the City, CFD No. 111 or obligated persons associated with applicable federal and state securities laws and the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 111, or any designee thereof related to the reduction of the Assigned Facilities Special Tax and Backup Facilities Special Tax in accordance with Section C.1 herein; the costs of the City, CFD No. 111 or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees and third party expenses related to CFD No. 111 Bonds. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 111 for any other administrative purposes of CFD No. 111, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Assessor" means the Assessor of the County.
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Community Facilities District No. 111 (Monterado) Page 2 "Assessor's Parcel" means a lot or parcel to which an Assessor’s parcel number is assigned as determined from an Assessor’s Parcel Map or the applicable assessment roll. "Assessor's Parcel Map" means an official map of the Assessor designating parcels by Assessor’s Parcel number.
"Assigned Facilities Special Tax" means the Facilities Special Tax for each Land Use Class of Developed Property, as determined in accordance with Section C.1.a.(2) below. "Assigned Services Special Tax" means the Services Special Tax, determined in accordance with Section C.2.b herein, that can be levied in any Fiscal Year on any Assessor’s Parcel of Developed Property.
"Authorized Facilities" means those facilities eligible to be funded by CFD No. 111. "Authorized Services" means those services eligible to be funded by CFD No. 111 in accordance with the Act, including, but not limited to, fire protection and suppression services, maintenance and lighting of parks, parkways, streets, roads and open space, flood and storm protection services and maintenance and operation of any real property or other tangible property with an estimated useful life of five or more years that is owned by the City. "Backup Facilities Special Tax" means the Facilities Special Tax applicable to each Assessor's Parcel of Developed Property, as determined in accordance with Section C.1.a.(3) below. "Buildout" means, for CFD No. 111, that all expected building permits for residential dwelling units and/or non-residential development to be constructed within CFD No. 111 have been issued, as determined by the CFD Administrator.
"CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement for Facilities and the Special Tax Requirement for Services, providing for the levy and collection of the Special Taxes, and performing other duties as set forth herein.
"CFD No. 111" means City of Fontana Community Facilities District No. 111 (Monterado). "CFD No. 111 Bonds" means any bonds or other debt (as defined in Section 53317(d) of the Act), whether in one or more series, issued by CFD No. 111 and secured by the Facilities Special Tax levy on property within the boundaries of CFD No. 111 under the Act. "City" means the City of Fontana, California.
"Contractual Impositions" means (a) a voluntary contractual assessment established and levied on an Assessor’s Parcel pursuant to Chapter 29 of Part 3 of Division 7 of the California Streets and Highways Code (commencing with Section 5898.10 et seq.), as amended from time to time, (b) a special tax established and levied on an Assessor’s Parcel pursuant to Section 53328.1 of the California Government Code and related provisions of the Act, as amended from time to time, and 1886
City of Fontana July 1, 2022
Community Facilities District No. 111 (Monterado) Page 3 (c) any other fee, charge, tax or assessment established and levied on an individual Assessor’s Parcel pursuant to a contractual agreement or other voluntary consent by the owner thereof. "Council" means the City Council of the City acting as the legislative body of CFD No. 111. "County" means the County of San Bernardino.
"Developed Property" means, for each Fiscal Year, (i) with respect to the Facilities Special Tax, all Taxable Property, exclusive of Taxable Public Property and Taxable Property Owner Association Property, for which a building permit for new construction, other than the construction of a garage, parking lot, or parking structure, was issued after January 1, 2022 and on or before May 1 of the Fiscal Year preceding the Fiscal Year for which the Facilities Special Taxes are being levied, and (ii) with respect to the Services Special Tax, all Taxable Property, exclusive of Taxable Public Property and Taxable Property Owner Association Property, (a) for which the Final Residential Subdivision was recorded prior to the Fiscal Year for which the Services Special Taxes are being levied, or (b) for which a building permit has been issued with respect to Non-Residential Property on or before May 1 of the Fiscal Year preceding the Fiscal Year for which the Services Special Taxes are being levied.
"Facilities Special Tax" means the special tax authorized to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property within CFD No. 111 to fund the Special Tax Requirement for Facilities, as set forth in Section C.1 herein.
"Final Residential Subdivision" means a Final Subdivision that creates individual lots for which building permits may be issued for residential dwelling units without further subdivision of such property.
"Final Subdivision" means (i) a subdivision of property by recordation of a final map, parcel map, or lot line adjustment approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) that creates individual lots or parcels for which building permits may be issued, or (ii) for condominiums, a final map approved by the City and a condominium plan recorded pursuant to California Civil Code Section 4285 that creates an individual lot(s) for which a building permit(s) may be issued without further subdivision. The term "Final Subdivision" shall not include any Assessor’s Parcel Map or subdivision map or portion thereof that does not create individual lots for which a building permit may be issued, including Assessor’s Parcels that are designated as remainder parcels. Notwithstanding the above, a condominium plan for which one or more building permits have been issued, but no individual lots have been created for such building permits, shall be considered a Final Subdivision, and the portion of the condominium plan for which building permits have been issued shall be defined as Developed Property.
"Fiscal Year" means the period starting July 1 and ending on the following June 30. "Indenture" means the indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which CFD No. 111 Bonds are issued, as modified, amended and/or supplemented from time to time.
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Community Facilities District No. 111 (Monterado) Page 4 "Land Use Class" means any of the classes listed in Table 1, Table 2, or Table 3 herein. "Lower Income Households Welfare Exemption Property" means, for each Fiscal Year, an Assessor’s Parcel within the boundaries of CFD No. 111 that is entitled to a welfare exemption under subdivision (g) of Section 214 of the California Revenue and Taxation Code (or any successor statute), as indicated in the County’s assessment roll finalized as of the last preceding January 1.
"Maximum Facilities Special Tax" means the maximum Facilities Special Tax, determined in accordance with Section C.1 herein, that can be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
"Maximum Services Special Tax" means the maximum Services Special Tax, determined in accordance with Section C.2 herein, that can be levied in any Fiscal Year on any Assessor’s Parcel of Developed Property.
"Minimum Sale Price" means the minimum price at which parcels of a given Land Use Class have sold or are expected to be sold in a normal marketing environment and shall not include prices for such parcels that are sold at a discount to expected sales prices for the purpose of stimulating the initial sales activity with respect to such Land Use Class. "Non-Residential Property" means all Assessor’s Parcels of Developed Property for which a building permit(s) has been issued by the City permitting the construction of one or more nonresidential structures or facilities. "Outstanding Bonds" means all CFD No. 111 Bonds which are outstanding under the Indenture. "Price Point Consultant" means any consultant or firm of such consultants selected by CFD No. 111 that (a) has substantial experience in performing price point studies for residential dwelling units within community facilities districts or otherwise estimating or confirming pricing for residential dwelling units in community facilities districts, (b) has recognized expertise in analyzing economic and real estate data that relates to the pricing of residential dwelling units in community facilities districts, (c) is in fact independent and not under the control of CFD No. 111 or the City, (d) does not have any substantial interest, direct or indirect, with or in (i) CFD No. 111, (ii) the City, (iii) any owner of real property in CFD No. 111, or (iv) any real property in CFD No. 111, and (e) is not connected with CFD No. 111 or the City as an officer or employee thereof, but who may be regularly retained to make reports to CFD No. 111 or the City. "Price Point Study" means a price point study or a letter updating a previous price point study prepared by the Price Point Consultant pursuant to Section C herein. "Property Owner Association Property" means, for each Fiscal Year, (i) any property within the boundaries of CFD No. 111 for which the owner of record, as determined from the County’s assessment roll for the Fiscal Year in which the Special Tax is being levied, is a property owner’s association, including any master or sub-association, or (ii) any property located in a Final Subdivision that was recorded as of the January 1 preceding the Fiscal Year in which the Special Tax is being levied and which, as determined from such Final Subdivision, is or will be open space, 1888
City of Fontana July 1, 2022
Community Facilities District No. 111 (Monterado) Page 5 a common area recreation facility, or a private street. Notwithstanding the foregoing, any property previously classified as Developed Property and subsequently owned in fee or by easement, or dedicated to, a property owner association, including any master or sub-association, shall remain classified as Developed Property.
"Proportionately" means that the ratio of the actual Facilities Special Tax levy to the Assigned Facilities Special Tax is equal for all Assessor’s Parcels of Developed Property, and that the ratio of the actual Services Special Tax levy to the Assigned Services Special Tax is equal for all Assessor’s Parcels of Developed Property. For Undeveloped Property, "Proportionately" means that the ratio of the actual Facilities Special Tax levy per Acre to the Maximum Facilities Special Tax per Acre is equal for all Assessor’s Parcels of Undeveloped Property. The term "Proportionately" shall similarly be applied to other categories of Taxable Property as listed in Section D herein.
"Public Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 111 that is (i) owned by, irrevocably offered or dedicated to the federal government, the State, the County, the City, or any local government or other public agency, provided, however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use; or (ii) encumbered by a public utility easement making impractical its use for any purpose other than that set forth in the easement. "Rate and Method of Apportionment" means this Rate and Method of Apportionment for CFD No. 111.
"Residential Floor Area" means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Residential Floor Area for an Assessor’s Parcel shall be as set forth in the building permit(s) issued for such Assessor’s Parcel and/or as set forth in the appropriate records kept by the Building and Safety Department of the City, or other applicable City department, as determined by the CFD Administrator. "Residential Property" means all Assessor’s Parcels of Developed Property for which a building permit(s) has been issued by the City permitting the construction thereon of one or more residential dwelling units.
"Services Special Tax" means the special tax authorized to be levied in each Fiscal Year on each Assessor’s Parcel of Developed Property within CFD No. 111 to fund the Special Tax Requirement for Services, as set forth in Section C.2 herein.
"Special Tax" means the Facilities Special Tax and/or Services Special Tax, as applicable. "Special Tax Requirement for Facilities" means, for any Fiscal Year, that amount required, after taking into account available amounts held in the funds and accounts under the Indenture, for the following items: (i) debt service on all Outstanding Bonds due in the calendar year commencing in such Fiscal Year; (ii) periodic costs with respect to the CFD No. 111 Bonds, including but not limited to, costs of credit enhancement and federal rebate payments due in the calendar year commencing in such Fiscal Year; (iii) pay all or a portion of Administrative Expenses; (iv) any 1889
City of Fontana July 1, 2022
Community Facilities District No. 111 (Monterado) Page 6 amounts required to establish or replenish any reserve funds for all Outstanding Bonds; (v) without duplicating any amounts described in clause (iv), above, reasonably anticipated Facilities Special Tax delinquencies based on the delinquency rate for the Facilities Special Tax in the previous Fiscal Year, as said levy for delinquencies shall be limited by the Act; and (vi) pay directly for the acquisition or construction of Authorized Facilities, provided that the inclusion of such amount does not increase the Facilities Special Tax levy beyond the first step in Section D.1 herein. "Special Tax Requirement for Services" means that amount required in any Fiscal Year for CFD No. 111 to (i) pay directly for the Authorized Services; (ii) pay Administrative Expenses not funded through the Special Tax Requirement for Facilities as determined by the CFD Administrator; (iii) pay for reasonably anticipated Services Special Tax delinquencies based on the delinquency rate for the Services Special Tax levy in the previous Fiscal Year; less (iv) a credit for funds available to reduce the annual Services Special Tax levy, as determined by the CFD Administrator, so long as the amount required is not less than zero. "State" means the State of California.
"Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No. 111 which are not exempt from the Special Tax pursuant to applicable law or Section E herein. "Taxable Property Owner Association Property" means all Assessor’s Parcels of Property Owner Association Property that are not exempt pursuant to Section E herein. "Taxable Public Property" means all Assessor’s Parcels of Public Property that are not exempt pursuant to Section E herein.
"Total Tax Burden" means, for a parcel of residential property within a Land Use Class, for the Fiscal Year in which the Total Tax Burden is being calculated, the sum of (a) the Assigned Facilities Special Tax for such Fiscal Year, plus (b) the Assigned Services Special Tax for such Fiscal Year, plus (c) the ad valorem property taxes, special assessments, special taxes for any overlapping community facilities districts, and any other governmental fees, charges (other than fees or charges for services such as sewer and trash), taxes and assessments (which, for purposes of clarity, do not include Contractual Impositions) collected by the County on ad valorem tax bills and that the CFD Administrator estimates would be levied or imposed on such residential property in such Fiscal Year if the residential dwelling unit thereon or therein had been completed and sold, and was subject to such fees, charges, taxes and assessments in such Fiscal Year. "Trustee" means the trustee or fiscal agent under the Indenture. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Taxable Public Property or Taxable Property Owner Association Property.

Please refer to additional definitions in Section H herein relating to the Prepayment of Facilities Special Tax.
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Community Facilities District No. 111 (Monterado) Page 7 B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, commencing with Fiscal Year 2022-2023, all Taxable Property within CFD No. 111 shall be classified as Developed Property, Undeveloped Property, Taxable Public Property or Taxable Property Owner Association Property, and shall be subject to Special Taxes in accordance with this Rate and Method of Apportionment determined pursuant to Sections C and D herein.

C. MAXIMUM SPECIAL TAX RATE

1. Facilities Special Tax
At least 30 days prior to the issuance of the first series of CFD No. 111 Bonds, the Assigned Facilities Special Tax on Developed Property (set forth in Table 1) shall be analyzed in accordance with and subject to the conditions set forth in this Section C. At such time, the CFD Administrator shall request the Price Point Consultant to prepare a Price Point Study setting forth the Minimum Sale Price of residential property within each Land Use Class. If based upon such Price Point Study the CFD Administrator calculates that the Total Tax Burden applicable to one or more Land Use Classes of residential property constructed or to be constructed within CFD No. 111 shall exceed 1.95% of the Minimum Sale Price of such residential property constructed or to be constructed within CFD No. 111, the CFD Administrator shall reduce the Assigned Facilities Special Tax to the extent necessary to cause the Total Tax Burden that shall apply to residential property within such Land Use Class(es) to not exceed 1.95% of the Minimum Sale Price of such residential property. Each Assigned Facilities Special Tax reduction for a Land Use Class shall be calculated separately, and it shall not be required that such reduction be proportionate among Land Use Classes. In connection with any reduction in the Assigned Facilities Special Tax, the CFD Administrator shall also reduce the Backup Facilities Special Tax in accordance with Section C.1.a.(3) herein. Upon determining the reductions, if any, in the Assigned Facilities Special Tax and Backup Facilities Special Tax required pursuant to this Section C, the CFD Administrator shall complete the Certificate to Amend Facilities Special Tax substantially in the form attached hereto as Exhibit A (the “Certificate to Amend”) and shall execute such completed Certificate to Amend and shall deliver such Certificate to Amend to CFD No. 111. Upon receipt thereof, if in satisfactory form, CFD No. 111 shall execute such Certificate to Amend. The reduced Assigned Facilities Special Tax and Backup Facilities Special Tax specified in such Certificate to Amend shall become effective upon the execution of such Certificate to Amend by CFD No. 111. The Assigned Facilities Special Tax and Backup Facilities Special Tax reductions permitted pursuant to this Section C shall be reflected in an amended notice of Special Tax lien which CFD No. 111 shall cause to be recorded with the San Bernardino County Recorder as soon as practicable after execution of the Certificate to Amend by CFD No. 111. If based upon such Price Point Study the CFD Administrator calculates that the Total Tax Burden applicable to each Land Use Class of residential property constructed or to be constructed within CFD No. 111 does not exceed 1.95% of the Minimum Sale Price of each such Land Use Class of residential property constructed or to be constructed within CFD No. 111, then there shall be no reduction in the Assigned Facilities Special Tax, nor shall there be a reduction in the Backup Facilities Special Tax. a. Developed Property
(1). Maximum Facilities Special Tax
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Community Facilities District No. 111 (Monterado) Page 8 The Maximum Facilities Special Tax for each Assessor's Parcel classified as Developed Property shall be the greater of (i) the amount derived by application of the Assigned Facilities Special Tax or (ii) the amount derived by application of the Backup Facilities Special Tax.
(2). Assigned Facilities Special Tax
Residential Property shall be assigned to Land Use Classes 1 through 5 as listed in Table 1 below based on the Residential Floor Area for each residential dwelling unit. NonResidential Property shall be assigned to Land Use Class 6. The Assigned Facilities Special Tax that shall be levied in any Fiscal Year for each Land Use Class is shown below in Table 1.

Table 1
Assigned Facilities Special Tax for Developed Property
City of Fontana CFD No. 111 (Monterado)
Land
Use
Class Description
Residential Floor Area
(square feet)
Assigned
Facilities
Special Tax
1 Residential Property 2,250 or Greater $3,258 per unit 2 Residential Property 2,050 to less than 2,250 $3,218 per unit 3 Residential Property 1,850 to less than 2,050 $3,031 per unit 4 Residential Property 1,650 to less than 1,850 $2,940 per unit 5 Residential Property Less than 1,650 $2,907 per unit
6 Non-Residential Property NA $51,640 per Acre
(3). Backup Facilities Special Tax
The Backup Facilities Special Tax for an Assessor’s Parcel of Developed Property shall equal the lesser of (a) $60,750 per Acre, or (b) in connection with any reduction in the Assigned Facilities Special Tax as set forth in Section C.1 herein, the amount per Acre calculated pursuant to the formula below:

BFST = AFST  ATP
These terms have the following meaning:

BFST = the reduced Backup Facilities Special Tax
AFST = The total estimated Assigned Facilities Special Tax levy for CFD No. 111 based on the reduced Assigned Facilities Special Taxes for Developed Property permitted pursuant to Section C.1 herein which could be levied on all expected development assuming Buildout of CFD No. 111.

ATP = The sum of the Acreage of all Taxable Property within a Final Subdivision (assuming Buildout) within CFD No. 111 (after excluding Public Property and 1892
City of Fontana July 1, 2022
Community Facilities District No. 111 (Monterado) Page 9 Property Owner Association Property as set forth in Section E.1 herein) multiplied by 85%.

Furthermore, all Assessors’ Parcels within CFD No. 111 shall be relieved simultaneously and permanently from the obligation to pay and disclose the Backup Facilities Special Tax if the CFD Administrator calculates that (i) the annual debt service required for the Outstanding Bonds, when compared to the Assigned Facilities Special Tax that shall be levied against all Assessors’ Parcels of Developed Property in CFD No. 111 results in 110% debt service coverage (i.e., the Assigned Facilities Special Tax that shall be levied against all Developed Property in CFD No. 111 in each remaining Fiscal Year based on the then existing development is at least equal to the sum of (a) 1.10 times the debt service necessary to support the remaining Outstanding Bonds in each corresponding Fiscal Year, and (b) Administrative Expenses), and (ii) all authorized CFD No. 111 Bonds have already been issued or the Council has covenanted that it shall not issue any additional CFD No. 111 Bonds (except refunding bonds) to be supported by the Facilities Special Tax in CFD No. 111.

(4). Multiple Land Uses
In some instances, an Assessor’s Parcel may contain both Developed Property and Undeveloped Property. In such cases, the Acreage of the Assessor’s Parcel shall be allocated between Developed Property and Undeveloped Property based on the portion of the Assessor’s Parcel for which building permits had been issued prior to May 1 of the prior Fiscal Year and the portion of the Assessor’s Parcel for which building permits had not been issued prior to May 1 of the prior Fiscal Year.

Furthermore, Developed Property may contain more than one Land Use Class. In such cases, the Acreage that is considered Developed Property shall be allocated between Residential Property and Non-Residential Property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Maximum Facilities Special Tax that can be levied on such Assessor’s Parcel shall be the sum of the Maximum Facilities Special Tax that can be levied on each type of property located on that Assessor’s Parcel.

The CFD Administrator’s allocation to each type of property shall be final. b. Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property
The Maximum Facilities Special Tax for each Assessor’s Parcel of Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property shall be $60,750 per Acre and shall not be subject to escalation and shall therefore remain the same in every Fiscal Year.
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Community Facilities District No. 111 (Monterado) Page 10

2. Services Special Tax
For purposes of the Services Special Tax, an Assessor’s Parcel(s) of Developed Property within a Final Residential Subdivision shall be assigned to Land Use Class 1 as identified in Table 2 and Table 3 below. Non-Residential Property shall be assigned to Land Use Class 2. Furthermore, the Services Special Tax levied against each Assessor’s Parcel within a Final Residential Subdivision shall be based on the number of residential dwelling units for which building permits have been issued or are expected to be issued for such Assessor’s Parcel, as determined by the CFD Administrator based on such Final Residential Subdivision of other available documents. a. Maximum Services Special Tax
The Fiscal Year 2022-2023 Maximum Services Special Tax for each Land Use Class of Developed Property is shown below in Table 2.

Table 2
Maximum Services Special Tax for Developed Property
City of Fontana CFD No. 111 (Monterado)
Fiscal Year 2022-2023
Land
Use
Class Description
Maximum
Services
Special Tax
1 Final Residential Subdivision $510 per unit
2 Non-Residential Property $8,780 per Acre
b. Assigned Services Special Tax
The Fiscal Year 2022-2023 Assigned Services Special Tax for each Land Use Class of Developed Property is shown below in Table 3.

Table 3
Assigned Services Special Tax for Developed Property
City of Fontana CFD No. 111 (Monterado)
Fiscal Year 2022-2023
Land
Use
Class Description
Assigned
Services
Special Tax
1 Final Residential Subdivision $366 per unit
2 Non-Residential Property $6,270 per Acre
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Community Facilities District No. 111 (Monterado) Page 11 c. Increase in the Maximum Services Special Tax
On each July 1, commencing on July 1, 2023, the Maximum Services Special Tax shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.
d. Increase in the Assigned Services Special Tax
The Assigned Services Special Tax above shall be applicable for Fiscal Year 2022-2023, and shall increase thereafter, commencing on July 1, 2023, and on each July 1 thereafter in an amount estimated to fund the Special Tax Requirement for Services for the Fiscal Year commencing on such July 1. However, in no case shall the Assigned Services Special Tax for an Assessor’s Parcel of Developed Property exceed the applicable Maximum Services Special Tax for such Assessor’s Parcel of Developed Property in any Fiscal Year. e. Multiple Land Uses
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land Use Class. In such cases, the Acreage of Developed Property shall be allocated between Residential Property and Non-Residential Property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Maximum Services Special Tax that can be levied on such Assessor’s Parcel shall be the sum of the Maximum Services Special Tax that can be levied on each type of property located on that Assessor’s Parcel. The CFD Administrator’s allocation to each type of property shall be final.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX

1. Facilities Special Tax
Commencing with Fiscal Year 2022-2023, and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement for Facilities and shall provide for the levy of the Facilities Special Tax each Fiscal Year as follows:

First: The Facilities Special Tax shall be levied on each Assessor’s Parcel of Developed Property in an amount equal to 100% of the applicable Assigned Facilities Special Tax; Second: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first step has been completed, the Facilities Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property at up to 100% of the Maximum Facilities Special Tax for Undeveloped Property;
Third: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first two steps have been completed, then the levy of the Facilities Special Tax on each Assessor's Parcel of Developed Property for which the Maximum Facilities Special Tax is determined through the application of the Backup Facilities Special Tax shall be increased in equal 1895
City of Fontana July 1, 2022
Community Facilities District No. 111 (Monterado) Page 12 percentages from the Assigned Facilities Special Tax up to the Maximum Facilities Special Tax for each such Assessor's Parcel;
Fourth: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first three steps have been completed, then the Facilities Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Public Property and Taxable Property Owner Association Property at up to 100% of the Maximum Facilities Special Tax for Taxable Public Property and Taxable Property Owner Association Property, as needed to satisfy the Special Tax Requirement for Facilities.

Notwithstanding the above, the CFD Administrator shall, in any Fiscal Year, calculate a levy Proportionately less than 100% of the Assigned Facilities Special Tax in step one (above), when (i) the CFD Administrator is no longer required to provide for the levy of the Facilities Special Tax pursuant to steps two through four above in order to meet the Special Tax Requirement for Facilities; and (ii) all authorized CFD No. 111 Bonds have already been issued or the Council has covenanted that it shall not issue any additional CFD No. 111 Bonds (except refunding bonds) to be supported by the Facilities Special Tax.

Further notwithstanding the above, under no circumstances shall the Facilities Special Tax levied in any Fiscal Year against any Assessor’s Parcel of Residential Property for which an occupancy permit for private residential use has been issued (in accordance with Section 53321(d)(3) of the California Government Code), be increased as a consequence of delinquency or default by the owner of any other Assessor’s Parcel within CFD No. 111 by more than ten percent above the amount that would have been levied in that Fiscal Year had there never been any such delinquencies or defaults. To the extent that the levy of the Facilities Special Tax on Residential Property is limited by the provision in the previous sentence, the levy of the Facilities Special Tax on each Assessor’s Parcel of Non-Residential Property shall continue in equal percentages up to 100% of the applicable Maximum Facilities Special Tax.

2. Services Special Tax
Commencing with Fiscal Year 2022-2023 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement for Services and shall provide for the levy of the Services Special Tax until the total Services Special Tax levy equals the Special Tax Requirement for Services. The Services Special Tax shall be levied each Fiscal Year as follows:

First: The Services Special Tax shall be levied Proportionately each Fiscal Year on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Services Special Tax as needed to satisfy the Special Tax Requirement for Services; Second: If additional monies are needed to satisfy the Special Tax Requirement for Services after the first step has been completed, then the levy of the Services Special Tax on each Assessor's Parcel of Developed Property shall be increased in equal percentages from the Assigned Services Special Tax up to the Maximum Services Special Tax for each such Assessor’s Parcel. 1896
City of Fontana July 1, 2022
Community Facilities District No. 111 (Monterado) Page 13 E. EXEMPTIONS

1. Facilities Special Tax
No Facilities Special Tax shall be levied on up to 9.0 Acres of Public Property and/or Property Owner Association Property in CFD No. 111. Tax-exempt status shall be assigned by the CFD Administrator in the chronological order in which property in CFD No. 111 becomes Public Property or Property Owner Association Property. However, should an Assessor’s Parcel no longer be classified as Public Property or Property Owner Association Property, it shall, from that point forward, be subject to the Facilities Special Tax.

Notwithstanding the above, an Assessor’s Parcel in CFD No. 111 that is transferred to a public agency or property owner’s association prior to the issuance of the first series of CFD No. 111 Bonds that causes the Acreage of Public Property and Property Owner Association Property to exceed the 9.0 Acreage limit that can be designated by the CFD Administrator under this Section E.1 shall also be exempted from paying the Special Tax.

Public Property or Property Owner Association Property that is not exempt from the Facilities Special Tax under this Section E.1 shall be subject to the levy of the Facilities Special Tax and shall be taxed Proportionately as part of the fourth step in Section D.1 herein, at up to 100% of the applicable Maximum Facilities Special Tax for Taxable Public Property and Property Owner Association Property.

In addition, no Facilities Special Tax shall be levied on Lower Income Households Welfare Exemption Property, provided that if, in any Fiscal Year, applicable law does not require that an Assessor’s Parcel that is Lower Income Households Welfare Exemption Property be exempt from the Facilities Special Tax, then the Facilities Special Tax shall be levied on such Assessor’s Parcel in accordance with this Rate and Method of Apportionment as if such Assessor’s Parcel were not classified as Lower Income Households Welfare Exemption Property.

2. Services Special Tax
No Services Special Tax shall be levied on Undeveloped Property, Taxable Public Property, Taxable Property Owner Association Property, Public Property, or Property Owner Association Property.

In addition, no Services Special Tax shall be levied on Lower Income Households Welfare Exemption Property, provided that if, in any Fiscal Year, applicable law does not require that an Assessor’s Parcel that is Lower Income Households Welfare Exemption Property be exempt from the Services Special Tax, then the Services Special Tax shall be levied on such Assessor’s Parcel in accordance with this Rate and Method of Apportionment as if such Assessor’s Parcel were not classified as Lower Income Households Welfare Exemption Property.

F. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 111 may directly bill the Special Tax, and/or 1897
City of Fontana July 1, 2022
Community Facilities District No. 111 (Monterado) Page 14 may collect Special Taxes at a different time or in a different manner if necessary to meet financial obligations, and, to the extent of the Facilities Special Tax, may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels.

G. APPEALS AND INTERPRETATIONS
Any landowner or resident who feels that the amount of the Special Tax levied on his/her Assessor’s Parcel is in error may submit a written appeal to the CFD Administrator, provided that the appellant is current in his/her payment of Special Taxes. During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, a cash refund shall not be made (except for the last year of levy), but the amount of the Special Tax levied shall be appropriately modified through an adjustment to the Special Tax levy in the following Fiscal Year. If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has 30 days in which to appeal to the Council by filing a written notice of appeal with the City Clerk, provided that the appellant is current in his/her payment of Special Taxes. This second appeal must specify the reasons for its disagreement with the CFD Administrator's determination.

The CFD Administrator shall interpret this Rate and Method of Apportionment for purposes of clarifying any ambiguity and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals. Any decision of the CFD Administrator shall be subject to appeal to the Council whose decision shall be final and binding as to all persons.

H. PREPAYMENT OF FACILITIES SPECIAL TAX
Under this Rate and Method of Apportionment, an Assessor’s Parcel within CFD No. 111 is permitted to prepay the Facilities Special Tax. The obligation of the Assessor’s Parcel to pay the Facilities Special Tax may be fully or partially prepaid and permanently satisfied as described herein, provided that a prepayment may be made only for Assessor’s Parcels of Developed Property, or for an Assessor’s Parcel of Undeveloped Property for which a building permit has been issued after January 1, 2022, and only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Facilities Special Tax obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount for such Assessor's Parcel. The CFD Administrator may charge such owner a reasonable fee for providing this service. If there are Outstanding Bonds, prepayment must be made not less than 30 days prior to a date that notice of redemption of CFD No. 111 Bonds from the proceeds of such prepayment may be given by the Trustee pursuant to the Indenture that is specified in the report of the Facilities Special Tax Prepayment Amount (defined below).

The following additional definitions apply to this Section H:
"CFD Public Facilities Costs" means either $5,977,600 in 2022 dollars, which shall increase by the Construction Inflation Index on July 1, 2023, and on each July 1 thereafter, or such lower 1898
City of Fontana July 1, 2022
Community Facilities District No. 111 (Monterado) Page 15 number as (i) shall be determined by the CFD Administrator as sufficient to provide funding for the Authorized Facilities under the authorized bonding program for CFD No. 111, or (ii) shall be determined by the Council concurrently with a covenant that it shall not issue any more CFD No. 111 Bonds (except refunding bonds) to be supported by the Facilities Special Tax levy under this Rate and Method of Apportionment.
"Construction Inflation Index" means the annual percentage change in the Engineering News Record Building Cost Index for the City of Los Angeles, measured as of the month of December in the calendar year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the CFD Administrator that is reasonably comparable to the Engineering News Record Building Cost Index for the City of Los Angeles.
"Future Facilities Costs" means the CFD Public Facilities Costs minus (i) costs of Authorized Facilities previously paid from the Improvement Fund, (ii) moneys currently on deposit in the Improvement Fund available to pay costs of Authorized Facilities, and (iii) the amount the CFD Administrator reasonably expects to derive from the reinvestment of these funds. "Improvement Fund" means a fund or account specifically identified in the Indenture (or prior to the issuance of the first series of CFD No. 111 Bonds a fund or account held by the City) to hold funds which are currently available for expenditure to acquire or construct Authorized Facilities. "Previously Issued Bonds" means, for any Fiscal Year, all Outstanding Bonds that are outstanding under the Indenture after the first interest and/or principal payment date following the current Fiscal Year.

1. Prepayment in Full
The Facilities Special Tax Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below):

Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
Equals Facilities Special Tax Prepayment Amount
As of the proposed date of prepayment, the Facilities Special Tax Prepayment Amount shall be calculated according to the following paragraphs:

1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.

2. For Assessor’s Parcels of Developed Property, compute the Assigned Facilities Special Tax and Backup Facilities Special Tax for the Assessor’s Parcel to be prepaid. For 1899
City of Fontana July 1, 2022
Community Facilities District No. 111 (Monterado) Page 16 Assessor’s Parcels of Undeveloped Property for which a building permit has been issued after January 1, 2022, compute the Assigned Facilities Special Tax and Backup Facilities Special Tax for that Assessor’s Parcel as though it was already designated as Developed Property, based upon the building permit which has already been issued for such Assessor’s Parcel.

3. (a) Divide the Assigned Facilities Special Tax computed pursuant to paragraph 2 by the total estimated Assigned Facilities Special Tax levy for CFD No. 111 based on the Assigned Facilities Special Taxes for Developed Property which could be levied on all expected development assuming Buildout of CFD No. 111, excluding any Assessor’s Parcels for which the Facilities Special Tax has been prepaid, and (b) Divide the Backup Facilities Special Tax computed pursuant to paragraph 2 by the total estimated Backup Facilities Special Taxes at Buildout for the entire CFD No. 111, excluding any Assessor’s Parcels for which the Facilities Special Tax has been prepaid.

4. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the Previously Issued Bonds to compute the amount of Previously Issued Bonds to be redeemed (the "Bond Redemption Amount").

5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium (e.g., the redemption price minus 100%), if any, on the Previously Issued Bonds to be redeemed (the "Redemption Premium").

6. Compute the current Future Facilities Costs.

7. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the amount determined pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be prepaid (the "Future Facilities Amount").

8. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the redemption date for the Previously Issued Bonds specified in the report of the Facilities Special Tax Prepayment Amount.

9. Determine the Facilities Special Tax levied on the Assessor’s Parcel in the current Fiscal Year which has not yet been paid.

10. Compute the minimum amount the CFD Administrator reasonably expects to derive from the reinvestment of the Facilities Special Tax Prepayment Amount, less any interest earnings attributed to the Future Facilities Amount, and less any interest earnings attributed to the Administrative Fees and Expenses (defined below) from the date of prepayment until the redemption date for the Previously Issued Bonds to be redeemed with the prepayment.

11. Add the amounts computed pursuant to paragraphs 8 and 9 and subtract the amount computed pursuant to paragraph 10 (the "Defeasance Amount"). 1900
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Community Facilities District No. 111 (Monterado) Page 17

12. The administrative fees and expenses of CFD No. 111 are as calculated by the CFD Administrator and include the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming CFD No. 111 Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the "Administrative Fees and Expenses").

13. The reserve fund credit (the "Reserve Fund Credit") shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Previously Issued Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Previously Issued Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero. No Reserve Fund Credit shall be granted if the amount then on deposit in the reserve fund for the Previously Issued Bonds is below 100% of the reserve requirement (as defined in the Indenture).

14. If any capitalized interest for the Previously Issued Bonds will not have been expended as of the date immediately following the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the expected balance in the capitalized interest fund or account under the Indenture after such first interest and/or principal payment date (the "Capitalized Interest Credit").

15. The Facilities Special Tax prepayment is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 7, 11 and 12, less the amounts computed pursuant to paragraphs 13 and 14 (the "Facilities Special Tax Prepayment Amount").

2. Prepayment in Part
The owner of any Assessor’s Parcel who desires a partial prepayment of the Facilities Special Tax shall notify the CFD Administrator of such owner’s intent to partially prepay the Facilities Special Tax and the percentage by which the Facilities Special Tax shall be prepaid. The amount of the prepayment shall be calculated as in Section H.1; except that a partial prepayment shall be calculated according to the following formula:

PP = [(PE – A) x F] + A
These terms have the following meaning:

PP = the partial prepayment.

PE = the Facilities Special Tax Prepayment Amount calculated according to Section H.1.

F = the percentage, expressed as a decimal, by which the owner of the Assessor’s Parcel is partially prepaying the Facilities Special Tax.

A = the Administrative Fees and Expenses calculated according to Section H.1. 1901
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Community Facilities District No. 111 (Monterado) Page 18

3. General Provisions Applicable to the Prepayment of Facilities Special Tax (a). Use of the Facilities Special Tax Prepayment Amount The Facilities Special Tax Prepayment Amount, less the Administrative Fees and Expenses calculated according to Section H.1 which shall be retained by CFD No. 111, and less the Future Facilities Amount calculated according to Section H.1 which shall be deposited into the Improvement Fund, shall be deposited into specific funds established under the Indenture, to fully or partially redeem as many Outstanding Bonds as possible, and, if amounts are less than $5,000, to make debt service payments on the Outstanding Bonds. (b). Full Prepayment of Facilities Special Tax
Upon confirmation of the payment of the current Fiscal Year’s entire Facilities Special Tax obligation, the CFD Administrator shall remove the current Fiscal Year’s Facilities Special Tax levy for such Assessor’s Parcel from the County tax rolls. With respect to any Assessor’s Parcel that is prepaid in accordance with Section H.1, the CFD Administrator shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of the Facilities Special Tax and the release of the Facilities Special Tax lien on such Assessor’s Parcel, and the obligation of such Assessor’s Parcel to pay the Facilities Special Tax shall cease.
(c). Partial Prepayment of Facilities Special Tax
With respect to any Assessor’s Parcel that is partially prepaid, the CFD Administrator shall (i) distribute or cause to be distributed the funds remitted to it according to Section H.3.(a) and (ii) indicate in the records of CFD No. 111 that there has been a partial prepayment of the Facilities Special Tax and that a portion of the Facilities Special Tax with respect to such Assessor’s parcel, equal to the outstanding percentage (1.00 – F) of the remaining Maximum Facilities Special Tax, shall continue to be levied on such Assessor’s Parcel pursuant to Section D herein.
(d). Debt Service Coverage
Notwithstanding the foregoing, no prepayment of the Facilities Special Tax shall be allowed unless the amount of Facilities Special Tax that may be levied on Taxable Property (assuming Buildout) within CFD No. 111 in each future Fiscal Year (after excluding Public Property and Property Owner Association Property as set forth in Section E.1 herein), after the proposed prepayment, is at least equal to the sum of (i) 1.10 times the debt service necessary to support the remaining Outstanding Bonds in each corresponding Fiscal Year, and (ii) Administrative Expenses.

I. TERM OF SPECIAL TAX
The Facilities Special Tax shall be levied for a period not to exceed fifty years commencing with Fiscal Year 2022-2023. The Services Special Tax shall be levied in perpetuity to fund the Special Tax Requirement for Services.

T/Clients/FONTANA/MELLO/CFD No. 111 (Monterado)/Rate and Method/Fontana CFD No. 111 (Monterado) RMA v1.docx Printed: July 1, 2022
1902

EXHIBIT A

CERTIFICATE TO AMEND FACILITIES SPECIAL TAX
CFD No. 111 CERTIFICATE

1. Pursuant to Section C.1 of the Rate and Method of Apportionment (the "Rate and Method") for City of Fontana Community Facilities District No. 111 (Monterado) ("CFD No. 111"), the Assigned Facilities Special Tax and the Backup Facilities Special Tax for Developed Property within CFD No. 111 has been reduced as described herein. (a) The information in Table 1 of the Rate and Method relating to the Assigned Facilities Special Tax for Developed Property within CFD No. 111 shall be modified as follows:

Land
Use
Class Description
Residential Floor
Area (square feet)
Original
Assigned
Facilities
Special Tax
Reduced
Assigned
Facilities
Special Tax
1 Residential Property 2,250 or Greater $3,258 per unit $[_____] per unit 2 Residential Property 2,050 to less than 2,250 $3,218 per unit $[_____] per unit 3 Residential Property 1,850 to less than 2,050 $3,031 per unit $[_____] per unit 4 Residential Property 1,650 to less than 1,850 $2,940 per unit $[_____] per unit 5 Residential Property Less than 1,650 $2,907 per unit $[_____] per unit 6 Non-Residential Property NA $51,640 per Acre $[_____] per Acre (b) The Backup Facilities Special Tax for Developed Property, as stated in Section C.1.a.(3) of the Rate and Method, shall be reduced from $60,750 per Acre to $[_____] per Acre.

2. The Assigned Facilities Special Tax and the Backup Facilities Special Tax for Developed Property may only be reduced prior to the first issuance of CFD No. 111 Bonds.

3. Upon execution of the certificate by CFD No. 111, CFD No. 111 shall cause an amended notice of Special Tax lien for CFD No. 111 to be recorded reflecting the reductions set forth herein.

All capitalized terms used herein shall have the meanings set forth in the Rate and Method.

By:___________________________ Date:______________________ CFD Administrator
By execution hereof, the undersigned acknowledge, on behalf of CFD No. 111, receipt of this certificate and modification of the Rate and Method as set forth in this certificate.

CITY OF FONTANA COMMUNITY FACILITIES DISTRICT No. 111 (MONTERADO) By:___________________________ Date:______________________ 1903
4132-1999-4170.2
I, Germaine McClellan Key, City Clerk of the City of Fontana, California, and Ex-Officio Clerk of the City Council, do hereby certify that the foregoing Resolution is the actual Resolution duly and regularly adopted by the City Council of said City at a regular meeting thereof, held on September 13, 2022, by the following vote to-wit:

AYES:

NOES:

ABSENT:

City Clerk
Mayor
ATTEST:

City Clerk
1904
4148-1402-6298.2
RESOLUTION NO. 2022-118

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF FONTANA DEEMING IT NECESSARY TO INCUR

BONDED INDEBTEDNESS WITHIN THE CITY OF
FONTANA COMMUNITY FACILITIES DISTRICT NO. 111
(MONTERADO)
WHEREAS, on July 26, 2022, the City Council (the “City Council”) of the City of Fontana (the “City”), pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), adopted a resolution entitled “A Resolution of the City Council of the City of Fontana of Intention to Establish a Community Facilities District Proposed to be Named City of Fontana Community Facilities District No. 111 (Monterado) and to Authorize the Levy of a Special Tax” stating its intention to establish City of Fontana Community Facilities District No. 111 (Monterado) (the “Community Facilities District”) and to authorize the levy of a special tax within the Community Facilities District to finance certain public facilities and services; WHEREAS, on July 26, 2022, the City Council also adopted a resolution entitled “A Resolution of the City Council of the City of Fontana to Incur Bonded Indebtedness of the Proposed City of Fontana Community Facilities District No. 111 (Monterado)” (the “Resolution to Incur Bonded Indebtedness”) declaring the necessity for incurring bonded indebtedness and setting the date for a public hearing to be held on the proposed debt issue; WHEREAS, pursuant to the Resolution to Incur Bonded Indebtedness, notice of said public hearing was published in the Fontana Herald News, a newspaper of general circulation published in the area of the Community Facilities District, in accordance with the Act; WHEREAS, on this date, the City Council opened, conducted and closed said public hearing;
WHEREAS, at said public hearing, any person interested, including persons owning property within the area and desiring to appear and present any matters material to the questions set forth in the Resolution to Incur Bonded Indebtedness appeared and presented such matters; WHEREAS, oral or written protests against the proposed debt issue were not made or filed at or before said public hearing by 50% or more of the registered voters, or six registered voters, whichever is more, residing within the territory proposed to be included in the Community Facilities District, or the owners of one-half or more of the area of land in the territory proposed to be included in the Community Facilities District and not exempt from the special tax; WHEREAS, on this date, the City Council adopted a resolution entitled “A Resolution of the City Council of the City of Fontana of Formation of the City of Fontana Community Facilities District No. 111 (Monterado), Authorizing the Levy of a Special Tax within the Community Facilities District and Establishing an Appropriations Limit for the Community Facilities District” (the “Resolution of Formation”);
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WHEREAS, the City Clerk of the City (the “City Clerk”) is the election official that will conduct the special election on the proposition to incur bonded indebtedness for the Community Facilities District;
WHEREAS, there has been filed with the City Clerk a letter from the Registrar of Voters of the County of San Bernardino indicating that no persons were registered to vote within the territory of the proposed Community Facilities District as of July 19, 2022, and, accordingly, that 12 or more persons have not been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of said public hearing; WHEREAS, there has been filed with the City Clerk consents and waivers of all of the landowners of record in the Community Facilities District waiving any time limit specified by Section 53326 of the Act and any requirement pertaining to the conduct of said special election, including any time limit or requirement applicable to an election pursuant to Article 5 of the Act (commencing with Section 53345 of the Act), consenting to the holding of said special election on September 13, 2022, and waiving any impartial analysis, arguments or rebuttals, as set forth in Sections 53326 and 53327 of the Act; and
WHEREAS, the City Clerk has concurred in said waivers and has concurred in holding said special election on September 13, 2022;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fontana as follows:

Section 1. The foregoing recitals are true and correct.

Section 2. The City Council deems it necessary to incur the bonded indebtedness.

Section 3. The bonded indebtedness will be incurred for the purpose of financing the costs of the Facilities (as defined in the Resolution of Formation), including all costs and estimated costs incidental to, or connected with, the accomplishment of such purpose.

Section 4. In accordance with the previous determination of the City Council, the whole of the Community Facilities District will pay for the bonded indebtedness.

Section 5. The maximum aggregate amount of debt to be incurred is $8,000,000.

Section 6. The maximum term the bonds to be issued shall run before maturity is 40 years.

Section 7. The maximum annual rate of interest to be paid shall not exceed the maximum interest rate permitted by applicable law at the time of sale of the bonds, payable semiannually or at such times as the City Council or its designee shall determine, the actual rate or rates and times of payment of such interest to be determined by the City Council or its designee at the time or times of sale of the bonds.

Section 8. The proposition to incur the bonded indebtedness shall be submitted to the voters.
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Section 9. The City Council hereby finds and determines that no persons were registered to vote within the territory of the proposed Community Facilities District as of July 19, 2022, and that 12 or more persons have not been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of the public hearings held by the City Council on the proposed debt issue for the Community Facilities District. Accordingly, pursuant to Section 53326 of the Act, the vote shall be by the landowners of the Community Facilities District and each person who is the owner of land as of the close of said public hearings, or the authorized representative thereof, shall have one vote for each acre or portion of an acre that he or she owns within the Community Facilities District not exempt from the special tax.

Section 10. The City Council hereby finds and determines that the qualified electors of the Community Facilities District have unanimously consented (a) to the waiver of any time limit specified by Section 53326 of the Act and any requirement pertaining to the conduct of said election, including any time limit or requirement applicable to an election pursuant to Article 5 of the Act (commencing with Section 53345 of the Act), and (b) to the holding of said election on September 13, 2022. The City Council hereby finds and determines that the City Clerk has concurred in said waivers and has concurred in holding said election on September 13, 2022.

Section 11. The date of the special community facilities district election (which shall be consolidated with the special district election to levy a special tax within the Community Facilities District) at which time the proposition shall be submitted to the voters is September 13, 2022.

Section 12. The election is to be conducted by mail ballot. The mailed ballots are required to be received in the office of the City Clerk no later than 8:30 p.m. on September 13, 2022; provided, however, that if all of the qualified electors have voted prior to such time, the election may be closed with the concurrence of the City Clerk.

Section 13. All actions heretofore taken by the officers, employees and agents of the City with respect to the incurrence of bonded indebtedness, or in connection with or related to any of the matters referred to herein, are hereby approved, confirmed and ratified.

Section 14. The officers, employees and agents of the City are hereby authorized and directed to take all actions and do all things which they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof.

Section 15. This Resolution shall take effect immediately upon its adoption.

APPROVED and ADOPTED by the City Council of the City of Fontana on September 13, 2022.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney
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4 4148-1402-6298.2
I, Germaine McClellan Key, City Clerk of the City of Fontana, California, and Ex-Officio Clerk of the City Council, do hereby certify that the foregoing Resolution is the actual Resolution duly and regularly adopted by the City Council of said City at a regular meeting thereof, held on September 13, 2022, by the following vote to-wit:

AYES:

NOES:

ABSENT:

City Clerk
Mayor
ATTEST:

City Clerk
1908
4163-4088-4026.2
RESOLUTION NO. 2022-119

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF FONTANA CALLING SPECIAL ELECTION FOR CITY

OF FONTANA COMMUNITY FACILITIES DISTRICT
NO. 111 (MONTERADO)
WHEREAS, on this date, the City Council (the “City Council”) of the City of Fontana (the “City”), pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), adopted a resolution entitled “A Resolution of the City Council of the City of Fontana of Formation of the City of Fontana Community Facilities District No. 111 (Monterado), Authorizing the Levy of a Special Tax within the Community Facilities District and Establishing an Appropriations Limit for the Community Facilities District” (the “Resolution of Formation”), establishing City of Fontana Community Facilities District No. 111 (Monterado) (the “Community Facilities District”), authorizing the levy of a special tax (the “Special Tax”) within the Community Facilities District and establishing an appropriations limit of $8,000,000 for the Community Facilities District; WHEREAS, on this date, the City Council also adopted a resolution entitled “A Resolution of the City Council of the City of Fontana Deeming it Necessary to Incur Bonded Indebtedness within City of Fontana Community Facilities District No. 111 (Monterado)” (the “Resolution Deeming it Necessary to Incur”), deeming it necessary to incur bonded indebtedness in the maximum amount of $8,000,000;
WHEREAS, pursuant to the provisions of said resolutions, the propositions to incur such bonded indebtedness, to levy the Special Tax within the Community Facilities District and to establish an appropriations limit for the Community Facilities District are to be submitted to the qualified electors of the Community Facilities District as required by the Act; WHEREAS, the City Council desires to designate the City Clerk of the City (the “City Clerk”) as the election official for the special election provided for herein; WHEREAS, there has been filed with the City Clerk a letter from the Registrar of Voters of the County of San Bernardino indicating that no persons were registered to vote within the territory of the proposed Community Facilities District as of July 19, 2022, and, accordingly, that 12 or more persons have not been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of the public hearings on the establishment of the Community Facilities District and the proposed debt issue for the Community Facilities District;
WHEREAS, there has been filed with the City Clerk consents and waivers of all of the landowners of record in the Community Facilities District waiving any time limit specified by Section 53326 of the Act and any requirement pertaining to the conduct of said special election, including any time limit or requirement applicable to an election pursuant to Article 5 of the Act (commencing with Section 53345 of the Act), consenting to the holding of said special election on September 13, 2022 and waiving any impartial analysis, arguments or rebuttals, as set forth in Sections 53326 and 53327 of the Act; and
1909
2 4163-4088-4026.2
WHEREAS, the City Clerk has concurred in said waivers and has concurred in holding said special election on September 13, 2022;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fontana as follows:

Section 1. The foregoing recitals are true and correct.

Section 2. Pursuant to Sections 53351, 53326 and 53325.7 of the Act, the propositions to incur such bonded indebtedness, to levy the Special Tax within the Community Facilities District and to establish such appropriations limit for the Community Facilities District shall be submitted to the qualified electors of the Community Facilities District at an election called therefor as provided below.

Section 3. The City Clerk is hereby designated as the official to conduct said election.

Section 4. As authorized by Section 53353.5 of the Act, the propositions to incur such bonded indebtedness, to levy the Special Tax within the Community Facilities District and to establish such appropriations limit for the Community Facilities District shall be combined into one ballot proposition.

Section 5. The City Council hereby finds and determines that no persons were registered to vote within the territory of the proposed Community Facilities District as of July 19, 2022, and that 12 or more persons have not been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of the public hearings heretofore held by the City Council on the establishment of the Community Facilities District and the proposed debt issue for the Community Facilities District. Accordingly, pursuant to Section 53326 of the Act, the vote shall be by the landowners of the Community Facilities District and each person who is the owner of land as of the close of said public hearings, or the authorized representative thereof, shall have one vote for each acre or portion of an acre that he or she owns within the Community Facilities District not exempt from the Special Tax.

Section 6. The City Council hereby finds and determines that the qualified electors of the Community Facilities District have unanimously consented (a) to the waiver of any time limit specified by Section 53326 of the Act and any requirement pertaining to the conduct of said election, including any time limit or requirement applicable to an election pursuant to Article 5 of the Act (commencing with Section 53345 of the Act), (b) to the holding of said election on September 13, 2022, and (c) to the waiver of any impartial analysis, arguments or rebuttals, as set forth in Sections 53326 and 53327 of the Act. The City Council herby finds and determines that the City Clerk has concurred in said waivers and has concurred in holding said election on September 13, 2022.

Section 7. The City Council hereby calls a special election to submit to the qualified electors of the Community Facilities District the combined proposition to incur bonded indebtedness in an amount not to exceed $8,000,000, to levy the Special Tax within the Community Facilities District and to establish an appropriations limit of the Community Facilities District in the amount of $8,000,000, which election shall be held at 8353 Sierra Avenue, Fontana, California, on September 13, 2022, provided, that, in the event the September 13, 2022 City 1910
3 4163-4088-4026.2
Council meeting is held via teleconference and/or videoconference only, the means by which the public may observe such public hearings and offer public comment would be as prescribed in the notice and agenda for such City Council meeting. The City Council has caused to be provided to the City Clerk, as the official to conduct said election, the Resolution of Formation, the Resolution of Deeming it Necessary to Incur, a certified map of sufficient scale and clarity to show the boundaries of the Community Facilities District, and a sufficient description to allow the City Clerk to determine the boundaries of the Community Facilities District.

The voted ballots shall be returned to the City Clerk not later than 8:30 p.m. on September 13, 2022; provided, however, that if all of the qualified electors have voted prior to such time, the election may be closed with the concurrence of the City Clerk.

Section 8. Pursuant to Section 53326 of the Act, the election shall be conducted by mail or hand-delivered ballot pursuant to Section 4000 et. seq. of the California Elections Code. Except as otherwise provided in the Act, the provisions of law regulating elections of the City, insofar as they may be applicable, will govern the election.

Section 9. The form of the ballot for said election is attached hereto as Exhibit A and by this reference incorporated herein, and such form of ballot is hereby approved. The City Clerk shall cause to be delivered to each of the qualified electors of the Community Facilities District a ballot in said form. Each ballot shall indicate the number of votes to be voted by the respective landowner to which it pertains.

Each ballot shall be accompanied by all supplies and written instructions necessary for the use and return of the ballot. The identification envelope for return of the ballot shall be enclosed with the ballot, shall have the return postage prepaid, and shall contain: (a) the name and address of the landowner, (b) a declaration, under penalty of perjury, stating that the voter is the owner of record or the authorized representative of the landowner entitled to vote and is the person whose name appears on the identification envelope, (c) the printed name, signature and address of the voter, (d) the date of signing and place of execution of the declaration described in clause (b) above, and (e) a notice that the envelope contains an official ballot and is to be opened only by the canvassing board.

Analysis and arguments with respect to the ballot proposition are hereby waived, as provided in Section 53327 of the Act.

Section 10. The City Clerk shall accept the ballots of the qualified electors in the office of the City Clerk at 8353 Sierra Avenue, Fontana, California, to and including 8:30 p.m. on September 13, 2022, whether said ballots be personally delivered or received by mail. The City Clerk shall have available ballots which may be marked at said location on the election day by said qualified electors.

Section 11. The City Council hereby determines that the facilities and services financed by the Community Facilities District are necessary to meet increased demands placed upon local agencies as a result of development occurring in the Community Facilities District.

Section 12. The specific purposes of the bonded indebtedness proposed to be incurred is the financing of the Facilities (as defined in the Resolution of Formation), including all costs and 1911
4 4163-4088-4026.2
estimated costs incidental to, or connected with, the accomplishment of such purpose, and the proceeds of such bonded indebtedness shall be applied only to such specific purposes.

Upon approval of the proposition to incur bonded indebtedness, and the sale of any bonds evidencing such indebtedness, the City Council shall take such action as may be necessary to cause to be established an account for deposit of the proceeds of sale of the bonds. For so long as any proceeds of the bonds remain unexpended, the Chief Financial Officer, Management Services, of the City shall cause to be filed with the City Council, no later than January 1 of each year, a report stating (a) the amount of bond proceeds received and expended during the preceding year, and (b) the status of any project funded or to be funded from bond proceeds. Said report may relate to the calendar year, fiscal year, or other appropriate annual period, as the Chief Financial Officer, Management Services, of the City shall determine, and may be incorporated into the annual budget, audit, or other appropriate routine report to the City Council.

Section 13. All actions heretofore taken by the officers, employees and agents of the City with respect to the special election called for herein, or in connection with or related to any of the matters referred to herein, are hereby approved, confirmed and ratified.

Section 14. The officers, employees and agents of the City are hereby authorized and directed to take all actions and do all things which they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof.

Section 15. This Resolution shall take effect immediately upon its adoption.

APPROVED and ADOPTED by the City Council of the City of Fontana on September 13, 2022.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney
1912
A-1
4163-4088-4026.2

EXHIBIT A

OFFICIAL BALLOT

CITY OF FONTANA
September 13, 2022

SPECIAL ELECTION
This ballot is for a special, landowner election. The number of votes to be voted pursuant to this ballot is ___.

INSTRUCTIONS TO VOTERS:

To vote on the measure, mark a cross (+ or X) in the voting square after the word “YES” or after the word “NO”. All distinguishing marks or erasures are forbidden and make the ballot void. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Fontana and obtain another.

CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 111
(MONTERADO)
MEASURE SUBMITTED TO VOTE OF VOTERS: Shall the
City of Fontana Community Facilities District No. 111 (Monterado) (the “Community Facilities District”) be authorized to incur bonded indebtedness in a maximum amount of not to exceed $8,000,000 and levy a special tax in order to finance certain facilities and services and shall the annual appropriations limit of the Community Facilities District be established in the amount of $8,000,000, all as specified in the Resolution entitled “A Resolution of the City Council of the City of Fontana of Formation of the City of Fontana Community Facilities District No. 111 (Monterado), Authorizing the Levy of a Special Tax within the Community Facilities District and Establishing an Appropriations Limit for the Community Facilities District” and the Resolution entitled “A Resolution of the City Council of the City of Fontana Deeming it Necessary to Incur Bonded Indebtedness within City of Fontana Community Facilities District No. 111 (Monterado),” each adopted by the City Council of the City of Fontana on September 13, 2022? Yes:

No:
1913
4163-4088-4026.2
I, Germaine McClellan Key, City Clerk of the City of Fontana, California, and Ex-Officio Clerk of the City Council, do hereby certify that the foregoing Resolution is the actual Resolution duly and regularly adopted by the City Council of said City at a regular meeting thereof, held on September 13, 2022, by the following vote to-wit:

AYES:

NOES:

ABSENT:

City Clerk
Mayor
ATTEST:

City Clerk
1914
4149-8219-1674.1
RESOLUTION NO.2022-120

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

FONTANA DECLARING RESULTS OF SPECIAL

ELECTION AND DIRECTING RECORDING OF NOTICE OF

SPECIAL TAX LIEN
WHEREAS, on September 13, 2022, the City Council (the “City Council”) of the City of Fontana (the “City”), pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), adopted a resolution entitled “A Resolution of the City Council of the City of Fontana Calling Special Election for City of Fontana Community Facilities District No. 111 (Monterado)” (the “Resolution Calling Election”), calling for a special election of the qualified electors within City of Fontana Community Facilities District No. 111 (Monterado) (the “Community Facilities District”); WHEREAS, pursuant to the terms of the Resolution Calling Election and the provisions of the Act, the special election was held on September 13, 2022; and WHEREAS, the City Clerk of the City (the “City Clerk”) has certified the canvass of the returns of the election and has filed a Canvass and Statement of Results of Election (the “Canvass”), a copy of which is attached hereto as Exhibit A;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fontana as follows:

Section 1. The foregoing recitals are true and correct.

Section 2. The City Council has received, reviewed and hereby accepts the Canvass.

Section 3. The City Council hereby finds and declares that the ballot proposition submitted to the qualified electors of the Community Facilities District pursuant to the Resolution Calling Election has been passed and approved by such electors in accordance with Section 53328, Section 53355 and Section 53325.7 of the Act.

Section 4. The City Clerk is hereby directed to execute and cause to be recorded in the office of the County Recorder of the County of San Bernardino a notice of special tax lien in the form required by the Act, said recording to occur no later than fifteen days following adoption by the City Council of this Resolution.

Section 5. All actions heretofore taken by the officers, employees and agents of the City with respect to the special election, or in connection with or related to any of the matters referred to herein, are hereby approved, confirmed and ratified.

Section 6. The officers, employees and agents of the City are hereby authorized and directed to take all actions and do all things which they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof.
1915
2 4149-8219-1674.1
Section 7. This Resolution shall take effect immediately upon its adoption.

APPROVED and ADOPTED by the City Council of the City of Fontana on September 13, 2022.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney
1916
A-1
4149-8219-1674.1

EXHIBIT A
[See attached]
1917
A-2
4149-8219-1674.1

CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 111
(MONTERADO)

CANVASS AND STATEMENT OF RESULTS OF ELECTION
I hereby certify that on September 13, 2022, I canvassed the returns of the special election held on September 13, 2022, for the City of Fontana Community Facilities District No. 111 (Monterado), that the total number of ballots cast in said Community Facilities District and the total number of votes cast for and against the proposition are as follows and that the totals as shown for and against the proposition are true and correct:

Qualified
Landowner
Votes
Votes
Cast YES NO
City of Fontana Community Facilities
District No. 111 (Monterado) Special
Election, September 13, 2022
21 ____ ____ ____
MEASURE SUBMITTED TO VOTE OF VOTERS: Shall the City of Fontana Community Facilities District No. 111 (Monterado) (the “Community Facilities District”) be authorized to incur bonded indebtedness in a maximum amount of not to exceed $8,000,000 and levy a special tax in order to finance certain facilities and services and shall the annual appropriations limit of the Community Facilities District be established in the amount of $8,000,000, all as specified in the Resolution entitled “A Resolution of the City Council of the City of Fontana of Formation of the City of Fontana Community Facilities District No. 111 (Monterado), Authorizing the Levy of a Special Tax within the Community Facilities District and Establishing an Appropriations Limit for the Community Facilities District” and the Resolution entitled “A Resolution of the City Council of the City of Fontana Deeming it Necessary to Incur Bonded Indebtedness within City of Fontana Community Facilities District No. 111 (Monterado),” each adopted by the City Council of the City of Fontana on September 13, 2022?
IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND this 13 th day of
September 2022.

By:

Germaine McClellan Key, City Clerk
1918
4149-8219-1674.1
I, Germaine McClellan Key, City Clerk of the City of Fontana, California, and Ex-Officio Clerk of the City Council, do hereby certify that the foregoing Resolution is the actual Resolution duly and regularly adopted by the City Council of said City at a regular meeting thereof, held on September 13, 2022, by the following vote to-wit:

AYES:

NOES:

ABSENT:

City Clerk
Mayor
ATTEST:

City Clerk
1919
4150-1640-1466.1
ORDINANCE NO. 1904

AN ORDINANCE OF THE CITY OF FONTANA LEVYING A

SPECIAL TAX WITHIN THE CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 111
(MONTERADO)
WHEREAS, on July 26, 2022, the City Council (the “City Council”) of the City of Fontana (the “City”), pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), adopted a resolution entitled “A Resolution of the City Council of the City of Fontana of Intention to Establish a Community Facilities District Proposed to be Named City of Fontana Community Facilities District No. 111 (Monterado), and to Authorize the Levy of a Special Tax” stating its intention to establish City of Fontana Community Facilities District No. 111 (Monterado) (the “Community Facilities District”), to authorize the levy of a special tax (the “Special Tax”) within the Community Facilities District and to finance certain public facilities (the “Facilities”) and services (the “Services”);
WHEREAS, on September 13, 2022, the City Council held a noticed public hearing on the establishment of the Community Facilities District, as required by the Act; WHEREAS, subsequent to the close of said hearing, the City Council adopted resolutions entitled “A Resolution of the City Council of the City of Fontana of Formation of the City of Fontana Community Facilities District No. 111 (Monterado), Authorizing the Levy of a Special Tax within the Community Facilities District and Establishing an Appropriations Limit for the Community Facilities District” (the “Resolution of Formation”), “A Resolution of the City Council of the City of Fontana Deeming it Necessary to Incur Bonded Indebtedness within City of Fontana Community Facilities District No. 111 (Monterado)” and “A Resolution of the City Council of the City of Fontana Calling Special Election for City of Fontana Community Facilities District No. 111 (Monterado),” which resolutions established the Community Facilities District, authorized the levy of the Special Tax within the Community Facilities District and called an election within the Community Facilities District on the proposition of incurring indebtedness, levying the Special Tax within the Community Facilities District and establishing an appropriations limit for the Community Facilities District, respectively; and
WHEREAS, on September 13, 2022, an election was held in which the qualified electors of the Community Facilities District approved said proposition by more than the two-thirds vote required by the Act;

THE CITY COUNCIL OF THE CITY OF FONTANA DOES ORDAIN AS
FOLLOWS:

Section 1. The City Council hereby authorizes and levies the Special Tax within the Community Facilities District pursuant to Sections 53328 and 53340 of the Act, at the rate and in accordance with the method of apportionment set forth in Exhibit B to the Resolution of Formation (the “Rate and Method of Apportionment”). The Special Tax is hereby levied commencing in fiscal year 2022-23 and in each fiscal year thereafter until the last fiscal year in which such Special Tax is authorized to be levied pursuant to the Rate and Method of Apportionment. 1920
2 4150-1640-1466.1
Section 2. The City Council may, in accordance with subdivision (b) of Section 53340 of the Act, provide, by resolution, for the levy of the Special Tax in future tax years at the same rate or at a lower rate than the rate provided by this Ordinance. In no event shall the Special Tax be levied on any parcel within the Community Facilities District in excess of the maximum tax specified therefor in the Rate and Method of Apportionment.

Section 3. The Special Tax shall be levied on all of the parcels in the Community Facilities District, unless exempted by law or by the Rate and Method of Apportionment.

Section 4. The proceeds of the Special Tax shall only be used to pay, in whole or in part, the cost of providing the Facilities and Services and incidental expenses pursuant to the Act.

Section 5. The Special Tax shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in the case of delinquency as is provided for ad valorem taxes, unless another procedure is adopted by the City Council.

Section 6. If for any reason any portion of this Ordinance is found to be invalid, or if the Special Tax is found inapplicable to any particular parcel within the Community Facilities District, by a court of competent jurisdiction, the balance of this Ordinance and the application of the Special Tax to the remaining parcels within the Community Facilities District shall not be affected.

Section 7. This Ordinance shall take effect and shall be in force 30 days after the date of its adoption and prior to the expiration of 15 days from the passage thereof shall be published at least once in the Fontana Herald News, a newspaper of general circulation, printed and published in the City of Fontana, State of California, together with the names of the City Council members voting for and against the same.

APPROVED AND ADOPTED this ____ day of _________ 2022.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney
1921
4150-1640-1466.1
I, Germaine McClellan Key, City Clerk of the City of Fontana and Ex-Officio Clerk of the City Council, do hereby certify that the foregoing Ordinance is the actual Ordinance introduced at a regular meeting of said City Council on September 13, 2022, and was finally passed and adopted not less than five days thereafter on ___________, 2022, by the following vote, to wit:

AYES:

NOES:

ABSENT:

City Clerk
Mayor
ATTEST:

City Clerk
1922
4165-5944-6586.1
RESOLUTION NO. 2022-121

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

FONTANA AUTHORIZING THE EXECUTION AND

DELIVERY OF A LETTER OF CREDIT AGREEMENT AND

AN ACQUISITION AND FUNDING AGREEMENT
WHEREAS, City of Fontana Community Facilities District No. 111 (Monterado) (the “Community Facilities District”) has been established under the provisions of the Mello-Roos Community Facilities Act of 1982 (the “Act”);
WHEREAS, it is anticipated that, in order to finance certain public facilities, the Community Facilities District will issue special tax bonds (the “Bonds”) secured by a special tax (the “Special Tax”) levied within the Community Facilities District; WHEREAS, Lennar Homes of California, LLC, a California limited liability company (the “Developer”) is the owner of the property within the Community Facilities District and proposes to construct residential units on the property within the Community Facilities District and to market and sell such residential units;
WHEREAS, it is contemplated that the property within the Community Facilities District may be substantially undeveloped at the time the Bonds are issued and that, as a result, a significant portion of the Special Tax securing the Bonds would be levied on undeveloped property; WHEREAS, in order to increase the credit quality of the Bond issue, the Community Facilities District may require, as a condition to the issuance of the Bonds, that the Developer provide a letter of credit securing the payment of Special Tax levied on certain of such undeveloped property within the Community Facilities District;
WHEREAS, in order to evidence such requirement and the matters pertaining thereto, there has been prepared and presented to this meeting a form of Letter of Credit Agreement, by and between the Community Facilities District and the Developer (such Letter of Credit Agreement, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the “Letter of Credit Agreement”); WHEREAS, the Developer proposes to construct, or cause to be constructed, certain of the public facilities proposed to be financed by the Community Facilities District pursuant to the Act, and the Community Facilities District proposes to purchase such public facilities from the Developer, title to which public facilities will be taken by the City; WHEREAS, the Community Facilities District, the City and the Developer desire to provide for the priority in which Special Tax and proceeds of the Bonds are to be applied and certain other matters regarding the Community Facilities District, the Special Tax and the Bonds; WHEREAS, in order to provide for such matters, there has been prepared and presented to this meeting a form of Acquisition and Funding Agreement by and among the Community Facilities District, the City and the Developer (such Acquisition and Funding Agreement, in the 1923
2 4165-5944-6586.1
form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the “Acquisition Agreement”); and WHEREAS, the City Council is the legislative body of the Community Facilities District; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fontana as follows:

Section 1. The Letter of Credit Agreement, in substantially the form submitted to this meeting and made a part hereof as though set forth herein, be and the same is hereby approved.

Each of the Mayor of the City, and such other member of the City Council as the Mayor may designate, the City Manager of the City and the Chief Financial Officer, Management Services, of the City, and such other officer or employee of the City as the City Manager may designate (the “Authorized Officers”) is hereby authorized, and any one of the Authorized Officers is hereby directed, for and in the name of the Community Facilities District, to execute and deliver the Letter of Credit Agreement in the form submitted to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Letter of Credit Agreement by such Authorized Officer.

Section 2. The Acquisition Agreement, in substantially the form submitted to this meeting and made a part hereof as though set forth herein, be and the same is hereby approved. Each of the Authorized Officers is hereby authorized, and any one of the Authorized Officers is hereby directed, for and in the name of the Community Facilities District, to execute and deliver the Acquisition Agreement in the form submitted to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Acquisition Agreement by such Authorized Officer.

Each of the Authorized Officers is hereby authorized, and any one of the Authorized Officers is hereby directed, for and in the name of the City, to execute and deliver the Acquisition Agreement in the form submitted to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Acquisition Agreement by such Authorized Officer.

Section 3. All actions heretofore taken by the officers, employees and agents of the City with respect to the Letter of Credit Agreement and the Acquisition Agreement, or in connection with or related to any of the matters referred to herein, are hereby approved, confirmed and ratified.

Section 4. The officers, employees and agents of the City are hereby authorized and directed to take all actions and do all things which they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof.
1924
3 4165-5944-6586.1
Section 5. This Resolution shall take effect immediately upon its adoption.

APPROVED and ADOPTED by the City Council of the City of Fontana on September 13, 2022.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney
1925
4165-5944-6586.1
I, Germaine McClellan Key, City Clerk of the City of Fontana, California, and Ex-Officio Clerk of the City Council, do hereby certify that the foregoing Resolution is the actual Resolution duly and regularly adopted by the City Council of said City at a regular meeting thereof, held on September 13, 2022, by the following vote to-wit:

AYES:

NOES:

ABSENT:

City Clerk
Mayor
ATTEST:

City Clerk
1926
4130-1971-6154.2

RECORDING REQUESTED BY AND
AFTER RECORDATION RETURN TO:

City Clerk
City of Fontana
8353 Sierra Avenue
Fontana, California 92335

NOTICE OF SPECIAL TAX LIEN

CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 111
(MONTERADO)
Pursuant to the requirements of Section 3114.5 of the California Streets and Highways Code and Section 53328.3 of the Mello-Roos Community Facilities Act of 1982 (the “Act”), the undersigned City Clerk of the City of Fontana (the “City”), State of California, hereby gives notice that a lien to secure payment of a special tax is hereby imposed by the City Council of the City, State of California. The special tax secured by this lien is authorized to be levied for the purpose of (a) paying the principal of and interest on bonds, the proceeds of which are being used to finance the facilities described on Exhibit A attached hereto and hereby made a part hereof, (b) providing such facilities, and (c) providing the services described on Exhibit A.

The special tax is authorized to be levied within the City of Fontana Community Facilities District No. 111 (Monterado) (the “Community Facilities District”) that has now been officially formed and the lien of the special tax is a continuing lien that shall secure each annual levy of the special tax and which shall continue in force and effect until the special tax obligation is prepaid, permanently satisfied and canceled in accordance with law or until the special tax ceases to be levied and a notice of cessation of special tax is recorded in accordance with Section 53330.5 of the Act.

The rate, method of apportionment, and manner of collection of the authorized special tax is as set forth in Exhibit B attached hereto and hereby made a part hereof. Conditions under which the obligation to pay the special tax for facilities may be prepaid and permanently satisfied and the lien of such special tax canceled are as set forth in Exhibit B hereto.

Notice is further given that upon the recording of this notice in the office of the County Recorder of the County of San Bernardino, the obligation to pay the special tax levy shall become a lien upon all nonexempt real property within the Community Facilities District in accordance with Section 3115.5 of the California Streets and Highways Code.

The name(s) of the owner(s) and the assessor’s tax parcel number(s) of the real property included within the Community Facilities District and not exempt from the special tax are as set forth in Exhibit C attached hereto and hereby made a part hereof.

Reference is made to the boundary map of the Community Facilities District recorded at Book 90 of Maps of Assessment and Community Facilities Districts at Page 50, in the office of the County Recorder for the County of San Bernardino, State of California (Document No. 2022-0266763), which map is now the final boundary map of the District. 1927
2 4130-1971-6154.2
For further information concerning the current and estimated future tax liability of owners or purchasers of real property subject to this special tax lien, interested persons should contact the Chief Financial Officer, Management Services, City of Fontana, 8353 Sierra Avenue, Fontana, California 92335, (909) 350-7679.

Dated: September ___, 2022
By:

Germaine McClellan Key, City Clerk
1928
A-1
4130-1971-6154.2

EXHIBIT A

FACILITIES AND SERVICES TO BE FINANCED
Facilities
The types of facilities to be financed by the Community Facilities District are streets, including grading, paving, curbs and gutters, sidewalks, street signalization and signage, street lights and parkway and landscaping related thereto, sewers, storm drains, flood control facilities, fire protection facilities, police facilities, public facilities, landscaping, library facilities, park and recreational facilities, and land, rights-of-way and easements necessary for any of such facilities.

Services
The types of services to be financed by the Community Facilities District are fire protection and suppression services, maintenance and lighting of parks, parkways, streets, roads and open space, flood and storm protection services and maintenance and operation of any real property or other tangible property with an estimated useful life of five or more years that is owned by the City.
1929
B-1
4130-1971-6154.2

EXHIBIT B

RATE AND METHOD

OF APPORTIONMENT OF SPECIAL TAX
1930
City of Fontana July 1, 2022
Community Facilities District No. 111 (Monterado) Page 1

RATE AND METHOD OF APPORTIONMENT FOR
CITY OF FONTANA COMMUNITY FACILITIES DISTRICT No. 111
(MONTERADO)
A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels of Taxable Property in City of Fontana Community Facilities District No. 111 (Monterado) ("CFD No. 111") and collected each Fiscal Year, in an amount determined by the City Council of the City of Fontana, through the application of the Rate and Method of Apportionment as described below. All of the real property in CFD No. 111, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre" or "Acreage" means the land area expressed in acres of an Assessor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded County map or the land area calculated to the reasonable satisfaction of the CFD Administrator using the boundaries set forth on such map or plan. The square footage of an Assessor’s Parcel is equal to the Acreage of such parcel multiplied by 43,560. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 (commencing with Section 53311) of the California Government Code. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 111, including but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 111 or any designee thereof of complying with arbitrage rebate requirements with respect to the Special Tax and CFD No. 111 Bonds; the costs to the City, CFD No. 111 or any designee thereof of complying with disclosure requirements of the City, CFD No. 111 or obligated persons associated with applicable federal and state securities laws and the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 111, or any designee thereof related to the reduction of the Assigned Facilities Special Tax and Backup Facilities Special Tax in accordance with Section C.1 herein; the costs of the City, CFD No. 111 or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees and third party expenses related to CFD No. 111 Bonds. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 111 for any other administrative purposes of CFD No. 111, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Assessor" means the Assessor of the County.
1931
City of Fontana July 1, 2022
Community Facilities District No. 111 (Monterado) Page 2 "Assessor's Parcel" means a lot or parcel to which an Assessor’s parcel number is assigned as determined from an Assessor’s Parcel Map or the applicable assessment roll. "Assessor's Parcel Map" means an official map of the Assessor designating parcels by Assessor’s Parcel number.
"Assigned Facilities Special Tax" means the Facilities Special Tax for each Land Use Class of Developed Property, as determined in accordance with Section C.1.a.(2) below. "Assigned Services Special Tax" means the Services Special Tax, determined in accordance with Section C.2.b herein, that can be levied in any Fiscal Year on any Assessor’s Parcel of Developed Property.
"Authorized Facilities" means those facilities eligible to be funded by CFD No. 111. "Authorized Services" means those services eligible to be funded by CFD No. 111 in accordance with the Act, including, but not limited to, fire protection and suppression services, maintenance and lighting of parks, parkways, streets, roads and open space, flood and storm protection services and maintenance and operation of any real property or other tangible property with an estimated useful life of five or more years that is owned by the City. "Backup Facilities Special Tax" means the Facilities Special Tax applicable to each Assessor's Parcel of Developed Property, as determined in accordance with Section C.1.a.(3) below. "Buildout" means, for CFD No. 111, that all expected building permits for residential dwelling units and/or non-residential development to be constructed within CFD No. 111 have been issued, as determined by the CFD Administrator.
"CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement for Facilities and the Special Tax Requirement for Services, providing for the levy and collection of the Special Taxes, and performing other duties as set forth herein.
"CFD No. 111" means City of Fontana Community Facilities District No. 111 (Monterado). "CFD No. 111 Bonds" means any bonds or other debt (as defined in Section 53317(d) of the Act), whether in one or more series, issued by CFD No. 111 and secured by the Facilities Special Tax levy on property within the boundaries of CFD No. 111 under the Act. "City" means the City of Fontana, California.
"Contractual Impositions" means (a) a voluntary contractual assessment established and levied on an Assessor’s Parcel pursuant to Chapter 29 of Part 3 of Division 7 of the California Streets and Highways Code (commencing with Section 5898.10 et seq.), as amended from time to time, (b) a special tax established and levied on an Assessor’s Parcel pursuant to Section 53328.1 of the California Government Code and related provisions of the Act, as amended from time to time, and 1932
City of Fontana July 1, 2022
Community Facilities District No. 111 (Monterado) Page 3 (c) any other fee, charge, tax or assessment established and levied on an individual Assessor’s Parcel pursuant to a contractual agreement or other voluntary consent by the owner thereof. "Council" means the City Council of the City acting as the legislative body of CFD No. 111. "County" means the County of San Bernardino.
"Developed Property" means, for each Fiscal Year, (i) with respect to the Facilities Special Tax, all Taxable Property, exclusive of Taxable Public Property and Taxable Property Owner Association Property, for which a building permit for new construction, other than the construction of a garage, parking lot, or parking structure, was issued after January 1, 2022 and on or before May 1 of the Fiscal Year preceding the Fiscal Year for which the Facilities Special Taxes are being levied, and (ii) with respect to the Services Special Tax, all Taxable Property, exclusive of Taxable Public Property and Taxable Property Owner Association Property, (a) for which the Final Residential Subdivision was recorded prior to the Fiscal Year for which the Services Special Taxes are being levied, or (b) for which a building permit has been issued with respect to Non-Residential Property on or before May 1 of the Fiscal Year preceding the Fiscal Year for which the Services Special Taxes are being levied.
"Facilities Special Tax" means the special tax authorized to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property within CFD No. 111 to fund the Special Tax Requirement for Facilities, as set forth in Section C.1 herein.
"Final Residential Subdivision" means a Final Subdivision that creates individual lots for which building permits may be issued for residential dwelling units without further subdivision of such property.
"Final Subdivision" means (i) a subdivision of property by recordation of a final map, parcel map, or lot line adjustment approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) that creates individual lots or parcels for which building permits may be issued, or (ii) for condominiums, a final map approved by the City and a condominium plan recorded pursuant to California Civil Code Section 4285 that creates an individual lot(s) for which a building permit(s) may be issued without further subdivision. The term "Final Subdivision" shall not include any Assessor’s Parcel Map or subdivision map or portion thereof that does not create individual lots for which a building permit may be issued, including Assessor’s Parcels that are designated as remainder parcels. Notwithstanding the above, a condominium plan for which one or more building permits have been issued, but no individual lots have been created for such building permits, shall be considered a Final Subdivision, and the portion of the condominium plan for which building permits have been issued shall be defined as Developed Property.
"Fiscal Year" means the period starting July 1 and ending on the following June 30. "Indenture" means the indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which CFD No. 111 Bonds are issued, as modified, amended and/or supplemented from time to time.
1933
City of Fontana July 1, 2022
Community Facilities District No. 111 (Monterado) Page 4 "Land Use Class" means any of the classes listed in Table 1, Table 2, or Table 3 herein. "Lower Income Households Welfare Exemption Property" means, for each Fiscal Year, an Assessor’s Parcel within the boundaries of CFD No. 111 that is entitled to a welfare exemption under subdivision (g) of Section 214 of the California Revenue and Taxation Code (or any successor statute), as indicated in the County’s assessment roll finalized as of the last preceding January 1.
"Maximum Facilities Special Tax" means the maximum Facilities Special Tax, determined in accordance with Section C.1 herein, that can be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
"Maximum Services Special Tax" means the maximum Services Special Tax, determined in accordance with Section C.2 herein, that can be levied in any Fiscal Year on any Assessor’s Parcel of Developed Property.
"Minimum Sale Price" means the minimum price at which parcels of a given Land Use Class have sold or are expected to be sold in a normal marketing environment and shall not include prices for such parcels that are sold at a discount to expected sales prices for the purpose of stimulating the initial sales activity with respect to such Land Use Class. "Non-Residential Property" means all Assessor’s Parcels of Developed Property for which a building permit(s) has been issued by the City permitting the construction of one or more nonresidential structures or facilities. "Outstanding Bonds" means all CFD No. 111 Bonds which are outstanding under the Indenture. "Price Point Consultant" means any consultant or firm of such consultants selected by CFD No. 111 that (a) has substantial experience in performing price point studies for residential dwelling units within community facilities districts or otherwise estimating or confirming pricing for residential dwelling units in community facilities districts, (b) has recognized expertise in analyzing economic and real estate data that relates to the pricing of residential dwelling units in community facilities districts, (c) is in fact independent and not under the control of CFD No. 111 or the City, (d) does not have any substantial interest, direct or indirect, with or in (i) CFD No. 111, (ii) the City, (iii) any owner of real property in CFD No. 111, or (iv) any real property in CFD No. 111, and (e) is not connected with CFD No. 111 or the City as an officer or employee thereof, but who may be regularly retained to make reports to CFD No. 111 or the City. "Price Point Study" means a price point study or a letter updating a previous price point study prepared by the Price Point Consultant pursuant to Section C herein. "Property Owner Association Property" means, for each Fiscal Year, (i) any property within the boundaries of CFD No. 111 for which the owner of record, as determined from the County’s assessment roll for the Fiscal Year in which the Special Tax is being levied, is a property owner’s association, including any master or sub-association, or (ii) any property located in a Final Subdivision that was recorded as of the January 1 preceding the Fiscal Year in which the Special Tax is being levied and which, as determined from such Final Subdivision, is or will be open space, 1934
City of Fontana July 1, 2022
Community Facilities District No. 111 (Monterado) Page 5 a common area recreation facility, or a private street. Notwithstanding the foregoing, any property previously classified as Developed Property and subsequently owned in fee or by easement, or dedicated to, a property owner association, including any master or sub-association, shall remain classified as Developed Property.
"Proportionately" means that the ratio of the actual Facilities Special Tax levy to the Assigned Facilities Special Tax is equal for all Assessor’s Parcels of Developed Property, and that the ratio of the actual Services Special Tax levy to the Assigned Services Special Tax is equal for all Assessor’s Parcels of Developed Property. For Undeveloped Property, "Proportionately" means that the ratio of the actual Facilities Special Tax levy per Acre to the Maximum Facilities Special Tax per Acre is equal for all Assessor’s Parcels of Undeveloped Property. The term "Proportionately" shall similarly be applied to other categories of Taxable Property as listed in Section D herein.
"Public Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 111 that is (i) owned by, irrevocably offered or dedicated to the federal government, the State, the County, the City, or any local government or other public agency, provided, however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use; or (ii) encumbered by a public utility easement making impractical its use for any purpose other than that set forth in the easement. "Rate and Method of Apportionment" means this Rate and Method of Apportionment for CFD No. 111.
"Residential Floor Area" means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Residential Floor Area for an Assessor’s Parcel shall be as set forth in the building permit(s) issued for such Assessor’s Parcel and/or as set forth in the appropriate records kept by the Building and Safety Department of the City, or other applicable City department, as determined by the CFD Administrator. "Residential Property" means all Assessor’s Parcels of Developed Property for which a building permit(s) has been issued by the City permitting the construction thereon of one or more residential dwelling units.
"Services Special Tax" means the special tax authorized to be levied in each Fiscal Year on each Assessor’s Parcel of Developed Property within CFD No. 111 to fund the Special Tax Requirement for Services, as set forth in Section C.2 herein.
"Special Tax" means the Facilities Special Tax and/or Services Special Tax, as applicable. "Special Tax Requirement for Facilities" means, for any Fiscal Year, that amount required, after taking into account available amounts held in the funds and accounts under the Indenture, for the following items: (i) debt service on all Outstanding Bonds due in the calendar year commencing in such Fiscal Year; (ii) periodic costs with respect to the CFD No. 111 Bonds, including but not limited to, costs of credit enhancement and federal rebate payments due in the calendar year commencing in such Fiscal Year; (iii) pay all or a portion of Administrative Expenses; (iv) any 1935
City of Fontana July 1, 2022
Community Facilities District No. 111 (Monterado) Page 6 amounts required to establish or replenish any reserve funds for all Outstanding Bonds; (v) without duplicating any amounts described in clause (iv), above, reasonably anticipated Facilities Special Tax delinquencies based on the delinquency rate for the Facilities Special Tax in the previous Fiscal Year, as said levy for delinquencies shall be limited by the Act; and (vi) pay directly for the acquisition or construction of Authorized Facilities, provided that the inclusion of such amount does not increase the Facilities Special Tax levy beyond the first step in Section D.1 herein. "Special Tax Requirement for Services" means that amount required in any Fiscal Year for CFD No. 111 to (i) pay directly for the Authorized Services; (ii) pay Administrative Expenses not funded through the Special Tax Requirement for Facilities as determined by the CFD Administrator; (iii) pay for reasonably anticipated Services Special Tax delinquencies based on the delinquency rate for the Services Special Tax levy in the previous Fiscal Year; less (iv) a credit for funds available to reduce the annual Services Special Tax levy, as determined by the CFD Administrator, so long as the amount required is not less than zero. "State" means the State of California.
"Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No. 111 which are not exempt from the Special Tax pursuant to applicable law or Section E herein. "Taxable Property Owner Association Property" means all Assessor’s Parcels of Property Owner Association Property that are not exempt pursuant to Section E herein. "Taxable Public Property" means all Assessor’s Parcels of Public Property that are not exempt pursuant to Section E herein.
"Total Tax Burden" means, for a parcel of residential property within a Land Use Class, for the Fiscal Year in which the Total Tax Burden is being calculated, the sum of (a) the Assigned Facilities Special Tax for such Fiscal Year, plus (b) the Assigned Services Special Tax for such Fiscal Year, plus (c) the ad valorem property taxes, special assessments, special taxes for any overlapping community facilities districts, and any other governmental fees, charges (other than fees or charges for services such as sewer and trash), taxes and assessments (which, for purposes of clarity, do not include Contractual Impositions) collected by the County on ad valorem tax bills and that the CFD Administrator estimates would be levied or imposed on such residential property in such Fiscal Year if the residential dwelling unit thereon or therein had been completed and sold, and was subject to such fees, charges, taxes and assessments in such Fiscal Year. "Trustee" means the trustee or fiscal agent under the Indenture. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Taxable Public Property or Taxable Property Owner Association Property.

Please refer to additional definitions in Section H herein relating to the Prepayment of Facilities Special Tax.
1936
City of Fontana July 1, 2022
Community Facilities District No. 111 (Monterado) Page 7 B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, commencing with Fiscal Year 2022-2023, all Taxable Property within CFD No. 111 shall be classified as Developed Property, Undeveloped Property, Taxable Public Property or Taxable Property Owner Association Property, and shall be subject to Special Taxes in accordance with this Rate and Method of Apportionment determined pursuant to Sections C and D herein.

C. MAXIMUM SPECIAL TAX RATE

1. Facilities Special Tax
At least 30 days prior to the issuance of the first series of CFD No. 111 Bonds, the Assigned Facilities Special Tax on Developed Property (set forth in Table 1) shall be analyzed in accordance with and subject to the conditions set forth in this Section C. At such time, the CFD Administrator shall request the Price Point Consultant to prepare a Price Point Study setting forth the Minimum Sale Price of residential property within each Land Use Class. If based upon such Price Point Study the CFD Administrator calculates that the Total Tax Burden applicable to one or more Land Use Classes of residential property constructed or to be constructed within CFD No. 111 shall exceed 1.95% of the Minimum Sale Price of such residential property constructed or to be constructed within CFD No. 111, the CFD Administrator shall reduce the Assigned Facilities Special Tax to the extent necessary to cause the Total Tax Burden that shall apply to residential property within such Land Use Class(es) to not exceed 1.95% of the Minimum Sale Price of such residential property. Each Assigned Facilities Special Tax reduction for a Land Use Class shall be calculated separately, and it shall not be required that such reduction be proportionate among Land Use Classes. In connection with any reduction in the Assigned Facilities Special Tax, the CFD Administrator shall also reduce the Backup Facilities Special Tax in accordance with Section C.1.a.(3) herein. Upon determining the reductions, if any, in the Assigned Facilities Special Tax and Backup Facilities Special Tax required pursuant to this Section C, the CFD Administrator shall complete the Certificate to Amend Facilities Special Tax substantially in the form attached hereto as Exhibit A (the “Certificate to Amend”) and shall execute such completed Certificate to Amend and shall deliver such Certificate to Amend to CFD No. 111. Upon receipt thereof, if in satisfactory form, CFD No. 111 shall execute such Certificate to Amend. The reduced Assigned Facilities Special Tax and Backup Facilities Special Tax specified in such Certificate to Amend shall become effective upon the execution of such Certificate to Amend by CFD No. 111. The Assigned Facilities Special Tax and Backup Facilities Special Tax reductions permitted pursuant to this Section C shall be reflected in an amended notice of Special Tax lien which CFD No. 111 shall cause to be recorded with the San Bernardino County Recorder as soon as practicable after execution of the Certificate to Amend by CFD No. 111. If based upon such Price Point Study the CFD Administrator calculates that the Total Tax Burden applicable to each Land Use Class of residential property constructed or to be constructed within CFD No. 111 does not exceed 1.95% of the Minimum Sale Price of each such Land Use Class of residential property constructed or to be constructed within CFD No. 111, then there shall be no reduction in the Assigned Facilities Special Tax, nor shall there be a reduction in the Backup Facilities Special Tax. a. Developed Property
(1). Maximum Facilities Special Tax
1937
City of Fontana July 1, 2022
Community Facilities District No. 111 (Monterado) Page 8 The Maximum Facilities Special Tax for each Assessor's Parcel classified as Developed Property shall be the greater of (i) the amount derived by application of the Assigned Facilities Special Tax or (ii) the amount derived by application of the Backup Facilities Special Tax.
(2). Assigned Facilities Special Tax
Residential Property shall be assigned to Land Use Classes 1 through 5 as listed in Table 1 below based on the Residential Floor Area for each residential dwelling unit. NonResidential Property shall be assigned to Land Use Class 6. The Assigned Facilities Special Tax that shall be levied in any Fiscal Year for each Land Use Class is shown below in Table 1.

Table 1
Assigned Facilities Special Tax for Developed Property
City of Fontana CFD No. 111 (Monterado)
Land
Use
Class Description
Residential Floor Area
(square feet)
Assigned
Facilities
Special Tax
1 Residential Property 2,250 or Greater $3,258 per unit 2 Residential Property 2,050 to less than 2,250 $3,218 per unit 3 Residential Property 1,850 to less than 2,050 $3,031 per unit 4 Residential Property 1,650 to less than 1,850 $2,940 per unit 5 Residential Property Less than 1,650 $2,907 per unit
6 Non-Residential Property NA $51,640 per Acre
(3). Backup Facilities Special Tax
The Backup Facilities Special Tax for an Assessor’s Parcel of Developed Property shall equal the lesser of (a) $60,750 per Acre, or (b) in connection with any reduction in the Assigned Facilities Special Tax as set forth in Section C.1 herein, the amount per Acre calculated pursuant to the formula below:

BFST = AFST  ATP
These terms have the following meaning:

BFST = the reduced Backup Facilities Special Tax
AFST = The total estimated Assigned Facilities Special Tax levy for CFD No. 111 based on the reduced Assigned Facilities Special Taxes for Developed Property permitted pursuant to Section C.1 herein which could be levied on all expected development assuming Buildout of CFD No. 111.

ATP = The sum of the Acreage of all Taxable Property within a Final Subdivision (assuming Buildout) within CFD No. 111 (after excluding Public Property and 1938
City of Fontana July 1, 2022
Community Facilities District No. 111 (Monterado) Page 9 Property Owner Association Property as set forth in Section E.1 herein) multiplied by 85%.

Furthermore, all Assessors’ Parcels within CFD No. 111 shall be relieved simultaneously and permanently from the obligation to pay and disclose the Backup Facilities Special Tax if the CFD Administrator calculates that (i) the annual debt service required for the Outstanding Bonds, when compared to the Assigned Facilities Special Tax that shall be levied against all Assessors’ Parcels of Developed Property in CFD No. 111 results in 110% debt service coverage (i.e., the Assigned Facilities Special Tax that shall be levied against all Developed Property in CFD No. 111 in each remaining Fiscal Year based on the then existing development is at least equal to the sum of (a) 1.10 times the debt service necessary to support the remaining Outstanding Bonds in each corresponding Fiscal Year, and (b) Administrative Expenses), and (ii) all authorized CFD No. 111 Bonds have already been issued or the Council has covenanted that it shall not issue any additional CFD No. 111 Bonds (except refunding bonds) to be supported by the Facilities Special Tax in CFD No. 111.

(4). Multiple Land Uses
In some instances, an Assessor’s Parcel may contain both Developed Property and Undeveloped Property. In such cases, the Acreage of the Assessor’s Parcel shall be allocated between Developed Property and Undeveloped Property based on the portion of the Assessor’s Parcel for which building permits had been issued prior to May 1 of the prior Fiscal Year and the portion of the Assessor’s Parcel for which building permits had not been issued prior to May 1 of the prior Fiscal Year.

Furthermore, Developed Property may contain more than one Land Use Class. In such cases, the Acreage that is considered Developed Property shall be allocated between Residential Property and Non-Residential Property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Maximum Facilities Special Tax that can be levied on such Assessor’s Parcel shall be the sum of the Maximum Facilities Special Tax that can be levied on each type of property located on that Assessor’s Parcel.

The CFD Administrator’s allocation to each type of property shall be final. b. Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property
The Maximum Facilities Special Tax for each Assessor’s Parcel of Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property shall be $60,750 per Acre and shall not be subject to escalation and shall therefore remain the same in every Fiscal Year.
1939
City of Fontana July 1, 2022
Community Facilities District No. 111 (Monterado) Page 10

2. Services Special Tax
For purposes of the Services Special Tax, an Assessor’s Parcel(s) of Developed Property within a Final Residential Subdivision shall be assigned to Land Use Class 1 as identified in Table 2 and Table 3 below. Non-Residential Property shall be assigned to Land Use Class 2. Furthermore, the Services Special Tax levied against each Assessor’s Parcel within a Final Residential Subdivision shall be based on the number of residential dwelling units for which building permits have been issued or are expected to be issued for such Assessor’s Parcel, as determined by the CFD Administrator based on such Final Residential Subdivision of other available documents. a. Maximum Services Special Tax
The Fiscal Year 2022-2023 Maximum Services Special Tax for each Land Use Class of Developed Property is shown below in Table 2.

Table 2
Maximum Services Special Tax for Developed Property
City of Fontana CFD No. 111 (Monterado)
Fiscal Year 2022-2023
Land
Use
Class Description
Maximum
Services
Special Tax
1 Final Residential Subdivision $510 per unit
2 Non-Residential Property $8,780 per Acre
b. Assigned Services Special Tax
The Fiscal Year 2022-2023 Assigned Services Special Tax for each Land Use Class of Developed Property is shown below in Table 3.

Table 3
Assigned Services Special Tax for Developed Property
City of Fontana CFD No. 111 (Monterado)
Fiscal Year 2022-2023
Land
Use
Class Description
Assigned
Services
Special Tax
1 Final Residential Subdivision $366 per unit
2 Non-Residential Property $6,270 per Acre
1940
City of Fontana July 1, 2022
Community Facilities District No. 111 (Monterado) Page 11 c. Increase in the Maximum Services Special Tax
On each July 1, commencing on July 1, 2023, the Maximum Services Special Tax shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.
d. Increase in the Assigned Services Special Tax
The Assigned Services Special Tax above shall be applicable for Fiscal Year 2022-2023, and shall increase thereafter, commencing on July 1, 2023, and on each July 1 thereafter in an amount estimated to fund the Special Tax Requirement for Services for the Fiscal Year commencing on such July 1. However, in no case shall the Assigned Services Special Tax for an Assessor’s Parcel of Developed Property exceed the applicable Maximum Services Special Tax for such Assessor’s Parcel of Developed Property in any Fiscal Year. e. Multiple Land Uses
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land Use Class. In such cases, the Acreage of Developed Property shall be allocated between Residential Property and Non-Residential Property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Maximum Services Special Tax that can be levied on such Assessor’s Parcel shall be the sum of the Maximum Services Special Tax that can be levied on each type of property located on that Assessor’s Parcel. The CFD Administrator’s allocation to each type of property shall be final.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX

1. Facilities Special Tax
Commencing with Fiscal Year 2022-2023, and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement for Facilities and shall provide for the levy of the Facilities Special Tax each Fiscal Year as follows:

First: The Facilities Special Tax shall be levied on each Assessor’s Parcel of Developed Property in an amount equal to 100% of the applicable Assigned Facilities Special Tax; Second: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first step has been completed, the Facilities Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property at up to 100% of the Maximum Facilities Special Tax for Undeveloped Property;
Third: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first two steps have been completed, then the levy of the Facilities Special Tax on each Assessor's Parcel of Developed Property for which the Maximum Facilities Special Tax is determined through the application of the Backup Facilities Special Tax shall be increased in equal 1941
City of Fontana July 1, 2022
Community Facilities District No. 111 (Monterado) Page 12 percentages from the Assigned Facilities Special Tax up to the Maximum Facilities Special Tax for each such Assessor's Parcel;
Fourth: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first three steps have been completed, then the Facilities Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Public Property and Taxable Property Owner Association Property at up to 100% of the Maximum Facilities Special Tax for Taxable Public Property and Taxable Property Owner Association Property, as needed to satisfy the Special Tax Requirement for Facilities.

Notwithstanding the above, the CFD Administrator shall, in any Fiscal Year, calculate a levy Proportionately less than 100% of the Assigned Facilities Special Tax in step one (above), when (i) the CFD Administrator is no longer required to provide for the levy of the Facilities Special Tax pursuant to steps two through four above in order to meet the Special Tax Requirement for Facilities; and (ii) all authorized CFD No. 111 Bonds have already been issued or the Council has covenanted that it shall not issue any additional CFD No. 111 Bonds (except refunding bonds) to be supported by the Facilities Special Tax.

Further notwithstanding the above, under no circumstances shall the Facilities Special Tax levied in any Fiscal Year against any Assessor’s Parcel of Residential Property for which an occupancy permit for private residential use has been issued (in accordance with Section 53321(d)(3) of the California Government Code), be increased as a consequence of delinquency or default by the owner of any other Assessor’s Parcel within CFD No. 111 by more than ten percent above the amount that would have been levied in that Fiscal Year had there never been any such delinquencies or defaults. To the extent that the levy of the Facilities Special Tax on Residential Property is limited by the provision in the previous sentence, the levy of the Facilities Special Tax on each Assessor’s Parcel of Non-Residential Property shall continue in equal percentages up to 100% of the applicable Maximum Facilities Special Tax.

2. Services Special Tax
Commencing with Fiscal Year 2022-2023 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement for Services and shall provide for the levy of the Services Special Tax until the total Services Special Tax levy equals the Special Tax Requirement for Services. The Services Special Tax shall be levied each Fiscal Year as follows:

First: The Services Special Tax shall be levied Proportionately each Fiscal Year on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Services Special Tax as needed to satisfy the Special Tax Requirement for Services; Second: If additional monies are needed to satisfy the Special Tax Requirement for Services after the first step has been completed, then the levy of the Services Special Tax on each Assessor's Parcel of Developed Property shall be increased in equal percentages from the Assigned Services Special Tax up to the Maximum Services Special Tax for each such Assessor’s Parcel. 1942
City of Fontana July 1, 2022
Community Facilities District No. 111 (Monterado) Page 13 E. EXEMPTIONS

1. Facilities Special Tax
No Facilities Special Tax shall be levied on up to 9.0 Acres of Public Property and/or Property Owner Association Property in CFD No. 111. Tax-exempt status shall be assigned by the CFD Administrator in the chronological order in which property in CFD No. 111 becomes Public Property or Property Owner Association Property. However, should an Assessor’s Parcel no longer be classified as Public Property or Property Owner Association Property, it shall, from that point forward, be subject to the Facilities Special Tax.

Notwithstanding the above, an Assessor’s Parcel in CFD No. 111 that is transferred to a public agency or property owner’s association prior to the issuance of the first series of CFD No. 111 Bonds that causes the Acreage of Public Property and Property Owner Association Property to exceed the 9.0 Acreage limit that can be designated by the CFD Administrator under this Section E.1 shall also be exempted from paying the Special Tax.

Public Property or Property Owner Association Property that is not exempt from the Facilities Special Tax under this Section E.1 shall be subject to the levy of the Facilities Special Tax and shall be taxed Proportionately as part of the fourth step in Section D.1 herein, at up to 100% of the applicable Maximum Facilities Special Tax for Taxable Public Property and Property Owner Association Property.

In addition, no Facilities Special Tax shall be levied on Lower Income Households Welfare Exemption Property, provided that if, in any Fiscal Year, applicable law does not require that an Assessor’s Parcel that is Lower Income Households Welfare Exemption Property be exempt from the Facilities Special Tax, then the Facilities Special Tax shall be levied on such Assessor’s Parcel in accordance with this Rate and Method of Apportionment as if such Assessor’s Parcel were not classified as Lower Income Households Welfare Exemption Property.

2. Services Special Tax
No Services Special Tax shall be levied on Undeveloped Property, Taxable Public Property, Taxable Property Owner Association Property, Public Property, or Property Owner Association Property.

In addition, no Services Special Tax shall be levied on Lower Income Households Welfare Exemption Property, provided that if, in any Fiscal Year, applicable law does not require that an Assessor’s Parcel that is Lower Income Households Welfare Exemption Property be exempt from the Services Special Tax, then the Services Special Tax shall be levied on such Assessor’s Parcel in accordance with this Rate and Method of Apportionment as if such Assessor’s Parcel were not classified as Lower Income Households Welfare Exemption Property.

F. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 111 may directly bill the Special Tax, and/or 1943
City of Fontana July 1, 2022
Community Facilities District No. 111 (Monterado) Page 14 may collect Special Taxes at a different time or in a different manner if necessary to meet financial obligations, and, to the extent of the Facilities Special Tax, may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels.

G. APPEALS AND INTERPRETATIONS
Any landowner or resident who feels that the amount of the Special Tax levied on his/her Assessor’s Parcel is in error may submit a written appeal to the CFD Administrator, provided that the appellant is current in his/her payment of Special Taxes. During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, a cash refund shall not be made (except for the last year of levy), but the amount of the Special Tax levied shall be appropriately modified through an adjustment to the Special Tax levy in the following Fiscal Year. If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has 30 days in which to appeal to the Council by filing a written notice of appeal with the City Clerk, provided that the appellant is current in his/her payment of Special Taxes. This second appeal must specify the reasons for its disagreement with the CFD Administrator's determination.

The CFD Administrator shall interpret this Rate and Method of Apportionment for purposes of clarifying any ambiguity and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals. Any decision of the CFD Administrator shall be subject to appeal to the Council whose decision shall be final and binding as to all persons.

H. PREPAYMENT OF FACILITIES SPECIAL TAX
Under this Rate and Method of Apportionment, an Assessor’s Parcel within CFD No. 111 is permitted to prepay the Facilities Special Tax. The obligation of the Assessor’s Parcel to pay the Facilities Special Tax may be fully or partially prepaid and permanently satisfied as described herein, provided that a prepayment may be made only for Assessor’s Parcels of Developed Property, or for an Assessor’s Parcel of Undeveloped Property for which a building permit has been issued after January 1, 2022, and only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Facilities Special Tax obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount for such Assessor's Parcel. The CFD Administrator may charge such owner a reasonable fee for providing this service. If there are Outstanding Bonds, prepayment must be made not less than 30 days prior to a date that notice of redemption of CFD No. 111 Bonds from the proceeds of such prepayment may be given by the Trustee pursuant to the Indenture that is specified in the report of the Facilities Special Tax Prepayment Amount (defined below).

The following additional definitions apply to this Section H:
"CFD Public Facilities Costs" means either $5,977,600 in 2022 dollars, which shall increase by the Construction Inflation Index on July 1, 2023, and on each July 1 thereafter, or such lower 1944
City of Fontana July 1, 2022
Community Facilities District No. 111 (Monterado) Page 15 number as (i) shall be determined by the CFD Administrator as sufficient to provide funding for the Authorized Facilities under the authorized bonding program for CFD No. 111, or (ii) shall be determined by the Council concurrently with a covenant that it shall not issue any more CFD No. 111 Bonds (except refunding bonds) to be supported by the Facilities Special Tax levy under this Rate and Method of Apportionment.
"Construction Inflation Index" means the annual percentage change in the Engineering News Record Building Cost Index for the City of Los Angeles, measured as of the month of December in the calendar year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the CFD Administrator that is reasonably comparable to the Engineering News Record Building Cost Index for the City of Los Angeles.
"Future Facilities Costs" means the CFD Public Facilities Costs minus (i) costs of Authorized Facilities previously paid from the Improvement Fund, (ii) moneys currently on deposit in the Improvement Fund available to pay costs of Authorized Facilities, and (iii) the amount the CFD Administrator reasonably expects to derive from the reinvestment of these funds. "Improvement Fund" means a fund or account specifically identified in the Indenture (or prior to the issuance of the first series of CFD No. 111 Bonds a fund or account held by the City) to hold funds which are currently available for expenditure to acquire or construct Authorized Facilities. "Previously Issued Bonds" means, for any Fiscal Year, all Outstanding Bonds that are outstanding under the Indenture after the first interest and/or principal payment date following the current Fiscal Year.

1. Prepayment in Full
The Facilities Special Tax Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below):

Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
Equals Facilities Special Tax Prepayment Amount
As of the proposed date of prepayment, the Facilities Special Tax Prepayment Amount shall be calculated according to the following paragraphs:

1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.

2. For Assessor’s Parcels of Developed Property, compute the Assigned Facilities Special Tax and Backup Facilities Special Tax for the Assessor’s Parcel to be prepaid. For 1945
City of Fontana July 1, 2022
Community Facilities District No. 111 (Monterado) Page 16 Assessor’s Parcels of Undeveloped Property for which a building permit has been issued after January 1, 2022, compute the Assigned Facilities Special Tax and Backup Facilities Special Tax for that Assessor’s Parcel as though it was already designated as Developed Property, based upon the building permit which has already been issued for such Assessor’s Parcel.

3. (a) Divide the Assigned Facilities Special Tax computed pursuant to paragraph 2 by the total estimated Assigned Facilities Special Tax levy for CFD No. 111 based on the Assigned Facilities Special Taxes for Developed Property which could be levied on all expected development assuming Buildout of CFD No. 111, excluding any Assessor’s Parcels for which the Facilities Special Tax has been prepaid, and (b) Divide the Backup Facilities Special Tax computed pursuant to paragraph 2 by the total estimated Backup Facilities Special Taxes at Buildout for the entire CFD No. 111, excluding any Assessor’s Parcels for which the Facilities Special Tax has been prepaid.

4. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the Previously Issued Bonds to compute the amount of Previously Issued Bonds to be redeemed (the "Bond Redemption Amount").

5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium (e.g., the redemption price minus 100%), if any, on the Previously Issued Bonds to be redeemed (the "Redemption Premium").

6. Compute the current Future Facilities Costs.

7. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the amount determined pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be prepaid (the "Future Facilities Amount").

8. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the redemption date for the Previously Issued Bonds specified in the report of the Facilities Special Tax Prepayment Amount.

9. Determine the Facilities Special Tax levied on the Assessor’s Parcel in the current Fiscal Year which has not yet been paid.

10. Compute the minimum amount the CFD Administrator reasonably expects to derive from the reinvestment of the Facilities Special Tax Prepayment Amount, less any interest earnings attributed to the Future Facilities Amount, and less any interest earnings attributed to the Administrative Fees and Expenses (defined below) from the date of prepayment until the redemption date for the Previously Issued Bonds to be redeemed with the prepayment.

11. Add the amounts computed pursuant to paragraphs 8 and 9 and subtract the amount computed pursuant to paragraph 10 (the "Defeasance Amount"). 1946
City of Fontana July 1, 2022
Community Facilities District No. 111 (Monterado) Page 17

12. The administrative fees and expenses of CFD No. 111 are as calculated by the CFD Administrator and include the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming CFD No. 111 Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the "Administrative Fees and Expenses").

13. The reserve fund credit (the "Reserve Fund Credit") shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Previously Issued Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Previously Issued Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero. No Reserve Fund Credit shall be granted if the amount then on deposit in the reserve fund for the Previously Issued Bonds is below 100% of the reserve requirement (as defined in the Indenture).

14. If any capitalized interest for the Previously Issued Bonds will not have been expended as of the date immediately following the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the expected balance in the capitalized interest fund or account under the Indenture after such first interest and/or principal payment date (the "Capitalized Interest Credit").

15. The Facilities Special Tax prepayment is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 7, 11 and 12, less the amounts computed pursuant to paragraphs 13 and 14 (the "Facilities Special Tax Prepayment Amount").

2. Prepayment in Part
The owner of any Assessor’s Parcel who desires a partial prepayment of the Facilities Special Tax shall notify the CFD Administrator of such owner’s intent to partially prepay the Facilities Special Tax and the percentage by which the Facilities Special Tax shall be prepaid. The amount of the prepayment shall be calculated as in Section H.1; except that a partial prepayment shall be calculated according to the following formula:

PP = [(PE – A) x F] + A
These terms have the following meaning:

PP = the partial prepayment.

PE = the Facilities Special Tax Prepayment Amount calculated according to Section H.1.

F = the percentage, expressed as a decimal, by which the owner of the Assessor’s Parcel is partially prepaying the Facilities Special Tax.

A = the Administrative Fees and Expenses calculated according to Section H.1. 1947
City of Fontana July 1, 2022
Community Facilities District No. 111 (Monterado) Page 18

3. General Provisions Applicable to the Prepayment of Facilities Special Tax (a). Use of the Facilities Special Tax Prepayment Amount The Facilities Special Tax Prepayment Amount, less the Administrative Fees and Expenses calculated according to Section H.1 which shall be retained by CFD No. 111, and less the Future Facilities Amount calculated according to Section H.1 which shall be deposited into the Improvement Fund, shall be deposited into specific funds established under the Indenture, to fully or partially redeem as many Outstanding Bonds as possible, and, if amounts are less than $5,000, to make debt service payments on the Outstanding Bonds. (b). Full Prepayment of Facilities Special Tax
Upon confirmation of the payment of the current Fiscal Year’s entire Facilities Special Tax obligation, the CFD Administrator shall remove the current Fiscal Year’s Facilities Special Tax levy for such Assessor’s Parcel from the County tax rolls. With respect to any Assessor’s Parcel that is prepaid in accordance with Section H.1, the CFD Administrator shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of the Facilities Special Tax and the release of the Facilities Special Tax lien on such Assessor’s Parcel, and the obligation of such Assessor’s Parcel to pay the Facilities Special Tax shall cease.
(c). Partial Prepayment of Facilities Special Tax
With respect to any Assessor’s Parcel that is partially prepaid, the CFD Administrator shall (i) distribute or cause to be distributed the funds remitted to it according to Section H.3.(a) and (ii) indicate in the records of CFD No. 111 that there has been a partial prepayment of the Facilities Special Tax and that a portion of the Facilities Special Tax with respect to such Assessor’s parcel, equal to the outstanding percentage (1.00 – F) of the remaining Maximum Facilities Special Tax, shall continue to be levied on such Assessor’s Parcel pursuant to Section D herein.
(d). Debt Service Coverage
Notwithstanding the foregoing, no prepayment of the Facilities Special Tax shall be allowed unless the amount of Facilities Special Tax that may be levied on Taxable Property (assuming Buildout) within CFD No. 111 in each future Fiscal Year (after excluding Public Property and Property Owner Association Property as set forth in Section E.1 herein), after the proposed prepayment, is at least equal to the sum of (i) 1.10 times the debt service necessary to support the remaining Outstanding Bonds in each corresponding Fiscal Year, and (ii) Administrative Expenses.

I. TERM OF SPECIAL TAX
The Facilities Special Tax shall be levied for a period not to exceed fifty years commencing with Fiscal Year 2022-2023. The Services Special Tax shall be levied in perpetuity to fund the Special Tax Requirement for Services.

T/Clients/FONTANA/MELLO/CFD No. 111 (Monterado)/Rate and Method/Fontana CFD No. 111 (Monterado) RMA v1.docx Printed: July 1, 2022
1948

EXHIBIT A

CERTIFICATE TO AMEND FACILITIES SPECIAL TAX
CFD No. 111 CERTIFICATE

1. Pursuant to Section C.1 of the Rate and Method of Apportionment (the "Rate and Method") for City of Fontana Community Facilities District No. 111 (Monterado) ("CFD No. 111"), the Assigned Facilities Special Tax and the Backup Facilities Special Tax for Developed Property within CFD No. 111 has been reduced as described herein. (a) The information in Table 1 of the Rate and Method relating to the Assigned Facilities Special Tax for Developed Property within CFD No. 111 shall be modified as follows:

Land
Use
Class Description
Residential Floor
Area (square feet)
Original
Assigned
Facilities
Special Tax
Reduced
Assigned
Facilities
Special Tax
1 Residential Property 2,250 or Greater $3,258 per unit $[_____] per unit 2 Residential Property 2,050 to less than 2,250 $3,218 per unit $[_____] per unit 3 Residential Property 1,850 to less than 2,050 $3,031 per unit $[_____] per unit 4 Residential Property 1,650 to less than 1,850 $2,940 per unit $[_____] per unit 5 Residential Property Less than 1,650 $2,907 per unit $[_____] per unit 6 Non-Residential Property NA $51,640 per Acre $[_____] per Acre (b) The Backup Facilities Special Tax for Developed Property, as stated in Section C.1.a.(3) of the Rate and Method, shall be reduced from $60,750 per Acre to $[_____] per Acre.

2. The Assigned Facilities Special Tax and the Backup Facilities Special Tax for Developed Property may only be reduced prior to the first issuance of CFD No. 111 Bonds.

3. Upon execution of the certificate by CFD No. 111, CFD No. 111 shall cause an amended notice of Special Tax lien for CFD No. 111 to be recorded reflecting the reductions set forth herein.

All capitalized terms used herein shall have the meanings set forth in the Rate and Method.

By:___________________________ Date:______________________ CFD Administrator
By execution hereof, the undersigned acknowledge, on behalf of CFD No. 111, receipt of this certificate and modification of the Rate and Method as set forth in this certificate.

CITY OF FONTANA COMMUNITY FACILITIES DISTRICT No. 111 (MONTERADO) By:___________________________ Date:______________________ 1949
C-1
4130-1971-6154.2

EXHIBIT C

PROPERTY OWNER AND PROPERTY DESCRIPTION
Name of Property Owner San Bernardino County Assessor Parcel No.

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