Fontana City Council
September 13, 2022

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COMMUNITY FACILITIES

DISTRICT REPORT

CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 111
(MONTERADO)
Report Date: August 24, 2022
2018
www.FinanceDTA.com
100 Bayview Circle, Suite 100
Newport Beach, CA 92660

COMMUNITY FACILITIES DISTRICT REPORT
FOR

CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 111
(MONTERADO)

Prepared for:

City of Fontana
8353 Sierra Avenue
Fontana, CA 92335
2019
TABLE

OF CONTENTS

SECTION
I INTRODUCTION .............................................................. 1 II PROJECT DESCRIPTION ................................................ 2

III DESCRIPTION AND ESTIMATED COSTS OF PUBLIC
FACILITIES AND SERVICES ............................................ 3 A Description of Public Facilities and Services ................ 3 B Estimated Costs of Public Facilities and
Services ................................................................................. 4

IV BONDED INDEBTEDNESS AND INCIDENTAL
EXPENSES .......................................................................... 7 A Projected Bond Sales ......................................................... 7 B Incidental Bond Issuance Expenses to be
Included in the Proposed Bonded
Indebtedness ....................................................................... 7 C Incidental Expenses to be Included in the
Annual Levy of Special Taxes ........................................... 7 V RATE AND METHOD OF APPORTIONMENT .............. 8
A Explanation for Special Tax Apportionment ................. 8 B Maximum Facilities Special Tax ....................................... 9 C Backup Facilities Special Tax .......................................... 10 D Maximum Services Special Tax ...................................... 10 E Accuracy of Information ................................................. 10 VI BOUNDARIES OF THE CFD .......................................... 11 VII GENERAL TERMS AND CONDITIONS ....................... 12 A Substitution of Facilities and Services ......................... 12 B Appeals and Interpretations ........................................... 12 C Prepayment of Special Tax ............................................. 12

APPENDICES

APPENDIX A RATE AND METHOD OF

APPORTIONMENT

APPENDIX B BOUNDARY MAP
2020
1 SECTION I

INTRODUCTION

City of Fontana August 24, 2022
Community Facilities District No. 111 (Monterado)
www.FinanceDTA.com

I INTRODUCTION
WHEREAS, the City Council of the City of Fontana (hereinafter referred to as the "Council") did, pursuant to the provision of the "Mello-Roos Community Facilities Act of 1982," being Chapter 2.5, Part 1, Division 2 of Title 5 (commencing with Section 53311) of the Government Code of the State of California (hereinafter referred to as the "Act"), and specifically Section 53321.5 thereof, expressly order the filing of a written "Report" with the legislative body of the proposed Community Facilities District (“CFD”). This CFD being City of Fontana CFD No. 111 (Monterado) shall hereinafter be referred to as:
"CFD No. 111"; and,
WHEREAS, on July 26, 2022, Council, pursuant to 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 SPECIAL TAXES" (hereinafter referred to as the "Resolution of Intention") directing that the Report generally contain the following:

1. A brief description of the public facilities and services by type which will be required to adequately meet the needs of CFD No. 111; and

2. An estimate of the cost of providing the public facilities and services, including an estimate of 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, each officer of the City of Fontana (hereinafter referred to as the "City") who is or will be responsible for providing one or more of the proposed types of public facilities or services to be financed by CFD No. 111 has hereby directed DTA, Inc. to study the proposed CFD No. 111 and, at or before the time of the public hearing on the establishment of CFD No. 111, file the Report with Council pursuant to the provisions of the Resolution of Intention.

NOW, THEREFORE, DTA, Inc. does hereby submit the Report. 2021
2 SECTION II

PROJECT DESCRIPTION

City of Fontana August 24, 2022
Community Facilities District No. 111 (Monterado)
www.FinanceDTA.com

II PROJECT DESCRIPTION
CFD No. 111 encompasses approximately 20.57 gross acres of land within the City located on the east side of Citrus Avenue north of Duncan Canyon Road. Of this acreage, approximately 11.55 acres are expected to be developed into uses subject to a Mello-Roos Special Tax1. At buildout, it is currently anticipated that CFD No. 111 will consist of approximately 198 residential units, comprised of 89 single family detached alley loaded units ranging in size from 1,795 to 2,007 square feet, and 109 single family detached cluster units ranging in size from 1,822 to 2,207 square feet. 1 Please note that all capitalized terms used herein, unless otherwise indicated, shall have the meanings defined in the Rate and Method of Apportionment for CFD No. 111. 2022
3 SECTION III

DESCRIPTION AND ESTIMATED

COSTS OF PUBLIC FACILITIES AND

SERVICES

City of Fontana August 24, 2022
Community Facilities District No. 111 (Monterado)
www.FinanceDTA.com

III DESCRIPTION AND ESTIMATED COSTS OF PUBLIC FACILITIES AND

SERVICES
A CFD may provide for the purchase, construction, expansion or rehabilitation of any real or tangible property, including public facilities and infrastructure improvements, with an estimated useful life of five (5) years or longer, which is necessary to meet increased demands placed upon local agencies as a result of development or rehabilitation occurring within the CFD. In addition, a CFD may pay in full all amounts necessary to eliminate any fixed special assessment liens or to pay, repay, or defease any obligation to pay for any indebtedness secured by any tax, fee, charge, or assessment levied within the area of the CFD. A CFD may also provide for financing of certain public services to meet these demands.

A Description of Public Facilities and Services
The type of public facilities proposed to be eligible for funding by CFD No. 111, as identified in the resolution establishing CFD No. 111 (the "Resolution of Formation"), shall consist of those listed below. It is intended that CFD No. 111 will be authorized to finance all or a portion of the costs of any of the following public facilities to be owned and operated by the City, and such public facilities shall be constructed, whether or not acquired in their completed states, pursuant to the plans and specifications approved by the City:

A.1 Facilities
The types of public facilities proposed to be eligible for funding by CFD No. 111 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-of-way and easements necessary for any of such facilities.

A.2 Facilities Authorized to be Purchased as Completed Public Facilities The types of public facilities proposed to be purchased as completed facilities by CFD No. 111 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-of-way and easements necessary for any of such facilities.

A.3 Services
The types of public services to be financed by CFD No. 111 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 2023
4 SECTION III

DESCRIPTION AND ESTIMATED

COSTS OF PUBLIC FACILITIES AND

SERVICES

City of Fontana August 24, 2022
Community Facilities District No. 111 (Monterado)
www.FinanceDTA.com
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.

A.4 Incidental Expenses
The incidental expenses proposed to be incurred include the following:

The cost of planning and designing public facilities to be financed by CFD No. 111, including the cost of environmental evaluations of those facilities; The costs associated with the creation of CFD No. 111, issuance of CFD No. 111 bonds (the "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 CFD No. 111; and
Any other expenses incidental to the construction, completion, and inspection of the authorized work.

B Estimated Costs of Public Facilities and Services
The estimated costs of infrastructure and facilities currently expected to be financed through CFD No. 111 are set forth in the table below. The costs listed below are estimates only and actual costs may differ from those estimates herein. As previously referenced, it is intended that CFD No. 111 will be authorized to finance all or a portion of the costs of any of the following public facilities:
2024
5 SECTION III

DESCRIPTION AND ESTIMATED

COSTS OF PUBLIC FACILITIES AND

SERVICES

City of Fontana August 24, 2022
Community Facilities District No. 111 (Monterado)
www.FinanceDTA.com
CFD No. 111 (MONTERADO) PUBLIC FACILITIES AMOUNT
Acquisition Facilities $1,896,704
[1]

Street Improvements $534,987
Sewer Improvements $399,278
Storm Drain Improvements $391,337
Landscape Improvements $316,071
Street Pole Removal & Relocation $7,635
Construction Costs Contingency $247,396

Other Public Facilities

$4,177,987
[2]

$2,885,373
[3]

Park Facility Improvements $1,350,162 $1,350,162
Traffic Circulation Facility Improvements $1,167,210 $175,079 Storm Drain Facility Improvements $486,249 $364,362
Housing Facility Improvements $274,824 $274,824
Sewer Facility Improvements $178,596 $0
Active Transportation Plan Improvements $161,370 $161,370 Flood Control Facility Improvements $102,196 $102,196
Police Facility Improvements $96,228 $96,228
Public Facility Improvements $90,684 $90,684
Local Arterials Improvements $90,288 $90,288
Fire Facility Improvements $75,240 $75,240
Landscape Facility Improvements $56,826 $56,826
Traffic Signal Facility Improvements $27,918 $27,918
Library Facility Improvements $20,196 $20,196
Additional Capital Facilities Infrastructure Improvements $1,195,519 TOTAL ESTIMATED COSTS $5,977,596
[1] Represents estimates provided by the Project Developer and subject to review and confirmation. Estimates are inclusive of a 15% construction costs contingency for design, planning, engineering and construction management.
[2] Estimated amount of Permit Fees prior to the application of anticipated City fee credits. [3] Estimated amount of Permit Fees after the application of anticipated City fee credits.

In addition, CFD No. 111 is expected to finance the annual costs to provide 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. The Services Special Tax within CFD No. 111 has been 2025
6 SECTION III

DESCRIPTION AND ESTIMATED

COSTS OF PUBLIC FACILITIES AND

SERVICES

City of Fontana August 24, 2022
Community Facilities District No. 111 (Monterado)
www.FinanceDTA.com
established to pay for these public services at approximately $366 per residential dwelling unit per year. This amount is subject to change based on the actual need that arises as development progresses within CFD No. 111, and shall also be subject to an annual increase as specified in Section C.2 of the Rate and Method of Apportionment (defined herein).
2026
7 SECTION IV

BONDED INDEBTEDNESS AND

INCIDENTAL EXPENSES

City of Fontana August 24, 2022
Community Facilities District No. 111 (Monterado)
www.FinanceDTA.com

IV BONDED INDEBTEDNESS AND INCIDENTAL EXPENSES
A Projected Bond Sales
The maximum authorized bonded indebtedness for CFD No. 111 is $8,000,000. It is anticipated that CFD No. 111 will sell one or more series of Bonds, as determined necessary and appropriate by Council, as development progresses within CFD No. 111.

B Incidental Bond Issuance Expenses to be Included in the Proposed Bonded Indebtedness
Pursuant to Section 53345.3 of the Act, bonded indebtedness may include all costs and estimated costs incidental to, or connected with, the accomplishment of the purpose for which the proposed debt is to be incurred, including, but not limited to, the estimated costs of construction or acquisition of buildings, or both; acquisition of land, rights-of-way, water, sewer, or other capacity or connection fees; satisfaction of contractual obligations relating to expenses or the advancement of funds for expenses existing at the time the bonds are issued, architectural, engineering, inspection, legal, fiscal, and financial consultant fees; bond and other reserve funds; discount fees; interest on any bonds of the district estimated to be due and payable within two years of issuance of the bonds; election costs; and all costs of issuance of the bonds, including, but not limited to, fees for bond counsel, disclosure counsel and the City's general counsel, costs of obtaining credit ratings, bond insurance premiums, fees for letters of credit, and other credit enhancement costs, and printing costs. For the Bonds proposed to be issued by CFD No. 111, the reserve requirement is estimated at approximately seven percent of the principal amount of Bonds, capitalized interest is estimated at approximately five percent of the principal amount of Bonds, and all other incidental bond issuance expenses are estimated at approximately six percent of the principal amount of Bonds. Actual bond issuance expenses, including the amount of Bond funded capitalized interest, may vary from the above estimates.

C Incidental Expenses to be Included in the Annual Levy of Special Taxes Pursuant to Section 53340 of the Act, the proceeds of any special tax may only be used to pay, in whole or part, the costs of providing public facilities, services and incidental expenses. As defined by the Act, incidental expenses include, but are not limited to, the costs of planning and designing public facilities to be financed, including the costs of environmental evaluations of those public facilities; the costs associated with the creation of the 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 district; any other expenses incidental to the construction, completion, and inspection of the authorized work; and the costs associated with the retirement of existing bonded indebtedness. While the actual costs of administering CFD No. 111 may vary, it is anticipated that the amount of Special Taxes which can be collected will be sufficient to fund at least $40,000 in annual administrative expenses, which shall also be subject to an annual increase of two (2%) annually.
2027
8 SECTION V

RATE AND METHOD OF

APPORTIONMENT

City of Fontana August 24, 2022
Community Facilities District No. 111 (Monterado)
www.FinanceDTA.com

V RATE AND METHOD OF APPORTIONMENT
All of the property located within CFD No. 111, unless exempted by law or by the Rate and Method of Apportionment (defined below), shall be taxed for the purpose of funding public facilities and services authorized to be financed by CFD No. 111. Pursuant to Section 53325.3 of the Act, the tax imposed “is a special tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property.” The special tax “may be based on benefit received by parcels of real property, the costs of making authorized facilities or authorized services available to each parcel or other reasonable basis as determined by the legislative body,” although the special tax may not be apportioned on an ad valorem basis pursuant to Article XIIIA of the California Constitution.

The rate and method of apportionment of the special tax (the "Rate and Method of Apportionment") proposed to be levied within CFD No. 111 is described in Exhibit B to the Resolution of Intention. This proposed Rate and Method of Apportionment, also provided herein as Appendix A, provides information sufficient to allow each property owner within CFD No. 111 to estimate the maximum annual Special Tax he or she will be required to pay.

Sections A through D below provide additional information on the Rate and Method of Apportionment.

A Explanation for Special Tax Apportionment
When a CFD is formed, a special tax may be levied on each parcel of taxable property within the CFD to pay for the construction, acquisition and rehabilitation of public facilities, to pay for authorized services or to repay bonded indebtedness or other related expenses incurred by a CFD. This special tax must be apportioned in a reasonable manner; however, the tax may not be apportioned on an ad valorem basis.

When more than one type of land use is present within a CFD, several criteria may be considered when apportioning the special tax. Generally, criteria based on building square footage, acreage, and land use are selected, and categories based on such criteria are established to differentiate between parcels of property. These categories are a direct result of the projected product mix and are reflective of the proposed land use types within that CFD. Specific special tax levels are assigned to each land use class, with all parcels within a land use class assigned the same special tax rate.

The Act does not require that special taxes be apportioned to individual parcels based on benefit received. However, in order to ensure fairness and equity, benefit principles have been incorporated in establishing the Special Tax rates for CFD No. 111.

The major assumption inherent in the Special Tax rates set forth in the Rate and Method of Apportionment is that the level of benefit received from the proposed public facilities and services is a function of land use and/or product type. This assumption is borne out 2028
9 SECTION V

RATE AND METHOD OF

APPORTIONMENT

City of Fontana August 24, 2022
Community Facilities District No. 111 (Monterado)
www.FinanceDTA.com
through an examination of commonly accepted statistical measures for public facility usage.

For example, in measuring average weekday vehicle trip-ends, the Institute of Transportation Engineer's Trip Generation manual identifies land use as the primary determinant of trip-end magnitude. Larger residential dwelling units typically generate a greater number of trip-ends than do smaller residential dwelling units, and therefore, will tend to receive more benefit from road grading, road landscaping and road improvements.

Drainage and flood control requirements generally vary with the amount of impervious ground cover per parcel. It follows that large homes situated on large lots have more impervious ground cover which will create more drainage flows than that of smaller homes situated on smaller lots.

In addition, sewer treatment costs are based on plant capacity to treat Biochemical Oxygen Demand (“BOD”), Suspended Solids (“SS”), and the flow rate. Other variables for water and sewer requirements include storage and fire flow requirements, as well as the number of bathrooms and fixture units in the home and the population of the household, which tends to vary directly with the size of the dwelling unit.

Furthermore, larger buildings typically generate a greater number of “person hours,” or the number of hours per week that residents associated with a specific type of land use could potentially use park and recreation facilities, or require the need for the proposed public services.

Therefore, Special Tax rates have been established for residential and non-residential land use classes for CFD No. 111. In addition, in order to ensure fairness, the Special Tax rates are uniformly applied within each land use class. The Special Tax for a parcel of Residential Property in CFD No. 111 will vary directly based on the amount of Residential Floor Area on such parcel. The Special Tax for Non-Residential Property, if any, in CFD No. 111 will vary directly with the acreage of such parcel.

Based on the types of public facilities and services that are proposed for CFD No. 111 and the factors described above, the Special Taxes assigned to Developed Properties are generally proportionate to the relative benefits received by them, and, accordingly, the Special Taxes in CFD No. 111 can be considered fair and reasonable.

B Maximum Facilities Special Tax
Table 1 within the Rate and Method of Apportionment lists the Assigned Facilities Special Tax that may be levied on each Assessor’s Parcel classified as Developed Property within CFD No. 111 to fund the Special Tax Requirement for Facilities. The Facilities Special Tax for an Assessor’s Parcel of Developed Property cannot exceed the rates shown in such Table 1, except when the Backup Facilities Special Tax is applied as discussed in Section C below. In addition, the Maximum Facilities Special Tax for each Assessor’s Parcel of Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association 2029
10 SECTION V

RATE AND METHOD OF

APPORTIONMENT

City of Fontana August 24, 2022
Community Facilities District No. 111 (Monterado)
www.FinanceDTA.com
Property shall equal $60,750 per Acre.

C Backup Facilities Special Tax
Pursuant to the Rate and Method of Apportionment, 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. The Backup Facilities Special Tax for an Assessor's Parcel of Developed Property shall equal $60,750 per Acre, or such lower amount as determined pursuant to Section C.1.a.(3) of the Rate and Method of Apportionment.

D Maximum Services Special Tax
Table 2 within the Rate and Method of Apportionment lists the Fiscal Year 2022-2023 Maximum Services Special Tax that may be levied against Developed Property within CFD No. 111 to fund the Special Tax Requirement for Services. On each July 1, commencing 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. 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 CFD No. 111. Refer to Section C.2 of the Rate and Method of Apportionment for further details on the Services Special Tax.

E Accuracy of Information
In order to establish the Maximum Special Tax rates for CFD No. 111 as set forth in the Rate and Method of Apportionment, DTA has relied on information including, but not limited to, absorption, land-use types, building square footage, and net taxable acreage provided to it by others. DTA has not independently verified such data and disclaims responsibility for the impact of inaccurate data, if any, on the Rate and Method of Apportionment for CFD No. 111, including the inability to meet the financial obligations within CFD No. 111. 2030
11 SECTION VI

BOUNDARIES OF THE CFD

City of Fontana August 24, 2022
Community Facilities District No. 111 (Monterado)
www.FinanceDTA.com

VI BOUNDARIES OF THE CFD
The boundaries of CFD No. 111 include all land on which the Special Taxes may be levied.

A reduced scale map showing the boundaries of CFD No. 111 is provided herein as Appendix B. A full-scale map is on file with the City Clerk of the City and was recorded on August 3, 2022 in Book 90 of Boundary Maps at Page 50, as Document No. 2022-0266763 in the office of the County Recorder in the County of San Bernardino. 2031
12 SECTION VII

GENERAL TERMS AND

CONDITIONS

City of Fontana August 24, 2022
Community Facilities District No. 111 (Monterado)
www.FinanceDTA.com

VII GENERAL TERMS AND CONDITIONS
A Substitution of Facilities and Services
The descriptions of the public facilities and services, as set forth herein, are general in their nature. The City will determine the final nature, location, and costs of facilities and services upon the preparation of final plans and specifications. The final plans may show substitutes, in lieu of modifications to the proposed work in order to accomplish the work of improvement, and any such substitution shall not be a change or modification in the proceedings as long as the public facilities and services provide a service substantially similar to that as set forth in this Report.

B Appeals and Interpretations
Pursuant to Section G of the Rate and Method of Apportionment, 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.

C Prepayment of Special Tax
The Facilities Special Tax applicable to an Assessor’s Parcel in CFD No. 111 may be prepaid according to the prepayment provisions identified in Section H of the Rate and Method of Apportionment. The Services Special Tax may not be prepaid. 2032

APPENDIX A
City of Fontana
Community Facilities District No. 111
(Monterado)

RATE AND METHOD OF

APPORTIONMENT

2033
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.
2034
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 2035
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, 2037
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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 2038
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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 2041
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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 2044
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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. 2045
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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 2046
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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 2047
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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 2048
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"). 2049
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. 2050
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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
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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:______________________ 2052

APPENDIX B
City of Fontana
Community Facilities District No. 111
(Monterado)

BOUNDARY MAP
2053
2054
100 BAYVIEW CIRCLE, SUITE 100
NEWPORT BEACH, CA 92660
PHONE (800) 969-4DTA
Public Finance
Public-Private Partnerships
Development Economics
Clean Energy Bonds
www.FinanceDTA.com
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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-1693 Agenda Date: 9/13/2022
Agenda #: D. Category: Public Hearing
FROM:

Finance
SUBJECT:

Public Hearing on Formation of Community Facilities District No. 110M (Tract 16897) RECOMMENDATION:

1. Adopt Resolution No. 2022-122, of the City Council of the City of Fontana Establishing Community Facilities District No. 110M of the City of Fontana, County of San Bernardino, State of California, and Establishing the Boundaries Thereof.

2. Adopt Resolution No. 2022-123, of the City Council of the City of Fontana Calling a Special Election and Submitting to the Voters of Community Facilities District No. 110M of the City of Fontana, County of San Bernardino, State of California, a Proposition with Respect to the Annual Levy of Special Taxes within said Community Facilities District to Pay the Costs of Certain Services to be provided by the Community Facilities District and a Proposition with Respect to the Establishment of an Appropriations Limit for said Community Facilities District.

3. Adopt Resolution No. 2022-124, of the City Council of the City of Fontana Declaring the Results of the Special Election for Community Facilities District No. 110M of the City of Fontana, County of San Bernardino, State of California, on the Propositions with Respect to (I) The Annual Levy of Special Taxes to Pay the Costs of Certain Services to be provided by the Community Facilities District and (II) The Establishment of an Appropriations Limit.

4. Read by title only, and waive further reading of and introduce Ordinance No. 1905 Authorizing the Levy of a Special Tax within Community Facilities District No. 110M, that the reading of the Title constitutes the first reading thereof.

COUNCIL GOALS:
· Practice sound fiscal management by developing long-term funding and debt management plans.
· Invest in the City’s infrastructure (streets, sewers, parks, etc.) by improving the aesthetics of the community through code enforcement, street sweeping, and landscape maintenance.

DISCUSSION:

On July 26, 2022, the City Council approved the resolution of intent (the "Resolution of Intent") to establish Community Facilities District No. 110M (the “District”), which set the public hearing on the establishment of the District for September 13, 2022. The purpose for establishing the District is for the maintenance of the street lights, landscaping, detention basins/water quality systems, open City of Fontana Page 1 of 3 Printed on 9/7/2022
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File #: 21-1693 Agenda Date: 9/13/2022
Agenda #: D. Category: Public Hearing
the maintenance of the street lights, landscaping, detention basins/water quality systems, open space facilities, mailboxes located within the District owned by the City, graffiti removal, and park maintenance.

Pursuant to the requirements of the Resolution of Intent, the City Clerk's designee published a notice of the time and place of this hearing pursuant to Section 53322 of the California Government Code at least seven (7) days before the date of the hearing. Additionally, the City Clerk's designee also gave notice of the time and place of the meeting by mail to each land-owner within the District’s boundaries as prescribed by Section 53322.4 of the California Government Code at least fifteen (15) days before the hearing. The boundary map of the District was recorded on July 27, 2022.

The District boundaries include approximately 5.01 acres (18 units) of residential property and is located at the intersection of Citrus Avenue and Baseline Road.

A copy of the cost/service report is attached which contains a brief description of the service by type and an estimate of the costs of providing those services and the incidental expenses to be incurred therewith. This report is hereby made a part of the record of the public hearing.

The District has no registered voters in its boundaries and has one landowner (Bayrich Development USA, LLC.). The election will be held immediately after the close of the public hearing, the adoption of the resolution of formation, and the adoption of the resolution calling the special election in order for the City Council to be presented with the results of the election during the meeting. The City Council may then adopt a resolution declaring the results of the election after receiving a statement from the City Clerk as to the canvass of ballots.

The first year tax levy will be $968/lot consisting of $661 for maintenance, $37 for street lighting, and $270 for parks. The District’s 2023/24 maximum tax has been established at $1,355/lot and allows for a 2% inflation index pursuant to City guidelines.

Other maintenance districts in the City have annual rates ranging from $262 to $1,060 per assessor's parcel, with $551 per assessor's parcel being the current average. The higher than average rate for this District is due to the low number of units in the District as well as overall increases in contracted landscaping maintenance costs.

The combined special taxes for the District and the school district, together with the projected ad valorem property taxes, do not exceed the City Council policy of 1.95% of the sales price.

The City Council actions on September 13, 2022, will establish the maximum tax and authorize the first year levy. A cost analysis breakdown of the services is also attached.

Attached are three resolutions and an ordinance. The first resolution establishes the District and the rate and method of apportionment of the special tax. The second resolution calls for a special landowner election to be held on September 13, 2022, and the consent of the City Clerk to the election being held on such date. The third resolution declares the results of the election and a statement from the City Clerk as to the canvass of ballots. The ordinance authorizes the first year levy.

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File #: 21-1693 Agenda Date: 9/13/2022
Agenda #: D. Category: Public Hearing
FISCAL IMPACT:

This action will establish the District which will levy each property within its boundaries using special tax formulas outlined in the rate and method of apportionment of the special tax. All costs for establishing the District have been paid by the developer with ongoing yearly maintenance service costs paid by the property owners.

MOTION:

Approve staff recommendation.

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EXHIBIT A

LEGAL DESCRIPTION
COMMUNITY FACILITIES DISTRICT NO. 110M

OF THE CITY OF FONTANA,

COUNTY OF SAN BERNARDINO,

STATE OF CALIFORNIA
Legal Description:

The boundary of the Community Facilities District No. 110M of the City of Fontana, County of San Bernardino, State of California, described as follows:

Lot 70 of Etiwanda Vineyards, as per map recorded in Book 17, Page 29 of maps, in the office of the county recorder of said county, all within section 1, township 1 South, Range 6 West, San Bernardino Meridian, described as follows:

Beginning at the intersection of the centerline of Miller Avenue (formerly Minnesota Avenue), per said map with the centerline of Lime Avenue (formerly Malada Street), per said map, said intersection being the Northeast corner of said Lot 70, thence South 00°01’17” East along the centerline of Lime Avenue, a distance of 331.03 feet; thence North 8958’39” West along the southerly line said Lt 70 a distance of 659.70 feet to the southwest corner of Lot 70; thence North 0000’07” West along the West line of Lot 70 a distance of 330.63 feet to the centerline of Miller Avenue also being the Northwest corner of said Lot 70; thence North 8959’18” East along the centerline of Miller Avenue a distance of 659.59 feet to the point of beginning.

Contains 5.01 acres, more or less.
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EXHIBIT B

RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 110M OF THE

CITY OF FONTANA, COUNTY OF SAN BERNARDINO,

STATE OF CALIFORNIA
A special tax shall be levied on and collected in the Community Facilities District No. 110M of the City of Fontana, County of San Bernardino, State of California ("CFD No. 110M") each Fiscal Year, in an amount determined through the application of the rate and method of apportionment described below. The amount of the special tax to be levied on taxable property in CFD 110M in any fiscal year shall be determined by the City Council of the City of Fontana acting in its capacity as the legislative body of CFD No. 110M. All of the taxable property in CFD No. 110M, 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 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 parcel map.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means all ordinary and necessary costs and expenses of the City in administering CFD No. 110M, as allowed by the Act, which shall include, without limitation the following: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules; the costs of collecting the Special Taxes; the costs of the City or its designee related to any appeal or legal action related to the Special Taxes; and an allocable share of the salaries of the City staff and City overhead directly related to the foregoing.

Administrative Expenses shall also include amounts advanced by the City for any other administrative purposes of the CFD No. 110M, including the costs related to pursuing foreclosure of Taxable Property for delinquent Special Taxes. "Assessor’s Parcel" means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel number.
"Assessor’s Parcel Map" means an official map of the County Assessor of the County of San Bernardino designating parcels by Assessor’s Parcel number. 2060
"Assigned Special Tax" means the Special Tax for each Assessor’s Parcel of Developed Property or Undeveloped Property, as determined by reference to Table 1 of Section C below.
"City" means the City of Fontana, California.
"City Manager" means the City Manager of the City of his/her designee. "Council" means the City Council of the City of Fontana, acting as the legislative body of CFD No. 110M.
"County" means the County of San Bernardino.
"Developed Property" means, for each Fiscal Year, all Assessor’s Parcels of Taxable Property for which a final tract map, parcel map, lot line adjustment or any other similar map which subdivides such parcels into lots for which a building permit could be issued for construction of one or more residential dwelling units has been recorded with the County.
"Fiscal Year" means the period starting July 1 and ending on the following June

30. "Initial Assigned Special Tax" means the Assigned Special Tax for an Assessor’s Parcel for the first Fiscal Year following its designation as Developed Property.
"Land Use Class" means any of the classes listed in Table 1 below. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C, that can be levied by CFD No. 110M in any Fiscal Year.
"Open Space Property" means for any Fiscal Year, any Assessor’s Parcel, or portion of an Assessor’s Parcel or on any final tract map, parcel map, lot line adjustment or any other similar map which subdivides property. "Public Property" means any property within the boundaries of CFD No. 110M that is owned by the federal government, State of California or other governmental entity.
"Residential Property" means an Assessor’s Parcel used, intended or permitted to be used as a home or dwelling place for one or more families. 2061
"Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property, to fund the Special Tax Requirement. "Special Tax Requirement" means that amount required in any Fiscal Year for CFD No. 110M to: (1) pay the costs of maintenance of a project of new residential development, including street lighting, landscaping, detention basins/water quality systems, open space facilities, provide graffiti removal, park maintenance within and surrounding the area of CFD 110M, and mailboxes located within the District owned by the City with an estimated useful life of five or more years, and the costs associated with the determination of the amount, levy and collection of taxes, and costs incurred to carry out the authorized purposes of the community facilities district, (2) pay the Administrative Expenses, and (3) pay for anticipated delinquent special taxes (such delinquent special taxes shall be estimated based on the delinquency rate in CFD No. 110M for the previous Fiscal Year).
"Taxable Property" means all of the Assessor’s Parcels within the boundaries of CFD No. 110M which are not exempt from the Special Tax pursuant to law or Section E below.
“Undeveloped Property” means, for each Fiscal Year, all Assessor’s Parcels of Taxable Property which are not categorized as Developed Property.

B. ASSIGNMENT TO LAND USE CATEGORIES
For each Fiscal Year, commencing with the Fiscal Year in which the City Council determines that the levy of the Special Taxes shall commence, all Taxable Property within CFD No. 110M shall be categorized as either Developed Property or Undeveloped Property, and shall be subject to the Special Tax in accordance with the rate and method of apportionment determined pursuant to Sections C and D below.

C. MAXIMUM SPECIAL TAX RATE

1. Developed Property
a. Maximum Special Tax
The Maximum Special Tax for each Assessor’s Parcel classified as Developed Property shall be: $1,355 per Assessor’s Parcel in Fiscal Year 2023-24. The Maximum Special Tax for Developed Property shall be subject to an annual increase of two percent (2%).
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b. Initial Assigned Special Taxes
The Fiscal Year 2023-24 Initial Assigned Special Tax for Developed Property is shown below in Table 1.

2. Undeveloped Property
a. Maximum Special Tax
The Maximum Special Tax for each Assessor’s Parcel classified as Undeveloped Property shall be: $1,355 per proposed Assessor’s Parcel in Fiscal Year 2023-24. The Maximum Special Tax for Undeveloped Property shall be subject to an annual increase of two percent (2%).
b. Initial Assigned Special Taxes
The Fiscal Year 2023-24 Initial Assigned Special Tax for Undeveloped Property is shown below in Table 1.

TABLE 1
Initial Assigned Special Taxes for
CFD No. 110M (Fiscal Year 2023-24)
c. Increases in Initial Assigned Special Tax
The Initial Assigned Special Tax in Table 1 shall be applicable for Fiscal Year 2023-24, and shall increase thereafter, commencing on July 1, 2024, and on each July 1 thereafter according to the actual cost of the Special Tax Requirement of CFD No. 110M. However, Land Use Class
Fiscal Year 2023-24
Assigned Special Tax
Developed Property
Undeveloped Property

$968 per Assessor’s Parcel
$968 per proposed Assessor’s Parcel
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in no case shall the Assigned Special Tax exceed the Maximum Special Tax for such Fiscal Year.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2023-24 and for each following Fiscal Year, and prior to the final date on which the County Auditor will accept the levy for inclusion on the ad valorem real property tax roll for such Fiscal Year, the City Manager or designee, shall determine the Special Tax Requirement to be collected from Taxable Property in CFD No. 110M in such Fiscal Year. The Special Tax shall be levied as follows until the amount of the levy equals the Special Tax Requirement.

First: The Special Tax shall be levied in equal percentages on each Assessor’s Parcel of Developed Property up to 100% of the applicable Assigned Special Tax for such Assessor’s Parcel;
Second: If additional funds are needed to satisfy the Special Tax Requirement after the first step has been completed, then the Special Tax shall be levied on each Assessor’s Parcel of Undeveloped Property up to 100% of the Assigned Special tax for such Assessor’s Parcel;
Third: If additional funds are needed to satisfy the Special Tax Requirement after the first and second steps have been completed, then the Special Tax shall be levied on each Assessor’s Parcel of Developed Property in equal percentages from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor’s Parcel;
Fourth: If additional funds are needed to satisfy the Special Tax Requirement after the first, second, and third steps have been completed, then the Special Tax shall be levied on each Assessor’s Parcel of Undeveloped Property in equal percentages from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor’s Parcel.

E. EXEMPTIONS
The City Council shall not levy a Special Tax on Public Property, except as otherwise provided in Sections 53317.3, 53317.5, and 53340.1 of the Act.

The exempt status of any property will be determined by the City Manager, or designee, and such determination shall be final.
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F. MANNER OF COLLECTION
The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, and the same procedure, sale and lien priority in case of delinquency as is provided for ad valorem taxes; provided, however, that the City may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of CFD No. 110M.

G. DURATION OF SPECIAL TAX LEVIES
All Assessor’s Parcels of Taxable Property shall continue to be subject to the levy and collection of the Special Tax to satisfy the Special Tax Requirement as long as the City operates and maintains the street lighting, landscaping, detention basins/water quality systems, and park maintenance within and surrounding the area of the District, and mailboxes located within the District owned by the City and for the benefit of the area of the CFD 110M.

H. APPEALS
Any property owner claiming that the amount or application of the Special Tax is not correct and requesting a refund may file a written notice of appeal with the City Manager, or designee, not later than one calendar year after having paid the Special Tax that is disputed. The City Manager, or designee’s, shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and decide the appeal. If the City Manager’s, or designee’s, decision requires the Special Tax be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s). Any dispute over the decision of the City Manager, or designee, shall be referred to the City Council and the decision of the City Council shall be final. This procedure shall be exclusive and its exhaustion by any property owner shall be a condition of any legal action by such owner.
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A-1
EXHIBIT "A"

OFFICIAL BALLOT

CONSOLIDATED SPECIAL ELECTION FOR
COMMUNITY FACILITIES DISTRICT NO. 110M

OF THE CITY OF FONTANA

COUNTY OF SAN BERNARDINO

STATE OF CALIFORNIA
September 13, 2022
To vote, mark a cross (+) in the voting square after the word "YES" or after the word "NO". All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void.

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

PROPOSITION A: Shall special taxes
be levied annually on taxable property
within Community Facilities District
No. 110M of the City of Fontana, County
of San Bernardino, State of California, to
pay the costs of services to be provided
for a new residential development (Tract
16897), including street lighting,
landscaping, park maintenance,
detention basins/water quality systems,
and open space facilities within and
surrounding the area of the Community
Facilities District, mailboxes located
within the Community Facilities District
owned by the City with an estimated
useful life of five or more year, and to
pay the costs associated with the
determination of the amount of and the
levy and collection of the special taxes
at the special tax rates and pursuant to
the method of apportioning such special
taxes set forth in Exhibit "B" to Resolution No. 2022-089 adopted by the City Council of the City of Fontana on July
26, 2022?
[Proposition A]
YES __________
NO __________
2066
A-2
PROPOSITION B: Shall an
appropriations limit, as defined by
subdivision (h) of Section 8 of Article XIII
B of the California Constitution, be
established for Community Facilities
District No. 110M of the City of Fontana,
County of San Bernardino, State of
California, in the amount of $1,000,000?
[Proposition B]

PROPOSITION A IS SUBJECT TO THE ACCOUNTABILITY MEASURES PRESCRIBED IN SECTION 50075.1 OF THE GOVERNMENT CODE OF THE STATE OF CALIFORNIA.

YES __________
NO __________
2067

ORDINANCE NO. 1905

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FONTANA,

CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN COMMUNITY FACILITIES DISTRICT NO. 110M.

WHEREAS, the City Council of the City of Fontana, (the “City Council”) has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified elector relating to the levy of a special tax in a community facilities district, all as authorized pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”). This Community Facilities District shall hereinafter be referred to as COMMUNITY FACILITIES DISTRICT NO. 105M OF THE CITY OF FONTANA (the “CFD”).

THE CITY COUNCIL OF THE CITY OF FONTANA DOES ORDAIN AS
FOLLOWS:

Section 1. That the above recital is true and correct.

Section 2. Findings
A) It is necessary that the City Council levy special taxes pursuant to Section 53340 of the Act the payment of the costs of services within and surrounding the area of the CFD (the “Special Tax”), and for payment of administrative expenses incurred in connection with the levy and collection of said Special Tax.

B) The Special Tax to be levied is in compliance with all laws pertaining to said levy, including, without limitation, all applicable provisions of the Act.

C) The Special Tax is levied for the purpose of paying costs relating to the maintenance of street lighting, landscaping, park maintenance, detention basins/water quality systems, and open space facilities within and surrounding the area of the CFD, mailboxes located within the CFD owned by the City with an estimated useful life of five or more years, and paying the incidental expenses incurred by the City in administering the CFD, all in accordance with the Act and Resolution No. 2022-___ of the City.

D) The Special Tax will be levied without regard to property valuation.

Section 3. That the City Council does, by the passage of this Ordinance, authorize the levy of the Special Tax on all parcels of real property within the CFD which are subject to taxation, subject to a maximum Special Tax as defined in Exhibit “A”, the Rate and Method of Apportionment of Special Tax, attached hereto and by this reference made a part hereof.
2068

Section 4. That the City Council is further authorized each year, by resolution, to determine the specific Special Tax rate and amount to be levied for each fiscal year, except that the Special Tax rate to be levied shall not exceed the maximum Special Tax as set forth in Exhibit “A,” but the Special Tax may be levied at a lower rate.

Section 5. Upon the effective date of this Ordinance, the Special Tax shall be and is hereby levied for Fiscal Year 2023-2024 on all parcels of real property within the CFD which are subject to taxation, which are identified in Exhibit “B” attached hereto, and in the amount set forth for each such parcel in said Exhibit “B”. Pursuant to Section 53340 of the Act, commencing in Fiscal Year 2023-2024 such Special Tax shall be collected in the same manner as ordinary ad valorem property taxes are collected. The Special Taxes shall have the same lien and priority in the case of delinquency as is provided for ad valorem taxes.

Section 6. The City Clerk shall immediately following the adoption of this Ordinance transmit a copy of this ordinance to the Board of Supervisors and the County Auditor of the County of San Bernardino (the “County”), together with a request that the Special Tax as levied hereby be collected on the tax bills for the parcels identified in Exhibit “B” hereto along with the ordinary ad valorem property taxes, to be levied on and collected from the owners of said parcels commencing in Fiscal Year 2023-2024. The tax collector of the County is authorized to and may deduct reasonable administration costs incurred in collecting the Special Tax.

Section 7. This Ordinance shall take effect thirty (30) days after the date of adoption and prior to the expiration of fifteen (15) days from the passage thereof, shall be published by the City Clerk at least once in a newspaper of general circulation, published and circulated in the boundaries of the City and the CFD, and henceforth and thereafter the same shall be in full force and effect.
2069

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

READ AND APPROVED AS TO LEGAL FORM:

City Attorney
I, Tonia Lewis, 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 adopted by the City Council and was introduced at a regular meeting of said City Council on the 13th day of September, 2022, and was passed and adopted not less than five (5) days thereafter on the 27
th 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
2070

EXHIBIT A

RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 110M OF THE

CITY OF FONTANA, COUNTY OF SAN BERNARDINO,

STATE OF CALIFORNIA
A special tax shall be levied on and collected in the Community Facilities District No. 110M of the City of Fontana, County of San Bernardino, State of California ("CFD No. 110M") each Fiscal Year, in an amount determined through the application of the rate and method of apportionment described below. The amount of the special tax to be levied on taxable property in CFD 110M in any fiscal year shall be determined by the City Council of the City of Fontana acting in its capacity as the legislative body of CFD No. 110M. All of the taxable property in CFD No. 110M, 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 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 parcel map.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means all ordinary and necessary costs and expenses of the City in administering CFD No. 110M, as allowed by the Act, which shall include, without limitation the following: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules; the costs of collecting the Special Taxes; the costs of the City or its designee related to any appeal or legal action related to the Special Taxes; and an allocable share of the salaries of the City staff and City overhead directly related to the foregoing.

Administrative Expenses shall also include amounts advanced by the City for any other administrative purposes of the CFD No. 110M, including the costs related to pursuing foreclosure of Taxable Property for delinquent Special Taxes. "Assessor’s Parcel" means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel number.
"Assessor’s Parcel Map" means an official map of the County Assessor of the County of San Bernardino designating parcels by Assessor’s Parcel number. 2071
"Assigned Special Tax" means the Special Tax for each Assessor’s Parcel of Developed Property or Undeveloped Property, as determined by reference to Table 1 of Section C below.
"City" means the City of Fontana, California.
"City Manager" means the City Manager of the City of his/her designee. "Council" means the City Council of the City of Fontana, acting as the legislative body of CFD No. 110M.
"County" means the County of San Bernardino.
"Developed Property" means, for each Fiscal Year, all Assessor’s Parcels of Taxable Property for which a final tract map, parcel map, lot line adjustment or any other similar map which subdivides such parcels into lots for which a building permit could be issued for construction of one or more residential dwelling units has been recorded with the County.
"Fiscal Year" means the period starting July 1 and ending on the following June

30. "Initial Assigned Special Tax" means the Assigned Special Tax for an Assessor’s Parcel for the first Fiscal Year following its designation as Developed Property.
"Land Use Class" means any of the classes listed in Table 1 below. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C, that can be levied by CFD No. 110M in any Fiscal Year.
"Open Space Property" means for any Fiscal Year, any Assessor’s Parcel, or portion of an Assessor’s Parcel or on any final tract map, parcel map, lot line adjustment or any other similar map which subdivides property. "Public Property" means any property within the boundaries of CFD No. 110M that is owned by the federal government, State of California or other governmental entity.
"Residential Property" means an Assessor’s Parcel used, intended or permitted to be used as a home or dwelling place for one or more families. 2072
"Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property, to fund the Special Tax Requirement. "Special Tax Requirement" means that amount required in any Fiscal Year for CFD No. 110M to: (1) pay the costs of maintenance of a project of new residential development, including street lighting, landscaping, detention basins/water quality systems, open space facilities, provide graffiti removal, park maintenance within and surrounding the area of CFD 110M, and mailboxes located within the District owned by the City with an estimated useful life of five or more years, and the costs associated with the determination of the amount, levy and collection of taxes, and costs incurred to carry out the authorized purposes of the community facilities district, (2) pay the Administrative Expenses, and (3) pay for anticipated delinquent special taxes (such delinquent special taxes shall be estimated based on the delinquency rate in CFD No. 110M for the previous Fiscal Year).
"Taxable Property" means all of the Assessor’s Parcels within the boundaries of CFD No. 110M which are not exempt from the Special Tax pursuant to law or Section E below.
“Undeveloped Property” means, for each Fiscal Year, all Assessor’s Parcels of Taxable Property which are not categorized as Developed Property.

B. ASSIGNMENT TO LAND USE CATEGORIES
For each Fiscal Year, commencing with the Fiscal Year in which the City Council determines that the levy of the Special Taxes shall commence, all Taxable Property within CFD No. 110M shall be categorized as either Developed Property or Undeveloped Property, and shall be subject to the Special Tax in accordance with the rate and method of apportionment determined pursuant to Sections C and D below.

C. MAXIMUM SPECIAL TAX RATE

1. Developed Property
a. Maximum Special Tax
The Maximum Special Tax for each Assessor’s Parcel classified as Developed Property shall be: $1,355 per Assessor’s Parcel in Fiscal Year 2023-24. The Maximum Special Tax for Developed Property shall be subject to an annual increase of two percent (2%).
2073
b. Initial Assigned Special Taxes
The Fiscal Year 2023-24 Initial Assigned Special Tax for Developed Property is shown below in Table 1.

2. Undeveloped Property
a. Maximum Special Tax
The Maximum Special Tax for each Assessor’s Parcel classified as Undeveloped Property shall be: $1,355 per proposed Assessor’s Parcel in Fiscal Year 2023-24. The Maximum Special Tax for Undeveloped Property shall be subject to an annual increase of two percent (2%).
b. Initial Assigned Special Taxes
The Fiscal Year 2023-24 Initial Assigned Special Tax for Undeveloped Property is shown below in Table 1.

TABLE 1
Initial Assigned Special Taxes for
CFD No. 110M (Fiscal Year 2023-24)
c. Increases in Initial Assigned Special Tax
The Initial Assigned Special Tax in Table 1 shall be applicable for Fiscal Year 2023-24, and shall increase thereafter, commencing on July 1, 2024, and on each July 1 thereafter according to the actual cost of the Special Tax Requirement of CFD No. 110M. However, Land Use Class
Fiscal Year 2023-24
Assigned Special Tax
Developed Property
Undeveloped Property

$968 per Assessor’s Parcel
$968 per proposed Assessor’s Parcel
2074
in no case shall the Assigned Special Tax exceed the Maximum Special Tax for such Fiscal Year.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2023-24 and for each following Fiscal Year, and prior to the final date on which the County Auditor will accept the levy for inclusion on the ad valorem real property tax roll for such Fiscal Year, the City Manager or designee, shall determine the Special Tax Requirement to be collected from Taxable Property in CFD No. 110M in such Fiscal Year. The Special Tax shall be levied as follows until the amount of the levy equals the Special Tax Requirement.

First: The Special Tax shall be levied in equal percentages on each Assessor’s Parcel of Developed Property up to 100% of the applicable Assigned Special Tax for such Assessor’s Parcel;
Second: If additional funds are needed to satisfy the Special Tax Requirement after the first step has been completed, then the Special Tax shall be levied on each Assessor’s Parcel of Undeveloped Property up to 100% of the Assigned Special tax for such Assessor’s Parcel;
Third: If additional funds are needed to satisfy the Special Tax Requirement after the first and second steps have been completed, then the Special Tax shall be levied on each Assessor’s Parcel of Developed Property in equal percentages from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor’s Parcel;
Fourth: If additional funds are needed to satisfy the Special Tax Requirement after the first, second, and third steps have been completed, then the Special Tax shall be levied on each Assessor’s Parcel of Undeveloped Property in equal percentages from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor’s Parcel.

E. EXEMPTIONS
The City Council shall not levy a Special Tax on Public Property, except as otherwise provided in Sections 53317.3, 53317.5, and 53340.1 of the Act.

The exempt status of any property will be determined by the City Manager, or designee, and such determination shall be final.
2075
F. MANNER OF COLLECTION
The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, and the same procedure, sale and lien priority in case of delinquency as is provided for ad valorem taxes; provided, however, that the City may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of CFD No. 110M.

G. DURATION OF SPECIAL TAX LEVIES
All Assessor’s Parcels of Taxable Property shall continue to be subject to the levy and collection of the Special Tax to satisfy the Special Tax Requirement as long as the City operates and maintains the street lighting, landscaping, detention basins/water quality systems, and park maintenance within and surrounding the area of the District, and mailboxes located within the District owned by the City and for the benefit of the area of the CFD 110M.

H. APPEALS
Any property owner claiming that the amount or application of the Special Tax is not correct and requesting a refund may file a written notice of appeal with the City Manager, or designee, not later than one calendar year after having paid the Special Tax that is disputed. The City Manager, or designee’s, shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and decide the appeal. If the City Manager’s, or designee’s, decision requires the Special Tax be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s). Any dispute over the decision of the City Manager, or designee, shall be referred to the City Council and the decision of the City Council shall be final. This procedure shall be exclusive and its exhaustion by any property owner shall be a condition of any legal action by such owner.
2076
A-1

EXHIBIT B
City of Fontana
Community Facilities District No. 110M
Assessor’s Parcel
1110-111-11-0-0000
2077

REPORT TO THE CITY COUNCIL OF

THE CITY OF FONTANA

REGARDING PUBLIC SERVICES REQUIRED FOR
COMMUNITY FACILITIES DISTRICT NO. 110M

OF THE CITY OF FONTANA,

COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA
This report is prepared pursuant to Section 53321.5 of the California Government Code and is presented to the City Council of the City of Fontana for purposes of the public hearing with regard to the above-referenced community facilities district to be held on September 13, 2022.

A brief description of the types of services which will, in the opinion of the undersigned, be necessary to adequately meet the needs of the community facilities district and which are proposed to be financed with the levy of special taxes within the community facilities district, and estimates of the cost of those services and incidental expenses which are to be paid for from the levy of special taxes all as set forth in Exhibit "A" attached hereto.

DATED: ___________, 2022.

City Manager
City of Fontana
2078
A-1
EXHIBIT "A"
A. DESCRIPTION OF SERVICES
The types of services proposed to be provided and financed by the proposed community facilities district (CFD No. 110M) are the maintenance of the exterior street lighting, landscaping, and park maintenance, detention basins/water quality systems, open space facilities and mailboxes located within CFD No. 110M owned by the City with an estimated useful life of five or more years.

B. ESTIMATE OF COSTS OF SERVICES AND INCIDENTAL EXPENSES Annual Cost of Maintenance:

Cost of Maintenance
Street Lighting $ 672
Landscaping 9,414
Graffiti Removal 0
Water Quality System 0
Park contribution 4,863
14,949
Incidental Expenses
Annual calculation and
Levy of special taxes $ 2,465
Total Cost of Services $ 17,414
2079
LEGEND PROPOSED COBBLESTONE 3,209 S.F 41W LED STREET LIGHT 6 EA PERIMETER WALL 814 L.F. LANDSCAPE 10,139 S.F. TUBULAR STEEL FENCING 142 L.F. W/ 6" PILASTER STREET TREE 10 EA HARDSCAPE 5,780 S.F. WATER DETENTION BASIN 7,671 S.F. (LANDSCAPE) PCC LINING 628 S.F. quantities: BOUNDARY MAP TRACT NO. 16897 COMMUNITY FACILITIES DISTRICT NO.____ ” ” ” ” VICINITY MAP 15 SITE 2080
1 RESOLUTION NO. 2022-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

FONTANA ESTABLISHING COMMUNITY FACILITIES
DISTRICT NO. 110M OF THE CITY OF FONTANA,
COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AND ESTABLISHING THE BOUNDARIES

THEREOF
WHEREAS, the City Council (the "City Council") of the City of Fontana (the "City") has heretofore adopted on July 26, 2022, Resolution No. 2022-089 stating that a community facilities district to be known as "Community Facilities District No. 110M of the City of Fontana, County of San Bernardino, State of California" (the "Community Facilities District"), is proposed to be established under the terms of Chapter 2.5 (commencing with § 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the "Mello-Roos Community Facilities Act of 1982" (the "Act"), and fixing the time and place for a public hearing on the establishment of the Community Facilities District; and
WHEREAS, notice was published and mailed to the owner of property in the Community Facilities District as required by law relative to the intention of the City Council to establish the Community Facilities District, the levy of the special taxes therein, the financing of public services therein by the Community Facilities District, and of the time and place of said public hearing; and
WHEREAS, on September 13, 2022, at the time and place specified in said published and mailed notices, the City Council opened and held a public hearing as required by law relative to the formation of the Community Facilities District, the levy of the special taxes therein and the financing of services by the Community Facilities District; and
WHEREAS, prior to said hearing there was filed with the City Council a report (the "Report") containing a description of the services being financed within and for the Community Facilities District, and an estimate of the cost of providing such services, as required by Section 53321.5 of the Act; and
WHEREAS, at the public hearing all persons desiring to be heard on all matters pertaining to the establishment of the Community Facilities District, the levy of the special taxes and the financing of services therein were heard, and a full and fair hearing was held; and
WHEREAS, the City Council may therefore proceed to establish the Community Facilities District;
2081
2 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fontana, as follows:

Section 1. Findings. The City Council finds as follows: (i) all of the preceding recitals are correct, (ii) on September 13, 2022, pursuant to notice thereof duly given as provided by law, the City Council conducted a public hearing with respect to the establishment of the Community Facilities District and the annual levying of specified special taxes on the taxable property within the Community Facilities District to pay the costs of services for the Community Facilities District which are described in Section 3 hereof, (iii) the boundary map of the Community Facilities District has been recorded pursuant to Section 3111 of the Streets and Highways Code as Instrument No. 2022- 0260094 at page number 47 of book number 90 in the Book of Maps of Assessment and Community Facilities Districts of the official records of the County of San Bernardino (the “County”), (iv) all prior proceedings prior to and during the hearing with respect to the establishment of the Community Facilities District conducted by the City Council on September 13, 2022, were valid and in conformity with the requirements of the Act, (v) no written protests were received at or prior to the time of said hearing against the establishment of the Community Facilities District or the levying of said special taxes by the Community Facilities District, and, therefore, a majority protest does not exist pursuant to Section 53324 of the Act, (vi) the services described in Section 3 hereof are not replacing services available within the boundaries of the Community Facilities District and are necessary to meet increased demands placed upon the City as a result of new development occurring within the boundaries of the Community Facilities District, and (vii) the City Council is, therefore, authorized to adopt a resolution of formation pursuant to Section 53325.1 of the Act for the establishment of Community Facilities District No. 110M of the City of Fontana, County of San Bernardino, State of California, and the Community Facilities District should be established.

Section 2. Establishment of Community Facilities District. Community Facilities District No. 110M of the City of Fontana, County of San Bernardino, State of California, is hereby established. The boundaries of the Community Facilities District are set forth in Exhibit "A" attached hereto and are also shown on the map entitled "Proposed Boundaries of Community Facilities District No. 110M of the City of Fontana, County of San Bernardino, State of California" which is on file with the City Clerk and said boundaries are hereby established.

Section 3. Types of Services; Incidental Expenses. The Community Facilities District will finance the costs of services to maintain street lighting, landscaping, park maintenance, detention basins/water quality systems, and open space facilities within and surrounding the area of the Community Facilities District, mailboxes located within the Community Facilities District owned by the City with an estimated useful life of five or more years, and the costs associated with the determination of the amount, levy, and collection of special taxes, which are levied to provide such services, the costs associated with the creation of the Community Facilities District and costs otherwise incurred in order to carry out the authorized purposes of the Community Facilities District.
2082
3 "Maintenance" means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of such street lighting, landscaping, parks, parkways, detention basins/water quality systems, open space facilities, mailboxes, and the incidental costs related thereto, including:
a) Repair, removal, or replacement of all or any part of any improvement. b) Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury. c) The removal of trimmings, rubbish, debris, and other solid waste. d) The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.

Section 4. Special Taxes. Except where funds are otherwise available, special taxes sufficient to pay the costs of services specified in Section 3 above of the Community Facilities District, and the annual administrative expenses of the City and the Community Facilities District in determining, apportioning, levying and collecting such special taxes shall be annually levied within the Community Facilities District. The rate and method of apportionment (the “Rate and Method”) of said special taxes shall be as set forth in Exhibit "B" attached hereto and by this reference made a part hereof.

The Rate and Method sets forth in sufficient detail to allow each landowner or resident within the Community Facilities District to clearly estimate the maximum amount of special taxes that such person will have to pay for the services in Section 3 hereof.

The City Council finds that the methodology for determining and apportioning annual and maximum amounts of special taxes, set forth in the Rate and Method is based upon the cost of making the services available to each lot and parcel in the Community Facilities District. The special taxes will be apportioned to each lot or parcel on the foregoing basis in accordance with the Rate and Method. Pursuant to Section 53325.3 of the Act such special taxes are not a special assessment nor apportioned on the basis of benefit to any of real property.

Pursuant to Section 53340 of the Act, the special taxes shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes; provided however, the Community Facilities District may utilize a direct billing procedure for any special taxes that cannot be collected on the County tax roll or may, by resolution, elect to collect the special taxes at a different time or in a different manner if necessary to meet its financial obligations.

Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code, a continuing lien to secure each levy of the special tax 2083
4 shall attach to all non-exempt real property in the Community Facilities District and this lien shall continue in full force and effect until collection of the special tax by the legislative body ceases. The special tax may not be prepaid.

The Management Services Department of the City of Fontana, 8453 Sierra Avenue, Fontana, California, 909-350-6608 is designated as the office responsible for preparing annually a current roll of special tax levy obligations by assessor's parcel numbers and for estimating future special tax levies pursuant to Section 53340.2 of the Act.

Section 5. Annexation of Territory. Other property within the corporate boundaries of the City of Fontana may be annexed into the Community Facilities District in accordance with the Act.

Section 6. Exempt Property. Pursuant to Section 53340 of the Act, and except as provided in Section 53317.3 of the Act, properties of entities of the state, federal and local governments shall be exempt from the levy of special taxes of the Community Facilities District, unless the entity is a landowner within the meaning of Section 53317(f) of the Act.

Section 7. Report. The Report is hereby approved and is made a part of the record of the public hearing regarding the formation of the Community Facilities District, and is ordered to be kept on file with the City Clerk as part of the transcript of these proceedings.

Section 8. Repayment of Funds Advanced or Work-in-Kind. Pursuant to Section 53314.9 of the Act, the City Council proposes to accept advances of funds or work-in-kind from private persons or private entities and to provide, by resolution, for the use of those funds or that work-in-kind for any authorized purpose, including but not limited to, paying any costs incurred by the City in creating the proposed community facilities district, and to enter into an agreement, by resolution, with the person or entity for the value, or cost, whichever is less, of the work-in-kind, as determined by the City Council.

Section 9. Description of Voting Procedures. The voting procedures to be followed in conducting the consolidated special elections on (i) the proposition with respect to the levy of special taxes on the parcels of taxable property within the Community Facilities District to pay the annual costs of services described in Section 3 hereof, and (ii) the proposition with respect to the establishment of an appropriations limit for the Community Facilities District in the amount of $1,000,000, (the "consolidated special elections") are held, shall be as follows:
(a) If at least 12 persons have been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of the public or protest hearing (the "protest hearing"), the vote in the consolidated special elections shall be by the registered voters of the Community Facilities District with each voter having one vote. In that event, the consolidated special elections shall be 2084
5 conducted by the City Clerk, and shall be held on a date selected by the City Council in conformance with the provisions of Section 53326 of the Act and pursuant to the provisions of the California Elections Code governing elections of cities, insofar as they may be applicable, and pursuant to said Section 53326 the ballots for the consolidated special elections shall be distributed to the qualified electors of the Community Facilities District by mail with return postage prepaid or by personal service, and the consolidated special elections shall be conducted as a mail ballot election. (b) If 12 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 protest hearing, pursuant to Section 53326 of the Act, the vote is therefore to be by the landowners of the Community Facilities District, with each landowner of record at the close of the protest hearing having one vote for each acre or portion of an acre of land that he or she owns within the Community Facilities District, the consolidated special elections shall be conducted by the City Clerk as follows:
(1) The consolidated special elections shall be held on the earliest date, following the adoption by the City Council of the resolution of formation establishing the Community Facilities District pursuant to Section 53325.1 of the Act, and a resolution pursuant to Section 53326 of the Act submitting the propositions with respect to (i) the levy of special taxes to pay the costs of services described in Section 3 hereof of the Community Facilities District, and (ii) the establishing of an appropriations limit therefor to the qualified electors of the community facilities district, upon which such elections can be held pursuant to said Section 53326 which may be selected by the City Council, or such earlier date as the owners of land within the Community Facilities District and the City Clerk agree and concur is acceptable.
(2) Pursuant to said Section 53326, the consolidated special elections may be held earlier than 90 days following the close of the protest hearing if the qualified electors of the Community Facilities District waive the time limits for conducting the elections set forth in said Section 53326 by unanimous written consent and the City Clerk concurs in such earlier election date as shall be consented to by the qualified electors.
(3) Pursuant to said Section 53326, ballots for the consolidated special elections shall be distributed to the qualified electors by the City Clerk by mail with return postage prepaid, or by personal service.
(4) Pursuant to applicable sections of the California Elections Code governing the conduct of mail ballot elections of cities, and specifically Division 4 (commencing with §4000 of the California Elections Code with respect to elections conducted by mail), the City Clerk shall mail (or deliver) to each qualified elector an official ballot in a form specified by the City Council in the resolutions calling and consolidating the consolidated special elections, and shall also mail to all such qualified electors a ballot pamphlet and instructions to voter, 2085
6 including a sample ballot identical in form to the official ballot but identified as a sample ballot, an impartial analysis by the City Attorney pursuant to Section 9280 of said Code with respect to the ballot propositions contained in the official ballot, arguments and rebuttals, if any, pursuant to Sections 9281 to 9287, inclusive, and 9295 of said Code, a return identification envelope with prepaid postage thereon addressed to the City Clerk for the return of voted official ballots, and a copy of the form of resolution of formation establishing the community facilities district, adopted by the City Council pursuant to Section 53325.1 of the Act, and the exhibits thereto; provided, however, that such analysis and arguments may be waived with the unanimous consent of all the landowners, and in such event a finding regarding such waivers shall be made in the resolution adopted by the City Council calling the consolidated special elections. (5) The official ballot to be mailed (or delivered) by the City Clerk or her designee to each landowner-voter shall have printed or typed thereon the name of the landowner-voter and the number of votes to be voted by the landownervoter and shall have appended to it a certification to be signed by the person voting the official ballot which shall certify that the person signing the certification is the person who voted the official ballot, and if the landowner-voter is other than a natural person, that he or she is an officer of or other person affiliated with the landowner-voter entitled to vote such official ballot, that he or she has been authorized to vote such official ballot on behalf of the landowner-voter, that in voting such official ballot it was his or her intent, as well as the intent of the landowner-voter, to vote all votes to which the landowner-voter is entitled based on its land ownership on the propositions set forth in the official ballot as marked thereon in the voting square opposite each such proposition, and further certifying as to the acreage of the landowner-voter's land ownership within the Community Facilities District.
(6) The return identification envelope delivered by the City Clerk or her designee to each landowner-voter shall have printed or typed thereon the following: (i) the name of the landowner, (ii) the address of the landowner, (iii) a declaration under penalty of perjury stating that the voter is the landowner or the authorized representative of the landowner entitled to vote the enclosed ballot and is the person whose name appears on the identification envelope, (iv) the printed name and signature of the voter, (v) the address of the voter, (vi) the date of signing and place of execution of said declaration, and (vii) a notice that the envelope contains an official ballot and is to be opened only by the City Clerk. (7) The instruction to voter form to be mailed by the City Clerk or her designee to the landowner-voters shall inform them that the official ballots shall be returned to the City Clerk properly voted as provided thereon and with the certification appended thereto properly completed and signed in the sealed return identification envelope with the certification thereon completed and signed and all other information to be inserted thereon properly inserted by no later than 7:00 p.m. on the date of the election.
2086
7 (8) Upon receipt of the return identification envelopes which are returned prior to the voting deadline on the date of the elections, the City Clerk shall canvass the votes cast in the consolidated special elections, and shall file a statement with the City Council as to the results of such canvass and the election on each proposition set forth in the official ballot.

The procedures set forth in this section for conducting the consolidated special elections, if they are held, may be modified as the City Council may determine to be necessary or desirable by a resolution subsequently adopted by the City Council. 2087
8 APPROVED AND ADOPTED this 13th day of September 2022.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney
I, Germaine McCellan 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 of Fontana 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
2088
1 16498.40104\32736757.1
RESOLUTION NO. 2022-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

FONTANA CALLING A SPECIAL ELECTION AND

SUBMITTING TO THE QUALIFIED ELECTOR OF
COMMUNITY FACILITIES DISTRICT NO. 110M OF THE

CITY OF FONTANA, COUNTY OF SAN BERNARDINO,

STATE OF CALIFORNIA A PROPOSITION WITH

RESPECT TO THE ANNUAL LEVY OF SPECIAL TAXES

WITHIN SAID COMMUNITY FACILITIES DISTRICT TO

PAY THE COSTS OF CERTAIN SERVICES TO BE

PROVIDED BY THE COMMUNITY FACILITIES DISTRICT
AND A PROPOSITION WITH RESPECT TO THE ESTABLISHMENT OF AN APPROPRIATIONS LIMIT FOR SAID

COMMUNITY FACILITIES DISTRICT
WHEREAS, pursuant to Section 53325.1 of the California Government Code, the City Council (the "City Council") of the City of Fontana ("the City") has adopted Resolution No. 2022-___, the resolution of formation of Community Facilities District No. 110M of the City of Fontana, County of San Bernardino, State of California (the "Community Facilities District"), establishing the Community Facilities District and the boundaries thereof; and
WHEREAS, pursuant to Section 53326 of said Code, it is necessary that the City Council submit to the voters of the Community Facilities District the annual levy of special taxes on the property within the Community Facilities District to pay the costs of providing services described in Resolution No. 2022-___ the resolution of formation of the Community Facilities District; and
WHEREAS, pursuant to Section 53325.7 of said Code, the City Council may also submit to the voters of the Community Facilities District a proposition for the establishment of an appropriations limit for the Community Facilities District; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fontana as follows:

Section 1. Findings. The City Council finds that: (i) the foregoing recitals are correct; (ii) less than 12 persons have been registered to vote within the territory of the Community Facilities District during the 90 days preceding the close of the protest hearing on September 13, 2022; (iii) pursuant to Section 53326(b) of the California Government Code, as a result of the findings set forth in clause (ii) above, the vote in the special election called by this resolution shall be by the landowners of the Community Facilities District whose property would be subject to the special taxes if they were levied at the time of the election, and each landowner shall have one vote for each acre, or portion thereof, which he or she owns within the Community Facilities District which 2089
2 16498.40104\32736757.1
would be subject to the proposed special taxes if they were levied at the time of the election; (iv) the landowner of the property within the Community Facilities District has by written consent (a) waived the time limits set forth in said Section 53326 for holding the election called by this Resolution, (b) consented to the holding of said election on September 13, 2022, (c) waived notice of the time and date of said election, and (d) waived an impartial analysis by the City Attorney of the City of the ballot propositions pursuant to Section 9280 of the California Elections Code and arguments and rebuttals pursuant to Sections 9281 to 9287, inclusive, and 9295 of said Code; and (v) the City Clerk of the City has consented to the holding of said consolidated elections on September 13, 2022.

Section 2. Call of Election. The City Council hereby calls and schedules a special election for September 13, 2022 on the proposition of the annual levy of special taxes within the Community Facilities District for financing the services to be provided within and of benefit to the Community Facilities District and on the proposition of the establishment of an appropriations limit for the Community Facilities District. The City Council hereby ratifies and approves all prior actions taken by the officers and employees of the City with respect to conducting the special election, including the publication of notices, the mailing of official ballots and the mailing of consent of the landowner to conduct the special election on September 13, 2022 and waiver of notices and impartial analysis.

Section 3. Propositions. The propositions to be submitted to the landownervoter of the Community Facilities District at such special election shall be as follows:

First Proposition
Shall special taxes be levied annually on taxable property within Community Facilities District No. 110M of the City of Fontana, County of San Bernardino, State of California, to pay the costs of services to be provided for a new residential development (Tract 16897), including street lighting, landscaping, park maintenance, detention basins/water quality systems, and open space facilities within and surrounding the area of the Community Facilities District, mailboxes located within the Community Facilities District owned by the City with an estimated useful life of five or more years, and to pay the costs associated with the determination of the amount, levy and collection of the special taxes at the special tax rates and pursuant to the method of apportioning such special taxes set forth in Exhibit "B" to Resolution No. 2022-089 adopted by the City Council of the City of Fontana on July 26, 2022?
2090
3 16498.40104\32736757.1
Second Proposition
Shall an appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, be established for Community Facilities District No. 110M of the City of Fontana, County of San Bernardino, State of California, in the amount of $1,000,000? Section 4. Conduct of Election. Except as otherwise provided in Section 5 hereof, said consolidated elections shall be conducted by the City Clerk of the City pursuant to the provisions of the California Elections Code governing elections of cities, and the provisions of Division 4 (commencing with Section 4000) of said Code, insofar as they may be applicable.

Section 5. Election Procedures. The procedures to be followed in conducting the special elections on (i) the proposition with respect to the levy of special taxes on the land within the Community Facilities District to pay the costs of services to maintain street lighting, landscaping, park maintenance, detention basins/water quality systems, and open space facilities within and surrounding the area of the Community Facilities District, mailboxes located within the Community Facilities District owned by the City with an estimated useful life of five or more years, and the incidental costs related thereto within the area of the Community Facilities District and (ii) the proposition with respect to the establishment of an appropriations limit for the Community Facilities District in the amount of $1,000,000 (the "consolidated special elections") shall be as follows:
(a) Pursuant to Section 53326 of the California Government Code, a ballot for the consolidated special elections shall be distributed to the qualified elector by the City Clerk or her designee by mail or hand delivery with return postage prepaid. (b) Pursuant to applicable sections of the aforementioned provisions of the California Elections Code governing the conduct of mail ballot elections, including in particular Division 4 (commencing with Section 4000) of said Code, the City Clerk or her designee shall mail or hand deliver to the qualified elector an official ballot in the form attached hereto as Exhibit "A", and shall also mail or hand deliver to such qualified electors a ballot pamphlet and instructions to voter, including a sample ballot identical in form to the official ballot but identified as a sample ballot, a return identification envelope with prepaid postage thereon addressed to the City Clerk for the return of voted official ballot, and a copy of Resolution No. 2022-089 and the exhibits thereto. (c) The official ballot to be mailed or hand delivered by the City Clerk or her designee to the landowner-voter shall have printed or typed thereon the name of the landowner-voter and the number of votes to be voted by the landowner-voter and shall have appended to it a certification to be signed by the person voting the official ballot which shall certify that the person signing the certification is the person who voted the official ballot, and if the landowner-voter is other than a natural person, that he or she is an officer of or other person affiliated with the landowner-voter entitled to vote such 2091
4 16498.40104\32736757.1
official ballot, that he or she has been authorized to vote such official ballot on behalf of the landowner-voter, that in voting such official ballot it was his or her intent, as well as the intent of the landowner-voter, to vote all votes to which the landowner-voter is entitled based on its land ownership on the propositions set forth in the official ballot as marked thereon in the voting square opposite each such proposition, and further certifying as to the acreage of the landowner-voter's land ownership within the Community Facilities District. Ballots shall be executed by an owner of the taxable property that is subject to the special taxes of the Community Facilities District, or by a representative of an owner lawfully appointed to represent the owner for the purposes of the election described herein pursuant to Section 53326(b) of the California Government Code.
(d) The return identification envelope delivered by the City Clerk or her designee to the landowner-voter shall have printed or typed thereon the following:
(i) the name of the landowner, (ii) the address of the landowner, (iii) a declaration under penalty of perjury stating that the voter is the landowner or the authorized representative of the landowner entitled to vote the enclosed ballot and is the person whose name appears on the identification envelope, (iv) the printed name and signature of the voter, (v) the address of the voter, (vi) the date of signing and place of execution of said declaration, and (vii) a notice that the envelope contains an official ballot and is to be opened only by the City Clerk.
(e) The information to voter form to be mailed or hand delivered by the City Clerk or her designee to the landowner-voter shall inform them that the official ballot shall be returned to the City Clerk properly voted as provided thereon and with the certification appended thereto properly completed and signed in the sealed return identification envelope with the certification thereon completed and signed and all other information to be inserted thereon properly inserted by 7:00 p.m. on the date of the consolidated special election.
(f) Upon receipt of the return identification envelopes which are returned prior to the voting deadline on the date of the elections, the City Clerk shall canvass the votes cast in the consolidated special elections, and shall file a statement with the City Council after the consolidated special elections as to the results of such canvass and the election on each proposition set forth in the official ballot.

Section 6. Accountability Measures. Pursuant to Section 50075.1 of the California Government Code, the levy of special taxes by the Community Facilities District shall be subject to the following accountability measures:
(a) The special taxes shall be used for the specific purpose of providing for the maintenance of street lights, landscaping, park maintenance, detention basins/water quality systems, and open space facilities within and surrounding the area of the Community Facilities District, mailboxes located within the Community Facilities District owned by the City with an estimated useful life of five or more years, and to pay costs associated with the determination of the amount of and the levy and 2092
5 16498.40104\32736757.1
collection of the special taxes at the special tax rates and pursuant to the method of apportioning such special taxes set forth in Exhibit “B” to Resolution No. 2022-089 adopted by the City Council on July 26, 2022.
(b) The proceeds of the special taxes shall be applied only for the specific purposes identified in subsection (a).
(c) An account or accounts shall be created into which the proceeds of the special taxes shall be deposited.
(d) The City’s Director of Management Services shall file a report with the City Council no later than January 1 of the calendar year beginning after the year in which the special taxes are first levied and annually thereafter, which shall contain the information required by Section 50075.3 of the California Government Code. 2093
6 16498.40104\32736757.1
APPROVED AND ADOPTED this 13th day of September, 2022.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney
I, Germaine Lewis 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 of Fontana 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
2094

RESOLUTION NO. 2022-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

FONTANA DECLARING THE RESULTS OF THE SPECIAL

ELECTION FOR COMMUNITY FACILITIES DISTRICT
NO. 110M OF THE CITY OF FONTANA, COUNTY OF SAN

BERNARDINO, STATE OF CALIFORNIA, ON THE

PROPOSITIONS WITH RESPECT TO (I) THE ANNUAL

LEVY OF SPECIAL TAXES TO PAY THE COSTS OF

CERTAIN SERVICES TO BE PROVIDED BY THE
COMMUNITY FACILITIES DISTRICT AND (II) THE ESTABLISHMENT OF AN APPROPRIATIONS LIMIT WHEREAS, on September 13, 2022, the City Council (the “City Council”) of the City of Fontana (the “City”) adopted Resolution No. 2022-___ calling a special election on the propositions with respect to the annual levy of special taxes on taxable property within Community Facilities District 110M of the City of Fontana, County of San Bernardino, State of California (the “Community Facilities District”) to pay the costs of certain services to be provided by the Community Facilities District and the establishment of an appropriations limit for (the “Community Facilities District”); and WHEREAS, the City Council has received a statement from the City Clerk of the City of Fontana (the “City Clerk”), who pursuant to Resolution No. 2022-___, the resolution calling the election, was authorized to conduct the special election and act as the election official therefor, with respect to the canvass of the ballots returned in and the results of the special election, certifying that more than two-thirds of the votes cast upon the propositions submitted to the voters in the special election were cast in favor of approving all such propositions;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fontana, as follows:

Section 1. Findings. The City Council finds that: (i) there were no persons registered to vote within the boundaries of the Community Facilities District at the time of the close of the protest hearing on September 13, 2022, and pursuant to Section 53326 of the California Government Code (“Section 53326”) the votes in the special election were, therefore, to be by the landowners owning land within the Community Facilities District, with the landowner (the “Property Owner”) having one vote for each acre or portion of an acre of land owned within the Community Facilities District which would have been subject to the special tax if levied at the time of the special election; (ii) pursuant to Section 53326 and Resolution No. 2022-___, the resolution calling the election, the City Clerk or her designee distributed the ballot for the special election to the Property Owner by overnight mail with return postage prepaid; (iii) the Property Owner waived the time limits for holding the special election and the election dates specified in Section 53326, and consented to the calling and holding of the special election on September 13, 2022, (iv) the special election has been properly conducted 2095
Resolution No. 2022-

in accordance with all statutory requirements and the provisions of Resolution No. 2022- ___; (v) pursuant to Section 53326, the Property Owner, which owned approximately

2.98 taxable acres collectively, was entitled to a total of 3 votes; (vi) the ballots was returned to the City Clerk prior to 7:00 p.m. on September 13, 2022, by the Property Owner; (vii) the ballot returned to the City Clerk by the Property Owner voted all votes to which he was entitled in favor of all propositions set forth therein; (viii) more than twothirds of the votes cast in the special election on each such proposition were cast in favor thereof, and pursuant to Sections 53328 of the California Government Code, all such propositions carried; (ix) the City Council, as the legislative body of the Community Facilities District, is therefore authorized to take the necessary action to annually levy special taxes on taxable property within the Community Facilities District in amounts sufficient to pay the costs of services to be provided to the Community Facilities District; and (x) an appropriations limit for the Community Facilities District has been established in the amount of $1,000,000.

Section 2. Declaration of Results. All votes voted in the special election on the propositions with respect to the annual levy of special taxes on taxable property within the Community Facilities District to pay the costs of services to be provided to the Community Facilities District, and the establishment of an appropriations limit in the amount of $1,000,000 for the Community Facilities District were voted in favor thereof, and all such propositions carried.

Section 3. Effect of Elections. The effect of the results of the special election, as specified in Section 2 hereof, is that the City Council, as the legislative body of the Community Facilities District, is authorized to annually levy special taxes on taxable property within the Community Facilities District in an amount sufficient to pay the costs of certain services to be provided to the Community Facilities District at the special tax rates and pursuant to the methodology for determining and apportioning such special taxes which are set forth in Exhibit “B” to Resolution No. 2022-___, the resolution establishing the Community Facilities District, adopted by the City Council on September 13, 2022, and an appropriations limit has been established for the Community Facilities District in the amount of $1,000,000. 2096
Resolution No. 2022-

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 of Fontana 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
2097
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-1688 Agenda Date: 9/13/2022
Agenda #: A. Category: New Business
FROM:

Management Services
SUBJECT:

American Rescue Plan Act Update
RECOMMENDATION:

Approve revisions to the American Rescue Plan Act (ARPA) Expenditure Plan, including the leveraged projects, and authorize staff to move forward with projects.

COUNCIL GOALS:
· Operate in a businesslike manner by improving services through the effective use of technology.
· 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 emphasizing capital formation. · 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 creating and promoting community through people, parks, and programs.

DISCUSSION:

Background
The American Rescue Plan Act (ARPA) was signed into law on March 11, 2021, providing additional relief to address the continued impact of COVID-19 on the economy, public health, state and local governments, individuals, and businesses. ARPA funding of $1.9 trillion provided for $362 billion in flexible fiscal aid to state and local governments in America under the State & Local Fiscal Recovery Funds (SLFRF). The City of Fontana was allocated $50.3 million in ARPA SLFRF funds. The U.S.

Department of the Treasury issued an Interim Final Rule in May 2021, and the Final Rule in January 2022, to implement the Coronavirus State and Local Fiscal Recovery Funds established under ARPA.

Current Plan
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File #: 21-1688 Agenda Date: 9/13/2022
Agenda #: A. Category: New Business
On March 8, 2022, the City Council approved the original ARPA Expenditure Plan (Plan). Since its approval and the fact there were many changes in the eligibility requirements from the Interim Final Rule and the Final Rule, the City determined that it would be prudent to thoroughly evaluate the funding eligibility of the Plan and retained the services of HdL ECONSolutions (HdL). HdL worked with City staff to define the description and scope of each of the projects and then evaluated each project against the SLFRF rules for eligibility, ultimately making recommendations on the eligibility of each project. Additionally, the City Attorney’s office has also reviewed the plan and supports HdL’s recommendations based upon the current information. The original and current Plan by Federal Eligible Use Category is below.

Current ARPA Expenditure Plan
The revisions to the original plan previously approved by Council include the following and results in an unprogrammed available balance of $565,000:

Previous Council Approved Plan Revisions
Project Original Revision Current
After-School Program 815,000 (815,000) - Recruitment and Retention Incentive Program - 250,000 250,000
Total 815,000 (565,000) 250,000
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File #: 21-1688 Agenda Date: 9/13/2022
Agenda #: A. Category: New Business
Project Original Revision Current
After-School Program 815,000 (815,000) - Recruitment and Retention Incentive Program - 250,000 250,000
Total 815,000 (565,000) 250,000
Recommended Plan - Revisions
The Plan revisions in the amount of $142,487 being recommended in this item include the following:

Recommended Plan Revisions
Project Current RevisionRecommended
Employee Retention/Incentive 2,007,221 (807,000) 1,200,221 Public Safety Retention Bonus - Premium Pay - 1,549,486 1,549,486 Sewer and Storm Drain Infrastructure Masterplan 400,000 (24,870) 375,130 Sidewalk Rehabilitation 600,000 (600,000) - Update Master Infrastructure Plans 400,000 24,870 424,870 Total 6,407,221 142,487 6,549,708
Plan revisions being proposed with this item include adjustments to five projects as detailed below:
· Employee Retention/Incentive - a decrease of $807,000 to recategorize the Public Safety Retention Bonus from the Federal Use Eligible Use Category of Public Health & Economic Response to Premium Pay for SLFRF reporting purposes.
· Public Safety Retention Bonus - Premium Pay - an increase of $1,549,486 to recategorize the Public Safety Retention Bonus from the Federal Use Eligible Use Category of Public Health & Economic Response to Premium Pay for SLFRF reporting purposes ($807,000) and to reflect the final negotiated bonus amounts ($742,487).
· Sewer and Storm Drain Infrastructure Masterplan - a decrease of $24,870 due to costs being lower than anticipated. Funds are requested to be transferred to Master Infrastructure Plan Update project.
· Sidewalk Rehabilitation - a decrease of $600,000 as a result of HdL’s review, it was determined that this project was not an eligible ARPA expense. · Update Master Infrastructure Plans - an increase of $24,870 due to costs being higher than anticipated.

Recommended Plan - Leveraged Projects
As indicated previously, the current Plan includes $18.0 million of projects in the Revenue Loss category. It is recommended that the City take the standard allowance of $10.0 million which results in the Revenue Loss category being over appropriated by $8.0 million. As such, it is recommended that Council approve the Leveraged Projects below:

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File #: 21-1688 Agenda Date: 9/13/2022
Agenda #: A. Category: New Business
Recommended Plan Leveraged Projects
· Support Government Employment - Hiring Above the Pre-Pandemic Baseline ($5,872,530):

Per the Treasury Final Rule, the City may hire above the pre-pandemic baseline and use SLFRF funds to pay for payroll and covered benefits associated with the recipient increasing its number of budgeted FTEs up to 7.5 percent above its pre-pandemic baseline. All costs associated with new positions approved by Council can be considered for this leveraged project, including by not limited to the new Police Department positions added in 2021-22 and 2022-23. · To Be Determined ($2,127,470): For the required balance of leveraged projects, existing/budgeted ARPA eligible discretionary general fund expenditures are being considered including capital expenses and personnel related expenses in the premium pay and retention categories and are still being identified and analyzed. It is recommended that Council authorize additional leveraged projects once eligibility is determined to finalize the expenditure plan and ensure accurate reporting.

Leveraging these projects essentially results in supplanting the over appropriated Revenue Loss category expenses with ARPA eligible discretionary general fund expenditures. These projects will be reported out as ARPA expenditures in lieu of helicopter purchase and pavement rehabilitation.

Recommended Plan Summary
The Plan below reflects all changes discussed above:

Recommended Plan Summary
Federal Eligible Use Category Current RevisionRecommended 1) Public Health & Economic Response 20,247,113 4,465,530 24,712,643 2) Revenue Loss 18,000,000 (8,000,000) 10,000,000
3) Uniform Administrative Requirement, Cost
Principles, and Audit Requirements for Federal
Awards (2 CFR Part 200)
250,000 - 250,000
4) Water, Sewer, and Broadband Infrastructure 11,195,000 - 11,195,000 5) Premium Pay - 1,549,486 1,549,486
To Be Determined - 2,127,470 2,127,470
Total Programmed 49,692,113 142,487 49,834,600 A
ilbl
565000 422513
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File #: 21-1688 Agenda Date: 9/13/2022
Agenda #: A. Category: New Business
Federal Eligible Use Category Current RevisionRecommended 1) Public Health & Economic Response 20,247,113 4,465,530 24,712,643 2) Revenue Loss 18,000,000 (8,000,000) 10,000,000
3) Uniform Administrative Requirement, Cost
Principles, and Audit Requirements for Federal
Awards (2 CFR Part 200)
250,000 - 250,000
4) Water, Sewer, and Broadband Infrastructure 11,195,000 - 11,195,000 5) Premium Pay - 1,549,486 1,549,486
To Be Determined - 2,127,470 2,127,470
Total Programmed 49,692,113 142,487 49,834,600 Available 565,000 422,513 Total Allocation 50,257,113 50,257,113
Plan Update
As of August 31, 2022, all Plan projects have been reviewed and based upon the scope of each project, deemed eligible by HdL and the City Attorney except for the Sidewalk Rehabilitation project, as it didn’t meet the required criteria in the Treasury Final Rule. As companion items on the September 13, 2022, agenda, three projects are being presented to Council for consideration.

Attachment B provides a brief update on each project.

FISCAL IMPACT:

There is no net fiscal impact associated with the approval of this item. Approval of this item reallocates ARPA funding within the expenditure plan as detailed in Attachment A and results in an available unappropriated balance of $422,514.

MOTION:

Adopt staff recommendation.

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ATTACHMENT A
Project
Federal Eligible Use Category Current Plan Requested
Adjustment Proposed ARPA
NEW: Leveraged Project: Support Government Employment (hiring above the pre-pandemic baseline)
Public Health & Economic Response - 5,872,530 5,872,530 NEW: Leveraged Project: To Be Determined To Be Determined - 2,127,470 2,127,470 Administrative Costs Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (2 CFR
Part 200)
250,000 - 250,000
Cypress Storm Drain Project Water, Sewer, and Broadband Infrastructure 5,840,000 - 5,840,000 Data Security & Threat Detection Water, Sewer, and Broadband Infrastructure 250,000 - 250,000 REVISED: Employee Retention/Incentive Public Health & Economic Response 2,007,221 (807,000) 1,200,221 Endpoint Detection & Response Solution Water, Sewer, and Broadband Infrastructure 75,000 - 75,000 Fiber to City facilities Water, Sewer, and Broadband Infrastructure 2,000,000 - 2,000,000 REVISED: Fontana Forward Grant Program
(previously Small Business Loan/Grant Program)
Public Health & Economic Response 3,000,000 - 3,000,000 REVISED: Helicopter Purchase General Fund Leveraged Project 3,000,000 (3,000,000) - Homelessness Prevention Resources and Care Center Public Health & Economic Response 8,000,000 - 8,000,000 Metrolink Station Security Cameras Public Health & Economic Response 60,000 - 60,000 Network Detection & Response Solution Water, Sewer, and Broadband Infrastructure 75,000 - 75,000 Park Improvements Public Health & Economic Response 4,079,892 - 4,079,892 Parking Structure Revenue Loss 10,000,000 - 10,000,000
REVISED: Pavement Rehabilitation General Fund Leveraged Project 5,000,000 (5,000,000) - REVISED: Public Safety Retention Bonus - Premium Pay Premium Pay - 1,549,486 1,549,486 Septic to Sewer Water, Sewer, and Broadband Infrastructure 2,000,000 - 2,000,000 REVISED: Sewer and Storm Drain Infrastructure Masterplan Water, Sewer, and Broadband Infrastructure 400,000 (24,870) 375,130 REVISED: Sidewalk Rehabilitation Public Health & Economic Response 600,000 (600,000) - Supervisory Control and Data Acquisition (SCADA) - Sewer Water, Sewer, and Broadband Infrastructure 155,000 - 155,000 REVISED:Update Master Infrastructure Plans Water, Sewer, and Broadband Infrastructure 400,000 24,870 424,870 Ventilation Upgrade for City Facilities Public Health & Economic Response 2,500,000 - 2,500,000 Total 49,692,113 142,487 49,834,600
Total Unappropriated Available Balance 565,000 422,513
Total Allocation 50,257,113 50,257,113

CITY OF FONTANA

AMERICAN RESCUE PLAN ACT (ARPA) EXPENDITURE PLAN UPDATE SEPTEMBER 13, 2022
2103

ATTACHMENT B
Project Recommended
Amount
Federal Use Category Description Est. Project Start
Date
Est. Project End
Date
Project Update
Administrative Costs 250,000 Uniform Administrative Requirement, Cost Principles, and Audit Requirements for
Federal Awards (2 CFR Part 200)
To cover the administrative direct and indirect costs associated with the ARPA program.
2021-22 12/31/2024 Administrative costs to cover the implementation and oversight of the City's ARPA Expenditure Plan. Costs include but are not limited to City staff time, consultant services including HdL, and City Attorney costs.

Cypress Storm Drain Project 5,840,000 Water, Sewer, and Broadband Infrastructure
Construction of a storm drain facility along Foothill Blvd between Sierra Ave and Cypress Ave and Cypress Ave between Foothill Blvd and Orange Way to connect to the newly constructed West Fontana Channel along the Metrolink railroad track. The project also includes landscaped median on Foothill Blvd, reconstruction of AC pavement, and ADA compliant sidewalks and curb ramps upgrades.

In Progress 6/30/2024 The project is currently in utility coordination phase. The project will be constructed in two phases:
- Phase 1 will be on Foothill Blvd between Sierra Ave and Cypress Ave, and on Cypress Ave between Foothill Blvd and Orange Way ($14.0 million) - Phase 2 will be on Cypress Ave between Miller Ave and Foothill Blvd and on Juniper Ave between Miller Ave and Foothill Blvd ($6.5 million) ARPA funds will be used towards the first phase. Phase 2 will be constructed once funding is identified in the future. The total project cost for Phase 1 is funded by ARPA, Local Measure I, Storm Drain, and Landscape.

Data Security & Threat Detection 250,000 Water, Sewer, and Broadband Infrastructure
A software suite that integrates with our servers and Office 365 to detect, report, and alert on permissions and activity to help detect unauthorized access.
7/1/2022 8/25/2022 Varonis DatAdvantage software suite was deployed and is currently in use to monitor the City's file servers and Office 365 environment. Approved via consent calendar during the June 28, 2022 City Council meeting. PO #22300174.

Employee Retention (Premium Pay)/Incentive 2,749,707 Public Health & Economic Response Project includes public safety retention bonuses, recruitment and retention bonuses for part-time personnel, and a citywide vaccine bonus.
2022-23 2023-24 Project includes public safety retention bonuses, recruitment and retention bonuses for part-time personnel, and a citywide vaccine bonus.
- Premium Pay/Retention Bonus ($1,549,486)
- Citywide Vaccine Bonus, 40 hours per full-time employee ($950,221) - Part-time Recruitment and Retention ($250,000)
Endpoint Detection & Response Solution 75,000 Water, Sewer, and Broadband Infrastructure
A technology solution that would help detect, alert, and potentially respond automatically to anomalous or malicious network activity on the City's network.

In Progress Combined with Network Detection and Response solution. Purchased Arctic Wolf Managed Detection and Response (MDR) solution to monitor network traffic to alert on malicious or suspicious activity. Approved via consent calendar during the June 14, 2022 City Council Meeting. PO # 22300235.

Fiber to City facilities 2,000,000 Water, Sewer, and Broadband Infrastructure
This project would run City owned fiber to our 6 facilities with leased lines, 1police substation with a leased line, 4 of our larger parks that currently have no connectivity, and 1 police substation that currently has no connectivity. This would help facilitate the use of technology at the locations (Wi-Fi, security cameras, irrigation systems, etc.).
1/1/2023 6/1/2023 The IT and Engineering departments are currently working on the bid specifications.

Sites to be connected are: Palm Court Substation, Southridge Substation, Cypress Center, Don Day Center, Heritage Center, Jack Bulik Center, Martin Tudor Park, Mary Vagle Nature Center, Bill Martin Park, Central City Park, Ralph M. Lewis Sports Complex, South Fontana Park, and Veteran's Park.

CITY OF FONTANA

AMERICAN RESCUE PLAN ACT (ARPA) EXPENDITURE PLAN UPDATE DETAIL SEPTEMBER 13, 2022
2104

ATTACHMENT B
Project Recommended
Amount
Federal Use Category Description Est. Project Start
Date
Est. Project End
Date
Project Update

CITY OF FONTANA

AMERICAN RESCUE PLAN ACT (ARPA) EXPENDITURE PLAN UPDATE DETAIL SEPTEMBER 13, 2022
Fontana Forward Grant Program
(previously Small Business Loan/Grant
Program)
3,000,000 Public Health & Economic Response Loans or Grants to Mitigate Financial Hardships. Such as by Supporting Payroll and Benefits in the amounts of $5,000 to $250,000.

REVISED
Encourage business development by lifting the City’s economy through two programs benefiting the city’s most impacted industry sectors: small businesses and restaurants.
- Fontana Grant Program (Fontana Foodie) will award registered households $100 gift card to use at any local restaurant - Fontana Forward Business Grant will provide up to $20,000 per qualifying small business for business development services including business plan development, website design, marketing, branding services, lead generation, human resource development, business capital preparation
10/1/2022 12/31/2025 Project details are being developed and will be presented to Council for consideration in September 2022.

Helicopter Purchase - Leveraged Project
Previously Revenue Loss
This request is for an A-Star helicopter which will allow for a more available fleet and readied aircraft while one or more are down for scheduled or unscheduled maintenance. The A-Star can fly in windy conditions and eliminate the current loss of approximately 30% of hours due to inclement weather. Additionally, the upgraded program could provide for the ability to support an officer down rescue.

The increased functionality of the A-Star will allow for integrated maps to support in pursuits and tactical situations; recording capabilities to assist in evidence, training, and civil litigations; the ability to fly at higher altitudes to assist in covert surveillances to aid the Narcotics Unit, Fugitive Apprehension Team, and other units in the special operations division. Additionally, the A-Star will also provide air support to the Fire District including fire patrol and real-time tactical assessments improving response times and decreasing loss of property.
5/27/2022 7/30/2027 The AirBus Helicopter was purchased and delivered in May 2022 as well as the Chopper Stopper. The balance of the expenditures are outstanding and will be presented to Council for approval in September 2022. Project details include the following:
- 2011 Air Bus AS350B2 ($1,670,125)
- Chopper Stopper ($22,760)
- 5 Year Impound Fees ($625,000)
- 12 Year Maintenance ($225,000)
- FY 21/22 Prorated Premium Insurance ($3,962)
- FY 22/23 Insurance ($43,557)
- Cargo Hook Kit/Bambi Bucket ($100,000)
Additionally, there are on-going associated costs related to increased fuel, maintenance, storage, flight hours, and insurance premiums that will be requested in the first quarter.

Homelessness Prevention Resources and
Care Center
8,000,000 Public Health & Economic Response The design and construction of a homeless shelter to serve the homeless population of the City.
9/1/2022 11/1/2024 Additional funding of $4,750,000 is required and potential sources include:
- Homeless Prevention, Resource, and Care Center $750,000 -4,750,000 - Courtplace Housing Development $4,000,000
- Pacific Electric Trail Improvement Project $750,000
Project will provide transitional housing and wrap around services (24 hour managed care) for up to 30 chronically homeless individuals as well as housing and appropriate support services for up to 16 families
2105

ATTACHMENT B
Project Recommended
Amount
Federal Use Category Description Est. Project Start
Date
Est. Project End
Date
Project Update

CITY OF FONTANA

AMERICAN RESCUE PLAN ACT (ARPA) EXPENDITURE PLAN UPDATE DETAIL SEPTEMBER 13, 2022
Metrolink Station Security Cameras 60,000 Public Health & Economic Response Installation of 8 security cameras at the Fontana Metrolink station to help keep the area more secure. The station currently has no operational cameras, nor any City owned cameras.
4/1/2022 10/1/2022 Project is underway. Currently waiting on camera delivery which is delayed due to supply chain issues. As much work as possible is being done, such as electrical work and network cabling, so that once the cameras arrive, installation will be completed as quick as possible. PO # 22200836.

Network Detection & Response Solution 75,000 Water, Sewer, and Broadband Infrastructure
A technology solution that would help detect, alert, and respond to unauthorized activity on the staff computers throughout the City.

This would fill the gap between what anti-virus software will detect and our network defenses.
7/1/2022 9/1/2022 Combined with the Endpoint Detection and Response project. Purchased Arctic Wolf Managed Detection and Response (MDR) solution to monitor network traffic to alert on malicious or suspicious activity. Approved via consent calendar during the June 14, 2022 City Council Meeting. PO # 22300235.

Park Improvements 4,079,892 Public Health & Economic Response Various projects needed to replace and/or upgrade aging infrastructure in our City's parks.
10/1/2022 7/1/2023 Improvements are being recommended at the following 10 parks:
- Veteran's Park (installation of ballfield dugout shade structures) - Veteran's West Park (installation of new ballfield backstops, ballfield dugout shade structures, shade structures for spectator areas)
- Miller Park (installation of new park gazebo)
- Seville Park (installation of new ADA Inclusive playground structure) - Fernandez Park (installation of playground shade structure and ADA inclusive equipment)
- Bill Martin Park (installation of new ballfield backstops, ballfield dugout shade structures, and shade structures for spectator areas)
- Northgate Park (installation of playground shade structure and ADA inclusive playground equipment)
- North Tamarind Park (installation of new jumbo park gazebo for large groups, a new ADA inclusive playground structures, and rubber playground safety surfacing) - Lemon Pepper Park (installation of playground shade structure) - Carmela Park (installation of playground shade structure) Parking Structure 10,000,000 Revenue Loss The project will construct a new parking structure within the parking lot of the Fontana HR Office.

In progress 12/31/2023 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 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.

Pavement Rehabilitation - Leveraged Project
Previously Revenue Loss
For annual work related to the City's Pavement Management Plan. 3/1/2023 8/30/2024 Project is currently in the planning stage and a comprehensive project list is being developed for Council’s consideration.

Septic to Sewer 2,000,000 Water, Sewer, and Broadband
Infrastructure
The project will provide septic to sewer conversion in a disadvantaged communities (DAC) area in the city.
9/30/2022 6/30/2024 A potential coop project between the City and SB County. The county may participate around $10M construction cost using their ARPA funding. The total project cost can be as much as $12M, while the City's share will be $2M for design. The project details (scope and location) to be determined soon.

Sewer and Storm Drain Infrastructure
Masterplan
375,130 Water, Sewer, and Broadband
Infrastructure
For consultant provided services in order to develop a masterplan document to forecast future infrastructure needs.
9/30/2022 9/30/2023 Contract for services is being presented to Council on 9/13/22.

Sidewalk Rehabilitation - Public Health & Economic Response For annual work related to the City's Sidewalk Rehabilitation Project.

N/A N/A Project details were reviewed by HdL and it was determined that sidewalk rehabilitation is not an ARPA eligible expense.
2106

ATTACHMENT B
Project Recommended
Amount
Federal Use Category Description Est. Project Start
Date
Est. Project End
Date
Project Update

CITY OF FONTANA

AMERICAN RESCUE PLAN ACT (ARPA) EXPENDITURE PLAN UPDATE DETAIL SEPTEMBER 13, 2022
Supervisory Control and Data Acquisition
(SCADA) - Sewer
155,000 Water, Sewer, and Broadband
Infrastructure
Purchase and installation of a Supervisory Control and Data Acquisition (SCADA) system to monitor the City's sewer lift/pump station network.
7/11/2022 12/31/2022 Project is currently under construction and includes a total of 7 lift stations. The construction contract was awarded to Xylem Water Solutions. Six lift stations have been completed to date with one lift station left to complete. This technology enables users to monitor the pump status and provide information to users remotely and in real time, delivering reports electronically. Due to additional scope added to the project, the updated cost is currently at $220,000. The added cost will be funded by other funds.

Update Master Infrastructure Plans 424,870 Water, Sewer, and Broadband Infrastructure
Storm Drain and Sewer master plans update. With completed projects and various changes since the last update, the master plans are due for an update.
9/30/2022 9/30/2023 Contract for services is being presented to Council on 9/13/22. Contract is being funding by ARPA and $53,632 from the Engineering Sewer Improvement Admin fund Ventilation Upgrade for City Facilities 2,500,000 Public Health & Economic Response Upgrades to existing HVAC equipment to provide better protection to employees from Covid-19.
10/1/2022 12/31/2022 Project went out to bid and closed August 23rd. Bid responses are being evaluated by Purchasing and contract will be presented to council for consideration in September.

Roughly 650 Portable Air Purifiers and Air Monitors will be installed throughout the interior of 18 City owned facilities.
2107