Fontana City Council
April 9, 2024

Tuesday, April 9, 2024
2:00 PM
City of Fontana
8353 Sierra Avenue
Fontana, CA 92335
Regular Agenda
Ord. No. 1943 Reso. No. 2024-012
Grover W. Taylor Council Chambers
City Council Meeting
Acquanetta Warren - Mayor
Peter A. Garcia - Mayor Pro Tem
John B. Roberts - Council Member
Jesus "Jesse" Sandoval - Council Member
Phillip Cothran - Council Member
Germaine Key - City Clerk
Janet Koehler-Brooks, City Treasurer
1 City Council Meeting Regular Agenda April 9, 2024
Welcome to a meeting of the Fontana City Council.

Welcome to a meeting of the Fontana City Council. Meetings are held at the Grover W. Taylor Council Chambers 8353 Sierra Avenue Fontana, CA 92335. To address the Council, please fill out a card located at the entrance to the right indicating your desire to speak on either a specific agenda item or under Public Communications and give it to the City Clerk. Your name will be called when it is your turn to speak. In compliance with Americans with Disabilities Act of 1990 (42 USC § 12132), the Council Chambers is wheelchair accessible, and a portable microphone is available. Upon request, this agenda will be made available in appropriate alternative forms to persons with disabilities, as required by Section 12132 of the Americans with Disabilities Act of 1990. Any person with a disability who requires accommodation to participate in a meeting should direct such a request to the City Clerk’s Office at (909) 350-7602 at least 48 hours before the meeting, if possible. Any public record, relating to an open session agenda item, that is distributed within 72 hours prior to the meeting is available for public inspection at the City Clerk’s Office.

Para traducción en Español, comuniquese con la oficina,“City Clerk” al (909) 350-7602.

The City of Fontana is committed to ensuring a safe and secure environment for its residents to engage with the government. No oversized bags or backpacks (size limit of 14”x14”x6”) will be allowed inside the Council Chambers. All bags are subject to search. Face masks are prohibited in the Council Chambers, but clear masks will be provided upon request to accommodate individuals with medical needs, ensuring their safety and well-being. Before entering the Council Chambers, you may be subject to a metal detector screening. The City Manager retains the discretion to grant any exemptions. Fontana aims to provide safe buildings for our community members, employees, and visitors. 2:00 P.M. CALL TO ORDER/ROLL CALL:

A. Call To Order/Roll Call:

INVOCATION/PLEDGE OF ALLEGIANCE:

A. Invocation/Pledge of Allegiance:

SPECIAL PRESENTATIONS:

A. Special Presentations
A. 1. Mayor Warren and City Council to recognize Officers Derrick Tamanaha & Records Supervisor Vanessa
Hernandez and Annette Logan as December 2023
Employees of the Month/ Employees of the Year (Chief
Michael Dorsey to present).

2. Mayor Warren and City Council to recognize, Plans
Examiner I, Lauren Reynosa, as 2024 Building and Safety 21-2927

2 City Council Meeting Regular Agenda April 9, 2024
Employee of the Year (Building and Safety Director Jeffrey Baughman to present).

PUBLIC COMMUNICATIONS:

This is an opportunity for members of the public to address the City Council for up to three (3) minutes total on items either on the Agenda or items not on the Agenda, but within the City Council's jurisdiction. Note that Public Hearing items have individual and specific public input opportunities during the public hearing and testimony on those items will only be taken during the public hearing. The Council is prohibited by law from discussing or taking immediate action on non-agendized items. The Mayor and City Council reserve the right to adjust this time limit based on the number of speakers who wish to address the Mayor and City Council .

A. Public Communications
CONSENT CALENDAR:

All matters listed under CONSENT CALENDAR will be enacted by one motion in the form listed below. There will be no separate discussion on these items prior to the time Council votes on them, unless a member of the Council requests a specific item be removed from the Consent Calendar for discussion.

Approve Consent Calendar Items as recommended by staff.

A. Approval of Minutes 21-2919
Approve the minutes of the March 26, 2024, Regular City Council Meeting.

Attachments: City Council Meeting Minutes 03-26-2024.pdf B. Adoption of Ordinance No. 1942 (Second Reading) 21-2931 Adopt Ordinance No. 1942 on Second Reading, an Ordinance of the City Council of the City of Fontana, amending Article III to Chapter 7 of Fontana Municipal Code Regarding Electronic and Paper Methods of Filing Campaign Disclosure Statements.

Attachments: Ord 1942.docx
C. Award Bid for Pool Maintenance Services (PW-24-144-SP) 21-2910

1. Award bid and authorize the City Manager to execute a contract with Service First of Santa Ana, CA for City-Wide Pool Maintenance Services for two (2) years with three (3) one-year extension in the amount of $580,859 annually.

2. Approve and authorize the City Manager to execute any future contract amendments to the contract with Service First for City-Wide Pool Maintenance Services.

3 City Council Meeting Regular Agenda April 9, 2024
Project Report.pdf
Proposal rev.pdf
Ranking Score.pdf
Attachments:

D. Award a Construction Contract for the McDermott Soccer Field Iron Fencing Removal and Installation Project
(PW-24-139-CC)
21-2916
Award construction bid and authorize the City Manager to execute a construction contract with Dash Construction Company, Inc. for the McDermott Soccer Field Iron Fencing Removal and Installation Project (PW-24-139-CC) in the amount of $172,400.00 and authorize 10% contingency in the amount of $17,240.00.

McDermott Fencing.pdf
Summary Bid Results.pdf
Dash Construction Company, Inc.'s Bid - PW-24-139-CC.pdf Attachments:

E. Approve an Agreement with the Inland Empire Utilities Agency, Speedway SBC Development, LLC, and San
Bernardino County for Wastewater Services for Speedway
SBC Development, LLC
21-2917
Approve and authorize the City Manager to execute an agreement with the Inland Empire Utilities Agency (“IEUA”), Speedway SBC Development, LLC, and San Bernardino County (“County”) for wastewater services for Speedway SBC Development, LLC.

Final Sewer Agreement with IEUA_County_Speedway
(3-1-24).pdf
Wastewater Connection Location.pdf
Project Location.pdf
Attachments:

F. Police Department Monthly Information Update 21-2918 Accept the Police Department monthly information update for February 2024.

Attachments: Feburary 2024 Report for City Council Rev.pptx G. Resolution of Intent to form Community Facilities District No. 113 (The Gardens Phase 2).
21-2925

1. Adopt Resolution No. 2024-012, of the City Council of the City of Fontana of Intention to Establish a Community Facilities District and to Authorize the Levy of Special Taxes.

2. Adopt Resolution No. 2024-013, of the City Council of the City of Fontana to Incur Bonded Indebtedness of the Proposed City of Fontana Community Facilities District No. 113 (The Gardens Phase Two).

4 City Council Meeting Regular Agenda April 9, 2024
Resolution of Intent
Reso Declaring Necessity To Incur Bonded Indebtedness
Boundary Map
Attachments:

H. Resolution of Intent to Form Community Facilities District No. 114M (Tract 20512)
21-2928

1. Adopt Resolution No. 2024-014, declaring the intention of the City Council of the City of Fontana to form the City of Fontana Community Facilities District No. 114M.

Resolution of Intent
Proposed Calendar of Events
Consent and Waiver
Attachments:

I. Approve Change Orders to the Equipment Purchase
Agreement (SP-71-IT-23) for Stage RED Theater’s Audio
Visual System Update
21-2932

1. Approve and authorize the City Manager to execute Change Order No. 1, 2 and 3 to the Equipment Purchase Agreement (SP-71-IT-23) with Matrix Audio Visual Designs, Inc. in the amount of $131,829.55 for a total contract of $1,067,013.42 for the Stage Red audio visual system upgrades.

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

MatrixAV Scope - CO 1.pdf
MatrixAV Scope - CO 2.pdf
MatrixAV Scope - CO 3.pdf
MatrixAV Agreement SP-71-IT-23 2_9_2023.pdf
Attachments:

J. FY 2022 Emergency Management Performance Grant
Program Award (EMPG)
21-2934

1. Accept the FY 2022 Emergency Management Performance Grant in the amount of $39,853.

2. Authorize the Emergency Services Coordinator to sign all related grant documents including extensions or modifications for the grant; and expend funds as outlined in the grant agreement.

3. Approve the City’s in-kind match of $39,853.

4. Approve to increase revenues and appropriation in the amount of Emergency Management Performance Grant to fund #301.

5 City Council Meeting Regular Agenda April 9, 2024
FY22 EMPG Project Approval Notification Letter.pdf
FY22 EMPG Fontana_Project Leger.pdf
Attachments:

K. Fundraiser Event Approval 21-2937
Council Consider Approval of Fundraising Event.

L. Award a Contract for the Interior Renovation for Stage RED 21-2942

1. Award bid and authorize the City Manager to execute a lump sum construction contract with Final Touch Construction for the Stage Red Interior remodel 2A (Bid No. DE-24-25-SB) in an amount not to exceed $1,575,000.

2. Approve an authorize the City Manager to execute all non-material contract amendments on behalf of the City of Fontana for the renovation of Stage RED.

Final Touch Bidder Detail.pdf
StageRED Interior Remodel Bid Specs Pkg
(DE-24-25-SB).pdf
Bid Results.pdf
Attachments:

PUBLIC HEARINGS:

To speak on Public Hearing Items, submit comments via e-mail at [email protected]. In the subject of your e-mail please indicate whether you are in favor or opposition of the item. Comments must be received no later than 12:00 P.M. on the day of the meeting. Comments of no more than three (3) minutes will be read into the record at the appropriate time during the meeting. If you challenge in court any action taken concerning a Public Hearing item, you may be limited to raising only those issues you or someone else raised at the Public Hearing described in this notice or in written correspondence delivered to the City at, or prior to, the Public Hearing.

All Public Hearings will be conducted following this format:
(a) hearing opened (e) oral - favor
(b) written communication (f) oral - opposition
(c) council/staff comments (g) hearing closed
(d) applicant comments (applicant not limited to 5 minutes) A. First Combined General Plan Amendments and Projects for the 1st General Plan Cycle of 2024; Part No. 1 - Monte Vista Residential Project and associated Mitigated Negative
Declaration, Part No. 2 - Fontana Business Center and
associated Mitigated Negative Declaration, and Part No. 3 - Citrus and Boyle Industrial Commerce Center and
21-2864

6 City Council Meeting Regular Agenda April 9, 2024
associated Mitigated Negative Declaration.

Part No. 1 - Monte Vista Residential Project
Master Case No. 20-073: General Plan Amendment No. 20-015, Zoning District Map Amendment No. 20-015, Conditional Use Permit No. 22-013, Tentative Tract Map No. 20-006 (TTM No. 20358), and Design Review No. 20-028 for property comprised of APNs: 0233-122-28, -29, -60, -63 Amendment of the subject site’s General Plan land use designation from Single-Family Residential (R-SF) to Medium Density Residential (R-M), amendment of the Zoning District Map from Single-Family Residential (R-1) to Medium Density Residential (R-2) , a Conditional Use permit to establish the minimum requirements and specific site development standards under a Planned Unit Development for a 53-lot single- family residential project, a Tentative Tract Map to subdivide four (4) parcels for the development of a 53-lot subdivision, and Design Review for the site and architectural review of a new 53-lot single-family detached residential project within a site comprised of approximately

8.8 acres, pursuant to a Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program.
1a) Adopt Resolution No. 2024-015, (Part No. 1 of General Plan Amendment Cycle No. 1 of 2024,) a Resolution of the City Council of the City of Fontana adopting a Mitigated Negative Declaration, approving a Mitigation Monitoring and Reporting Program pursuant to the California Environmental Quality Act (CEQA) and approving General Plan Amendment (GPA) No. 20-015 (Part No. 1 of General Plan Amendment Cycle No. 1 of 2024) amending Exhibit 15.8 of General Plan Chapter 15 (Land Use, Zoning and Urban Design) to change the land use designation from Single-Family Residential (R-SF) to Medium Density Residential (R-M) for APNs:
0233-122-28, -29, -60 and -63 totaling approximately 8.8 acres located between Poplar Avenue and Catawba Avenue, south of Orchid Avenue, and approving Conditional Use Permit No. 22-013 to establish a Planned Unit Development, Tentative Tract Map No. 20-006 (TTM No. 20358) to subdivide four (4) parcels (approximately 8.8 acres) for the development of a 53-lot subdivision, and Design Review No. 20-028 for the construction of a 53-lot single-family residential detached dwellings on four parcels, APNs:
0233-122-28, -29, -60 and -63, totaling approximately 8.8 acres, subject to the Conditions of Approval, and;
1b) Read by title only and waive further reading of and introduce Ordinance No. 1943, an Ordinance of the City Council of the City of Fontana, approving, pursuant to a Mitigated Negative Declaration, Zoning District Map Amendment No. 20-015 to update the zoning map from Single-Family Residential (R-1) to Medium Density Residential (R-2) for four (4) parcels APNs: 0233-122-28, -29, -60 and -63, and that the reading of the title constitutes the first reading thereof.

7 City Council Meeting Regular Agenda April 9, 2024
Part No. 2 - Fontana Business Center 3 Project
Master Case No. 23-013: General Plan Amendment (GPA) No. 23-001, Zoning District Map Amendment (ZCA) No. 23-002, Specific Plan Amendment (SPA) No. 23-001, Tentative Parcel Map No. 23-003 (TPM No. 20795), Administrative Site Plan (ASP) No. 23-006 and Development Agreement No. (AGR) 23-001 for property comprised of APNs:
0255-101-24 and 0255-101-30 - Amendment of the subject site’s General Plan land use designation from Residential Planned Community (R-PC) to General Industrial (I-G), amendment of the Zoning District Map from Residential Planned Community (R-PC) to Southwest Industrial Park Specific Plan (SWIP), a Specific Plan Amendment to include the project site in the Southwest Industrial Park Specific Plan (SWIP), a Tentative Parcel Map for the consolidation of two (2) parcels into one (1) parcel, an Administrative Site Plan for the site and architectural review of a 33,585 square foot industrial commercial center building within a project site comprised of approximately 1.6 acres, and a Development Agreement including provision for a public benefit fee, pursuant to a Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program.
2a) Adopt Resolution No. 2024-016, (Part No. 2 of General Plan Amendment Cycle No. 1 of 2024,) a Resolution of the City Council of the City of Fontana adopting a Mitigated Negative Declaration, approving a Mitigation Monitoring and Reporting Program pursuant to the California Environmental Quality Act (CEQA), and approving General Plan Amendment No. 23-011 (Part No. 2 of General Plan Amendment Cycle No. 1 of 2024) amending Exhibit 15.8 of General Plan Chapter 15 (Land Use, Zoning, and Urban Design) to change the land use designation from Residential Planned Community (R-PC) to General Industrial (I-G) for APNS: 0255-101-24 and -30 totaling approximately 1.6 acres located on the east side of juniper Avenue, south of Santa Ana Avenue, and approving Tentative Parcel Map No. 23-002 (TPM No. 20795) to consolidate two (2) parcels into one (1) parcel, and Administrative Site Plan No. 23-006 for the construction of an approximately 33,585 square foot industrial commerce building on approximately 1.6 acres, subject to the Conditions of Approval; and, 2b) Read by title only and waive further reading of and introduce Ordinance No. 1944, an Ordinance of the City Council of the City of Fontana, approving, pursuant to the Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program for the Fontana Business Center 3 project, Zoning District Map Amendment No. 23-002 to change the zoning designation for APNs:
0255-101-24 and -30 from Residential Planned Community (R-PC) to Southwest Industrial Park (SWIP) Specific Plan, Slover East Industrial District for approximately 1.6 acres located on the east side of Juniper Avenue, south of Santa Ana Avenue, and that the reading of the title constitutes the first reading thereof; and,

8 City Council Meeting Regular Agenda April 9, 2024
2c) Read by title only and waive further reading of and introduce Ordinance No. 1945, an Ordinance of the City Council of the City of Fontana, approving, pursuant to the project Mitigated Negative Declaration and Mitigation Monitoring and Report Program, Specific Plan Amendment No. 23-001, an amendment to the Southwest Industrial Park (SWIP) Specific Plan to include 1.6 acres in the Slover East Industrial District on the east side of Juniper Avenue, south of Santa Ana Avenue, and that the reading of the title constitutes the first reading thereof; and,
2d) Read by title only and waive further reading of and introduce Ordinance No. 1946, an Ordinance of the City Council of the City of Fontana, approving, pursuant to an adopted Mitigated Negative Declaration, a Development Agreement No. 23-001 between the City of Fontana and Chase Partners, which provides a public benefit fee in the amount of $150,896.25, and that the reading of the title constitutes the first reading thereof.

Part No. 3 - Citrus and Boyle Industrial Commerce Center Project Master Case No. 22-115: General Plan Amendment (GPA) No. 22-009, Zoning District Map Amendment (ZCA) No. 22-009, Tentative Parcel Map No. 22-029 (TPM No. 20834), Design Review (DRP) No. 22-054 and Development Agreement (AGR) No. 22-096 for property comprised of APNs: 0251-151-03 through -07, -09 and -10, -14 through -16, -18 through -22, and -39 through -44 - Amendment of the General Plan land use designation for APN: 0251-151-10 from Community Commercial (C-C) to Light Industrial (I-L) and amendment of the Zoning District Map for APN 0251-151-10 from Community Commercial (C-1) to Light Industrial (M-1), and a Tentative Parcel Map for the consolidation of twenty-one (21) parcels into one parcel, and Design Review for site and architectural review to construct a 355,995 square foot industrial commerce building within a project site comprised of approximately

15.84 acres (APNs: 0251-151-03 through -07, -09 and -10, -14 through -16, -18 through -22, and -39 through -44), and a Development Agreement including provision for a public benefit fee, pursuant to a Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program.
3a) Adopt Resolution No. 2024-017, (Part No. 3 of General Plan Amendment Cycle No. 1 of 2024,) a Resolution of the City Council of the City of Fontana adopting a Mitigated Negative Declaration and approving a Mitigated Monitoring and Reporting Program pursuant to the California Environmental Quality Act (CEQA), and approving General Plan Amendment No. 22-009 (Part No. 3 of General Plan Amendment Cycle No. 1 of 2024), amending Exhibit 15.8 of General Plan Chapter 15 (Land Use, Zoning, and Urban Design) to change the land use designation from Community Commercial (C-C) to Light Industrial (I-L) for APN: 0251-151-10 totaling approximately 0.9 acres of land located on the north side of Slover Avenue

9 City Council Meeting Regular Agenda April 9, 2024
and east of Citrus Avenue, Tentative Parcel Map No. 22-029 (TPMM No. 20834) to consolidate twenty-one parcels into one (1) parcel and Design Review No. 22-054 for the development of a 355,995 square foot industrial commerce center building on APNs 0251-151-03 though -07, -09 and -10, -14 through -16, -18 through -22 and -39 through -44 totaling approximately

15.84 acres located north of Slover Avenue, east of Citrus Avenue, subject to the Conditions of Approval; and,
3b) Read by title only and waive further reading of and introduce Ordinance No. 1947, an Ordinance of the City Council of the City of Fontana, pursuant to an adopted Mitigated Negative Declaration and approved Mitigation Monitoring and Reporting Program for the Citrus and Boyle Project, Zoning District Map Amendment No. 22-009 to change the zoning designation for APN: 0251-151-10 from Community Commercial (C-1) to Light Industrial (M-1) for approximately 0.9 acres located on the north side of Slover Avenue, east of Citrus Avenue, and that the reading of the title constitutes the first reading thereof; and, 3c) Read by title only and waive further reading of and introduce Ordinance No. 1948, an Ordinance of the City Council of the City of Fontana, approving, pursuant to an adopted Mitigated Negative Declaration, a Development Agreement No. 23-096 between the City of Fontana and Chipt Fontana Citrus Avenue, L.P., which provides a public benefit fee in the amount of $49,722.00, and that the reading of the title constitutes the first reading thereof.

10 City Council Meeting Regular Agenda April 9, 2024
Attachment No. 1 (Part No. 1) - Resolution for General Plan Amendment, Tentative Tract Map, Conditional Use Permit, Design Review and Mitigated Negative Declaration
Attachment No. 2 (Part No. 1) - Ordinance for Zoning District Map Amendment
Attachment No. 3 (Part No. 1) - Planning Commission
Minutes from January 16, 2024
Attachment No. 4 (Part No. 1) - Planning Commission
Packet - MCN No. 20-073
Attachment No. 5 (Part No. 1) - Public Hearing Notice
Attachment No. 6 (Part No. 2) - Resolution for General Plan Amendment, Tentative Parcel Map and Administrative Site Plan
Attachment No. 7 (Part No. 2) - Ordinance for Zoning District Map Amendment
Attachment No. 8 (Part No. 2) - Ordinance for Specific Plan Amendment
Attachment No. 9 (Part No. 2) - Ordinance for Development Agreement
Attachment No. 10 (Part No. 2) - Planning Commission
Minutes - March 19, 2024
Attachment No. 11 (Part No. 2) - Planning Commission
Packet - MCN No. 23-013
Attachment No. 12 (Part No. 2) - Public Hearing Notice
Attachment No. 13 (Part No. 3) - Resolution for General Plan Amendment, Tentative Parcel Map and Design Review
Attachment No. 14 (Part No. 3) - Ordinance for Zoning Code District Map Amendment
Attachment No. 15 (Part No. 3) - Ordinance for Development Agreement
Attachment No. 16 (Part No. 3) - Planning Commission
Minutes from March 19, 2024
Attachment No. 17 (Part No. 3) - Planning Commission
Packet - MCN No. 22-115
Attachment No. 18 (Part No. 3) - Public Comments Received Attachment No. 19 (Part No. 3) - Public Hearing Notice
Attachments:

CITY MANAGER COMMUNICATIONS:

A. City Manager Communications
ELECTED OFFICIALS COMMUNICATIONS/REPORTS:

A. Elected Officials Communications/Reports
ADJOURNMENT:

11 City Council Meeting Regular Agenda April 9, 2024
A. Adjournment
Adjourn to the next Regular City Council Meeting on April 23, 2024 at 2:00 p.m. in the Grover W. Taylor Council Chambers located at 8353 Sierra Avenue, Fontana, California.

12 City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-2927 Agenda Date: 4/9/2024
Agenda #: A. Category: Special Presentation
Special Presentations
Tuesday, April 9, 2024
Council Chambers
City Council
Acquanetta Warren, Mayor
Peter Garcia, Mayor Pro Tem
John Roberts, Council Member
Jesse “Jesus” Sandoval, Council Member
Phillip W. Cothran, Council Member
City of Fontana Page 1 of 1 Printed on 4/2/2024
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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-2919 Agenda Date: 4/9/2024
Agenda #: A. Category: Consent Calendar
FROM:

City Clerk
SUBJECT:

Approval of Minutes
RECOMMENDATION:

Approve the minutes of the March 26, 2024, Regular City Council Meeting.

COUNCIL GOALS:
· Create and maintain a dynamic team by supporting the decisions of the majority once made.
· Create and maintain a dynamic team by communicating Goals and Objectives to all commissions and employees.

DISCUSSION:

The City Council will consider approval of the minutes of the March 26, 2024, Regular City Council Meeting. The draft minutes are attached to this report for Council review and approval.

FISCAL IMPACT:

None.

MOTION:

Approve staff recommendation.

City of Fontana Page 1 of 1 Printed on 4/2/2024
powered by Legistar™ 14

City of Fontana
8353 Sierra Avenue
Fontana, CA 92335
Minutes
Tuesday, March 26, 2024
2:00 PM
Grover W. Taylor Council Chambers
City Council Meeting
Acquanetta Warren - Mayor
Peter A. Garcia - Mayor Pro Tem
John B. Roberts - Council Member
Jesus "Jesse" Sandoval - Council Member
Phillip Cothran - Council Member
Germaine Key - City Clerk
Janet Koehler-Brooks, City Treasurer
15

CLOSED SESSION:

A. 1:00 P.M. CLOSED SESSION
The Closed Session meeting of the Fontana City Council was held in the Executive Conference Room, 8353 Sierra Avenue, Fontana, CA 92335, on Tuesday, March 26, 2024.

Mayor Warren called the meeting to order at 1:02 p.m., with all members of the City Council present.

PUBLIC COMMUNICATION - CLOSED SESSION:

There were no public communications received for the following items:

1. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
(Gov. Code Section 54956.9(d)(1))
Name of Case: Thomas Anthony Perez v. City of Fontana
Case no. 5:19-cv-01623-DMG (KKx)
CALL TO ORDER/ROLL CALL:

A. 2:00 P.M. Call To Order/Roll Call:

The Regular Meeting of the Fontana City Council was held in the Grover W. Taylor Council Chambers, 8353 Sierra Avenue, Fontana, CA 92335, on Tuesday, March 26, 2024.

Mayor Warren called the Regular City Council Meeting to order at 2:05 p.m.

ROLL CALL:

PRESENT: Mayor Warren, Mayor Pro Tem Garcia, Council Members Cothran, Roberts and Sandoval.

City Treasurer Janet Koehler-Brooks and City Clerk Germaine Key were also present.

ABSENT: None
INVOCATION/PLEDGE OF ALLEGIANCE:

A. Invocation/Pledge of Allegiance:

The invocation was given by Council Member Roberts, followed by the pledge of allegiance led by Council Member Cothran.
16

CLOSED SESSION ANNOUNCEMENT:

City Attorney Ruben Duran reported that the City Council met in Closed Session on the items listed on the agenda, provided direction to staff, and took no reportable action.

SPECIAL PRESENTATIONS:

A. Special Presentations
Mayor Warren and City Council recognized Officers Steven Gomez and David Martinez and Dispatcher II Genevieve Blanco as Fontana Police Department’s November 2023 Employees of the Month.

PUBLIC COMMUNICATIONS:

A. Public Communications
The following individuals spoke under public communications:

Tarik A. spoke in support of Planned Parenthood.

Micah Rose spoke in support of Planned Parenthood.

Andrea Schmidt spoke in support of Planned Parenthood.

Alexis Claiborne spoke in support of Planned Parenthood.

Susana Morales spoke in opposition of Planned Parenthood.

Ulysses M. spoke in support of Planned Parenthood.

Mark Richicci spoke in opposition of Planned Parenthood.

Rebecca P. spoke in opposition of Planned Parenthood.

Maria P. spoke in opposition of Planned Parenthood.

Mary Kay W. of Life Choice spoke in opposition of Planned Parenthood.

Paul Padilla spoke in opposition of Planned Parenthood.

Margo Alducin spoke in opposition of Planned Parenthood.

Robert Aguirre asked if sidewalks and curbs would be included in the Jurupa and Cherry Avenue project. Also asked about low-income programs for local families. 17

CONSENT CALENDAR:

Mayor Warren requested that Consent Calendar Item “G” be pulled for discussion.

Prior to the motion being made, Council Member Cothran recused himself from Consent Calendar Item “E” on the Consent Calendar due to real estate holdings within the project area.

ACTION: Motion was made by Mayor Pro Tem Garcia, seconded by Council Member Roberts, and passed by a vote of 5-0 to approve Consent Calendar Items “A-H” with Council Member Cothran abstaining on Item “E.” The motion carried by the following vote: AYES: Warren, Garcia, Cothran, Roberts and Sandoval; NOES: None; ABSTAIN:

None; ABSENT: None
A. Approval of Minutes 21-2903
Approve the minutes of the March 12, 2024, Regular City Council Meeting.

B. Approve Amendment No. 2 to Task Order No. 3 with David 21-2867 Evans and Associates, Inc. for Landscape Plan Check and Inspection Review Services

1. Approve and authorize the City Manager to execute an Amendment No. 2 to Task Order No. 3 with David Evans and Associates, Inc. in the amount of $47,000 and an amended task order total of $140,000 for additional landscape plan check and inspection services.

2. Approve and authorize the City Manager to execute any future amendments to Task Order No. 3 with David Evans and Associates, Inc.

C. Accept a Grant and Approve and Authorize City Manager to 21-2883 Execute the Rebuilding American Infrastructure with Sustainability and Equity (RAISE) Grant Agreement in the amount of $15,000,000 for the Building a Better Connected Inland Empire Project at Cherry Avenue and Victoria Avenue within the Westgate Specific Plan Area

1. Authorize and approve the City Manager to execute the Rebuilding American Infrastructure with Sustainability and Equity (RAISE) grant agreement for the Building a Better Connected Inland Empire project at Cherry Avenue and Victoria Avenue within the Westgate Specific Plan area.

2. Accept $15,000,000 Rebuilding American Infrastructure with Sustainability and Equity (RAISE) grant from Federal Highway Administration (FHWA) for the Building a Better Connected Inland Empire project at Cherry Avenue and Victoria Avenue within the Westgate Specific Plan area. 18

D. Final Acceptance of Street, Storm Drain, Sewer, Landscape, 21-2891 and Signing & Striping Improvements on the northeast corner of Sierra Avenue and Segovia Lane for Tract No. 18944

1. Accept as complete the street, storm drain, sewer, landscape, and signing & striping improvements for Tract No. 18944, located on the northeast corner of Sierra Avenue and Segovia Lane.

2. Adopt Resolution No. 2024-010, accepting sewers in Tract No. 18944 as part of the City sewer system.

E. Award a Construction Bid for the Village of Heritage North, 21-2896 South, and West Pavement Rehabilitation Project

1. Award bid and authorize the City Manager to execute a construction contract with LCR Earthwork & Engineering, Corp. for the construction of the Village of Heritage North, South, and West Pavement Rehabilitation Project, in the amount of $1,290,941.00 and authorize a 10% contingency in the amount of $129,094.10 (Bid No. DE-153-23-SB)

2. Approve and authorize the City Manager to execute any and all utility agreements, utility easements, and subsequent agreements on behalf of the City of Fontana for the Village of Heritage North, South, and West Pavement Rehabilitation Project.

F. County Second District Supervisor Senior Scholarship Program 21-2902 Memorandum of Understanding
Authorize the Community Services Department to enter into a Memorandum of Understanding with San Bernardino County, Second District Supervisor, Jesse Armendarez.

G. Small Business Revolving Loan Program 21-2906

1. Authorize the City Manager to establish and implement a Revolving Loan Fund Program in the amount of $530,000.

2. Authorize the City Manager to enter into agreement with AmPac to administer the loan program.

Economic Development Analyst Rhonesia Perry provided the staff report.

Mayor Warren stated that she looked forward to implementing the program in Fontana.

Council Member Cothran thanked staff for their hard work and stated that he is excited for the mentorship and expansion the program would bring to local businesses. Asked the Council for their support to make the program a reality.
19

H. Out-Of-Area Sewer Service Agreement (ANX No. 23-001), 21-2920 between the City of Fontana and Maria Lourdes Burciaga, for the sewer service provided by the City of Fontana to 14775 Carmel Street (APN: 0231-251-37).

1. Find that the project is Exempt pursuant to Section No. 15268(b)(4) (Ministerial Project, Utility Connection) of the California Environmental Quality Act (CEQA) and, direct staff to file a Notice of Exemption; and,

2. Approve and authorize the City Manager to execute an Out-Of- Area Sewer Service Agreement (ANX No. 23-001) with Maria Lourdes Burciaga, for the provision of sewer service to an existing single-family residence located at 14775 Carmel Street, within the western sphere of influence of the City of Fontana.

PUBLIC HEARINGS:

A. Quarterly Lien Action for Delinquent Sewer, Rubbish and Weed 21-2890 Abatement Accounts

1. Authorize staff to complete and record lien notices against real property for those sewer accounts sixty days or more delinquent as described in Certified Lien List and direct staff to forward recorded liens to the County for collection.

2. Authorize staff to complete and record liens against real property for those rubbish accounts more than ninety days delinquent as described in the Certified Lien List and direct staff to forward recorded liens to the County for collection.

3. Adopt Resolution No. 2024-011, of the City Council of the City of Fontana adopting the statement of unpaid expenses for weed abatement and imposing a lien against real property for payment thereof.

Mayor Warren opened the public hearing.

City Clerk Key stated there were no written communications received for this item.

Revenue Operations Manager Lisa Conlon provided the staff report.

With no one interested to speak in favor or opposition of this item Mayor Warren closed the Public Hearing.

ACTION: Motion was made by Council Member Sandoval, seconded by Council Member Roberts, and passed unanimously by a vote of 5-0 to approve Public Hearing Item “A.” The motion carried by the following vote: AYES: Warren, Garcia, Cothran, Roberts and Sandoval; NOES: None; ABSTAIN: None; ABSENT: None
20

B. Public Hearing and Adoption of HUD Community Development 21-2897 Block Grant, HOME Investment Partnerships Program, and
Emergency Solutions Grant 2024 Annual Action Plan

1. Adopt the draft FY2024-25 Annual Action Plan for Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), and Emergency Solutions Grant (ESG) programming;

2. Authorize the City Manager, or City Manager’s designee, to execute and transmit any documents necessary or desirable, including but not limited to purchase agreements that may include acquisitions costs up to the full amount of the allocated funds, to ensure the City's timely receipt and execution of Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), and Emergency Solutions Grant (ESG) programs;

3. Authorize the City Manager, or City Manager’s designee, to execute and transmit any documents necessary or desirable, including but not limited to purchase agreements that may include acquisitions costs up to the full amount of the allocated funds, to facilitate the timely administration of the Community Development Block Grant (CDBG) Acquisition, Rehabilitation, and Rental Program including but not limited to property purchase agreements.

Mayor Warren opened the public hearing.

City Clerk Key stated there were no written communications received for this item.

Project Specialist Mary Aguilar provided the staff report.

With no one interested to speak in favor or opposition of this item Mayor Warren closed the Public Hearing.

ACTION: Motion was made by Council Member Cothran, seconded by Mayor Pro Tem Garcia, and passed unanimously by a vote of 5-0 to approve Public Hearing Item “B.” The motion carried by the following vote: AYES: Warren, Garcia, Cothran, Roberts and Sandoval; NOES: None; ABSTAIN: None; ABSENT: None
C. Proposal for Mandating Electronic Filing of Campaign Finance 21-2857 Disclosure Statements and Statements of Economic Interests and Implementation of a Campaign Sign Deposit

1. Read by title only and waive further reading of and introduce Ordinance No. 1942 amending Chapter 7, Article III of the Fontana Municipal Code, regarding mandating electronic and paperless filing of Campaign Finance Disclosure Statements and Statements of Economic Interests.

2. Adopt Resolution No. 2024-012, adopting a refundable campaign sign deposit.
21

Mayor Warren opened the public hearing.

City Clerk Key stated there was one (1) written communication received in opposition for this item.

Deputy City Manager Ray Ebert provided the staff report.

Council Member Sandoval asked how the fee was determined and asked if a deposit would be charged per sign. Also expressed concerns with only charging local candidates the sign deposit.

City Manager Matthew Ballantyne stated the City would attempt to collect from candidates for outside office and not just local municipal election candidates.

The following individuals spoke in opposition of the item:

1. Bobbi Jo Chavarria

2. Jennifer Cardenas
Mayor Warren explained that the City Clerk meets individually with each potential candidate and explains the process for running for municipal office.

Mayor Warren asked if staff could research other options to the campaign sign deposit requirement such as hardship exemptions, campaign expenditure limitations, etc.

Council Member Cothran suggested implementing a waiver that candidates could sign if they did not intend on putting up campaign signs.

Mayor Warren closed the public hearing.

ACTION: Motion was made by Mayor Warren, seconded by Council Member Roberts, and passed by a vote of 4-1 to approve Public Hearing Item “C-1” and provide direction to staff on Public Hearing Item “C-2.” The motion carried by the following vote: AYES:

Warren, Garcia, Cothran and Roberts; NOES: Sandoval; ABSTAIN: None; ABSENT:

None
PUBLIC COMMUNICATIONS - CONTINUED:

Werlinda Carrillo spoke in opposition of Planned Parenthood.

Eugenio Torres spoke in opposition of Planned Parenthood.

Robert Garcia spoke in support of Planned Parenthood.

A representative with the Western State Carpenters Local 909 discussed concerns with construction industry tax fraud.

Bobbi Jo Chavarria spoke in support of Planned Parenthood. 22

Jennifer Cardenas spoke in support of Planned Parenthood.

CITY MANAGER COMMUNICATIONS:

A. City Manager Communications
City Manager Matthew Ballantyne mentioned that the campaign sign deposit item was brought to the Council for consideration due to the amount of sign complaints staff had responded to.

ELECTED OFFICIALS COMMUNICATIONS/REPORTS:

A. Elected Officials Communications/Reports
City Treasurer Koehler-Brooks announced the birth of her grandson Matteo Richard.

City Clerk Key congratulated City Treasurer Koehler-Brooks on her first grandchild and offered condolences to the Cruz family.

Council Member Cothran thanked the Council for their support of the Small Business Revolving Loan Program. Also discussed the recent Civic Well conference he attended.

Mayor Pro Tem Garcia did not have any comments.

Council Member Roberts expressed condolences to the Cruz family and to the family of local resident James Harley.

Council Member Sandoval congratulated City Treasurer Koehler-Brooks on her first grandchild and thanked Public Works staff for the recent sidewalk repairs. Asked Fire Chief Birchfield if badges could be provided for his grandson's upcoming open house. Also expressed condolences to the family of James Harley.

Mayor Warren discussed a recent visit to China, the Wuxi International Celebration and a possible sister city adoption that would be brought to the Council for consideration. Also thanked the public for their feedback on the recent Spectrum interview and wished all a happy Easter.

ADJOURNMENT:

A. Adjournment
Mayor Warren and the City Council led a moment of silence in memory of the following individuals:

1. James Harley
23

Mayor Warren adjourned the meeting at 4:01 p.m. to the next Regular City Council Meeting on Tuesday, April 9, 2024, at 2:00 p.m. in the Grover W. Taylor Council Chambers located at 8353 Sierra Avenue, Fontana, California.
_____________________
Christina Rudsell
Deputy City Clerk

THE FOREGOING MINUTES WERE ADOPTED AND APPROVED BY THE FONTANA CITY COUNCIL ON APRIL 9, 2024.
_______________________
Germaine Key
City Clerk
24 City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-2931 Agenda Date: 4/9/2024
Agenda #: B. Category: Consent Calendar
FROM:

City Clerk
SUBJECT:

Adoption of Ordinance No. 1942 (Second Reading)
RECOMMENDATION:

Adopt Ordinance No. 1942 on Second Reading, an Ordinance of the City Council of the City of Fontana, amending Article III to Chapter 7 of Fontana Municipal Code Regarding Electronic and Paper Methods of Filing Campaign Disclosure Statements.

COUNCIL GOALS:
· To operate in a businesslike manner by becoming more service oriented. · To operate in a businesslike manner by improving services through the effective use of technology.
· To improve public safety by increasing operational efficiency, visibility, and availability. · To increase citizen involvement by utilizing technology to promote communication and linkages in the community
DISCUSSION:

On February 8, 2022, the City Council adopted Ordinance 1878 amending Chapter 7 of the Fontana Municipal Code adding Article III related to electronic and paperless filing of statutory Fair Political Practices Commission (FPPC) economic and financial disclosure statements by elected officials, candidates, or committees. Upon adoption of Ordinance 1878, the City Council approved an optin/opt-out option for electronic filing which allows for the submission of paper filings. Manual submissions of economic and financial disclosure statements can be inefficient, error-prone, and resource-intensive with staff having to manually redact and upload statements to the City’s website in accordance with Assembly Bill 2151 which mandates that all campaign reports and statements filed in paper format be made available online on the local agency’s website within 72 hours after the filing deadline.

In addition to increased efficiency, mandating electronic filing will eliminate the need for wet signatures, will redact statements posted online, and will automatically link to the FPPC’s system. If approved, all filers will be required to submit their statutory filings through the automated system, and paper filings will no longer be accepted. However, to support the City’s efforts towards diversity, equity and inclusion, the Deputy City Clerk, as the City’s filing officer, will have the right to accept a paper filing in lieu of electronic filing at the Deputy City Clerk’s discretion and to accommodate an Americans with Disabilities Act (ADA) request. Examples of exceptions may include limited access to an electronic device or internet connection.

The City Clerk’s Office currently uses NetFile, a hosted solution created specifically for cities and City of Fontana Page 1 of 2 Printed on 4/2/2024
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File #: 21-2931 Agenda Date: 4/9/2024
Agenda #: B. Category: Consent Calendar
The City Clerk’s Office currently uses NetFile, a hosted solution created specifically for cities and counties responsible for administering campaign finance filings and statements of economic interest, which meets the requirements of the Secretary of State and allows for electronic and paperless filing of campaign statements. NetFile is widely used by other agencies in the region and throughout California. The NetFile system operates securely and effectively at no cost to filers. It does not place an undue burden on filers and includes procedures for filers to comply with the requirement that they sign statements and reports under penalty of perjury. It is also available to the public to view filings.

For the City of Fontana to mandate electronic filing of statements, the City Council must amend Chapter 7, Article III of the Fontana Municipal Code. Mandating electronic filing of economic and financial disclosure statements offers a comprehensive set of benefits that promote transparency, accuracy, efficiency, and accessibility in electoral finance reporting, ultimately strengthening the integrity of democratic processes.

Ordinance No. 1942 was introduced by a vote of 4-1 at the March 26, 2024, Regular City Council meeting.

FISCAL IMPACT:

Mandating electronic filing of economic and financial disclosure statements can result in a significant cost savings by eliminating the need for paper forms, printing, postage, and manual data entry while increasing the overall efficiency of campaign finance reporting. Additionally, funding for Netfile’s services is included in the Fiscal Year 2023/2024 City Clerk’s Operating Budget in the General Fund #101, budget unit 10122000.

MOTION:

Approve staff recommendation.

City of Fontana Page 2 of 2 Printed on 4/2/2024
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ORDINANCE NO. 1942

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

FONTANA, CALIFORNIA, AMENDING ARTICLE III TO
CHAPTER 7 OF THE FONTANA MUNICIPAL CODE

REGARDING ELECTRONIC AND PAPER METHODS OF
FILING CAMPAIGN FINANCE DISCLOSURE STATEMENTS.

WHEREAS, California Government Code Section 84615 provides that a legislative body of local government agency may adopt an ordinance that requires an elected official, candidate, committee, or other person required to file statements, reports or other documents required by Chapter 4 of the Political Reform Act, except those whose contributions and expenditures each total less than two thousand dollars ($2,000) in a calendar year, to file such statements, reports, or other documents online or electronically with a local filing officer; and
WHEREAS, On February 8, 2022, the Fontana City Council (City Council) adopted Ordinance 1878 amending Chapter 7 of the Fontana Municipal Code adding Article III related to electronic and paperless filing of statutory Fair Political Practices Commission (FPPC) economic and financial disclosure statements by elected officials, candidates, or committees; and
WHEREAS, adoption of Ordinance 1878 included an opt-in/opt-out option for electronic filing which allows for the submission of paper filings; and WHEREAS, the software used by NetFile's electronic filing system has been certified by the Secretary of State and meets the requirements set by Government Code section 84615; and
WHEREAS, NetFile’s electronic filing system software is currently being used by the Fontana City Clerk’s Department; and
WHEREAS, the Deputy City Clerk and NetFile currently operate the electronic filing system in compliance with the requirements of California Government Code section 84615 and any other applicable laws.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FONTANA, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. RECITALS. The above Recitals are true, correct and incorporated herein by this reference.
27 Ordinance No. 1942

Section 2. CEQA. This Ordinance is not a project within the meaning of Section 1538 of the State of California Environmental Quality Act (“CEQA”) Guidelines, because it has no potential for resulting in physical change in the environment, directly or indirectly.

The City Council further finds, under Title 14 of the California Code of Regulations, Section 15061(b)(3), that this Ordinance is nonetheless exempt for the requirements of CEQA in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The City Council, therefore, directs that a Notice of Exemption be filed with the County Clerk of the County of San Bernardino in accordance with CEQA Guidelines.

Section 3. FINDINGS. The City Council finds that the City’s electronic filing system, NetFile software, contains multiple safeguards to protect the integrity and security of the data, and will operate securely and effectively and will not unduly burden filers.

Section 4. TITLE. “CHAPTER 7, ARTICLE III- ELECTRONIC FILING OF CAMPAIGN DISCLOSURE INFORMATION” is hereby amended to read as follows:

Sec. 7-31 Required Use of Electronic Filing.
(a) Except as set forth in subsection ( b ) of this Section 7-31, any elected officer, candidate, committee or other person required to file specified statements, reports, forms, or other documents with the Fontana Deputy City Clerk as required by Chapter 4 (commencing with Section 84100 of Title 9 of the California Government Code, also known as the Political Reform Act), and that has received contributions or made expenditures of $2,000.00 or more in a calendar year, may shall electronically file such statement using the City's online system according to procedures established by the Deputy City Clerk. However, to ensure reporting continuity, once a statement, report, form, or other document is filed electronically on behalf of any elected officer, candidate, or committee, all future statements, report, forms and other documents filed on behalf of that officer, candidate or committee must be filed electronically.
(b) The Deputy City Clerk, as the City’s filing officer, shall have the right to accept a paper filing in lieu of an electronic filing at the Deputy City Clerk’s discretion and to accommodate an Americans with Disabilities Act (ADA) request.

Sec. 7-32 Paper Filing Not Required After Electronic Filing.

Any elected officer, candidate, committee or other person who has electronically filed a statement, report, form, or other document using the City's online system is not also required to file a copy of that document in a paper format with the Deputy City Clerk.
28 Ordinance No. 1942

Sec. 7-33 Filing Options When a Copy Must be Filed with Deputy City Clerk.

In any instance in which an original statement, report, form, or other document must be filed with the Secretary of State or other agency, and a copy of that document is required to be filed with the Deputy City Clerk, the filer may electronically file a copy with the Deputy City Clerk or may file in a paper format.

Sec. 7-34 Paper Filing When Cannot File Electronically.

If, for technical reasons, the City’s system is not capable of accepting a particular type of statement, report, form or other document, an elected officer, candidate, committee or other person shall timely file that document in paper format with the Deputy City Clerk.

Sec. 7-35 Internet Posting of Data.

The Deputy City Clerk shall ensure that the City's system makes all electronically filed statements, reports, forms, or other documents available on the internet in an easily understood format that provides the greatest public access.

The data shall be made available free of charge and as soon as possible after receipt/deadline. The data made available on the internet shall not contain the street name of the persons or entity representatives listed on the electronically filed forms or any bank account number required to be disclosed by the filer. The City Clerk’s Department shall also make a complete, unredacted copy of the statement, report, form, or other document available to the Fair Political Practices Commission for Government Code section 87200 filers.

Sec. 7-36 Records Retention.

The City Clerk’s Department shall maintain records according to the City's Records Retention Schedule and applicable State law commencing from the date filed, a secured, official version of each online or electronic statement, report, form, or other document, which shall serve as the official version of that record.

Sec. 7-37 Administrative Policies and Procedures.

The Deputy City Clerk is authorized to adopt such administrative policies and procedures as deemed necessary to implement this Chapter.

Section 5. CERTIFICATION. The Deputy City Clerk shall certify to the adoption of this Ordinance and cause the same to be published as required by law. 29 Ordinance No. 1942

Section 6. EFFECTIVE DATE. This Ordinance shall go into effect thirty (30) days after the date of its passage and adoption.

Section 7. SEVERABILITY. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and, to this end, the provisions of this ordinance are declared to be severable.

APPROVED AND ADOPTED this 9
th day of April, 2024.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney
I, Germaine Key, City Clerk of the City of Fontana and Ex-Officio Clerk of the City Council, do hereby certify that the foregoing Ordinance is the actual Ordinance introduced at a regular meeting on the 26th day of March 2024, and was finally passed and adopted not less than five days thereafter on the 9 th of April 2024, by the following
vote to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

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

City Clerk
30 City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-2910 Agenda Date: 4/9/2024
Agenda #: C. Category: Consent Calendar
FROM:

Public Works
SUBJECT:

Award Bid for Pool Maintenance Services (PW-24-144-SP)
RECOMMENDATION:

1. Award bid and authorize the City Manager to execute a contract with Service First of Santa Ana, CA for City-Wide Pool Maintenance Services for two (2) years with three (3) one-year extension in the amount of $580,859 annually.

2. Approve and authorize the City Manager to execute any future contract amendments to the contract with Service First for City-Wide Pool Maintenance Services.

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

DISCUSSION:

The City of Fontana owns and operates 7 public pools, 2 splash pads, and 2 waterslides at 5 different locations. Since the retirement of the aquatic maintenance staff, the Public Works Department has diligently worked to fill this position. Despite our dedicated efforts, we have encountered challenges in attracting suitable candidates both internally and externally. This has resulted in several failed recruitment attempts, impacting our ability to adequately staff the servicing of pools.

As a result, Public Works Department staff recently solicited bids for full-service pool maintenance services at these facilities. The scope of services for this contract includes all labor, materials, chemicals, minor repairs, and record keeping needed to operate the city’s pools and aquatics facilities in compliance with State and County public health standards.

The formal bidding process has been completed in conformance with the City’s purchasing policies.

Public Works Department staff evaluated the three (3) proposals received with assistance from the City’s Purchasing Department. Staff recommends that Service First of Santa Ana, CA be awarded the contract for these services as they were determined to be the most qualified, responsible, and responsive bidder. This proposed contract will be for a two (2) year period, with three (3) additional one-year extensions at the City’s sole discretion, effective April 1, 2024.

FISCAL IMPACT:

The total fiscal Impact associated with the approval of this item is $152,415.00 in fiscal year 2023/2024, and $580,859.00 in fiscal year 2024/2025, totaling $733,274.00 during the proposed 2- City of Fontana Page 1 of 2 Printed on 4/3/2024
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File #: 21-2910 Agenda Date: 4/9/2024
Agenda #: C. Category: Consent Calendar
year total contract term. The appropriate amounts of funding are included in the City’s current FY 23/24 and FY24/25 supplemental budget in the General Fund, LMD2 fund 396, and CFD1 fund 401 where these activities are performed.

MOTION:

Approve Staff Recommendation.

City of Fontana Page 2 of 2 Printed on 4/3/2024
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42 Service
Cover Letter
Service First proposes to provide Pool Maintenance Services to the City of Fontana per RFp pW24-L44-SP . The following proposal will demonstrate why The City of Fontana should choose Service First as the preferred contractor to provide these services.

With over 35 years' experience and the majority of staff with 15+ years tenure, Service First has earned the reputation as Southern California's premier Commercial Swimming pool Service Company.

Our proprietary techniques developed over the years have allowed us to provide excellent Swimming Pool Service even in the most extreme environments.

The majority of our customer base have been clients for numerous years and prove to be excellent references each time they are called upon. We pride ourselves on providing clean, clear, and safe pools for the patrons while providing balanced water to ensure the longevity of the pool and fountain equipment and vessel for the owner/operator.

The contact person will be Robert Wormus Account Manager 7L4-788-4589 cell Service First will not use Sub-Contractors for this Contract Thank you for the opportunity to bid RFP PW-24-144-SP Pool Maintenance Services.

Service First
2510 N Grand Ave st 110
santa Ana ca92705
+w
DATE
7 1,4-s7 3-22s3 ilA-St Z -2261 f ax
25l0N.GrandAvenue,Suite ll0.SantaAna,California 92705 . (7r4)513-2200 . FAX (714)5i3-2297 . License #556g12 43

PROPOSER'S IN FORMATION
PROPOSER certifies that the following information is true and correct.

Proposer's Name:

Business Address:

Proposal Contact:

Telephone:

E-Mail:

Fax:

Number of Years ln Business:
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The following are the names, titles, addresses, and phone numbers of all individuals, firm members, padners, joint ventures, and/or corporate officers having a principal interest in this proposal:
c(orrr.t y**d& U:fgb'+q
. i,t ,. (l-p1(L 51: I9o -t7bb
$ naP brtt),raf' Seere-l-t1
The dates of any voluntary or involuntary bankruptcy juSgments against any principal having an ?rt{ - 573 -2@
interest in this proposal are as follows:

All current and prior DBA'S, alias, and/or fictitious business names for any princrpal having an interest in this proposal are as follows:

N\er
18 1i.'.igr
1tv -f7?-z-zo I
"b
44 All current and prior DBA'S, alias, and/orfictitious business names for any principal having an interest in this proposal are as follows:

The dates of any contract termination 6nl.;
for contract termination. Use extra sheet if necessary.

Signature of Proposer
J4etarPts,
t4tvLtu iL'J'''r
23 lPage
45 Service
- 1il =
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CITY OF FONTANA RFP 24-144-SP Pool Maintenance Services Firm and Team Experience

FIRM AND TEAM EXPERIENCE
a. Service First has been in business for 35 years. We have twenty-two (28) fully trained and equipped service technicians, four (4) fully trained and equipped repair technicians, and four (a) field supervisors. ln Addition, our management team includes Field Director, General Manager, Account Managers, and Customer Service Reps.
b. The Project Manager will be Bob Wormus, [email protected] -71,4- 788-4589 cell.
i. Project Manager- Bob Wormus
1,. 29 years experience in aquatic industry (23 years with Service First)

2. CPO Certified/NsPF lnstructor 92*10684

3. LA Technician #T5633
ii. General Manager- Rich Rohr
1,. 26 years experience in aquatic industry ( 21 years with Service First)

2. CPO Certified
iii. Repair Supervisor-Al Conde
t. 34 years experience in aquatic industry ( 34 years with Service First)

2. CPO Certified

3. LA Tech Certified T1.1.44
iv. Route Supervisor -Alberto Cervantes
1,. 24years experience ( 24 years with Service First)

2. CPO Certified

3. LA Tech Certified
v. Route Supervisor- Humberto Nava
1,. 20 Years Experience ( 20 years with Service First)

2. CPO Certiifed

3. LA Tech Certified
DrK a*1w(fr\ob 13
2-510 N. Grand Avenue, Suire #ll}. Sanra Ana, Califbrnia 92705 . (711) 573-2200 . FAX (711) 573-2297 . Liccnse #556g12 46 Service
1il
City of Fontana RFP PW-24-1-44-SP
Pool Maintena nce Services
Work Plan
A. Work Plan
i. Service First has been in business since February 1980 and incorporated in L987 as a California S Corporation. We have layers of management and reporting procedures which allow us to provide excellent service and prevent complacency in reoccurring service. ln addition to our daily logs, we perform an extensive endof month inspection each month of each body of water in which is personally reviewed by the Route Supervisor and Account Manager. Any items needing attention are immediately addressed and corrected and/or brought to the city's attention upon discovery. Daily Logs, forms, and Exhibit A and B explanation of daily tasks performed in addition to specific tasks outlined by the RFP are attached.
il.
ilt.

The staff assigned to this contract have extensive experience with performing Commercial Pool Service in extreme environments.

We have been providing service to Government Contracts since L995 and have always completed all contracts on good terms and with no disciplinary action or concerns. Service First prides itself on providing excellent Customer Service as well. All technicians are GPS tracked for rapid response times to emergency call outs.

Service First has never filed for Bankruptcy.

Robert Wormus is the Project Manager for all Municipal contracts 7L4-788-4589 bworm [email protected] .
tv.
2-5t0 N. GrandAvenue,Suite #l10. SanraAna,Califbrnia92i05. (71-t) 573-ZZ0O. FAX (71-i) 5i3-2297. License /t5569lz 47 vi. Service First is independent and properly licensed to perform this work. CSLB 556812 C-53, C-6L/D35 B C-2L DtR# 1000010693
48 Service
:JGr-rt :
--J-COMMERCIAL

POOL SYSTEMS

IAP POOL
January
Day TECH FAC TAC pH ORP pH Flow influent Effluent TA Drain Temp Products faclor psi ppm deof Services
1 2
3 4
5 6
7 8
I
10 11
'12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
29 30
31 24 HOUR EMERGENGY PHONE NUMBER (7141 573-2253
Service 1"t
Commercial Pool Systems Your pool, spa and fountain experts 49 (
swimming Poouspa service Inspection Beport
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I)ate of lnspection:

Irrspccted lly,:

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CPR:

Pool Occuponcy:

No Diving:

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Spo Signs
Spo Rules:

Spo Occuponcy:

Emerg. Shut Off:

Sofety,Apporotus ond Equipment #2
Life Ring:

Life Line:

Life Pole w,/ Hook:

Emorgency Spo Shut Off Switch:
#t
(:'.

Plumbing ond Equipment Leoks
Bockwosh Volve
Flow Meters ond Guoges
Filter Condition
Pump Room Condition
Eleciricol Connections
Heoter Condition
Automoted Chemicol Feed System
Weir Blodes, boskets ond covers
Lighting CGFt:

Time Clock ond/or Controls;
Time Sei on Time Clocks for pool ond lighting:

Pool/Spo Lighting:

Pool/Spo Sofery Signs:

Pool/Spo Sofeiy Equipment:

Pool,/Spo Hond Roils:

Pool/Spo Steps ond Rungs:

Pool/Spo Moin Droin Covers:

Deck Covers:

Pool Borrier:

PLEASE EXPLAIN POOR CONDITIONS OR SAFETY VIOLATIONS:
1ST
Temp
dagF
CvA
50 Service

EXHIBIT A

SPECIFICATIONS

TASKS PERFORMED AT EACH SCHEDULED VISIT PER BODY OF WATER L. Vacuum the bottom surface of each pool.

2. Skim debris from surface of each pool.

3. Clean all water line tiles as necessary.

4. Brush sides of each pool to remove dirt and debris as needed.

5. Remove accumulated debris from all pool skimmers and drains.

6. Remove accumulated debris from all pump strainers.

7. Backwash pool filters as necessary to maintain proper pressure differential.

8. Refill all chemical feed equipment containers as necessary.

9. Maintain a clean and organized equipment room.

10. Check and record the following in the supplied cor
log book:
a. Free chlorine
b. pH level
c. Flow rate
d. lnfluent Pressure
e. Effluent Pressure
f. Pool Temperature
g, Chemicals Added
h. Services Performed
11". Check for safety hazards and conditions in and around the pool area.
2-5l0N.OrandAvenue,Suite ll0.SantaAna,California92705 . (7 14)573-2200. FAX (l14)5i3-2297 . l.icense #556g12 51 Service

EXH IBIT B

SPECIFICATIONS

TASKS PERFORMED AT EACH SCHEDULED VISIT PER BODY OF WATER

1. Check and adjust all automatic and manual water chemistry control systems.

2. Maintain and adjust all company owned equipment.

3. Maintain a proper residualof chemicalstock on hand for allautomatic and manual water chemistry control systems.

4. Place in use chlorine and pH neutralizer necessary to maintain the water balance in accordance with localand state health department codes and regulations regardingthe sanitation of commercial pool and spas.

5. Maintain water levels in all bodies of water and adjust allautomatic water level equipment,

6. Provide secondary containment for all chemical stocks in accordance with all local fire and safety codes,

7. Maintain pool records charts in accordance with local health authority quidelines,

8. Drain all pools and spas as necessary.

9. Check all pool equipment for proper operation.
1,0. Check pool area for obvious hazards,
1L. Check pool and spa lighting for proper operation.

END OF MONTH INSPECTION REPORT COMPLETED AT THE END OF EACH MONTH

12. Check and Record the following:
a. Free Chlorine
b, Total Chlorine
c. Combined Chlorine
d. pH level
e, TotalAlkalinity
f. Calcium Hardness
g. Total Dissolved Solids
h. Phosphate Levels
i. Temperature
2510 N, Grand Avenue, Suite 1 10 . Santa Ana, californi a 92705 , ('r 14) 573-zzaa . I"AX ('r 14) 573-zzg7 . License #5s6g 12 52 13. Perform a site survey for all pools and spas to check and record the condition of the following:
a. Check all required safety signage
b. Check all required safety equipment
c. Check for missing or damaged main drain covers
d. Check for safety hazards in and around pool area
e. Check for missing or damaged deck lids
f. Check spa emergency shut off switch operation
g, Check all pool circulation, filtration, and heating systems. h. Check all pool lighting and lighting GFCIs for proper operation. i. Check all pool access gates and perimeter barriers
53 Service
:=: { r'rrn
==
;=== tDi
I
i
;
Refere nces
L City of Riverside Community pools
St a cey B u n ch e k I b u i1c lq r.1 l< (g) r. i vt: r:; i d r,, t ; a, r;o rrr 9 5 l. -45 3 -6 5 g g seven (7) day a weel< comrnercial pool service for the Cities seven (7) Community Pools 88,000 * 665,000 gallons
$167,0001year - we have had this contract for the past L0 years

2. City of Santa Ana
Jorge Aceved o j accvc r I ol i (rr)..;a rr i a il n i l, ( ) r 1,, 7 L4-7 L9-51,9g Swimming Pool Maintenance Services
Pool Maintenance of Five (5) City Commuriity pools
$2L5,ooo/year
We have had this contract for one(1) year

3. City of Pomona
Ro berto C u rie I lio.bc 116.1; 1 1 1.i 6 | (1) p r) rn () r l.r, l.iov g)g _322-7 BBg Commercial Pool Service for two (2) Community pools
Ganesha Parl< pool and Water Slicle
Washington parl< pool
S$zs,oooTyr ( seasonal)
We have had this contract for one (1) year
2-5 l0N.(ilancr Avonuc,SLrirc/ilr0..SanraAna,('arirtrr.rria9270.5.(714) 57i-zz0o.t.nx(7r,r)5-73-2297.Liccrrscr5-i6g; 54 SUBMIT WITH PROPOSAL
NON.COLLUSION DECLARATION
Pool Maintenance Services
PW-24-144-SP
The undersigned declares :

I am the SocacSrur4 o, 5"'lt\ct F,asr
the party making the foregoing bid.

The bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation. The bid is genuine and not collusive or sham.

The bidder has not directly or indirectly induced or solicited any other bidder to put in a false or sham bid. The bidder has not directly or indirectly colluded, conspired, connived, or agreed with any bidder or anyone else to put in a sham bid, or to refrain from bidding. The bidder has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the bidder or any other bidder, or to fix any overhead, profit, or cost element of the bid price, or of that of any other bidder. All statements contained in the bid are true.

The bidder has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof, to effectuate a collusive or sham bid, and has not paid, and will not pay, any person or entity for such purpose.

Any person executing this declaration on behalf of a bidder that is a corporation, partnership, joint venture, limited liability company, limited liability partnership, or any other entity, hereby represents that he or she has full power to execute, and does execute, this declaration on behalf of the bidder.

I declare under penalty of perjury under the laws of the State of Cglifornia that the foregoing is [date], at
naA{ Vv*v(
that this declaration is executed on
(Signature)
(Print Name)
(Title)
atrtDage
55 ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
of that document.

State of California
County o1 Orange
on OL 113 1202a before me, Brandon U. Leon, Notary Public personally appeared
who proved to me on the basis of satisfactory evidenbe to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature
(insert name and title of the officer)
BRANDON U. IEON
Notary Public - Caljfornia
0range County
Commission + 2409574
tty Comm. Expirei Jut 29,2026
56 WORKER'S COMPENSATIONIEMPLOYER'S LIABILITY ENDORSEMENT

CITY OF FONTANA
8353 Sierra Avenue
Fontana, CA 92335
A. POLICY INFORMATION Endorsement# wc040306

1. 2.

J.

4. 5.

6. B. POLICY AMENDMENTS
ln consideration of the policy premium and notwithstanding any inconsistent statement in the policy to which this endorsement is attached or any other 6ndorsement attached thereto, it is agreed as follows:

Cancella,tion Notice. The insurance afforded by this policy shall not be suspended, voided, canceled, reduced in coverage or in limits except after thirty (30) days' prioi written notice by certified mail return receipt requested has been'given to ttre City of Fontana. Such notice shall be addressed as shown in the heading of t6is endorsement.

Waiver of Subrogation, The lnsurance Company agrees to waive all rights of subrogation Sgainst the City of Fontana, its elected or aplrointeci'officers, officials, igents anJ eriptoyees for losses paid under the terms of this policy'which arise from work perf6rmeo oy the Named lnsured for the City of Fontana.

SIGNATURE OF INSURER OR AUTHORIZED REPRESENTATIVE OF THE INSURER lnsurance Collpany,=.1X,:.!"',".,,,.'
Policy Term (From) 1011t2023 tioi_::=_
Endorsement Effective Date nhno23
Namgd lnSUfed seruice First
Address 615s6
Employer's Liability Limit (Covei;g" BL__jlgggjgg

1. 2.

C.

Carla Busick warrant that I have authority (print/type name) to :"Zn'i'o*'ffi ili; company.
original signature required on endorsement furnished to the city of Fontana.

ORGANIZATION:_A""*"dpartners of Ftorida dba GtcA sotutions TITLE: Asency presenr ADDRESS. 101 Plaza Real South Ste 201 Boca Raton FL 33432 -
TELEPHONE: aae-ser-oaoz
31 ll';r1; t,
57 -- a,conif GERTIFICATE OF LIABILITY INSURANGE DATE (MM/DDTYYYY} 2t20t2024
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTTFICATE OF INSURANCE DOES NOT CONSTTTUTE A CONTRACT BETWEEN THE |SSUING TNSURER(S), AUTHORTZED

REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER, IMPORTANT: lf the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. lf SUBROGATION lS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).

PRODUCER
GIGA Solutions, lnc.
101 Plaza Real South
Ste 201
Boca Raton FL33432
CONTI
NAME:
lj]3.*,F. ',u,
BBB-581-0807 I [#. *o,,
E.MAIL
ADDRESS: CenS(orqlqaSOlVeS.COm
INSURER(S) AFFORDING COVERAGE NAIC #
TNSURERA: State National lnsurance Companv, lnc 12831

INSURED
Service First
2510 North Grand Ave
Santa Ana CA92705
INSURER B :

INSURER C i
INSURER D :

INSURER E r
INSURER F :

CERTIFICATE NUMBER: REVISION NUMBER:

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAIVED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREIVENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES, LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

COMMERCIAL GENERAL LIABILITY
cLArvs-MADE [-l o""r*
GEN'L AGGREGATE LI[.4IT APPLIES PER:
'o''"' [l!F& [ .1.o"
BODILY lN. ,r I ANY AUTO o
oWNED T_l SCHEDULED
AUTOS ONLY I AUTOS HrRED fl NoN-owNED
AUTOS ONLY L-_--] AUTOS ONLY

WORKERS COMPENSATION

AND EMPLOYERS' LIABILITY

ANYPROPRIETOR/PARTN ER/EXECUTIVE
OFFICER/MEMEEREXCLUDED?
(Mandatory ln NH)
At\4X-082-0021-007
E,L, DISEASE. POLICY LIM
DESCRIPTIONOFOPERATIONS/LOCATIONS/VEHICLES (ACORDlOl,AddltlonalRemarksschedulo,maybsattachedlfmorespacoisrequired) Waiver of subrogation applies in favor of the certificate holder as required by written 6ontract. @ 1988-2015 ACORD CORPORATTON.

The ACORD name and logo are registered marks of ACORD

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE W|LL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.
(r^lr* ,6r^'rr*,t
All rights reserved.

ACORD 25 (2016/03)

AUTOMOBILE LIABILITY
City of Fontana
8353 Sierra Avenue
Fontana CA 92335
58 WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY wc 04 03 06 (Ed.01-2008)
WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT. CALIFORNIA We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against the person or organization named in the Schedule. (This agreement applies only to the extent that you perform work under a written contract that requires you to obtain this agreement from us.) You must maintain payroll records accurately segregating the remuneration of your employees while engaged in the work described in the Schedule.

The additional premium for this endorsement shall be 5 o/o of the California worker's compensation premium otherwise due on such remuneration,
Person or Organization
Schedule
Job Description
Any Person or organizations as required by
written contract.

This endorsement changes the policy to which it is attached and is effective on the date issued unless othenruise stated. (The information below is required only when this endorsement is issued subsequent to preparation of the policy) Endorsement Effective: 1010112023 File No.: 1
lnsured:Service First
lnsurance Company: State National lnsurance Company
Endorsement: WC 04 03 06
Edition: 0'l/08
Carrier Policy No.: AMX-082-0021-007
Premium:

Carrier No.:

Agency: AmWINS Specialty Casualty Solutions, LLC / 1
Countersigned by:
4/L@
59 AUTOMOBILE LIABILITY ENDORSEMENT

CITY OF FONT-ANA
8353 Sierra Avenue
Fontana, CA 92335
A.

4. Named 5. Address of Named
One Occurrence/Aggregate
Policy
F-o'r'r *-{':}-
An.n e L
I z;as - I zs l- 6.

7. unless otherwise specified):
t S ifzr_
B. POLICY AMENpMENTS
This endorsement is issued in consideration of the policy promium. Notwithstanding any inconsistent statement in the policy to which this endorsLment is attached or any otfter ' endorsement attached thereto, it ii agreed as follows:

1. INSURED- The City of Fontana, its elected or appointed officers, officials, consulting engineers, employees and volunteers are included as insurer. with regard to oamages and defense of claims arising from: the ownership, operation, maintenince, uie, loading or unloading of any auto owned, leased, irireb or norioweA by tL; trirr"O lnsured, regardless of whether liability is attributable to the Named lnsureO or a- combination of the Named lnsurerJ and the City of Fontana, its elected or a[pointeo officers, officials, employees, consulting engineers or volunteors.

2. coNTRlBUTtoN Nor REeulRED. -As respects work performed by the Nar lnsured for or on behalf of the C'{rr of Fontana, the insuiancr atforrJecl ny ti:: shall: (a) be-primary insuranno .:cts rxa city of Fontana, its elect6r, ,r appointed ott1cg1s,,_o!i9.ials, er, rees, con. ' , ongineers or volunteers; oi
,. stand in an unbroken chain of coverage excess of the-trtamed lnsured,s orimarv coverage' ln either 3v9lt, any other insurance maintained by the City of ion-taira, its elected or appointed officers, officials, employees or volunteers shallbe in excess ot this insurance and shall not contrlbute with it.

3. scoPE oF covERAGE, This policy, if primary, affords ooverage to the Named lnsured at least as broad as:
(1) lnsurance Services Office form number CA 00001 (Ed,1lTg), Code 1 (,,any auto',) and endorsement CA 002b. (2) lf excess, affords coverage which is at least as broad as the primary insurance forms referenced in the preceding section (1). 4' SEVERABILITY OF INTEREST. The insurance affortJed by this pr:licy applies separately to each insured who is seeking coverage or against whom a ctiim ls mua" or a suit is brought, except with respect to tfre Cofrpany'i limit of f ia5itity. - ' -
Retention
#n<a= ct-Co ,{ \
29fPagre
POLICY INFORMATION rr lY

1. lnsurance Company
Term (From) l'1 --l -2 t\ >,a
Endorsement
60 5
6,
PROVISIONS REGARDING I .uJRE:'S DUTIES AFTER ACC|I' .:r,:. Loss. Any failure to comply witrr reporting pruvrsions of the policy shall not , '-
coversge provided to the City of Fontana, its elected or appointed-o{ficer, officiars, employees, consulting engineers or volunteers.

CANCELLATION NortcE. The insurance afforded by this poticy shall not be suspended, voided, canceled, reduced in coverage oiin limits except after thirty (30) days' prior written notice by cortified mail return r6ceipt requesteci has been giulri to' the City of Fontana. Such notice shall be addressed as shown in the headin! of this endorsement.

INCtDENT AND QLATM REPORT|N-c _PROCED_URE
lncidents and claims are to be reported to the insurer at:
t^-- \ (uompany) -.
%
\&-r"b 8.,.r-.1 r3J)-il.I S*{- t6-b
lSiree
\[*" Arv 1a8*{
(
(State) (Zip Code) I t q Szb: aol
(Telephone Number)
D. SIGNATURE OF INSURER OR AUTHORIZED REPRESENTATIVE OF THE INSURER PJr.frarrant that I have authority (print/type name)to bind the ny and bJ my lignature hereon do so bind this coinpany.

Original Signature required on endorsement furnishecl to the City of Fontana. oRGANtzA,o*, Sto}*-l* ,-*, .,r.u,_ A \- ,,.*-: R +
eooness: I310 !Srq.-a B[uJ . TELEpHoNE; 7 t + -S] L, -1ba1 G"";& / s-D
[u{!-e r$.,.., C+ { ; P3"s
30 lPage
61 Ao. ,OR CERTIFICATE OF LIABILITY INSURANCE DATE (MMTOD/YYYY} 02119t2024

THIS GERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDEB, THIS

CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF TNSURANCE DOES NOT CONSTTTUTE A CONTRACT BETWEEN THE lSSUtNc TNSURER(S), AUTHORTZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

IMPORTANT: lf tho cefiiflcate holdsr lE an ADDITIONAL INSURED, the policy(ies) muet be endorssd. lf SUBROGATION lS WAIVED, subiect to the terms and conditions of tho policy, cortain pollclos may require an endorsemont. A statement on thls cortilicate does not confer rlghts to tho certlllcate holder ln llou ol such endorsement(s).

PRODUCER

STATE FARM INSURANCE
SfafeFarm 1370 BREA BLVD STE. 150
& FULLERTON,CA92835
i[iils'1JoEY MoNTGOMERY
6ltng f-,,.zra-526-t'0ot I p[ l",.ii+-sio-oC+e
Ei}[flErr. ioryOJoEyMoNTGOM ERy.coM
rNsuRER(S) AFFORDTNO COVEnAGE NAIC #
1115g69g g.State Farm Mutual Automobile lnsurance Company 26178 rNsuRED SERVICE FIRST
DBA: SERVICE FIRST
2510 N GRAND AVE SUITE 110
SANTA ANA, CA 92705
INSURER B:

INEURERC:

IN.SURER D :

INSURERE: _
COVERAGES CERTIFICA REVISION NUMBER:

THIS IS TO CERTIFY THAT THE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED INDICATED. NOTWTHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WTH RESPECT TO WHICH THIS

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDEO BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES, LIMITS SI.IOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

COMMERCIAL OENERAL UABIUW
.LATMS-MA,E [-] o..r^
AGGREGATE LIMIT APPLIES FER:
'orc' [.-l 5E8r f_l 'o.

AUTOMOBILE LIASIUTY

ANY AUIO
ALLOWNED I \,'I SCHEDULED AurosUTOS La-l/_\-l AurosUIOS I \,/ I NON-OWNED
HTREO AUTOS I 1] nuros
678-0936-F07-75
BODILY ,NJURY (Por accid6nt)
AND EMPLOYERS' LIAB|LTTY Y r N
ANY PROPRIEI'OR/PARTNER/EXECUTIV€
OFFICER/MEMBER EXCLUDED?
(Mandatory ln NH)
ll y€s, describs under r.-*^..*.^;l;
DESCRIPTION OF OPERAT|ONS i LOCATIONS, VEHICLES (AGORD 101, Addltlonal ti .re, mar, '1a4hed tf more space i6 requtred) This lnsurance shall apply as Primary and Non-Contributory per attached endorsement. Waiver of Subrogation for Auto liability: See atiached Endorsement, ,TE

CITY OF FONTANA
8353 Sierra Avenue
Fontana, CA 92335

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE IIUII}I THE POLIGY PROVISIONS.

AUIIhRIZED REPRESENTATIVE r l\ '-Yri.^, & /rd.M IiJ.r rrnr r^r\ ACORD 25 (2014101) The ACORD name and logo ar
@ 1988-2014 AcoRD CqltoRATloN. A\ rilhts-roserved,
e registered marks of ACORD ' r001a86 ,s)6is.e o2-o4-2o14 62 SECTION II ADDITIONAL INSURED ENDORSEMENT
Policy No.: 678-0936-FO7-75
Named lnsured:

SERVICE FIRST
DBA: SERVICE FIRST
2510 N GRAND AVE SUITE 110
SANTA ANA, CA 92705
Additiona! lnsured (include address):

The city of Fontana, its elected or appointed officers, officials, consulting engineers, employees and volunteers are included as insurers with regard to damages and defense of claims arising from: the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Named lnsured, regardless of whether liability is attributable to the Named lnsured or a combination of the Named lnsured and the City of Fontana, its elected or appointed officers, officials, employees, consulting engineers or volunteers.

CITY OF FONTANA
8353 Sierra Avenue
Fontana, CA 92335
WHO lS AN INSURED, under SECTION ll DESIGNATION OF INSURED, is amended to inctude as an insured the Additional insured shown above, but only to the extent that liability is imposed on that Additional lnsured solely because of your work performed for that Additional lnsured shown above.

Any insurance provided to the Additional lnsured shall only apply with respect to a claim made or a suit brought for damages for which you are provided coverage.

The Primary lnsurance coverage below applies only when there is an "X" in the box. m Primary tnsurance. The insurance provided to the Additional lnsured shown above shall be Primary insurance. Any insurance carried by the Additional lnsured shall be noncontributory with respect to coverage provided to you.

All other policy provisions apply.

FE-6609 Printed in U.S.A.
63 FE-6671
PAGE 1. OF ].

WAIVER OF TRANSFER OF RIGHTS OF RECOVERY AGAINST

OTHERS TO US

SCHEDUTE
Policy Number: 678-0936-F07-75
Named lnsured:

SERVICE FIRST
2510 N GRAND AVE SUITE 110
SANTA ANA, CA 92705
Name and Address of Person or Organization:

CITY OF FONTANA
8353 Sierra Avenue
Fontana, CA 92335
The following is added to Paragraph t 0.b of sECTtoN I AND sEcTtoN il - coMMoN CONDITIONS:
we waive any right of recovery we may have against the person or organization shown in the schedule because of payments we make for injury or damage arising out of:
a. Your ongoing operations; or
b. Your work done under contract with that person or organization and included in the productscompleted operations hazard.

This waiver applies only to the person or organization shown in the schedule.

All other policy provisions apply
FE-6671.

O, Copyright, State Farnr Mutual Automobile Insurance Company, 20Og lncludes copyrighted nraterial of lnsurance Services Office, tnc, wiIh its permission FE-6671(04-09)
Printed in USA
64 CITY OF FONTANA

GENERAL LIABILITY ENDORSEMENT

CITY OF FONTANA
, 8353 Sierra Avenue
Fontana, CA 92335
A. POLICY INFORMATION Endorsement#
lnsurance Company_WestchesterFirelnsuranceCompany__; Policy No, G74417115 001 PolicyTerm (From) 81112023 (To) Bl1l2o24
Endorsement Effective Date
N a m ed I n su red_seryice_Fjrsl__
Address of Named lnsured , cA,92705
Limit of Liability Any One Occurrence/Aggregate
Deductible of Self-lnsured Retention (Nil unless rotherwise specified): $ 5.ooo _ Coverage is equivalent to:

Comprehensive General Liability Form GLOO02 (Ed. 1173)
Commercial General Liability "Occurrence" form CGOOOI
1,000,000
Bodily lnjury and Property Damage Coverage is:
1,000,000 occurrence

9. Description of Project:-
Note: lf "Claims-made" coverage is used to satisfy the insurance requirement, the coverage will be required to be maintained for six months following completion of the project. lf commercial general liability form or equivalent is used, the general aggregate must apply separately to this location/project or the general aggregate must be twice the occurrence limit.

B. POLICY AMENDMENTS
This endorsement is issued in consideration of the policy premium. Notwithstanding any inconsistent statement in the policy to which this endorsement is attached or any other endorsement attached thereto, it is agreed as follows:

1. INSURED. As respects any work performed on the above-described Project, the City of Fontana, its elected or appointed officers, officials, employees, consulting engineers, and volunteers are included as insurers with regard to damages and defense of clarms arising from: (a) activities performed by or on behalf of the Named lnsured, (b) products and completed operations of the Named lnsured, or (c) premises owned, leased or used by the Named lnsured.

2. CONTRIBUTION NOT REQUIRED. As respects: (a)work performed by the Named lnsured on the above-described Project for or on behalf of the City of Fontana; or (b) products sold by the Named lnsuied to the City of Fontana for use on the Project; or '
(c) premises leased by the Named lnsured from the City of Fontana, its elecied or

1. 2,
2 4.

5. 6.

7. 8.
26 lPage
65 appointed officers, officials, employees, consulting engineers, or volunteers; oi stand in an unbroken chain of coverage excess of the Named lnsured's schedule underlying primary coverage. ln either event, any other insurance maintained by the City of Fontana, its elected or appointed officers, officials, consulting engineers, or volunteers shall be in excess of this insurance and shall not contribute with it.

3. SCOPE OF COVERAGE, This policy, lf primary, affords coverage at least as broad as:
(1) lnsurance Services Office form number GL 0002 (Ed. 1/73), Comprehensive General Liability lnsurance and lnsurance Services Office form number GL 0404 Broad Form
Comprehensive General Liability endorsement; or
(2) lnsurance Services Office Commercial General Liability Coverage, "occurrence" form CG 0001;or (3) lf excess, affords coverage which is at least as broad as the primary insurance forms referenced in the preceding sections (1) and (2).
4, SEVERABILITY OF INTEREST. The insurance afforded by this policy applies separately to each insured who is seeking coverage or against whom a claim is made or a suit is brought, except with respects to the Company's limit of liability. 5, PROVISIONS REGARDING THE INSURED'S DUTIES AFTER ACCIDENT OR LOSS.

Any failure to comp.ly with reporting provisions of the policy shall not affect coverage provided to the City of Fontana, its elected or appointed officer, officials, employeei, consulting engineers or volunteers.

6. CANCELLATION NOTICE, The insurance afforded by this policy shatl not be suspended, voided, canceled, reduced in coverage or in limits dxcept after thirty (30) days' prior written notice by certified mail return r6ceipt requested has been given to'the City of Fontana. Such notice shall be addressed asshown inthe headin{of this endorsement.

C. INCIDENT AND CLAIM REPORTING PROCEDURE
lncidents and claims are to be reported to the insurer at:

ATTN:
._. . Stacy Williams, ARM, CRTS (Titte) '
HUE Intemational Insurance Services Inc (Department)
(Company)
Suite 600
rt Beaclr, CA92660 (city) (stare) (zip co@ 3578
(Telephone Number)
2TlPase
66 D. SIGNATURE OF INSURER OR AUTHORIZED REPRESENTATIVE OF THE INSURER I, Jayson Moser warrant that I have authority (print/type name) to bind the below listed insurance company and by my signature hereon do so bind this Original Signature required on endorsement furnished to the City of Fontana.

ORGANIZATION: TITLE;__
ADDRESS: TELEPHONE:
23lPage
7/o-oo

REPRESENTATIVE
67 SUBMIT WITH PROPOSAL

2.4 PRICING
Please provide at minimum the MONTHLY pricing for the following items in your proposal:
(This will include daily, bi-weekly, monthly, quarterly, and annual maintenance services) Swimming Pool
Maintenance Services
Swim Season Monthly Price
(May 1 st-September { Sth)
Off Season Monthly Price
(September 1 6th-April 30th)
Don Day Neighborhood Center $ Btbq.* $ bxtry>
Fontana Park Aquatics Center $ 1.g gsl .o $ 2l os1*
Heritage Neighborhood Center $ tl ?-bl e $ {t30*
Martin Tudor Jurupa Hills
Regional Park $ 1-go0? ?r00 e
$
Miller Fitness Center $ oooo* $ bgzl*
TOTAL r 53, s,tB
*
$ t-lt, ?t1 e
Additional/Subtracti ng ltems
Certified Scuba Diver, per hour $ LIO*
Emergency Services, per hour $ \q{?
Additional Labor, per person per hour $ thtg
Additional Supervisor, per person, per hour $ rq{oh
13 lPage
68 Ranking Score
City-Wide Pool Maintenance Services
PW-24-144-SP
Service First 88%
Santa Ana, CA
USA Construction 38%
Los Angeles, CA
Pool Management Not Responsive
Sandy Springs, GA
69 City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-2916 Agenda Date: 4/9/2024
Agenda #: D. Category: Consent Calendar
FROM:

Public Works
SUBJECT:

Award a Construction Contract for the McDermott Soccer Field Iron Fencing Removal and Installation Project (PW-24-139-CC)
RECOMMENDATION:

Award construction bid and authorize the City Manager to execute a construction contract with Dash Construction Company, Inc. for the McDermott Soccer Field Iron Fencing Removal and Installation Project (PW-24-139-CC) in the amount of $172,400.00 and authorize 10% contingency in the amount of $17,240.00.

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

DISCUSSION:

The existing original wrought iron perimeter fencing at McDermott Soccer Park has deteriorated to the point of needing replacement. Staff recently solicited bids for its removal and the installation of new wrought iron fencing.

Bids for this contract were opened on February 15th, 2024 at 2:00 pm. A total of six (6) bids were received ranging from $172,400.00 to $329,288.00. Dash Construction Company, Inc. is the lowest bidder in the amount of $172,400.00 The Engineer’s estimate for this work was $195,000.00.

FISCAL IMPACT:

The fiscal impact associated with the approval of this item is $172,400.00 for the full term of construction and $17,240 for construction contingency. These amounts are included in the FY 2023- 2024 available budget in Org# 39637202.8130.

MOTION:

Approve Staff Recommendation
City of Fontana Page 1 of 1 Printed on 4/3/2024
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Project Location
Fencing
Location
71 Bid Results
McDermott Soccer Field
Fencing Installation Project
PW-24-139-CC
Dash Construction Company $172,400.00
Woodland Hills, CA
Irvine Fence Inc. $178,781.00
Anaheim, CA
AB Fence Company, Inc. $184,724.00
Beaumont, CA
Red Hawk Services, Inc. $211,989.00
Perris, CA
J & A Engineering Corp. $217,200.00
Azusa, CA
Harris Steel Fence Co. Inc. $329,288.00
Los Angeles, CA
72 City of Fontana
McDermott Soccer Field Iron Fencing Removal and Installation Project (PW-24-139-CC), bidding on 02/15/2024 2:00 PM (PST)

Printed 02/20/2024
PlanetBids
73 City of Fontana
McDermott Soccer Field Iron Fencing Removal and Installation Project (PW-24-139-CC), bidding on 02/15/2024 2:00 PM (PST)

Printed 02/20/2024
PlanetBids
74 City of Fontana
McDermott Soccer Field Iron Fencing Removal and Installation Project (PW-24-139-CC), bidding on 02/15/2024 2:00 PM (PST)

Printed 02/20/2024
PlanetBids
75 City of Fontana
McDermott Soccer Field Iron Fencing Removal and Installation Project (PW-24-139-CC), bidding on 02/15/2024 2:00 PM (PST)

Printed 02/20/2024
PlanetBids
76 77
78 79
80 81
82 83
84 City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-2917 Agenda Date: 4/9/2024
Agenda #: E. Category: Consent Calendar
FROM:

Engineering
SUBJECT:

Approve an Agreement with the Inland Empire Utilities Agency, Speedway SBC Development, LLC, and San Bernardino County for Wastewater Services for Speedway SBC Development, LLC RECOMMENDATION:

Approve and authorize the City Manager to execute an agreement with the Inland Empire Utilities Agency (“IEUA”), Speedway SBC Development, LLC, and San Bernardino County (“County”) for wastewater services for Speedway SBC Development, LLC.

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

DISCUSSION:

The Speedway Commerce Center II comprises the redevelopment of a portion of the existing Auto Club Speedway property, encompassing approximately 433 acres of the 522 acres of the Speedway property located in unincorporated San Bernardino County. The project includes 6.6 million square feet of high-cube logistics/e-commerce uses, 261,360 square feet of ancillary commercial uses, and future parking areas. The project is situated north of San Bernardino Avenue and west of Cherry Avenue.

As part of the project conditions required by the County, the developer is required to provide sewer services to the project. The developer designs and coordinates with IEUA to create an internal sewer system within the private property and connects the sewer directly to the IEUA system. The maintenance and operation of the proposed sewer system will remain with the County.

According to the Regional Contract with the contracting agency with IEUA, the contract agency can only administer the monthly wastewater billing. Since the County is not part of the contracting agency, the City will provide the billing services for this project based on the rate structure established by the City and IEUA.

FISCAL IMPACT:

There is no fiscal impact to the City since the current rate structure includes compensation of administration hours.

City of Fontana Page 1 of 2 Printed on 4/3/2024
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File #: 21-2917 Agenda Date: 4/9/2024
Agenda #: E. Category: Consent Calendar
MOTION:

Approve staff recommendation.

City of Fontana Page 2 of 2 Printed on 4/3/2024
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AGREEMENT FOR THE PROVISION OF SEWER SERVICE
THIS AGREEMENT FOR THE PROVISION OF SEWER SERVICE (“Agreement”) is entered into this ____ day of _______________, 202__ (“Effective Date”), by and between INLAND EMPIRE UTILITIES AGENCY, a municipal water district (“IEUA”), SPEEDWAY SBC DEVELOPMENT, LLC, a Delaware limited liability company (“Hillwood”), CITY OF FONTANA (“City”), and SAN BERNARDINO COUNTY (“County”).

RECITALS
A. IEUA is a municipal water district organized and existing pursuant to Sections 71000 et seq. of the California Water Code and is authorized to provide wastewater treatment and recycled water services to properties in the IEUA service area.

B. The City of Fontana is a general law city located within the San Bernardino County, State of California.

C. Fontana Water Company, a division of San Gabriel Valley Water Company, a California corporation, is a public utility water company subject to regulatory jurisdiction of the California Public Utilities Commission doing business in the San Bernardino County, with its principal place of business being 15966 Arrow Route, Fontana, California, and is authorized to provide public utility water service, including service of recycled water, to its customers, which are located within its service area as authorized and approved by the California Public Utilities Commission.

D. San Bernardino County Department of Public Works – Special Districts, is a Department of San Bernardino County that provides municipal-type services to unincorporated areas of San Bernardino County including, but not limited to, sewer services.

E. California Speedway, LLC, a Delaware limited liability company, successor-ininterest by conversion from California Speedway Corporation, a Delaware corporation, formerly known as The California Speedway Corporation, a Delaware corporation, successor-by-merger to Speedway Development Corporation, a California corporation (“Speedway”), IEUA, the City of Fontana, and the Fontana Water Company are parties to that certain Agreement for the Provision of Sewer and Recycled Water Service dated November 24, 2015 (the “Speedway Agreement”), pursuant to which, IEUA agreed to provide certain sewer and recycled water services to property owned by Speedway, commonly known as the Auto Club Speedway of Southern California, more particularly described in the Speedway Agreement (the “Speedway Property”).

F. Hillwood and Speedway are parties to that certain Purchase and Sale Agreement and Joint Escrow Instructions dated June 15, 2021 (“Purchase Agreement”), pursuant to which, Speedway has agreed to sell, and Hillwood has agreed to purchase, that certain portion of the Speedway Property more particularly described in Schedule “1” attached hereto (the “Hillwood Property”).

G. Hillwood desires that, after Hillwood acquires the Hillwood Property, IEUA, through City, continues to provide wastewater services to existing and future systems located on the Hillwood Property, and IEUA is willing to do the same, all upon the terms and conditions set 87 Agreement for the Provision of Sewer Service
March 2024

forth in this Agreement, the Regional Contract, and IEUA’s Ordinance No. 111, as amended from time to time.

NOW, THEREFORE, in consideration of the foregoing Recitals, which Recitals are incorporated herein by this reference, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and for the mutual covenants contained herein, the Parties hereby agree as follows:

I. DEFINITIONS

1.1 “City” shall mean the City of Fontana.

1.2 “Community Facilities District” shall mean a community facilities district formed pursuant to the Mello-Roos Act of 1982, as amended, with boundaries coterminous with the Speedway Property and which is authorized to finance the operation and maintenance of the Hillwood Sewer System and Permanent System.

1.3 “CSI” shall mean California Steel Industries.

1.4 “Hillwood” shall mean Speedway SBC Development, LLC.

1.5 “Hillwood Sewer System” shall mean the sewer system that Hillwood shall construct on the Hillwood Property that shall receive and transmit wastewater to the Permanent System.

1.6 “IEUA” shall mean the Inland Empire Utilities Agency, a Municipal Water District.

1.7 “IEUA Lift Station” shall mean that lift station facility owned by IEUA located on San Bernardino Avenue and depicted on Exhibit “A” of this Agreement.

1.8 “NAPA Properties” shall mean those four properties which are identified by the following San Bernardino County Assessor’s Parcel Numbers: 0229-291-39-0-000; 0229-291-34- 0-000; 0229-291-40-0000; and 0229-291-31-0000; which are understood to be currently owned by Almeria Holdings, LLC, a California limited liability company (“Almeria”) (as to the first two parcels), McLeod Properties, Fontana LLC, a California limited liability company (“McLeod”) (as to the third parcel), and West Valley MRF, LLC, a California limited liability company (“Burrtec”).

1.9 “Party” or “Parties” shall mean an entity, individually, or the entities, collectively, that are bound by and have executed this Agreement.

1.10 “Permanent System” shall mean that certain gravity sewer pipe for the transmission of wastewater designed, constructed, owned and operated by IEUA as depicted on Exhibit “B” of this Agreement.

1.11 “Prologis” shall mean PAC Operating Limited Partnership, a Delaware limited partnership, and CCG Ontario Operations, LLC collectively. 88 Agreement for the Provision of Sewer Service
March 2024

1.12 “Regional Contract” shall mean the Regional Sewage Service Contract with Exhibits between IEUA and the City of Chino Hills, Cucamonga Valley Water District, City of Fontana, and City of Upland (as approved on November 1, 2023) as amended from time to time or successor agreements, as depicted on Exhibit “C” of this Agreement.

1.13 “Ordinance No. 111” shall mean the provisions for wastewater treatment services to Cities of Chino, Ontario, and Montclair; regulations governing the collection, treatment, and disposal of sewage to the IEUA Regional Sewerage System, as amended from time to time, as depicted on Exhibit “D” of this Agreement.

1.14 “Related Contracts” shall mean the following contracts: (a) this Agreement, (b) the Speedway Agreement, (c) the Agreement for the Provision of Sewer and Recycled Water Service between IEUA, the City, the Water Company (defined below) and CSI dated November 24, 2015, (d) the Agreement for the Provision of Sewer Service between IEUA, the City, and Prologis (defined above) dated November 24, 2015, and (e) the Memorandum of Understanding between the City and IEUA dated November 24, 2015, all of which are for the provision of wastewater services.

1.15 “Special Districts” shall mean the San Bernardino County Department of Public Works – Special Districts, a Department of San Bernardino County that provides municipal-type services to unincorporated areas of the County including but not limited to sewer services.

1.16 “Speedway” shall mean California Speedway, LLC, a Delaware limited liability company, successor-in-interest by conversion from California Speedway Corporation, a Delaware corporation, formerly known as The California Speedway Corporation, a Delaware corporation, successor-by-merger to Speedway Development Corporation, a California corporation.

1.17 “Water Company” shall mean the Fontana Water Company.

1.18 “Watermaster” shall mean the Chino Basin Watermaster.

II. WASTEWATER SERVICES

2.1 Permanent System. IEUA designed and caused to be constructed the Permanent System as depicted in Exhibit “B” attached hereto. Portions of this Permanent System shall be used by the Hillwood Property as an interim sewer system while the Hillwood Sewer System is being constructed.

2.2 Hillwood Sewer System.
(a) Construction - Hillwood shall construct the Hillwood Sewer System located on the Hillwood Property up to the point of connection to the Permanent System depicted on Exhibit “B”.
(b) Ownership - Hillwood and County shall cooperate in the formation of the Community Facilities District, or similar district or entity. Once formed, the County or the applicable special district or entity, shall own, operate, and maintain the Hillwood Sewer System, once it is dedicated to and 89 Agreement for the Provision of Sewer Service
March 2024

accepted by Special Districts. Dedication and acceptance of the Hillwood Sewer System by Special Districts shall be a condition precedent to connection of the Hillwood Sewer System to the Permanent System. (c) Operations and Maintenance - From and after dedication of the Hillwood Sewer System by Hillwood to and acceptance by Special Districts, Special Districts shall operate and maintain the Hillwood Sewer System. The operation and maintenance of the Hillwood Sewer System shall include, but is not limited to the following:
(i) Ongoing collection system cleaning, inspection, monitoring, compliance, and reporting to ensure proper maintenance, of the Hillwood Sewer System to minimize sanitary sewer overflows.

Special Districts shall be fully responsible for managing any sanitary sewer overflows and shall report any sanitary sewer overflows directly to the pertinent regulatory agencies. (ii) In the event of planned expansion of the Hillwood Sewer System, provide City and IEUA with notice and reasonable information for growth forecasting purposes.
(d) Pretreatment and Source Control - Pretreatment and source control equipment and measures to ensure that wastewater discharged to the Permanent System meets the requirements of IEUA’s Regional Wastewater Ordinance and the requirements of IEUA’s Regional Pretreatment and Source Control program shall be the responsibility of the property owners/business owners within the Hillwood Commerce Center Development. City of Fontana shall not be responsible for assisting Special Districts with enforcement of the local and federal pretreatment and source control regulations. The Special Districts shall have pretreatment and source control program authority for inspections and monitoring over users discharging to the Permanent System. Individual property owners and/or tenants will be subject to all applicable rules and regulations, including those of Special Districts and IEUA for sewer service and must supply information on Special Districts wastewater survey.
(e) Waste Regulation - The Permanent System is to be used for domestic waste water only and Special Districts operating and maintaining the Hillwood Sewer System shall ensure that the wastewater from the Hillwood Sewer System discharging into the Permanent System shall be in compliance with all applicable local, state, and federal laws, ordinances, and regulations, including those contained in the Regional Contract as set forth in Exhibit “C”, and Ordinance No. 111 as set forth in Exhibit “D” attached hereto.

IEUA may request additional information from Special Districts at any time to ensure compliance is being met.
90 Agreement for the Provision of Sewer Service
March 2024

2.3 Connection Fees. Hillwood shall be required to pay sewer connection fees (“IEUA Connection Fee(s)”) per the requirements set forth by the Regional Contract, IEUA’s ordinances, and any other applicable IEUA governing documents. IEUA Connection Fees shall be collected and remitted to IEUA by City per the procedures set forth in the Regional Contract, IEUA’s ordinances, and any other governing documents. Special Districts shall coordinate and submit any data necessary in order for City to complete fee collection procedures and direct applicants to City for connection fee collection. Hillwood will not request a certificates of occupancy for any building until confirmation that full IEUA Connection Fees has been received related to such building by the City. City and IEUA shall be copied on all correspondence regarding IEUA Connection Fees.

Any changes in use or tenant improvement at Hillwood and Speedway that change the quantity and/or quality of wastewater discharged to the Hillwood Sewer System and Permanent System shall require an evaluation by the City and Special Districts to ensure the IEUA Connection Fees and ongoing monthly fees are properly assessed. IEUA may choose to conduct an audit of the IEUA Connection Fee collection procedures from time to time as authorized through the Regional Contract and IEUA’s Ordinance No. 111, as amended from time to time.

2.4 User Fees. Hillwood shall pay monthly wastewater user fees as billed by City in accordance with the rate structure established by City for such services for similarly situated outside of City users. Hillwood shall provide all requested data to City as required to complete the monthly wastewater billing. The current rates are subject to change by action of the City’s City Council.

III. TERM

3.1 Term of Agreement. This Agreement shall begin on the date that Hillwood acquires any portion of the Hillwood Property and shall continue for a term of sixty (60) years.

3.2 Termination. This Agreement may be terminated as follows: (a) by Hillwood as related to the services which are the subject of Article II, upon a material breach by IEUA or the County; (b) by IEUA as related to the services which are the subject of Article II, upon a material breach by Hillwood or County; and (c) by the County as related to the services which are the subject of Article II, upon a material breach by IEUA or Hillwood.

A breach of this Agreement shall only be considered a material breach after a Party has delivered to the other Party a Notice of Intent to Declare a Material Breach, and the breaching Party has received a reasonable opportunity to cure the breach (not to exceed sixty (60) days) but has failed or refused to do so within that time.

IV. INSURANCE

4.1 Insurance. Hillwood, City, and IEUA shall each provide insurance so as to provide protection as described in this Agreement. The Parties shall furnish to each other certificates issued by insurance companies reasonably acceptable to one another showing policies carried and the limits of coverage as follows:
(a) Hillwood and IEUA shall maintain Commercial General Liability Insurance, including but not limited to Products and Completed Operations 91 Agreement for the Provision of Sewer Service
March 2024

and Contractual Liability, as applicable to their obligations under this Agreement with limits not less than:
(i) Personal Injury - $1,000,000 per occurrence with an aggregate of $2,000,000; and
(ii) Property Damage - $1,000,000 per occurrence with an aggregate of $2,000,000.
(b) Each Party shall maintain Automobile Liability Insurance with limits not less than:
(i) Bodily Injury - $1,000,000 each accident; and
(ii) Property Damage - $1,000,000 each accident.
(c) Hillwood, City, and IEUA shall maintain Workers’ Compensation Insurance for their respective employees to the extent of statutory limits and Occupational Disease and Employer’s Liability Insurance for not less than $1,000,000.
(d) San Bernardino County is a self-insured public entity. (e) City of Fontana is self-insured public entity.

4.2 Certificates of Insurance. Each Party shall provide certificates of insurance to the other during the term of this Agreement certifying that such coverages shall remain in effect for the duration of this Agreement; provided, however, that IEUA shall deliver certificates of insurance to Hillwood during the term of this Agreement with a satisfactory loss payable endorsement naming Hillwood as a loss payee, or in the case of any real property, an additional insured, such endorsements to contain a waiver of warranties. All certificates of insurance shall state that prior to cancellation, non-renewal or any material change, thirty (30) calendar days written notice shall be given to IEUA. Failure of IEUA or Hillwood to enforce the minimum insurance requirements listed above shall not relieve Hillwood or IEUA of responsibility for maintaining these coverages.

4.3 Occurrence Policy. All insurance required hereunder shall provide insurance for occurrences from the Effective Date hereof throughout the later of the expiration or termination hereof.

V. INDEMNITY

5.1 Indemnification by Hillwood. Hillwood shall fully indemnify, save harmless, and defend IEUA, City, County, the Community Facilities District and any of their officers, directors, employees, contractors, and agents or assignees from and against any and all costs, claims, and expenses incurred by such parties in connection with or arising from any claim by a third-party for physical damage to or physical destruction of property, or death of or bodily injury to any person, but only to the extent caused by the negligence, gross negligence, or willful misconduct of 92 Agreement for the Provision of Sewer Service
March 2024

Hillwood or it agents or employees or others under the control of Hillwood in performing any of the conditions and covenants of this Agreement.

VI. GENERAL PROVISIONS

6.1 Amendments. This Agreement may only be amended, modified, changed, or rescinded in a writing signed by each of the Parties hereto.

6.2 Interpretation. The language of this Agreement shall not be construed for or against any Party, as each Party has participated in the drafting of this Agreement and had the opportunity to have its counsel review it. Whenever the context and construction so requires, all words used in the singular shall be deemed to be used in the plural, all masculine shall include the feminine and neuter, and vice-versa. Unless the context otherwise requires, references herein: (i) to Sections and Exhibits mean the Sections of and the Exhibits attached to this Agreement; and (ii) to an agreement, instrument, or other document means such agreement, instrument, or other document as amended, supplemented, and modified in writing from time to time to the extent permitted by the provisions thereof and by this Agreement.

6.3 Headings. The headings of the Sections hereof are inserted for convenience only and shall not be deemed a part of this Agreement.

6.4 Partial Invalidity. If any one or more of the covenants or agreements provided in this Agreement to be performed should be determined to be invalid or contrary to law, such covenant or agreement shall be deemed and construed to be severable from the remaining covenants and agreements herein contained and shall in no way affect the validity of the remaining provisions of this Agreement.

6.5 Counterparts; Electronic Signatures. This Agreement may be executed in several counterparts, all or any of which shall be regarded for all purposes as one original and shall constitute and be but one and the same instrument. Furthermore, this Agreement may be executed and delivered by facsimile, DocuSign, AdobeSign or other electronic transmission. The Parties intend that faxed or electronic (e.g., .pdf format) signatures constitute original signatures and that a faxed or electronic copy or counterparts of this Agreement containing the signature (original, faxed or electronic) of a party is binding upon that Party. The Parties intend to be bound by such electronic signatures and waive any defenses to the enforcement of the terms of this Agreement based upon the use of such electronic signatures

6.6 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California.

6.7 Venue. The Parties agree that the venue of any action or claim brought by any party to this Agreement will be the Superior Court of California, San Bernardino County, San Bernardino District.

6.8 Notices. Any notices required or permitted to be given hereunder shall be given in writing and shall be delivered: (a) in person; or (b) by Federal Express or another reputable commercial overnight courier that guarantees next day delivery and provides a receipt; and (c) such notices shall be addressed as follows:
93 Agreement for the Provision of Sewer Service
March 2024

If to IEUA:

Inland Empire Utilities Agency
Attn: General Manager
6075 Kimball Avenue
Chino, CA 91708
If to Hillwood:

Speedway SBC Development, LLC
Attn: Scott Morse
901 Via Piemonte, Suite 175
Ontario, CA 91764
With a copy to:

Speedway SBC Development, LLC
Attn: Scott Norman
3000 Turtle Creek Boulevard
Dallas, TX 75219
If to City:

City of Fontana
Attention: City Manager
8353 Sierra Ave.

Fontana, CA 92335
If to County:

San Bernardino County Department of Public Works – Special Districts Attention: Director
222 West Hospitality Lane, Second Floor
San Bernardino, CA 92415

6.9 Merger of Prior Agreements. This Agreement and the Exhibits hereto constitute the entire agreement between the Parties and supersede all prior agreements and understandings between the Parties relating to the subject matter hereof.

6.10 Attorney’s Fees. If any legal action is instituted to enforce any Party’s rights hereunder, each party shall bear its own costs and attorney fees, regardless of who is the prevailing Party. This paragraph shall not apply to those costs and attorney fees directly arising from a thirdParty legal action against a party hereto and payable under Indemnification and Insurance Requirements, set forth in Section IV and V above.
94 Agreement for the Provision of Sewer Service
March 2024

6.11 Cooperation. The Parties acknowledge that they are entering into a long-term arrangement in which the cooperation of all of them shall be required, including the execution of necessary documents. The Parties agree to cooperate in good faith with each other in the development, construction, ownership, operation, and maintenance of the facilities that are described in this Agreement. Provided, however, that this Section 6.11 is not intended to impose any substantive obligations or cost on either Party beyond those expressly included in this Agreement.

6.12 Independent Contractors. The Parties agree that they are independent contractors and shall be at all times solely responsible for themselves, as well as their respective officers, directors, members, partners, employees, agents, and contractors as to workmanship, accidents, injuries, wages, supervision, and control. This Agreement may not be altered in any manner, such as course of conduct or practice, so as to change the relationship or responsibilities of the Parties as independent contractors.

6.13 Third-Party Beneficiaries. This Agreement is for the sole benefit of the Parties hereto, and nothing in this Agreement or any action taken hereunder shall be construed to create any duty, liability, or standard of care to any person not a Party to this Agreement. Except as specifically otherwise provided herein, no person shall have any rights or interest, direct or indirect, in this Agreement.

6.14 Recitals. The recitals set forth above are true and correct and incorporated herein by this reference.

6.15 Savings Clause. Each term and condition of this Agreement is deemed to have independent effect and the invalidity of any partial or whole paragraph shall not invalidate the remaining paragraphs. The obligation to perform all of the terms and conditions of this Agreement shall remain in effect regardless of the performance of any invalid term by the other Party.

The effective date of this Agreement is the date of execution by the last Party to sign (the “Effective Date”), which shall be entered into the preamble above. “IEUA” INLAND EMPIRE UTILITIES AGENCY,
a California Municipal Water District
By:

Name: Shivaji Deshmukh, P.E.

Its: General Manager
“Approved as to Form”

Jean Cihigoyenetche, Esq.

General Counsel
95 Agreement for the Provision of Sewer Service
March 2024

“Hillwood” SPEEDWAY SBC DEVELOPMENT, LLC,
a Delaware limited liability company
By:

Name: Scott Morse
Its: Vice President
“City” CITY OF FONTANA
By:

Name:

Its:
“Approved as to Form”

Print Name:

Attorney for City of Fontana
“County” San Bernardino County
By: _______________________________________
Name: _______________________________________
Its: _______________________________________
“Approved as to Form”

Print Name: ____________________________
County Counsel
96 EXHIBIT “A”

IEUA LIFT STATION
97 98

EXHIBIT “B”

PERMANENT WASTEWATER SYSTEM
99 100
101
EXHIBIT “C”

REGIONAL CONTRACT
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EXHIBIT “D”
ORDINANCE No. 111
152

REGIONAL SEWAGE SERVICE ORDINANCE
ORDINANCE NO. 111

AN ORDINANCE OF THE BOARD OF DIRECTORS OF INLAND EMPIRE UTILITIES

AGENCY, A MUNICIPAL WATER DISTRICT, ESTABLISHING REGULATIONS

GOVERNING THE COLLECTION, TREATMENT, AND DISPOSAL OF SEWAGE TO

THE REGIONAL SEWERAGE SYSTEM IN THE INLAND EMPIRE UTILITIES AGENCY, SAN BERNARDINO COUNTY, STATE OF CALIFORNIA.

BE IT ORDAINED by the Board of Directors of the Inland Empire Utilities Agency as follows:
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SECTION 1 - GENERAL PROVISIONS...................................................................................1 SECTION 2 - RIGHTS AND OBLIGATIONS ..........................................................................7 SECTION 3 - COMMUNITY SEWER SYSTEMS....................................................................7 SECTION 4 - RESERVED ........................................................................................................7 SECTION 5 - RESERVED ........................................................................................................7 SECTION 6 - REGIONAL SEWERAGE SYSTEM; PROBHITED DISCHARGES..................7 SECTION 7 - REGIONAL PRETREATMENT PROGRAM .....................................................9 SECTION 8 - RESERVED ........................................................................................................9 SECTION 9 - CAPITAL FINANCING OF REGIONAL SEWERAGE SYSTEM .....................9 SECTION 10 - FORECASTING AND PLANNING................................................................14 SECTION 11 - RESERVED ....................................................................................................16 SECTION 12 - EXTRA-TERRITORIAL SEWER SERVICE..................................................17 SECTION 13 - DELIVERY POINTS: CONNECTION COSTS..............................................18 SECTION 14 - DETERMINATION OF SEWAGE DELIVERIES: COSTS OF MEASURING EQUIPMENT ...........................................................................19 SECTION 15 - CONTROL, PRODUCTION, AND DISPOSITION OF RECYCLED WATER............................................................................................................19 SECTION 16 - RESERVED ....................................................................................................19 SECTION 17 - SERVICE CHARGES FOR MAINTENANCE AND OPERATION OF THE REGIONAL SEWERAGE SYSTEM .......................................................20 SECTION 18 - RESERVED ....................................................................................................21 SECTION 19 - REGIONAL SEWERAGE SYSTEM BUDGETS............................................21 SECTION 20 - BILLING AND PAYMENT OF SERVICE CHARGES ..................................23 154
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SECTION 21 - RESERVED ....................................................................................................25 SECTION 22 - RESERVED ....................................................................................................25 SECTION 23 - RESERVED ....................................................................................................25 SECTION 24 - REGIONAL POLICY COMMITTEE..............................................................25 SECTION 25 - REGIONAL TECHNICAL COMMITTEE......................................................26 SECTION 26 - ADMINISTRATIVE ENFORCEMENT REMEDIES......................................27 SECTION 27 - JUDICIAL ENFORCEMENT REMEDIES .....................................................28 SECTION 28 - EFFECTIVE DATE.........................................................................................29 155
ORDINANCE NO. 111 Page 1 of 30
SECTION 1 - GENERAL PROVISIONS

1.1 PURPOSE AND POLICY
This Ordinance is enacted under the authority of the Municipal Water District Law of 1911, California Water Code §71000 et. seq., California Health and Safety Code §5470 et. seq., and sets forth uniform requirements for users of the Regional Sewerage System, a Publicly Owned Treatment Works (POTW), in the Inland Empire Utilities Agency (IEUA) in San Bernardino County, State of California. This Ordinance is enacted in contemplation of the termination of the Chino Basin Regional Sewage Service Contract As Amended in 1994 which expires under its terms on January 2, 2023. This Ordinance enables the IEUA to comply with all applicable State and Federal laws, including the Clean Water Act (33 United States Code [U.S.C.] Section 1251 et. seq.), and the California Water Code as amended. The objectives of this Ordinance are:

To define the terms and conditions for use of the Regional Sewage System of IEUA within its service area including for the Cities of Chino, Chino Hills, Fontana, Montclair, Ontario, Upland, and the Cucamonga Valley Water District, collectively henceforth known as Sewage Collection Agencies (SCAs) which services includes, but are not limited to, the collection, treatment, and disposal of sewage;
To recognize that IEUA under its National Pollutant Discharge Elimination System permit conditions, has authority to administer the Regional Pretreatment Program over wastewater Discharges within its service area;
To adopt the terms and conditions to compute the uniform financial obligations for users of the Regional Sewage System;
To comply with the continuing service provisions of Section 29 of the Chino Basin Regional Sewage Service Contract As Amended in 1994.

1.2 SEVERABILITY
If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason found to be invalid or unconstitutional by any court of competent jurisdiction, such decision shall not affect the remaining portion of this Ordinance. The IEUA Board of Directors declares that it would have 156
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approved this Ordinance by section, subsection, sentence, clause, or phrase irrespective of the fact that any one or more of the sections, subsections, sentences, clauses, or phrases be declared invalid or unconstitutional.

1.3 ADMINISTRATION
Except as otherwise provided herein, the General Manager of the IEUA shall administer, implement, and enforce the provisions of this Ordinance. Any powers granted to or duties imposed upon the General Manager may be delegated by the General Manager to a Duly Authorized IEUA Employee.

1.4 RIGHT OF REVISION
IEUA reserves the right to amend this Ordinance, as it deems appropriate.

1.5 PROTECTION FROM DAMAGE
No person shall maliciously, willfully, or negligently break, damage, destroy, impair the usefulness, uncover, deface, or tamper with any structure, appurtenance, or equipment which is a part of the Regional Sewerage System.

1.6 NOTICE PROCEDURE
Unless otherwise provided herein, any notice required to be given by the General Manager under this Ordinance shall be in writing and served in person or by certified mail, return receipt requested.

The notice shall be served upon a duly authorized representative of the SCA, at the last address known to the General Manager.

1.7 DEFINITIONS
Unless otherwise required by the context, various terms used in this Ordinance, including the recitals, shall have the meanings set forth in this section. The singular number includes the plural and the plural the singular.
“Capacity Demand” means the volume and strength (i.e., biochemical oxygen demand and suspended solids) of sewage discharged from the Community Sewer System of a SCA into the Regional Sewerage System.
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“Capital Capacity Reimbursement Account” means the accounts established and maintained by the SCAs and to which are deposited or credited Capital Capacity Reimbursement Payments. “Capital Capacity Reimbursement Payment” means a deposit or credit made to the Capital Capacity Reimbursement Account of a SCA for new connections to its Community Sewer System. “Chino Basin” means that area underlain by the Chino and Cucamonga groundwater basins and that portion of the Claremont Heights groundwater basin within San Bernardino County which groundwater basins are described in Bulletin No. 53 of the California Division of Water Resources, dated March, 1947, and entitled “South Coastal Basin Investigation - Overdraft on Groundwater Basins.”
“Commercial Unit” means a building, establishment or premises where businesses selling goods or providing professional or other services to the public or governmental offices are or will be located.
“Community Sewer System” means all facilities owned, controlled or operated by a Sewage Collection Agency for the purpose of collecting and conducting sewage to a delivery point, including collector sewers conducting sewage from the originating premises, trunk sewers conducting sewage from tributary collector sewers or other trunk sewers and any facilities appurtenant to the foregoing.
"Demand Deficit” means the difference between the aggregate total Forecasted Demand of a SCA and the total aggregate Equivalent Dwelling Units connected to its Community Sewer System during an eight-year period commencing with the fifth fiscal year preceding the fiscal year for which IEUA is at the time of the determination of such difference preparing a Ten-Year Sewer Capital Forecast, and including the initial three fiscal years of such Ten-Year Sewer Capital Forecast.
“Delivery Point” means the transfer point at which Sewage is delivered from a Community Sewer System into the Regional Sewerage System.
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“Dispose” or “Disposal” means any process or method for the elimination or beneficial use of Sewage and any Effluent or solid waste residuals thereof, including exportation from the Chino Basin.
“Effluent” means the liquid outflow at the discharge point of any Regional Treatment Plant. “Equivalent Dwelling Unit” or “EDU” means a measure of sewage flow equivalent in quantity and strength to the daily flow of an average single-family household determined by resolution of the Board of Directors of IEUA and referred to as Exhibit “J” . “Expansion” means the acquisition or construction of new facilities for the Regional Sewerage System and the making of any replacements, betterments, additions or extensions of the Regional Sewerage System.
“Facilities” means any pipelines, buildings, structures, works, improvements, fixtures, machinery, equipment, or appliances and any real property, or interests therein, necessary or convenient for the construction, maintenance and operation of any of the Regional Sewerage System. “Fiscal Year” means a 12-month period commencing on July 1 and ending on the following June

30. “Forecasted Demand” means the yearly forecasted or estimated volume and strength of sewage discharged from the Community Sewer System of a SCA into the Regional Sewerage System as set forth in a Ten-Year Sewer Capital Forecast.
“IEUA” means the Inland Empire Utilities Agency, a municipal water district. “Industrial Unit” means a building, establishment, or premises where manufacturing, fabrication or assembly operations or industrial or chemical processes are conducted. “Industrial Waste” means any wastewater and any water borne solid, liquid, or gaseous wastes resulting from any producing, manufacturing, or processing operations of whatever nature as more particularly defined, from time to time, by any federal, state, or regional agency authorized by law to prescribe quality standards for the discharge of sewage effluent and industrial waste effluent within the Chino Basin.
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“Non-Domestic Waste” means waste or wastewater discharged into the Community Sewer System of a SCA which has a greater concentration of total dissolved solids or biochemical oxygen demand or any other constituents limited by IEUA than the waste or wastewater discharged from the typical single family domestic household in the SCA’s Service Area. “Recycled Water” means as defined in Title 22, Division 4, Chapter 3, Water Recycling Criteria, Section 60301.050 et seq., of the California Code of Regulations; water which is available as a result of the treatment of wastewater. Also as described in subdivision (n) of Section 13050 of the Water Code of the State of California, treated wastewater that is suitable for direct beneficial use or a controlled use that would not otherwise occur.
“Regional Interceptor” includes, but is not limited to, pipelines, facilities and appurtenances which receive sewage from the most downstream trunk or collector sewer of a Community Sewer System, or a portion thereof, for the purpose of transmitting the sewage to a Regional Treatment Plant or to any other point of disposal, and any facilities appurtenant thereto, or any sewer which is utilized for the transmission of the sewage of two or more SCAs to such a plant or point of disposal.
“Regional Policy Committee” means the committee provided for in Section 24 hereof “Regional Sewerage System” means all facilities owned, controlled, or operated by IEUA and any interest or capacity rights of IEUA in facilities owned, controlled, or operated by others, for the purpose of transmitting, treating and/or disposing of Sewage, including interceptor sewers, sewage treatment and disposal plants, facilities for the Disposal of Effluent and solid waste residuals and any facilities appurtenant to the foregoing. The Regional Sewerage System does not include the recycled water system which is owned, operated, managed, and maintained by IEUA. The Regional Sewerage System shall include all other disposal facilities which are required to meet the requirements of the National Pollutant Discharge Elimination System Permit or permits or Waste Discharge Requirements issued to IEUA by the Regional Water Quality Control Board, Santa Ana Region, for the operation of the Regional Treatment Plants. “Regional Technical Committee” means the committee provided for in Section 25 hereof. 160
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“Regional Treatment Plant” means a sewage and wastewater treatment plant operated by IEUA as part of the Regional Sewerage System.
“Regional Wastewater Capital Improvement Fund” means the fund of IEUA into which is deposited all Supplemental Capital Outlay Funds received by IEUA from the SCAs for the acquisition, construction, improvement, and expansion of the Regional Sewerage System. “Residential Unit” means a single-family residence, a condominium unit, an apartment unit or other such structure or portion thereof which is equipped and suitable for human habitation or a mobile home space in a mobile home park, not including, however, transient lodging rooms in motels or hotels which are considered to be commercial units. “Service Area” means all territory now or hereafter served by the Community Sewer System owned, controlled or operated by any SCA. The IEUA service area includes the Cities of Chino, Chino Hills, Fontana, Montclair, Ontario, Upland, and the Cucamonga Valley Water District. “Sewage” means any liquid waste and water borne solid waste resulting from residential, commercial, industrial, or institutional activities or uses. “Sewage Collection Agency” (SCA) means any county, city or special district, other than IEUA, which is located in whole or in part within the IEUA Service Area and which is authorized to own, control and operate a Community Sewer System.
“Sewer” means any pipeline conducting sewage, either by gravity or by pressure, and any facilities appurtenant thereto.
“Sewer User Charge” means any charge, fee, rental, or rate, excluding property taxes and Capital Capacity Reimbursement Payments, which is imposed on and collected from the owner, lessee, or occupant of property for providing services and facilities of any Community Sewer System or the Regional Sewerage System, or both.
“Supplemental Capital Outlay Funds” means contributions by a SCA from its Capital Capacity Reimbursement Account reserves to IEUA to supplement the funding of the planning, design and construction of Regional Sewerage System capital improvement projects. 161
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“Transmit” or “Transmission” means the conducting (i) of Sewage from any Delivery Point to a Regional Treatment Plant or other point of Disposal or (ii) of Effluent from a Regional Treatment Plant to a point of Disposal;
“Treat” or “Treating” or “Treatment” means any process or method for altering the quality of Sewage and/or Effluent to meet applicable regulatory standards for Disposal or beneficial reuse.

SECTION 2 - RIGHTS AND OBLIGATIONS
A SCA shall have the right to deliver all Sewage collected by its Community Sewer Systems to the Regional Sewerage System and IEUA shall have the obligation to receive into the Regional Sewerage System all Sewage so delivered by the SCA subject to the provisions of this Ordinance.

SECTION 3 - COMMUNITY SEWER SYSTEMS
Each SCA shall be responsible for all costs and expenses of the acquisition, construction, operation, and maintenance of its Community Sewer System.

A. Inspection of Facilities
Any authorized officer or employee of IEUA may enter and inspect any part of the Community Sewer System of any SCA during normal working hours on regular business days and upon the giving of not less than 24 hours prior notice of the inspection, except during emergencies.

SECTION 4 - RESERVED
SECTION 5 - RESERVED
SECTION 6 - REGIONAL SEWERAGE SYSTEM; PROBHITED DISCHARGES IEUA shall own and operate a Regional Sewerage System for the Transmission, Treatment and Disposal of Sewage delivered by any SCA. The Regional Sewerage System, including any interests or capacity rights of IEUA in facilities owned, controlled or operated by others, shall be as shown or described in the IEUA Wastewater Facilities Master Plan, as amended from time to time, and is intended to accept domestic waste.
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Use of the Regional Sewerage System by industrial users discharging process wastewater shall be governed by Ordinance No. 109, or any successors thereof.

Except as may be specifically provided on a temporary basis, no SCA shall discharge or cause to be discharged in the Regional Sewerage System any waste which exceeds or results in the inability of the wastewater treatment plant effluent to meet the wastewater discharge requirements presently established by any State or Federal regulatory agency, or which may be adopted in the future.

A SCA shall not discharge wastewater, in quantities or concentrations, alone or in conjunction with a discharge or discharges from other sources that cause the pH of the wastewater entering the headworks of any Regional Treatment Plant to decrease below 6.0 Standard Units at any time.

A SCA shall not discharge wastewater, in quantities or concentrations, alone or in conjunction with a discharge or discharges cause an increase in temperature of a Regional Treatment Plant’s influent to be above 90 degrees Fahrenheit, which normally occurs during the period of June through October, nor above 78 degrees Fahrenheit during the remainder of the year.

IEUA shall pay all costs and expenses incurred in the acquisition, construction, maintenance, and operation of the Regional Sewerage System. Each SCA shall, as provided in Section 17 hereof, pay to IEUA service charges representing a pro rata share of all net audited costs incurred by IEUA in the maintenance and operation of the Regional Sewerage System, and each SCA shall contribute Supplemental Capital Outlay Funds to IEUA for the improvement and expansion of the Regional Sewerage System as provided in Section 9 hereof.

Expansion of the Regional Sewerage System is done to accommodate growth and development within the respective SCA’s service area and is based largely on growth projections and requests for expansion from the SCAs. Accordingly, voluntary withdrawal of wastewater flows by one or more SCAs could be detrimental to the Regional Sewerage System by creating stranded assets and resulting in increased costs to the remaining SCAs and IEUA would contest such withdrawal as unauthorized by law. Nevertheless, should a voluntary withdrawal of flows from the Regional Sewerage System occur, the impact of the withdrawal will be calculated by IEUA and an impact fee will be assessed against the withdrawing SCA[s].
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SECTION 7 - REGIONAL PRETREATMENT PROGRAM
IEUA owns and operates the Regional Sewerage System facilities that are regulated by National Pollutant Discharge Elimination System (NPDES) permits issued by the Regional Water Quality Control Board, and which are subject to numerical discharge limitations and requirements. Those permit regulations and discharge limitations require the control and restrictions to the discharge of industrial wastewater on Significant Industrial Users (SIUs). Furthermore, the permit regulations require IEUA to implement pretreatment regulations in all jurisdictions tributary to IEUA’s service area. The regional pretreatment program requirements between IEUA and the SCAs shall be established by resolution of the Board of Directors of IEUA and in Ordinance No. 109 and any successors thereof.

SECTION 8 - RESERVED
SECTION 9 - CAPITAL FINANCING OF REGIONAL SEWERAGE SYSTEM A. General
The Regional Sewerage System and any improvement or expansion of that system will provide benefits to the entire territory served by that system in that the entire territory will be benefited by the protection of public health, the protection of the quality of water sources, the improvement of water management through integrated use of all sources of water supply, including sewage treatment plant effluent, the improvement of general conditions for individual, residential, commercial and agricultural development and the reduction in costs for the Transmission, Treatment, and Disposal of Sewage by the pro rata sharing of all costs incurred by IEUA in the maintenance and operation of the Regional Sewerage System.

The acquisition, construction, improvement, and expansion of the Regional Sewerage System shall be financed with real property tax revenues, revenues from capital capacity fees, sewage service charges levied by the Board of Directors of IEUA, grants and other financial assistance which may be available from any federal, state, local or other source, Supplemental Capital Outlay Funds contributed by the SCAs.
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B. Taxes, Sewage Service Standby or Availability Charges The Board of Directors of IEUA may fix, levy, and collect sewage service standby or availability charges for the purpose of financing the acquisition, improvement, and expansion of the Regional Sewerage System.

C. Capital Capacity Reimbursement Account and Capital Capacity Reimbursement Payments

1. General
As a condition to sewage treatment service and for the purpose of providing Supplemental Capital Outlay Funds to IEUA, each SCA shall establish and maintain a Capital Capacity Reimbursement Account to which the SCA shall deposit or credit its Capital Capacity Reimbursement Payments.

The amounts so deposited or credited by a SCA to its said account shall be used by the SCA only for the purpose of providing Supplemental Capital Outlay Funds to IEUA; provided that interest earned on such amounts shall not be so restricted and may be used by the SCA for any lawful purpose. The source of Capital Capacity Reimbursement Payments shall be at the discretion of each SCA.

2. Capital Capacity Reimbursement Payments
Each SCA shall have deposited or credited to its Capital Capacity Reimbursement Account a Capital Capacity Reimbursement Payment for each connection which has been or will be made to its Community Sewer System or for each change in use of an existing commercial or industrial connection in an amount determined as follows:
a. The amount of the Capital Capacity Reimbursement Payment for each new connection to a SCA’s Community Sewer System and for each change in use of any existing Commercial Unit or Industrial Unit which results in an increase in volume or strength of Sewage therefrom shall be determined by computing the number of Equivalent Dwelling Units therefor as provided in that document approved by Resolution of the Board of Directors and identified as “Exhibit J” and made a part hereof and applying the then current Capital Capacity Reimbursement Payment amount as established by the IEUA Board to each such EDU.
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b. Notwithstanding the preceding provisions, the amount which a SCA is required to have deposited in or credited to its Capital Capacity Reimbursement account for any such new connection or change of use shall be reduced by payments, if any, made by the SCA to IEUA for the new connection or change of use to support Supplemental Capital Outlay Payments, made at IEUA’s request.
c. A Capital Capacity Reimbursement Payment shall be deposited or credited to a SCA’s Capital Capacity Reimbursement Account for such a new connection or change of use at the time of the issuance of a building permit or a sewer connection permit, or for changes in the use of existing Commercial Units and Industrial Units, or the permits required therefor. Upon request by a SCA, IEUA will review, with support and consultation as needed from the Building Activity Report (BAR) Subcommittee, fee calculations and collections by any SCA for any errors, within 30 days from the receipt of the monthly building activity report, as further described herein, unless a more expedited review is requested by SCA. In the event a SCA fails to deposit Capital Capacity Reimbursement Payments into the SCA’s Capital Capacity Reimbursement Account by the applicable deadlines, the SCA shall be required to make late payments in amounts which correspond to the adopted EDU rate in place at the time that said payments first became due and owing.

3. Capital Capacity Reimbursement Reports
a. Each SCA shall report monthly to IEUA, at such time as IEUA shall designate, the balance of the funds in its Capital Capacity Reimbursement Account as of the last day of the preceding month. Such monthly reports shall be in writing and shall include the calculation sheets and also contain the number of building permits and sewer permits which were issued in the SCA’s Service Area during the preceding month and estimated volume of Sewage flows for all residential, commercial, and industrial connections within the SCA’s Service Area for the current month and the cumulative total thereof.

Commercial and industrial sewer connection permits shall be listed by individual permit with the number of fixture units and expected volume and 166
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strength of sewage for each permit. IEUA shall have 30 days from receipt of said reports to contact the applicable SCA with any questions or requests for clarification regarding the connection fee calculations reflected in said report. b. IEUA shall maintain a summary accounting of the Capital Capacity Reimbursement Account reserves of all SCAs and shall make written semiannual reports to the SCAs on or before 1) July 15 (with actuals up to March 31) and January 15, (with actuals up to September 30) of each fiscal year. The reports shall include: (i) the amounts of the Capital Capacity Reimbursement Account reserves of all SCAs as of the last day of March and September respectively, (ii) the amount of the Regional Wastewater Capital Improvement Fund reserves as of the last day of March and September respectively, (iii) a summary of all expenditures from said fund incurred up to March and September respectively for each Regional Sewerage System capital improvement project then in progress, (iv) an estimate of the amounts to be expended from said fund for each such project during the quarter then commencing or in progress (the “current quarter”), (v) the estimated amount of Supplemental Capital Outlay Funds, if any, which will be necessary for the SCAs to contribute to IEUA during the current quarter in order to provide a working capital balance in said fund which shall not exceed $1,000,000 on the last day of the quarter next succeeding the current quarter, and (vi) the amount, if any, of the contribution of Supplemental Capital Outlay Funds for each SCA for the current quarter, determined as provided in subparts E and F of this Section.

D. Determination of Demand Deficits
At the time of the preparation of each Ten-Year Sewer Capital Forecast, pursuant to Section 10 hereof, IEUA shall determine each SCA's Demand Deficit, if any. The determination of Demand Deficits pursuant to this subpart is for the sole purpose of allocating shortages in Supplemental Capital Outlay Fund payments as provided in subpart F of this Section. Except as provided in said subpart F, such determinations shall not result in the creation of an obligation or indebtedness on the part of any SCA to IEUA or other SCAs.
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E. Supplemental Capital Outlay Fund Payments
On July 15, and January 15, of any fiscal year IEUA may require payment by each SCA from its Capital Capacity Reimbursement Account of Supplemental Capital Outlay Funds for the planning, design and construction of Regional Sewerage System capital improvement projects in the amount, if any, set forth for the SCA in the semiannual report due from IEUA on such date. Upon receiving such a demand from IEUA, each SCA shall pay the amount demanded to IEUA within 45 days of receipt of such demand. The amount of each SCA’s proportionate share of the total amount of Supplemental Capital Outlay Funds demanded by IEUA from all SCAs shall be determined based on the percentage which the amount of Supplemental Capital Outlay Funds demanded by IEUA from all SCAs is to the total amount of the current Capital Capacity Reimbursement Account reserves of all SCAs set forth in the semiannual report upon which the demand is based. The amount demanded by IEUA from each SCA on any such date shall be an amount determined by applying the percentage thus obtained to the balance of the reserves, not including interest, in the SCA’s Capital Capacity Reimbursement Account set forth in the semiannual report upon which the demand is based. All amounts received by IEUA from the SCAs as Supplemental Capital Outlay Funds shall be deposited in or credited to the Regional Wastewater Capital Improvement Fund. All such amounts together with all interest earned thereon shall be available and utilized by IEUA solely for the purpose of financing the acquisition, improvement and expansion of the Regional Sewerage System.

F. Allocation of Supplemental Capital Outlay Fund Shortages If at the time of any demand by for Supplemental Capital Outlay Funds, pursuant to subpart E of this Section, there are not sufficient funds deposited or credited to the Capital Capacity Reimbursement Accounts of all SCAs to pay the full amount of the demand, each SCA which has a Demand Deficit shall pay the full balance then deposited or credited to its Capital Capacity Reimbursement Account plus an amount determined based on the percentage which the amount of its Demand Deficit is of the total Demand Deficit for all SCAs. The amount to be paid by each such SCA shall be determined by multiplying the difference between, the Supplemental Capital Outlay Fund demand and the total amount of the Capital Capacity Reimbursement Account balances of all SCAs by the percentage thus determined. 168
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G. Audit Process
The audit process for collection of connection fees by SCAs is intended to verify accuracy and uniformity in practices regionwide and to improve future performance. The audit and BAR review processes may result in IEUA and the SCAs working collaboratively to reconcile any discrepancies in connection fees from the Residential, or Commercial or Industrial Unit. SCAs may be audited by IEUA on an annual basis, as well as periodically through the Building Activity Reports Subcommittee as described below.

H. Building Activity Reports and Building Activity Reports Subcommittee There shall be created a Building Activity Reports (“BAR”) Subcommittee comprised of a staff/employee representative from IEUA and also from of each SCA who elects to participate.

The SCA representative may be changed by the applicable SCA at any time. IEUA will convene the BAR Subcommittee quarterly to complete a more extensive review of a percentage of applications for which connection fees have been calculated and collected. The percentage of applications to be reviewed will be determined by the BAR Subcommittee. The review by the BAR Subcommittee may include such reviews as, but not limited to, an in-depth look at the collection fee calculation methodology, approach for calculating connection fees for similar facilities (e.g. - facilities that have an embedded restaurant and other services), monthly sewer fee collections, for region wide consistency.

SECTION 10 - FORECASTING AND PLANNING
A. SCA Reports

1. Monthly Reports
On such date as IEUA may designate, each SCA shall submit to IEUA monthly reports of sewered building activity. Each such report shall contain the following information in a format which will allow tracking through the development process:
a. The number of building permits issued during the month for structures which will contribute sewage to the Regional Sewerage System; b. Estimate volume of sewage and EDUs for such building permits; 169
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c. The tract number and number of lots for each tentative tract map approved during the month;
d. The tract number and number of lots or dwelling units for each final tract map recorded during the month;
e. The number of final inspections or certificates of occupancy issued during the month for structures which will contribute sewage to the Regional Sewerage System;
f. The estimate volume of sewage and EDUs for all such structures.

B. IEUA Reports

1. Annual Forecast
IEUA shall work collaboratively with the individual SCAs to ensure they are using the most recent planning and other documents and incorporating agency knowledge about their service area into the Annual Forecast. On a biennial basis, prior to the first regularly scheduled Regional Technical Committee meeting of that calendar year, IEUA shall provide to the Regional Technical Committee and the Regional Policy Committee the Regional Annual Forecast from the Regional Wastewater Demand Forecast Model or other mutually agreed upon forecasting methodology.

2. Ten-Year Sewer Capital Forecast
On a biennial basis, by no later than the end of June, IEUA shall prepare and deliver to the Regional Technical Committee and the Regional Policy Committee a Ten-Year Sewer Capital Forecast which includes dates of commencement and completion of capital improvement projects necessary to enable the Regional Sewerage System to meet the forecasted Capacity Demands of all SCAs.

Such forecasts, hereinafter referred to as the “Ten-Year Sewer Capital Forecast,” shall include:
a. Projected dates for the commencement and completion of design and construction of capital improvement projects necessary to meet forecasted Capacity Demands;
b. Estimates for each Regional Treatment Plant of the Capacity Demand of each SCA which received sewerage service the previous Fiscal Year; c. An estimate of the amount of available treatment capacity at the IEUA 170
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Regional Treatment Plants;
d. An estimate of the amount of treatment capacity to be added, if any; e. Projected annual expenditures for the design and construction of such projects;
f. The Demand Deficit, if any, of each SCA;
C. Review by Regional Committees

1. Annual Forecast
To ensure accurate forecasting, upon receipt of the Regional Annual Forecast, the Regional Committees shall review the proposed Capacity Demands and provide input to IEUA within 30 days regarding anticipated development.

2. Ten-Year Sewer Capital Forecast
Upon receipt of the Ten-Year Sewer Capital Forecast, the Regional Committees will have 30 days to review and provide input and the Forecast will be placed on the agenda of both committees to provide recommendations to IEUA. IEUA shall consider the recommendations of the Regional Policy Committee.

D. Reclaimable Industrial Waste
Proposed new industrial connections to Community Sewer Systems which are expected to discharge more than 25,000 gallons per day of reclaimable industrial waste shall be approved based on the conditions set forth in the Ordinance No. 109 and any successors thereof. The determination of permit requirements and discharge limitations of the reclaimable industrial waste to be discharged into the Regional Sewerage System through an appropriate connection point in a SCA’s Community Sewer System shall be made by IEUA through the regional pretreatment program, resolution of the Board of Directors of IEUA, and Ordinance No. 109 and any successors thereof.

SECTION 11 - RESERVED
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SECTION 12 - EXTRA-TERRITORIAL SEWER SERVICE

12.1 SERVICE OUTSIDE THE BOUNDARIES OF IEUA SERVICE AREA A. Upon the Effective Date of this Ordinance
Any SCA which, upon the effective date of this Ordinance was furnishing sewer service to any territory outside the boundaries of the IEUA Service Area, may continue to furnish such service and shall be entitled to the services and facilities of the Regional Sewerage System for that purpose.

Each SCA providing sewer service to any such outside territory shall file a map or maps with the secretary of IEUA showing the boundaries of all such territory.

B. After the Effective Date of this Ordinance
Any SCA, after the effective date of this Ordinance, may furnish sewer service to additional territory outside the boundaries of the IEUA Service Area. Prior to furnishing such sewer service, the SCA shall file a written request with IEUA. IEUA may consider the question of authorizing sewer service to the additional territory, subject to the authorization of the Local Agency Formation Commission for San Bernardino County, and the IEUA Board of Directors shall by resolution authorize sewer service to all or any part of the additional territory by the applicant or applicants unless it determines that such service is not in the public interest. Annual Capital Outlay Charge for Territory Outside IEUA and the Service Area.

In addition to the payment of service charges, each SCA providing the services and facilities of the Regional Sewerage System to territory outside the IEUA Service Area shall be obligated to pay IEUA special capital outlay charges for such territory, as provided in subpart C or D of this Section or both such subparts, if both are applicable. Monies received by IEUA in payment of special capital outlay charges shall be deposited or credited to the Regional Wastewater Capital Improvement Fund and utilized, together with all interest earned thereon, solely for the purpose of financing the acquisition, improvement, and expansion of the Regional Sewerage System.

C. Annual Capital Outlay Charge
The SCA shall annually pay IEUA a special capital outlay charge in an amount equivalent to the amount of the property tax and other revenue which IEUA would have received during the fiscal year if such property were within the IEUA Service Area. Such charge shall be payable by the 172
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SCA during each fiscal year in the amounts and at the times specified by IEUA.

D. Extraordinary Capital Outlay Charge
If any SCA furnishes sewer service to any additional territory outside the IEUA Service Area after the effective date of this Ordinance, the SCA shall pay to IEUA an extraordinary capital outlay charge with respect to such territory. Such charge shall be in an amount equal to total of (i) all past capital outlay taxes which would have been imposed by IEUA prior to July 1, 1978 upon taxable property within such territory had it been subject to taxation by IEUA for capital outlay taxes, (ii) an amount equivalent to the total property tax revenue which would have been received by IEUA pursuant to Sections 96 through 99 of the Revenue and Taxation Code for all fiscal years subsequent to July 1, 1978, and (iii) and an amount equal to all other revenues which IEUA would have received, had such territory been within the IEUA Service Area. IEUA may authorize any extraordinary capital outlay charges to be paid in deferred installments plus interest over a period not exceeding 25 years from the commencement of sewer service to the extra-territorial territory.

SECTION 13 - DELIVERY POINTS: CONNECTION COSTS
Each SCA shall deliver sewage from its Community Sewer System into the Regional Sewerage System at such delivery points as may, from time to time, be requested by the SCA and approved by IEUA. The delivery point request may be made by the SCA or on behalf of a third party. In all delivery point requests, the SCA or third party shall pay applicable plan review and hydraulic/load modeling costs for the evaluation of the impact of the delivery point to the Regional Sewage System. The SCA or third party may also be required to submit a resolution confirming the authorization of annexation from the Local Agency Formation Commission for San Bernardino County or a resolution confirming an irrevocable annexation agreement to the SCA. Upon consideration of the information submitted, IEUA may authorize the new delivery point. All costs and expenses of making the connection between the Regional Sewerage System and the Community Sewer System of any SCA shall be borne by the SCA and/or third party. 173
ORDINANCE NO. 111 Page 19 of 30
SECTION 14 - DETERMINATION OF SEWAGE DELIVERIES: COSTS OF

MEASURING EQUIPMENT
IEUA shall determine the amount of sewage delivered to the Regional Sewerage System by all SCAs and shall maintain accurate and complete records thereof. The amount of sewage delivered to the Regional Sewerage System by each SCA shall be determined by IEUA based on a standard daily measurement or contribution per Equivalent Dwelling Unit methodology established by IEUA from time to time.

If required by IEUA, a SCA shall install and maintain and operate at its expense, measuring devices and equipment for measuring the flow of sewage from the SCA’s Community Sewer System into the Regional Sewerage System. Prior to installation, IEUA shall approve the design of such measuring devices and equipment and shall inspect and approve their installation. Such measuring devices and equipment shall be examined, tested and serviced regularly, but not less than once a year, by IEUA to ensure their accuracy. At any time IEUA or any SCA may inspect any such measuring device and equipment and all records and measurements taken therefrom.

The determination of sewage flow or contribution methodology per Equivalent Dwelling Unit contributed by each SCA shall be reviewed and updated if needed, or as requested by IEUA, but not less than every ten (10) years.

SECTION 15 - CONTROL, PRODUCTION, AND DISPOSITION OF RECYCLED WATER
IEUA holds exclusive right to Recycled Water generated by the treatment of Sewage through the Regional Sewerage System. The terms and conditions regulating the sale, delivery, and use of Recycled Water shall be governed by IEUA Ordinance No. 112 and subsequent iterations thereof.

SECTION 16 - RESERVED
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SECTION 17 - SERVICE CHARGES FOR MAINTENANCE AND OPERATION

OF THE REGIONAL SEWERAGE SYSTEM
All SCAs shall pay service charges for all sewage delivered to the Regional Sewerage System.

Each SCA shall pay its pro rata share of all net audited costs incurred by IEUA in the maintenance and operations of the system. Net audited costs consist of:

A. Maintenance and Operation
Costs of maintenance and operation of all transmission and treatment facilities comprising the Regional Sewerage System; and
B. Other Costs
Any other costs reasonably related to the maintenance and operation of the system; and C. Replacement and Unforeseen Costs
Based upon generally accepted engineering and accounting principles, reasonable reserves for the estimated costs and expenses of:

1. Replacement of any facilities where the costs and expenses of replacement are customarily considered a part of the costs and expenses of extraordinary maintenance which adds to the normal service life of facilities; and

2. Unforeseen contingencies; and

3. Actual costs and expenses incurred by IEUA for the Transmission, Treatment and Disposal of any byproduct resulting from the treatment of the Sewage delivered by a SCA.

D. Cost Of Service Study (“COSS”)
IEUA may, from time to time, conduct a COSS which shall be conducted in accordance with procedures normally utilized in the public rate setting process and in accordance with applicable law.
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E. Proposed Service Charge Rate Adjustment (“Adjustment”) Prior to the imposition of a rate adjustment, IEUA shall conduct a rate workshop wherein SCAs may express comments and feedback on the matter for consideration by IEUA. Rate adjustments for each fiscal year shall be within the discretion of the IEUA Board of Directors and shall conform to the COSS and applicable law.

SECTION 18 - RESERVED
SECTION 19 - REGIONAL SEWERAGE SYSTEM BUDGETS
A. Fiscal Year Budgets
For each fiscal year, or on a biennial basis if utilized by IEUA, the IEUA Board of Directors shall cause to be prepared and shall adopt a budget, which includes the Regional Sewerage System budget.

B. Form and Content of Budgets
The budget shall contain a plan of financial operations for the Regional Sewerage System and shall contain an estimate of the requirements for expenditures, including provisions for any reserves, and the means of financing such requirements. The budget shall be itemized and shall show in reasonable detail the nature and purpose of each item of revenue and expense and the actual or estimated amount thereof. The budget shall include a plan of financial operations for the capital costs of the acquisition and construction of the Regional Sewerage System, and a plan of financial operation for the maintenance and operation of the system, prepared as follows:

1. Capital Improvement Fund Budget. The costs of the acquisition and construction of the Regional Sewerage System shall show:
a. The various items and amounts of capital costs and the total thereof; b. The total amount in the Regional Wastewater Capital Improvement Fund and the available and unencumbered balance of such fund as of the commencement of the fiscal year and an estimate of the amount therein and the unencumbered balance thereof as of the end of the fiscal year; c. The amounts, if any, of IEUA revenues from sources other than property taxes 176
ORDINANCE NO. 111 Page 22 of 30
which are or will be available for payment of capital costs and the total thereof; d. The estimated amount of property taxes to be received during the fiscal year; e. The projected amount of Supplemental Capital Outlay Fund contributions required from each SCA during the fiscal year and the total thereof.

2. Maintenance and Operations Fund Budget The part covering the maintenance and operation of the Regional Sewerage System shall show:
a. The various items and amounts of maintenance and operation expenses, including replacement and rehabilitation, and the total thereof; b. The total amount in any reserves theretofore established, and the available and unencumbered balance in such reserves as of the commencement and end of the fiscal year;
c. The amount of service charges payable by each SCA and the total paid or payable by all SCAs;
d. The amounts, if any, of revenue from sources other than services charges which will be available for payment of maintenance and operation expenses and the total thereof;
e. The total amount required to be raised from service charges for payment of maintenance and operations expenses;
f. The rate of the service charge for the fiscal year(s); g. The amount of any surplus of service charges received by IEUA during the fiscal year preceding the fiscal year in progress in excess of the cost of maintenance and operation of the Regional Sewerage System for that year which was transferred to the Regional Sewerage System Operation and Maintenance Fund reserve for replacement of Regional Sewerage System facilities for such preceding fiscal year, or the amount, if any, of any shortage in the amount of service charges received by IEUA during such preceding fiscal year less than the cost of maintenance and operation of the Regional Sewerage System for that year which was transferred from said reserve during the year then in progress for such preceding fiscal year; 177
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C. Preparation and Approval of Proposed Budgets
Not later than April 1 of each budgeting year, the IEUA Board of Directors shall direct its General Manager, or such other person or persons as the Board may designate, to prepare and submit to the Board a proposed budget for the next fiscal year(s). Said budget and the rate of service charge for the next fiscal year will be considered and adopted by IEUA no later than June 30 of each fiscal year. If the Board of Directors fails to adopt a budget by June 30 then, until such time as the Board shall adopt such budget, the budget last adopted shall constitute the budget for such fiscal year.

D. Adoption of Separate Budgets
Notwithstanding the preceding provisions of this section, the Board of Directors of IEUA may elect for any fiscal year to separately prepare and adopt a Capital Improvement Fund Budget and a Maintenance and Operation Fund Budget. If said Board elects to so proceed, each such separate budget shall be prepared in accordance with the provisions of this section which are applicable thereto. Both said budgets shall be processed and adopted in accordance with the procedures and pursuant to the time schedule set forth in this section.

SECTION 20 - BILLING AND PAYMENT OF SERVICE CHARGES
A. Monthly Billing Statements of Service Charges
Not later than 20 days after the end of each month, each SCA shall provide to IEUA a report with the number of billable Equivalent Dwelling Units billable to each SCA. IEUA shall provide a billing statement of service charges to each SCA, setting forth the number of billable Equivalent Dwelling Units during such month for the service charge rate applicable thereto and the total service charge due and payable to IEUA for said month. Monthly service charges shall be based on the service charge rate adopted by the IEUA Board.

B. Payment of Statements; Interest on Overdue Payments
Each SCA shall pay the amount of the service charge set forth in any statement on or prior to its due date, namely, the thirtieth day following the date of the delivery of such statement. In the event that a SCA is delinquent in payment of bills for service charges, a penalty of ten (10) percent of the original unpaid invoice amount shall be added to any fee or charge that becomes delinquent. 178
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Interest at the maximum rate provided by California Government Code Section 926.10 as may be amended from time to time, shall accrue on the total of all delinquent fees or charges.

Additional charges provided herein for delinquent payments may be waived by the Board of Directors upon written request by the IEUA Customer upon a finding that the delinquency was caused by excusable neglect or circumstances beyond the control of the SCA, provided that the delinquent SCA reimburses IEUA for all costs and penalties actually incurred by IEUA as a result of the delinquent payment.

Interest paid upon any delinquent amount shall be credited to the Regional Sewerage System Maintenance and Operation Fund unless, by reason of such delinquency, IEUA shall have advanced the amount of the delinquency from other sources, in which case, the interest shall be credited to such fund as the IEUA Board of Directors may designate. A SCA shall not be entitled to withhold payment, in whole or in part, of the amount of any statement for service charges pending action pursuant to part C of this Section 20.

C. Adjustment for Overpayment or Underpayment
Upon disagreement between any SCA and IEUA over the amount of service charges or the discovery of an error in computation of service charges for a SCA, which is not resolved within 30 days of communication, IEUA shall request a recommendation from the Regional Technical committee. The IEUA Board of Directors shall consider the recommendation by the Regional Technical Committee and make its determination on service charge adjustments, due dates and any interest due, and shall provide for the appropriate credit to or debit of any affected SCA’s service charge account.

D. Deposit of Payments in Maintenance and Operation Fund All monies received by IEUA in payment of service charges shall be deposited in and credited to a separate fund or account in the treasury of IEUA, to be known as the “Regional Sewerage System Maintenance and Operation Fund.” All monies in said fund and interest earned thereon shall be used and expended only for payment of maintenance and operation expenses paid or incurred by IEUA under the provisions, of this contract.
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SECTION 21 - RESERVED
SECTION 22 - RESERVED
SECTION 23 - RESERVED
SECTION 24 - REGIONAL POLICY COMMITTEE
There shall be a Regional Policy Committee to advise IEUA of the needs and views of the SCAs concerning IEUA’s policies and activities in the financing, acquisition, construction, maintenance and operation of the Regional Sewerage System, to make reports and recommendations with respect thereto, and to inform the SCAs concerning such policies and activities. Committee membership shall be voluntary.

Each participating SCA shall appoint one regular member and one alternate member to the Regional Policy Committee. Such members shall be members of the SCA’s governing body. The regular and alternate members so appointed shall serve at the pleasure of the appointing agency.

Each participating SCA shall give the secretary of IEUA immediate notice of all appointments and removals made by it, and of the name and contact information of each appointee. IEUA shall appoint one regular member and one or more alternates to the Regional Policy Committee. The members so appointed shall be members of the IEUA Board of Directors of IEUA and shall serve at the pleasure of IEUA. The IEUA member shall be entitled to participate at all regular and special meetings of the committee.

The Regional Policy Committee shall be chaired by a regular member of the Regional Policy Committee and shall rotate among its regular members on a biennial basis through all the SCAs.

A Vice Chair shall also be designated to act in the Chair’s absence. The Vice Chair shall be selected by a majority vote of the regular members. A quorum made up of a majority of members shall be required to conduct business.

Each regular member of the Regional Policy Committee or the SCA’s alternates, shall have one vote. A majority of members voting shall be required to carry any matter before the committee. 180
ORDINANCE NO. 111 Page 26 of 30
The Regional Policy Committee shall hold a regular meeting quarterly or as needed in the determination of IEUA. The Regional Policy Committee may adopt such procedures and rules as it deems advisable concerning its officers, meetings and the manner and method of making its reviews, reports and recommendations on any matter affecting the acquisition, construction, maintenance and operation of the Regional Sewerage System.

IEUA shall, if requested by the Regional Policy Committee, provide the Regional Policy Committee with a meeting place and with the services, advice, and assistance of members of its staff. All records, reports, and other information of IEUA pertaining to the financing, acquisition, construction, maintenance and operation of the Regional Sewerage System shall be available for inspection by members of the Regional Policy Committee. IEUA agrees to maintain and make available to the Regional Policy Committee accurate records of all of its costs, disbursements, and receipts with respect to activities under this Ordinance.

SECTION 25 - REGIONAL TECHNICAL COMMITTEE
There shall be a Regional Technical Committee to advise the Regional Policy Committee on technical matters related to the Regional Sewerage System. Participation shall be voluntary. The members and alternate members of the Regional Technical Committee shall be appointed by their respective SCAs and IEUA shall be entitled to appoint one member and alternate members with the same right of participation as other members. The committee shall hold regular meetings quarterly or as needed in the determination of IEUA. Appointments and the number of alternates shall be determined in the sole discretion of each SCA and IEUA as applicable.

The committee may, and upon request by the Regional Policy Committee or IEUA shall, review and make recommendations concerning any of the following technical matters: the acquisition, design, construction, maintenance, operation, or financing of sewer facilities, sewage treatment, reclamation, or disposal facilities, sewage and effluent measuring devices and equipment, Community Sewer Systems and the Regional Sewerage System; sewer user charges; service charges; quality standards for sewage and any effluent; and any other technical matter related to any of the foregoing.
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SECTION 26 - ADMINISTRATIVE ENFORCEMENT REMEDIES
A. Notice of Violation/Order for Corrective Action
IEUA will serve any SCA found to be violating any provision of this Ordinance, or any applicable Federal, State, District or local statutes, regulations, guidelines, ordinances, or other requirements with a written notice of non-compliance. The notice of non-compliance will state the nature of the violation and provide a reasonable time limit, as determined by IEUA, for the satisfactory correction thereof. IEUA may require the submittal of a plan to satisfactorily correct the violation or require any other action which, IEUA determines is appropriate to correct the violation. The SCA served with the notice of violation shall, within the period of time stated in such notice, cease all violations. This provision is in addition to, and not by way of derogation of, any other remedies or procedures available to IEUA by law, regulation, or pursuant to any of the provisions of this Ordinance. This notice of violation procedure shall be in addition to any other remedies available to IEUA under Section 71000 et. seq. of the Water Code of the State of California.

B. Right to Inspect Documents and Property
IEUA retains the right, upon reasonable notice, to audit all public records and accounts of any SCA, to ensure ongoing compliance and enforcement of this ordinance. Additionally, pursuant to California Water Code §71601, IEUA may enter upon the private property of any person to investigate possible violations of this ordinance, including, but not limited to the verification of meter connections previously issued by IEUA to verify that no unauthorized or non-permitted meter change has occurred.

C. Penalty for Violation
A SCA not in compliance with any portion of this Ordinance will be notified of the IEUA's intention of enforcement, with an explanation of the violation or infraction committed. A SCA notified shall have thirty (30) calendar days to respond before any action will be taken by the IEUA. However, no such notice to afford an opportunity to comply need be given in those instances in which the non-compliance may cause conditions dangerous and detrimental to public health, safety and welfare, or are in violation of State law or applicable section of the California Penal Code. These violations include, but are not limited to trespass, assault, water theft, cross connection, and water system damage.
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SECTION 27 - JUDICIAL ENFORCEMENT REMEDIES
A. Remedies Nonexclusive
The remedies provided for in this Ordinance are not exclusive. The General Manager may take any, all, or any combination of these actions against a non-compliant user. Enforcement of pretreatment violations will generally be in accordance with IEUA’s enforcement response plan.

However, the General Manager may take other action against any user when the circumstances warrant. Further, the General Manager is empowered to take more than one enforcement action against any non-compliant user.
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SCHEDULE “1”

LEGAL DESCRIPTION OF THE HILLWOOD PROPERTY
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LEGAL DESCRIPTION OF THE PROPERTY
The Land referred to herein below is situated in unincorporated San Bernardino County, State of California, and is described as follows:

TRACT 1
PARCEL B OF CERTIFICATE OF COMPLIANCE FOR LOT LINE ADJUSTMENT NO.

PLLA-2022-00023B, AS DESCRIBED IN EXHIBIT “A”, RECORDED JUNE 13, 2023 AS INSTRUMENT NO. 2023-145048 OF OFFICIAL RECORDS, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA DESCRIBED AS FOLLOWS:

ALL OF PARCELS 1, 2 AND THAT PORTION OF PARCEL 3 OF PARCEL MAP NO. 14723, AS SHOWN BY MAP ON FILE IN BOOK 179 OF PARCEL MAPS, AT PAGES 9 THROUGH 13, INCLUSIVE, THEREOF, RECORDS OF SAN BERNARDINO COUNTY, CALIFORNIA, BEING CERTIFICATE OF COMPLIANCE NO. 96-0110, LOT LINE ADJUSTMENT NO. W96-0012, RECORDED DECEMBER 6, 1996 AS DOCUMENT NO. 19960449838 IN OFFICIAL RECORDS, COUNTY OF SAN BERNARDINO, CALIFORNIA LYING WITHIN SECTIONS 9, 10, 15 AND 16, TOWNSHIP 1 SOUTH, RANGE 6 WEST, SAN BERNARDINO MERIDIAN;
TOGETHER WITH ALL OF PARCEL 4 AND THAT PORTION OF PARCEL 3 OF PARCEL MAP NO. 14723, AS SHOWN BY MAP ON FILE IN BOOK 179 OF PARCEL MAPS, AT PAGES 9 THROUGH 13, INCLUSIVE, THEREOF, RECORDS OF SAN BERNARDINO COUNTY, CALIFORNIA, BEING CERTIFICATE OF COMPLIANCE NO. 96-0111, LOT LINE ADJUSTMENT NO. W96-0012, RECORDED DECEMBER 6, 1996 AS DOCUMENT NO. 19960449839 IN OFFICIAL RECORDS, COUNTY OF SAN BERNARDINO, CALIFORNIA;
EXCEPTING THEREFROM THAT PORTION OF PARCEL 4 OF PARCEL MAP NO. 14723, AS SHOWN BY MAP ON FILE IN BOOK 179 OF PARCEL MAPS, AT PAGES 9 THROUGH 13, INCLUSIVE, THEREOF, RECORDS OF SAN BERNARDINO COUNTY, CALIFORNIA, LYING WITHIN SECTIONS 15 AND 16, TOWNSHIP 1 SOUTH, RANGE 6 WEST, SAN BERNARDINO MERIDIAN, DESCRIBED AS FOLLOWS:

COMMENCING AT THE NORTHEAST CORNER OF PARCEL 6 OF SAID PARCEL MAP,

SAID NORTHEAST CORNER ALSO BEING THE NORTHERLY TERMINUS OF LINE SEGMENT “L70” AS SHOWN ON SAID PARCEL MAP; THENCE NORTH 61°30’20” EAST, A DISTANCE OF 122.43 FEET FOR THE TRUE POINT OF BEGINNING; THENCE SOUTH 0°00’00” EAST, A DISTANCE OF 1222.10 FEET; THENCE SOUTH 77°46’43” WEST, A DISTANCE OF 613.67 FEET; THENCE SOUTH 0°00’00” EAST, A DISTANCE OF 362.21 FEET;
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THENCE NORTH 90°00’00” WEST, A DISTANCE OF 1126.69 FEET; THENCE NORTH 0°00’00” EAST, A DISTANCE OF 150.77 FEET;
THENCE NORTH 90°00’00” WEST, A DISTANCE OF 958.51 FEET; THENCE NORTH 0°00’00” EAST, A DISTANCE OF 1333.11 FEET; THENCE NORTH 90°00’00” EAST, A DISTANCE OF 1383.79 FEET; THENCE NORTH 0°00’00” EAST, A DISTANCE OF 178.35 FEET;
THENCE NORTH 60°37’22” EAST, A DISTANCE OF 86.33 FEET;
THENCE NORTH 0°00’00” EAST, A DISTANCE OF 69.38 FEET;
THENCE NORTH 90°00’00” EAST, A DISTANCE OF 178.43 FEET; THENCE SOUTH 0°00’00” EAST, A DISTANCE OF 59.75 FEET;
THENCE NORTH 90°00’00” EAST, A DISTANCE OF 482.32 FEET; THENCE NORTH 0°00’00” EAST, A DISTANCE OF 6.00 FEET;
THENCE NORTH 90°00’00” EAST, A DISTANCE OF 30.00 FEET;
THENCE SOUTH 0°00’00” EAST, A DISTANCE OF 6.00 FEET;
THENCE NORTH 90°00’00” EAST, A DISTANCE OF 535.19 FEET FOR THE TRUE POINT OF BEGINNING.

ALSO EXCEPTING THEREFROM THAT PORTION OF PARCEL 4 OF PARCEL MAP NO. 14723, AS SHOWN BY MAP ON FILE IN BOOK 179 OF PARCEL MAPS, AT PAGES 9 THROUGH 13, INCLUSIVE, THEREOF, RECORDS OF SAN BERNARDINO COUNTY, CALIFORNIA, LYING WITHIN SECTIONS 15 AND 16, TOWNSHIP 1 SOUTH, RANGE 6 WEST, SAN BERNARDINO MERIDIAN, DESCRIBED AS FOLLOWS:

COMMENCING AT THE SOUTHWEST CORNER OF SAID PARCEL 4; THENCE NORTH 0°06’53” EAST ALONG THE WESTERLY LINE OF SAID PARCEL 4, A DISTANCE OF 899.56 FEET; THENCE SOUTH 89°36’47” EAST ALONG SAID WESTERLY LINE, A DISTANCE OF 331.93 FOR THE TRUE POINT OF BEGINNING, SAID POINT BEING THE

BEGINNING OF A NON-TANGENT CURVE, CONCAVE SOUTHEASTERLY, HAVING A RADIUS OF 753.94 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 71°24’19” WEST; THENCE NORTHEASTERLY ALONG SAID WESTERLY LINE OF PARCEL 4

AND ALONG SAID CURVE, TO THE RIGHT, THROUGH A CENTRAL ANGLE OF 59°17’45”, AN ARC DISTANCE OF 780.26 FEET; THENCE NORTH 77°53’26” EAST ALONG SAID WESTERLY LINE, A DISTANCE 166.41 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE NORTHWESTERLY, HAVING A RADIUS OF 613.11 FEET; THENCE NORTHEASTERLY ALONG SAID WESTERLY LINE AND ALONG SAID CURVE, TO THE LEFT, THROUGH A CENTRAL ANGLE OF 3°28’03”, AN ARC DISTANCE OF 37.10 FEET TO A POINT, A RADIAL LINE FROM SAID POINT BEARS NORTH 15°34’37” WEST; THENCE LEAVING SAID WESTERLY LINE, SOUTH 0°34’45” EAST, A DISTANCE OF 92.49 FEET; THENCE NORTH 89°25’18” EAST, A DISTANCE OF 504.06 FEET; THENCE NORTH 0°34’42” WEST, A DISTANCE OF 433.27 FEET; THENCE NORTH 89°25’18” EAST, A DISTANCE OF 75.00 FEET; THENCE NORTH 0°34’42” WEST, A DISTANCE OF 170.05 FEET TO A POINT OF CUSP WITH A CURVE, CONCAVE NORTHEASTERLY, HAVING A RADIUS OF 886.00 FEET, A RADIAL LINE 188
FROM SAID POINT BEARS NORTH 12°22’56” EAST; THENCE EASTERLY ALONG SAID CURVE, TO THE LEFT, THROUGH A CENTRAL ANGLE OF 36°34’55”, AN ARC DISTANCE OF 565.69 FEET; THENCE NORTH 65°57’54” EAST, A DISTANCE OF 215.58

FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE SOUTHEASTERLY, HAVING A RADIUS OF 776.49 FEET; THENCE NORTHEASTERLY ALONG SAID CURVE, TO THE RIGHT, THROUGH A CENTRAL ANGLE OF 16°18’30”, AN ARC DISTANCE OF 221.02 FEET TO THE BEGINNING OF A COMPOUND CURVE, CONCAVE SOUTHWESTERLY, HAVING A RADIUS OF 71.81 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 7°43’36” WEST; THENCE NORTHEASTERLY AND

SOUTHEASTERLY ALONG SAID CURVE, TO THE RIGHT, THROUGH A CENTRAL ANGLE OF 100°08’22”, AN ARC DISTANCE OF 125.51 FEET TO THE BEGINNING OF A COMPOUND CURVE, CONCAVE WESTERLY, HAVING A RADIUS OF 844.15, A RADIAL LINE FROM SAID POINT BEARS NORTH 87°35’14” WEST; THENCE

SOUTHWESTERLY ALONG SAID CURVE, TO THE RIGHT, THROUGH A CENTRAL ANGLE OF 12°03’11”, AN ARC DISTANCE OF 177.58 FEET; THENCE SOUTH 14°38’39” WEST, A DISTANCE OF 42.29 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE EASTERLY, HAVING A RADIUS OF 880.00 FEET; THENCE

SOUTHWESTERLY AND SOUTHERLY ALONG SAID CURVE, TO THE LEFT, THROUGH A CENTRAL ANGLE OF 14°38’39”, AN ARC DISTANCE OF 224.92 FEET; THENCE SOUTH 0°00’00” WEST, A DISTANCE OF 1128.42 FEET; THENCE SOUTH 5°42’38” WEST, A DISTANCE OF 120.60 FEET; THENCE SOUTH 0°00’00” WEST, A DISTANCE OF 177.90 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE NORTHWESTERLY, HAVING A RADIUS OF 72.00 FEET;

THENCE SOUTHWESTERLY ALONG SAID CURVE, TO THE RIGHT, THROUGH A CENTRAL ANGLE OF 90°00’04”, AN ARC DISTANCE OF 113.10 FEET; THENCE NORTH 89°59’56” WEST, A DISTANCE OF 70.16 FEET TO THE BEGINNING OF TANGENT CURVE, CONCAVE NORTHEASTERLY, HAVING A RADIUS OF 970.00 FEET; THENCE

WESTERLY, AND NORTHWESTERLY ALONG SAID CURVE, TO THE RIGHT, THROUGH A CENTRAL ANGLE OF 26°53’40”, AN ARC DISTANCE OF 455.32 FEET; THENCE NORTH 63°06’16” WEST, A DISTANCE OF 86.72 FEET TO THE BEGINNING

OF A TANGENT CURVE, CONCAVE SOUTHWESTERLY, HAVING A RADIUS OF 1030.00 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE, TO THE LEFT, THROUGH A CENTRAL ANGLE OF 27°40’00”, AN ARC DISTANCE OF 497.36 FEET; THENCE SOUTH 89°13’45” WEST, A DISTANCE OF 1158.11 FEET; THENCE NORTH 00°06’53” EAST, A DISTANCE OF 508.81 FEET FOR THE TRUE POINT OF BEGINNING.

ALSO EXCEPTING THEREFROM THAT PORTION OF PARCEL 4 OF SAID PARCEL MAP NO. 14723 DESCRIBED AS FOLLOWS:

COMMENCING AT THE SOUTHWEST CORNER OF SAID PARCEL 4; THENCE THE FOLLOWING FIVE (5) COURSES ARE ALONG THE SOUTHERLY LINE OF SAID PARCEL 4:
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1) NORTH 89°37’01” WEST (ACTUAL NORTH 89°37’01” EAST), A DISTANCE OF 751.78 FEET;
2) NORTH 0°05’11” WEST, A DISTANCE OF 27.89 FEET;
3) NORTH 51°51’30” WEST, A DISTANCE OF 127.71 FEET;
4) NORTH 0°27’33” WEST, A DISTANCE OF 154.78 FEET;
5) NORTH 89°33’10” EAST, A DISTANCE OF 727.68 FEET TO THE TRUE POINT OF BEGINNING;
THENCE LEAVING SAID SOUTHERLY LINE NORTH 0°26’50” WEST, A DISTANCE OF

34.08 FEET;
THENCE NORTH 90°00’00” EAST, A DISTANCE OF 41.94 FEET;
THENCE SOUTH 0°26’50” EAST, A DISTANCE OF 33.75 FEET TO SAID SOUTHERLY LINE OF PARCEL 4;
THENCE SOUTH 89°33’10” WEST ALONG SAID SOUTHERLY LINE, A DISTANCE OF

41.93 FEET TO THE TRUE POINT OF BEGINNING.

TRACT 2
PARCEL C OF CERTIFICATE OF COMPLIANCE FOR LOT LINE ADJUSTMENT NO.

PLLA-2022-00023C, AS DESCRIBED IN EXHIBIT “A” RECORDED DECEMBER 20, 2022 AS INSTRUMENT NO. 2022-0403059 OF OFFICIAL RECORDS, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA DESCRIBED AS FOLLOWS:

THAT PORTION OF PARCEL 4 OF PARCEL MAP NO. 14723, AS SHOWN BY MAP ON FILE IN BOOK 179 OF PARCEL MAPS, AT PAGES 9 THROUGH 13, INCLUSIVE,

THEREOF, RECORDS OF SAN BERNARDINO COUNTY, CALIFORNIA, LYING WITHIN SECTIONS 15 AND 16, TOWNSHIP 1 SOUTH, RANGE 6 WEST, SAN BERNARDINO MERIDIAN, DESCRIBED AS FOLLOWS:

COMMENCING AT THE SOUTHWEST CORNER OF SAID PARCEL 4;
THENCE NORTH 0°06’53” EAST ALONG THE WESTERLY LINE OF SAID PARCEL 4, A DISTANCE OF 899.56 FEET;
THENCE SOUTH 89°36’47” EAST ALONG SAID WESTERLY LINE, A DISTANCE OF 331.93 FOR THE TRUE POINT OF BEGINNING, SAID POINT BEING THE BEGINNING

OF A NON-TANGENT CURVE, CONCAVE SOUTHEASTERLY, HAVING A RADIUS OF 753.94 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 71°24’19” WEST;

THENCE NORTHEASTERLY ALONG SAID WESTERLY LINE OF PARCEL 4 AND ALONG SAID CURVE, TO THE RIGHT, THROUGH A CENTRAL ANGLE OF 59°17’45”, AN ARC DISTANCE OF 780.26 FEET;

THENCE NORTH 77°53’26” EAST ALONG SAID WESTERLY LINE, A DISTANCE 166.41

FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE NORTHWESTERLY, HAVING A RADIUS OF 613.11 FEET;

190

THENCE NORTHEASTERLY ALONG SAID WESTERLY LINE AND ALONG SAID CURVE, TO THE LEFT, THROUGH A CENTRAL ANGLE OF 3°28’03”, AN ARC DISTANCE OF 37.10 FEET TO A POINT, A RADIAL LINE FROM SAID POINT BEARS NORTH 15°34’37” WEST;
THENCE LEAVING SAID WESTERLY LINE, SOUTH 0°34’45” EAST, A DISTANCE OF

92.49 FEET;

THENCE NORTH 89°25’18” EAST, A DISTANCE OF 504.06 FEET; THENCE NORTH 0°34’42” WEST, A DISTANCE OF 433.27 FEET;
THENCE NORTH 89°25’18” EAST, A DISTANCE OF 75.00 FEET;
THENCE NORTH 0°34’42” WEST, A DISTANCE OF 170.05 FEET TO A POINT OF CUSP WITH A CURVE, CONCAVE NORTHEASTERLY, HAVING A RADIUS OF 886.00 FEET, A RADIAL LINE FROM SAID POINT BEARS NORTH 12°22’56” EAST;

THENCE EASTERLY ALONG SAID CURVE, TO THE LEFT, THROUGH A CENTRAL ANGLE OF 36°34’55”, AN ARC DISTANCE OF 565.69 FEET;
THENCE NORTH 65°57’54” EAST, A DISTANCE OF 215.58 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE SOUTHEASTERLY, HAVING A RADIUS OF 776.49 FEET;

THENCE NORTHEASTERLY ALONG SAID CURVE, TO THE RIGHT, THROUGH A CENTRAL ANGLE OF 16°18’30”, AN ARC DISTANCE OF 221.02 FEET TO THE

BEGINNING OF A COMPOUND CURVE, CONCAVE SOUTHWESTERLY, HAVING A RADIUS OF 71.81 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 7°43’36” WEST;

THENCE NORTHEASTERLY AND SOUTHEASTERLY ALONG SAID CURVE, TO THE RIGHT, THROUGH A CENTRAL ANGLE OF 100°08’22”, AN ARC DISTANCE OF 125.51

FEET TO THE BEGINNING OF A COMPOUND CURVE, CONCAVE WESTERLY, HAVING A RADIUS OF 844.15, A RADIAL LINE FROM SAID POINT BEARS NORTH 87°35’14” WEST;

THENCE SOUTHWESTERLY ALONG SAID CURVE, TO THE RIGHT, THROUGH A CENTRAL ANGLE OF 12°03’11”, AN ARC DISTANCE OF 177.58 FEET; THENCE SOUTH 14°38’39” WEST, A DISTANCE OF 42.29 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE EASTERLY, HAVING A RADIUS OF 880.00 FEET;

THENCE SOUTHWESTERLY AND SOUTHERLY ALONG SAID CURVE, TO THE LEFT, THROUGH A CENTRAL ANGLE OF 14°38’39”, AN ARC DISTANCE OF 224.92 FEET; THENCE SOUTH 0°00’00” WEST, A DISTANCE OF 1128.42 FEET; THENCE SOUTH 5°42’38” WEST, A DISTANCE OF 120.60 FEET;
THENCE SOUTH 0°00’00” WEST, A DISTANCE OF 177.90 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE NORTHWESTERLY, HAVING A RADIUS OF 72.00 FEET;

THENCE SOUTHWESTERLY ALONG SAID CURVE, TO THE RIGHT, THROUGH A CENTRAL ANGLE OF 90°00’04”, AN ARC DISTANCE OF 113.10 FEET; THENCE NORTH 89°59’56” WEST, A DISTANCE OF 70.16 FEET TO THE BEGINNING OF TANGENT CURVE, CONCAVE NORTHEASTERLY, HAVING A RADIUS OF 970.00 FEET;

THENCE WESTERLY, AND NORTHWESTERLY ALONG SAID CURVE, TO THE RIGHT, 191
THROUGH A CENTRAL ANGLE OF 26°53’40”, AN ARC DISTANCE OF 455.32 FEET; THENCE NORTH 63°06’16” WEST, A DISTANCE OF 86.72 FEET TO THE BEGINNING

OF A TANGENT CURVE, CONCAVE SOUTHWESTERLY, HAVING A RADIUS OF 1030.00 FEET;

THENCE NORTHWESTERLY ALONG SAID CURVE, TO THE LEFT, THROUGH A CENTRAL ANGLE OF 27°40’00”, AN ARC DISTANCE OF 497.36 FEET; THENCE SOUTH 89°13’45” WEST, A DISTANCE OF 1158.11 FEET; THENCE NORTH 00°06’53” EAST, A DISTANCE OF 508.81 FEET FOR THE TRUE POINT OF BEGINNING.
(END OF LEGAL DESCRIPTION)
192
Wastewater Connection Location
193
Project Location
194
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-2918 Agenda Date: 4/9/2024
Agenda #: F. Category: Consent Calendar
FROM:

Police Department
SUBJECT:

Police Department Monthly Information Update
RECOMMENDATION:

Accept the Police Department monthly information update for February 2024.

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

DISCUSSION:

The February 2024 monthly information report has been completed. Once the report is accepted by the City Council it will be featured on the Department website.

FISCAL IMPACT:

There is no fiscal impact.

MOTION:

Approve staff recommendation.

City of Fontana Page 1 of 1 Printed on 4/3/2024
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POLICE DEPARTMENT

MONTHLY REPORT
February 2024
196

NOTEWORTHY EVENTS
• COPE held a “Coffee With A Cop” event at Winchell’s Donuts. • Three new Fontana Police Officers graduation the San Bernardino County Sheriff’s Academy. • Fontana Police Gang Officers were involved in a lethal force encounter in Yucaipa while assisting in a gang enforcement sweep.
• COPE opened applications for the Fontana Police Department Citizen Academy. • COPE participated in an Explorer fundraising event with the Ontario Reign. • Fontana Police Narcotic Unit seized large amounts of cocaine and methamphetamine in various enforcement details.
• Fontana Police Traffic Unit conducted a DUI Checkpoint. • RRT, Gangs, and Narcotic Units seized multiple illegal firearms. • ICAC arrested several adults for child pornography.

KA1
197
Slide 2
KA1 Kevin Anderson, 2/9/2021
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199

CITYWIDE
• Priority 1 response time- 4:28 (Emergency calls like subject not breathing, shots fired, and other immediate risk to life/safety)
• Calls for service- 8,246
• Total Traffic Accidents- 190
• Non-Injury- 139, Injury - 51
• Total arrests- 449
• Hispanic- 299, White- 67 , Black- 65, All others races- 18 • Total Group A Offenses- 626
• Crimes Against Persons- 129
• Crimes Against Property- 349
• Crimes Against Society- 148
200
• Crimes Against Person- 129 CITYWIDE • Homicide- 0
• Sex Offenses- 5
• Assault- 121
• Kidnapping- 3
• Other- 0
• Crimes Against Property- 349
• Robbery- 12
• Burglary- 26
• Larceny- 152
• Destruction of Property- 38
• Fraud- 22
• Possession of Stolen Property- 32
• Motor Vehicle Theft- 55
• Other Miscellaneous Property Crimes- 12
• Crimes Against Society- 148
• Drug and Paraphernalia Possession- 102
• Possession of Child Pornography- 7
• Possession of Weapons- 39
• Other Miscellaneous Crimes- 0
201

CRIMES BY BEAT
• Police Department Beat system is NOT
geographically the same as City Council
representation Districts
• Beat 1- All area north of 210 Freeway
• Beat 2- All area south of 210 Freeway and
north of Foothill
• Beat 3- All area south of Foothill and north
of 10 Freeway
• Beat 4- All area south of the 10 Freeway
Area 1
Area 2
Area 3
Area 4
202
BEAT 1

AREA COMMANDER IS LIEUTENANT KYLE SLUSSER
EMAIL- [email protected]
DESK- (909) 350-7716
• Total Group A Offenses- 76
• Crimes Against Persons- 7
• Crimes Against Property- 67
• Crimes Against Society- 2
203
BEAT 2

AREA COMMANDER IS LIEUTENANT MATT KRAUT
EMAIL- [email protected]
DESK- (909) 356-7142
• Total Group A Offenses- 117
• Crimes Against Persons- 37
• Crimes Against Property- 61
• Crimes Against Society- 19
204
BEAT 3

AREA COMMANDER IS LIEUTENANT CHRIS TUSANT
EMAIL – [email protected]
DESK – (909) 350-7706
• Total Group A Offenses- 252
• Crimes Against Persons- 60
• Crimes Against Property- 136
• Crimes Against Society- 56
205
Beat 4

AREA COMMANDER IS LIEUTENANT TRACY DILLS
EMAIL – [email protected]
DESK – (909) 350-7707
• Total Group A Offenses- 125
• Crimes Against Persons- 23
• Crimes Against Property- 81
• Crimes Against Society- 21
206

ADDITIONAL USEFUL INFORMATION
• For more information regarding specific geographical crime data, visit www.crimemapping.com and enter your zip code
• Police Department information line- (909) 350-7740
• Police Department Dispatch non-emergency line- (909) 350-7700 • Anonymous crime reporting (909) 356-TIPS to leave a recorded message
• Report Graffiti on City Property- (909) 350-GONE
• Office of the Chief- (909) 350-7702 or [email protected] 207
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-2925 Agenda Date: 4/9/2024
Agenda #: G. Category: Consent Calendar
FROM:

Finance
SUBJECT:

Resolution of Intent to form Community Facilities District No. 113 (The Gardens Phase 2).

RECOMMENDATION:

1. Adopt Resolution No. 2024-012, of the City Council of the City of Fontana of Intention to Establish a Community Facilities District and to Authorize the Levy of Special Taxes.

2. Adopt Resolution No. 2024-013, of the City Council of the City of Fontana to Incur Bonded Indebtedness of the Proposed City of Fontana Community Facilities District No. 113 (The Gardens Phase Two).

COUNCIL GOALS:
· Practice sound fiscal management by developing long-term funding and debt management plans.

DISCUSSION:

North Fontana Investment Company, LLC and Richmond American Homes of Maryland, Inc. have initiated the process to form a Community Facilities District for the purpose of financing the acquisition of certain public facilities that are eligible under the City financing goals and policies, namely sewer, storm drain, street improvements, landscaping, and development impact fees. The formation of the district will benefit the City by funding the infrastructure projects outside of the typical improvements that would be required for the project including a contribution for a project of community benefit. CFD bond funding will allow for infrastructure to be built at one time, reducing construction inconvenience for earlier residents and enhancing the overall community aesthetics.

The project consists of approximately 36.37 gross (25.27 net taxable acres) (388 residential lots), is located on the west side of Sierra Avenue north of Casa Grande Avenue.

The proposed Rate and Method of Apportionment (RMA) includes rates to pay for bonded indebtedness and maintenance of street lighting, landscaping and parks. Initial assigned residential rates are proposed as follows:

Land
Use
Class
Planning
Area
Residential Floor Area Bond
Debt Maint Total
1 1 2,100 sf or Greater $4,137 $550 $4,687
2 1 1,950 to less than 2,100 sf $3,956 $550 $4,506
3 1 1,800 to less than 1,950 sf $3,775 $550 $4,325
4 1 1,650 to less than 1,800 sf $3,554 $550 $4,104
5 1 Less than 1,650 sf $3,344 $550 $3,894
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File #: 21-2925 Agenda Date: 4/9/2024
Agenda #: G. Category: Consent Calendar
Land
Use
Class
Planning
Area
Residential Floor Area Bond
Debt Maint Total
1 1 2,100 sf or Greater $4,137 $550 $4,687
2 1 1,950 to less than 2,100 sf $3,956 $550 $4,506
3 1 1,800 to less than 1,950 sf $3,775 $550 $4,325
4 1 1,650 to less than 1,800 sf $3,554 $550 $4,104
5 1 Less than 1,650 sf $3,344 $550 $3,894
6 2 2,100 sf or greater $3,946 $550 $4,496
7 2 1,950 to less than 2,100 sf $3,759 $550 $4,309
8 2 1,800 to less than 1,950 sf $3,572 $550 $4,122
9 2 1,650 to less than 1,800 sf $3,385 $550 $3,935
10 2 Less than 1,650 sf $3,198 $550 $3,748
11 3 & 4 2,225 sf or Greater $4,604 $550 $5,154
12 3 & 4 2,075 to less than 2,225 sf $4,259 $550 $4,809 13 3 & 4 1,925 to less than 2,075 sf $3,914 $550 $4,464 14 3 & 4 1,775 to less than 1,925 sf $3,699 $550 $4,249 15 3 & 4 Less than 1,775 sf $3,549 $550 $4,099
Sales prices for the homes have been estimated at $478,400 to $613,600. The proposed rates have been established to provide a total tax rate of less than 1.95% of the home value per City Policy.

The proposed rates for bonded indebtedness will support $17.6 million of bonds, providing funds to finance $14.8 million of facilities and/or fees. The proposed annual rates for maintenance of $550 for all planning areas will be sufficient to fund the annual maintenance costs for street lighting, landscaping and parks within and surrounding the area of the CFD. The rate also includes the maintenance costs related to the water quality system required by the State of California. The maximum annual tax rate for maintenance has been set at $770 per unit for planning areas with a 2% escalator per City Policy.

This action represents the first step in the process to establish the new district. Adoption of the proposed resolutions will set the public hearing for May 14, 2024. The levy of the proposed special taxes will be subject to the approval of the qualified electors of the new Community Facilities District at a special election.

The recommended action complies with the City Council's debt management objectives.

FISCAL IMPACT:

Most of the issuance costs are contingent upon the sale of the bonds and will be paid from proceeds.

The developer has deposited $75,000 with the City to pay for appraisal and miscellaneous costs that are non-contingent.

Annual debt service and maintenance costs will be paid from special taxes levied on the future homeowners within the district.

MOTION:

Approve staff recommendation.

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File #: 21-2925 Agenda Date: 4/9/2024
Agenda #: G. Category: Consent Calendar
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4145-2646-1517.4
RESOLUTION NO. ____

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. 113 (THE GARDENS PHASE TWO) AND

TO AUTHORIZE THE LEVY OF A SPECIAL TAX

THEREIN
WHEREAS, Section 53318 of the Mello-Roos Community Facilities Act of 1982 (the “Act”) provides that proceedings for the establishment of a community facilities district shall be instituted by a legislative body of a local agency when a petition requesting the institution of the proceedings signed by the owners of not less than 10% of the area of land proposed to be included within the community facilities district and not proposed to be exempt from the special tax, describing the boundaries of the territory that is proposed for inclusion in the area and specifying the type or types of facilities and services to be financed by the community facilities district is filed with the clerk of the legislative body; WHEREAS, Section 53318 of the Act further provides that such a petition may not be acted upon until the payment of a fee in an amount that the legislative body determines, within 45 days of receiving such petition, is sufficient to compensate the legislative body for all costs incurred in conducting proceedings to create a community facilities district pursuant to the Act; WHEREAS, the City Council (the “City Council”) of the City of Fontana (the “City”) has received from each of North Fontana Investment Company, LLC, a Delaware limited liability company (“North Fontana Investment Company”), and Richmond American Homes of Maryland, Inc., a Maryland corporation (collectively, the “Landowners”) a written petition (together, the “Petitions”), requesting the City Council to institute proceedings pursuant to the Act to establish a community facilities district (the “Community Facilities District”) and to authorize the Community Facilities District to levy a special tax within the Community Facilities District, describing the boundaries of the territory that is proposed for inclusion in the Community Facilities District and specifying the types of facilities and services to be financed by the Community Facilities District;
WHEREAS, in connection with such request to institute proceedings to establish the Community Facilities District, North Fontana Investment Company paid a fee in an amount that the City Council has determined is sufficient to compensate the City Council for all cost incurred in conducting proceedings to create the Community Facilities District pursuant to the Act; WHEREAS, the Landowners have represented and warranted to the City Council that the Landowners are the owners of 100% of the area of land proposed to be included within the Community Facilities District and not proposed to be exempt from the special tax; WHEREAS, Section 53314.9 of the Act provides that, at any time either before or after the formation of a community facilities district, the legislative body may accept advances of funds from any source, including, but not limited to, private persons or private entities and may 211
2 4145-2646-1517.4
provide, by resolution, for the use of those funds for any authorized purpose, including, but not limited to, paying any cost incurred by the local agency in creating a community facilities district;
WHEREAS, Section 53314.9 of the Act further provides that the legislative body may enter into an agreement, by resolution, with the person or entity advancing the funds, to repay all or a portion of the funds advanced, as determined by the legislative body, with or without interest, under all the following conditions: (a) the proposal to repay the funds is included in both the resolution of intention to establish a community facilities district adopted pursuant to Section 53321 of the Act and in the resolution of formation to establish a community facilities district pursuant to Section 53325.1 of the Act, (b) any proposed special tax is approved by the qualified electors of the community facilities district pursuant to the Act, and (c) any agreement shall specify that if the qualified electors of the community facilities district do not approve the proposed special tax, the local agency shall return any funds which have not been committed for any authorized purpose by the time of the election to the person or entity advancing the funds; WHEREAS, the City and North Fontana Investment Company have entered into the Deposit and Reimbursement Agreement, dated as of December 1, 2023 (the “Deposit Agreement”), which provides for the advancement of funds by North Fontana Investment Company to be used to pay costs incurred in creating the Community Facilities District and the incurrence of bonded indebtedness thereby, and provides for the repayment to North Fontana Investment Company of such funds advanced, without interest, from the proceeds of any such bonded indebtedness incurred by the Community Facilities District; and WHEREAS, the City desires to include in this Resolution, in accordance with Section 53314.9 of the Act, the proposal to repay funds pursuant to the Deposit Agreement; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fontana as follows:

Section 1. The foregoing recitals are true and correct, and the City Council so finds and determines.

Section 2. The City Council hereby finds that the Petitions are signed by the landowners owning the requisite area of land proposed to be included within the Community Facilities District and not proposed to be exempt from the Special Tax.

Section 3. The City Council proposes to establish the Community Facilities District under the terms of the Act. The boundaries of the territory proposed for inclusion in the Community Facilities District are described in the map showing the proposed Community Facilities District (the “Boundary Map”) on file in the office of the City Clerk of the City (the “City Clerk”), a copy of which is attached hereto as Exhibit A, which boundaries are hereby preliminarily approved and to which map reference is hereby made for further particulars. The City Clerk is hereby directed to sign the original Boundary Map and record, or cause to be recorded, the Boundary Map with all proper endorsements thereon in the office of the San Bernardino County Recorder within 15 days of the date of adoption of this Resolution, all as required by Section 3111 of the California Streets and Highways Code. 212
3 4145-2646-1517.4
Section 4. The name proposed for the Community Facilities District is “City of Fontana Community Facilities District No. 113 (The Gardens Phase Two)”.

Section 5. The public facilities (the “Facilities”) proposed to be financed by the Community Facilities District pursuant to the Act are described under the caption “Facilities” on Exhibit B hereto, which is by this reference incorporated herein. Those Facilities proposed to be purchased as completed public facilities are identified under the caption “Facilities to be Purchased” on Exhibit B hereto. The services (the “Services”) proposed to be financed by the Community Facilities District pursuant to the Act are described under the caption “Services” on Exhibit B hereto. The incidental expenses proposed to be incurred are identified under the caption “Incidental Expenses” on Exhibit B hereto. All or any portion of the Facilities may be financed through a financing plan, including, but not limited to, a lease, lease-purchase or installment-purchase arrangement.

Section 6. The City Council proposes that, except where funds are otherwise available, the Community Facilities District be authorized to annually levy within the Community Facilities District a special tax (the “Special Tax”) sufficient to pay for all Facilities and Services, secured by recordation of a continuing lien against all nonexempt real property in the Community Facilities District. The rate and method of apportionment of the Special Tax, in sufficient detail to allow each landowner or resident within the proposed Community Facilities District to estimate the maximum amount that he or she will have to pay, is specified in the Rate and Method of Apportionment of Special Tax (the “Rate and Method”) attached hereto as Exhibit C, which is by this reference incorporated herein. The conditions under which the obligation to pay the Special Tax to be levied to pay for Facilities may be prepaid and permanently satisfied are specified in the Rate and Method. The Special Tax will be collected in the same manner as ordinary ad valorem property taxes or in such other manner as the City Council shall determine, including direct billing of the affected property owners.

Section 7. The Special Tax may only finance the Services to the extent that they are in addition to those provided in the territory of the Community Facilities District before the Community Facilities District is created. The Services may not supplant services already available within that territory when the Community Facilities District is created. Bonds of the Community Facilities District may not be issued to fund any of the Services.

Section 8. The tax year after which no further Special Tax to pay for Facilities shall be levied against any parcel used for private residential purposes is specified in the Rate and Method. Under no circumstances shall the Special Tax to pay for Facilities in any fiscal year against any parcel used for private residential purposes be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the Community Facilities District by more than 10% above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults. For purposes of this paragraph, a parcel shall be considered “used for private residential purposes” not later than the date on which an occupancy permit for private residential use is issued. The Special Tax to pay for Services will be levied in perpetuity, as provided in the Rate and Method.

Section 9. Pursuant to Section 53344.1 of the Act, the City Council hereby reserves to itself the right and authority to allow any interested owner of property within the Community 213
4 4145-2646-1517.4
Facilities District, subject to the provisions of said Section 53344.1 and to those conditions as it may impose, and any applicable prepayment penalties as prescribed in the bond indenture or comparable instrument or document, to tender to the Community Facilities District treasurer in full payment or part payment of any installment of the Special Tax or the interest or penalties thereon that may be due or delinquent, but for which a bill has been received, any bond or other obligation secured thereby, the bond or other obligation to be taken at par and credit to be given for the accrued interest shown thereby computed to the date of tender.

Section 10. The City Council hereby fixes Tuesday, May 14, 2024, at 7:00 p.m., or as soon thereafter as the City Council may reach the matter, at 8353 Sierra Avenue, Fontana, California, as the time and place when and where the City Council will conduct a public hearing on the establishment of the Community Facilities District; provided, that, in the event the May 14, 2024 City Council meeting is held via teleconference and/or videoconference only, the means by which the public may observe such public hearing and offer public comment shall be prescribed in the notice and agenda for such City Council meeting.

Section 11. The City Clerk is hereby directed to publish, or cause to be published, a notice of said public hearing one time in a newspaper of general circulation published in the area of the proposed Community Facilities District. Publication of said notice shall be completed at least seven days prior to the date herein fixed for said public hearing. Said notice shall contain all of the information prescribed by Section 53322 of the Act.

Section 12. The authorization to levy the Special Tax shall be submitted to the qualified electors of the Community Facilities District at a special election. The proposed voting procedure shall be a vote by the landowners in the Community Facilities District conducted by mail or hand-delivered ballots, with each owner having one vote for each acre or portion of an acre such owner owns in the Community Facilities District.

Section 13. Each officer of the City who is or will be responsible for providing one or more of the proposed types of Facilities or Services is hereby directed to study, or cause to be studied, the proposed Community Facilities District and, at or before said public hearing, file a report with the City Council containing a brief description of the Facilities and Services by type that will in his or her opinion be required to adequately meet the needs of the Community Facilities District, and his or her estimate of the cost of providing the Facilities and Services.

Such officers are hereby also directed to estimate the fair and reasonable cost of the Facilities proposed to be purchased as completed public facilities and of the incidental expenses proposed to be paid. Such report shall be made a part of the record of said public hearing.

Section 14. North Fontana Investment Company has heretofore advanced certain funds, and may advance additional funds, that have been or may be used to pay costs incurred in connection with the creation of the Community Facilities District and the incurrence of bonded indebtedness thereby. The City Council proposes to repay all or a portion of such funds so advanced, without interest, solely from the proceeds of such bonded indebtedness, pursuant to the Deposit Agreement. The Deposit Agreement is hereby incorporated herein as though set forth in full herein.
214
5 4145-2646-1517.4
Section 15. All actions heretofore taken by the officers, employees and agents of the City with respect to the establishment of the Community Facilities District, or in connection with or related to any of the matters referred to herein, are hereby approved, confirmed and ratified.

Section 16. The officers, employees and agents of the City are hereby authorized and directed to take all actions and do all things that they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof.

Section 17. This Resolution shall take effect immediately upon its adoption.

APPROVED and ADOPTED by the City Council of the City of Fontana on April 9, 2024.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney
215
A-1
4145-2646-1517.4

EXHIBIT A

BOUNDARY MAP
216
217
B-1
4145-2646-1517.4

EXHIBIT B

FACILITIES, SERVICES AND INCIDENTAL EXPENSES
Facilities
The types of public facilities to be financed by the Community Facilities District are streets, including grading, paving, curbs and gutters, sidewalks, street signalization and signage, street lights and parkway and landscaping related thereto, sewers, storm drains, flood control facilities, fire protection facilities, police facilities, public facilities, landscaping, library facilities, park and recreational facilities, water distribution, treatment and storage facilities, and land, rights-of-way and easements necessary for any of such facilities.

Facilities to be Purchased
The types of public facilities to be purchased as completed facilities are streets, including grading, paving, curbs and gutters, sidewalks, street signalization and signage, street lights and parkway and landscaping related thereto, sewers, storm drains, water distribution, treatment and storage facilities, and land, rights-of-way and easements necessary for any of such facilities.

Services
The types of City services to be financed by the Community Facilities District are fire protection and suppression services, maintenance and lighting of parks, parkways, streets, roads and open space, flood and storm protection services and maintenance and operation of any real property or other tangible property with an estimated useful life of five or more years that is owned by the City.

Incidental Expenses
The incidental expenses proposed to be incurred include the following:
(a) the cost of planning and designing public facilities to be financed, including the cost of environmental evaluations of those facilities; (b) the costs associated with the creation of the Community Facilities District, issuance of bonds, determination of the amount of taxes, collection of taxes, payment of taxes, or costs otherwise incurred in order to carry out the authorized purposes of the Community Facilities District; and
(c) any other expenses incidental to the construction, completion, and inspection of the authorized work.
218
C-1
4145-2646-1517.4

EXHIBIT C

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
219
City of Fontana March 20, 2024
Community Facilities District No. 113 (The Gardens Phase Two) Page 1

RATE AND METHOD OF APPORTIONMENT FOR
CITY OF FONTANA COMMUNITY FACILITIES DISTRICT NO. 113
(THE GARDENS PHASE TWO)
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. 113 (The Gardens Phase Two) ("CFD No. 113") 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. 113, 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. For residential dwelling units within a condominium plan, the Acres applicable to each residential dwelling unit shall be determined by dividing (i) the Acres of the underlying lot or parcel on which the residential dwelling unit is constructed or to be constructed, by (ii) the total number of residential dwelling units constructed or to be constructed on such lot or parcel. 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. 113, 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. 113 or any designee thereof of complying with arbitrage rebate requirements with respect to the Special Tax and CFD No. 113 Bonds; the costs to the City, CFD No. 113 or any designee thereof of complying with disclosure requirements of the City, CFD No. 113 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. 113, 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. 113 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. 113 Bonds. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 113 for any other administrative purposes of CFD No. 113, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. 220
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Community Facilities District No. 113 (The Gardens Phase Two) Page 2 "Assessor" means the Assessor of the County.
"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 applicable Facilities Special Tax for (i) Residential Property as determined in accordance with Section C.1.a.(2) herein, and (ii) NonResidential Property as determined in accordance with Section C.1.a.(3) herein. "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. 113. "Authorized Services" means those services eligible to be funded by CFD No. 113 in accordance with the Act, namely, 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.(4) herein. "Buildout" means, for CFD No. 113, that all expected building permits for residential dwelling units and/or non-residential development to be constructed within CFD No. 113 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. 113" means City of Fontana Community Facilities District No. 113 (The Gardens Phase Two).
"CFD No. 113 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. 113 and secured by the Facilities Special Tax levy on property within the boundaries of CFD No. 113 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 (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.
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Community Facilities District No. 113 (The Gardens Phase Two) Page 3 "Council" means the City Council of the City acting as the legislative body of CFD No. 113. "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, 2024 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 to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property within CFD No. 113 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. 113 Bonds are issued, as modified, amended and/or supplemented from time to time.
"Land Use Class" means any of the classes listed in Table 1, Table 5, or Table 6 herein. "Lower Income Households Welfare Exemption Property" means, for each Fiscal Year, an Assessor’s Parcel within the boundaries of CFD No. 113 that is subject 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.
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Community Facilities District No. 113 (The Gardens Phase Two) Page 4 "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 any parcel in a given Land Use Class has sold or is 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. 113 Bonds which are outstanding under the Indenture.
"Planning Area" means an area designated with the letters "P.A." as shown on Exhibit B. "Price Point Consultant" means any consultant or firm of such consultants selected by CFD No. 113 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. 113 or the City, (d) does not have any substantial interest, direct or indirect, with or in (i) CFD No. 113, (ii) the City, (iii) any owner of real property in CFD No. 113, or (iv) any real property in CFD No. 113, and (e) is not connected with CFD No. 113 or the City as an officer or employee thereof, but who may be regularly retained to make reports to CFD No. 113 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. 113 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, 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 subassociation, 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 223
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Community Facilities District No. 113 (The Gardens Phase Two) Page 5 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. 113 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. 113.
"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 to be levied in each Fiscal Year on each Assessor’s Parcel of Developed Property within CFD No. 113 to fund the Special Tax Requirement for Services, as set forth in Section C.2 herein. "Special Tax" or "Special Taxes" 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. 113 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 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. 113 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 224
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Community Facilities District No. 113 (The Gardens Phase Two) Page 6 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. 113 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 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.

B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, commencing with Fiscal Year 2024-2025, all Taxable Property within CFD No. 113 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. 113 Bonds, the Assigned Facilities Special Tax for Residential Property (set forth in Table 1 below) 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 225
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Community Facilities District No. 113 (The Gardens Phase Two) Page 7 or more Land Use Classes of residential property constructed or to be constructed within CFD No. 113 shall exceed 1.95% of the Minimum Sale Price of such residential property constructed or to be constructed within CFD No. 113, 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 for Residential Property, the CFD Administrator shall also reduce the Assigned Facilities Special Tax for Non-Residential in accordance with Section C.1.a.(3) herein, and the Backup Facilities Special Tax in accordance with Section C.1.a.(4) 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. 113. Upon receipt thereof, if in satisfactory form, CFD No. 113 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. 113. 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. 113 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. 113. 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. 113 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. 113, 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
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 for Residential Property Residential Property shall be assigned to Land Use Classes 1 through 15 as listed in Table 1 below based on the Planning Area, Description, and the Residential Floor Area associated with each such residential dwelling unit. The Assigned Facilities Special Tax that shall be levied in any Fiscal Year for each Land Use Class is shown below in Table 1 and shall not be subject to escalation.
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Community Facilities District No. 113 (The Gardens Phase Two) Page 8 Table 1
Assigned Facilities Special Tax for Residential Property City of Fontana CFD No. 113 (The Gardens Phase Two)
Land
Use
Class
Planning
Area Description
Residential Floor
Area (square feet)
Assigned
Facilities
Special Tax
1 Planning
Area 1
Residential Property 2,100 or greater $4,137 per unit
2 Residential Property 1,950 to less than 2,100 $3,956 per unit 3 Residential Property 1,800 to less than 1,950 $3,775 per unit 4 Residential Property 1,650 to less than 1,800 $3,554 per unit 5 Residential Property Less than 1,650 $3,344 per unit
6 Planning
Area 2
Residential Property 2,100 or greater $3,946 per unit
7 Residential Property 1,950 to less than 2,100 $3,759 per unit 8 Residential Property 1,800 to less than 1,950 $3,572 per unit 9 Residential Property 1,650 to less than 1,800 $3,385 per unit 10 Residential Property Less than 1,650 $3,198 per unit 11 Planning
Areas
3 & 4
Residential Property 2,225 or greater $4,604 per unit
12 Residential Property 2,075 to less than 2,225 $4,259 per unit 13 Residential Property 1,925 to less than 2,075 $3,914 per unit 14 Residential Property 1,775 to less than 1,925 $3,699 per unit 15 Residential Property Less than 1,775 $3,549 per unit (3). Assigned Facilities Special Tax for Non-Residential Property The Assigned Facilities Special Tax for an Assessor’s Parcel of Non-Residential Property within a Planning Area shall equal the lesser of (a) the Assigned Facilities Special Tax applicable for such Planning Area set forth in Table 2 below (as such Assigned Facilities Special Tax shall not be subject to escalation), or (b) in connection with any reduction in the Assigned Facilities Special Tax for Residential Property as set forth in Section C.1 herein, the amount per Acre calculated for each Planning Area pursuant to the formula below:

RAFST = AFST  ATP
These terms have the following meaning:

RAFST = the reduced Assigned Facilities Special Tax for Non-Residential Property within a Planning Area.

AFST = The total estimated Assigned Facilities Special Tax levy within such Planning Area 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 within such Planning Area assuming Buildout of CFD No. 113.

ATP = The sum of the Acreage of all Taxable Property within a Final Subdivision (assuming Buildout of CFD No. 113) within such Planning Area (after excluding 227
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Community Facilities District No. 113 (The Gardens Phase Two) Page 9 Public Property and Property Owner Association Property as set forth in Section E.1 herein).

Table 2
Assigned Facilities Special Tax for Non-Residential Property City of Fontana CFD No. 113 (The Gardens Phase Two)
Planning Area
Assigned
Facilities
Special Tax
P.A. 1 $59,110 per Acre
P.A. 2 $59,970 per Acre
P.A. 3 $51,370 per Acre
P.A. 4 $52,300 per Acre
(4). Backup Facilities Special Tax
The Backup Facilities Special Tax for an Assessor’s Parcel of Developed Property within a Planning Area shall equal the lesser of (a) the Backup Facilities Special Tax applicable for such Planning Area set forth in Table 3 below (as such Backup Facilities Special Tax shall not be subject to escalation), 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 for each Planning Area pursuant to the formula below:

RBFST = AFST  ATPX
These terms have the following meaning:

RBFST = the reduced Backup Facilities Special Tax for Developed Property within a Planning Area.

AFST = The total estimated Assigned Facilities Special Tax levy within such Planning Area 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 within such Planning Area assuming Buildout of CFD No. 113.

ATPX = The sum of the Acreage of all Taxable Property within a Final Subdivision (assuming Buildout of CFD No. 113) within such Planning Area (after excluding Public Property and Property Owner Association Property as set forth in Section E.1 herein) multiplied by 85%.

Table 3
Backup Facilities Special Tax for Developed Property
City of Fontana CFD No. 113 (The Gardens Phase Two)
Planning Area
Backup
Facilities
Special Tax
P.A. 1 $69,540 per Acre
P.A. 2 $70,560 per Acre
P.A. 3 $60,450 per Acre
P.A. 4 $61,530 per Acre
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Community Facilities District No. 113 (The Gardens Phase Two) Page 10 Furthermore, all Assessors’ Parcels within CFD No. 113 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. 113 results in 110% debt service coverage (i.e., the Assigned Facilities Special Tax that shall be levied against all Developed Property in CFD No. 113 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. 113 Bonds have already been issued or the Council has covenanted that it shall not issue any additional CFD No. 113 Bonds (except refunding bonds) to be supported by the Facilities Special Tax in CFD No. 113.
(5). 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 within a Planning Area shall be the applicable amount for such Planning Area set forth in Table 4 below. The Maximum Facilities Special Tax for Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property shall not be subject to escalation and shall therefore remain the same in every Fiscal Year.

Table 4
Maximum Facilities Special Tax for Undeveloped Property, Taxable Public Property and Taxable Property Owner Association Property City of Fontana CFD No. 113 (The Gardens Phase Two)
Planning Area
Maximum
Facilities
Special Tax
P.A. 1 $69,540 per Acre
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Community Facilities District No. 113 (The Gardens Phase Two) Page 11 Planning Area
Maximum
Facilities
Special Tax
P.A. 2 $70,560 per Acre
P.A. 3 $60,450 per Acre
P.A. 4 $61,530 per Acre

2. Services Special Tax
For purposes of the Services Special Tax, an Assessor(s) Parcel of Developed Property within a Final Residential Subdivision shall be assigned to Land Use Classes 1, as identified in Table 5 and Table 6 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 or other available documents.
a. Maximum Services Special Tax
The Fiscal Year 2023-2024 Maximum Services Special Tax for each Land Use Class of Developed Property is shown below in Table 5.

Table 5
Maximum Services Special Tax for Developed Property
City of Fontana CFD No. 113 (The Gardens Phase Two)
Fiscal Year 2023-2024
Land
Use
Class Description
Maximum Services
Special Tax
1 Final Residential Subdivision $770 per unit
2 Non-Residential Property $11,830 per Acre
b. Assigned Services Special Tax
The Fiscal Year 2023-2024 Assigned Services Special Tax for each Land Use Class of Developed Property is shown below in Table 6.

Table 6
Assigned Services Special Tax for Developed Property
City of Fontana CFD No. 113 (The Gardens Phase Two)
Fiscal Year 2023-2024
Land
Use
Class Description
Assigned Services
Special Tax
1 Final Residential Subdivision $550 per unit
2 Non-Residential Property $8,450 per Acre
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Community Facilities District No. 113 (The Gardens Phase Two) Page 12 c. Increase in the Maximum Services Special Tax
The Maximum Services Special Tax in Table 5 above shall be applicable for Fiscal Year 2023-2024, and shall increase thereafter, commencing on July 1, 2024, and on each July 1 thereafter 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 in Table 6 above shall be applicable for Fiscal Year 2023-2024, and shall increase thereafter, commencing on July 1, 2024, 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 2024-2025, 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 whose Maximum Facilities Special Tax is determined through the application of the Backup Facilities Special Tax shall be increased in equal 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 231
City of Fontana March 20, 2024
Community Facilities District No. 113 (The Gardens Phase Two) Page 13 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. 113 Bonds have already been issued or the Council has covenanted that it shall not issue any additional CFD No. 113 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. 113 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 2024-2025 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.

E. EXEMPTIONS

1. Facilities Special Tax
No Facilities Special Tax shall be levied on up to the applicable Acreage limit of Public Property and/or Property Owner Association Property established for each Planning Area as set forth in Table 7 below. Tax-exempt status shall be assigned by the CFD Administrator in the chronological order in which property within a Planning Area 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.
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City of Fontana March 20, 2024
Community Facilities District No. 113 (The Gardens Phase Two) Page 14 Table 7
Exempt Acreage Limits
City of Fontana CFD No. 113 (The Gardens Phase Two)
Planning Area
Exempt
Acreage Limit
P.A. 1 3.36 Acres
P.A. 2 2.00 Acres
P.A. 3 2.66 Acres
P.A. 4 3.08 Acres
Notwithstanding the above, an Assessor’s Parcel within a Planning Area that is transferred to a public agency or property owner’s association prior to the issuance of the first series of CFD No. 113 Bonds that causes the Acreage of Public Property and Property Owner Association Property within such Planning Area to exceed the applicable 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 herein, at up to 100% of the applicable Maximum Facilities Special Tax for Taxable Public Property and Taxable 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. 113 may directly bill the Special Tax, and/or 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. 233
City of Fontana March 20, 2024
Community Facilities District No. 113 (The Gardens Phase Two) Page 15 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. 113 is permitted to prepay the Facilities Special Tax. The obligation of the Assessor’s Parcel to pay the Facilities Special Tax may be fully prepaid and permanently satisfied or partially prepaid 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, 2024, 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. 113 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 $20,183,675 in 2024 dollars, which shall increase by the Construction Inflation Index on July 1, 2025, and on each July 1 thereafter, or such lower 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. 113, or (ii) shall be determined by the Council concurrently with a covenant that it shall not issue any more CFD No. 113 Bonds (except refunding bonds) to be supported by the Facilities Special Tax levy under this Rate and Method of Apportionment.
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Community Facilities District No. 113 (The Gardens Phase Two) Page 16 "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. 113 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
Total: 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 Assessor’s Parcels of Undeveloped Property for which a building permit has been issued after January 1, 2024, 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. 113 based on the Assigned Facilities Special Taxes for Developed Property which could be levied on all expected development assuming Buildout of CFD No. 113, excluding any Assessor’s Parcels which have been prepaid, and
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City of Fontana March 20, 2024
Community Facilities District No. 113 (The Gardens Phase Two) Page 17 (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. 113, excluding any Assessor’s Parcels which have 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%) set forth in the Indenture, 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").

12. The administrative fees and expenses of CFD No. 113 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. 113 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). 236
City of Fontana March 20, 2024
Community Facilities District No. 113 (The Gardens Phase Two) Page 18

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 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.

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. 113, 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. 113 that there has been a partial 237
City of Fontana March 20, 2024
Community Facilities District No. 113 (The Gardens Phase Two) Page 19 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. 113 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 2024-2025. The Services Special Tax shall be levied in perpetuity to fund the Special Tax Requirement for Services.

T/Clients/FONTANA/MELLO/CFD Nos. 113 (The Gardens Phase Two)/Rate and Method/Fontana CFD No. 113 (The Gardens Phase Two) RMA for ROI.docx 238
A-1

EXHIBIT A

CERTIFICATE TO AMEND FACILITIES SPECIAL TAX
CFD NO. 113 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. 113 (The Gardens Phase Two) ("CFD No. 113"), the Assigned Facilities Special Tax and the Backup Facilities Special Tax for Developed Property within CFD No. 113 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 Residential Property within CFD No. 113 shall be modified as follows:

Land
Use
Class
Planning
Area Description
Residential Floor
Area (square feet)
Original
Assigned
Facilities
Special Tax
Modified
Assigned
Facilities
Special Tax
1 Planning
Area 1
Residential Property 2,100 or greater $4,137 per unit $[____] per unit 2 Residential Property 1,950 to less than 2,100 $3,956 per unit $[____] per unit 3 Residential Property 1,800 to less than 1,950 $3,775 per unit $[____] per unit 4 Residential Property 1,650 to less than 1,800 $3,554 per unit $[____] per unit 5 Residential Property Less than 1,650 $3,344 per unit $[____] per unit 6 Planning
Area 2
Residential Property 2,100 or greater $3,946 per unit $[____] per unit 7 Residential Property 1,950 to less than 2,100 $3,759 per unit $[____] per unit 8 Residential Property 1,800 to less than 1,950 $3,572 per unit $[____] per unit 9 Residential Property 1,650 to less than 1,800 $3,385 per unit $[____] per unit 10 Residential Property Less than 1,650 $3,198 per unit $[____] per unit 11 Planning
Areas
3 & 4
Residential Property 2,225 or greater $4,604 per unit $[____] per unit 12 Residential Property 2,075 to less than 2,225 $4,259 per unit $[____] per unit 13 Residential Property 1,925 to less than 2,075 $3,914 per unit $[____] per unit 14 Residential Property 1,775 to less than 1,925 $3,699 per unit $[____] per unit 15 Residential Property Less than 1,775 $3,549 per unit $[____] per unit (b) The Assigned Facilities Special Tax for Non-Residential Property within a Planning Area, set forth in Table 2 within Section C.1.a.(3) of the Rate and Method, shall be modified as follows:

Planning
Area
Original
Assigned
Facilities
Special Tax
Modified
Assigned
Facilities
Special Tax
P.A. 1 $59,110 per Acre $[____] per Acre
P.A. 2 $59,970 per Acre $[____] per Acre
P.A. 3 $51,370 per Acre $[____] per Acre
P.A. 4 $52,300 per Acre $[____] per Acre
239
A-2
(c) The Backup Facilities Special Tax for Developed Property within a Planning Area, set forth in Table 3 within Section C.1.a.(4) of the Rate and Method, shall be modified as follows:

Planning
Area
Original
Backup
Facilities
Special Tax
Modified
Backup
Facilities
Special Tax
P.A. 1 $69,540 per Acre $[____] per Acre
P.A. 2 $70,560 per Acre $[____] per Acre
P.A. 3 $60,450 per Acre $[____] per Acre
P.A. 4 $61,530 per Acre $[____] 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. 113 Bonds.

3. Upon execution of the certificate by CFD No. 113, CFD No. 113 shall cause an amended notice of Special Tax lien for CFD No. 113 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. 113, receipt of this certificate and modification of the Rate and Method as set forth in this certificate.

CITY OF FONTANA COMMUNITY FACILITIES DISTRICT NO. 113
(THE GARDENS PHASE TWO)
By:___________________________ Date:______________________ 240
B

EXHIBIT B

PLANNING AREAS
Planning Area (P.A.) Legal Description
Planning Area 1 Lot 1 of Tract No. 20362
Planning Area 2 Lot 2 of Tract No. 20362
Planning Area 3 Lot 3 of Tract No. 20362
Planning Area 4 Lot 4 of Tract No. 20362
Reference is hereby made to Tract No. 20362 filed in Book 362 of Tract Maps at Pages 78 through 84 in the Office of the San Bernardino County Recorder (recorded as Document No. 2022- 0129505), Tract No. 20363 filed in Book 363 of Tract Maps at Pages 58 through 66 in the Office of the San Bernardino County Recorder (recorded as Document No. 2022-0259528), and Tract No. 20364 filed in Book 363 of Tract Maps at Pages 67 through 71 in the Office of the San Bernardino County Recorder (recorded as Document No. 2022-0259529) for a description of the lines and dimensions of the tracts and lots listed above.
241
4145-2646-1517.4
I, Germaine Key, City Clerk of the City of Fontana, California, and Ex-Officio Clerk of the City Council, do hereby certify that the foregoing Resolution is the actual Resolution duly and regularly adopted by the City Council of said City at a regular meeting thereof, held on April 9, 2024, by the following vote to-wit:

AYES:

NOES:

ABSENT:

City Clerk
Mayor
ATTEST:

City Clerk
242
4164-2228-6925.3
RESOLUTION NO. ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF FONTANA DECLARING IT NECESSARY FOR CITY OF
FONTANA COMMUNITY FACILITIES DISTRICT NO. 113
(THE GARDENS PHASE TWO) TO INCUR BONDED

INDEBTEDNESS
WHEREAS, the City Council (the “City Council”) of the City of Fontana (the “City”), pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), has this date 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. 113 (The Gardens Phase Two) and to Authorize the Levy of a Special Tax Therein,” stating its intention to establish City of Fontana Community Facilities District No. 113 (The Gardens Phase Two) (the “Community Facilities District”) and to authorize the Community Facilities District to levy a special tax within the Community Facilities District for the purpose of financing certain public facilities (the “Facilities”) and services; and WHEREAS, the City Council deems it necessary for the Community Facilities District to incur bonded indebtedness;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fontana as follows:

Section 1. The foregoing recitals are true and correct, and the City Council so finds and determines.

Section 2. The City Council declares it necessary for the Community Facilities District to incur bonded indebtedness.

Section 3. The proposed debt will be incurred for the purpose of financing the costs of the Facilities, including all costs and estimated costs incidental to, or connected with, the accomplishment of said purpose, including, but not limited to, such costs and estimated costs as are described in Section 53345.3 of the Act.

Section 4. The maximum amount of the proposed debt is $24,000,000.

Section 5. The City Council hereby fixes Tuesday, May 14, 2024, at 7:00 p.m., or as soon thereafter as the City Council may reach the matter, at 8353 Sierra Avenue, Fontana, California, as the time and place when and where the City Council will conduct a public hearing on the proposed debt authorization; provided, that, in the event the May 14, 2024 City Council meeting is held via teleconference and/or videoconference only, the means by which the public may observe such public hearing and offer public comment shall be prescribed in the notice and agenda for such City Council meeting.

Section 6. The City Clerk of the City is hereby directed to publish, or cause to be published, a notice of said public hearing one time in a newspaper of general circulation published in the area of the proposed Community Facilities District. Publication of said notice shall be 243
2 4164-2228-6925.3
completed at least seven days prior to the date herein fixed for said public hearing. Said notice shall contain all of the information prescribed by Section 53346 of the Act.

Section 7. All actions heretofore taken by the officers, employees and agents of the City with respect to the incurrence of bonded indebtedness by the Community Facilities District, or in connection with or related to any of the matters referred to herein, are hereby approved, confirmed and ratified.

Section 8. The officers, employees and agents of the City are hereby authorized and directed to take all actions and do all things that they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof.

Section 9. This Resolution shall take effect immediately upon its adoption.

APPROVED and ADOPTED by the City Council of the City of Fontana on April 9, 2024.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney
244
4164-2228-6925.3
I, Germaine Key, City Clerk of the City of Fontana, California, and Ex-Officio Clerk of the City Council, do hereby certify that the foregoing Resolution is the actual Resolution duly and regularly adopted by the City Council of said City at a regular meeting thereof, held on April 9, 2024, by the following vote to-wit:

AYES:

NOES:

ABSENT:

City Clerk
Mayor
ATTEST:

City Clerk
245
246
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-2928 Agenda Date: 4/9/2024
Agenda #: H. Category: Consent Calendar
FROM:

Finance
SUBJECT:

Resolution of Intent to Form Community Facilities District No. 114M (Tract 20512) RECOMMENDATION:

1. Adopt Resolution No. 2024-014, declaring the intention of the City Council of the City of Fontana to form the City of Fontana Community Facilities District No. 114M.

COUNCIL GOALS:
· Practice sound fiscal management by fully funding liabilities and reserves. · Practice sound fiscal management by developing long-term funding and debt management plans.

DISCUSSION:

The development of Tract 20512 is actively proceeding. As part of the conditions of approval, the developer is to establish the community facilities district to pay for certain public services as described in the Resolution.

The boundaries of the proposed community facilities district, Community Facilities District No. 114M (the “District”), include approximately 9 acres (85 units) of residential property and is located at the intersection of Summit Avenue and Citrus Road. The property is owned by D.R. Horton Los Angeles Holding Company, Inc.

Due to the passage of Proposition 218 in November of 1996, alternate financing plans other than a traditional Lighting and Landscape District have been developed to ensure continuous financing of these maintenance obligations. The City Attorney’s office, staff, and the developer believe that the establishment of a community facilities district which provides services and maintenance is the best protection to the City to have these obligations funded by the future residents who will receive the benefits.

The establishment of the District would provide for the funding of annual maintenance and certain services through the levy of a separate special tax on taxable parcels within the boundaries of the District.

The District’s proposed 2024-25 special tax is $648 per taxable assessor’s parcel consisting of $371 for maintenance, $7 for street lighting and $270 for parks. The District’s 2024-25 maximum special tax has been established at $907 per taxable assessor’s parcel and allows for a 2% increase per year.

The special taxes for the District and any assessments or special taxes for the school district, together with the projected ad valorem property taxes, do not exceed the City Council policy of 1.95% City of Fontana Page 1 of 2 Printed on 4/3/2024
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File #: 21-2928 Agenda Date: 4/9/2024
Agenda #: H. Category: Consent Calendar
together with the projected ad valorem property taxes, do not exceed the City Council policy of 1.95% of the sales price.

Attached is the Resolution stating the City Council’s intention to proceed with the formation of the District (the “Resolution of Intention”), which includes the boundary map and the Rate and Method of Apportionment as exhibits thereto. Also attached is a proposed calendar of events from Best Best & Krieger, LLP. Additionally, the property owner will waive all time limits and other requirements of the California Elections Code in order for the special election to be held on May 14, 2024, after the public hearing.

FISCAL IMPACT:

This action is the first in an approval process which spans two City Council meetings to establish the District for this project and to provide for the levy of the special tax. All costs of establishing the District are paid by the developer, the current property owner, with ongoing annual maintenance service costs paid by the property owners.

MOTION:

Approve the Resolution of Intention upon staff recommendation.

City of Fontana Page 2 of 2 Printed on 4/3/2024
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09960.00000\42146479.1
1 RESOLUTION NO. ____

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

FONTANA DECLARING ITS INTENTION TO ESTABLISH

CITY OF FONTANA COMMUNITY FACILITIES DISTRICT
NO. 114M AND TO AUTHORIZE THE LEVY OF A SPECIAL

TAX THEREIN TO FINANCE THE PROVISION OF

CERTAIN PUBLIC SERVICES
WHEREAS, the City Council (the “City Council”) of the City of Fontana (the “City”) has received a written petition from the owner (the “Owner”) of certain real property within the City requesting that the City Council initiate proceedings for the formation of a community facilities district, pursuant to Chapter 2.5 (commencing with Section 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”) for the purpose of financing certain public services described in Exhibit A hereto (the “Services”) which are necessary to meet increased demands placed upon the City as a result of the development of real property within the territory to be included in the community facilities district; and
WHEREAS, Section 53313 of the Act provides that a community facilities district may be established to finance certain types of services, including but not limited to the Services; and WHEREAS, the Owner is the owners of all of the property which is proposed to be included within the proposed community facilities district; and WHEREAS, pursuant to such petition the City Council desires to initiate proceedings to consider the formation of a community facilities district which shall hereinafter be referred to as City of Fontana Community Facilities District No. 114M (the “District”); and WHEREAS, the Act provides that the City Council may initiate proceedings to establish a community facilities district only if it has first considered and adopted local goals and policies concerning the use of community facilities districts; and WHEREAS, the City Council has previously established its local goals and policies concerning the use of community facilities districts (the “Policy”) and the proposed formation complies with the Policy; and
WHEREAS, having received such a petition, the City Council is required to institute proceedings for the formation of the District by the adoption of a resolution of intention to initiate the proceedings for the establishment of the District, to set forth the boundaries for the District, to indicate the type of public services proposed to be financed by the District, to indicate the rate and method of apportionment of a special tax sufficient to finance the public services and the administration of the District, and to set a time and place for a public hearing relating to the establishment of the District.
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2 NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Fontana, as follows:

Section 1. Recitals. The foregoing recitals are true and correct and the City Council hereby finds and determines.

Section 2. Proposed Community Facilities District. A community facilities district is proposed to be established under the provisions of the Act. The name proposed for the District is “City of Fontana Community Facilities District No. 114M.” Section 3. Description and Map of Boundaries. The boundaries of the District are shown on the map entitled “Proposed Boundaries of City of Fontana Community Facilities District No. 114M, San Bernardino County, State of California” which is on file with the City Clerk, and attached hereto as Exhibit “B” and incorporated herein by this reference. Said map is hereby approved and, pursuant to Section 3110 of the California Streets and Highways Code, the City Clerk shall, after conforming with the other requirements of Section 3111 of the California Streets and Highways Code, record the original of said map in the office of the City Clerk, and within 15 days of the adoption of this Resolution but not later than 15 days prior to the date of the public hearing set forth in Section 8 hereof shall file a copy of said boundary map with the County ClerkRecorder of the County of San Bernardino.

Section 4. Types of Services; Incidental Expenses. It is the further intention of the City Council to finance the Services generally described in Exhibit “A” attached hereto and incorporated herein by this reference and all costs associated with the establishment of the District, administration thereof, the determination of the amount of any special taxes to be levied, the costs of collecting any special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the District.

Section 5. Special Taxes and Appropriations Limit. It is the intention of the City Council that, except where funds are otherwise available, a special tax sufficient to pay for the Services and related incidental expenses authorized by the Act, secured by the recordation of a continuing lien against all non-exempt real property in the District, shall be annually levied within the boundaries of the District pursuant to the Rate and Method (defined below).

Particulars as to the rate and method of apportionment of the proposed special tax are set forth in the attached Exhibit “C (the “Rate and Method”), which is incorporated herein by this reference and which sets forth in sufficient detail the rate and method of apportionment of the special taxes to allow each landowner or resident within the proposed District to clearly estimate the maximum amount that such person will have to pay.

Under no circumstances will the special taxes levied in any fiscal year against any parcel used for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels by more than ten percent (10%) above the amount that would have been levied in that fiscal year had there not been any such delinquencies or defaults.

Further, the maximum authorized special tax for financing the Services that may be levied against any parcel used for private residential purposes is specified in the Rate and Method as a dollar 250
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3 amount. A parcel shall be considered “used for private residential purposes” not later than the date on which an occupancy permit or the equivalent for private residential use is issued for such parcel.

The special tax obligation for any parcel may not be prepaid.

Pursuant to Section 53340 of the Act, said special taxes shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided however, that the District may collect special taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent assessor’s parcels as permitted by the Act.

Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure the levy of special taxes shall attach to all non-exempt real property in the District, and that lien shall continue in force and effect until the collection of the special taxes ceases.

It is the intention of the City Council, pursuant to Section 53325.7 of the Act, to establish the initial appropriations limit, as defined by subdivision (h) of Section 8 of Article XIIIB of the California Constitution, for the District in the amount of $5,000,000.

Section 6. Exempt Properties. 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. Additionally property may be exempt from the levy of special taxes pursuant to the provisions of the Rate and Method.

Section 7. Necessity. It is further determined by the City Council that the Services are necessary to meet increased demands and needs placed upon the City as a result of development within the boundaries of the District.

Section 8. Hearing. A public hearing will be held by the City Council to consider the formation of the District, the proposed levy of special taxes therein, the proposed rate, method of appointment, and manner of collection of the special taxes, and all other matters as set forth in this Resolution at 2:00 p.m. on May 14, 2024 in the City Council Chambers, 8353 Sierra Avenue, Fontana, California. At such hearing, any persons interested, including all taxpayers, property owners, and registered voters within the District, may appear and be heard, and the testimony of all interested persons or taxpayers for or against the establishment of the District and the levy of the special taxes, or the extent of the District, or the establishment of an appropriations limit therefor, or on any other matters set forth in this Resolution, will be heard and considered.

Any protests to the proposals in this Resolution may be made orally or in writing by any interested persons or taxpayers, except that any protests pertaining to the regularity or sufficiency of such proceedings shall be in writing and shall clearly set forth the irregularities and defects to which the objection is made. The City Council may waive any irregularities in the form or content of any written protest and at such public hearing may correct minor defects in such proceedings.

All written protests not presented in person by the protester at the public hearing shall be field with the City Clerk on or before the time fixed for the public hearing in order to be received and considered. Any written protest may be withdrawn in writing at any time before the conclusion of such public hearing.
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4 If fifty percent (50%) or more of the registered voters, or six registered voters, whichever is more, residing within the territory proposed to be included in the District and not exempt from the levy of special taxes, or the owners or one-half or more of the area of the land in said territory, file written protests against the formation of the District, and protests are not withdrawn so as to reduce the value of the protest to less than a majority, no further proceedings to create the District or to levy the specified special taxes shall be taken for a period of one year from the date of the decision of the City Council. If a majority of protests of the registered voters or of the landowners are only against the furnishing of a specified type or types of Services within the District, those types of Services will be eliminated from the resolution of formation establishing the District.

The public hearing may be continued from time to time, but shall be completed within thirty (30) days, except that if the City Council finds that the complexity of the District or the need for public participation requires additional time, the public hearing may be continued from time to time for a period not to exceed six (6) months.

At the conclusion of the public hearing, the City Council may abandon the proposed formation or may, after passing upon all protests, determine to proceed with establishing the District.

Section 9. Notice. The City Clerk shall publish a notice of the time and place of said public hearing as required by Section 53322 of the Act, and may also give notice of the time and place of said hearing by first-class mail to each registered voter and to each landowner within the proposed boundaries of the District as prescribed by Section 53322.4 of the Act. Said notice shall be published in a newspaper of general circulation within the boundaries of the District at least seven (7) days before the date of the public hearing, and may be mailed, first-class postage prepaid, to each owner of land and each registered voter residing within the boundaries of the District at least fifteen (15) days prior to the date of the public hearing, and shall contain the information required by said Section 53322.

Section 10. Report. The officers of the City who will be responsible for providing the proposed Services to be provided within and financed by the District, if it is established, are hereby directed to study the District, and, at or before the time of said hearing, file a report or reports with the City Council containing a brief description of the Services by type which will in their opinion be required to adequately meet the needs of the new development expected to occur within the District and their estimates of the fair and reasonable cost of providing those Services, and the related incidental expenses to be incurred in connection therewith. Such report shall be submitted to the City Council for its review, shall be available for inspection by the public, and shall be made a part of the record of the public hearing to be held pursuant to Section 8 hereof.

Section 11. Description of Voting Procedures. The voting procedures to be followed shall be pursuant to Section 53326 of the Act and pursuant to the applicable provisions of the California Election Code. If the City Council determines at the conclusion of the public hearing to proceed with the establishment of the District, it expects that the proposed voting will be by the landowners voting in accordance with the Act, as the City Council is informed that during each of the ninety (90) days prior to the date set for the hearing, there have been fewer than twelve (12) registered voters residing in the proposed boundaries of the District. The City Council hereby requires this information to be confirmed before ordering the election. 252
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5 Section 12. Effective Date. This Resolution shall take effect from and after the date of its passage and adoption.

APPROVED AND ADOPTED this 9
th day of April, 2024.

READ AND APPROVED AS TO LEGAL FORM:
_____________________________________
City Attorney
I, Germaine Key, City Clerk of the City of Fontana, 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 9
th day of April, 2024, by the following vote to wit:

AYES:

NOES:

ABSENT:
_________
City Clerk of the City of Fontana
_________
Mayor of the City of Fontana
ATTEST:
_________________________________
City Clerk
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A-1

EXHIBIT A

DESCRIPTION OF PUBLIC SERVICES
The types of services to be provided by the proposed community facilities district are the maintenance of parks, parkways, street lighting and open space within and surrounding the area of the District and within and surrounding the area of any territory to be annexed to the District in the future and the costs associated with the determination of the amount of a collection of taxes, the payment of taxes and costs otherwise incurred in order to carry out the authorized purposes of the community facilities district.
“Maintenance” means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of such parks, parkways, street lighting and open space, and the incidental costs related thereto, including but not limited to:
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.
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B-1

EXHIBIT B

BOUNDARY MAP
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C-1

EXHIBIT C

RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 114M OF THE

CITY OF FONTANA, COUNTY OF SAN BERNARDINO,

STATE OF CALIFORNIA
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. 114M ("CFD No. 114M") and collected each Fiscal Year, commencing in Fiscal Year 2024-2025, 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. 114M, 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. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 114M, 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 to the City, CFD No. 114M or any designee thereof of complying with City or CFD No. 114M disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 114M or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 114M for any other administrative purposes of CFD No. 114M, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of 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.
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C-2
"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. “Assessor’s Parcel Number” means that number assigned to an Assessor’s Parcel by the County of San Bernardino for purposes of identification. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, providing for the levy and collection of the Special Taxes, and performing other duties as set forth herein. “CFD No. 114M” means the City of Fontana Community Facilities District No. 114M. "City" means the City of Fontana, California.
"Council" means the City Council of the City of Fontana, acting as the legislative body of CFD No. 114M.
"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 has been recorded with the County, as of January 1 of the previous Fiscal Year.
"Fiscal Year" means the period starting July 1 and ending on the following June 30. "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 hereof, that can be levied by CFD No. 114M in any Fiscal Year on any Assessor’s Parcel.
“Property Owner Association Property" means, for each Fiscal Year, any Assessor’s Parcel within the boundaries of CFD No. 114M that was owned by or irrevocably offered for dedication to a property owner association, including any master or sub-association, as of January 1 of the previous Fiscal Year.
“Proportionately” means, for Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor’s Parcels of Developed Property.
"Public Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 114M 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 257
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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. To ensure that property is classified as Public Property in the first Fiscal Year after it is acquired by, irrevocably offered for dedication to, or dedicated to a public agency, the property owner shall notify the CFD Administrator in writing of such acquisition, offer, or dedication not later than June 30 of the Fiscal Year in which the acquisition, offer, or dedication occurred. “Rate and Method of Apportionment” means this Rate and Method of Apportionment of Special Taxes for CFD No. 114M.
"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. 114M to pay for: (1) maintenance services authorized to be financed by CFD No. 114M, (2) Administrative Expenses, (3) anticipated delinquent special taxes (such delinquent special taxes shall be estimated based on the delinquency rate in CFD No. 114M for the previous Fiscal Year), and (4) less a credit for funds available to reduce the annual Special Tax levy, if any, as determined by the CFD Administrator. "Taxable Property" means all of the Assessor’s Parcels within the boundaries of CFD No. 114M 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. "Welfare Exemption" means, for each Fiscal Year, any Assessor's Parcel that is used exclusively for charitable, hospital, or religious purposes and that has a property tax welfare exemption as indicated in the County’s assessor’s roll finalized as of the last preceding January 1, including those Assessor’s Parcel receiving a welfare exemption under subdivision (g) of Section 214 of the California Revenue and Taxation Code.

B. ASSIGNMENT TO LAND USE CATEGORIES
For each Fiscal Year, commencing with Fiscal Year 2024-2025, all Taxable Property within CFD No. 114M 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. 258
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C-4
C. MAXIMUM SPECIAL TAX RATE

1. Developed Property
The Fiscal Year 2024-2025 Maximum Special Tax for each Assessor’s Parcel classified as Developed Property shall be equal to the amount shown in the table below:

TABLE 1
Fiscal Year 2024-2025
Maximum Special Tax for Developed Property
Land Use Class FY 2024-2025 Maximum Special Tax
Developed Property $907 per Assessor’s Parcel
On each July 1, commencing July 1, 2025, the Maximum Special Tax for Developed Property shall increase by two percent (2%) per Fiscal Year.

2. Undeveloped Property
The Maximum Special Tax for each Assessor’s Parcel classified as Undeveloped Property shall be equal to $0 per Acre.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2024-2025 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement and the City shall provide for the levy of the Special Tax until the total Special Tax levy equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows:

The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the Maximum Special Tax for such Assessor’s Parcel.

E. EXEMPTIONS
No Special Tax shall be levied on (i) Public Property, (ii) Property Owner Association Property, (iii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (iv) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely for public uses, (v) or any Assessor’s Parcel that has a Welfare Exemption. Should an Assessor’s Parcel, however, no longer be classified as items (i)-(v) above, including Property Owner Association Property, Public Property, or have a Welfare Exemption, its tax-exempt status will, without the necessity of any action by the Council, terminate.

The exempt status of any property will be determined by the CFD Administrator and such determination shall be final.
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C-5
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 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 property taxes; provided, however, that CFD No. 114M may directly bill the Special Tax, and/or may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of CFD No. 114M.

G. TERM OF SPECIAL TAX
The Special Tax shall be levied in perpetuity as necessary to meet the Special Tax Requirement, unless no longer required to pay for the authorized services as determined at the discretion of the Council.

H. APPEALS
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 appeal must specify the reasons why the appellant claims the Special Tax is in error. 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, reduced, or eliminated 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 thirty (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.

I. PREPAYMENT
No prepayments of the Special Tax are permitted.
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CALENDAR OF EVENTS
FORMATION OF COMMUNITY FACILITIES DISTRICT NO. 114M
Date Description of Event
April 9, 2024
City Council considers adoption of a Resolution
Declaring Intention to Form Community Facilities District No. 114M and calls a public hearing thereon
May 14, 2024
City Council conducts public hearing on the formation of Community Facilities District No. 114M and considers
adoption of a Resolution of Formation
May 14, 2024
City Council considers adoption of a Resolution Calling Election on the annual levy of special taxes on taxable property within Community Facilities District No. 114M; if that resolution is adopted, an election is held
May 14, 2024
Election is conducted; Assuming two-thirds or more of
the votes cast in the election are in favor of the levy of special taxes on parcels of taxable property within
Community Facilities District No. 114M, the City Council will consider adoption of a Resolution Declaring Results of Election
May 14, 2024
City Council considers first reading of an Ordinance
Levying Special Taxes on parcels of taxable property
within Community Facilities District No. 114M
June 11, 2024
City Council gives second reading and adoption of
Ordinance Levying Special Taxes on parcels of taxable
property within Community Facilities District No. 114M
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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-2932 Agenda Date: 4/9/2024
Agenda #: I. Category: Consent Calendar
FROM:

Development Services
SUBJECT:

Approve Change Orders to the Equipment Purchase Agreement (SP-71-IT-23) for Stage RED Theater’s Audio Visual System Update
RECOMMENDATION:

1. Approve and authorize the City Manager to execute Change Order No. 1, 2 and 3 to the Equipment Purchase Agreement (SP-71-IT-23) with Matrix Audio Visual Designs, Inc. in the amount of $131,829.55 for a total contract of $1,067,013.42 for the Stage Red audio visual system upgrades.

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

COUNCIL GOALS:
· Operate in a businesslike manner by improving services through the effective use of technology.
· 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 improving the aesthetics of the community.
· Invest in the City’s infrastructure (streets, sewers, parks, etc.) by creating and promoting community through people, parks and programs.

DISCUSSION:

The City of Fontana has undertaken an expansive and comprehensive revitalization of Downtown Fontana. The specific geographic area to be targeted includes Upland Ave to the North, Orange Avenue to the South, Mango Ave to the East and Juniper Ave to the West. A primary component of this revitalization effort will be the creation of an entertainment district as a draw for consumers to enjoy as they discover the new downtown area. Stage RED is the keystone to the creation this new entertainment district for the city.

Matrix Audio Visual Designs, Inc. was originally awarded a contract January 2023 in the amount of $935,183.87 for a new audio visual system, recording system and lighting to meet the needs and demands for operation of the renovated venue for live music and entertainment.

Change Order No. 1 in the amount of $25,735 adds additional amplifiers and loudspeakers and a City of Fontana Page 1 of 2 Printed on 4/3/2024
powered by Legistar™275
File #: 21-2932 Agenda Date: 4/9/2024
Agenda #: I. Category: Consent Calendar
substitute decoder due to discontinuation of parts in the original scope.

Change Order No. 2 in the amount of $38,469.21 adapts the lighting system to incorporate changes in the architectural design of the theater that occurred after the date of the original agreement and scope.

Change Order No. 3 in the amount of $67,625.34 accommodates additional necessary electrical and cabling modifications and installation.

The recommended change orders are required to equip Stage RED with the most comprehensive and cohesive technological upgrade audio visual system.

FISCAL IMPACT:

The Fiscal Impact associated with the approval of this item is $131,829.55. Which is included in the FY2023/24 budget in Fund 601 - Capital Improvement, project #37300002.

MOTION:

Approve staff recommendation.

City of Fontana Page 2 of 2 Printed on 4/3/2024
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Stage Red AV System Upgrade
PROJECT INFORMATION:

Revision:
7/26/2023
3 Modified: Technology . Service . Solutions®
PREPARED FOR:

Stage Red Theater
8463 Sierra Avenue
Fontana, CA 92335
City of Fontana
Project Number: P001029
Elia Alvarez
Date:
08/28/2023
Project Name:

Project Site Address:

Expires:
8353 Sierra Avenue
Fontana CA 92335
07/27/2023
277
Scope
of Work
PCO 3
This change order pertains to the modifications and updates required for the Stage Red Theater.

Additional amplifiers and Loudspeakers: The changes include the incorporation of a VIP area and the expansion of the balconies, necessitating the installation of extra loudspeakers, amplifiers, and cabling.Please see the heat map below.

Decoder Update: The decoders were upgraded from D4100 to D4200 due to the discontinuation of parts.

Ceiling Mounted Loudspeakers: Four ceiling mounted loudspeakers were installed in the Green Room, Lounge, and Dressing Room.

Encoder: A Brightsign player and associated encoder were added to allow the theater to store and display images and videos in various locations. This feature will be particularly useful for the Gift Shop and other areas. 07/26/2023 - Removed the Bright Sign player as requested by Jennifer Barcenas 278
Router: A router was added to enhance the theater's overall control and network capabilities.
07/26/2023 - Removed the management PC. Per Jnnifer Barcenas CoF will provide the PC.

Display Changes in Bar 102: One 75" display was removed from Bar 102 and replaced with a 43" display. Additionally, Bar 102 will now feature two 43" displays.

Display Changes in Lobby 101: One 43" display, along with its mounting and decoder hardware, was removed from Lobby 101.

LG Display Replacement: All LG displays, except for the 43" displays, were replaced with New Line displays, primarily due to better pricing. 279

PRICING
Stage Red Theater: Venue: New Control Booth (109) Total $1,794.03 * Stage Red Theater: Venue: Stage Left (114) Total $6,282.51 * Stage Red Theater: Venue: Ceiling Total $5,407.44 *
Stage Red Theater: Venue: New Control Booth (109)
$1,074.00
Visionary Solutions DuetE-2
A/V Encoder, 4K UHD over IP cinema quality ultra-low latency visually lossless switch matrix routable, with built-in video wall functionality, Expansion Ethernet Port; POE+; Single Port AES67/Dante
1 $1,074.00 *
$720.03
Ensemble Designs BE83-H
HDMI to 3G / HD / SD SDI Converter with HDCP (Waiver
needed to issue License)
1 $720.03
Stage Red Theater: Venue: Stage Left (114)
$6,116.40
LEA Professional CONNECT 354D
3 4-channel amplifier with 350 watts per channel with DANTE $2,038.80 * $166.11
TP-LINK ER7206
1 Multi-WAN Professional Wired Gigabit VPN Router $166.11 * Stage Red Theater: Venue: Ceiling
$5,407.44
Bose Professional 811435-0110
6 ArenaMatch Utility AMU206 Outdoor Loudspeaker $901.24 Stage Red Theater: Venue: Amp Rack (Stage Left) 114
$3,246.13
Bose Professional 343546-1110
Powermatch PM8500N Configurable Amplifier Network Model 120V NA
1 $3,246.13
$141.61
Bose Professional 772238-0110
1 PowerMatch Amplink 24-Channel Card $141.61 *
$372.40
Liberty Wire & Cable 12-2C-BLK-500
Black Commercial Grade General Purpose 12 AWG 2 Conductor Cable
1000 $0.37
$613.20
Liberty Wire & Cable 12-4C-BLK-500
Black Commercial Grade General Purpose 12 AWG 4 Conductor Cable
1000 $0.61
280
Stage Red Theater: Venue: Amp Rack (Stage Left) 114 Total $4,373.34 * Stage Red Theater: Lobby (101) Total ($1,595.59) *
Stage Red Theater: Bar 1 (102) Total ($1,041.80) *
Stage Red Theater: Lobby (101)
($167.59)
Chief MTM1U
-1 Medium fusion micro-adjustable tilt wall display mount ($167.59) ($714.00)
Visionary Solutions D4100
A/V Decoder, 4K UHD over IP cinema quality ultra-low latency visually lossless switch matrix routable, with built-in video wall functionality; POE
-1 ($714.00) *
($714.00)
LG Electronics 43UR640S9UD
43" UR640S Series UHD Signage TV with Slim Depth, LG
SuperSign CMS, and Embedded Content & Group Management
The UR640S Series supports Crestron Connected for high
compatibility with professional AV controls to achieve seamless integration and automated control**, boosting business
management
-1 ($714.00) *
Stage Red Theater: Bar 1 (102)
($262.67)
Chief LTM1U
-1 Large fusion micro-adjustable tilt wall mount ($262.67) $167.59
Chief MTM1U
1 Medium fusion micro-adjustable tilt wall display mount $167.59 ($2,140.80)
LG Electronics 75UR640S9UD
75" 3840 x 2160 UHD Commercial Lite LED backlit LCD TV, Black (Ashed Blue)
The UR640S Series supports Crestron Connected for high
compatibility with professional AV controls to achieve seamless integration and automated control**, boosting business
management efficiency.
-1 ($2,140.80) *
($1,428.00)
Visionary Solutions D4100
A/V Decoder, 4K UHD over IP cinema quality ultra-low latency visually lossless switch matrix routable, with built-in video wall functionality; POE
-2 ($714.00) *
$1,908.08
Visionary Solutions D4200
A/V Decoder, 4K UHD over IP cinema quality ultra-low latency visually lossless switch matrix routable, with built-in video wall functionality; Expansion Ethernet Port; POE+; Upgradeable to AES67/Dante
2 $954.04 *
$714.00
LG Electronics 43UR640S9UD
43" UR640S Series UHD Signage TV with Slim Depth, LG
SuperSign CMS, and Embedded Content & Group Management
The UR640S Series supports Crestron Connected for high
compatibility with professional AV controls to achieve seamless integration and automated control**, boosting business
management
1 $714.00 *
Stage Red Theater: Retail (100)
281
Stage Red Theater: Retail (100) Total $25.98 *
1 infiNET EX Network and ER Wireless Gateway $297.60
Crestron Electronics CEN-GWEXER
($2,140.80)
LG Electronics 75UR640S9UD
75" 3840 x 2160 UHD Commercial Lite LED backlit LCD TV, Black (Ashed Blue)
The UR640S Series supports Crestron Connected for high
compatibility with professional AV controls to achieve seamless integration and automated control**, boosting business
management efficiency.
-1 ($2,140.80) *
($714.00)
Visionary Solutions D4100
A/V Decoder, 4K UHD over IP cinema quality ultra-low latency visually lossless switch matrix routable, with built-in video wall functionality; POE
-1 ($714.00) *
$954.04
Visionary Solutions D4200
A/V Decoder, 4K UHD over IP cinema quality ultra-low latency visually lossless switch matrix routable, with built-in video wall functionality; Expansion Ethernet Port; POE+; Upgradeable to AES67/Dante
1 $954.04 *
$511.94
Chief TS525TU
1 Large THINSTALL Dual Swing Arm Wall Mount $511.94
$1,414.80
NewLine TT-7523NT-PLUS
1 75" NT+ Series Commercial Display $1,414.80
Stage Red Theater: Green Room (124)
($262.67)
Chief LTM1U
-1 Large fusion micro-adjustable tilt wall mount ($262.67) ($167.59)
Chief MTM1U
-1 Medium fusion micro-adjustable tilt wall display mount ($167.59) ($1,298.40)
LG Electronics 65UR640S9UD
65" 3840 x 2160 UHD Commercial Lite LED backlit LCD TV, Black (Ashed Blue)
The UR640S Series supports Crestron Connected for high
compatibility with professional AV controls to achieve seamless integration and automated control**, boosting business
management efficiency.
-1 ($1,298.40) *
($1,428.00)
Visionary Solutions D4100
A/V Decoder, 4K UHD over IP cinema quality ultra-low latency visually lossless switch matrix routable, with built-in video wall functionality; POE
-2 ($714.00) *
$954.04
Visionary Solutions D4200
A/V Decoder, 4K UHD over IP cinema quality ultra-low latency visually lossless switch matrix routable, with built-in video wall functionality; Expansion Ethernet Port; POE+; Upgradeable to AES67/Dante
1 $954.04 *
$554.58
Chief TS525TU
1 Large THINSTALL Dual Swing Arm Wall Mount $554.58
$297.60
Crestron Electronics CEN-GWEXER
1 infiNET EX Network and ER Wireless Gateway $297.60 *
$561.60
Crestron Electronics HR-310
1 Handheld Remote, US & Canada $561.60 *
282
Stage Red Theater: Green Room (124) Total ($700.04) *
Stage Red Theater: Lounge (121) Total $3,079.42 *
Stage Red Theater: Dressing Room (120) Total $156.00 *
$264.00
Crestron Electronics HR-310
1 Handheld Remote, US & Canada $264.00
($1,188.00)
Crestron Electronics TSW-770-B-S
-1 7 in. Wall Mount Touch Screen, Black Smooth ($1,188.00) * ($714.00)
LG Electronics 43UR640S9UD
43" UR640S Series UHD Signage TV with Slim Depth, LG
SuperSign CMS, and Embedded Content & Group Management
The UR640S Series supports Crestron Connected for high
compatibility with professional AV controls to achieve seamless integration and automated control**, boosting business
management
-1 ($714.00) *
$1,414.80
NewLine TT-7523NT-PLUS
1 75" NT+ Series Commercial Display $1,414.80
$312.00
Sonance PS-C63RT WHITE
2 6.5'' Professional Series In-Ceiling Speaker - White [Pair] $156.00 Stage Red Theater: Lounge (121)
$954.04
Visionary Solutions D4200
A/V Decoder, 4K UHD over IP cinema quality ultra-low latency visually lossless switch matrix routable, with built-in video wall functionality; Expansion Ethernet Port; POE+; Upgradeable to AES67/Dante
1 $954.04 *
$554.58
Chief TS525TU
1 Large THINSTALL Dual Swing Arm Wall Mount $554.58
$1,414.80
NewLine TT-7523NT-PLUS
1 75" NT+ Series Commercial Display $1,414.80
$156.00
Sonance PS-C63RT WHITE
1 6.5'' Professional Series In-Ceiling Speaker - White [Pair] $156.00 Stage Red Theater: Dressing Room (120)
$156.00
Sonance PS-C63RT WHITE
1 6.5'' Professional Series In-Ceiling Speaker - White [Pair] $156.00 Stage Red Theater: Meet & Greet (207)
($4,281.60)
LG Electronics 75UR640S9UD
75" 3840 x 2160 UHD Commercial Lite LED backlit LCD TV, Black (Ashed Blue)
The UR640S Series supports Crestron Connected for high
compatibility with professional AV controls to achieve seamless integration and automated control**, boosting business
management efficiency.
-2 ($2,140.80) *
($1,428.00)
Visionary Solutions D4100
A/V Decoder, 4K UHD over IP cinema quality ultra-low latency visually lossless switch matrix routable, with built-in video wall functionality; POE
-2 ($714.00) *
283
Stage Red Theater: Meet & Greet (207) Total ($923.92) * $1,908.08
Visionary Solutions D4200
A/V Decoder, 4K UHD over IP cinema quality ultra-low latency visually lossless switch matrix routable, with built-in video wall functionality; Expansion Ethernet Port; POE+; Upgradeable to AES67/Dante
2 $954.04 *
$48.00
Luxul XPE-2500
1 Single Port Gigabit PoE/PoE+ Injector (up to 30W) $48.00 $2,829.60
NewLine TT-7523NT-PLUS
2 75" NT+ Series Commercial Display $1,414.80
* Subtotals do not include Tax, Shipping and Misc. charges. Refer to project summary 284
Date
Date
Matrix Audio Visual Designs, Inc.

Client:

Contractor:

CSLB #: 765990
City of Fontana
$16,857.37
Project Summary
$505.73
$1,345.65
$14,594.75
Equipment:

Miscellaneous:

Sales Tax:

Labor: Change order
Labor:

Grand Total: $25,735.00
Sales tax is calculated based on the current sales tax and it is subject to change Payment Schedule Amount
CO Payment - Due upon approval $25,735.00
-$7,528.50
285
Scope
of Work
PCO 4
This PCO includes changes in the lighting system based on the new architectural design of the theater.

1. We removed some fixtures and added others including their associated interconnect cables.

2. After reviewing the existing equipment rack and the new AV Control Booth we have added three new racks. One 44RU rack and two 18RU racks. This is due to the limitation of the space.

3. We also added a new expansion controller (CEN-CI3) with associated relay cards. We changed the design after taking the existing stage rack and see that the rack power is controlled via relays. 286

PRICING
Stage Red Theater: Venue
($2,020.00)
1694A 0101000
75 Ohm SDI Coax, RG-6, 18 AWG, Solid BC, Foil + 95% TC Braid, PVC Jkt, CMR - 1000 Feet
-2000 ($1.01)
($216.00)
1694ABHD1
-50 CONN, 1PC, RG6 BNC HD - Chrome, Bright ($4.32)
$682.12
DMX-AN2
Multi-purpose Art-Net/sACN node that converts 1 Ethernet cable to 2 DMX universes.
4 $170.53
$483.00
DMX 5 Pin 100ft
100 Ft. DMX 5 pin Datasure DMX-2PR (NC5FXX-B -
NC5MXX-B) Black / Gold
5 $96.60
$456.75
DMX 5 Pin 10ft
10 Ft. DMX 5 pin Datasure DMX-2PR (NC5FXX-B -
NC5MXX-B) Black / Gold
15 $30.45
$412.10
DMX 5 Pin 25ft
25 Ft. DMX 5 pin Datasure DMX-2PR (NC5FXX-B -
NC5MXX-B) Black / Gold
10 $41.21
$299.25
DMX 5 Pin 50ft
50 Ft. DMX 5 pin Datasure DMX-2PR (NC5FXX-B -
NC5MXX-B) Black / Gold
5 $59.85
$1,200.00
DMX 5 Pin 5ft
5 Ft. DMX 5 pin Datasure DMX-2PR (NC5FXX-B -
NC5MXX-B) Black / Gold
40 $30.00
$9,865.80
R20
18 120V Dual 20A Relay Module $548.10
$1,890.00
PowerCON Ext. Cable 10ft
10 Ft. SJO 12/3 PowerCON Male - PowerCON Female Power
Cable
45 $42.00
$677.20
PowerCON Ext. Cable 15ft
15 Ft. SJO 12/3 PowerCON Male - PowerCON Female Power
Cable
10 $67.72
$693.00
PowerCON Ext. Cable 20ft
20Ft. SJO 12/3 PowerCON Male - PowerCON Female Power
Cable
10 $69.30
$972.00
PowerCON Ext. Cable 5ft
5 Ft. SJO 12/3 PowerCON Male - PowerCON Female Power
Cable
30 $32.40
287
Stage Red Theater: Venue Total $21,778.22 *
Stage Red Theater: Venue: New Control Booth (109) Total $8,619.16 * $493.50
True1 Male to Female Power Cable 10ft
10 10 Ft. SJO 12/3 True1 Male - True1 Female Power Cable $49.35 $315.00
True1 Male to Female Power Cable 15ft
5 15 Ft. SJO 12/3 True1 Male - True1 Female Power Cable $63.00 $1,102.50
True1 Male to Female Power Cable 5ft
30 5 Ft. SJO 12/3 True1 Male - True1 Female Power Cable $36.75 Stage Red Theater: Venue: New Control Booth (109)
$889.20
SDI - BNC Cable Belden 4855R Mini RG59 (25ft, Black)
12G 4K HD SDI BNC - BNC Cable Belden 4855R Mini RG59
(25ft, Black)
13 $68.40
$96.03
SDI - BNC Cable Belden 4855R Mini RG59 (3ft, Black)
12G 4K HD SDI BNC - BNC Cable Belden 4855R Mini RG59 (3ft, Black)
3 $32.01
$822.25
SDI - BNC Cable Belden 4855R Mini RG59 (6ft, Black)
12G 4K HD SDI BNC - BNC Cable Belden 4855R Mini RG59 (6ft, Black)
23 $35.75
$143.40
4794R 0102500
4K UHD Coax for 12G-SDI, 75 Ohm, Series 7, 16 AWG Solid SC, Tri-Shield, PVC Jkt, CMR - Black
60 $2.39
$451.20
4794RBUHD1 B50
2 12 GHz Series 7 BNC Connector - 50 PAK $225.60
$110.01

CONVNTRM/YA/RSH
1 Teranex Mini converter - rack shelf $110.01
$1,248.00
ERK-2128LRD
2 21 RU ERK Series Rack, 28 Inches Deep without Rear Door $624.00 $138.01
PDT-1015C-NS
1 Power Strip, Low Profile Vertical Power Strip, 10 Outlet, 15A $138.01 $648.00
TD2
4 2space Textured Drawer $162.00
$2,040.00
UPX-RLNK-2000R-8
NEXSYS™ 2000VA, 20 Amp UPS Backup Power System with
RackLink™, Individual Outlet Control
1 $2,040.00
$1,339.15
WRK-44-32
1 44 RU WRK Series 24-1/4 Inch Wide Rack, 32 Inches Deep $1,339.15 $155.99
MZ-V8P2T0B/AM
1 980 PRO PCIe 4.0 NVMe SSD 2TB $155.99
$609.62
WB-800-IPVM-12
800 Series IP Power Conditioner - 12 Individually Controlled & Metered Outlets
1 $609.62
Stage Red Theater: Venue: Stage Left (114)
$2,078.34

AH-ME-U
10 Port PoE Monitor Hub, onboard network port, Optional I/O compatible with Dante, Waves SG, MADI, ES, Aviom A-Net, Plug N Play with A&H Qu, SQ, GLD & dLive Consoles
1 $2,078.34
$238.80
SOC-4
Modular Analog Output Card For Tesira Server And Server-Io Device
1 $238.80
$1,386.00
C3RY-16
3 3-Series Control Card – 16 Relay Ports $462.00
288
Stage Red Theater: Venue: Stage Left (114) Total $5,249.94 * $1,188.00
CEN-CI3-3
1 3-Series Control Processor Card Interface 3 Slot $1,188.00 $358.80
TD3
2 3space Textured Drawer $179.40
* Subtotals do not include Tax, Shipping and Misc. charges. Refer to project summary 289
Date
City of Fontana
Date
Client: Contractor: Matrix Audio Visual Designs, Inc.

CSLB #: 765990
City of Fontana
Name:

Hovik Mirzakhanian
Name:
$31,237.90
Project Summary
$936.86
$2,493.55
$750.00
$9,938.40
Equipment:

Miscellaneous: Sales
Tax:

Shipping:

Labor: Change order
Labor:

Sales tax is calculated based on the current sales tax and it is subject to change Grand Total: $38,469.21
Payment Schedule Amount
Inital Deposit $17,311.14
Progress Payment - 50% progress $9,617.30
Progress Payment - 80% progress $9,617.30
Final Payment $1,923.47
-$6,887.50
290
Stage Red AV System Upgrade
PROJECT INFORMATION:

Revision:
3/25/2024
14 Modified: Technology . Service . Solutions®
PREPARED FOR:

City of Fontana
Project Name: Elia Alvarez
8353 Sierra Avenue
Fontana CA 92335
Project Site Address:

Stage Red Theater
8463 Sierra Avenue
Fontana, CA 92335
Project Number: P001029 PCO 6
Date: 03/25/2024
Expires: 08/28/2023
291
Scope
of Work
Change Order #6 addresses the following scope changes and requirements:

1. Inclusion of (16) 20A circuits to fulfill all electrical needs for the AV and theatrical lighting scope.

2. Provision of (60) rods and (120) j-hooks for ceiling cabling installation.

3. Installation of (30) stub-up conduits and boxes for TVs, communication devices, and cameras.

4. Rental of boom and scissor lifts to facilitate the aforementioned tasks. Note: Billing will be adjusted based on the actual rental duration.

5. Includes the replacement rack for the stage and cabling. 292

PRICING
Stage Red Theater: Venue Total $47,054.08 *
Stage Red Theater: Venue: New Control Booth (109) Total $4,636.60 * Stage Red Theater: Venue
$19,500.00

MAT-MISC
The project includes intercom wall plates, touch screens and broadcast cameras that require back boxes and conduits. This is line item is includes labor and parts as a lump sum. Total: 30 1 $19,500.00
$19,200.00
MAT-MISC.ELECTRICAL
This line item addresses all electrical requirements for Stage Red electrical pertaining to audio visual only.
8 X 20A Circuits for the stage rack
4 X 20 A Circuits for the AV booth
1 X 20A Retail TV
1 X 20A Bar TVs
1 X 20A Meet and Greet TVs
1 X 20A Green Room and Lounge TVs
16 in total
1 $19,200.00
$1,054.08
MAT-MISC1
Conduits and raceways: Per our job walk on Friday 03/27 we discovered that to save time and project cost we should run the cables in free air and use the existing conduits. The only added cost for J-hooks, rods and labor.
1 $1,054.08
$4,500.00
MAT-RENTAL - 1
Boom lift rental: Renting a single boom lift to aid in installation for a duration of 4 weeks. Note: Should the rental period be shorter, Matrix AV will adjust billing accordingly.
1 $4,500.00
$2,800.00
MAT-RENTAL - 2
Scissor lift rental: Renting a single scissor lift to aid in installation for a duration of 4 weeks. Note: Should the rental period be shorter, Matrix AV will adjust billing accordingly. 1 $2,800.00
Stage Red Theater: Venue: New Control Booth (109)
$4,636.60
4794R 0102500
4K UHD Coax for 12G-SDI, 75 Ohm, Series 7, 16 AWG Solid SC, Tri-Shield, PVC Jkt, CMR - Black
1940 $2.39
Stage Red Theater: Venue: Stage Left (114)
293
Stage Red Theater: Venue: Stage Left (114) Total $1,933.88 * $523.22
SPN-44-267
1 44 RU Side Panels for 26-27 Inch Deep MRK or WRK Racks $523.22 $1,410.66
WRK-44-27
1 44 RU WRK Series 24-1/4 Inch Wide Rack, 27 Inches Deep $1,410.66 * Subtotals do not include Tax, Shipping and Misc. charges. Refer to project summary 294
Date
City of Fontana
Date
Client: Contractor: Matrix Audio Visual Designs, Inc.

CSLB #: 765990
City of Fontana
Name:

Hovik Mirzakhanian
Name:

Equipment: $53,620.68
Project Summary
Miscellaneous: $447.62
Sales Tax: $1,191.04
Labor: $12,366.00
Sales tax is calculated based on the current sales tax and it is subject to change Grand Total: $67,625.34
Payment Schedule Amount
CO Payment - Due upon approval $67,625.34
295
DocuSign Envelope ID: EF397029- 9BO3- 4FF5- BOOE- AE5C53988B7C

CITY OF FONTANA

EQUIPMENT PURCHASE AGREEMENT
SP- 71- IT-23
This Equipment Purchase Agreement (" Agreement") is entered into this 9th day of February, 2023, by and between the City of Fontana, a municipal corporation organized and operating under the laws of the State of California with its principal place of business at a municipal corporation organized under the laws of the State of California with its principal place of business at 8353 Sierra Avenue, Fontana, California 92335 (" City"), and Matrix Audio Visual Design, Inc., a Corporation with its principal place of business at 2525 W. Burbank Blvd., Burbank, California 91505 (" Contractor"). City and Contractor are sometimes individually referred to as " Party" and collectively as " Parties" in this Agreement.

Section 1. DEFINITIONS.

A. " Equipment" means all machinery, equipment, items, parts, materials, labor or other services, including design, engineering and installation services, provided by Contractor as specified in Exhibit " A," attached hereto and incorporated herein by reference.

B. " Delivery Date( s)" means that date or dates upon which the Equipment is to be delivered to City, ready for approval, testing and/ or use as specified in Exhibit ` B." Section 2. MATERIALS AND WORKMANSHIP.

When Exhibit " A" specifies machinery, equipment or material by manufacturer, model or trade name, no substitution will be made without City' s written approval. Machinery, equipment or material installed in the Equipment without the approval required by this Section 2 will be deemed to be defective material for purposes of Section 4. Where machinery, equipment or materials are referred to in Exhibit " A" as equal to any particular standard, City will decide the question of equality. When requested by City, Contractor will furnish City with the name of the manufacturer, the performance capabilities and other pertinent information necessary to properly determine the quality and suitability of any machines, equipment and material to be incorporated in the Equipment. Material samples will be submitted at City' s request.

The site of any installation work shall be kept clean and free of hazards at all times during performance of such installation services. After installation is completed at the site, as applicable, Contractor shall clean the surrounding area to the condition prior to delivery and installation.

Section 3. INSPECTIONS AND TESTS.

City shall have the right to inspect and/ or test the Equipment prior to acceptance. If upon inspection or testing the Equipment or any portion thereof are found to be nonconforming, unsatisfactory, defective, of inferior quality or workmanship, or fail to meet any requirements or specifications contained in Exhibit " A," then without prejudice to any other rights or remedies, City may reject the Equipment or exercise any of its rights under Section 4. C. The inspection, failure to make inspection, acceptance of goods, or payment for goods shall not impair City' s right to reject nonconforming goods, irrespective of City' s failure to notify Contractor of a