Agenda packet — Fontana City Council, April 23, 2024 (part 2 of 4)

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. 137

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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 138

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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.
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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 140

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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 141

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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:
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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 third- Party legal action against a party hereto and payable under Indemnification and Insurance Requirements, set forth in Section IV and V above.
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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
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“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

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EXHIBIT “A”

IEUA LIFT STATION

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EXHIBIT “B”

PERMANENT WASTEWATER SYSTEM

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EXHIBIT “C”

REGIONAL CONTRACT

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EXHIBIT “D”
ORDINANCE No. 111

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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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Table of Contents
i

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 .................................. 23 203
Table of Contents
(continued)

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 ......................................................................................... 29 204

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 phr ase 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 205

ORDINANCE NO. 111 Page 2 of 30 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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ORDINANCE NO. 111 Page 3 of 30 “Capital Capacity Reimburse ment 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 S ewage 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 faciliti es 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 w ith 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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ORDINANCE NO. 111 Page 4 of 30 “Dispose” or “Disposal” means any process or method for the elimination or beneficial use of Sewage and any Effluent or sol id 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 qual ity standards for the discharge of sewage effluent and industrial waste effluent within the Chino Basin.
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ORDINANCE NO. 111 Page 5 of 30 “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 w hich is utilized for the transmission of the sewage of two or more SCA s 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 IE UA. 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. 209

ORDINANCE NO. 111 Page 6 of 30 “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 SCA s 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. 210

ORDINANCE NO. 111 Page 7 of 30 “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 r ight 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, includin g 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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ORDINANCE NO. 111 Page 8 of 30 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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ORDINANCE NO. 111 Page 9 of 30 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 developmen t 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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ORDINANCE NO. 111 Page 10 of 30 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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ORDINANCE NO. 111 Page 11 of 30 b. Notwithstanding the preceding provisions, the amount which a SCA is required to have deposited in or cr edited 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 Ca pacity 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 t he 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 215

ORDINANCE NO. 111 Page 12 of 30 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 o f 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 Capaci ty 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 qua rter 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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ORDINANCE NO. 111 Page 13 of 30 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 Ca pacity Reimbursement Account balances of all SCAs by the percentage thus determined. 217

ORDINANCE NO. 111 Page 14 of 30 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 Subcomm ittee. The review by the BAR Subcommittee may include such reviews a s, 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;

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ORDINANCE NO. 111 Page 15 of 30 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 servi ce 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 T en-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 SCA s.

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 219

ORDINANCE NO. 111 Page 16 of 30 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, u pon 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 commit tees 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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ORDINANCE NO. 111 Page 17 of 30 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 th is 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 applic able. 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 w ould have received during the fiscal year if such property were within the IEUA S ervice Area. Such charge shall be payable by the 221

ORDINANCE NO. 111 Page 18 of 30 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 th is 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 part y may also be required to submit a resolution confirming the authorization of annexation from the Local Agency Formation Commission for San Bernardi no 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.

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ORDINANCE NO. 111 Page 19 of 30 SECTION 14 - DETERMINATION OF SEWAGE DELIVERIES: COSTS OF

MEASURING EQUIPMENT
IEUA shall de termine 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 e nsure 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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ORDINANCE NO. 111 Page 20 of 30 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 fr om 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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ORDINANCE NO. 111 Page 21 of 30 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 amou nt 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 225

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 Regiona l 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; 226

ORDINANCE NO. 111 Page 23 of 30 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 bil ls 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. 227

ORDINANCE NO. 111 Page 24 of 30 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.
228

ORDINANCE NO. 111 Page 25 of 30 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. 229

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, a dvice, 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 member s 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 member s 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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ORDINANCE NO. 111 Page 27 of 30 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 wi ll 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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ORDINANCE NO. 111 Page 28 of 30 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

235

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;
236
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 237
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;

239

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 WESTERLY, AND NORTHWESTERLY ALONG SAID CURVE, TO THE RIGHT, 240
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.

ND OF LEGAL DESCRIPTION)
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Wastewater Connection Location

242

Project Location
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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-2935 Agenda Date: 4/23/2024
Agenda #: K. Category: Consent Calendar
FROM:

Community Services
SUBJECT:

Fontana Community Senior Center Beauty Salon Lease Agreement RECOMMENDATION:

1. To authorize the Community Services Department to enter into a lease agreement with Boss Hair Studios to offer hair styling, nail and retail services at the Fontana Community Senior Center.

2. Authorize the City Manager or his designee to execute any documents necessary to effectuate said agreement.

COUNCIL GOALS:
· Operate in a businesslike manner by creating a memorable customer experience with every interaction.
· Increase citizen involvement by promoting healthy lifestyle opportunities to residents of all ages.
· To become more service oriented.

DISCUSSION:

As part of the 43,855 square foot Fontana Community Senior Center, a beauty salon is included to provide comprehensive services to center guests. Specifically, this space will provide an opportunity for patrons of the center to purchase hair styling, manicures, pedicures, and purchase products for hair and nails in a senior citizen environment.

The identified beauty salon space is just over 200 square feet, featuring two salon stations, a wash bowl, a manicure station and furnishings.

As part of a competitive application process, salon vendors were solicited to lease the space and provide quality services, offering a range hair and nail services. Two applications were received.

Boss Hair Studios was selected as the vendor for the Beauty Salon based on their application and the demonstration of their ability to supply the services and create an atmosphere that compliments the programming offered within the facility (operated during the Fontana Community Senior Center operating hours and during City sponsored special events) and provide a relaxed setting for customers to receive hair and nail services. Boss Hair Studios proposal for services in the space includes offering haircuts and styling, hair coloring, manicures, pedicures, hair washing and blow drying, and the ability to buy hair and nail product for home use.

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File #: 21-2935 Agenda Date: 4/23/2024
Agenda #: K. Category: Consent Calendar
The proposed Lease Agreement will have an initial term of one year and will automatically renew on an annual basis concurrent with the fiscal year cycle. The vendor will be required to make identified lease payments in an amount equal to the cost of the utilities for the space on a monthly basis. An annual adjustment has also been built into account for cost of utility increases, as well as an option to adjust the lease amount if the actual cost of utilities is higher than the original estimate. The cost of maintenance and custodial services will also be the responsibility of the vendor.

Boss Hair Studios is planning to operate the Beauty Salon from 9:00 a.m. to 4:30 p.m. Monday through Friday.

By entering into this Lease Agreement, the City will be able to provide quality services and an enhanced center experience to the community through an experienced and professional vendor. The attached lease agreement has been reviewed by the City Attorney.

FISCAL IMPACT:

Lease revenues in an amount equal to the cost of utilities to operate the beauty salon space or approximately $1,800 per year is expected on an annual fiscal year basis and will be recorded in account 10124300-5530.

MOTION:

Approve staff recommendation.

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1 FONTANA COMMUNITY SENIOR CENTER

BEAUTY SALON LEASE AGREEMENT
CS-24-85-SP

This Fontana Community Senior Center Beauty Salon Lease Agreement (“Lease” or “Agreement”) is dated for reference purposes as of _____ day of _______, 2024 by and between the Cit y of Fontana, a municipal corporation a nd general law city (hereinafter referred to as “City” or “Landlord”) and Latanya Anthony, a sole proprietor, d/b/a Boss Studios Hair , (hereinafter referred to as “Tenant”). The Landlord and Tenant are sometimes referred to individually herein as “Party” and collectively as “Parties.”

RECITALS

A. Landlord is the owner of that certain real property generally located at 16710 Ceres Avenue in the City of Fontana , County of San Bernardino, State of California, which is commonly known as the Fontana Community Senior Center.

B. Landlord desires to incorporate a beauty salon and concessions establishment at the Fontana Community Senior Center , more specifically in the designated area refer red to as the “Beauty Salon.”

C. Tenant is a private establishment in the business of providing beauty salon and concession services.

D. Tenant desires to establish a hair, nail and concessions facility at the Fontana Community Senior Center’s Beauty Salon.

E. Tenant agrees to exclusively operate and maintain a hair, nail and concessions establishment at the Fontana Community Senior Cen ter’s Beauty Salon as more specifically described herein.

For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto agree as follows:

TERMS

1. INCORPORATION OF RECITALS . The Parties hereby affir m the facts set forth in the Recitals above. Said Recitals are incorporated herein and made an operative part of this Agreement.

2. LEASED PREMISES. Subject to the following terms and conditions, Landlord leases to Tenant and Tenant leases from Landlord that portion of the Fontana Community Senior Center, located at 16710 Ceres Avenue in the City of Fontana, State of California, commonly referred to as the “Beauty Salon ”. The Beauty Salon is more specifically described and depicted in the attached Exhibit “A”, and contains approximately two hundred and nine (209) square feet of net leasable floor area. For purposes of this Lease, the approximate square foot age noted herein shall be used as the actual total square footage leased whether or not such square footage actually exists. The Beauty Salon 246

2 shall include the Improvements, items of furnishing and equipment specified in the attached Exhibit “B”.

2.1 Improvements. For the purposes of this Agreement, the term “Improvements” shall include any additions, alter ations, attachments, fixtures, improvements, installations or property affixed to the Beauty Salon so that they cannot be removed without material damage to the Beauty Salon . Improvements shall be considered a permanent part of the Beauty Salon , regardles s of whether made by Landlord or Tenant. Improvements shall not include furniture, or trade fixtures which can be removed without material damage to the Beauty Salon.

2.1.1 Tenant shall make no Improvements to the Beauty Salon with out obtaining prior written consent from the Landlord.

2.1.2 Upon the expiration or earlier termination of this Agreement, Improvements made by Tenant become the property of Landlord and shall remain on the Beauty Salon premises. Landlord shall have the option, however, on the expiration or earlier termination of this Le ase, to require that Tenant, at Tenant’s sole cost and expense, remove any such Improvements made by Tenant.

3. EFFECTIVE DATE. The term of this Agreement shall commence on June 1, 2024

4. TERM.

4.1 Initial Term . The ini tial term of this Agr eement (“Initial Term”) shall commence on the Effective Date and shall terminate on June 30, 2027 unless earlier terminated as provided herein.

4.2 Extended Term. Provided that Tenant is not then in default under this Agreement, Parties shall have the option to extend the Initial Term of this Agreement for two (2) consecutive one (1) year periods, commencing on the expiration of the Initial Term and ending on June 30th of the following calendar year ( “Extended Term(s)”).

This Agreement shall automatically be extended for each successive Extended Term unless a Party notifies the other Party in writing of said Party’s intention not to extend this Agreement at least sixty (60) days prior to the expiratio n of the Initial Term or the then applicable Extended Term. The terms and conditions of this Agreement shall apply equally to the Extended Term, if any.

4.3 Delay in Delivery of Possession. If Landlord cannot deliver possession of the Beauty Salon to Tenant for any reason on or before the Effective Date, Landlord shall not be liable to Tenant for any loss or damages therefrom.

4.4 Damage, Destruction and Condemnation. In the event of any damage or destruction to the Beauty Salon or the Fontana Community Senior Ce nter or in the event any portion or all of the Beauty Salon or the Fontana Community Senior Center is taken 247

3 under the power of eminent domain or sold under the threat of such power by any governmental or quasi -governmental authority, then either party may terminate this Lease upon written notice to the other party, such termination to be effective upon the date of such damage or upon the date the condemning authority takes title, as the case may be.

5. HOLDOVER. Tenant shall not hold over after the expiratio n or earlier termination of the T erm hereof without the express prior written consent of Landlord.

Acceptance of rent is not Landlord's consent to holdover. Without Landlord's express consent Tenant shall become a tenant at sufferance only at a rental ra te equal to 150% of the rent in effect upon the date of such expiration. Acceptance by Landlord of rent after such expiration or earlier termination shall not constitute a holdover hereund er or resu lt in a renewal. This provision is in addition to and wi ll not affect Landlord's right of re - entry or any rights of Landlord hereunder or as otherwise provided by law. If Tenant fails to surrender the premises upon the expiration of this Lease, Tenant sh all indemnify, protect, defend and hold Landlord harmless from all loss or liability, including without limitation, any claims made by any succeeding tenant founded on or resulting from such failure to surrender. Such indemnity shall survive the expiration of this Lease.

6. RENT.

6.1 Base Rent. Upon the Effective Date, the monthly rent (“Rent”) shall be One Hundred Fifty Dollars ($ 150.00) per month and shall be adjusted annuall y as provided in Section 6.2 of this Agreement. Rent shall be payable to the City of Fontana, Accounts Receivable, or such other address provided by Landlord and shall be paid in advance on the first day of each and every calendar month and without demand , deduction, offset, or abatement. Rent for any partial calendar month shall be pror ated appropriately.

6.2 Annual Adjustment. Rent shall be adjusted annually throughout the Initial Term and any Extended Term, on the anniversary of the first day of the fir st full calendar month following the Effective Date by an amount equal to (i) the inc rease in the Consumer Price Index -All Urban Consumers (“CPI”) for the Riverside-San Bernardino- Ontario (1982-84=100) during the prior twelve month period, or (ii) thre e percent (3%), whichever is greater.

6.3 Late Payment Charges. Tenant acknowledges that in the event Tenant fails to pay Rent within ten (10) business days of when due, such failure will cause Landlord to incur costs not contemplated in this Agreement, the e xact amount of which will be extremely difficult to ascertain , and that the service charg e set forth herein below represents a fair estimate of the costs and expenses which Landlord would incur by reason of Tenant’s late payment . Such costs include, but a re not limited to, processing, personnel and accounting costs. Accordingly, if any such payment is not received by Landlord when due, or should a check for Tenant’s Rent be returned, Tenant shall pay Landlord a late payment charge, the greater of (a) Twenty-Five Dollars ($25) or (b) a sum equal to ten percent (10%) of the overdue payment as w ell as interest on the outstanding amount due that shall accrue at the rate of ten percent (10%) per annum. In no event 248

4 shall the late charge exceed the maximum allow able by law. Tenant agrees that this late charge represents a fair and reasonable estima te of the costs Landlord will incur by reason of Tenant’s late payment. Landlord’s acceptance of such late charge shall in no event constitute a waiver by Landlord of Tenant’s default with respect to the overdue payment, nor prevent Landlord from exercisin g any of the other rights or remedies granted to Landlord under this Agreement, at law, or in equity.

6.4 First Month’s Rent. Notwithstanding the provisions of Section 6. 1 to the contrary, Tenant shall pay to Landlord, concurrently with Tenant's execution and delivery of this Lease to Landlord, an amount equal to one (1) month's Rent which shall be applied toward Rent due for the first month of the term of this Lease.

7. USE OF PREMISES

7.1 During the term of this Agreement (including the Initial Term and any Extended Term), the Beauty Salon shall be used exclusively for the purpose of providing beauty salon and concession services (“Services”) and for uses normally incident to that purpose. Services are more specifically described in the attached Exhibit “C”. Tenant shall not use or permit the Beauty Salon to be used for any other purpose, without the prior written consent of Landlord.

7.2 During the term of this Agreement, Tenant shall operate the Beauty Salon in a diligent and business like manner.

7.3 Tenant shall comply with all applicable laws, codes, rules and regulations relating to Tenant’s operation and use of the Beauty Salon, including without limitation:
(a) any and all zoning and development permits, plan reviews , and approvals issued by applicable governmental agencies. (b) any and all health and safety requirements , permits or approvals necessary for operation, including but not limited to ensuring (i) that the design, planning and installation of all improvement s, fixtures and equipments meet with required codes and regulations ; (ii) that all applications and notifications are filed with the appropriate government agency ; and (iii) that any and all placards, licenses, and permits are secured and displayed as appropriate prior to operation.

7.4 Tenant acknowledges Land lord’s need to protect the public’s right to the use and enjoyment of the Fontana Community Senior Center . Tenant shall use the Beauty Salon in a manner that does not unreasonably disturb the u se and occupancy of the Center. Upon notice from the Landlord , Tenant shall take reasonable steps to mitigate any such disturbance.
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5 8. BEAUTY SALON HOURS AND OPERATIONS.

8.1 Normal Business Hours . The Beauty Salon shall be open to the public for business generally at the followin g times, which times represent Pacific Sta ndard Time and shall be referred to herein, collectively, as the “Normal Business Hours”:
a. Monday through Friday, 9:00 a.m. - 4:00 p.m.
b. Saturday, 9:00 a.m. – 12:00 p.m.
c. Sunday, Closed
d. Approved Special Events, as defined below.

8.2 Special Events. Tenant shall work with Landlord in programming use of the Beauty Salon with special events, including but not limited to, live musical performances, dance participation , programming events, miscellaneous events thought out the year (“Special Events”) and arranging for and facilitating the scheduling of such Special Events, provided that the Party proposing a Special Event shall provide advance written notice of such Special Event to the other Party. Approval of Special Events proposed by Tenant shall be in the Landlor d’s sole and absolute discretion. If necessary, the Landlord and Tenant may agree to change/modify the monthly performance if the Tenant can demonstrate in writing financial hardship for these enhanced services fo r the Beauty Salon.

8.2.1 Additional Access . Ac cess to the Beauty Salon outside of the Normal Business Hours for Beauty Salon maintenance and operational purposes shall be provided to Tenant and employees of Tenant, and to no other persons, between 8:00 A.M. and 7:00 P.M. Monday through Thursday , between 8:00 A.M. and 5:00 P.M. on Friday, and between 8:00 A.M and 12:00 P.M on Saturday Pacific Standard Time. No additional access will be granted on Sunday. Access to the Beauty Salon outside of the Normal Business Hours or during Special Events shall be s ubject to change by Landlord upon twenty-four (24) hours notice.

8.2.2 Change of Normal Business Hours. Landlord and Tenant may from time to time, agree to change the Normal Business Hours, but in no case shall the Beauty Salon be open for business earlier than 8:00 A.M., or later than 7:00 P.M.

Monday through Thursday, earlier than 8:00 A.M., or later than 5:00 P.M. on Friday, and earlier than 8:00 A.M., or later than 12:00 P.M. on Saturday Pacific Standard Time.

8.3 Alcohol. The handling, sale, or consumption o f alcohol within the Beauty Salon is prohibited unless otherwise permitted by the City of Fontana Municipal Code, or City Ordinance or Regulation, and approved in writing by the City.

8.4 Smoking. Smoking within the Beauty Salon is prohibited.

8.5 Music. Music may be played in the Beauty Salon in compliance with Landlord approved sound levels and in accordance with the following restrictions:
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6 8.5.1 Permissible music shall include only radio -edited music that contains no profanity.

8.5.2 Any denial by Landlord of music con tent or music play lists shall be made on a viewpoint neutral basis, and shall be reasonable in light of maintaining the Fontana Community Senior Center for its intended purpose.

8.5.3 The Landlord reserves the right to require that music being played is discontinued, or may be discontinued by Landlord at any time without prior notice.

8.5.4 Tenant shall comply with all copyright laws and shall, prior to playing music on the Beauty Salon premises during the Normal Business Hours of the Beauty Salon, obtain any and all music licensing rights as may be required by law.

8.5.7 Volume levels must be kept at an appropriate level for conducting business within the Fontana Community Senior Center. Volume levels may be adjusted by Landlord and Landlord reserves the right to ad just volume levels without prior approval to Tenant.

8.6 Parking. Parking for Tenant’s employees, patrons and deliveries shall be available in the public parking areas, in accordance with the provisions and limitations of any applicable government code sections.

9. IMPERMISSIBLE USES.

9.1 Hazards. Tenant shall not commit or permit the commission of any acts on the Beauty Salon premises, nor use or permit t he use of the Beauty Salon premises in any manner that will increase the existing rates for, or cause the ca ncellation of, any insurance policy insuring the Beauty Salon or the Fontana Community Senior Center .

Tenant shall, at its own cost and expense, co mply with any and all requirements of Landlord's insurance carriers necessary for the continued maintenance, at reasonable rates, of Landlord’s insurance policies covering the Fontana Community Senior Center .

Tenant shall not store upon the Beauty Salon, o r permit or suffer the storage upon the Beauty Salon of, any perishable goods , flammable materials, toxic ch emicals or materials, explosives or other dangerous materials or any hazardous materials (as defined from time to time by the appropriate governmental agencies).

9.2 Waste or Nuisance. Tenant shall not commit or permit the commission by others of any waste on the Beauty Salon premises. Tenant shall not maintain, commit, or permit the maintenance or commission of any nuisance as defined in Civil Code Section 3479 on the Beauty Salon premises. Tenant shall not use or permit the use of the Beauty Salon for any unlawful purpose.

10. COMPLIANCE WITH LAWS. Throughout the term of this Agreement, Tenant shall at its own cost and expense comply with all statutes, ordinances, regulations, and requirements, of all governmental entities, federal, state, county and municipal, relating to Tenant's use, operation and occupancy of the Beauty Salon, including without limitation to Section 3700 of the California Labor Code which requires every employer to 251

7 be insured against liability for worker’s compensation or to undertake self -insurance in accordance with that Code.

11. UTILITIES.

11.1 Utility Service Costs. Landlord shall furnish, subject to Subsection 11.2 herein, the services described below to the Beauty Salon on an access and override basis. (a) Electricity for normal lighting and equipment.
(b) Heat and air conditioning as required in Landlord’s sole and reasonable judgment for the comfortable use and
occupation of the Beauty Salon during the Normal Business Hours, as defined in Section 8.1.
(c) Water in quantities reasonably required by Tenant.
(d) Gas in quantities reasonably required by Tenant.
(e) Refuse disposal in quantities reasonably required by Tenant.
(f) Building smoke detection, security alarm, including a security monitoring camera, and lighting reasonably
required for safe operation of the Beauty Salon.

11.2 Landlord shall not be liable for, and Tenant shall not be entitled to, any reduction of Rent by reason of Landlord’s failure to furnish any of the foregoing when such failure is caused by accident, breakage, repairs, strikes, lockouts or other labor disturbances or labor disputes of any character, or by any other cause, similar or dissimilar, beyond the reasonable control of Landlord. Landlord shall not be liable under any circumstances for the loss of or injury to property, however occu rring, through or in connection with or incidental to failure to furnish any of the foregoing.

11.3 Tenant will not, without written consent of Landlord, use any apparatus or device in the Beauty Salon which will in any way increase the amount of utilities normally furnished or supplied for a beauty salon and concession service facility. Tenant shall not connect any apparatus or device to a utility location/outlet located outside of the Beauty Salon, unless required for the provision of entertainment services during approved Special Events and as mutually agreed upon by Landlord and Tenant.

11.4 Landlord estimates that the cost of Tenant’s required utility use shall not exceed one hundred percent (10 0%) of the monthly Rent (“Estimated Utility Co sts”). If Tenant’s utility usage exceeds the Estimated Utility Costs, Landlord may, in its sole and reasonable discretion and after consultation with Tenant:
(a) cause a meter(s) to be installed in the Beauty Salon, so as to measure Tenant’s utility us age. The cost of any such m eter(s) and of installation, 252

8 maintenance and repair thereof shall be paid for by Tenant and Tenant agrees to pay to Landlord promptly upon demand therefore by Landlord, for all such utilities consumed as shown by said meter(s), at the rate charged for such services by the local public utility furnishing the same, plus any additional expense incurred in keeping account of the utilities so consumed;
(b) bill Tenant for all costs in excess of the Estimated Utility Costs.
(c) at Tenant’s request, and at Tenant’s sole c ost and expense, Tenant may pay for the utility company or an el ectrical engineer, approved by Landlord , to provide an estimated allocation of costs in excess of the Estimated Utility Costs.

12. TAXES.

12.1 Personal Property Taxes. Tenant covenants and agrees to pay, before any fine, penalty, interest or cost may be added thereto for the nonpayment thereof, all taxes (including any possessory interest taxes which may be created hereby or imposed pursuant to law), assessments, and other governmental charges, genera l and special, ordinary and extraordinary, unforeseen as well as foreseen, of a ny kind and nature whatsoever, which shall during the term of this Lease be laid, assessed, levied or imposed upon or become due and payable with res pect to any furniture, trade fixtures, appliances, and other personal property placed by Tenant in, on, or about the Beauty Salon, including, without limitation, any shelves, counters, vaults, vault doors, wall safes, partitions, fixtures, machinery, equip ment, television, radio ante nna, and communication equipment brought onto the Beauty Salon by Tenant.

12.2 Real Property Taxes . Tenant covenants and agrees to pay, before any fine, penalty, interest or cost may be added thereto for the nonpayment thereof, all taxes (including any possess ory interest taxes which may be created hereby or imposed pursuant to law), assessments, and other governmental charges, general and special, ordinary and extraordinary, unforeseen as well as foreseen, of a ny kind and nature whatsoever, which shall during the term of this Lease be laid, assessed, levied or imposed upon or become due and payable with respect to the Beauty Salon imposed by any governmental entity for any reason whatsoever.

13. CONDITION OF PREMISES. Tenant accepts the Beauty Salon, as well as any Improvements located on the Beauty Salon premises, in an “as is” condition without warranty, express or implied, as to the condition or usability of the Beauty Salon or Improvements. Tenant further agrees with and represents to Landlord that Tenant sha ll inspect the Beauty Salon prior to taking possession, after such inspection Tenant found the Beauty Salon suitable for Tenant’s use, and affirms that the Beauty Salon is being leased by Tenant as a result of its own inspection and investigation and not a s a result of any representations made by Landlord or any agent of Landlord . Landlord shall have no obligation to improve, remodel, alter or otherwise modify the Beauty Salon prior to or during Tenant's occupancy.
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9 14. MAINTENANCE OF PREMISES.

14.1 Landlord Obligations. Landlord shall maintain the Structural Elements of the Fontana Community Senior Center, including the Beauty Salon, in good condition and repair. “Structural Elements” include the roof, exterior walls, structural support and foundation. Structural Elements shall not include show window glass.

14.1.1 Landlord may, for the purpose of maintaining the Structural Elements, erect scaffolding and other necessary structures where reasonably required by the character of the work to be performed. Landlord sha ll not block the entrance to the Beauty Salon during Normal Business Hours, except in the case of an emergency, and shall no t unreasonably interfere with operation of the Beauty Salon. Tenant hereby waives any claim for damages, for any injury or inconveni ence to or interference with Tenant’s business, or for any loss of occupancy or quiet enjoyment of the Beauty Salon, and any other loss occasioned thereby, provided that Landlord make a reasonable effort to avoid any such injury, inconvenience or interference.

14.1.2 Landlord shall have the right to use any and all means which Landlord may deem proper to open any doors or otherwise o btain access to the Beauty Salon in an emergency, without liability to Tenant, except for any failure to exercise due care for Tenan t’s property, and any entry to the Beauty Salon obtained by Landlord by any of said means or otherwise shall not under any circumstances be construed or deemed to be forcible or unlawful entry into a detainer of the Beauty Salon or an eviction of Tenant from the Beauty Salon or any portion thereof.

14.2 Tenant’s Obligations . Throughout the term (including the Initial Term and any Extended Term) of this Lease, Tenant shall take good care of the Beauty Salon, its appurtenances, fixtures and equipment. Tenant shall operate, maintain, and repair at no cost or expense to Landlord, the Beauty Salon throughout the Initial Term and any Extended Term of this Agreement. All Improvements and any items and equipment provided by the City for operation of the Beauty Salon, as specified in Exhibit “B”, shall be maintained in good and workable order and repair and in as safe and clean a condition as they were when received by Tenant, or as when they were installed by Tenant, reasonable wear and tear excepted.

14.2.1 Required mainten ance includes, but is not limited to providing environmentally friendly green cleaning products and supplies for a clean and sanitary custodial/janitorial services and removal of graffiti and safety hazards within twenty -four (24) hours of receiving written or verbal notification from Landlord.

14.2.2 Tenant shall make any repairs to the Beauty Salon and to any Improvements, items a nd equipment provided by the City for operation of the Beauty Salon, as specified in Exhibit “B”, caused by or incident to Tenant’s use of the Beauty Salon or implementation of this Agreement at its sole cost, expense and liability.

Maintenance and repairs shall be made promptly to protect public safety. 254

10 14.2.3 Tenant shall be responsible for the repair of any damage to the Fontana Communit y Senior Center caused by Tenant or its contractors at its sole cost, expense and liability. All such work is to be perform ed in accordance with the standards approved by Landlord.

14.2.4 The restrooms and janitorial closet as depicted in Exhibit “A”, are made available for the exclusive use of the Tenant, its employees and patrons and are the maintenance responsibility of the Tenan t. Restroom maintenance shall include cleaning, stocking of sanitary supplies, and the repair/replacement of fixtures, as necessary , to maintain the restrooms in a safe, operable condition.

14.2.5 Tenant shall perform all non -safety and non -graffiti repairs with in thirty (30) days of notification to Tenant by Landlord. Failure by Tenant to perform non - safety or non-graffiti repairs within thirty (30) days of notification to Tenant by Landlord, Landlord may make any such repairs at Tenant’s expense. Tenant shall promptly reimburse Landlord for any such repairs.

14.2.6 Tenant shall provide site security during all construction and maintenance activities.

14.3 Maintenance of Plate Glass . Tenant shall be sole ly responsible for the cost and expense of maintenance, repair or replacement of plate glass in any Beauty Salon show window, unless such window is damaged or broken by Landlord or by an employee or agent of Landlord. Should Tenant fail to repair or replace any glass broken in a Beauty Salon show window, Landlord may replace or repair the broken window, and Tenant shall promptly reimburse Landlord for the cost of the repair, replacement.

15. ALTERATIONS AND LIENS.

15.1 Alterations. Tenant shall not make or allow to be made any alterations to the Beauty Salon, including interior design and color selections, without the prior written consent of Landlord.

15.1.1 In the event that Landlord consents to Tenant’s req uested alterations, additions or improvements to the Beauty Salon, the sam e shall be made by Tenant at Tenant’s sole cost and expense.

15.2 Liens. Tenant shall keep the Beauty Salon free and clear from any and all liens, claims, and demands for work performe d, materials furnished, or operations conducted on the Beauty Salon premises. Any construction of alterations, additions or improvements shall be completed in compliance with all laws and governmental requirements, including but not limited to the payment of Prevailing Wages.

16. ENTRY BY LANDLO RD. Landlord or Landlord's agents, representatives, or employees shall have the right, at any time in case of an emergency and at any and all reasonable times during Normal Business Hours and upon twenty -four (24) hour s prior notice to Tenant, except as expressly provided herein, to enter the Beauty Salon for the 255

11 purpose of an emergency, for the purpose of inspecting the Beauty Salon to determine whether Tenant is complying with the terms of this L ease, for the purpose of doing other lawful acts that may be necessary to protect Landlord's interest in the Beauty Salon, or for the purpose of performing Landlord's duties under this Lease, as Landlord may deem necessary or desirable. Tenant hereby waives any claim for damag es for any injury, inconvenience, interference, or loss of occupancy or quiet enjoyment of the Beauty Salon by reason of Landlord's exercise of its rights of entry in accordance with this Section 16, and Tenant shall not be entitled for any abatement in rent upon such entry by Landlord.

17. SURRENDER OF PREMISES . Upon the expiration or earlier termination of this Agreement, Tenant shall promptly vacate the Beauty Salon and deliver the Beauty Salon, including all Improvements thereto and all items and equipment provided by the Landlord for operation of the Beauty Salon, as specified in Exhibit “B”, to Landlord in as good condition as the Beauty Salon existed on, as applicable: (i.) the Effective Date of this Agreement; or (ii.) on the date that such Improvement s were made or installed, excluding reasonable wear and tear, and repairs required to be made by Landlord under this Lease.

18. INDEMNITY

18.1 Tenant’s Obligations . Tenant agrees to defend, indemnify, and hold Landlord, its directors, officials, officers, employ ees, agents, or volunteers, and each of them harmless from and against any all liability resulting from Tenant's occupation and use of the Beauty Salon, specifically including, without limitation, any claim, liability (including, without limitation attorne y’s fees costs and expenses incurred in defending against such claims), loss, or damage (including, without limit, all consequential damages) arising by reason of:
(a) The death or injury of any person or persons, or by reason of the damage to or destruction of any property, including property owned by Tenant or any person who is an employee or agent of Tenant, and caused or allegedly caused by either the condition of the Beauty Salon, or some act or omission of Tenant or of some agent, contractor, employee, s ervant, custom er, or concessionaire of Tenant on the Beauty Salon premises;
(b) Any work performed on the Beauty Salon premises or
materials furnished to the Beauty Salon at the instance or request of Tenant or any agent or employee of Tenant; and
(c) Tenant's f ailure to perf orm any provision of this Agreement.

If any action or proceeding is brought against Landlord by reason of any such claim, upon notice from Landlord, Tenant shall defend the same at Tenant's expense by counsel reasonably satisfactory to Landlord. Tenant, as a material part of the consideration to Landlord, hereby assumes all risk of damage to property or injury to persons in, upon or about the Beauty Salon from any cause whatsoever and Tenant 256

12 hereby waives all claims, demands, actions, proceedings, damages, losses, judgments or expenses with respect thereto against Landlord. The foregoing provisions shall survive the termination of this Lease.

18.2 Landlord’s Obligations. Landlord agrees to defend, indemnify, and hold Tenant, its directors, employees, agents, and each of them harmless from and against any and all liability to third parties resulting from Landlord’s occupation and use of the Fontana Community Senior Center , excluding the Beauty Salon, or from Landlord’s maintenance or failure to m aintain the St ructural Elements of the Fontana Community Senior Center , including the Beauty Salon. This obligation to defend, indemnify and hold harmless specifically includes, without limitation, any claim, liability (including, without limitation attor ney’s fees cos ts and expenses incurred in defending against such claims), loss, or damage (including, without limit, all consequential damages) arising by reason of:
(a) The death or injury of any person or persons, or by reason of the damage to or destruction of any property, including property owned by Landlord or any person who is an employee or agent of Landlord, and caused or allegedly caused by either the condition of the Fontana Community Senior Center , excluding the Beauty Salon, or some act or omissio n of Landlord or of some agent, contractor, employee, or patron of Landlord on the Fontana Community Senior Center premises; (b) Any work performed on the Fontana Community Center
premises, excluding the Beauty Salon; and
(c) Landlord’s failure to perform any pr ovision of this Agreement.

18.3 Exemption of Landlord from Liability. Landlord shall not be liable to Tenant for any loss, cost, expense or damage to Tenant's property or arising out of or in connection with any act or omission of any other tenant of the Fontana Community Senior Center or for losses due to theft or burglary or other wrongful acts of thi rd parties.

Tenant hereby releases Landlord from any liability, claim or action arising out of or in connection with such damage. Landlord shall not be liable to Tenant for any damages arising out of or in connection with any act or omission of any other tenant of the Building or for losses due to theft or burglary or other wrongful acts of third parties.

19. INSURANCE.

19.1 Tenant’s Insurance. At all times throughout the Initial Term and any Extended Term of this Agreement, Tenant shall, at its own cost and e xpense, provide the following insurance coverage’s:

19.1.1 Fire and casualty coverage insurance covering the Beauty Salon and all Improvements either now or hereafter lo cated on the Beauty Salon premises, against loss or damage by fire or other risks or perils, i ncluding vandalism and malicious 257

13 mischief, in an amount not less than one hundred percent (100%) of the full replacement cost of the Beauty Salon and Improvements.

19.1.2 Comprehensive public liability insurance against claims for personal injury, death, or pro perty damage occurring in connection with the use and occupancy of the Beauty Salon and Improvements thereon by Tenant, and providing coverage with minimum limits of liability of not less than One Million and No/100 Dollars ($1,000,000.00) for bodily injur y or death in any one occurrence, Two Million and No/100 Dollars ($2,000,000.00) in the aggregate per policy year, and One Million and No/100 Dollars ($1,000,000.00) for property damage. Tenant's policy shall name the Landlord as an additional insured.

19.1.3 Such other insurance as Landlord may reasonably require from time to time in such amounts and against such insurable risks as may be commonly maintained for Lease P roperty similarly situated and containing comparable improvements.

19.1.4 Policies. All policies r equired to be maintained by Tenant pursuant to this Section 19 shall be affected under enforceable policies issued by insurers licensed to do business in the Stat e of California. All policies shall contain language to the effect that: (a) Landlord to re ceive written notification of not less than ten (10) days prior to any cancellation or modification of Tenant's insurance coverage, and shall provide that Landlord’s interest shall not be invalidated by any acts, omissions or neglect of anyone other than L andlord; (b) the insurer waives the right of subrogation against Landlord and against Landlord’s agents and representatives; (c) the policies are primary and noncontributing with any insurance that may be carried by Landlord.

In the event Tenant fails to timely pay any premiums with respect to its insurance, Landlord shall have the right, but not the obligation, to pay the premiums and obtain the insurance, and any amounts paid by Landlord therefore shall be deemed additional rent payable by Tenant upon demand. Tenant shall cause the insurer(s) to furnish to Landlord certificate(s) evidencing any insurance required to be maintained by Tenant hereunder. Nothing contained in this Section 19 shall prohibit Tenant from carrying deductibles or self -insured retentions on any policies of insurance as deemed appropriate by Tenant.

19.2 Landlord’s Insurance . Landlord is self -insured with coverage in amounts at least equal t o the amounts provided herein. The Landlord shall provide evidence of such insurance as reasonably requested by Tenant.

20. SIGNS AND TRADE FIXTURES

20.1 Installation and Removal of Trade Fixtures . During the term of this Agreement, Tenant may, at Tenant's sole cost and expense, install and affix in, to, or on the Beauty Salon any items, herein called '' trade fixtures,'' for use in Tenant's trade or business that Tenant may deem advisable with prior written consent of Landlord . Any and all trade fixtures that ca n be removed without structural damage to the Beauty Salon 258

14 shall remain the property of the Tenant and may be removed by Tenant at any time before the expiration or earlier termination of this lease, subject to Section 20.3 herein, provided Tenant repairs any damage caused by the removal.

20.1.1 Landlord waives any lien rights it may have concerning the Beauty Salon for property that is deemed Tenant’s personal property.

20.2 Unremoved Trade Fixtures. Any trade fixtures described in this Section that are not removed from the Beauty Salon by Tenant within thirty (30) days after the expiration or earlier termination regardless of cause, of this Agreement shall be deemed abandoned by Tenant and shall automatically become the property of Landlord as owner of the real property to which they are affixed.

20.3 Right of First Refusal. The Parties agree that upon the expiration or earlier termination of this Agreement, the Landlord shall have the first right of refusal to purchase Tenant’s removable trade fixtures. The purchase price offered to Landlord shall be based on the IRS deduction schedule.

20.4 Signs. Tenant shall not place any signage, logos, or graphics on the interior or exterior of the Fontana Community Senior Center, except as may be approved in writing by the Landlord, or as may be required by law.

21. DAMAGE AND DESTRUCTION

21.1 Tenant’s Options . If the Beauty Salon is materially destroyed or damaged, by other than an act of Tenant, to materially and adversely impair Tenant’s effective use of the Beauty Salon, Tenant may elect to terminate this Agreement as of the date of the damage or destruction by notifying Landlord no more than forty -five (45) days following the date of such damage or destruction. If Tenant elects to terminate this Agreement pursuant to this Section , all rights and obligations of the parties that do not survive the termination of this Agreement shall cease as of the date Landlord receives Tenant’s termination notice. If Tenant chooses not to terminate this Agreement, Rent shall be reduced or abated in pr oportion to the actual reduction or abatement of use of Beauty Salon for a period until such damage can be repaired by Tenant, not to exceed six (6) months, unless Landlord determine s in good faith that the Beauty Salon cannot be rebuilt in a commercially reasonable manner. In the event of damage or destruction to the Fontana Community Senior Center that prevents Tenant from operating Beauty Salon, Landlord shall abate the rent in its entirety until such a t ime as the damage can be corrected and the Tenant can return to normal operations, pursuant to the provisions of this Agreement. Landlord reserves the right to audit Tenant’s reduction or abatement request.

21.2 Landlord’s Options. In the event that the Beauty Salon and/or the Fontana Community Senior Center are materially and adversely damaged or destroyed, or Improvements thereto are determined by applicable law to be unsafe, Landlord shall have the right to terminate this Agreement upon written notice to Tenant, provided that Landlord shall give such no tice within forty-five (45) days of the date of such damage or 259

15 destruction or determination as to safety. If Landlord elects to terminate this Agreement pursuant to this Section, all rights and obligations of the parties that do not survive the termination of this Agreement shall cease as of the date of Beauty Salon's receipt of Landlord’s termination notice. In no event shall Landlord be obligated to repair any casualty or other damage or destruction to th e improvements located in the Beauty Salon and/or the Fontana Community Senior Center , whether or not covered by Landlord’s insurance, if any.

21.3 Insurance Proceeds . If either Party exercises its right to terminate, Tenant may utilize insurance proceeds, if any, of the insurance required to be carried by Tenant pursuant to this Agreement, to satisfy liens expressly approved, in writing, by the Landlord. The Landlord shall be entitled to any and all remaining insurance proceeds.

22. EMINENT DOMAIN

22.1 In the ev ent that the whole or substantial part of the Fontana Community Senior Center shall be acquired or condemned by eminent domain for a public or quasi - public use or purpose, this Agreement shall terminate. The date of termination pursuant to the exercise of eminent domain authority by a governmental entit y shall be the date on which title vests in said governmental entity.

22.2 An award for condemnation, if any, shall be paid first to the Tenant so that the Tenant may satisfy any other liens for which th e Tenant obtained the express written consent of the Landl ord to incur. The Landlord shall be entitled to the remainder of any condemnation award.

23. DEFAULT AND RIGHT OF REENTRY

23.1 Events of Default. Each of the following occurrences shall be an event of default hereunder:

23.1.1 If default shall be made by Tenant in any of the covenants, agreements, conditions or undertakings herein to be kept, observed and performed by Tenant and Tenant shall not have commenced to cure such default within thirty (30) calendar days after notice thereof in writing to Tenant.

23.1.2 If Tenant shall voluntarily file any petition, or have an involuntary petition filed on its behalf, under any chapter or section of the Federal Bankruptcy Code or any similar law, state or federal, whether now o r hereafter existing, or shall file an answer admitting insolvency or inability to pay its debts; provided however, that Tenant shall not remain in default if Tenant shall continue to pay all Rent and Additional Charges and comply with all other terms and conditions of the Agreement.

23.1.3 If a trustee or receiver shall be appointed for Tenant or for a major portion of its property or for any portion of the Beauty Salon. 260

16 23.1.4 If any court shall have taken jurisdiction of a major portion of the property of Tenant or an y potion of the Beauty Salon in any involuntary proceeding for dissolution, liquidation or winding up of Tenant and such jurisdiction shall not be relinquished or vacated within sixty (60) calendar days.

23.1.5 If Tenant shall make an assignment for the benefit of its creditors.

23.2 Right of Reentry. Upon the occurrence of any default that is not cured within the applicable cure period, and at any time after the expiration of the applicable cure period, Landlord shall have the right, at its election, to reenter the Beauty Salon, or any part thereof, either with process of la w, and to expel, remove and put out Tenant, using such force as may be necessary in so doing, and again to possess the Beauty Salon and enjoy the same as in their former estate and to take full pos session of and control over the Beauty Salon and to have, h old and enjoy the same and to receive all rental income of and from the same. No reentry by Landlord shall be deemed an acceptance of a surrender of this Agreement, nor shall it absolve or dischar ge Tenant from any liability under this Agreement. Upon su ch reentry, all rights of Tenant to possess the Beauty Salon shall cease and terminate.

24. TERMINATION. This Agreement may be terminated, without further liability on the part of the party terminatin g the Agreement, with sixty (60) days prior written notice (or upon such notice as otherwise expressly provided below) as follows:

24.1 By either party upon a default of any covenant, condition or term herein by the other party, which default is not cured within thirty (30) days of receipt of written notice of default, provided that the grace period for any monetary default is only ten (10) days from receipt of notice. No default will be deemed to exist if the party alleged to be in default has commenced to cure such default within such period and provided that such efforts are brought to completion with reasonable diligence; or

24.2 By either Party after the Effective Date for any reason or for no reason, provided that the terminating Party delivers written notice of early termination to the non- terminating Party no later than sixty (60) days prior to termination; or

24.3 By Landlord, upon sixty (60) days’ written notice to Tenant, in the event Tenant causes interference with the Landlord’s operation and maintenance of the Fontana Community Senior Center , provided, however, that Landlord has first given Tenant written notice of such interference and Tenant is unable to correct or cease such interference within thirty (30) days of written notice of such interference.

24.4 By either party in the event that any certificates, permits and other approvals (collectively the “Governmental Approvals”) that may be required by any Federal, State or Local authorities should be finally rejected or any Gover nmental Approval issued to Tenant is canceled, expires, lapses, or is otherwise withdrawn or terminated by governmental authority. By either party, upon ten (10) days’ notice, should Landlord fail to complete construction of the Beauty Salon or adjacent po rtions of the 261

17 Fontana Community Senior Center within sixty (60) days of the date first refer enced in this Agreement.

24.5 Rights Upon Termination . Upon termination neither party shall have any further rights, obligations or liabilities to the other except: (i) with respect to provisions of this Agreement that survive termination; (ii) with respect to the rights and remedies of the parties relating to the period prior to termination; and (iii) upon notice to Tenant within ten (10) days of Landlord’s receipt of a notice terminating the Agreement, Landlord may require that Tenant remove all construction caused by Tenant which has not been completed and restore the Beauty Salon within sixty (60) days of the termination notice, to the condi tion (to the extent such change in condition was caused by Tenant) existing prior to the full execution of this Agreeme nt, wear and tear, and casualty excepted.

25. ASSIGNMENT. Tenant shall not encumber, transfer or assign this Agreement or any interest in th is Agreement or sublet the premises or any portion thereof without first obtaining the written consent of Landlord. An y attempted transfer, encumbrance, assignment or subletting, including any involuntary transfers or assignments by operation of law, wit hout such written consent shall be void and confer no rights upon any third person. No such transfer, assignment or sub letting shall relieve Tenant of its liability for the full performance of all of the terms, agreements, covenants and conditions of this Agreement.

25.1 Financing Arrangements . Notwithstanding Section 15.2, upon Landlord’s consent and written approval, Tenan t may enter into an approved financing arrangement for the purchase of trade fixtures necessary for operation of the Beauty Salon, and for approved Improvements to the Beauty Salon. Any encumbrance shall be, at all times, subordinate to the ownership rights of the Landlord.

26. SAFETY AND ENVIRONMENTAL PROTECTION.

26.1 In carrying out its work, Tenant shall at all times, exercise all necessary precautions for the safety and environmental protection of the Beauty Salon, and be in compliance with all federal, state and local statutory and regulatory requirements including State of California, Division of Industrial Relations (Cal/OSHA) regulations, Cal/EPA, US/EPA and the U.S. Department of Transportation including the Omnibus Transportation Employee Testing Act (as applicable).

26.2 Tenant shall not use or allow anyone else to use the Beauty Salon to generate, manufacture, refine, transport, treat, store, handle, recycle, release or dispose of any hazardous material, other than as reasonably necessary for the operation o f the Tenant’s activities as contemplated under this Agreement. The term "hazardous material" means any hazardous substance, material o r waste, including but not limited to those listed in 49 CFR 172.101 (U.S. Department of Transportation), the Cal/EPA Chemical Lists of lists or petroleum products and their derivatives. However, this shall not apply to the use of petroleum products and r elated substances incidental to operation 262

18 of motorized equipment and vehicles whose operation in the Beauty Salon is contemplated by this Agreement.

26.3 Tenant shall immediately notify the Landlord in writing upon becoming aware of any release of hazardous material, violation of any environmental law or actions brought by third parties against the Tenant alleging environmental damage.

26.4 Landlord represents, warrants and agrees (1) that neither Landlord nor, to Landlord’s actual knowledge (without Landlord having researched the matter), any third party has used, generated, stored or disposed of, or permitted the use, generation, st orage or disposal of, any hazardous material on, under, about or within the Beauty Salon in violation of any law or regulation, and (2) that Landlord has not, and will not permit any third party to use, generate, store or dispose of any hazardous material on, under, about or within the Fontana Community Senior Center in violation of any law or regulation.

26.5 Landlord and Tenant each agree t o defend, indemnify and hold harmless the other and the other's partners, affiliates, agents and employees against any a nd all losses, liabilities, claims and/or costs (including reasonable attorneys’ fees and costs) arising from any breach of any represen tation, warranty or Agreement contained in this section. This section shall survive the termination of this Agreement.

27. Notices. Any notice, demand or payment required to be given herein, or change of the address provided in this Section 27, shall be made by certified or registered mail, return receipt requested, or reliable overnight courier to the address of the respecti ve parties set forth below:

Landlord:

City of Fontana
8353 Sierra Avenue
Fontana, CA 92335
Attention: City Manager

Tenant:

Latanya Anthony
d/b/a Boss Hair Studios
#### XXXXX

XXXXXXXX

Landlord or Tenant may from time to time designate any other address fo r this purpose by written notice to the other party.

28. MISCELLANEOUS PROVISIONS.

28.1 Nondiscrimination. Tenant herein covenants by and for itself and its assigns, and all persons claiming under or through Tenant, that this Lease is made and accepted upon and subject to the following conditions: that there shall be no discrimination against or segregation of any person or group of persons on account of 263

19 race, color, creed, religion, sex, marital status, national origin, or ancestry in the subleasing, transferri ng, use, occupancy, tenure, or enjoyment of the Beauty Salon nor shall the Tenant, itself, or any person claiming under or through Tenan t, establish or permit any such practice or practices of discrimination or segregation.

28.2 Attorney's Fees. In the event l egal action by either party is brought to enforce any term hereof or in the recovery of damages for any breach hereof, or to determine a ny rights of the parties under this Agreement, the prevailing party in such actions may recover reasonable attorneys' fees.

28.2.1 When any provision of this Agreement entitles either party to receive costs or expenses from the other for a breach of any term here in, the terms costs and expenses shall include reasonable attorney's fees incurred, notwithstanding any reference or lac k of reference to attorney's fees. When any article or provision of this Agreement provides that a party will hold an indemnitee harmless from claims, such shall pay all such indemnitee’s reasonable attorney's fees incurred in investigating and defending such claims.

28.3 Prevailing Wages. Tenant has been advised of California Labor Code section 1770 et seq. Tenant has also been advised of t he Attorney General Opinion (No. 86 803) and California Senate Bill 975.

28.3.1 It shall be the sole responsibility of Tenant to determine whether to pay prevailing wages for any or all work required by this Agreement. Tenant shall be liable if it violates applicable law.

28.4 As a further material part of this Agreement, Tenant shall be liable to Landlord, its officials, officers, e mployees, consultants and agents from any and all claims, liability, loss, costs, damages, expenses, fines and penalties, of whatever ty pe or nature, including all costs of defense and attorneys' fees, arising from any failure of the Tenant or Tenant's con tractors to comply with the prevailing wage laws of the State of California.

28.5 Relationship. Nothing contained in this Lease shall be dee med or construed by the Parties or by any third Person to create the relationship of principal and agent, or of partners hip or joint venture, or of any association between Landlord and Tenant, and none of the provisions contained in this Lease or any acts of the Parties shall be deemed to create any relationship other than lessor and lessee between Landlord and Tenant, nor shall this Lease be construed, except as expressly provided, to authorize either to act as agent for the other.

28.6 Entire Agreement. This Agreement constitutes the entire Agreement and understanding between the parties, and supersedes all offers, negotiation s and other Agreements concerning the subject matter contained herein. Any amendments to this Agreement must be in writing and executed by both parties.

28.7 Severability. If any provision of this Agreement is invalid or unenforceable with respect to any part y, the remainder of this Agreement or the 264

20 application of such provision to persons other than those as to whom it is held invalid or unenforceable, shall not be affected and each provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

28.8 Successors and Assigns . This Agreement shall be binding on and inure to the benefit of the successors and permitt ed assignees of the respective parties. Any reference to the "Landlord" or "Tenant" shall be deemed to refer to any aut horized agent of such referenced party.

28.9 Applicable Law. This Agreement shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought i n a state or federal court situated in the County of San Bernardino, State of California.

28.10 Cooperation, Further Acts. In any case where the approval or consent of one party hereto is required, requested or otherwise to be given under this Agreement, such party shall not unreasonably delay providing a response to the other party.

28.11 Waiver or Modification. No waiver by a Party hereto at any time of any of the terms, conditions, or covenants of this Agreement shall constitute a waiver at any time thereafter of the same or any other term, condition, or covenant of this Agreement.

28.12 Exhibits. All Exhibits attach ed hereto are material parts of this Agreement and are hereby incorporated herein by reference.

28.13 Counterparts. This Agreement may be executed in duplicate counterparts, each of which shall be deemed an original.

28.14 Authority. Each party to this Agreement rep resents and warrants that it has all requisite power and authority to conduct its business and to sign, deliver and perform the Agreement. Each party warra nts that the individual who has signed this Agreement has the legal power, right and authority to make and enter into this Agreement and bind each respective party.

28.15 Time. Time is of the essence in this Agreement and every provision hereof.

[SIGNATURES ON FOLLOWING PAGE]
265

21 SIGNATURE PAGE
TO

FONTANA COMMUNITY SENIOR CENTER BEAUTY SALON LEASE

AGREEMENT

LANDLORD:

CITY OF FONTANA
By:

Matthew C. Ballantyne
City Manager
TENANT:

Latanya Anthony a sole proprietor, d/b/a
Boss Hair Studios Fontana Community
Senior Center Beauty Salon

By:

Attest:

By:

City Clerk

Approved as to form:

Best Best & Krieger LLP
City Attorney

By: _____________________________
Daniel Schneider, Department Head

By: _____________________________
Rakesna Thomas, Risk
Management

IN COMPLIANCE WITH PURCHASING AND CONTRACT ADMINISTRATION POLICIES/PROCEDURES

_________,
Jessica Brown, Director
Management Services Department

266

Exhibit A

EXHIBIT “A”

DESCRIPTION AND DEPICTION OF THE BEAUTY SALON

[The area encompassing the Beauty Salon is circled in red on the map attached below.]

Located on the second floor of the Fontana Community Seni or Center on the west side of the building next to the arts and crafts room.

267

Exhibit B

EXHIBIT “B”

DESCRIPTION OF IMPROVEMENTS, ITEMS AND EQUIPMENT PROVIDED BY

CITY FOR OPERATION OF THE BEAUTY SALON

The identified Beauty Salon space is just over two hundred and nine (209) square feet, featuring wireless internet access and furnishings to include:

Description QTY
Styling stations/cabinets 2
Black base shampoo backwash unit 1
Manicure table 1
Nail operator chair 1
Dryer chair 1
Styling chairs 2
Customer chairs 2
Styling reclining chair for wash bowl 1
Wall mirror 1
Lighted mirrors 2
Salon mats 2
Chemical cabinets 1
Dryer Domes 1
Towel cabinets 2

Any other equipment or supplies necessary for operation of the facility, including cash registers, shall be provided by the vendor.

268

Exhibit C

EXHIBIT “C”

SERVICES

The intention of the City of Fontana is to obtain qualified, knowledgeable vendor to operate the Beauty Salon located at the Fontana Community Senior Center . Qualified vendors must have a current cosmetology license and be in good standing with the California Department of Consumer Affairs and the Boars of Barbering and Cosmetology. In addition, the vendor shall demonstrate the ability to create an atmosphere that compliments the programming offered within the facility Hours of operation will vary depending on vendor, but the Beau ty Salon must be operated at least two days a week for a minimum of four hours a day during the Fontana Community Senior Center . In addition, provide a relaxed setting for customers to enjoy their refreshments while surfin g the Internet or enjoying schedu led entertainment activities. Current operating hours for the Fontana Community Senior Center are Monday –Thursday 8:00am- 7:00pm, Friday 8:00am -5:00pm; Saturday 8:00am – 12:00pm and Closed on Sunday . Please note these hours are subject to change. The v endor would not have an opportunity to operate during times the Fontana Community Senior Center is closed to the public.

The Tenant will demonstrate the ability to provide all certifications/licenses necessary to deliver a service satisfaction guarantee and submit an operations plan on the proposed use of the Beauty Salon. Failure to pro vide the r equired documentation may result in Landlord terminating this agreement.

269
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-2938 Agenda Date: 4/23/2024
Agenda #: L. Category: Consent Calendar
FROM:

Engineering
SUBJECT:

Acceptance of Parcel Map No. 19712 and Abandonment of a Certain Portion of Right of Way of Coyote Canyon Road and Lytle Creek Road
RECOMMENDATION:

Accept Parcel Map No. 19712 located northwest of Interstate 15 (I-15) and west of Sierra Avenue, along the south side of Lytle Creek Road, accept as public dedicated streets and easements, and authorize the Mayor and City Clerk to certify the abandonment of a certain portion of right of way of Coyote Canyon Road and Lytle Creek Road.

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

DISCUSSION:

On June 2nd, 2020, the City of Fontana Planning Commission approved Tentative Parcel Map No. 19712 (TPM No. 16-002) and Design Review No. 16-003 to consolidate twelve parcels into two parcels and a remainder parcel, totaling approximately 83 acres for the development of a new commerce building totaling approximately 1,171,788 square feet. The subdivider, I-15 Logistics, has complied with the Conditions of Approval and dedicated the required streets and easements as a part of the project. The Parcel Map has been reviewed by the City Engineer and found to be substantially correct.

As a part of this Parcel Map, portions of excess road right-of-way on Coyote Canyon Road and Lytle Creek Road are no longer needed and will be abandoned. Pursuant to Section 66434(g) of the California Government Code and Section 66499.20.2 of the Subdivision Map Act, the City Clerk must certify the abandonment of those certain portions of street right-of-way. The filing of this Parcel Map shall constitute an abandonment of those portions of the easements granted to the City of Fontana for street and public utility purposes. In accordance with the Subdivision Map Act, the Parcel Map is now being brought to the City Council for final approval.

FISCAL IMPACT:

This action will only approve the Parcel Map for recordation and authorize permits for the construction of the development, therefore there is no fiscal impact to City resources at this time City of Fontana Printed on 4/17/2024Page 1 of 2
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File #: 21-2938 Agenda Date: 4/23/2024
Agenda #: L. Category: Consent Calendar
MOTION:

Approve staff recommendation.

City of Fontana Printed on 4/17/2024Page 2 of 2
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IN THE CITY OF FONTANA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIABEING A SUBDIVISION OF A PORTION OF LOTS 11 AND 19 OF MAP SHOWING SUBDIVISION OF LANDS BELONGINGTO THE SEMI-TROPIC LAND AND WATER COMPANY, FILED IN BOOK 6, PAGE 12, RECORDS OF SAID COUNTY, ANDA PORTION OF SECTIONS 7 AND 18, TOWNSHIP 1 NORTH, RANGE 5 WEST, SAN BERNARDINO MERIDIANSHEET OF 9 SHEETSNUMBER OF PARCELS 2AREA = 74.795 ACRES GROSS71.319 ACRES NETPARCEL MAP NO. 19712DAVID EVANS AND ASSOCIATES,ROBERT WALKER, P.L.S. 7137JULY 2020 1 WE HEREBY STATE THAT WE ARE ALL OF THE PARTIES HAVING ANY RECORD TITLE INTEREST IN THE LAND SUBDIVIDED AS SHOWN ON THE ANNEXED MAP, AND THAT WE ARE THE ONLY PERSONS WHOSE CONSENT IS NECESSARY TO PASS TITLE TO SAID LAND, AND WE CONSENT TO THE PREPARATION AND RECORDATION OF THIS PARCEL MAP AND THE SUBDIVISION AS SHOWN WITHIN THE SUBDIVISION BOUNDARY LINES.THE REAL PROPERTY DESCRIBED BELOW IS DEDICATED AS AN EASEMENT FOR PUBLIC PURPOSES:LYTLE CREEK ROAD AND COYOTE CANYON ROAD FOR PUBLIC STREET AND UTILITY PURPOSES AS SHOWN ON THIS MAP.THE 30' WIDE AND VARIABLE WIDTH EASEMENT FOR SLOPE MAINTENANCE PURPOSES AS SHOWN ON THIS MAP.OWNER'S STATEMENTSURVEYOR'S STATEMENTTHIS MAP WAS PREPARED BY ME OR UNDER MY DIRECTION AND IS BASED ON A FIELD SURVEY AND SUPPLEMENTALRECORD DATA IN CONFORMANCE WITH THE REQUIREMENTS OF THE SUBDIVISION MAP ACT AND LOCAL ORDINANCES ATTHE REQUEST OF CAPROCK PARTNERS, IN JULY 2020. I HEREBY STATE THAT ALL MONUMENTS SHOWN ARE OF THECHARACTER AND OCCUPY THE POSITIONS INDICATED OR WILL BE SET IN SUCH POSITIONS WITHIN ONE YEAR OF THERECORDATION DATE OF THIS MAP IN COMPLIANCE WITH SECTIONS 66495 AND 66496 OF THE SUBDIVISION MAP ACT, ANDTHAT SAID MONUMENTS ARE OR WILL BE SUFFICIENT TO ENABLE THE SURVEY TO BE RETRACED. I HEREBY STATE THATTHIS PARCEL MAP SUBSTANTIALLY CONFORMS TO THE CONDITIONALLY APPROVED OR APPROVED TENTATIVE MAP IF ANY.DATE: ROBERT WALKER, P.L.S. 7137 SUDLANEDRNIACALIFOLICENTEOFSTANo. 7137SRVEYOR
NOTARY ACKNOWLEDGMENTA NOTARY PUBLIC OR OTHER OFFICER COMPLETING THIS CERTIFICATE VERIFIES ONLY THEIDENTITY OF THE INDIVIDUAL WHO SIGNED THE DOCUMENT TO WHICH THIS CERTIFICATE ISATTACHED, AND NOT THE TRUTHFULNESS, ACCURACY, OR VALIDITY OF THAT DOCUMENT.STATE OF CALIFORNIACOUNTY OF }SS WITNESS MY HAND:SIGNATURE PRINTED NAME MY COMMISSION EXPIRES MY COMMISSION NO. MY PRINCIPAL PLACE OF BUSINESS IN COUNTY ON BEFORE ME, , NOTARY PUBLIC PERSONALLY APPEARED , WHO PROVED TO ME ON THE BASIS OF SATISFACTORY EVIDENCE TO BE THE PERSON(S) WHOSE NAME(S) IS/ARE SUBSCRIBED TO THE WITHIN INSTRUMENT AND ACKNOWLEDGED TO ME THAT HE/SHE/THEY EXECUTED THE SAME IN HIS/HER/THEIR AUTHORIZED CAPACITY(IES) AND THATBY 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 FOREGOINGPARAGRAPH IS TRUE AND CORRECT.

I HEREBY CERTIFY THAT ACCORDING TO THE RECORDS OF THE OFFICE, AS OF THIS DATE, THERE ARE NO LIENS AGAINSTTHE REAL PROPERTY SHOWN UPON THIS MAP FOR UNPAID STATE, COUNTY, MUNICIPAL OR LOCAL TAXES OR SPECIALASSESSMENTS COLLECTED AS TAXES, EXCEPT TAXES OR SPECIAL ASSESSMENTS NOT YET PAYABLE, ESTIMATED TO BE$ DATED: ENSEN MASONAUDITOR-CONTROLLER/TREASURER/TAX COLLECTORSAN BERNARDINO COUNTYBY: DEPUTY AUDITOR-CONTROLLER/TREASURER/TAX COLLECTOR'S CERTIFICATE:I HEREBY CERTIFY THAT A BOND IN THE SUM OF $ HAS BEEN EXECUTED AND FILED WITH THE BOARDOF SUPERVISORS OF SAN BERNARDINO COUNTY, STATE OF CALIFORNIA, CONDITIONED UPON PAYMENT OF ALL TAXES,(STATE, COUNTY, MUNICIPAL OR LOCAL), AND ALL SPECIAL ASSESSMENTS, COLLECTED AS TAXES, WHICH AT THE TIME OF THE FILING OF THIS MAP WITH THE SAN BERNARDINO COUNTY ASSESSOR-RECORDER-COUNTY CLERK ARE A LIEN AGAINSTSAID PROPERTY, BUT NOT YET PAYABLE; AND THAT THE SUBDIVIDER HAS FILED WITH ME A CERTIFICATE BY THE PROPEROFFICER GIVING HIS ESTIMATE OF THE AMOUNT OF SAID TAXES AND SPECIAL ASSESSMENTS; AND SAID BOND IS HEREBYACCEPTED.DATED: LYNNA MONELL,CLERK OF THE BOARD OF SUPERVISORSSAN BERNARDINO COUNTYBY: DEPUTY

BOARD OF SUPERVISORS' CERTIFICATE
THIS MAP HAS BEEN FILED UNDER DOCUMENT NUMBER , THIS DAY OF , 20 , AT .m.IN BOOK OF AT PAGE(S)AT THE REQUEST OF IN THE AMOUNT OF $ CHRIS WILHITEASSESSOR-RECORDERSAN BERNARDINO COUNTYDATE:BY:DEPUTY RECORDER

SAN BERNARDINO COUNTY RECORDER'S CERTIFICATE
NOTARY ACKNOWLEDGMENTA NOTARY PUBLIC OR OTHER OFFICER COMPLETING THIS CERTIFICATE VERIFIES ONLY THEIDENTITY OF THE INDIVIDUAL WHO SIGNED THE DOCUMENT TO WHICH THIS CERTIFICATE ISATTACHED, AND NOT THE TRUTHFULNESS, ACCURACY, OR VALIDITY OF THAT DOCUMENT.STATE OF CALIFORNIACOUNTY OF }SS WITNESS MY HAND:SIGNATURE PRINTED NAME MY COMMISSION EXPIRES MY COMMISSION NO. MY PRINCIPAL PLACE OF BUSINESS IN COUNTY ON BEFORE ME, , NOTARY PUBLIC PERSONALLY APPEARED , WHO PROVED TO ME ON THE BASIS OF SATISFACTORY EVIDENCE TO BE THE PERSON(S) WHOSE NAME(S) IS/ARE SUBSCRIBED TO THE WITHIN INSTRUMENT AND ACKNOWLEDGED TO ME THAT HE/SHE/THEY EXECUTED THE SAME IN HIS/HER/THEIR AUTHORIZED CAPACITY(IES) AND THATBY 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 FOREGOINGPARAGRAPH IS TRUE AND CORRECT.

I-15 LOGISTICS, LLC, A DELAWARE LIMITED LIABILITY COMPANYPATRICK DANIELS, (TITLE):DATECITY ENGINEER'S STATEMENT:

SUDLANEDRNIACALIFOLICENTEOFSTANo. 6867SRVEYOR IOSFESRORNIACALIFOREGISTEOFSTANo. 62296PNINEERTEREDALENG Exp. 09/30/24
AT THE REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF FONTANA, STATE OF CALIFORNIA, HELD ON THE DAY OF , 2024. SAID CITY COUNCIL APPROVED ON BEHALF OF THE CITY OF FONTANA THE ANNEXED MAP OF PARCEL MAP NO. 19712 AND ACCEPTED THE FOREGOING DEDICATIONS IN ACCORDANCE WITH THE CITY OF FONTANA STANDARDS AND HEREBY CERTIFIES THE ABANDONMENT AS DESCRIBED IN THE ABANDONMENT NOTEHEREON.ATTESTGERMAINE MCCLELLAN KEYACQUANETTA WARRENCITY CLERK, CITY OF FONTANAMAYOR, CITY OF FONTANA CITY OFFICIAL'S CERTIFICATE:

ABANDONMENT NOTE:PURSUANT TO SECTION 66434 (g) OF THE SUBDIVISION MAP ACT, THE FILING OF THIS MAP SHALL CONSTITUTEABANDONMENT OF PORTIONS OF THE EASEMENTS GRANTED TO THE CITY OF FONTANA AS SUCCESSOR IN INTEREST TO THE COUNTY OF SAN BERNARDINO FOR STREET AND PUBLIC UTILITY PURPOSES PER DOCUMENTS RECORDED MARCH 6, 1914 IN BOOK 545, PAGE 103 OF DEEDS, AND RECORDED JULY 18, 1934 IN BOOK 982, PAGE 158 OF OFFICIAL RECORDS, AND RECORDED FEBRUARY 3, 1978 IN BOOK 9361, PAGE 1431, ALL OF OFFICIAL RECORDS OF THE COUNTY OF SAN BERNARDINO,CALIFORNIA.

KREF LENDING III LLC, A DELAWARE LIMITED LIABILITY COMPANY, AS BENEFICIARY UNDER DEED OF TRUST RECORDED MAY 11, 2021, AS INSTRUMENT NO. 2021-0218979 OF OFFICIAL RECORDSNAME / TITLE:DATEBENEFICIARY STATEMENTI HEREBY STATE THAT I HAVE EXAMINED THIS MAP OF PARCEL MAP NO. 19712, THAT THE SUBDIVISION SHOWN HEREONIS SUBSTANTIALLY THE SAME AS IT APPEARS ON THE TENTATIVE MAP AND ANY APPROVED ALTERATIONS THEREOF,AND THAT ALL PROVISIONS OF THE SUBDIVISION MAP ACT AND ARTICLE I THROUGH III, CHAPTER 26, CODE OF THECITY OF FONTANA HAVE BEEN COMPLETED.DATED_______________________, 20_________________________________GIA LAM KIM, CITY ENGINEERRCE 62296CITY OF FONTANA CITY LAND SURVEYOR'S STATEMENT:I HEREBY STATE THAT I HAVE EXAMINED THE WITHIN MAP OF PARCEL MAP NO. 19712 CONSISTING OF 9 SHEETS; AND THAT I AM SATISFIED THAT THIS MAP IS TECHNICALLY CORRECT.DATED______________________, 20_______________________________________MICHAEL P. THORNTON, CITY LAND SURVEYORPLS 6867CITY OF FONTANA 272
IN THE CITY OF FONTANA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIABEING A SUBDIVISION OF A PORTION OF LOTS 11 AND 19 OF MAP SHOWING SUBDIVISION OF LANDS BELONGINGTO THE SEMI-TROPIC LAND AND WATER COMPANY, FILED IN BOOK 6, PAGE 12, RECORDS OF SAID COUNTY, ANDA PORTION OF SECTIONS 7 AND 18, TOWNSHIP 1 NORTH, RANGE 5 WEST, SAN BERNARDINO MERIDIANSHEET OF 9 SHEETSNUMBER OF PARCELS 2AREA = 74.795 ACRES GROSS71.319 ACRES NETPARCEL MAP NO. 19712DAVID EVANS AND ASSOCIATES,ROBERT WALKER, P.L.S. 7137JULY 2020 2 SIGNATURE OMISSIONS:THE SIGNATURES OF THE FOLLOWING INDIVIDUALS AND/OR ENTITIES HAVE BEEN OMITTED UNDER THE PROVISIONS OF SECTION 66436 OF THE SUBDIVISION MAP ACT, AS THEIR INTERESTS CANNOT RIPEN INTO FEE TITLE:SOUTHERN CALIFORNIA EDISON COMPANY, OWNER OF EASEMENTS FOR ELECTRICAL AND INCIDENTAL PURPOSES PER THE FOLLOWING DOCUMENTS, ALL OF OFFICIAL RECORDS OF THE COUNTY OF SAN BERNARDINO:BOOK 6658, PAGE 983 OF OFFICIAL RECORDS, RECORDED JULY 8, 1966.BOOK 6685, PAGE 850 OF OFFICIAL RECORDS, RECORDED AUGUST 24, 1966.BOOK 8540, PAGE 33 OF OFFICIAL RECORDS, RECORDED OCTOBER 21, 1974.BOOK 1242, PAGE 466, OFFICIAL RECORDS, RECORDED DECEMBER 20, 1937.BOOK 1243, PAGE 433 OF OFFICIAL RECORDS, RECORDED DECEMBER 20, 1937.BOOK 1484, PAGE 481, OFFICIAL RECORDS, RECORDED AUGUST 13, 1941.INSTRUMENT NO. 2006-0505779 OF OFFICIAL RECORDS, RECORDED JULY 26, 2006.INSTRUMENT NO. 2006-0505781 OF OFFICIAL RECORDS, RECORDED JULY 26, 2006.INSTRUMENT NO. 2007-0463940 OF OFFICIAL RECORDS, RECORDED AUGUST 9, 2007.INSTRUMENT NO. 2007-0463941 OF OFFICIAL RECORDS, RECORDED AUGUST 9, 2007.INSTRUMENT NO. 2022-0058688 OF OFFICIAL RECORDS, RECORDED FEBRUARY 11, 2022.INSTRUMENT NO. 2023-0153032 OF OFFICIAL RECORDS, RECORDED JUNE 21, 2023.THE COUNTY OF SAN BERNARDINO, OWNER OF RIGHTS OF WAY FOR PUBLIC ROAD PURPOSES PER THE FOLLOWINGDOCUMENTS, RECORDS OF THE COUNTY OF SAN BERNARDINO:BOOK 545, PAGE 103 OF DEEDS, RECORDED MARCH 06, 1914.BOOK 558, PAGE 251 (RE-RECORDED IN BOOK 890, PAGE 333) OF DEEDS, RECORDED MAY 29, 1925.BOOK 982, PAGE 158 OF OFFICIAL RECORDS, RECORDED JULY 18, 1934.BOOK 9361, PAGE 1431 OF OFFICIAL RECORDS, RECORDED FEBRUARY 3, 1978.FONTANA DEVELOPMENT COMPANY, OWNER OF AN EASEMENT RESERVED FOR WATER AND INCIDENTAL PURPOSES PER BOOK 370, PAGE 165 OF DEEDS, RECORDS OF SAN BERNARDINO COUNTY. RECORDED APRIL 24, 1906.THE LONGACRES MUTUAL WATER COMPANY, OWNER OF EASEMENTS RESERVED IN BOOK 340, PAGE 65, OFFICIAL RECORDSOF SAN BERNARDINO COUNTY. RECORDED MARCH 3, 1928.GEORGE F. BLACK, OWNER OF AN EASEMENT FOR WATER AND INCIDENTAL PURPOSES PER BOOK 731, PAGE 240 OF DEEDS,RECORDS OF SAN BERNARDINO COUNTY. RECORDED NOVEMBER 4, 1921.THE UNITED STATES OF AMERICA, OWNER OF A RIGHT OF WAY FOR DITCHES AND CANALS AS RESERVED IN PATENTRECORDED DECEMBER 13, 1881, IN BOOK B, PAGE 56 OF PATENTS. RECORDED DECEMBER 13, 1881.

BOUNDARY ESTABLISHMENT NARRATIVE:OUR INVESTIGATION INTO THE ESTABLISHMENT OF THE EXISTING BOUNDARY OF THE PROPERTY SUBDIVIDED BY THIS MAP, AND THE ADJACENT LYTLE CREEK ROAD ALIGNMENT LED TO A MONTHS-LONG INVESTIGATION INTO THE HISTORY OF THE SURVEYING AND BOUNDARY LINES IN THE AREA, IN ORDER TO DETERMINE THE MOST LIKELY LOCATION OF THE LINE BETWEEN LOTS 19 AND 20 OF "MAP SHOWING SUBDIVSION OF LANDS BELONGING TO THE SEMI-TROPIC LAND AND WATERCOMPANY" SURVEYED IN AUGUST 1887, RECORDED IN MAP BOOK 6, PAGE 12, RECORDS OF SAN BERNARDINO COUNTY. THIS INVESTIGATION RESULTED IN RESEARCH INTO SOURCES NOT NORMALLY AVAILABLE TO OR ACCESSED BY PRIVATESURVEYORS. THESE INCLUDED INTERNAL LOS ANGELES DEPARTMENT OF WATER AND POWER FIELD NOTES, SOUTHERNCALIFORNIA EDISON INTERNAL MAPPING, AND SAN BERNARDINO COUNTY SURVEY RECORDS NOT AVAILABLE ON THE RESEARCH WEBSITE.DURING THE COURSE OF THIS INVESTIGATION, IT BECAME CLEAR THAT WHILE THE MAP DEPICTS THE SOUTHWESTERLY LINE OF THE SUBDIVISION TO BE COINCIDENT WITH THE SOUTHWESTERLY LINE OF THE RANCHO MUSCUPIABE, IN ACTUALITY THE PORTION OF THE SUBDIVISION LINE IN THE VICINITY OF THIS MAP WAS MONUMENTED ALONG A LINE ROUGHLY 35' NORTHEASTERLY OF THE RANCHO LINE. SINCE THE LINE AS MONUMENTED FALLS INSIDE THE RANCHO, A GAP WAS THEREBY INADVERTENTLY CREATED.ACCORDING TO PENCIL NOTES ON COUNTY SURVEYOR MAP C.S. 1350, IN 1932 EDGAR T. HAM, LS 730, RETRACED A PORTIONOF RIVERSIDE AVENUE AND THE SOUTHWESTERLY LOT LINES IN THIS AREA, FINDING VARIOUS MONUMENTS OF CURRENTLYUNKNOWN ORIGIN, BUT APPARENTLY ACCEPTED AS DEFINING THE LINES AND CORNERS OF THE SUBDIVISION AT THE TIME.DURING HIS CAREER MR. HAM PERFORMED SURVEYS IN BOTH PRIVATE PRACTICE AND AS SAN BERNARDINO COUNTYSURVEYOR. IT APPEARS HE PERFORMED THE WORK RELEVANT TO THIS MAP AFTER HIS TERM AS COUNTY SURVEYOR HAD ENDED. THE PENCIL NOTES ON C.S. 1350 INDICATE THAT HE FOUND MONUMENTS AT THE SOUTHERLY CORNERS OF LOTS33/35, 23/25, 22/23 AND 21/22. HE THEN EXTENDED THE LINE FORMED BY THESE MONUMENTS NORTHWESTERLY BEYOND A STONE MOUND FOUND AT THE COMMON CORNER OF LOTS 21 AND 22, USING RECORD DISTANCES PER THE MAP, AND SET AN AXLE AT THE CENTERLINE OF THE 60' RIGHT OF WAY BETWEEN LOTS 19 AND 20, AS WELL AS AT THE WESTERLY CORNER OF LOT 19. (ACCORDING TO THE PENCIL NOTATIONS, THERE APPEARS TO HAVE BEEN A MISCALCULATION OF EXACTLY ONE LINK IN THE RECORD DISTANCE ALONG THE SOUTHWESTERLY LINE OF LOT 19: 629.64' = 9.54 CHAINS, VS. 9.55 CHAINS PER THE MAP.)THE PENCIL NOTES ALSO INDICATE THAT MR. HAM SIMULTANEOUSLY TIED INTO MONUMENTS SET BY GOVERNMENTSURVEYOR LEWIS H. CUTTING IN 1896 TO MARK THE RANCHO CORNER AND THE CLOSING CORNER OF THE LINE BETWEENSECTIONS 7 AND 18 ON THE RANCHO LINE. THE RANCHO CORNER IS DESIGNATED "M-42" ON VARIOUS GOVERNMENTSURVEYS PERFORMED IN THE LATE 1800'S AS WELL AS ON M.B. 6/12. IN 1896 MR. CUTTING PERFORMED A SURVEY OF THE SAN BERNARDINO FOREST RESERVE UNDER CONTRACT WITH THE UNITED STATES GOVERNNMENT. DURING THE COURSEOF HIS SURVEY HE FOUND AND REPLACED THE ORIGINAL M-42 CORNER MARKER WITH A 4X4 CAST IRON MONUMENT FILLEDWITH CONCRETE AND PRE-STAMPED WITH APPROPRIATE MARKINGS. HE ALSO SIMILARLY FOUND AND REPLACED THE CLOSING CORNER MONUMENT OF THE LINE BETWEEN SECTIONS 7 AND 18 WITH THE RANCHO LINE, ORIGINALLY SET BY GOVERNMENT SURVEYOR JOHN GOLDSWORTHY IN 1874. THE NEW MONUMENTS WERE MARKED AND REFERRED TO AS SBFR-61 AND SBFR-62, RESPECTIVELY.THE PENCIL NOTES ON C.S. 1350 SHOW THESE MONUMENTS WESTERLY OF THE SUBDIVISION LINE AS DEFINED BY THE FOUND MONUMENTS PREVIOUSLY DESCRIBED, AND AS PROJECTED NORTHWESTERLY BY MR. HAM. HOWEVER IN 1929 MR. HAM HAD ALSO PERFORMED A SURVEY OF LOTS 2, 3, 4, 5, 6, 11 AND 19 OF THE SUBDIVISION (R.S. 2/20) IN WHICH HE FOUNDAND ACCEPTED THE 4X4 IRON MONUMENTS AS REPRESENTING THE CORNER OF LOT 19 AND A POINT ALONG ITS SOUTHERLYLINE. COUNTY SURVEYOR MAPS CS-319 (1922) AND CS-406 (1925) ALSO SHOW THESE MONUMENTS AS REPRESENTING THESELOCATIONS. IT IS NOT CLEAR WHY MR. HAM DID NOT ACCEPT THE ORIGINAL GOVERNMENT MONUMENTS IN 1932 WHEN HE HAD ACCEPTED THEM THREE YEARS EARLIER, EXCEPT PERHAPS FOR THE SOMEWHAT DISTASTEFUL PROSPECT OF ANGLINGTHE SUBDIVISION LINE. BUT BY EXTENDING THE LINE PAST SURVEY MONUMENTS INSTEAD OF WORKING BETWEEN THEM,THE AXLES HE SET TO REPRESENT THE CORNER OF LOTS 19 AND 20, AS WELL AS THE WESTERLY CORNER OF LOT 19, WERENOT SET IN ACCORDANCE WITH STANDARD SURVEY PRACTICE.BECAUSE OF THE CONFUSION CREATED BY THE TWO SETS OF MONUMENTS, AND BECAUSE THE 4X4 IRON POSTS WERELATER DESTROYED AND THE LINE DEFINED BY THE AXLES PERPETUATED, PROBLEMS ARISE WITH INTERPRETING DEEDDESCRIPTIONS THAT WERE WRITTEN BASED ON THE ORIGINAL GOVERNMENT CORNERS, INCLUDING THE VESTING DEEDSFOR THE PROPERTIES EACH SIDE OF THE LINE BETWEEN LOTS 19 AND 20, AS WELL AS THE DESCRIPTIONS OF LYTLE CREEKROAD. THIS RESULTED IN AN APPARENT OVERLAP CREATED BY THE DEEDS FOR THE PROPERTIES EITHER SIDE OF THE LINE BETWEEN LOTS 19 AND 20 OF M.B. 6/12. FURTHER CONTRIBUTING TO THE CONFUSION WAS THE WORDING IN THESE DEEDS,WHICH REFER TO "THE EASTERLY LINE OF LOT 19." IT APPEARS THIS WAS VARIOUSLY INTERPRETED TO REFER TO THE NORTHWESTERLY RIGHT OF WAY LINE OF THE 60' RIGHT OF WAY, AND TO THE CENTERLINE OF THAT RIGHT OF WAY. FROM A CLOSE INSPECTION OF THE DISTANCES SHOWN ON M.B. 6/12, IT BECOMES CLEAR THAT THE DISTANCES THEREON ARE TO THE STREET CENTERLINES, NOT TO THE RIGHT OF WAY LINES, AS WOULD TODAY BE SHOWN. IN PERFORMING THIS SURVEY,WE HAVE ACCEPTED THE INTERPRETATION OF DEED CALLS TO THE LOT LINES TO BE TO THE CENTERLINE OF THE 60-FOOTRIGHT OF WAY, AND NOT TO ITS SIDELINES.IN FORMULATING MY FINAL OPINION AS TO THE LOCATION OF THE BOUNDARY LINE BETWEEN LOTS 19 AND 20, AND HENCETHE CENTERLINE OF THE 60' RIGHT OF WAY WHOSE CENTERLINE IS REPRESENTED BY THAT LINE, I HAVE PROPOSED THATTHE SUBDIVISION LINE AS PERPETUATED BY VARIOUS SURVEYS IN THE AREA IS NOT THE SAME LINE AS THE RANCHO LINE,AND THAT THERE IS A GAP BETWEEN THE TWO IN THIS AREA. THE EFFECT OF THIS DIFFERENCE IN LOCATION BETWEEN THESUBDIVISION AND RANCHO LINES ON OTHER PROPERTIES SOUTHEASTERLY ALONG THE RANCHO LINE FROM THE SUBJECTPROPERTY OF THIS MAP, AND ANY ATTEMPTED RESOLUTION OF THAT DIFFERENCE, IS BEYOND THE SCOPE OF THIS SURVEY.BECAUSE THE LINE BETWEEN MONUMENTS SBFR-61 AND -62 WAS ACCEPTED AS THE SOUTHWESTERLY LINE OF LOT 19BEFORE MR. HAM'S SURVEY WORK IN 1932 WITH NUMEROUS DEED DESCRIPTIONS HAVING BEEN WRITTEN BASED ON THISASSUMPTION (INCLUDING R5 & R7), I HAVE ACCEPTED THE RANCHO LINE AS DEFINING THE SOUTHWESTERLY LINE OF LOT 19.ALSO, SINCE MONUMENT SBFR-62 WAS NEVER PROVEN TO FALL ON THE RANCHO LINE AFTER ITS INITIAL PLACEMENT, ANDSINCE IT ACTUALLY APPEARS TO HAVE FALLEN SOUTHWESTERLY OF THE RANCHO LINE, I HAVE USED ITS POSITION ONLY ASA POINT OF REFERENCE TO DETERMINE THE BEGINNING POINTS OF DEED DESCRIPTIONS FOR THE PROPERTIES EACH SIDEOF THE LINE SEPARATING LOTS 19 AND 20, AS WELL AS FOR THOSE DEED DESCRIPTIONS CREATING THE LYTLE CREEK ROADRIGHT OF WAY. I ALSO USED ITS POSITION TO CALCULATE THE LOCATION OF THE COMMON QUARTER CORNER OF SECTIONS7 AND 18.BECAUSE THE SBFR-61 AND -62 MONUMENTS NO LONGER EXIST, FOR THE PURPOSES OF THIS SURVEY I DETERMINED THEIRPREVIOUS LOCATIONS BY USE OF SURVEY FIELD NOTES PERFORMED IN 1934 BY THE LOS ANGELES BUREAU OF POWER AND LIGHT (NOW THE CITY OF LOS ANGELES DEPARTMENT OF WATER AND POWER), ORIENTED TO THIS CURRENT SURVEY BY USE OF REFERENCES TO CORNERS COMMON TO BOTH. THE BOOK AND PAGE NUMBERS ARE REFERENCED AS (R8) HEREON. 273
L10 R&MAGREEMENT LINE PER O.R. 2491/324 & O.R. 6487/995ESTABLISHED PER (R1)(N0°18'56" W 726.32' R1) N89°46'51"E 2617.12'
R&M
R&MBASIS OF BEARINGS - (N89°46'51"E R1)
R& M
1217.79'556.67'
811.75'
L1 R&ML2 R&ML4 R&ML3 R&MR&ML5 R&ML6R&ML7R&MR&ML8 R&ML9 M(261.90' R1)N0°18'37"W 726.36'M C1L12C2L13L11R&MN39°16'09"W (RAD) 599.83'
N0°21'27"W371.75'Δ=5°42'35"R=8000.00'L=797.23'R&M
L21 R& M
L20165'
165'
175'175'175'175'165'165' N0°30'32"W 727.91' (727.75' R1) N0°35'30"E 2664.85'
C3
N55°33'57"E 800.14'
N30°48'38"E 509.38'271.65'(271.92' R2)659.34' (660' R2)60'30'30'25'5'30'VARIES20' 60'30'30'
C4C5N14°25'07"WPRC (RAD)N37°29'32"W (RAD)N41°51'37"WPRC (RAD) C6L14L15L16L17L18165.04'
L27
N89°55'46"W 2586.21'N89°46'39"E 2634.87'
S40°08'38"E (RAD)
N55°33'57"E 450.08'
N0°27'24"W 2651.38'24.91'R&M279.24'380.10'N53°45'57"W 3092.79'M&R 605.70'
N0°30'32"W 729.28'L59 R&MN2°00'15"E 586.92'315.90'R&ML38 R&M652.17'77.11' N53°53'36"W 527.73'S39°56'51"E (RAD)
N89°49'58"E 589.78'N89°37'25"E 585.08'
N62°30'12"E 456.31'N23°21'48"E 1935.62'N24°17'31"E 1958.70'600.95'1357.75'1935.53' (R1)M& (R5)(1960.1' R9)N25°59'45"E 1575.14'Δ=5°30'48"L=769.80' 40'5'
L19
R&MR&M271.02'R&M
CURVE DATA TABLELINE #C1DELTARADIUSLENGTHC2C3C4C5C603°21'25"522.50'30.61'13°23'51"572.50'133.87'34°53'29"622.50'379.08'27°26'30"399.50'191.34'04°22'05"800.50'61.03'16°47'03"627.50'183.82' LINE TABLELINE #L1L2L3BEARINGN55°33'57"EN34°26'03"WDISTANCE225.08'55.00'L4N55°33'57"E100.02'L5N34°26'03"W45.00'L6N89°26'51"W122.08'L7N55°33'57"E50.01'L8N34°26'03"WL970.00'N52°42'15"E200.30'N55°33'57"EL10261.98'L11N35°04'32"W55.93'N89°29'28"E6.00'L12L13L14N54°05'16"E37.58'L15N40°41'24"E187.67'L16L17L18L19L20L21N30°12'12"E144.14'N01°17'12"E16.31'N15°49'12"E144.20'N38°07'12"E197.91'N53°53'36"W53.43'N36°33'12"E123.99'N61°10'50"W366.77'N84°57'13"W96.85'L27N24°14'05"W32.35'L38N89°29'28"E312.14'L59N45°30'08"E458.70' IN THE CITY OF FONTANA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIABEING A SUBDIVISION OF A PORTION OF LOTS 11 AND 19 OF MAP SHOWING SUBDIVISION OF LANDS BELONGINGTO THE SEMI-TROPIC LAND AND WATER COMPANY, FILED IN BOOK 6, PAGE 12, RECORDS OF SAID COUNTY, ANDA PORTION OF SECTIONS 7 AND 18, TOWNSHIP 1 NORTH, RANGE 5 WEST, SAN BERNARDINO MERIDIANSHEET OF 9 SHEETSNUMBER OF PARCELS 2AREA = 74.795 ACRES GROSS71.319 ACRES NETPARCEL MAP NO. 19712DAVID EVANS AND ASSOCIATES,ROBERT WALKER, P.L.S. 7137JULY 2020 GRAPHIC SCALE01"=300'225'600'300'150'75'
3SIERRA AVENUECOYOTE CANYON ROAD
I-15 STATE HIGHWAY
EAST 1/4 COR. SEC. 18FD 1" I.P. COUNTYSURVEYOR MONUMENTCENTER 1/4 CORNERSECTION 18ESTABLISHED PER (R1)NOTHING FOUND OR SETSOUTH LINE NORTH HALF SECTION 18 NORTHWEST CORNER SEC. 18FD. 4"x4" CAST IRON POST PER (R1)

1.THE BASIS OF BEARINGS IS TAKEN FROM THE SOUTHERLY LINE OF THE NORTHEAST QUARTER OF SECTION 18, T1N, R5W, S.B.M. PER RECORD OFSURVEY 00-100, BOOK 114/79-80, BEING NORTH 89°46'51" EAST.2.INDICATES FOUND 1" IRON PIPE, LS 7378, PER (R1) UNLESS OTHERWISE NOTED.3.INDICATES SET 1" IRON PIPE, SPIKE AND WASHER, OR LEAD, TACK AND TAG, STAMPED "L.S. 7137" AS APPROPRIATE FOR SPECIFIC SITE CONDITIONS.4.DESTROYED MONUMENTS; POSITIONS RE-ESTABLISHED PER (R8).5.(N00°00'00"E/0.00' R#)INDICATES RECORD DATA PER REFERENCE DOCUMENT NUMBER NOTED.6.R&MINDICATES RECORD AND MEASURED DATA RECORD OF SURVEY 00-100, BOOK 114/79-80.7.CFCALCULATED FROM8.U.O.N.UNLESS OTHERWISE NOTED9.FDFOUND10.SFNFSEARCHED FOR, NOT FOUND11.LABPLCITY OF LOS ANGELES BUREAU OF POWER AND LIGHT SURVEYOR'S NOTES:

N0°32'33"W 1184.82' R&M
WEST LINE NW 1/4 SECTION 18
EAST LINE NE 1/4 SECTION 18
THIS PORTION OF SW'LYLINE OF MB 06/12 PER (R1)NOT ACCEPTED FORSW'LY LINE LOT 19 REFERENCES(R1) - RECORD OF SURVEY 00-100, BOOK 114/79-80(R2) - MAP BOOK 6, PAGE 12(R3) - RECORD OF SURVEY BOOK 74/73-75(R4) - RECORD OF SURVEY 20-00289, BOOK 171/71(R5) - BOOK 9191, PAGE 1762, O.R.(R6) - SAN BERNARDINO COUNTY SURVEYOR MAP CS-3089(R7) - BOOK 6751, PAGE 138, O.R.(R8) - CITY OF LOS ANGELES BUREAU OF POWER AND LIGHT FIELD BOOK 407, PAGES 67-70 (C. 1934)(R9) - RECORD OF SURVEY BOOK 2, PAGE 20(R10) - SAN BERNARDINO COUNTY SURVEYOR'S FIELD BOOK 135, PAGE 32(R11) - SAN BERNARDINO COUNTY SURVEYOR MAP CS-406(R12) - MAP BOOK 7, PAGE 23(R13) - SAN BERNARDINO COUNTY SURVEYOR MAP CS-3067(R14) - SAN BERNARDINO COUNTY SURVEYOR MAP CS-1350(R15) - 1898 US GLO PLAT T 1 N, R 5 W, SBM (PORTION) (SURVEYED BY GEORGE H. PERRIN)(R16) - 1937 US GLO PLAT T 1 N, R 5 W, SBM (PORTION)(R17) - BOOK 8035, PAGE 843, O.R.(R18) - RECORD OF SURVEY BOOK 41, PAGES 71-81(R19) - RECORD OF SURVEY BOOK 51, PAGES 90-104(R20) - RECORD OF SURVEY BOOK 72, PAGES 12-18(R21) - BOOK 9361, 1431 OFFICIAL RECORDS(R22) - BOOK 982, PAGE 158 OFFICIAL RECORDS(R23) - BOOK 890, PAGE 333 OF DEEDS(R24) - PARCEL MAP NO. 15039, PARCEL MAP BOOK 190, PAGES 37-39SECTION 18

OVERALL BOUNDARY ESTABLISHMENT SHEET
FOUND AXLE IN ROCKMOUND PER O.R.2491/3241" I.P. PER(R1) SFNF FOUND 1" I.P. & CAP LS7635 NO REF;ACCEPTED AS 1" IP CSM PER (R1) 1" I.P. PER(R1) SFNF
1" I.P. PER(R1) SFNFFOUND 1.5" I.P. PER (R1)
WEST 1/4 COR. SEC. 18FD 1" I.P. PLUG ILLEGIBLEACCEPTED AS CALDOT I.P.PER (R1) REMAINDER~ NOT A PART
NW'LY LINE LOTS 11 & 19OF MB 6/12 EST'D ASSHOWN HEREON.SECTION 7NORTHWESTERLY RIGHT OFWAY LINE OF I-15 FREEWAYESTABLISHED PER (R1)MONUMENTS PER CALTRANSMONUMENTATION MAPS SFNF REMAINDER~
LOT 20LOT 21
POSITION OF SBFR-62 ESTABLISHEDPER (R8); ACCEPTED FOR DIRECTIONOF N. LINE NE 1/4 SEC. 18(SEE DETAIL "A" ON SHEET 4 OF 9) POSITION OF SBFR-61 (M-42)ESTABLISHED PER (R8) (SEEDETAIL "A" ON SHEET 4 OF 9) LYTLE CREEK ROAD - EST'D PER (R21)ANGLE PT. C/L 40' R/W LYTLECREEK ROAD - FD 5/8" REBARPER (R4), DOWN 0.3' C/L-C/L EST'D 25.00' ATRIGHT ANGLES FROM C/L40' R/W LYTLE CREEK ROADC/L 60' R/WC/L 40' R/W C/L-C/L SIERRA & 40' R/WLYTLE CREEK ROAD - FD.SPIKE & WASHER PER(R4), FLUSHORIGINAL CORNER M-43OF (R2) - FD. 4X4 IRONPOST LEANING NW'LY;LOCATED AT BASE.

LOT 23LOT 25(212.51' CF R3)
NW'LY LINE LOTS 11&19OF MB 6/12 PER (R1)NOT ACCEPTEDPORTION OF LYTLE CREEKROAD EST'D PER (R23) ~ SEE SHEET 7
SEE SHEET 5
REMAINS OF STONE DITCH.CORRESPONDS TO LOCATION OFSTONE DITCH SHOWN ON (R10) & (R11)FORD AXLE SET BY E.T. HAM IN 1932 FOR C/L 60'R/W & CORNER LOTS 19 & 20, PER (R13) SFNF;EST'D ON FALSE RANCHO LINE PER (R1) 24.91'SW'LY THEREON FROM CLOSING CORNER ASSHOWN ON (R1); USED TO PRORATE ORIGINALLOT CORNERS SOUTHEASTERLY.NORTH LINE OF NW 1/4 SECTION 18ESTABLISHED AS SHOWN INDETAIL "E" ON SHEET 7 LOT 11LOT 19ORIGINAL LINE BETWEEN LOTS 11 & 19;NOT DIMENSIONED FOR MAP CLARITY(NOT A CURRENT PROPERTY LINE)LOT 21LOT 22 W. LINE NE 1/4 SEC. 18
1318.68' (1320' R2)FD. 1"IP ILLEG.; ACCEPTED AS1"IP RCE 9101 PER (R20).GOVERNMENTLOT 1SEE DETAILS "B" & "J"ON SHEET 4SEE DETAILS "A"& "C" ON SHEET 4L21N. LINE SEC. 18 PER (R1)NOT ACCEPTEDN0°30'32"W38.50' SEE SHEET 6

LYTLECREEKROAD
S14°54'49"E (RAD)S31°41'52"E (RAD)
N0°30'32"W 727.91' M (727.75' R1)13.34'35.71'40.53' M599.83' MC1 ML11DETAIL "F"NOT TO SCALE SEE DETAIL "F"HEREON
N53°53'36"WSW'LY SUBDIVISIONLINE OF (R2)N0°26'53"W 1824.22'(IDENTICAL POINT)FD. BRASS DISC IN WELLSTAMPED "D.O.T. 2015"NO REF; ACCEPTED ASREPLACEMENT FOR 1"PER (R20)N24°14'05"W 2074.05' GOV'T LOT 7N. 1/4 COR. SEC. 18(SEE DETAIL "E" ONSHEET 7 SEE DETAIL "G"ON SHEET 6
SW'LY LINE RANCHOMUSCUPIABE - EST'D LINEFROM M-41 (SEE SHEET 5OF 9) TO M-42 (SHOWN ONTHIS SHEET)1156.93' 5' STRIP RESERVED BY THEFONTANA COMPANY IN DEEDRECORDED 09/15/1913 IN DEEDBOOK 540, PAGE 33

89.58' MN45°30'08"E458.70'
ALL DETAIL "F"DIMENSIONS ARE R&MUNLESS OTHERWISE NOTED
PARCEL "D"OF (R1)
274
LINE TABLELINE #BEARINGDISTANCEL37N25°59'45"E8.60'CURVE DATA TABLELINE #DELTARADIUSLENGTH03°21'25"522.50'30.61'C3100°11'47"8000.00'27.43' IN THE CITY OF FONTANA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIABEING A SUBDIVISION OF A PORTION OF LOTS 11 AND 19 OF MAP SHOWING SUBDIVISION OF LANDS BELONGINGTO THE SEMI-TROPIC LAND AND WATER COMPANY, FILED IN BOOK 6, PAGE 12, RECORDS OF SAID COUNTY, ANDA PORTION OF SECTIONS 7 AND 18, TOWNSHIP 1 NORTH, RANGE 5 WEST, SAN BERNARDINO MERIDIANSHEET OF 9 SHEETSNUMBER OF PARCELS 2AREA = 74.795 ACRES GROSS71.319 ACRES NETPARCEL MAP NO. 19712DAVID EVANS AND ASSOCIATES,ROBERT WALKER, P.L.S. 7137JULY 2020 4 LOT 19LOT 20(LOT 19 PER HAM)(LOT 20 PER HAM)SBFR-62 PER DETAIL "A"HEREON - NOT ONRANCHO LINE SW'LY LINE LOT 19 PER (R9) - FALLS SW'LY OFRANCHO LINE; USED TO ESTABLISH COMMONLINE LOTS 19 & 20 AS SHOWN HEREON.M-42 / SBFR-61PER DETAIL "A"HEREONRANCHO LINE &SW'LY LINE (R2)RANCHO LINE & NW'LY LINE (R2)PERPETUATED THROUGH (R1),NOT ACCEPTEDSW'LY LINE (R2) AS EST'D PER E.T.HAM IN 1932 AND PERPETUATEDTHROUGH (R1), NOT ACCEPTEDLOCATION OF AXLE SET BYHAM - USED TO PRORATECORNER LOTS 21 & 22; NOTACCEPTED AS LOT CORNER LOT 20 (PER HAM)LOT 21 (PER HAM)
N53°10'48"W 679.77' (679.2' R9)N53°53'36"W 673.13' (677.2' R5)603.27' (602.7' R9)76.50'M(R7)(R9) 659.34' (660' R2)
TO M-43LOT 19LOT 20TO M-41 (SEESHEET 5)271.65' (271.92' R2)30'60'30'25'5'CLPL PLPL DETAIL "B" - COMMON LINE LOTS 19 & 20 ESTABLISHMENTNOT TO SCALE LOCATION OF AXLE SET BY E.T. HAMIN 1932 AND LATER PERPETUATEDBY VARIOUS SURVEYS THROUGH(R1); NOT ACCEPTEDSEC. 7SEC. 18N24°17'31"E 1958.70'N23°21'48"E 1935.62'TO M-43N53°45'57"W 605.70' R&MN89°49'58"E 589.78'577.08'12.70'(N89°37'25"E R1)(585.08' R1) R&MSEC. LINE PER (R1)NOT ACCEPTEDC.C. PER (R1)FD. 1"IP PER(R1)NOT ACCEPTEDN53°45'57"W 219.82'180.19' 170.19'N53°45'57"W 219.81'
145.30'N36°14'03"E 300.00'13.54'112.82'28.34'N36°14'03"E 300.00' N36°14'03"E 300.00'N36°14'03"E 300.00'
159.91'13.65'98.15'28.29'272.11'20.65'7.24'27.85'272.15'

19.81'

19.81' 19.81'

10.00'9.81'10.00'
577.08'N89°49'58"E 636.89' (637'± R17)12.70'47.11'
N53°53'36"W19.81'132.50'19.58'28.10'19.81'SEC. LINE ASEST'D HEREONNW'LY LINE (R17)(R17) PER (R1)NOT ACCEPTED SW'LY LINE (R17)
(R17) PER (R1)NOT ACCEPTED1/4 COR.SECS 7 & 18SEC.LINE PER (R1)NOT ACCEPTED SE'LY LINE (R17)RANCHO LINE ASEST'D HEREONRANCHO LINE ASEST'D PER (R1)NOT ACCEPTED EST'D 10' SE'LY ALONGFALSE RANCHO LINE FROMPROD OF N. SEC. LINE (FITSEX. FENCE CORNER) FD. MON.PER (R1) -TYP.N89°37'25"E 236.70' R&M
DETAIL "C" - (R17) ESTABLISHMENTNOT TO SCALE

EXISTING BOUNDARY ESTABLISHMENT DETAILS

RANCHO LINE
DETAIL "A" - TRIANGULATIONESTABLISHMENT OF CORNERSSBFR-61 (M-42) AND SBFR-62 PER (R8)NOT TO SCALEN26°18'59"E (1793.24' CF R8)(444.79' CF R8)(470.71' CF R8)(263.09' CF R8)(877.74' CF R8) N89°55'46"W 2586.21'N89°57'08"W (1417.21' CF R18 & R19)N00°35'30"E N82°47'39"E (1877.54' CF R8)N89°49'58"E 589.78'577.08'N37°53'36"W (1738.41' CF R8)N24°17'31"E 1958.70'M-43 NW COR.SEC.18REFERENCE LINEPER (R18)&(R19)
WEST LINENW 1/4 SEC.18
N51°58'06"W(992.77' CF R8)N79°09'31"W(1008.66' CF R8)C/L S'LY ALIGNMENTPER (R18)&(R19) N53°53'36"W613.46'12.70'1/4 COR.SECS 7 & 18N53°10'48"W(603.27'CF R8)SBFR-62RANCHO LINEM-42SBFR-61 N25°59'45"E 1575.14'N25°59'45"E 2553.72'TO C/L SIERRA AVENUE(SEE SHEET 6) C.C. EST'D BYINTERSECTION5.08'SEC. LINE EST'DPER DETAIL "E" ONSHEET 7 L37N53°53'36"WERRONEOUS LOCATION OF S'LY COR. LOTS 19 & 20 AND OF C/L60' R/W PER (R4), (R6), (R7), (R9) & (R11); THESE REFERENCESESTABLISHED THIS LOCATION BASED ON THE ASSUMPTION THATTHE 4X4 POST SBFR-62 FELL ON THE RANCHO LINE, BUT THATASSUMPTION WAS NEVER PROVEN OUT; LOCATION ACCEPTEDHEREON AS SW'LY PROLONGATION OF LINE OF LOTS 19 & 20 OF(R2) AND OF C/L 60' R/W (2664.85' R18)2664.84'W. 1/4 COR. SEC.18
5'CLN25°59'45"E 1575.14'
CLOSINGCORNERDENOTES TRIANGULATION LINE PER (R8)
(N89°51'25"E 2622.05' R1)TO NW COR. SEC. 18N89°55'46"W 2586.21'TO NW COR. SEC. 18N74°49'57"E37.20'N. 1/4 COR. PER (R1) -FD. 2"IP WITH BRASS TAGSTAMPED LS 7378N74°49'57"E 37.20' OF COR.;NOT ACCEPTEDN00°27'24"W 2651.38' 613.46'59.67'
N53°45'57"W1531.19'
LOT 21LOT 22
LOT 19LOT 20S40°08'38"E(RAD)S39°56'51"E(RAD)N53°45'57"WC31R&MΔ=05°30'48"Δ=05°42'35"L=769.80'R=8000.00' 1531.19'1318.68'20 CH (R3)27.89'1934.50'N00°32'33"W 1184.82'N00°26'53"W 1824.22'1156.93' RANCHO LINE N53°53'36"WFD. 1" IP &CAP LS 7635(SEE SHEET 3)SW'LY LINE (R2)FD. 1"IP ILLEG.; ACCEPTEDAS 1"IP RCE 9101 PER (R20)SW'LY LINE (R2) AS EST'D BYE.T. HAM, NOT ACCEPTED DETAIL "J"NOT TO SCALEI-15 STATE HWY.PLPLCL
380.10'
LOT 23LOT 25
GAP BETWEEN RANCHOLINE & SUBDIVISIONLINE AS MONUMENTED212.51'CF (R3)EST'DPER (R3)5' STRIP RESERVED BY THEFONTANA COMPANY INDEED RECORDED 09/15/1913IN DEED BOOK 540, PAGE 33LOT 21LOT 22PL5'5.08'N53°53'36"W527.73'522.65' N53°45'57"W
123 4(64°12'35" R8)ANGLE TABLE#(ANGLE PER R8)1(78°17'05" R8)(74°31'30" R8)(56°28'40" R8)234 L=797.23'
SBFR-62
C/L 60' RW PER (R2)
REFERENCES(R1) - RECORD OF SURVEY 00-100, BOOK 114/79-80(R2) - MAP BOOK 6, PAGE 12(R3) - RECORD OF SURVEY BOOK 74/73-75(R4) - RECORD OF SURVEY 20-00289, BOOK 171/71(R5) - BOOK 9191, PAGE 1762, O.R.(R6) - SAN BERNARDINO COUNTY SURVEYOR MAP CS-3089(R7) - BOOK 6751, PAGE 138, O.R.(R8) - CITY OF LOS ANGELES BUREAU OF POWER AND LIGHT FIELD BOOK 407, PAGES 67-70 (C. 1934)(R9) - RECORD OF SURVEY BOOK 2, PAGE 20(R10) - SAN BERNARDINO COUNTY SURVEYOR'S FIELD BOOK 135, PAGE 32(R11) - SAN BERNARDINO COUNTY SURVEYOR MAP CS-406(R12) - MAP BOOK 7, PAGE 23(R13) - SAN BERNARDINO COUNTY SURVEYOR MAP CS-3067(R14) - SAN BERNARDINO COUNTY SURVEYOR MAP CS-1350(R15) - 1898 US GLO PLAT T 1 N, R 5 W, SBM (PORTION) (SURVEYED BY GEORGE H. PERRIN)(R16) - 1937 US GLO PLAT T 1 N, R 5 W, SBM (PORTION)(R17) - BOOK 8035, PAGE 843, O.R.(R18) - RECORD OF SURVEY BOOK 41, PAGES 71-81(R19) - RECORD OF SURVEY BOOK 51, PAGES 90-104(R20) - RECORD OF SURVEY BOOK 72, PAGES 12-18(R21) - BOOK 9361, 1431 OFFICIAL RECORDS(R22) - BOOK 982, PAGE 158 OFFICIAL RECORDS(R23) - BOOK 890, PAGE 333 OF DEEDS(R24) - PARCEL MAP NO. 15039, PARCEL MAP BOOK 190, PAGES 37-39N25°59'45"E 2553.72'28.26'2525.46'N53°45'57"W534.18'

11.63'5.08'254.94'28.27'28.26'24.91'
275
N89°24'44"E 2642.76'
788.92'EST'D M-40 BYPRORATION PERRS112/47-54
NE COR. SEC. 6,T 1 S, R 4 W,ESTABLISHED FROMFOUND TIES PERCORNER RECORD 214/84NW COR. SEC. 6,T 1 S, R 4 W, FD.S.B. CO.SURVEYOR MON.PER CS-7061EST'D AT RECORD DISTANCE(69.96' /1.06 CHAINS) ALONGSECTION LINE FROM NW SECTIONCORNER PER CS-7061 EST'D M-41 AT RECORDDISTANCE (874.35') FROMNW PER CS-7061 FD 3/4" IP UNDER PAVEMENT,DISTURBED; PRESUMED TO BE1/2" IP OVER 2" IP PER CS-7061;0.40' NE'LY OF LINE USED TOESTABLISH M-41 LOCATION LARGE 3/4" IP WITH BRASS PLATEPER CS-7061 SFNF; FD. 2"IP, OPEN,UP 0.3' AND LEANING; ACCEPTEDAS POINT ON N-S CENTERQUARTER SECTION LINE 0.82'N'LY OF E-W CENTER QUARTERSECTION LINE AS ESTABLISHEDFROM FOUND MONUMENTS INETIWANDA AVENUE TO WESTSHOWN HEREON.

69.96'N53°53'36"W 40,285.42'
2441.30'
156.73' M(157.81' MB 157/47-48)
N0°32'25"W 2654.03'
SW LINE RANCHO MUSCUPIABE(EST'D FROM M-41 TO M-42/SBFR61AS SHOWN HEREON)LINE USED TOESTABLISH M-41LOCATION PER CS-7061 FOUND 1"IP & TAG ILLEGIBILE, DOWN0.2' ACCEPTED AS 1"IP & TAG LS2722 PER CORNER RECORD 240/057;PK & CITY WASHER PER SAME SFNF1455.74' 362.30'667.99'FOUND OPEN 1"IP, FLUSH,ACCEPTED AS 1" IP PERTRACT NO. 8230 MB 154/87-88FOUND 1"IP & CAP ILLEGIBLE, FLUSH,NO REF. ACCEPTED AS 1" IP PERTRACT NO. 10043 MB 157/47-48FOUND 1"IP & CAP ILLEGIBLE,FLUSH, NO REF. ACCEPTEDAS 1" I.P. PER TRACT NO.10043 MB 157-47-48 SE COR. SEC. 6, T 1 S,R 4 W - FD. SB CO.SURVEY MON. PERRS112/47-542848.86'N3°44'25"E 5290.16'(5290.37' RS 112/47-54) (1760.76' CS-7061)(2848.97' RS 112/47-54)
5223.99'N89°44'28"E 5293.95'(5293.01' CF CS-7061)874.35' 3184.40'N54°29'56"W 4058.75'(4057.00' CS-7061)
(790.15' CF RS 6/34)
N88°11'38"W 1761.30'
777.90'N0°23'12"W
(2441.40' RS 112/47-54)
IN THE CITY OF FONTANA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIABEING A SUBDIVISION OF A PORTION OF LOTS 11 AND 19 OF MAP SHOWING SUBDIVISION OF LANDS BELONGINGTO THE SEMI-TROPIC LAND AND WATER COMPANY, FILED IN BOOK 6, PAGE 12, RECORDS OF SAID COUNTY, ANDA PORTION OF SECTIONS 7 AND 18, TOWNSHIP 1 NORTH, RANGE 5 WEST, SAN BERNARDINO MERIDIANSHEET OF 9 SHEETSNUMBER OF PARCELS 2AREA = 74.795 ACRES GROSS71.319 ACRES NETPARCEL MAP NO. 19712DAVID EVANS AND ASSOCIATES,ROBERT WALKER, P.L.S. 7137JULY 2020 5 GRAPHIC SCALE01"=400'300'800'400'200'100'
N53°53'36"W40,285.42'6.46'MN54°29'56"W 4058.75'8.93'M(8.90' CS-7061)11.02' SEE DETAIL "D" HEREON
DETAIL "D"N.T.S.

SW LINE RANCHO MUSCUPIABE(EST'D FROM M-41 TO M-42/SBFR61AS SHOWN HEREON)FD 1.5" IP OPEN, DOWN 1.0';ACCEPTED AS LOCATION OF OLD 1"IPPER RS6/34 AS SHOWN ON CS-7061LINE USED TO ESTABLISH M-41LOCATION PER CS-7061 M&CS-7061
SEE SHEET 3
777.90'(6.45' CS-7061)
TO M-42 / SBFR-61
(4057.00' CS-7061)3184.40'873.28'
EXISTING BOUNDARY DETAIL - ESTABLISHMENT OFCORNER M-41 OF RANCHO MUSCUPIABE

BASELINE ROAD

MERIDIAN AVENUE

ETIWANDA AVENUE
REFERENCES(R1) - RECORD OF SURVEY 00-100, BOOK 114/79-80(R2) - MAP BOOK 6, PAGE 12(R3) - RECORD OF SURVEY BOOK 74/73-75(R4) - RECORD OF SURVEY 20-00289, BOOK 171/71(R5) - BOOK 9191, PAGE 1762, O.R.(R6) - SAN BERNARDINO COUNTY SURVEYOR MAP CS-3089(R7) - BOOK 6751, PAGE 138, O.R.(R8) - CITY OF LOS ANGELES BUREAU OF POWER AND LIGHT FIELD BOOK 407, PAGES 67-70 (C. 1934)(R9) - RECORD OF SURVEY BOOK 2, PAGE 20(R10) - SAN BERNARDINO COUNTY SURVEYOR'S FIELD BOOK 135, PAGE 32(R11) - SAN BERNARDINO COUNTY SURVEYOR MAP CS-406(R12) - MAP BOOK 7, PAGE 23(R13) - SAN BERNARDINO COUNTY SURVEYOR MAP CS-3067(R14) - SAN BERNARDINO COUNTY SURVEYOR MAP CS-1350(R15) - 1898 US GLO PLAT T 1 N, R 5 W, SBM (PORTION) (SURVEYED BY GEORGE H. PERRIN)(R16) - 1937 US GLO PLAT T 1 N, R 5 W, SBM (PORTION)(R17) - BOOK 8035, PAGE 843, O.R.(R18) - RECORD OF SURVEY BOOK 41, PAGES 71-81(R19) - RECORD OF SURVEY BOOK 51, PAGES 90-104(R20) - RECORD OF SURVEY BOOK 72, PAGES 12-18(R21) - BOOK 9361, 1431 OFFICIAL RECORDS(R22) - BOOK 982, PAGE 158 OFFICIAL RECORDS(R23) - BOOK 890, PAGE 333 OF DEEDS(R24) - PARCEL MAP NO. 15039, PARCEL MAP BOOK 190, PAGES 37-39 276
30'
30'
20'VAR.

EST'D AT INTERSECTION OF S'LYRIGHT OF WAY LINE PRODUCEDNE'LY WITH 5' OFFSET LINE FROMC/L 60' R/W AS EST'D HEREON 60' R/W PER (R2)
EX. PUBLIC R/WTO REMAIN
N62°30'12"E 452.93'
60'
30'30'60'
L27
30'60'30'
45'55'
90'35'55'
104'35'69'
N24°14'05"W 2106.40'
N26°22'49"E 983.73'30'
20'VAR.

N24°15'04"W 495.88'
30'
N25°59'45"E 1575.14'N62°30'12"E 456.31'414.29'
N25°59'45"E 420.82'
40'5'
5'
N25°59'45"E 2553.72'(TO RANCHO LINE)
2074.05'
S64°00'15"E RAD)
L27N24°14'05"W32.35'CURVE DATA TABLELINE #DELTARADIUSLENGTH03°21'25"522.50'30.61' LINE TABLELINE #BEARINGDISTANCEN15°49'12"E142.50'L28L34L36L37L35N30°12'12"E150.00'N38°07'12"E190.00'N01°17'12"E162.06'N25°59'45"E8.60'N89°29'28"E312.14'L54N36°33'12"E120.15'L55N82°02'12"E247.79'L56N62°30'12"E452.93' C2280°45'00"200.00'281.87'
IN THE CITY OF FONTANA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIABEING A SUBDIVISION OF A PORTION OF LOTS 11 AND 19 OF MAP SHOWING SUBDIVISION OF LANDS BELONGINGTO THE SEMI-TROPIC LAND AND WATER COMPANY, FILED IN BOOK 6, PAGE 12, RECORDS OF SAID COUNTY, ANDA PORTION OF SECTIONS 7 AND 18, TOWNSHIP 1 NORTH, RANGE 5 WEST, SAN BERNARDINO MERIDIAN SHEET OF 9 SHEETSNUMBER OF PARCELS 2AREA = 74.795 ACRES GROSS71.319 ACRES NETPARCEL MAP NO. 19712 DAVID EVANS AND ASSOCIATES,ROBERT WALKER, P.L.S. 7137JULY 2020 6 GRAPHIC SCALE01" = 100'
75'200'100'50'25'

COYOTE CANYON ROAD

SIERRA AVENUE
CL
CL
SEE SHEET 3
C/L-C/L SIERRA & 40' R/WLYTLE CREEK ROAD - FD.SPIKE & WASHER PER(R4), FLUSH ANGLE PT. C/L 40' R/W LYTLECREEK ROAD - FD 5/8" REBARPER (R4), DOWN 0.3' C/L-C/L SIERRA AVENUE & 60' R/WLYTLE CREEK ROAD - NOTHINGFD; EST'D 25.00' SE'LY AT RIGHTANGLES FROM C/L 40' R/W PER(R6); S&W LS7137 TO BE SET C/L 40' R/W - EST'D FROM FD.MONS. AS SHOWN HEREON
C/L 60' R/W EST'D AT N'LY ANDS'LY TERMINI AS SHOWN HEREON EXISTING BOUNDARY DETAIL - ESTABLISHMENT OFNORTHERLY PORTION OF 60' RIGHT OF WAY GLEN HELEN PARKWAYCLFD. S.B. CO. SPIKE &WASHER PER (R4) FD. BRASS DISC IN WELLSTAMPED "D.O.T. 2015"NO REF; ACCEPTED ASREPLACEMENT FOR 1"PER (R20) SEE SHEET 3
DETAIL "G" - ESTABLISHMENT OF (R5) & (R21)NOT TO SCALE EST'D AT RECORD DEEDDISTANCE ALONG RANCHOLINE FROM SBFR-61 PER (R5) SEE DETAIL "G"HEREON
600.95'M&(R5)N24°17'31"E 1958.70' (1960.1' R9)
CL
N53°10'48"W 679.77' (679.2' R9)113.27'
(490.00' M & (R6, R21 & R22)

76.50'(R7)&(R9)
N53°53'36"W 673.13' (677.2' R5)L54M&(R21)118.74'1.41'L28M&(R21) L36M&(R21)L35M&(R21)L34M&(R21)
C22M&(R21)
L55M&(R21)
L56 (453.60'R21)
N26°22'49"E 983.73'20'VAR.
30'30'60'
30'30'60'N61°10'50"W 366.77' (347.41' R5)
N30°48'38"E 509.38' (526.54' R5)
N62°30'12"E 456.31' (448.13' R5)
1357.75'
CL
ANGLE PT. C/L 40' R/WLYTLE CREEK ROAD -FD 5/8" REBAR PER (R4),DOWN 0.3'NW'LY LINE LOTS 11 & 19OF MB 6/12 EST'D ASSHOWN HEREON.

DUE TO INACCURACIES IN DEED DESCRIPTIONCONTAINED IN (R5), THESE LINES ESTABLISHEDPER EXISTING OLD CHAIN-LINK FENCE LINES,WHICH APPROXIMATELY CORRESPOND TO THEDEED LINES IN LOCATION AND ALIGNMENT.EST'D AT SE'LYR/W LINE PER(R5) & (21) ORIGINALCOMMON LINELOTS 11 & 19
C/L 60'R/W & COMMON LINE LOTS19 & 20 EST'D AS SHOWN HEREONAND IN DETAIL "B" ON SHEET 4N25°59'45"E 1575.14' (1596.4' R5)N25°59'45"E 2562.32'2553.72' P/L EST'D PARALLELWITH AND 5.00' NW'LYOF C/L 60' R/W PER (R5) 5'
L37RANCHO LINE
C/L(R22)
SBFR-62
M-42 /SBFR-61
LYTLE
CREEK

COYOTE CANYON ROAD
PL PL
PL
PLPL
PL
5' STRIP RESERVED BY THEFONTANA COMPANY IN DEEDRECORDED 09/15/1913 INDEED BOOK 540, PAGE 33 5' STRIP RESERVED BY THEFONTANA COMPANY IN DEEDRECORDED 09/15/1913 INDEED BOOK 540, PAGE 33 M-43
(453.60' R21)
(495.87' R4)
ROAD
564.94'
REFERENCES(R1) - RECORD OF SURVEY 00-100, BOOK 114/79-80(R2) - MAP BOOK 6, PAGE 12(R3) - RECORD OF SURVEY BOOK 74/73-75(R4) - RECORD OF SURVEY 20-00289, BOOK 171/71(R5) - BOOK 9191, PAGE 1762, O.R.(R6) - SAN BERNARDINO COUNTY SURVEYOR MAP CS-3089(R7) - BOOK 6751, PAGE 138, O.R.(R8) - CITY OF LOS ANGELES BUREAU OF POWER AND LIGHT FIELD BOOK 407, PAGES 67-70 (C. 1934)(R9) - RECORD OF SURVEY BOOK 2, PAGE 20(R10) - SAN BERNARDINO COUNTY SURVEYOR'S FIELD BOOK 135, PAGE 32(R11) - SAN BERNARDINO COUNTY SURVEYOR MAP CS-406(R12) - MAP BOOK 7, PAGE 23(R13) - SAN BERNARDINO COUNTY SURVEYOR MAP CS-3067(R14) - SAN BERNARDINO COUNTY SURVEYOR MAP CS-1350(R15) - 1898 US GLO PLAT T 1 N, R 5 W, SBM (PORTION) (SURVEYED BY GEORGE H. PERRIN)(R16) - 1937 US GLO PLAT T 1 N, R 5 W, SBM (PORTION)(R17) - BOOK 8035, PAGE 843, O.R.(R18) - RECORD OF SURVEY BOOK 41, PAGES 71-81(R19) - RECORD OF SURVEY BOOK 51, PAGES 90-104(R20) - RECORD OF SURVEY BOOK 72, PAGES 12-18(R21) - BOOK 9361, 1431 OFFICIAL RECORDS(R22) - BOOK 982, PAGE 158 OFFICIAL RECORDS(R23) - BOOK 890, PAGE 333 OF DEEDS(R24) - PARCEL MAP NO. 15039, PARCEL MAP BOOK 190, PAGES 37-39

42.02'
(453.60' R21)(448.13' R5)

LYTLE CREEK ROAD
277

FD MON CSM
N0°02'03"E 2588.81'N0°48'18"E 2724.31'
N88°44'57"W 2252.98'N89°27'56"W 2531.17'
N23°50'51"W 1053.40'N0°21'27"W 4667.87'1964.21'1351.83'980.08' N89°55'46"W 2586.21'
2703.66'398.41'654.99'
L20L21N61°10'50"W366.77'N84°57'13"W96.85'LINE TABLELINE #BEARINGN55°33'57"EDISTANCE225.08' IN THE CITY OF FONTANA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIABEING A SUBDIVISION OF A PORTION OF LOTS 11 AND 19 OF MAP SHOWING SUBDIVISION OF LANDS BELONGINGTO THE SEMI-TROPIC LAND AND WATER COMPANY, FILED IN BOOK 6, PAGE 12, RECORDS OF SAID COUNTY, ANDA PORTION OF SECTIONS 7 AND 18, TOWNSHIP 1 NORTH, RANGE 5 WEST, SAN BERNARDINO MERIDIANSHEET OF 9 SHEETSNUMBER OF PARCELS 2AREA = 74.795 ACRES GROSS71.319 ACRES NETPARCEL MAP NO. 19712DAVID EVANS AND ASSOCIATES,ROBERT WALKER, P.L.S. 7137JULY 2020 7 GRAPHIC SCALE01"=400'300'800'400'200'100'CLOSING COR. N. LINE SEC. 7 ONW'LY LINE RANCHO MUSCUPIAPE;EST'D AT RECORD ANGLE ANDDISTANCE PER PMB 190/37-39N.W. COR. SEC. 7; EST'D ATRECORD ANGLE AND DISTANCEPER PMB 190/37-39 W. 1/4 COR. SEC. 7; EST'D ATRECORD ANGLE AND DISTANCEPER PMB 190/37-39 CLOSING COR. N-S 1/4 SEC. LINE ONW'LY LINE RANCHO MUSCUPIAPE;EST'D AT RECORD ANGLE ANDDISTANCE PER PMB 190/37-39 CENTER OF SECTION 7;EST'D BY INTERSECTIONE-W CENTER 1/4 SEC. LINE; EST'DBY WEIGHTED MEAN BEARING NW COR. GOV'T LOT 11 IN SEC. 7;EST'D BY PRORATION PER (R16) NW COR. GOV'T LOT 1 IN SEC. 7;EST'D BY PRORATION PER (R16)N. 1/4 COR. SEC. 18; EST'D BYIRREGULAR BOUNDARYADJUSTMENT METHOD VS. (R15)(SEE DETAIL "E" BELOW) LOCATION OF ORIGINAL SBFR-61(M-42) MONUMENT PER (R8)NORTHWEST CORNER SEC. 18FD. 4"x4" CAST IRON POST PER (R1)SEE SHEET 3 ORIGINAL CORNER M-43OF (R2) - FD. 4X4 IRONPOST LEANING NW'LY;LOCATED AT BASE.

EXISTING BOUNDARY DETAILESTABLISHMENT OF NORTH LINE SECTION 18 AND OFGOVERNMENT LOT 1 IN SECTION 7N.W. 1/4 SECTION 7S.W. 1/4 SECTION 7 (20 CH 1320' R16)(40 CH 2640' R15, R16)(14.50 CH 957' R16) N01°35'30"E 2664.85'180°12'48" PMB 190/37-39
L21
SEE SHEET 6
371.75'(5.50 CHSECTION 18
NW COR. SEC. 18FD. 4"X4" CAST IRONPOST PER (R1)1/4 COR. SEC'S 7 & 18;NOTHING FD.; EST'D BYIRREGULAR BOUNDARYADJUSTMENT METHODADJUSTMENT PER 2009 BLMMANUAL, SECTION 7-52N89°55'46"W 2586.21' N89°58'W (39.93 CH 2635.38' R15) 577.08'12.70' N89°49'58"E589.78'M-42 = SBFR-61(SEE DETAIL "B"ON SHEET 4 OF 9)CLOSING CORNER;NOTHING FD.; EST'DBY INTERSECTIONSW'LY LINE RANCHOMUSCUPIABEM-41 (SEE SHEET 5 )SBFR-62DETAIL "E" - NORTH LINE SECTION 18NOT TO SCALE GOV'T LOT 1363' R16)
(1.55 CH / 102.3' R16)(N01°26'21"E R24)(N01°39'09"E R24) M-45 EST'D AT RECORDANGLE AND DISTANCEPER PMB 190/37-39 (N89°48'E 8.91 CH /588.06' R15)SECTION 7SECTION 18
N89°49'58"E 589.78'N53°53'36"W 613.46'REFERENCES(R1) - RECORD OF SURVEY 00-100, BOOK 114/79-80(R2) - MAP BOOK 6, PAGE 12(R3) - RECORD OF SURVEY BOOK 74/73-75(R4) - RECORD OF SURVEY 20-00289, BOOK 171/71(R5) - BOOK 9191, PAGE 1762, O.R.(R6) - SAN BERNARDINO COUNTY SURVEYOR MAP CS-3089(R7) - BOOK 6751, PAGE 138, O.R.(R8) - CITY OF LOS ANGELES BUREAU OF POWER AND LIGHT FIELD BOOK 407, PAGES 67-70 (C. 1934)(R9) - RECORD OF SURVEY BOOK 2, PAGE 20(R10) - SAN BERNARDINO COUNTY SURVEYOR'S FIELD BOOK 135, PAGE 32(R11) - SAN BERNARDINO COUNTY SURVEYOR MAP CS-406(R12) - MAP BOOK 7, PAGE 23(R13) - SAN BERNARDINO COUNTY SURVEYOR MAP CS-3067(R14) - SAN BERNARDINO COUNTY SURVEYOR MAP CS-1350(R15) - 1898 US GLO PLAT T 1 N, R 5 W, SBM (PORTION) (SURVEYED BY GEORGE H. PERRIN)(R16) - 1937 US GLO PLAT T 1 N, R 5 W, SBM (PORTION)(R17) - BOOK 8035, PAGE 843, O.R.(R18) - RECORD OF SURVEY BOOK 41, PAGES 71-81(R19) - RECORD OF SURVEY BOOK 51, PAGES 90-104(R20) - RECORD OF SURVEY BOOK 72, PAGES 12-18(R21) - BOOK 9361, 1431 OFFICIAL RECORDS(R22) - BOOK 982, PAGE 158 OFFICIAL RECORDS(R23) - BOOK 890, PAGE 333 OF DEEDS(R24) - PARCEL MAP NO. 15039, PARCEL MAP BOOK 190, PAGES 37-39 278
21 11412 8 11
1516
6 17L1L2L4L3
L5L6L7
L8L9N0°18'37"W 726.36'L10L11R&M
165'
165'
175'
175'175'175'165'165' N0°30'32"W 727.91' 727.75' (R1)
N14°25'07"WPRC (RAD)N37°29'32"W (RAD)N30°57'27"W (RAD)
N39°16'09"W (RAD)
N41°51'37"WPRC (RAD)
C1060'N35°54'44"W (RAD)C1

37.86'
N55°33'57"E 800.14'
N30°48'38"E 509.38'N61°10'50"W 366.77'165.04'201.73'N0°21'27"W 371.75' L17L18
C11C12L25C13L26C14C15C16
N45°31'23"W (RAD)N41°22'14"W (RAD)
L19
S14°54'49"E (RAD)L21
60'N35°16'54"W (RAD)
N89°55'46"W 2586.21'450.36'
811.75'1217.79'18
C3C468.45'C8C7
C2L23L12L24L13C919
N55°33'57"E 450.08'
N24°17'31"E 600.95'
1 5
S39°56'51"E (RAD)
N53°53'36"W 527.73'N25°59'45"E 873.87'
C17C20L22
C21
S36°21'06"E PRC (RAD)L34L35L3660'22.5'37.5'
20 N2°00'15"E 586.92'9.10'51.19'29.29'
20 20
C23C24C25C26
L42L41
C27C28L43
L44L45L46L47L48C29L49L50L51N28°20'40"W (RAD)L39L40
S46°16'54"E (RAD)
L52
N25°59'45"E 2553.72'522.65'

22.5'37.5'

33.83'33.83'21.96'23.00'557.26'
S14°23'57"E (RAD)176.01'S13°37'08"E (RAD)23.22'38.59'
599.83'47.76'C33C34C35L60C36L61C37
N40°06'14"W (RAD)
N36°48'46"W (RAD)37.82'
133.93'31.05'C3842.58'35.59'C39S30°43'43"E PCC (RAD)S15°39'42"E (RAD) C5
Δ=5°30'48"R=8000.00'L=769.80'
L21L22L23L24L25L26N84°57'13"W96.85'N40°41'24"E187.67'N54°05'16"E37.58'N54°05'16"E37.58'N40°41'24"E187.67'N62°04'21"E580.26'L33L34L36L35L32N36°33'12"E120.15'N15°49'12"E141.50'N30°12'12"E150.00'N38°07'12"E190.00'N01°17'12"E162.06' LINE TABLELINE #L1L2L3BEARINGN55°33'57"EN34°26'03"WDISTANCE225.08'55.00'L4N55°33'57"E100.02'L5N34°26'03"W45.00'L6N89°26'51"W122.08'L7N55°33'57"E50.01'L8N34°26'03"WL970.00'N52°42'15"E200.30'N55°33'57"EL10261.98'L11N35°04'32"W55.93'N89°29'28"E6.00'L12L13L14N54°05'16"E37.58'L15N40°41'24"E187.67'L16L17L18N30°12'12"E144.14'N15°49'12"E144.20'N38°07'12"E197.91'N53°53'36"W53.43'N36°33'12"E123.99' L39L40L41L43L44L45L46L47L48L49N27°55'39"W97.14'N15°49'12"E63.30'N62°04'21"E529.26'L42N62°04'21"E580.26'N25°59'45"E420.82'N56°48'51"W16.56'N27°55'39"W37.65'N15°49'12"E61.93'N00°38'21"E16.51'N27°55'39"W60.56'N15°49'12"E78.17'N30°12'12"E155.86'L50L51N38°07'12"E182.09'L52N01°17'12"E27.61' CURVE DATA TABLELINE #C1DELTARADIUSLENGTHC2C3C4C5C6C7C8C9C10C11C12C13C14C15C16C17 03°21'25"522.50'30.61'13°23'51"572.50'133.87'34°53'29"622.50'379.08'27°26'30"399.50'191.34'04°22'05"800.50'61.03'06°34'43"778.00'89.33'27°26'30"422.00'202.12'34°53'29"600.00'365.38'13°23'51"595.00'139.13'05°27'30"500.00'47.63'09°36'39"462.50'77.58'13°23'51"632.50'147.90'34°53'29"562.50'342.54'459.50'220.08'10°54'10"740.50'140.91'27°26'30"16°47'03"627.50'183.82' 21°57'09"650.00'249.04'18°06'21"650.00'205.40'
C20C21C22C23C24C26C2780°45'00"200.00'281.87'C29C2808°25'26"650.00'95.57'36°04'35"700.00'440.76'21°26'17"627.50'234.79'22°43'58"687.50'272.77'C2508°25'26"612.50'90.05'08°00'25"672.50'93.98'36°04'35"677.50'426.59'18°21'15"737.50'236.25'43°44'51"55.00'41.99'C33C34C35C36C38C3901°45'23"830.50'25.46'27°26'30"369.50'176.97'34°53'29"652.50'397.35'C3713°23'51"542.50'126.85'00°54'02"552.50'8.68'15°04'00"597.50'157.12'43°27'05"230.00'174.43' CURVE DATA TABLELINE #DELTARADIUSLENGTH
L60N40°41'24"E187.67'L61N54°05'16"E37.58' 15 STATE HIGHWAY

COYOTECANYONROAD

1.AN EASEMENT FOR ABOVE GROUND OR UNDERGROUND CONDUITS OR BOTH AND INCIDENTAL PURPOSES, IN THEDOCUMENT RECORDED JULY 8, 1966 IN BOOK 6658, PAGE 983 OF OFFICIAL RECORDS.2.AN EASEMENT IN FAVOR OF SOUTHERN CALIFORNIA EDISON COMPANY FOR ABOVE GROUND OR UNDERGROUNDCONDUITS OR BOTH AND INCIDENTAL PURPOSES, RECORDED OCTOBER 21, 1974 IN BOOK 8540, PAGE 33 OFOFFICIAL RECORDS.3.AN EASEMENT IN FAVOR OF THE COUNTY OF SAN BERNARDINO FOR HIGHWAY AND INCIDENTAL PURPOSES,RECORDED JULY 18, 1934 AS BOOK 982, PAGE 158 OF OFFICIAL RECORDS. (NOT SHOWN - PARTIALLY ABANDONEDHEREON.) ALSO REFERENCED HEREON AS (R22).5.AN EASEMENT FOR ABOVE GROUND OR UNDERGROUND CONDUITS OR BOTH AND INCIDENTAL PURPOSES INDOCUMENT RECORDED DECEMBER 20, 1937 IN BOOK 1243, PAGE 433 OF OFFICIAL RECORDS.NOTE: THE EFFECT OF A QUITCLAIM OF EASEMENT INTEREST DEED RECORDED OCTOBER 24, 1974 IN BOOK 8543,PAGE 787, OFFICIAL RECORDS.AFFECTS A PORTION OF GOVERNMENT LOT 7 IN SECTION 18.6.THE TERMS AND PROVISIONS CONTAINED IN THE DOCUMENT ENTITLED "TERMS, CONDITIONS AND PROVISIONS OFTHAT CERTAIN AGREEMENT AND CONVEYANCE" RECORDED NOVEMBER 16, 1949 AS BOOK 2491, PAGE 324 OFOFFICIAL RECORDS.7.AN EASEMENT TO SAN BERNARDINO COUNTY FOR PUBLIC HIGHWAY AND INCIDENTAL PURPOSES RECORDEDMARCH 6, 1914 IN BOOK 545, PAGE 103 OF DEEDS. (NOT SHOWN SUPERSEDED BY #3)8.AN EASEMENT IN FAVOR OF SOUTHERN CALIFORNIA EDISON COMPANY, A CORPORATION, FOR DISTRIBUTINGELECTRICAL ENERGY AND FOR TRANSMITTING INTELLIGENCE BY ELECTRICAL MEANS AND INCIDENTAL PURPOSES,RECORDED JULY 26, 2006 AS INSTRUMENT NO. 2006-0505779 OF OFFICIAL RECORDS.10.AN EASEMENT TO SAN BERNARDINO COUNTY FOR PUBLIC HIGHWAY AND INCIDENTAL PURPOSES RECORDEDSEPTEMBER 2, 1914 IN BOOK 558, PAGE 251 OF DEEDS AND RE-RECORDED MAY 29, 1925 IN BOOK 890, PAGE 333 OFDEEDS. (NOTE: THE LEGAL DESCRIPTION CONTAINED IN BOOK 890, PAGE 333 OF DEEDS DIFFERS FROM THE LEGALDESCRIPTION CONTAINED IN BOOK 558, PAGE 251 OF DEEDS. BOOK 890, PAGE 333 IS PRESUMED TO HAVESUPERSEDED BOOK 558, PAGE 251, - PARTIALLY SHOWN HEREON - EASEMENT LATER WIDENED BY #16 BELOW.)11.AN EASEMENT IN FAVOR OF SOUTHERN CALIFORNIA EDISON COMPANY, A CORPORATION, ITS SUCCESSORS ANDASSIGNS FOR PUBLIC UTILITIES AND INCIDENTAL PURPOSES, RECORDED JULY 26, 2006 AS INSTRUMENT NO. 2006-0505781 OF OFFICIAL RECORDS.12.AN EASEMENT IN FAVOR OF SOUTHERN CALIFORNIA EDISON COMPANY, A CORPORATION, ITS SUCCESSORS ANDASSIGNS FOR PUBLIC UTILITIES AND INCIDENTAL PURPOSES, RECORDED AUGUST 09, 2007 AS INSTRUMENT NO.2007-0463941 OFFICIAL RECORDS.14.AN EASEMENT IN FAVOR OF SOUTHERN CALIFORNIA EDISON COMPANY, A CORPORATION FOR ELECTRICAL, COMMUNICATION AND INCIDENTAL PURPOSES, RECORDED AUGUST 09, 2007 AS INSTRUMENT NO. 2007-0463940 OFOFFICIAL RECORDS.15.EASEMENT TO SOUTHERN CALIFORNIA EDISON COMPANY, A CORPORATION FOR CONSTRUCTION, MAINTENANCE,AND OPERATION OF ELECTRIC LINES AND TELEPHONE LINES AND CABLES AND INCIDENTAL PURPOSES, RECORDEDAUGUST 24, 1966 AS BOOK 6685, PAGE 850 OF OFFICIAL RECORDS.16.AN EASEMENT FOR HIGHWAY AND ROAD PURPOSES AND INCIDENTAL PURPOSES RECORDED FEBRUARY 03, 1978AS BOOK 9361, PAGE 1431 OF OFFICIAL RECORDS. ( ABANDONED PORTIONS NOT SHOWN)17.AN EASEMENT TO SOUTHERN CALIFORNIA EDISON FOR PUBLIC UTILITIES AND INCIDENTAL PURPOSES RECORDEDFEBRUARY 11, 2022 AS INSTRUMENT NO. 2022-0058688 OF OFFICIAL RECORDS.18.AN EASEMENT FOR ELECTRICAL TRANSMISSION LINE PURPOSES PER DOCUMENT RECORDED DECEMBER 20, 1937IN BOOK 1242, PAGE 466, OFFICIAL RECORDS.19.AN EASEMENT FOR ELECTRICAL TRANSMISSION LINE PURPOSES PER DOCUMENT RECORDED AUGUST 13, 1941 INBOOK 1484, PAGE 481, OFFICIAL RECORDS.20.AN EASEMENT FOR PULIC UTILITIES AND INCIDENTAL PURPOSES TO SOUTHERN CALIFORNIA EDISON, RECORDEDJUNE 21, 2023 AS INSTRUMENT NO. 2023-0153032, OFFICIAL RECORDS.

EASEMENT NOTES:LYTLE CREEK ROAD(EXISTING)
8 GRAPHIC SCALE01"=200'150'400'200'100'50'
PARCEL 1
PARCEL 2SEE SHEET 9

NOT A PARTCL CL
AREA = 65.699 ACRES(NET TO ROW)
IN THE CITY OF FONTANA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIABEING A SUBDIVISION OF A PORTION OF LOTS 11 AND 19 OF MAP SHOWING SUBDIVISION OF LANDS BELONGINGTO THE SEMI-TROPIC LAND AND WATER COMPANY, FILED IN BOOK 6, PAGE 12, RECORDS OF SAID COUNTY, ANDA PORTION OF SECTIONS 7 AND 18, TOWNSHIP 1 NORTH, RANGE 5 WEST, SAN BERNARDINO MERIDIANSHEET OF 9 SHEETSNUMBER OF PARCELS 2AREA = 74.795 ACRES GROSS71.319 ACRES NETPARCEL MAP NO. 19712DAVID EVANS AND ASSOCIATES,ROBERT WALKER, P.L.S. 7137JULY 2020SEE SHEET 7 SEE SHEET 5
N0°30'32"W38.50'QUARTER CORNER SECTIONS 7 & 18N. LINE SEC. 18RANCHO LINE

COYOTE CANYON ROAD(DEDICATED HEREON)
N53°53'36"E 527.73'N25°59'45"E 873.87'5'N25°59'45"E 2553.72'5.08'522.65'CLPL SEE DETAIL "H"HEREONDETAIL "H"NOT TO SCALE

PROPOSED PARCELS AND EXISTING EASEMENTS

REMAINDER
30' EASEMENT FOR SLOPEMAINTENANCE PURPOSESTO THE CITY OF FONTANA30' REMAINDER~30' EASEMENT FOR SLOPEMAINTENANCE PURPOSESTO THE CITY OF FONTANA 279
18 1412
15 16
17 30'
(1960.1' (R9)
M & (R5)
(347.41' R5)
30'30' N24°17'31"E 1958.70'C22
N30°48'38"E 509.38'N82°02'12"E 247.79'
N62°30'12"E 452.93'
C23
60'
L17L18L3660'
30'30'60'
N0°21'27"W 371.75'L21
30'60'30'
N61°10'50"W 366.77'165.04'134.07'L1930'5'
980.08'S14°23'57"E (RAD)
12 5 L34L35N62°04'21"E 580.26'
C17C20
C21
176.01'133.93'23.22'237.82'S14°54'49"E (RAD)

22.5'60'37.5'

22.5'60'37.5'N24°17'31"E 600.95'L40L3923.00'
557.26'
30'
C26C25C24L47L45L48L4642.58'C29L50L51L52N62°04'21"E 529.26'N62°04'21"E 580.26' C27C28
N28°20'40"W (RAD)
S46°16'54"E (RAD)30'5'
S36°21'06"EPRC (RAD)S13°37'08"E (RAD)38.59'
L44
N25°59'45"E 1575.14'N25°59'45"E 2553.72'1099.27'
N62°30'12"E 456.31'414.29'N25°59'45"E 420.82'
L14C30C6S31°41'52"E RAD)L15L57
N62°04'21"E 580.26'
20 21.96'33.83'33.83'
2703.66'
N25°59'45"E 2553.72'(TO RANCHO LINE)
S15°39'42"E (RAD)
10 20
S30°43'43"E PCC (RAD)C38C39L4935.59'

31.05'
S64°00'15"E RAD)873.87'
L62CURVE DATA TABLELINE #C1DELTARADIUSLENGTH03°21'25"522.50'30.61'C606°34'43"778.00'89.33'16°47'03"627.50'183.82'C17C18C19C20C21C22C23C24C26C2780°45'00"200.00'281.87'C29C30C28 21°57'09"650.00'249.04'18°06'21"650.00'205.40'03°50'48"650.00'43.64'08°25'26"650.00'95.57'36°04'35"700.00'440.76'21°26'17"627.50'234.79'22°43'58"687.50'272.77'C2508°25'26"612.50'90.05'08°00'25"672.50'93.98'36°04'35"677.50'426.59'18°21'15"737.50'236.25'43°44'51"55.00'41.99'04°39'14"627.50'50.97'L33L34L36L35L32N36°33'12"E120.15'N15°49'12"E141.50'N30°12'12"E150.00'N38°07'12"E190.00'N01°17'12"E162.06' L14L15L16L17L18L19L20L21N30°12'12"E144.14'N01°17'12"E16.31'N15°49'12"E144.20'N38°07'12"E197.91'N53°53'36"W53.43'N36°33'12"E123.99'N61°10'50"W366.77'N84°57'13"W96.85'LINE TABLELINE #BEARINGDISTANCE L39L40N27°55'39"W97.14'N15°49'12"E63.30'L44L45L46L47L48L49N56°48'51"W16.56'N27°55'39"W37.65'N15°49'12"E61.93'N00°38'21"E16.51'N27°55'39"W60.56'N15°49'12"E78.17'N30°12'12"E155.86'L50L51N38°07'12"E182.09'L52N01°17'12"E27.61'L53N64°00'15"W7.50'L57N15°49'12"E82.28'L58N56°03'15"W265.11' L27N24°14'05"W32.35'
C38C3915°04'00"597.50'157.12'43°27'05"230.00'174.43'L62N53°53'36"W89.84' IN THE CITY OF FONTANA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIABEING A SUBDIVISION OF A PORTION OF LOTS 11 AND 19 OF MAP SHOWING SUBDIVISION OF LANDS BELONGINGTO THE SEMI-TROPIC LAND AND WATER COMPANY, FILED IN BOOK 6, PAGE 12, RECORDS OF SAID COUNTY, ANDA PORTION OF SECTIONS 7 AND 18, TOWNSHIP 1 NORTH, RANGE 5 WEST, SAN BERNARDINO MERIDIANSHEET OF 9 SHEETSNUMBER OF PARCELS 2AREA = 74.795 ACRES GROSS71.319 ACRES NETPARCEL MAP NO. 19712DAVID EVANS AND ASSOCIATES,ROBERT WALKER, P.L.S. 7137JULY 2020 9 GRAPHIC SCALE01" = 100'75'200'100'50'25'
PARCEL 2AREA = 5.620 ACRES(NET TO ROW)SECTION 7
NW CORNERGOVERNMENT LOT 1COYOTECANYONROADCREEKROADREMAINDERAREA = 1.597 ACRES EASEMENT NOTES:

ANGLE PT. C/L 40' R/W LYTLECREEK ROAD - FD 5/8" REBARPER (R4), DOWN 0.3' SEE SHEET 7SEE SHEET 7
SEE SHEET 8
SEE SHEET 6
N0°21'27"W
N89°55'46"W 2586.21'
ORIGINAL LINE BETWEEN LOTS 11 & 19;NOT DIMENSIONED FOR MAP CLARITY(NOT A CURRENT PROPERTY LINE)NW COR. GOV'T LOT 11 IN SEC. 7LOT 11 LOT 19LOT 20PARCEL 1AREA = 65.699 ACRES(NET TO ROW)CALCULATED LOCATION OF ORIGINALSBFR-61 (M-42) MONUMENT PER (R8) N25°59'45"E 2553.72'1099.27'1454.45'C215'L53N25°59'45"E 1575.14'CLPL SEE DETAIL "I"HEREON DETAIL "I"NOT TO SCALE
TO M-43
60'30'30'N25°59'45"E 420.82'C27
LYTLE

PROPOSED PARCELS AND EXISTING EASEMENTS

2.5'5'C28S46°16'54"E (RAD)224.51'476.76'
5' STRIP RESERVED BY THEFONTANA COMPANY IN DEEDRECORDED 09/15/1913 INDEED BOOK 540, PAGE 33

COYOTE CANYON ROAD

LYTLECREEK
ROAD
REMAINDERAREA = 0.330 ACRES

CORNERCUTBACKDEDICATION FORPUBLIC STREETPURPOSESDEDICATEDHEREON 280

PARCEL MAP NO. 20213

CITY OF FONTANA, CALIFORNIA

City of Fontana
Department of Engineering, Land Development Section

NOT TO SCALE
Regular City Council Meeting

PROJECT LOCATIONVICINITY MAPNOT TO SCALE
66 15
215ONTARIOFREEWAYMOJAVE FREEWAY

N RIVERSIDE AVENUESIERRAAVENUELYTLE CREEK ROAD

DEVORE ROADGLENHELENPARKWAYCAJON BOULEVARDGLEN HELENREGIONALPARKSAN BERNARDINONATIONALFOREST PARCEL MAP NO. 19712

LYTLE CREEK ROAD
SIERRA
AVE
281
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-2940 Agenda Date: 4/23/2024
Agenda #: M. Category: Consent Calendar
FROM:

Engineering
SUBJECT:

Approve a Bond Reduction for Tract No. 17041 - Lot 2 (In-tract Improvements) located within the Citrus Heights North Specific Plan (Shady Trails)
RECOMMENDATION:

Approve a reduction of the Faithful Performance Bond, Labor and Material Bond, and the Warranty Bond posted by Taylor Morrison of California, LLC. for Tract 17041 - Lot 2, for the in-tract improvements consisting of street, street light, storm drain, and sewer, located within the Citrus Heights North Specific Plan (Shady Trails).

COUNCIL GOALS:
· To promote economic development by being business friendly at all levels and striving to constantly improve the City's competitiveness.
· To invest in the City’s infrastructure (streets, sewers, parks, etc.) by maintaining and improving the City's existing infrastructure.

DISCUSSION:

Tract No. 17041 is located within the Citrus Heights North Specific Plan (Shady Trails), north of Summit Avenue and west of Citrus Avenue. Tract 17041 is a multi-family subdivision with 91 attached triplex (bungalows) condominium units and 60 detached condominium units. As a requirement of the Subdivision Map Act and as a condition of development, Taylor Morrison of California, LLC. posted bonds to secure 100% of the installation of in-tract improvements consisting of street, street light, storm drain, and sewer, for Tract 17041 - Lot 2. Currently, the developer has completed majority of the public infrastructure.

This action will authorize an 80% reduction in securities to an amount sufficient to guarantee the completion of all remaining public infrastructure work, as follows:

FISCAL IMPACT:

This action will only authorize the reduction of the posted bond, therefore there is no fiscal impact to City of Fontana Printed on 4/18/2024Page 1 of 2
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File #: 21-2940 Agenda Date: 4/23/2024
Agenda #: M. Category: Consent Calendar
This action will only authorize the reduction of the posted bond, therefore there is no fiscal impact to City resources at this time.

MOTION:

Approve staff recommendation.

City of Fontana Printed on 4/18/2024Page 2 of 2
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288
289
290
291
292
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TRACT MAP NO. 17041

CITY OF FONTANA, CALIFORNIA

City of Fontana
Department of Engineering, Land Development Section
Regular City Council Meeting
Regular City Council Meeting - March 23, 2021
304
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-2941 Agenda Date: 4/23/2024
Agenda #: N. Category: Consent Calendar
FROM:

Economic Development
SUBJECT:

Fontana Auto Center - Pylon Sign Refurbishment
RECOMMENDATION:

1. Authorize City Manager to complete upgrades to the Fontana Auto Center pylon signage in the amount of $127,710.

COUNCIL GOALS:
· To operate in a business-like manner by improving services through the effective use of technology.

DISCUSSION:

The Fontana Auto Center represents a significant economic engine for the City of Fontana, fostering a concentration of automotive businesses that contribute substantially to the local economy. Recent weather conditions and normal wear have caused significant damage to the existing pylon sign, hindering its functionality and aesthetic appeal.

Additionally, the current sign configuration only allows spacing for up to six auto dealerships. Due to dealership expansion at the Fontana Auto Center, the pylon signage now requires spacing for up to twelve. The limited space restricts the ability to effectively showcase each dealership and its offerings.

The City of Fontana has an existing agreement with Electra Media Inc (EMI) to maintain the pylon signage.

FISCAL IMPACT:

Funding is available in the current fiscal year; upon approval, funds will be drawn from 60110500- 8030 for refurbishment expenditures. Under the current contract obligation with EMI refurbishment, the expenditures will total $127,710.00.

MOTION:

Request to approve staff recommendation.

City of Fontana Printed on 4/17/2024Page 1 of 1
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305
CV
10235 Bellegrave Avenue
Jurupa Valley, CA 91752
(866) 959-3726

LOS ANGELES
California RegionCALIFORNIA CONTRACTOR LICENSE NO. 980698 PROJECT NAME / LOCATION:

Fontana Auto Center
16444 S. Highland Ave
Fontana, CA 92336
© YESCO LLC This drawing was created to assist in
visualizing our proposal. The original ideas herein are the property of YESCO LLC. Permission to copy or revise this drawing can only be obtained through a written agreement with YESCO LLC. See your sales representative or call the nearest office of YESCO LLC.

Note: The colors depicted on this rendering
may not match actual colors used on the
finished display. Please refer to the detail
drawing for the approved color specifications.

Note: The cost of providing electrical wiring
to the sign area, all required permits and all
special inspections are not included in this
sign proposal.

Note: The proportion of signs shown on
building and landscape area photos is an
approximate representation.

Note: This sign is intended to be installed in
accordance with the requirements of Article
600 of the National Electrical Code and/or
other applicable local codes. This includes
proper grounding and bonding of the sign.

SHEET:
1 2
LT
KA
08/29/23
10/03/23
Increase number of logo panels to 8
Revised lower cabinet to new blank logo
panels, changed no. of panels back to 6
DESIGNER: DATE:

LEVEL 4LEVEL 3LEVEL 2
LEVEL 3
ART R2 OPY-58333
DESIGN NUMBER:

ACCOUNT EXECUTIVE:

DESIGNER: DATE:

DAVE JONES
L TAYLOR 08/16/23
REVISIONS:

A U T O C E N T E R
306
10235 Bellegrave Avenue
Jurupa Valley, CA 91752
(866) 959-3726

LOS ANGELES
California RegionCALIFORNIA CONTRACTOR LICENSE NO. 980698 PROJECT NAME / LOCATION:

Note: The colors depicted on this rendering
may not match actual colors used on the
finished display. Please refer to the detail
drawing for the approved color specifications.

Note: The cost of providing electrical wiring
to the sign area, all required permits and all
special inspections are not included in this
sign proposal.

Note: The proportion of signs shown on
building and landscape area photos is an
approximate representation.

SHEET:
1 2
LT
KA
08/29/23
10/03/23
Increase number of logo panels to 8
Revised lower cabinet to new blank logo
panels, changed no. of panels back to 6
DESIGNER: DATE:

LEVEL 4LEVEL 3LEVEL 2
LEVEL 3
ART R2 OPY-58333
DESIGN NUMBER:

ACCOUNT EXECUTIVE:

DESIGNER: DATE:

DAVE JONES
L TAYLOR 08/16/23
REVISIONS:

A U T O C E N T E R
SP1 307
10235 Bellegrave Avenue
Jurupa Valley, CA 91752
(866) 959-3726

LOS ANGELES
California RegionCALIFORNIA CONTRACTOR LICENSE NO. 980698 PROJECT NAME / LOCATION:

Note: The colors depicted on this rendering
may not match actual colors used on the
finished display. Please refer to the detail
drawing for the approved color specifications.

Note: The cost of providing electrical wiring
to the sign area, all required permits and all
special inspections are not included in this
sign proposal.

Note: The proportion of signs shown on
building and landscape area photos is an
approximate representation.

SHEET:
1 2
LT
KA
08/29/23
10/03/23
Increase number of logo panels to 8
Revised lower cabinet to new blank logo
panels, changed no. of panels back to 6
DESIGNER: DATE:

LEVEL 4LEVEL 3LEVEL 2
LEVEL 3
ART R2 OPY-58333
DESIGN NUMBER:

ACCOUNT EXECUTIVE:

DESIGNER: DATE:

DAVE JONES
L TAYLOR 08/16/23
REVISIONS:

A U T O C E N T E R
DSN 1.0
308
10235 Bellegrave Avenue
Jurupa Valley, CA 91752
(866) 959-3726

LOS ANGELES
California RegionCALIFORNIA CONTRACTOR LICENSE NO. 980698 PROJECT NAME / LOCATION:

Note: The colors depicted on this rendering
may not match actual colors used on the
finished display. Please refer to the detail
drawing for the approved color specifications.

Note: The cost of providing electrical wiring
to the sign area, all required permits and all
special inspections are not included in this
sign proposal.

Note: The proportion of signs shown on
building and landscape area photos is an
approximate representation.

SHEET:
1 2
LT
KA
08/29/23
10/03/23
Increase number of logo panels to 8
Revised lower cabinet to new blank logo
panels, changed no. of panels back to 6
DESIGNER: DATE:

LEVEL 4LEVEL 3LEVEL 2
LEVEL 3
ART R2 OPY-58333
DESIGN NUMBER:

ACCOUNT EXECUTIVE:

DESIGNER: DATE:

DAVE JONES
L TAYLOR 08/16/23
REVISIONS:

A U T O C E N T E R
DSN 2.0 309
10235 Bellegrave Avenue
Jurupa Valley, CA 91752
(866) 959-3726

LOS ANGELES
California RegionCALIFORNIA CONTRACTOR LICENSE NO. 980698 PROJECT NAME / LOCATION:

Note: The colors depicted on this rendering
may not match actual colors used on the
finished display. Please refer to the detail
drawing for the approved color specifications.

Note: The cost of providing electrical wiring
to the sign area, all required permits and all
special inspections are not included in this
sign proposal.

Note: The proportion of signs shown on
building and landscape area photos is an
approximate representation.

SHEET:
1 2
LT
KA
08/29/23
10/03/23
Increase number of logo panels to 8
Revised lower cabinet to new blank logo
panels, changed no. of panels back to 6
DESIGNER: DATE:

LEVEL 4LEVEL 3LEVEL 2
LEVEL 3
ART R2 OPY-58333
DESIGN NUMBER:

ACCOUNT EXECUTIVE:

DESIGNER: DATE:

DAVE JONES
L TAYLOR 08/16/23
REVISIONS:

A U T O C E N T E R
DSN 2.1 310
10235 Bellegrave Avenue
Jurupa Valley, CA 91752
(866) 959-3726

LOS ANGELES
California RegionCALIFORNIA CONTRACTOR LICENSE NO. 980698 PROJECT NAME / LOCATION:

Note: The colors depicted on this rendering
may not match actual colors used on the
finished display. Please refer to the detail
drawing for the approved color specifications.

Note: The cost of providing electrical wiring
to the sign area, all required permits and all
special inspections are not included in this
sign proposal.

Note: The proportion of signs shown on
building and landscape area photos is an
approximate representation.

SHEET:
1 2
LT
KA
08/29/23
10/03/23
Increase number of logo panels to 8
Revised lower cabinet to new blank logo
panels, changed no. of panels back to 6
DESIGNER: DATE:

LEVEL 4LEVEL 3LEVEL 2
LEVEL 3
ART R2 OPY-58333
DESIGN NUMBER:

ACCOUNT EXECUTIVE:

DESIGNER: DATE:

DAVE JONES
L TAYLOR 08/16/23
REVISIONS:

A U T O C E N T E R
DSN 2.0 311
Estimate
Date
1/5/24849
Fontana Auto Mall
8353 Sierra Ave.

Fontana, CA 92335
Attn: Monique Carter
TotalApproved by _______________________________________ Printed Name ______________________________________
Approval Date ______________________________________
Description Qty Rate Total

FONTANA AUTO CENTER - PYLON SIGN REFURBISHMENT
SCOPE OF WORK:
*Remove and dispose of the two (2) existing sets of "FONTANA" "AUTO CENTER" channel letters and graphic "cross". Manufacture and install two (2) new sets of 24" tall "FONTANA" channel letters and 1' 10" high "AUTO CENTER" channel letters that are face lit with white acrylic faces, white trim caps and returns, internally illuminated with white LEDs.
1 34,980.00 34,980.00
*Remove and dispose of existing "Welcome to Fontana" vinyl from the lower flex face cabinet. Retrofit the lower 9' 9" high x 21' 9" flex face cabinet through modification of the existing steel framing. Manufacture and install twelve (12) or six (6) per face, ~4' 6" high x 5' 2.5" wide blank aluminum panels with painted aluminum face frame with divider bars. Includes new internal white LED illumination.
1 92,730.00 92,730.00
Includes all materials, boom crane and labor.

NOTE:

Logo artwork to be signed off by client before fabrication. 50% down payment ($63,855.00) due upon estimate approval. Balance payment ($63,855.00) due upon completion.
$127,710.00
312
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-2946 Agenda Date: 4/23/2024
Agenda #: O. Category: New Business
FROM:

Finance
SUBJECT:

Issuance of Special Tax Bonds for CFD #111 (Monterado)
RECOMMENDATION:

Adopt Resolution No. 2024-018, of the City Council of the City of Fontana authorizing the issuance of City of Fontana Community Facilities District No. 111 (Monterado) Special Tax Bonds, Series 2024, in an aggregate principal amount of not to exceed $8,000,000, authorizing the execution and delivery of an Indenture, a Bond Purchase Agreement and a Continuing Disclosure Agreement, authorizing the distribution of an Official Statement in connection therewith and authorizing the execution of necessary documents and certificates and related actions.

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

DISCUSSION:

On September 13, 2022, the City Council authorized the formation of Community Facilities District No. 111 (Monterado) and conducted a special election to levy taxes within the District. This project consists of 198 residential lots located on the west side of Citrus Avenue north of Duncan Canyon Road. Bond proceeds will be used to fund public infrastructure including sewer, storm drain, street improvements, landscaping, public facilities and park facilities.

In order to issue the special tax bonds, it is necessary to execute bond documents and agreements relating to this District. The recommended action complies with the City’s debt management strategy.

The following documents, in their materially correct form, are attached hereto:

1. Indenture;

2. District Continuing Disclosure Agreement;

3. Bond Purchase Agreement;

4. Preliminary Official Statement; and

5. Appraisal Report.

FISCAL IMPACT:

The fiscal impact associated with the approval of this item is $6.91 million in bond proceeds resulting from the issuance of the bonds to be made available for the approved infrastructure projects which also includes $1.38 million in community benefit fees (20% of bond proceeds) to fund a defined community benefit project. Costs of issuance will be paid from gross bond proceeds. Debt service City of Fontana Printed on 4/17/2024Page 1 of 2
powered by Legistar™
313
File #: 21-2946 Agenda Date: 4/23/2024
Agenda #: O. Category: New Business
community benefit project. Costs of issuance will be paid from gross bond proceeds. Debt service payments will be made from special taxes levied on the property owners within the district.

MOTION:

Approve staff recommendation.

City of Fontana Printed on 4/17/2024Page 2 of 2
powered by Legistar™
314

4163-0675-3613.4

RESOLUTION NO. _______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

FONTANA AUTHORIZING THE ISSUANCE OF CITY OF
FONTANA COMMUNITY FACILITIES DISTRICT NO. 111
(MONTERADO) SPECIAL TAX BONDS, SERIES 2024, IN AN

AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED
$8,000,000, AUTHORIZING THE EXECUTION AND

DELIVERY OF AN INDENTURE, A BOND PURCHASE

AGREEMENT AND A CONTINUING DISCLOSURE

AGREEMENT, AUTHORIZING THE DISTRIBUTION OF

AN OFFICIAL STATEMENT IN CONNECTION

THEREWITH AND AUTHORIZING THE EXECUTION OF

NECESSARY DOCUMENTS AND CERTIFICATES AND

RELATED ACTIONS
WHEREAS, the City Council (the “City Council”) of the City of Fontana (the “City”) has formed City of Fontana Community Facilities District No. 111 (Monterado) (the “Community Facilities District”) under the provisions of the Mello-Roos Community Facilities Act of 1982 (the “Act”);
WHEREAS, the Community Facilities District is authorized under the Act to levy a special tax (the “Special Tax”) to pay for the costs of certain public facilities (the “Facilities”) and to issue bonds payable from the Special Tax;
WHEREAS, in order to provide funds to finance certain of the Facilities, the Community Facilities District proposes to issue its City of Fontana Communi ty Facilities District No. 111 (Monterado) Special Tax Bonds, Series 2024 (the “Series 2024 Bonds”), in the aggregate principal amount of not to exceed $8,000,000;
WHEREAS, in order to provide for the authentication and delivery of the Series 2024 Bonds, to establish and declare the terms and conditions upon which the Series 2024 Bonds are to be issued and secured and to secure the payment of the principal thereof, premium, if any, and interest thereon, the Community Facilities District proposes to enter in to an Indenture with U.S.

Bank Trust Company, National Association, as trustee (the “Trustee”) (such Indenture, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the “Indenture”); WHEREAS, Stifel, Nicolaus & Company, Incorporated (the “Underwriter”), has presented the Community Facilities District with a proposal, in the form of a Bond Purchase Agreement, to purchase the Series 2024 Bonds from the Community Facilities District (such Bond Purchase Agreement, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the “Purchase Agreement”);
WHEREAS, Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 (“Rule 15c2-12”) requires that, in order to be able to purchase or sell the Series 2024 Bonds, the underwriter thereof must have reasonably determined that the Community Facilities District , as 315

2 4163-0675-3613.4

the issuer of the Series 2024 Bonds, has undertaken in a written agreement or contract for the benefit of the holders of the Series 2024 Bonds to provide disclosure of certain financial information and certain listed events on an ongoing basis; WHEREAS, in order to cause such requirement to be satisfied, the Community Facilities District desires to enter into a Continuing Disclosure Agreement with U.S. Bank Trust Company, National Association , in its capacity as Trustee and in its capacity as dissemination agent thereunder (such Continuing Disclosure Agreement, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the “Continuing Disclosure Agreement”);
WHEREAS, a form of the Preliminary Official Statement to be distributed in connection with the public offering of the Series 2024 Bonds has been prepared (such Preliminary Official Statement, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the “Preliminary Official Statement”);
WHEREAS, there have been prepared and submitted to this meeting forms of:
(a) the Indenture;
(b) the Purchase Agreement;
(c) the Continuing Disclosure Agreement; and
(d) the Preliminary Official Statement;
WHEREAS, Kitty Siino & Associates, Inc. has prepared and provided to the Community Facilities District an appraisal report, dated April 15, 2024 (the “Appraisal”), providing an opinion of value of the property in the Community Facilities District, which has been submitted to this meeting;
WHEREAS, Section 5852.1 of the California Government Code requires that the City Council obtain from an underwriter, financial advisor or private lender and disclose, in a meeting open to the public, prior to authorization of the issuance of the Series 2024 Bonds, good faith estimates of (a) the true interest cost of the Series 2024 Bonds, (b) the sum of all fees and charges paid to third parties with respect to the Series 2024 Bonds, (c) the amount of proceeds of the Series 2024 Bonds expected to be received net of the fees and charges paid to third parties and any reserves or capitalized interest paid or funded with proceeds of the Series 2024 Bonds, and (d) the sum total of all debt service payments on the Series 2024 Bonds calculated to the final maturity of the Series 2024 Bonds plus the fees and charges paid to third parties not paid with the proceeds of the Series 2024 Bonds;
WHEREAS, in compliance with Section 5852.1 of the California Government Code, the City Council has obtained from CSG Advisors Incorporated, as the Community Facilities District’s municipal advisor (the “ Municipal Advisor”), the required g ood faith estimates , which the Municipal Advisor has prepared in consultation with the Underwriter, and such estimates are disclosed and set forth in Exhibit A attached hereto;
316

3 4163-0675-3613.4

WHEREAS, the Community Facilities District desires to proceed to issue and sell the Series 2024 Bonds and to authorize the execution of such documents and the performance of such acts as may be necessary or desirable to effect the offering, sale and issuance of th e Series 2024 Bonds; and
WHEREAS, the City Council is the legislative body of the Community Facilities District; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fontana, as follows:

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

Section 2. Subject to the provisions of Section 3 hereof, the issuance of the Series 2024 Bonds, in an aggregate principal amount of not to exceed $8,000,000, on the terms and conditions set forth in, and subject to the limitati ons specified in, the Indenture, be and the same is hereby authorized and approved. The Series 2024 Bonds shall be dated, shall bear interest at the rates, shall mature on the dates, shall be subject to call and redemption, shall be issued in the form and shall be as otherwise provided in the Indenture, as the same shall be completed as provided in this Resolution.

Section 3. The Indenture, in substantially the form submitted to this meeting and made a part hereof as though set forth herein, be and the same is hereb y approved. Each of the Mayor of the City, and such other member of the City Council as the Mayor may designate, the City Manager of the City, the Chief Financial Officer, Finance Department, of the City and such other officer or employee of the City as th e City Manager may designate (the “Authorized Officers”) is hereby authorized, and any one of the Authorized Officers is hereby directed, for and in the name of the Community Facilities District, to execute and deliver the Indenture in the form submitted t o this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Indenture by such Authorized Officer; provide d, however, that such changes, insertions and omissions shall not authorize an aggregate principal amount of Series 2024 Bonds in excess of $8,000,000, shall not result in a final maturity date of the Series 2024 Bonds later than September 1, 2055 and shall not result in a true interest cost for the Series 2024 Bonds in excess of 6.50%.

Section 4. The Purchase Agreement, in substantially the form submitted to this meeting and made a part hereof as though set forth in full herein, be and the same is hereby approved. Each of the Authorized Officers is hereby authorized, and any one of the Authorized Officers is hereby directed, for and in the name of the Community Facilities District, to execute and deliver the Purchase Agreement in the form presented to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Purchase Agreement by such Authorized Officer; provided, however, that such changes, insertions and omissions shall not result in an aggregate underwriter’s discount (not including any original issue discount) from the principal amount of the Series 2024 Bonds in excess of 1.50% of the aggregate principal amount of the Series 2024 Bonds. The City Council hereby finds and determines that the sale of the Series 317

4 4163-0675-3613.4

2024 Bonds at negotiated sale as contemplated by the Purchase Agreement will result in a lower overall cost.

Section 5. The Continuing Disclosure Agreement, in substanti ally the form submitted to this meeting and made a part hereof as though set forth in full herein, be and the same is hereby approved. Each of the Authorized Officers is hereby authorized, and any one of the Authorized Officers is hereby directed, for and in the name of the Community Facilities District, to execute and deliver the Continuing Disclosure Agreement in the form presented to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Continuing Disclosure Agreement by such Authorized Officer.

Section 6. The Preliminary Official Statement, in substantially the form presented to this meeting and made a part her eof as though set forth in full herein, with such changes, insertions and omissions therein as may be approved by an Authorized Officer, be and the same is hereby approved, and the use of the Preliminary Official Statement in connection with the offering a nd sale of the Series 2024 Bonds is hereby authorized and approved. Each of the Authorized Officers is hereby authorized, and any one of the Authorized Officers is hereby directed, to certify on behalf of the Community Facilities District that the Preliminary Official Statement is deemed final as of its date, within the meaning of Rule 15c2-12 (except for the omission of certain final pricing, rating and related information as permitted by Rule 15c2-12).

Section 7. The preparation and delivery of a final Official St atement (the “Official Statement”), and its use in connection with the offering and sale of the Series 2024 Bonds, be and the same is hereby authorized and approved. The Official Statement shall be in substantially the form of the Preliminary Official Stat ement, with such changes, insertions and omissions as may be approved by an Authorized Officer, such approval to be conclusively evidenced by the execution and delivery thereof. Each of the Authorized Officers is hereby authorized, and any one of the Autho rized Officers is hereby directed, for and in the name of the Community Facilities District, to execute the final Official Statement and any amendment or supplement thereto.

Section 8. Based upon the value of the property within the Community Facilities District reported in the Appraisal and the value -to-lien information for such property set forth in the Preliminary Official Statement, the City Council, for purposes of Section 53345.8 of the Act, hereby finds and determines that the value of the real property that would be subject to the Special Tax to pay debt service on the Series 2024 Bonds will be at least three times the principal amount of the Series 2024 Bonds to be sold and the principal amount of all other bonds o utstanding that are secured by a special tax levied pursuant to the Act on property within the Community Facilities District or a special assessment levied on property within the Community Facilities District.

Section 9. The City Council hereby waives the provision s of the City of Fontana Community Facilities and Assessment District Policy for the Provision of Public Facilities and Services (Operation and Maintenance) and Fee Deferrals in Proposed Development Projects that are inconsistent or in conflict with the offering, issuance and sale of the Series 2024 Bonds and the financing of the Facilities as approved and authorized hereby. In the judgment of the City Council, additional benefit inures to the ultimate property owners, the Community Facilities District and/or the City as a result of such waiver.
318

5 4163-0675-3613.4

Section 10. The City Council hereby approves the execution and delivery of all agreements, documents, certificates and instruments referred to herein with electronic signatures as may be permitted under the California Uniform Electronic Transactions Act and digital signatures as may be permitted under Section 16.5 of the California Government Code using DocuSign.

Section 11. All actions heretofore taken by the officers, employees and agents of the City with respect to the issuance and sale of the Series 2024 Bonds, or in connection with or related to any of the agreements , documents, certificates or instruments referred to herein, are hereby approved, confirmed and ratified.

Section 12. The Authorized Officers and the officers , employees and agents of the City are, and each of them is, hereby authorized and directed, for and in the name of the Community Facilities District to take all actions and do any and all things and to execute and deliver any and all agreements, documents, certificates or ins truments that they, or any of them , may deem necessary or advisable in order to consummate the transactions contemplated by this Resolution and otherwise to carry out, give effect to and comply with the terms and intent of this Resolution not inconsistent with the provisions hereof.

Section 13. This Resolution shall take effect immediately upon its adoption.

PASSED AND ADOPTED the 23rd day of April, 2024.
__________________________________
Mayor
ATTEST:
_________________________________
City Clerk

319

A-1
4163-0675-3613.4

EXHIBIT A

GOOD FAITH ESTIMATES
The good faith estimates set forth herein are provided with respect to the Series 2024 Bonds in accordance with Section 5852.1 of the California Government Code. Such good faith estimates have been provided to the Community Facilities District by the Municipa l Advisor, which the Municipal Advisor has prepared in consultation with the Underwriter.

Principal Amount. The Municipal Advisor has informed the Community Facilities District that, based on the Community Facilities District’s financing plan and current m arket conditions, its good faith estimate of the aggregate principal amount of the Series 2024 Bonds to be issued and sold is $ 7,665,000 (the “Estimated Principal Amount”), plus approximately $131,000 of net premium estimated to be generated based on current market conditions. Net premium is generated when, on a net aggregate basis for a single issuance of bonds, the price paid for such bonds is higher than the face value of such bonds. Such Estimated Principal Amount plus such estimated net premium amount would produce approximately $7,796,000 of gross proceeds.

True Interest Cost of the Series 2024 Bonds. The Municipal Advisor has informed the Community Facilities District that, a ssuming that the Estimated Principal Amount of the Series 2024 Bonds is issued and sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the true interest cost of the Series 2024 Bonds, which means the rate necessary to discount the amounts payable on the respective principal and interest payment dates to the purchase price received for the Series 2024 Bonds, is 4.94%.

Finance Charge of the Series 2024 Bonds. The Municipal Advisor has informed the Community Facilities District that, a ssuming that the Estimated Principal Amount of the Series 2024 Bonds is issued and sold, and based on market interest rates prevaili ng at the time of preparation of such estimate , its good faith estimate of the finance charge for the Series 2024 Bonds, which means the sum of all fees and charges paid to third parties (or costs associated with the Series 2024 Bonds), is $381,000.

Amount of Proceeds to be Received. The Municipal Advisor has informed the Community Facilities District that, assuming that the Estimated Principal Amount of the Series 2024 Bonds is issued and sold, and based on market interest rates prevailing at the time of p reparation of such estimate, its good faith estimate of the amount of proceeds expected to be received by the Community Facilities District for sale of the Series 2024 Bonds, less the finance charge of the Series 2024 Bonds, as estimated above, and any reserves or capitalized interest paid or funded with proceeds of the Series 2024 Bonds, is $6,910,453.

Total Payment Amount . The Municipal Advisor has informed the Community Facilities District that, assuming that the Estimated Principal Amount of the Series 2024 Bonds is issued and sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the total payment amount, which means the sum total of all payments the Community Facilities District will make to pay debt service on the Series 2024 Bonds, plus the finance charge for the Series 2024 Bonds, as described above, not paid with the proceeds of the Series 2024 Bonds, calculated to the final maturity of the Series 2024 Bonds, is $14,900,000, 320

A-2
4163-0675-3613.4

which excludes any reserves or capitalized interest funded or paid with proceeds of the Series 2024 Bonds (which may offset such total payment amount).

The foregoing estimates constitute good faith estimates only and are based on market conditions prevailing at the time of preparation of such estimates . The actual principal amount of the Series 2024 Bonds issued and sold, the true interest cost thereof, the finance charges thereof, the amount of proceeds received therefrom and total payment amount with respect thereto may differ from such good faith estimates due to (a) the actual date of the sale of the Series 2024 Bonds being different than the date assumed for purposes of such estimates , (b) the actual principal amount of Series 2024 Bonds issued and sold being different from the Estimated Principal Amount, (c) the actual amortization of the Series 2024 Bonds being different than the amortization assumed for purposes of such estimates, (d) the actual market interest rates at the time of sale of the Series 2024 Bonds being different than those estimated for purposes of such estimates, (e) other market conditions, or (f) alterations in the Community Facilities District’s financing plan, or a combination of such factors. The actual date of sale of the Series 2024 Bonds and the actual principal amount of Series 2024 Bonds issued and sold will be determined by the Community Facilities District based on the timing of the need for proceeds of the Series 2024 Bonds and other factors. The actual intere st rates borne by the Series 2024 Bonds will depend on market interest rates at the time of sale thereof. The actual amortization of the Series 2024 Bonds will also depend, in part, on market interest rates at the time of sale thereof. Market interest rate s are affected by economic and other factors beyond the control of the Community Facilities District. 321

4163-0675-3613.4

CITY OF FONTANA )

COUNTY OF SAN BERNARDINO )

STATE OF CALIFORNIA )

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, he ld on April 23, 2024, by the following vote to-wit:

AYES:

NOES:

ABSENT:

City Clerk

Mayor

ATTEST:

City Clerk

322
Stradling Yocca Carlson & Rauth
Draft of April 9, 2024
4866-7424-2209v4/022777-0041
PRELIMINARY OFFICIAL STATEMENT DATED _____, 2024
NEW ISSUE – BOOK-ENTRY-ONLY NO RATING
In the opinion of Orrick, Herrington & Sutcliffe LLP, Bond Counsel to the District, based upon an analysis of existing laws, regulations, rulings and court decisions, and assuming, among other matters, the accuracy of certain representations and compliance with certain covenants, interest on the Bonds is excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Cod e of 1986 and is exempt from State of California personal income taxes. In the further opinion of Bond Counsel, interest on the Bonds is not a specific preference item for purposes of the federal individual alternative minimum tax. Bond Counsel observes that interest on the Bonds included in adjusted financial statement income of certain corporations is not excluded from the federal corporate alternative minimum tax. Bond Counsel expresses no opinion regarding any other tax consequences related to the ow nership or disposition of, or the amount, accrual or receipt of interest on, the Bonds. See “TAX MATTERS” herein.
$7,665,000*

CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 111 (MONTERADO)
SPECIAL TAX BONDS, SERIES 2024
Dated: Date of Delivery Due: September 1, as shown on the inside cover page The City of Fontana Community Facilities District No. 111 (Monterado) Special Tax Bonds, Series 2024 (the “Bonds”) are being issued and delivered by the City of Fontana Community Facilities District No. 111 (Monterado) (the “District”) to (i) provide financing for certain public facilities and costs with respect thereto related to the development within the District, (ii) fund a reserve fund with respect to the Bonds, and (iii) pay the costs of issuance w ith respect to the Bonds. See “ESTIMATED SOURCES AND USES OF FUNDS” herein. The District has been formed by and is located in the City of Fontana, California (the “City”).

The Bonds are authorized to be issued pursuant to the Mello -Roos Community Facilit ies Act of 1982, as amended (Section 53311 et seq. of the Government Code of the State of California), and pursuant to an Indenture, dated as of _____ 1, 2024, by and between the District and U.S. Bank Trust Company, National Association, as Trustee. The Bonds are special, limited obligations of the District and are payable solely from Net Special Tax Revenues (as defined herein), and the other assets pledged therefor under the Indenture, all as f urther described herein. The Special Tax (as defined herein) is to be levied according to the rate and method of apportionment approved by the City Council of the City and the qualified electors within the District. The City Council is the legislative body of the District.

The Bonds are issuable in fully register ed form and when issued will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”). Individual purchases of Bonds may be made in principal amounts of $5,0 00 and integral multiples thereof. Purchasers of Bonds will not receive certificates representing their beneficial ownership of the Bonds but will receive credit balances on the books of their respective nominees. Interest on the Bonds will be payable on each September 1 and March 1, commencing September 1, 2024. Principal of and interest on the Bonds will be paid by the Trustee to DTC for subsequent disbursement to DTC Participants who are expected to remit such payments to the beneficial owners of the Bonds. See “THE BONDS — General Provisions” and Appendix I — “INFORMATION CONCERNING THE DEPOSITORY TRUST COMPANY AND ITS BOOK-ENTRY SYSTEM” herein.

NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE DISTRICT (EXCEPT TO THE LIMITED

EXTENT SET FORTH IN THE INDENTURE), THE CITY OR THE STATE OF CALIFORNIA, OR ANY POLITICAL SUBDIVISION THEREOF, IS PLEDGED TO THE PAYMENT OF THE BONDS OR ADDITIONAL BONDS. EXCEPT FOR THE

NET SPECIAL TAX REVENUES, NO OTHER TAXES ARE PLEDGED TO THE PAYMENT OF THE BONDS OR ADDITIONAL BONDS. THE BONDS AND ANY ADDITIONAL BONDS ARE NOT GENERAL OR SPECIAL OBLIGATIONS OF THE CITY BUT

ARE SPECIAL, LIMITED OBLIGATIONS OF THE DISTRICT PAYABLE SOLELY FROM NET SPECIAL TAX REVENUES AND THE OTHER ASSETS PLEDGED THEREFOR UNDER THE INDENTURE AS MORE FULLY DESCRIBED HEREIN.

The purc hase of the Bonds involves certain risks. See the section of this Official Statement entitled “SPECIAL RISK FACTORS” for a discussion of certain risk factors that should be considered, in addition to the other matters set forth herei n, in evaluating the investment quality of the Bonds.

This cover page contains certain information for general reference only. It is not a summary of this issue. Investors are a dvised to read the entire Official Statement to obtain information essential to the making of an informed investment decision.

The Bonds are offered when, as and if issued and accepted by the Underwriter, subject to approval as to their legality by Orr ick Herrington & Sutcliffe, LLP, Los Angeles, California, as Bond Counsel, and subject to certain other conditions. Certain legal matters will be passed on for the City and the District by Best Best & Krieger LLP, Riverside, California, in its capacity as City Attorney, and by Stradling Yocca Carlson & Rauth LLP, Newport Beach, California, as Disclosure Counsel. Certain legal matters will be passed upon for the Underwriter by its counsel, Anzel Galvan LLP, San Francisco, California. It is anticipated that the Bonds will be available for delivery to DTC or its agent in book-entry form on or about _____, 2024.
[STIFEL LOGO]
Dated: _____, 2024

* Preliminary, subject to change.

This Preliminary Official Statement and the information contained herein are subject to completion or amendment. These securities may not be sold, nor may offers to buy them be accepted, prior to the time the Official Statement is delivered in final form. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. 323

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MATURITY SCHEDULE
BASE CUSIP†: 344630
Maturity Date
(September 1)
Principal
Amount
Interest
Rate Yield Price CUSIP† No.

$_______ _____% Term Bonds due September 1, 20__, Yield: _____% Price: _______ CUSIP No. ___†

† CUSIP® is a registered trademark of the American Bankers Association. CUSIP Global Services (CGS) is managed on behalf of the American Bankers Association by FactSet Research Systems Inc. Copyright© 2024 CUSIP Global Services. All rights reserved. CUSIP® data herein is provided by CUSIP Global Services. This data is not intended to create a database and does not serve in any way as a substitute for the CGS database. CUSIP® numbers are provided for convenience of reference only. None of the District, the City, the Underwriter or their agents or counsel assume responsibility for the accuracy of such numbers.

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CITY OF FONTANA

CITY COUNCIL
Acquanetta Warren, Mayor
Peter Garcia, Mayor Pro Tem
Phillip Cothran, Council Member
John Roberts, Council Member
Jesus “Jesse” Sandoval, Council Member
STAFF
Matthew C. Ballantyne, City Manager
Jessica Brown, Chief Financial Officer, Management Services Janet Koehler-Brooks, City Treasurer
Germaine Key, City Clerk
Best Best & Krieger LLP, City Attorney

BOND COUNSEL
Orrick Herrington & Sutcliffe LLP
Los Angeles, California

MUNICIPAL ADVISOR
CSG Advisors Incorporated
San Francisco, California

DISCLOSURE COUNSEL
Stradling Yocca Carlson & Rauth LLP
Newport Beach, California

TRUSTEE
U.S. Bank Trust Company, National Association
Los Angeles, California

SPECIAL TAX CONSULTANT
DTA, Inc.

Irvine, California

APPRAISER
Kitty Siino &Associates, Inc.

Tustin, California

PRICE POINT CONSULTANT
Empire Economics, Inc.

Capistrano Beach, California

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Except where otherwise indicated, all information contained in this Official Statement has been provided by the City and the District. No dealer, broker, salesperson or oth er person has been authorized by the City, the District, the Trustee or the Underwriter to give any information or to make any representations in connection with the offer or sale of the Bonds other than those contained herein and, if given or made, such other information or representations must not be relied upon as having been authorized by the City, the District, the Trustee or the Underwriter. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Bonds by a person in any jurisdiction in which it is unlawful for such person to make such an offer, solicitation or sale.

This Official Statement is not to be construed as a contract with the purchasers or owners of the Bonds.

Statements contained in this Official Statement which involve estimates, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as representations of fact.

The Underwriter has provided the following sentence for inclusion in this Official Statement:

The Underwriter has reviewed the information in this Official Statement in accordance with, and as a part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information.

The information and expressions of opinion herein are subject to change without notice and n either the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the District, or any other parties described herein since the date hereof. All summaries of the Indenture or other documents are made subject to the provisions of such documents respectively and do not purport to be complete statements of any or all of such provisions. Reference is hereby made to such documents on file with the District for further information in connection therewith.

Certain statements included or incorporated by reference in this Official Statement constitute “forward -looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. Such statements are generally identifiable by the terminology used such as a “plan,” “expe ct,” “estimate,” “project,” “budget” or similar words. Such forward -looking statements include but are not limited to certain statements contained in the information under the captions “THE COMMUNITY FACILITIES DISTRICT” and “PROPERTY OWNERSHIP AND THE DEVELOPMENT.”
The achievement of certain results or other expectations contained in such forward -looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements described to be m aterially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Except as set forth in the District’s Continuing Disclosure Agreement, a form of which is attached hereto as Appendix G, neit her the District nor the City plans to issue any updates or revisions to the forward-looking statements set forth in this Official Statement. The Developer (as defined herein) has agreed to provide certain continuing disclosure information concerning the Developer and its property within the District in the form attached hereto as Appendix H. See “CONTINUING DISCLOSURE.” A wide variety of other information, including financial information, concerning the City, is available from publications and websites of the City and others. No such information is a part of or incorporated into this Official Statement.

IN CONNECTION WITH THE OFFERING OF THE BONDS, THE UNDERWRITER MAY

OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE

OF SUCH BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME.

THE BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, IN RELIANCE UPON AN EXEMPTION CONTAINED IN SUCH ACT. THE BONDS HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES LAWS OF ANY STATE. 326

TABLE OF CONTENTS
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INTRODUCTION ................................................................................................................................................ 1 The District .................................................................................................................................................... 1 Security and Sources of Payment for the Bonds ............................................................................................ 2 Description of the Bonds ................................................................................................................................ 3 Appraisal Report ............................................................................................................................................ 4 Price Point Study ............................................................................................................................................ 4 Professionals Involved in the Offering .......................................................................................................... 4 Continuing Disclosure.................................................................................................................................... 5 Bond Owners’ Risks ...................................................................................................................................... 5 Other Information .......................................................................................................................................... 5 ESTIMATED SOURCES AND USES OF FUNDS ............................................................................................ 6 THE BONDS ........................................................................................................................................................ 6 General Provisions ......................................................................................................................................... 6 Redemption .................................................................................................................................................... 7 Debt Service Schedule ................................................................................................................................. 11 SECURITY AND SOURCES OF PAYMENT FOR THE BONDS .................................................................. 11 General ......................................................................................................................................................... 11 Special Tax ................................................................................................................................................... 12 Rate and Method of Apportionment ............................................................................................................ 13 Collection and Application of the Special Tax ............................................................................................ 18 Covenant for Superior Court Foreclosure .................................................................................................... 19 Special Tax Fund ......................................................................................................................................... 20 Reserve Fund ............................................................................................................................................... 20 Investment of Moneys .................................................................................................................................. 21 No Additional Bonds Except for Refunding Bonds ..................................................................................... 22 THE COMMUNITY FACILITIES DISTRICT ................................................................................................. 22 General Information Regarding the District ................................................................................................ 22 Assigned Special Tax and Development Summary ..................................................................................... 24 Direct and Overlapping Debt ....................................................................................................................... 24 Property Values ............................................................................................................................................ 27 Value-to-Lien Ratios .................................................................................................................................... 29 Delinquency History .................................................................................................................................... 32 PROPERTY OWNERSHIP AND THE DEVELOPMENT ............................................................................... 33 Lennar Homes .............................................................................................................................................. 33 Development Plan ........................................................................................................................................ 34 Financing Plan ............................................................................................................................................. 36 SPECIAL RISK FACTORS ............................................................................................................................... 37 Risks of Real Estate Secured Investments Generally – Declines in Value .................................................. 38 Levy of the Special Tax ............................................................................................................................... 38 Collection of the Special Tax ....................................................................................................................... 38 Failure to Develop Properties ...................................................................................................................... 39 Concentration of Property Ownership ......................................................................................................... 40 Exempt Properties ........................................................................................................................................ 40 Constitutional Limitations on Taxation and Appropriations ........................................................................ 41 Ballot Initiatives; Initiative 1935 ................................................................................................................. 44 Maximum Special Tax ................................................................................................................................. 45 Payment of the Special Tax is Not a Personal Obligation of the Owners .................................................... 45 Disclosures to Future Purchasers ................................................................................................................. 46 Parity Taxes and Special Assessments ......................................................................................................... 46 Depletion of Reserve Fund .......................................................................................................................... 46 327

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Bankruptcy and Legal Delays ...................................................................................................................... 47 FDIC/Federal Government Interests In Properties ....................................................................................... 47 Geologic, Topographic and Climatic Conditions ......................................................................................... 48 Hazardous Substances .................................................................................................................................. 49 No Acceleration Provision ........................................................................................................................... 49 Bonds Are Limited Obligations ................................................................................................................... 49 Loss of Tax Exemption ................................................................................................................................ 50 Potential Early Redemption of Bonds from Special Tax Prepayments ........................................................ 50 Cybersecurity ............................................................................................................................................... 50 Impact of Economic Conditions on the Development in the District .......................................................... 50 CONTINUING DISCLOSURE .......................................................................................................................... 51 TAX MATTERS................................................................................................................................................. 52 ABSENCE OF LITIGATION ............................................................................................................................ 54 ABSENCE OF RATINGS .................................................................................................................................. 54 CERTAIN LEGAL MATTERS ......................................................................................................................... 54 UNDERWRITING ............................................................................................................................................. 54 FINANCIAL INTERESTS ................................................................................................................................. 55 MUNICIPAL ADVISOR ................................................................................................................................... 56 ADDITIONAL INFORMATION ....................................................................................................................... 56

APPENDIX A RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX ............................ A-1 APPENDIX B APPRAISAL REPORT...................................................................................................... B-1 APPENDIX C UPDATED PRICE POINT STUDY .................................................................................. C-1 APPENDIX D FORM OF OPINION OF BOND COUNSEL ................................................................... D-1 APPENDIX E GENERAL INFORMATION CONCERNING THE CITY OF FONTANA .................... E-1 APPENDIX F SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE .................................F-1 APPENDIX G FORM OF DISTRICT CONTINUING DISCLOSURE AGREEMENT .......................... G-1

APPENDIX H INFORMATION CONCERNING THE DEPOSITORY TRUST COMPANY AND ITS BOOK-ENTRY SYSTEM ................................................................................ H-1

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$7,665,000*

CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 111 (MONTERADO)
SPECIAL TAX BONDS, SERIES 2024

INTRODUCTION
This introduction is not a summary of this Official Statement. It is only a brief description of and guide to, and is qualified by, more complete and detailed information contained in the entire Official Statement, including the cover page and appendices hereto, a nd the documents summarized or described herein. A full review should be made of the entire Official Statement. The offering of the Bonds to potential investors is made only by means of the entire Official Statement.

The purpose of this Official Statemen t, which includes the cover page, the table of contents and the attached appendices, is to provide certain information concerning the issuance of the City of Fontana Community Facilities District No. 111 (Monterado) Special Tax Bonds, Series 2024 (the “Bonds”) by the City of Fontana Community Facilities District No. 111 (Monterado) (the “District”), in the aggregate principal amount set forth on the front cover page. The proceeds of the Bonds will be used to finance certain public facilities and costs with respect thereto related to the development within the District, to fund a reserve fund for the Bonds (the “Reserve Fund”), and to pay costs of issuance of the Bonds.

The Bonds are being issued pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (Section 53311 et seq. of the Government Code of the State of California) (the “Act”), and pursuant to the Indenture, dated as of _____ 1, 2024 (the “Indenture”), by and between the District and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”). The Bonds are secured under the Indenture by a pledge of, constituting a lien on and security interest in, the Net Special Tax Revenues (as defined herein) and any other amounts held in the Special Tax Fund, the Bond Fund and the Reserve Fund established pursuant to the Indenture.

This introduction is not a summary of this Official Statement. It is only a brief description of and guide to, and is qualified by, more complete and detailed information contained in the entire Official Statement and the documents summarized or described herein. A full review should be made of the entire Official Statement.

The sale and delivery of the Bonds to potential investors is made only by means of the entire Official Statement.

All ca pitalized terms used in this Official Statement and not defined shall have the meaning set forth in Appendix F — “SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE ⎯ Definitions” herein.

The District
The District includes approximately 20.57 gross acres and is located in the northwestern portion of the City of Fontana (the “City”). The District is located along the east side of Citrus Avenue at Fontus Way, just north of Duncan Canyon Road. The District is being developed into a gated residential community known as “Monterado” by Lennar Homes of California, LLC, a California limited liability company (“Lennar Homes” or the “Developer”), and is expected to consist of a total of 1 98 detached condominium residential units in two product lines known as “Rivello at Monterado” (“Rivello”) and “Salerno at Monterado” (“Salerno”). Rivello is proposed for 89 single family detached alley load residential units and Salerno is proposed for 109 single family detached cluster residential units. The District is located in Tract Map No. 20224, recorded on March 24, 2022.

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the District, 159 residential units had been completed and conveyed to individual homeowners, Lennar Homes owned six completed model units (one of which was in escrow), seven homes over 95% complete (all of which were in escrow), 13 residential units under construction and less than 95% complete ( all of which were in escrow), and 13 finished lots (none of which were in escrow). Sales contracts are subject to cancelation and, therefore, homes currently in escrow may not result in closed escrows with the prospective homebuyers. Within the District, building permits had been obtained for all 198 planned residential units within the District as of February 15, 2024 ; accordingly, all 198 parcels will be classified as Developed Property for the Fiscal Year 2024-25 Special Tax levy. See “PROPERTY OWNERSHIP AND THE DEVELOPMENT.” The District was formed to finance certain public facilities and services and costs with respect thereto related to the development within the District. The Act was enacted by the California legislature to provide an alternative method of financing certain public capital facilities an d services, especially in developing areas of the State of California (the “State”). Any local agency (as defined in the Act) may establish a community facilities district to provide for and finance the cost of eligible public facilities and services. The legislative body of the local agency which forms a community facilities district acts on behalf of such district as its legislative body. Subject to approval by two-thirds of the votes cast at an election and compliance with the other provisions of the Act, a legislative body of a local agency may issue bonds for a community facilities district and may levy and collect a special tax within such district to repay such indebtedness.

Pursuant to the Act, the City Council adopted the necessary resolutions stating its intent to establish the District, to authorize the levy of special taxes on taxable property within the boundaries of the District, and to have the District incur bonded indebtedness for the purpose of financing authorized facilities (the “Facilities”).

Following public hearings conducted pursuant to the provisions of the Act, the City Council adopted resolutions establishing the District and calling a special election to submit the levy of the special taxes and the incurring of bonded indebtedness to the qualified voters of the District. On September 13, 2022, at an election held pursuant to the Act, the then sole landowner who comprised the qualified voters of the District, Lennar Homes, authorized the District to incur bonded indebtedness in t he aggregate principal amount of not to exceed $8,000,000 to be secured by the levy of Special Taxes (as defined below) on taxable property within the District for the purpose of financing the Facilities, and approved the rate and method of apportionment of the special taxes for the District (the “Rate and Method”). See the caption “SPECIAL RISK FACTORS—Ballot Initiatives; Initiative 1935” for a discussion of an initiative that has qualified for the November 2024 Statewide general election which may affect the September 13, 2022 election held within the District.

The Rate and Method provides for a Facilities Special Tax (as defined in the Rate and Method) (the “Facilities Special Tax”) to be levied for the Special Tax Requirement for Facilities (as defined in the Rate and Method) and a Services Special Tax (as defined in the Rate and Method) (the “Services Special Tax”) to be levied for services described in the Rate and Method. As used in this Official Statement, the terms “Special Tax” or “Special Taxes” refer only to the Facilities Special Tax and does not include the Services Special Tax.

The Services Special Tax is not pledged under the Indenture nor is the Services Special Tax available to pay debt service on the Bonds. The Special Tax will be levied against certain property within the District pursuant to the Act, the Ordinance approving the levy of the Special Tax and the Indenture and in accordance with the Rate and Method. The lien of the Special Tax will be co-equal with the lien of the Services Special Tax.

Security and Sources of Payment for the Bonds
Under the Indenture, the City has pledged to repay the Bonds and any additional bonds issued under the Indenture (the “Additional Bonds”) from Net Special Tax Revenues and any other amounts held in the Special Tax Fund, the Bond Fund and the Reserve Fund. Proceeds of any Additional Bonds may only be applied to refund the Bonds or any Additional Bonds previously issued under the Indenture. See “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS — No Additional Bonds Except for Refunding Bonds.” The Indenture defines “Net Special Tax Revenues” to mean Special Tax Revenues less amounts required to pay Administrative Expenses. The term “Special Tax Revenues” is defined in the Indenture to mean the procee ds of the Special Tax received by or on behalf of the District, including any prepayments thereof, interest and 332

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penalties thereon and proceeds of the redemption or sale of property sold as a result of foreclosure of the lien of the Special Tax, which will be limited to the amount of said lien and interest and penalties thereon. “Administrative Expenses” is defined in the Indenture to mean costs directly related to the administration of the District, including, but not limited to: the costs of computing the Special Tax and preparing the annual Special Tax collection schedules and the costs of collecting the Special Tax, the costs of remitting the Special Tax to the Trustee, the fees and costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture, the costs incurred by the District in complying with the disclosure provisions of any continuing disclosure undertaking and the Indenture, including those related to public inquiries regarding the Special Tax and disclosures to Owners, the costs of the District related to an appeal of the Special Tax, any amounts required to be rebated to the federal government in order for the District to comply with the tax covenants in the Indenture, an allocable share of the salaries of the City staff providing services on behalf of the District directly related to the foregoing and a proportionate amount of City general administrative overhead related thereto, and the costs of foreclosure of any delinquent Special Tax.

Net Special Tax Revenues are the primary security for the repayment of the Bonds and any Additional Bonds. In the event that Net Special Tax Revenues are not paid when due, the only sources of funds available to pay the debt service on the Bonds and any Additional Bonds will be the amounts held by the Trustee for such purpose in the Special Tax Fund, the Bond Fund and the Reserve Fund. See “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS” herein.

NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE DISTRICT (EXCEPT TO THE LIMITED EXTENT SET FORTH IN THE INDENTURE), THE CITY OR THE

STATE OF CALIFORNIA, OR ANY POLITICAL SUBDIVISION THEREOF, IS PLEDGED TO THE PAYMENT OF THE BONDS OR ADDITIONAL BONDS. EXCEPT FOR THE NET SPECIAL TAX

REVENUES, NO OTHER TAXES ARE PLEDGED TO THE PAYMENT OF THE BONDS OR ADDITIONAL BONDS. THE BONDS AND ANY ADDITIONAL BONDS ARE NOT GENERAL OR

SPECIAL OBLIGATIONS OF THE CITY BUT ARE SPECIAL, LIMITED OBLIGATIONS OF THE

DISTRICT PAYABLE SOLELY FROM NET SPECIAL TAX REVENUES AND THE OTHER ASSETS PLEDGED THEREFOR UNDER THE INDENTURE AS MORE FULLY DESCRIBED HEREIN.

Description of the Bonds
The Bonds will be issued and delivered as fully registered bonds, registered in the name of Cede & Co. as nominee of The Depository Trust Company, New York, New York (“DTC”), and will be available to actual purchasers of the Bonds (the “Beneficial Owners”) in the denominations of $5,000 and any integral multiples thereof under the book -entry system maintained by DTC, only through brokers and dealers who are or act through DTC Participants as described herein. Beneficial Owners will not be entitled to receive physical delivery of the Bonds. In the event that the book-entry only system described herein is no longer used with respect to the Bonds, the Bonds wi ll be registered and transferred in accordance with the Indenture. See Appendix H — “INFORMATION CONCERNING THE DEPOSITORY TRUST COMPANY AND ITS BOOK -ENTRY SYSTEM” herein.

Principal of, premium, if any, and interest on the Bonds is payable by the Trustee to DTC. Disbursement of such payments to DTC Participants is the responsibility of DTC and disbursement of such payments to the Beneficial Owners is the responsibility of DTC Participants. In the event that the book-entry only system is no longer used with respect to the Bonds, the Beneficial Owners will become the registered owners of the Bonds and will be paid principal and interest by the Trustee, all as described herein. See Appendix H — “INFORMATION CONCERNING THE DEPOSITORY TRUST COMPANY AND ITS BO OK-ENTRY SYSTEM” herein.
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The Bonds are subject to optional redemption, mandatory redemption from Special Tax prepayments and mandatory sinking fund redemption as described herein. For a more complete description of the Bonds and the basic documentation pu rsuant to which they are being sold and delivered, see “THE BONDS” and Appendix F — “SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE” herein.

Appraisal Report
The District has obtained an appraisal of the Taxable Property (as defined herein) included in the District dated March 28, 2024, with a date of value as of February 15, 2024 (the “Appraisal”). The Appraisal was prepared for the District by Kitty Siino & Associates, Inc., Tustin, California (the “Appraiser”). Subject to the limitations set forth in the Appraisal, the Appraiser is of the opinion that, as of February 15, 2024 the minimum market value of the Taxable Property within the District was not less than $91,640,445 (the “Appraised Value”).

See “THE COMMUNITY FACILITIES DISTRICT — Property Value s” and “THE COMMUNITY FACILITIES DISTRICT — Value-to-Lien Ratios.” A copy of the Appraisal is included as Appendix B to this Official Statement. It is a condition precedent to the issuance of the Bonds that the Appraiser deliver a certificate stating that nothing has come to the attention of the Appraiser subsequent to the date of the Appraisal that would lead the Appraiser to believe that the value of the Taxable Property (as defined in the Rate and Method) in the District is less than the minimum market value of such property reported in the Appraisal. However, the Appraiser has not performed any procedures since the date of value to obtain knowledge of such events or occurrences nor is it obligated to do so in the future.

Price Point Study
In connection with the formation of the District, the City hired Empire Economics, Inc., Capistrano Beach, California (the “Price Point Consultant”) to prepare a price point study of the prices of the homes planned within the District, dated June 23, 2022 (the “Original Price Point Study”). The Special Tax rates set forth in the Rate and Method were based in part on the prices set forth in the Original Price Point Study. In connection with and in preparation for the issuance of the Bonds, the City hired the Price Poi nt Consultant to conduct an update to the Original Price Point Study within the District, dated March 4, 2024 (the “Updated Price Point Study”). Pursuant to Section C of the Rate and Method, prior to the issuance of Bonds, the City is required to amend the Assigned Facilities Special Tax (as defined in the Rate and Method) to the extent necessary to cause the total effective tax burden for residential property in the District to not exceed 1.95% of the minimum sales prices set forth in the Updated Price Po int Study. A copy of the Updated Price Point Study is included as Appendix C to this Official Statement. Based on the conclusions of the Updated Price Point Study, the Facilities Special Tax, the Services Special Tax and all direct and overlapping proper ty taxes, special assessments and other special taxes, the City does not expect to amend the Assigned Facilities Special Tax because effective tax rates are not projected to exceed 1.95% for any parcel. See “THE COMMUNITY FACILITIES DISTRICT — Direct and Overlapping Debt — Table 3” — Projected Total Effective Tax Rate for Individually Owned Residential Property.” See also “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS — Rate and Method of Apportionment.”
Professionals Involved in the Offering
U.S. Bank Trust Company, National Association, Los Angeles, California, will act as Trustee under the Indenture and as the initial Dissemination Agent under the District Continuing Disclosure Agreement. Stifel, Nicolaus & Company, Incorporated is the Underwriter of the Bonds. The validity of the Bonds and certain other legal matters are subject to the approving opinion of Orrick Herrington & Sutcliffe LLP, Bond Counsel to the District. CSG Advisors Incorporated, San Francisco, California, is acting as Municipal Advisor for the City in connection with the Bonds. Kitty Siino & Associates, Inc., Tustin, California, is acting as the Appraiser to the District. DTA, Inc. is acting as the Special Tax Consultant to the District. Empire Economics, Inc. is acting as the Price Point Consultant to the District. Certain legal matters will be passed on for the City and the District by Best Best & Krieger LLP, Riverside, California, in its capacity as City Attorney, and Stradling Yocca Carlson & 334

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Rauth LLP, Newport Beach, California, as Disclosure Counsel. Certain legal matters will be passed upon for the Underwriter by its counsel, Anzel Galvan LLP, San Francisco, California.

For information concerning respects in which certain of the above -mentioned professionals, advisors, counsel and agents may have a financial or other interest in the offering of the Bonds, see “FINANCIAL INTERESTS” herein.

Continuing Disclosure
The District will agree to provide, or cause to be provided, to the Municipal Securities Ru lemaking Board’s Electronic Municipal Market Access system available on the Internet at http://emma.msrb.org (“EMMA”) certain annual financial information and operating data. The District will further agree to provide notice of certain listed events. The se covenants will be made in order to assist the Underwriter in complying with Securities and Exchange Commission Rule 15c2-12(b)(5) (the “Rule”). See “CONTINUING DISCLOSURE” herein.

Bond Owners’ Risks
Certain events could affect the ability of the Distric t to pay the principal of and interest on the Bonds when due. See the section of this Official Statement entitled “SPECIAL RISK FACTORS” for a discussion of certain factors which should be considered, in addition to other matters set forth herein, in eval uating an investment in the Bonds.

Other Information
This Official Statement speaks only as of its date, and the information contained herein is subject to change.

Brief descriptions of the Bonds and the Indenture are included in this Official Statement. Such descriptions and information do not purport to be comprehensive or definitive. All references herein to the Indenture, the Bonds and the constitution and laws of the State as well as the proceedings of the City Council, acting as the legislative body of the District, are qualified in their entirety by references to such documents, laws and proceedings, and with respect to the Bonds, by reference to the Indenture.

Copies of the Indenture, the District Continuing Disclosure Agreement and other documents and information referred to herein are available for inspection and (upon request and payment to the City of a charge for copying, mailing and handling) for delivery from the City at 8353 Sierra Avenue, Fontana, California 92335, Attention: Jessica Brown.
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ESTIMATED SOURCES AND USES OF FUNDS
The following table sets forth the expected sources and uses of Bond proceeds and certain other amounts.

Sources:

Principal Amount of the Bonds
[Plus/Less]: [Net] Original Issue [Premium/Discount]
Less Underwriter’s Discount
Plus Funds on Hand
Total
Uses:

Improvement Fund(1)
Reserve Fund(2)
Costs of Issuance Fund
Administrative Expense Fund
Total

(1) Consists of _____________ to be deposited into the Acquisition Account and $ __________ to be deposited into the Community Benefit Facilities Account.
(2) Equal to the initial Reserve Requirement.

THE BONDS
General Provisions
The Bonds will be issued in fully registered form without coupons in denominations of $5,000 and any integral multiple thereof (“Authorized Denominations”). The Bonds will be dated the date of issuance thereof.

The Bonds are scheduled to mature on Septem ber 1, in the years and in the principal amounts, and will bear interest at the rates per annum, shown on the inside front cover page of this Official Statement. Interest on the Bonds will be computed on the basis of a 360-day year consisting of twelve 30-day months and will be payable on March 1 and September 1 of each year, commencing September 1, 2024 (each an “Interest Payment Date”).

Interest on each Bond will be payable from the Interest Payment Date next preceding the date of authentication thereof unless (i) such Bond is authenticated on or before an Interest Payment Date and after the close of business on the fifteenth calendar day of the month preceding such Interest Payment Date, whether or not such day is a Business Day (the “Record Date”) in w hich event interest thereon will be payable from such Interest Payment Date, (ii) such Bond is authenticated on or before the first Record Date, in which event interest thereon will be payable from the Closing Date or (iii) interest on such Bond is in default as of the date of authentication thereof, in which event interest thereon will be payable from the date to which interest has been previously paid or duly provided for.

The interest on, and principal of and redemption premiums, if any, on the Bonds are payable in lawful money of the United States of America. Interest is payable by check of the Trustee mailed by first class mail, postage prepaid, on each Interest Payment Date to the Owners of the Bonds at their respective addresses shown on the Registration Books as of the close of business on the preceding Record Date (except that interest on any Bond which is not punctually paid or duly provided for on any Interest Payment Date will, if and to the extent that amounts subsequently become available therefor, be payable on a payment date established by the Trustee to the Person in whose name the ownership of such Bond is registered on the Registration Books at the close of business on a special record date to be established by the Trustee pursuant to the Indenture). Payment of principal of any Bond will be made only upon presentation and surrender thereof at maturity or upon earlier redemption at the Office of the Trustee.

The Bonds will initially be issued in book -entry form, and DTC will act as securitie s depository. So long as the Bonds are held in book-entry form, principal of, premium, if any, and interest on the Bonds will be 336

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paid by the Trustee directly to DTC for distribution to the Beneficial Owners of the Bonds in accordance with procedures adopted by DTC. See Appendix H — “INFORMATION CONCERNING THE DEPOSITORY TRUST COMPANY AND ITS BOOK-ENTRY SYSTEM.”
The Bonds are not general obligations of the District but are special, limited obligations of the District payable solely from Net Special Tax Rev enues and the other amounts held under the Indenture in the Special Tax Fund, the Bond Fund and the Reserve Fund. Neither the faith and credit nor the taxing power of the District (except to the limited extent set forth in the Indenture), the City, the St ate, or any political subdivision thereof, is pledged to the payment of the Bonds or Additional Bonds. See “SPECIAL RISK FACTORS — Bonds Are Limited Obligations.”
Redemption
Optional Redemption.* The Bonds maturing on and after September 1, 20__ shall be subject to optional redemption, in whole, or in part in Authorized Denominations, on any date on or after September 1, 20__, from any source of available funds, at the following respective Redemption Prices (expressed as percentages of the principal amount of the Bonds to be redeemed), plus accrued interest thereon to the date of redemption:

Redemption Dates Redemption Price
September 1, 20__ through August 31, 20__ 103%
September 1, 20__ through August 31, 20__ 102
September 1, 20__ through August 31, 20__ 101
September 1, 20__ and thereafter 100
Mandatory Redemption from Special Tax Prepayments . The Bonds are subject to mandatory redemption, in whole, or in part in Authorized Denominations, on any Interest Payment Date, from and to the extent of Special Tax prepayments required to be applied thereto and any related proportional amounts in the Reserve Fund required to be applied thereto pursuant to the Indenture (see “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS — Reserve Fund” and “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS — Special Tax Fund”) at the following respective Redemption Prices (expressed as percentages of the principal amount of the Bonds to be redeemed), plus accrued interest thereon to the date of redemption:

Redemption Dates Redemption Price
Any Interest Payment Date through March 1, 20__ 103%
September 1, 20__ and March 1, 20__ 102
September 1, 20__ and March 1, 20__ 101
September 1, 20__ and thereafter 100
Mandatory Sinking Fund Redemption . The Bonds maturing September 1, 20__ shall be subject to mandatory sinking fund redemption, in part, on September 1 in each year, commencing September 1, 20__, at a Redemption Price equal to the principal amount of the Bonds maturing September 1, 20__ to be redeemed, without premium, plus accrued interest thereon to the date of redemption, in the aggregate respective principal amounts in the respective years as follows:

Sinking Fund
Redemption Date
(September 1)
Principal Amount
to be
Redeemed

(Maturity)

* Preliminary, subject to change.
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If some but not all of the Bonds maturing on September 1, 20__ are redeemed pursuant to the optional redemption provisions of the Indenture described above, the principal amount of the Bonds maturing on September 1, 20__ to be redeemed by mandatory sinking fund redemption as described above on any subsequent September 1 shall be reduced, by $5,000 or an integral multiple thereof, as designated by the District in a Written Certificate of the District submitted to the Trustee; provided, however, that the aggr egate amount of such reductions shall not exceed the aggregate amount of the Bonds maturing on September 1, 20__ so optionally redeemed. If some but not all of the Bonds maturing on September 1, 20__ are redeemed pursuant to the mandatory redemption from Special Tax prepayments provisions of the Indenture, the principal amount of the Bonds maturing on September 1, 20__ to be redeemed by mandatory sinking fund redemption as described above on any subsequent September 1 shall be reduced by the aggregate prin cipal amount of the Bonds maturing on September 1, 20__ so mandatorily redeemed from Special Tax prepayments, such reduction to be allocated among redemption dates as nearly as practicable on a pro rata basis in amounts of $5,000 or integral multiples thereof, as determined by the Trustee, notice of which determination shall be given by the Trustee to the District.

The Bonds maturing September 1, 20__ shall be subject to mandatory sinking fund redemption, in part, on September 1 in each year, commencing Sep tember 1, 20__, at a Redemption Price equal to the principal amount of the Bonds maturing September 1, 20__ to be redeemed, without premium, plus accrued interest thereon to the date of redemption, in the aggregate respective principal amounts in the respe ctive years as follows:

Sinking Fund
Redemption Date
(September 1)
Principal Amount
to be
Redeemed

(Maturity)

If some but not all of the Bonds maturing on September 1, 20__ are redeemed pursuant to the optional redemption provisions of the Indenture described above, the principal amount of the Bonds maturing on September 1, 20__ to be redeemed by mandatory sinking fund redemption as described above on any subsequent September 1 shall be reduced, by $5,000 or an integral multiple thereof, as designated by the District in a Written Certificate of the District submitted to the Trustee; provided, however, that the aggregate amount of such reductions shall not exceed the aggregate amount of the Bonds maturing on September 1, 20__ so optionally redeemed. If some but not all of the Bonds maturing on September 1, 20__ are redeemed pursuant to the mandatory redemption from Special Tax prepayments provisions of the Indenture, the princ ipal amount of the Bonds maturing on September 1, 20__ to be redeemed by mandatory sinking fund redemption as described above on any subsequent September 1 shall be reduced by the aggregate principal amount of the Bonds maturing on September 1, 20__ so mandatorily redeemed from Special Tax prepayments, such reduction to be allocated among redemption dates as nearly as practicable on a pro rata basis in amounts of $5,000 or integral multiples thereof, as determined by the Trustee, notice of which determination shall be given by the Trustee to the District.

The Bonds maturing September 1, 20__ shall be subject to mandatory sinking fund redemption, in part, on September 1 in each year, commencing September 1, 20__, at a Redemption Price equal to the principal amount of the Bonds maturing September 1, 20__ to be redeemed, without premium, plus accrued interest thereon to the date of redemption, in the aggregate respective principal amounts in the respective years as follows:

Sinking Fund
Redemption Date
(September 1)
Principal Amount
to be
Redeemed

(Maturity)

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If some but not all of the Bonds maturing on September 1, 20__ are redeemed pursuant to the optional redemption provisions of the Indenture described above, the principal amount of the Bonds maturing on September 1, 20__ to be redeemed by mandatory sinking fund redemption as described above on any subsequent September 1 shall be reduced, by $5,000 or an integral multiple thereof, as designated by the District in a Written Certificate of the District submitted to the Trustee; provided, however, that the aggregate amount of such reductions shall not exceed the aggregate amount of the Bonds maturing on September 1, 20__ so optionally redeemed. If some but not all of the Bonds maturing on September 1, 20__ are redeemed pursuant to the mandatory redemption from Special Tax prepayments provisions of the Indenture, the princ ipal amount of the Bonds maturing on September 1, 20__ to be redeemed by mandatory sinking fund redemption as described above on any subsequent September 1 shall be reduced by the aggregate principal amount of the Bonds maturing on September 1, 20__ so mandatorily redeemed from Special Tax prepayments, such reduction to be allocated among redemption dates as nearly as practicable on a pro rata basis in amounts of $5,000 or integral multiples thereof, as determined by the Trustee, notice of which determination shall be given by the Trustee to the District.

The Bonds maturing September 1, 20__ shall be subject to mandatory sinking fund redemption, in part, on September 1 in each year, commencing September 1, 20__, at a Redemption Price equal to the principal amount of the Bonds maturing September 1, 20__ to be redeemed, without premium, plus accrued interest thereon to the date of redemption, in the aggregate respective principal amounts in the respective years as follows:

Sinking Fund
Redemption Date
(September 1)
Principal Amount
to be
Redeemed

(Maturity)
If some but not all of the Bonds maturing on September 1, 20__ are redeemed pursuant to the optional redemption provisions of the Indenture described above, the principal amount of the Bonds maturing on September 1, 20__ to be redeemed by mandatory sinking fund redemption as described above on any subsequent September 1 shall be reduced, by $5,000 or an integral multiple thereof, as designated by the District in a Written Certificate of the District submitted to the Trustee; provided, however, that the aggregate amount of such reductions shall not exceed the aggregate amount of the Bonds maturing on September 1, 20__ so optionally redeemed. If some but not all of the Bonds maturing on September 1, 20__ are redeemed pursuant to the mandatory redemption from Special Tax prepayments provisions of the Indenture, the princ ipal amount of the Bonds maturing on September 1, 20__ to be redeemed by mandatory sinking fund redemption as described above on any subsequent September 1 shall be reduced by the aggregate principal amount of the Bonds maturing on September 1, 20__ so mandatorily redeemed from Special Tax prepayments, such reduction to be allocated among redemption dates as nearly as practicable on a pro rata basis in amounts of $5,000 or integral multiples thereof, as determined by the Trustee, notice of which determination shall be given by the Trustee to the District.

Selection of Bonds for Redemption. Whenever provision is made in the Indenture for the redemption of less than all of the Bonds and Additional Bonds, the Trustee will select the Bonds and Additional Bonds to be redeemed from all Bonds and Additional Bonds not previously called for redemption (a) with respect to any optional redemption of Bonds and Additional Bonds of a Series, among maturities of the Bonds and Additional Bonds of such Series as directed in a Written Request of the District (b) with respect to any mandatory redemption of Bonds or Additional Bonds from prepayments of the Special Tax, among maturities of all Series of Bonds and any Additional Bonds on a pro rata basis as nearly as practicable, and (c) with respect to any other redemption of Additional Bonds, among maturities as provided in the Supplemental Indenture pursuant to which such Additional Bonds are issued. The Trustee shall select for redemption the Bonds and any Additional Bonds of the same Series with the same maturity by lot in any manner that the Trustee, in its sole discretion, shall deem appropriate. For purposes of such selection, all Bonds and Additional Bonds shall be deemed to be comprised 339

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of the greatest number of separate denominations that would result in each such denomination being an Authorized Denomination and each such separate denomination shall be treated as a separate Bond or Additional Bond that may be separately redeemed.

Notice of Redemption. If the Bonds are held in book-entry form, notice of redemption will be mailed to DTC and not to the Beneficial Owners of the Bonds under the DTC book-entry system. Neither the District nor the Trustee is responsible for giving notice of redemption to the Beneficial Owners . See Appendix H — “INFORMATION CONCERNING THE DEPOSITORY TRUST COMPANY AND ITS BOOK -ENTRY SYSTEM” herein.

The Indenture provides that the Trustee on behalf and at the expense of the District will give notice of any redemption by first class mail to the r espective Owners of any Bonds designated for redemption at their respective addresses appearing on the Registration Books and to the Original Purchaser, at least 30 but not more than 60 days prior to the date fixed for redemption. Such notice of redemption will state the date of the notice, the redemption date, the redemption place and the Redemption Price and shall designate the CUSIP numbers, if any, the Bond numbers and the maturity or maturities of the Bonds to be redeemed (except in the event of redemption of all of the Bonds of such maturity or maturities in whole). The notice of redemption will require that the Bonds to be redeemed be surrendered at the Office of the Trustee for redemption at the Redemption Price, and give notice that further intere st on such Bonds will not accrue from and after the date fixed for redemption. Neither the failure to receive any notice so mailed, nor any defect in such notice, will affect the validity of the proceedings for the redemption of the Bonds or the cessation of accrual of interest thereon from and after the date fixed for redemption.

With respect to any notice of any optional redemption of Bonds, unless at the time such notice is given the Bonds to be redeemed shall be deemed to have been paid within the meaning of the Indenture, such notice will state that such redemption is conditional upon receipt by the Trustee, on or prior to the date fixed for such redemption, of moneys that, together with other available amounts held by the Trustee, are sufficient to pay the Redemption Price of, and accrued interest on, the Bonds to be redeemed, and that if such moneys shall not have been so received said notice shall be of no force and effect and the District will not be required to redeem such Bonds. In the event a notice of redemption of Bonds contains such a condition and such moneys are not so received, the redemption of Bonds as described in the conditional notice of redemption will not be made and the Trustee will, within a reasonable time after the date on which such redemption was to occur, give notice to the Persons and in the manner in which the notice of redemption was given, that such moneys were not so received and that there shall be no redemption of Bonds pursuant to such notice of redemption.

Effect of Notice of Redemption. If, on said date fixed for redemption, moneys for the Redemption Price of all the Bonds to be redeemed, together with interest to said date, is held by the Trustee so as to be available therefor on such date, and, if notice of redemption thereof will have been mailed as aforesaid and not canceled, then, from and after said date, interest on said Bonds will cease to accrue and become payable. All moneys held by or on behalf of the Trustee for the redemption of Bonds will be held in trust for the account of the Owners of the Bonds so to be redeemed without liability to such Owners for interest thereon. 340

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Debt Service Schedule
Year Ending
September 1 Principal(1) Interest Total
2024 $ $ $
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
TOTAL:

(1) Includes mandatory sinking fund redemption.

Source: The Underwriter.

SECURITY AND SOURCES OF PAYMENT FOR THE BONDS
General
The Bonds are special, limited obligations of the District, and, except as otherwise provided in the Indenture, they are payable solely from Net Special Tax Revenues. The Indenture defines “Net Special Tax Revenues” to mean Special Tax Revenues less amounts required to pay Administrative Expenses. The term “Special Tax Revenues” is defined in the Indenture to mean the proc eeds of the Special Tax received by or on behalf of the District, including any prepayments thereof, interest and penalties thereon and proceeds of the redemption or sale of property sold as a result of foreclosure of the lien of the Special Tax (which shall be limited to the amount of said lien and interest and penalties thereon). The Indenture defines the term “Special Tax” as the special tax described and defined in the Rate and Method as the “ Facilities Special Tax” approved by the qualified electors of the District. “Administrative Expenses” is defined in the Indenture to mean costs directly 341

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related to the administration of the District, including, but not limited to: the costs of computing the Special Tax and preparing the annual Special Tax collection schedules and the costs of collecting the Special Tax, the costs of remitting the Special Tax to the Trustee, the fees and costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture, the costs i ncurred by the District in complying with the disclosure provisions of any continuing disclosure undertaking and the Indenture, including those related to public inquiries regarding the Special Tax and disclosures to Owners, the costs of the District related to an appeal of the Special Tax, any amounts required to be rebated to the federal government in order for the District to comply with the tax covenants in the Indenture, an allocable share of the salaries of the City staff providing services on behalf of the District directly related to the foregoing and a proportionate amount of City general administrative overhead related thereto, and the costs of foreclosure of any delinquent Special Tax.

Under the Rate and Method, parcels of Taxable Property, exclus ive of Taxable Public Property and Taxable Property Owner Association Property, are classified as Developed Property if a building permit has been obtained for such parcel by May 1 of the fiscal year preceding the Special Tax levy. For the projected Fiscal Year 2024-25 Special Tax levy, based on the development status within the District as of February 15, 2024, all 198 parcels of Taxable Property within the District will be classified as Developed Property. See “PROPERTY OWNERSHIP AND THE DEVELOPMENT.” Under no circumstances may the amount of Special Tax levied by the District in any year exceed the maximum rates approved by the qualified electors within the District, as set forth in the Rate and Method. A copy of the Rate and Method is attached to this Official Statement as Appendix A.

In addition to the Net Special Tax Revenues, any other amounts held by the Trustee in the Special Tax Fund, the Bond Fund and the Reserve Fund are pledged pursuant to the Indenture to secure the payment of the principal of, premium, if any, and interest on the Bonds and any Additional Bonds in accordance with their respective terms, the Indenture and the Act. However, those amounts are pledged subject to the provisions of the Indenture permitting the application thereof for the purposes set forth in the Indenture. Amounts on deposit in the Improvement Fund, the Costs of Issuance Fund, the Redemption Fund, the Administrative Expense Fund and the Rebate Fund are not pledged to the payment of any of the Bonds or any Additional Bonds.

NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE DISTRICT (EXCEPT TO THE LIMITED EXTENT SET FORTH IN THE INDENTURE), THE CITY OR THE

STATE OF CALIFORNIA, OR ANY POLITICAL SUBDIVISION THEREOF, IS PLEDGED TO THE PAYMENT OF THE BONDS OR ADDI TIONAL BONDS. EXCEPT FOR THE NET SPECIAL TAX

REVENUES, NO OTHER TAXES ARE PLEDGED TO THE PAYMENT OF THE BONDS OR ADDITIONAL BONDS. THE BONDS AND ANY ADDITIONAL BONDS ARE NOT GENERAL OR

SPECIAL OBLIGATIONS OF THE CITY BUT ARE SPECIAL, LIMITED OBLIGATIONS OF THE

DISTRICT PAYABLE SOLELY FROM NET SPECIAL TAX REVENUES AND THE OTHER ASSETS PLEDGED THEREFOR UNDER THE INDENTURE AS MORE FULLY DESCRIBED HEREIN.

Special Tax
Pursuant to the Act, the City Council adopted a resolution on July 26, 2022 stating its inten tion to establish the District and to levy a special tax within the District. In accordance with the provisions of the Act, the City Council established the District on September 13, 2022 for the purpose of, among other things, financing certain public in frastructure improvements necessary for the proposed development within the District. At a special election held on September 13, 2022, the then sole landowner of the property within the District, Lennar Homes, authorized the District to incur indebtedness in an amount not to exceed $8,000,000 and approved the Rate and Method. The Rate and Method is set forth in Appendix A hereto. See the caption “SPECIAL RISK FACTORS—Ballot Initiatives; Initiative 1935” for a discussion of an initiative that has qualifi ed for the November 2024 Statewide general election which may affect the September 13, 2022 election held within the District.
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Pursuant to Section C of the Rate and Method, prior to the issuance of the Bonds, if necessary, the City is required to amend the Assigned Facilities Special Tax (as defined in the Rate and Method) to the extent necessary to cause the Total Tax Burden (as defined in the Rate and Method) for one or more land use classes of residential property in the District to not exceed 1.95% of t he Minimum Sale Prices (as defined in the Rate and Method) set forth in the Updated Price Point Study. A copy of the Updated Price Point Study is included as Appendix C to this Official Statement. Based on the conclusions of the Updated Price Point Study, the Facilities Special Tax, the Services Special Tax and all direct and overlapping property taxes, special assessments and other special taxes, the City does not expect to amend the Assigned Facilities Special Tax. See “ — Rate and Method of Apportionme nt” below. See also “THE COMMUNITY FACILITIES DISTRICT — Direct and Overlapping Debt — Table 3 — Projected Total Effective Tax Rate for Individually Owned Residential Property.”
Pursuant to the Indenture, the District has covenanted that it will fix and levy the Special Tax within the District in each Fiscal Year in accordance with the Rate and Method in an amount sufficient (subject to the limitations contained in the Rate and Method as to the maximum Special Tax that may be levied on each parcel) to yield Special Tax Revenues in the amount required for (i) the payment of principal of and interest on any Outstanding Bonds and any Additional Bonds becoming due and payable during the Corresponding Bond Year, (ii) any necessary replenishment of the Reserve Fu nd, and (iii) the payment of Administrative Expenses estimated to be paid from such Special Tax Revenues, taking into account the balances in the funds and accounts established under the Indenture. See Appendix F — “SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE — Certain Covenants Under the Indenture.” Notwithstanding this covenant, the amount of Special Tax actually collected each year may be less than the amount described for a variety of different reasons.

See “SPECIAL RISK FACTORS — Levy of the Special Tax.”
The Bonds have been structured so that, beginning in Fiscal Year 2024-25, the Assigned Facilities Special Tax rates set forth in the Rate and Method that may be levied within the District, based on the expected buildout of the District, are at le ast 110% of debt service on the Bonds in each Bond Year net of estimated Administrative Expenses of $40,000 escalating 2% each fiscal year beginning July 1, 2025. The Special Tax levied in any fiscal year may not exceed the maximum rates authorized pursua nt to the Rate and Method. See Appendix A ⎯ “RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX.” There is no assurance that the Special Tax proceeds will, in all circumstances, be adequate to pay the principal of and interest on the Bonds when due. Pursuant to the Act, the Special Tax levied in any Fiscal Year against any parcel of residential property in the District may not be increased as a consequence of delinquency or default by the owners of any other parcels within the 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. See “SPECIAL RISK FACTORS ⎯ Levy of the Special Tax” and “SPECIAL RISK FACTORS ⎯ Exempt Properties.” Rate and Method of Apportionment
General. The Rate and Method is to be applied by the District each year for the purpose of determining the amount of the Special Tax to be levied against each Assessor’s Parcel of Taxable Property within the District.

For purposes of the discussion of the Rate and Method only, terms with initial capital letters that are not otherwise defined in this Official Statement shall have the respective meanings assigned to them in the Rate and Method, a copy of which appears in Appendix A.

Under the terms of the Inde nture, prior to August 1 of each year, the District will ascertain from the County of San Bernardino Assessor the relevant parcels on which the Special Tax are to be levied, taking into account any parcel splits during the preceding and then current year. The District will levy the Special Tax by August 10 of each Fiscal Year that the Bonds are Outstanding, or otherwise such that the computation of the levy is complete before the final date on which the auditor (the “Auditor”) of the County of San Bernardino (the “County”) will accept the transmission of the Special Tax amounts for the parcels within the District for inclusion on the next real property tax roll. Upon the completion of the computation of the amounts of the levy, the District 343

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will prepare, o r cause to be prepared, and shall transmit to the Auditor, such data as the Auditor requires to include the levy of the Special Tax on the next real property tax roll.

The Special Tax levied in any Fiscal Year may not exceed the maximum rates authorized pu rsuant to the Rate and Method. See Appendix A — “RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX” hereto. Although the Bonds have been structured so that, beginning in Fiscal Year 2024-25, the Assigned Facilities Special Tax rates set forth in the Rate and Method that may be levied based on expected build out of the District are at least 110% of debt service on the Bonds net of estimated Administrative Expenses of $40,000 escalating 2% each fiscal year beginning July 1, 2025, there is no assurance that the proceeds of the Special Tax will, in all circumstances, be adequate to pay the principal of and interest on the Bonds when due. See “SPECIAL RISK FACTORS — Levy of the Special Tax” herein.

Rate and Method of Appo rtionment of Special Tax . The District is legally authorized and has covenanted to cause the levy of the Special Taxes in an amount determined according to a methodology, i.e., the Rate and Method, which the City Council and the qualified electors within the District have approved. The Rate and Method apportions the total amount of the Facilities Special Tax and Services Special Tax to be collected among the Taxable Property in the District as more particularly described below. The Facilities Special Tax is referred to herein as the “Special Tax” or the “Special Taxes.” The Services Special Tax is not pledged to the repayment of the Bonds and is not available to pay debt service on the Bonds.

The following is a synopsis of the provisions of the Rate and Method, which should be read in conjunction with the complete text of the Rate and Method which is attached as Appendix A — “RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX.” The meaning of the defined terms used in this section are as set forth in Appendix A. This section provides only a summary of the Rate and Method, and is qualified by more complete and detailed information contained in the Rate and Method attached as Appendix A. As used in the Rate and Method, “Bonds” means the Bonds and any Additional Bonds. “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 in the Rate and Method of Apportionment of Special Tax.
“Developed Property” means, for each Fiscal Year, (i) with respect to the Facilities Special Tax, all Taxable Property, exclusive of Taxable Public Property and Taxable Property Owner Association Property, for which a building permit for new construction, other than the construction of a garage, parking lot, or parking structure, was issued after January 1, 2022 and on or before May 1 of the Fiscal Year preceding the Fiscal Year for which the Facilities Special Taxes are being levied, and (ii) with respect to the Services Special Tax, all Taxable Property, exclusive of Taxable Public Property and Taxable Property Owner Association Property, (a) for which the Final Residential Subdivision was recorded prior to the Fiscal Year for which the Services Special Taxes are being levied, or (b) for which a building permit has been issued with respect to Non-Residential Property on or before May 1 of the Fiscal Year preceding the Fiscal Year for which the Services Special Taxes are being levied.
“Facilities Special Tax ” means the special tax authorized to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property within the District to fund the Special Tax Requirement for Facilities as set forth in the Rate and Method of Apportionment of Special Tax. “Lower Income Households Welfare Exemption Property” means, for each Fiscal Year, an Assessor’s Parcel within the boundaries of the District that is entitled to a welfare exemption under subdivision (g) of Section 214 of the California Revenue and Taxation Code (or any successor statute), as indicated in the County’s assessment roll finalized as of the last preceding January 1. 344

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“Residential Floor Area” means a ll of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area.

The determination of Residential Floor Area for an Assessor’s Parcel shall be as set forth in the building permit(s) issued for such Assessor’s Parcel and/or as set forth in the appropriate records kept by the Building and Safety Department of the City, or other applicable City department, as determined by the CFD Administrator. “Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit(s) has been issued by the City permitting the construction thereon of one or more residential dwelling units.
“Services Special Tax ” means the special tax authorized to be levied in each Fiscal Year on each Assessor’s Parcel of Developed Property within the District to fund the Special Tax Requirement for Services as set forth in the Rate and Method of Apportionment of Special Tax. The Services Special Tax is not pledged to the repayment of the Bonds and is not available to pay debt service on the Bonds. “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 Bonds, including but not limited to, costs of credit enh ancement 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 cause an increase in the Facilities Special Tax levy on Undeveloped Property.
“Taxable Property” means all of the Assessor’s Parcels within the boundaries of the District which are not exempt from the Special Tax pursuant to law or described below under the subheading “ — Exempt Property.” Each Fiscal Year, all Taxable Property within the District will be classified as Developed Property, Undeveloped Property, Taxable Property Owner Association Property, or Taxable Public Property, and will be subject to Special Taxes in accordance with the Rate and Method described below under the subheading “Maximum Special Tax, Assigned Special Tax and Backup Special Tax.” “Taxable Property Owner Association Property ” means all Assessor’s Parcels of Property Owner Association Property that are not exempt from the Special Tax described below under the subheading “— Exempt Proper ty,” and further described in Section E of the Rate and Method attached hereto as Appendix A.
“Taxable Public Property” means all Assessor’s Parcels of Public Property that are not exempt from the Special Tax described below under the subheading “— Exempt Property,” and further described in Section E of the Rate and Method attached hereto as Appendix A.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Taxable Public Property or Taxable Property Owner Association Property.

Exempt Property. No Facilities Special Tax will be levied on up to 9.0 Acres of Public Property and/or Property Owner Association Property in the District. Tax -exempt status will be assigned by the CFD Administrator in chronological order in which property in the District 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 will, from that point forward, be subject to the Facilities Special Tax. 345

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Notwithstanding the above, an Assessor’s Parcel in the District that is transferred to a public agency or property owner’s association prior to the issuance of the first series of bonds that causes the Acreage of Public Property and Property Owner Association Property to exceed the 9.0 Acreage limit that can be designated by the CFD Administrator under the Rate and Method will also be exempted from the Special Tax.

Public Property or Property Owner Association Property that is not exempt from the Facilities Special Tax as described above will be subject to the levy of the Facilities Special Tax and will be taxed Proportionately as part of the fourth step described under the heading “ Method of Apportionment of Special Tax ” below. The District will not levy a Services Special Tax on Undeveloped Property, Taxable Public Prope rty, Taxable Property Owner Association Property or Public Property and Property Owner Association Property described below under the subheading “— Exempt Property,” and further described in Section E of the Rate and Method attached hereto as Appendix A.

Under the Rate and Method, no Special Tax shall be levied on Lower Income Household 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 the Rate and Method as if such Assessor’s Parcel were not classified as Lower Income Households Welfare Exempt ion Property.

Senate Bill 1473, the “Local Government Omnibus Act of 2020,” amended Government Code Section 53340(c) to provide that in a community facilities district in which the levy of a special tax is authorized by an ordinance adopted on or after Ja nuary 1, 2020, a property receiving a welfare exemption under subdivision (g) of Section 214 of the California Revenue and Taxation Code shall be exempt from the special tax unless debt is outstanding and the property was subject to the special tax prior t o receiving the exemption, in which case the property shall remain subject to the special tax and the special tax shall be enforceable against the property.

Therefore, pursuant to the Rate and Method and California law, and given that no property is subje ct to the welfare exemption as of the date hereof, the Special Tax will be applicable to Lower Income Household Welfare Exemption Property so long as the Bonds are outstanding.

Maximum Special Tax, Assigned Special Tax and Backup Special Tax. The Maximum Special Tax, Assigned Special Tax and Backup Special Tax for the Facilities Special Tax provided for in the Rate and Method are as follows:

Facilities Special Tax.

Developed Property. The Maximum Facilities Special Tax for each Assessor’s Parcel classifie d as Developed Property will 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.

Assigned Facilities Special Tax. Residential Property will be assigned to Land Use Classes 1 through 5, as identified in Table 1 in Section C of the Rate and Method based on the Residential Floor Area for each residential dwelling unit. Non-Residential Property will be assigned to Land Use Class 6. The Assigned Facilities Special Tax applicable to an Assessor’s Parcel classified as Residential Property ranges from $3,258 per taxable unit with a Residential Floor Area of 2,250 square feet or greater to $2,907 per taxable unit with a Residential Floor Area of less than 1,650 square feet. The Assigned Facilities Special Tax applicable to an Assessor’s Parcel classified as Non-Residential Property is $51,640 per acre. Based on the Updated Price Point Study provided by the Price Point Consultant, the City does not expect the Assigned Facilities Special Tax rates set forth in Section C of the Rate and Method to be reduced, as the total effective tax burden applicable to each land use class of residential property to be constructed within the District will not exceed 1.95% of the minimum sale prices set forth in the Updated Price Point Study. A copy of the Updated Price Point Study is included as Appendix C to this Official Statement.

Backup Facilities Special Tax. The Backup Facilities Special Tax for an Assessor’s Parcel of Developed Property upon adoption of the Rate and Method equaled the lesser of (a) $60,750 per Acre, or (b) in connection 346

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with any reduction in the Assigned Facilities Special Tax as set forth in Section C.1 of the Rate and Method, the reduced amount per Acre calculated pursuant to Section C.1.a.(3) of the Rate and Method. Pursuant to the Updated Price Point Study provided by the Price Point Consultant, no reduction of th e Assigned Facilities Special Tax will be required under the Rate and Method; accordingly, no reduction of the Backup Facilities Special Tax will be required.

The Assigned Facilities Special Tax and Backup Facilities Special Tax are not subject to escalation.

Multiple Land Use Classes. In some instances an Assessor’s Parcel of Developed Property may contain both Developed and Undeveloped Property. In such cases, the Acreage of the Assessor’s Parcel will 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 will 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 will 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 will be final.

Undeveloped Property, Taxable Public Property and Taxable Property Owner Association Property .

The Maxim um Facilities Special Tax for each Assessor’s Parcel of Undeveloped Property, Taxable Public Property and Taxable Property Owner Association Property is $ 60,750 per Acre. The Maximum Facilities Special Tax rates for Undeveloped Property, Taxable Public Property and Taxable Property Owner Association Property are not subject to escalation.

Method of Apportionment of Special Tax . Commencing with Fiscal Year 202 2-23, and for each following Fiscal Year, the CFD Administrator will determine the Special Tax Req uirement for Facilities and, subject to the Maximum Facilities Special Tax rates described above, will provide for the levy the Facilities Special Tax as follows:

First: The Facilities Special Tax shall be levied on each Assessor’s Parcel of Developed Property in an amount equal to 100% of the applicable Assigned Facilities Special Tax; Second: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first step has been completed, the Facilities Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property at up to 100% of the Maximum Facilities Special Tax for Undeveloped Property;
Third: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first two steps have been completed, then the levy of the Facilities Special Tax on each Assessor’s Parcel of Developed Property for which the Maximum Facilities Special Tax is determined through the application of the Backup Facilities Special Tax shall be increased in equal percentages from the Assigned Facilities Special Tax up to the Maximum Facilities Special Tax for each such Assessor’s Parcel;
Fourth: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first three steps have been completed, then the Facilities Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Public Property and Taxable Property Owner Association Property at up to 100% of the Maximum Facilities Special Tax for Taxable Public Property and Taxable Property Owner Association Property, as needed to satisfy the Special Tax Requirement for Facilities. 347

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Notwithstanding the above, the CFD Administrator will, 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 Bonds for the District have already been issued or the City Council has covenanted that it will not issue any additional District bonds (except refunding bonds) to be supported by the Facilities Special Tax. The Dis trict has covenanted in the Indenture not to issue any Additional Bonds except to refund the Bonds or outstanding Additional Bonds. See “— No Additional Bonds Except For Refunding Bonds” below.

Further, notwithstanding the above, under no circumstances sh all 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 the 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. 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.

Prepayment of Special Taxes . The Facilities Special Tax obligation for an Assessor’s Parcel of Developed Property or Undeveloped Property for which a building permit has been i ssued, may be prepaid in full, or in part, and only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment, provided that the terms set forth under Section H of the Rate and Method are satisfied. The Prepayment Amount is calculated based on the Bond Redemption Amount plus Redemption Premium plus the Future Facilities Amount plus the Defeasance Amount plus the Administrative Fees and Expenses, less a credit for the resulting reduction in the Reserve Require ment for the Bonds (if any) and less an allocable share of capitalized interest (if any), all as specified in Appendix A — “RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX — Section H.”
Mandatory redemption of Bonds from Special Tax prepayments may result in the reduction in the otherwise expected yield on such Bonds if the Bonds were purchased at a price greater than par. See “SPECIAL RISK FACTORS — Potential Early Redemption of Bonds from Special Tax Prepayments.” Term of Special Taxes. Pursuant to the Rate and Method, the Facilities Special Tax levy is authorized to be levied for a period not to exceed fifty years commencing with Fiscal Year 2022-23.

Estimated Debt Service Coverage . Based on the expected buildout of the District, Assigned Special Tax rates set forth in the Rate and Method are at least 110% of debt service on the Bonds in each Bond Year plus estimated Administrative Expenses of $40,000 escalating 2% each fiscal year beginning July 1, 2025. The District may levy up to the Maximum Special Tax rates on Taxable Property within the District. See “— Rate and Method of Apportionment — Maximum Special Tax, Assigned Special Tax and Backup Special Tax ” and “— Rate and Method of Apportionment — Exempt Property.” Pursuant to the Rate and Method, the status of Developed Property is based on building permits issued as of May 1 of the Fiscal Year preceding the Fiscal Year for which the Special Tax is levied. As of February 15, 2024 , building permits had been issued for all 198 anticipated residential parcels within the District; accordingly, all 198 parcels of Taxable Property within the District will be classified as Developed Property for the Fiscal Year 2024-25 Special Tax levy. See “PROPERTY OWNERSHIP AND THE DEVELOPMENT.” Collection and Application of the Special Tax
The Special Tax is levied and collected by the Treasurer-Tax Collector of the County in the same manner and at the same time as ad valorem property taxes; provided, however, that the District may directly bill the 348

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Special Tax, may collect the Special Tax a t 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.

The District has made certain covenants in the In denture for the purpose of ensuring that the current maximum rates and method of collection of the Special Tax are not altered in a manner that would impair the District’s ability to collect a sufficient amount of the Special Tax to pay debt service on the Bonds and Administrative Expenses when due. First, the District has covenanted that, to the extent it is legally permitted to do so, it will not initiate proceedings under the Act to modify the Rate and Method if such modification would adversely affect the security for the Bonds and any Additional Bonds and if an initiative is adopted that purports to modify the Rate and Method in a manner that would adversely affect the security for the Bonds and any Additional Bonds, the District shall, to the extent p ermitted by law, commence and pursue reasonable legal actions to prevent the modification of the Rate and Method in a manner that would adversely affect the security for the Bonds and any Additional Bonds. Second, the District has covenanted not to authorize owners of taxable parcels within the District to satisfy Special Tax obligations by the tender of Bonds and any Additional Bonds unless the District shall have first obtained a report of an Independent Consultant certifying that doing so would not result in the District having insufficient Special Tax Revenues to pay the principal of and interest on all Outstanding Bonds and any Additional Bonds when due.

Although the Special Tax constitutes a lien on Taxable Property within the District, it does not constitute a personal indebtedness of the owners of such property within the District. Moreover, other overlapping general obligation debt already exists on the property located within the District and other future special tax and assessment liens and overl apping general obligation debt could come into existence in the future in certain situations without the consent or knowledge of the City or the landowners therein. See “SPECIAL RISK FACTORS — Parity Taxes and Special Assessments” herein. There is no assurance that property owners will be financially able to pay the annual Special Tax or that they will pay such taxes even if financially able to do so, all as more fully described in the section of this Official Statement entitled “SPECIAL RISK FACTORS.” Under the terms of the Indenture, the Trustee shall establish and maintain a separate fund designated the “Special Tax Fund.” As soon as practicable after the receipt by the District of any Special Tax Revenues, but in any event no later than the date ten B usiness Days prior to the Interest Payment Date after such receipt, the District shall transfer such Special Tax Revenues to the Trustee for deposit in the Special Tax Fund; provided, however, that any portion of any such Special Tax Revenues that represen ts Special Tax prepayments that are to be applied to the payment of the redemption price of Bonds and any Additional Bonds in accordance with the provisions of the Indenture shall be identified to the Trustee as such by the District and shall be deposited in the Redemption Fund. See “— Special Tax Fund” below, “THE BONDS — Redemption — Mandatory Redemption from Special Tax Prepayments ” and Appendix F — “SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE.”
Covenant for Superior Court Foreclosure
Pursuant to Section 53356.1 of the Act, the District has covenanted in the Indenture that it will determine or cause to be determined, no later than September 15 of each year, whether or not any owners of property within the District are delinquent in the payment of the Special Tax levied thereon and that, if such delinquencies exist, the District will order and cause to be commenced no later than November 1, and thereafter diligently prosecute, an action in the superior court to foreclose the lien of the Special Tax or installment thereof not paid when due.

Notwithstanding the foregoing, the District is not required under the Indenture to order the commencement of foreclosure proceedings if (a) the total Special Tax delinquency in the District for such Fiscal Year is les s than 5% of the total amount of the Special Tax levied in such Fiscal Year, and (b) the amount then on deposit in the Reserve Fund is equal to the Reserve Requirement. Notwithstanding the foregoing, if the District determines that any single parcel is delinquent in excess of $5,000 in the payment of the Special Tax, then the District will diligently institute, prosecute and pursue foreclosure proceedings against such parcel. 349

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The mere commencement of foreclosure proceedings will not assure a prompt and favorable resolution of Special Tax delinquencies. The ability of the District to foreclose the lien of delinquent unpaid Special Tax may be limited. See “SPECIAL RISK FACTORS — Bankruptcy and Legal Delays” and “SPECIAL RISK FACTORS — FDIC/Federal Government Interests in Properties.” Moreover, even if a judgment of foreclosure and order of sale is obtained, the District must cause a notice of levy to be issued. Under current law, the property owner has 120 days from the date of service of the notice of levy in which to redeem the subject property. If the property owner fails to redeem the property and it is sold, the property owner’s only remedy is an action to set aside the sale, which action must be brought within 90 days of the date of sale. If such an action results in the setting aside of the foreclosure sale, the judgment is revived, and the District would be entitled to receive interest on the revived judgment as if the sale had not been made. Under former law a property owner had a period of one year within which to redeem property to be sold, and the constitutionality of the legislation that eliminated the one year redemption period has not been tested.

There can be no assurance that, even if the subject property is sold, the proceeds from such sale will be sufficient to pay the delinquent installments of the Special Tax. The Act does not require the District or any other governmental agency to purchase or otherwise acquire any Assessor’s Parcel being sold if there is no other purchaser at such sale. The Act does require that property being sold pursuant to foreclosure under the Act must be sold for not less than the judgment amount (which must include reasonable attorneys’ fees, together with interest, penalties, and other authorized charges and costs) plus post judgment interest and authorized costs, unless a lower bid price is authorized by the Owners of not less than 75% by value of the Bonds and any Additional Bonds Outstanding.

Special Tax Fund
The Indenture provides that the Trustee will est ablish and maintain a separate fund designated the “Special Tax Fund.” The Indenture requires that the District transfer Special Tax Revenues (other than Special Tax prepayments) to the Trustee for deposit into the Special Tax Fund as soon as practicable after the District’s receipt thereof, but in any event no later than ten Business Days prior to the Interest Payment Date after such receipt. No later than the Business Day immediately preceding each Interest Payment Date, after having made any requested transfers to the Administrative Expense Fund, as requested by the District, to have sufficient amounts available therein to pay Administrative Expenses, the Trustee is required by the Indenture to make transfers from the Special Tax Fund to the Interest Account in the Bond Fund, the Principal Account in the Bond Fund and the Reserve Fund in the amounts and in the priority specified in the Indenture. See Appendix F — “SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE.”
As soon as practicable after the District’s receipt of Special Tax prepayments, but in any event no later than ten Business Days prior to the Interest Payment Date after such receipt, the District is required to transfer any Special Tax prepayment to the Trustee and, in connection therewith, subm it to the Trustee a Written Certificate identifying such amounts as Special Tax prepayment, identifying the portion of such Special Tax prepayments so transferred that is to be applied to the Redemption Price of the Bonds and any Additional Bonds and identifying the portion of such Special Tax prepayment that is to be applied to the payment of interest on the Bonds and any Additional Bonds to be so redeemed. The portion of such Special Tax prepayment that is to be applied to the Redemption Price will be deposited by the Trustee in the Redemption Fund and will be applied to the redemption of the Bonds and any Additional Bonds pursuant to the Indenture. The portion of such Special Tax prepayment that is to be applied to the payment of interest on the Bonds and any Additional Bonds to be so redeemed will be deposited by the Trustee in the Interest Account and will be applied to the payment of such interest.

Reserve Fund
The Indenture provides that the Trustee will establish and maintain a separate fund designated the “Reserve Fund.” On the Closing Date, the Trustee will deposit in the Reserve Fund the amount specified under the Indenture. See “ESTIMATED SOURCES AND USES OF FUNDS.” The Trustee is also required, not later 350

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than the Business Day immediately preceding each Interest Payment Date, to transfer from the Special Tax Fund (after the requisite transfers to the Administrative Expense Fund, the Interest Account and the Principal Account) the amount, if any, necessary to cause the amount on deposit in the R eserve Fund to be equal to the Reserve Requirement. The Indenture defines “Reserve Requirement” to mean, as of the date of any calculation, the least of (i) “10% of the proceeds of the issue,” within the meaning of Section 148 of the Code (excluding Bonds and any Additional Bonds refunded with the proceeds of subsequently issued Additional Bonds secured by the Special Tax on a parity with such Bonds and Additional Bonds), (ii) Maximum Annual Debt Service and (iii) 125% of Average Annual Debt Service.

Except as otherwise provided in the Indenture, all amounts deposited in the Reserve Fund are to be used and withdrawn by the Trustee solely for the purpose of (i) making transfers to the Interest Account in accordance with the Indenture in the event that, on th e Business Day prior to an Interest Payment Date, amounts in the Interest Account are insufficient to pay the interest on the Bonds and any Additional Bonds due and payable on such Interest Payment Date, (ii) making transfers to the Principal Account in ac cordance with the Indenture in the event that, on the Business Day prior to a September 1 on which principal of the Bonds and any Additional Bonds is due and payable (including principal due and payable by reason of mandatory sinking fund redemption of the Bonds and any Additional Bonds), amounts in the Principal Account are insufficient to pay such principal, and (iii) redeeming Bonds and any Additional Bonds in accordance with the Indenture as described in the following paragraph.

Whenever Bonds or any Additional Bonds are to be optionally redeemed or redeemed from Special Tax prepayments, a proportionate share (determined as provided below) of the amount on deposit in the Reserve Fund will, on the date on which amounts to redeem such Bonds and any Additional Bonds are deposited in the Redemption Fund or otherwise deposited with the Trustee, be transferred by the Trustee from the Reserve Fund to the Redemption Fund or to such deposit held by the Trustee and will be applied to the redemption of said Bonds and any Additional Bonds; provided that, such amount will be so transferred only if and to the extent that the amount remaining on deposit in the Reserve Fund will be at least equal to the Reserve Requirement (excluding from the calculation thereof said Bond s and any Additional Bonds to be redeemed). Such proportionate share will be equal to the largest integral multiple of the minimum Authorized Denomination for said Bonds and any Additional Bonds that is not larger than the amount equal to the product of ( i) the amount on deposit in the Reserve Fund on the date of such transfer, times (ii) a fraction, the numerator of which is the principal amount of Bonds and any Additional Bonds to be so redeemed and the denominator of which is the principal amount of Bonds and any Additional Bonds to be Outstanding on the day prior to the date on which such Bonds and any Additional Bonds are to be so redeemed.

Whenever the balance in the Reserve Fund exceeds the amount required to redeem or pay Outstanding Bonds and any Additional Bonds, including interest accrued to the date of payment or redemption and premium, if any, due upon redemption, the Trustee will, upon receipt of a Written Request of the District, transfer the amount in the Reserve Fund to the Interest Account, Principal Account and/or Redemption Fund, as applicable, to be applied, on the next succeeding Interest Payment Date to the payment and redemption of all of the Outstanding Bonds and any Additional Bonds. If, as a result of the scheduled payment of principal of or interest on the Bonds and any Additional Bonds, the Reserve Requirement is reduced, the Trustee will transfer an amount equal to the amount of such reduction to the Interest Account.

Investment of Moneys
All moneys held by the Trustee in any of the funds or accounts established pursuant to the Indenture are required to be invested by the Trustee solely in Permitted Investments, as directed in writing by the District. As used in the Indenture, the phrase “Permitted Investments” includes a variety of investments, some of which may not be rated by a national rating service. See Appendix F — “SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE — Definitions.”
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No Additional Bonds Except for Refunding Bonds
So long as any of the Bonds and any Additional Bo nds remain Outstanding, the District will not issue any obligations payable from Net Special Tax Revenues senior to the Bonds. The District may issue Additional Bonds or obligations payable on a parity with the Bonds and any Additional Bonds, if, among ot her things:
(i) upon the issuance of such Additional Bonds, no Event of Default will occur or be continuing under the Indenture; (ii) the proceeds of the Additional Bonds will be applied to refund the Bonds or any Additional Bonds previously issued under the Indenture, pay Costs of Issuance incurred in connection with the issuance of such Additional Bonds, and/or make any requisite deposit to the Reserve Fund; and (iii) the Annual Debt Service in each Bond Year, calculated for all Bonds and any Additional Bonds that will be Outstanding after the issuance of such Additional Bonds, will be less than or equal to Annual Debt Service in such Bond Year, calculated for all Bonds and any Additional Bonds that are Outstanding immediately prior to the issuance of suc h Additional Bonds.

The District may issue obligations payable from Net Special Tax Revenues on a basis subordinate to the Bonds and any Additional Bonds.

THE COMMUNITY FACILITIES DISTRICT
General Information Regarding the District
The District was organiz ed by the City Council under the Act to provide for the financing of public improvements to meet the needs of new development related to the District. The qualified electors within the boundaries of the District, being the then owners of all property in t he District, authorized the District to incur bonded indebtedness to finance certain public facilities to meet the needs of new development within the District and approved the Rate and Method for and authorized the levy of the Special Tax.

The District includes approximately 20.57 gross acres and is located in the northwestern portion of the City. The District is located along the east side of Citrus Avenue at Fontus Way, just north of Duncan Canyon Road. The District is being developed into a gated resi dential community known as “Monterado” by Lennar Homes, and is expected to consist of a total of 198 detached condominium residential units in two product lines known as “Rivello” and “Salerno.” Rivello is proposed for 89 single family detached alley load residential units and Salerno is proposed for 109 single family detached cluster residential units. The District is located in Tract Map No. 20224, recorded on March 24, 2022.

Lennar Homes acquired the property within the District in October 202 0 and home closings began in November 2022. As of February 15, 2024, 149 residential units had been completed and conveyed to individual homeowners, Lennar Homes owned six completed model units (none of which were in escrow), nine homes over 95% complete (all of which were in escrow), 21 residential units under construction and less than 95% complete (14 of which were in escrow), and 13 finished lots (none of which were in escrow). As of April 1, 2024, within the District, 159 residential units had been completed and conveyed to individual homeowners, Lennar Homes owned six completed model units (one of which was in escrow), seven homes over 95% complete (all of which were in escrow), 13 residential units under construction and less than 95% complete (all of which were in escrow), and 13 finished lots (none of which were in escrow) . Sales contracts are subject to cancelation and, therefore, homes currently in escrow may not result in closed escrows with the prospective homebuyers. Within the District, bu ilding permits had been obtained for all 198 planned residential units within the District as of February 15, 2024; accordingly, all 198 parcels will be classified as Developed Property for the Fiscal Year 2024-25 Special Tax levy. See “PROPERTY OWNERSHIP AND THE DEVELOPMENT.” The District is zoned RMU (or Regional Mixed Use) on the City’s General Plan Land Use Map which allows for residential land use with a density of 12-24 dwelling units per acre. Tract Map No. 20224, recorded March 24, 2022, subdivided the District into a single lot along with condominium maps which divide the property into 198 single family units, along with a community center and pool/spa, tot lot, gazebo area, outdoor exercise 352

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area, covered eating areas, setback areas and internal streets . The approved condominium maps results in a density of approximately 9.62 dwelling units per acre, which is within the approved designation.

Water service to the property within the District will be supplied by the Fontana Water Company and sewer service to the property within the District will be supplied by the Inland Empire Utilities Agency.

Electricity will be supplied by Southern California Edison Company, gas by the Southern California Gas Company and schools by the Fontana Unified School District.

Like all of Southern California, the land within the District is subject to seismic activity. The Distri ct is not located in a County Designated Fault Zone or an Earthquake Fault Zone Boundary. However, faults that have the potential to generate the strongest ground shaking in the Fontana area include the Cucamonga (thrust fault), the San Jacinto (strike -slip fault), and the San Andreas (strike -slip) fault. The Cucamonga fault is an active fault that crosses the northern portion of the City, trending northwest along the foot of the San Gabriel Mountains. The Lytle Creek Branch of the San Jacinto Fault is an active fault that crosses the extreme northeast portion of the City in a southeastern direction. There are several other faults that border the Lytle Creek alluvial basin, including the Chino, San Andreas and San Jacinto faults.

In recent years, wildfires have caused extensive damage throughout the State. The last major wildfire in the vicinity of the City was the Grand Prix Fire in October 2003. There have been smaller fires, such as the 147-acre Sierra Fire that burned in November 2018 and the 277-acre Karen Fire in July 2020. While the District is not aware of any particular risk of wildfire within the District, there can be no assurances that wildfires won’t occur within the District. See “SPECIAL RISK FACTORS — Geologic, Topographic and Climatic Conditions.”
The Federal Emergency Management Agency has determined that the District is located in a Zone “X” flood area (an area determined to be outside of the 0.2 percent annual chance floodplain), and flood insurance will not be required.

An aerial photo showing the taxable property within the District and a map showing the general location of the District and the surrounding area appears on the pages before page 1. More detailed information about the property therein is contained in Appendix B — “APPRAISAL REPORT,” and information about the ownership of such property is set forth under the caption “PROPERTY OWNERSHIP AND THE DEVELOPMENT.” General information about the City is set forth in Appendix E. 353

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Assigned Special Tax and Development Summary
The following table sets forth the Assigned Special Tax that are projected to be levied on the property within the District at buildout of the development.

TABLE 1

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

SPECIAL TAX AND DEVELOPMENT SUMMARY
Rate and Method Land Use Classes
Number of Permitted
Units/Acres as of
May 1, 2024(1)
Assigned
Facilities
Special Tax
Fiscal Year
2024-25
Assigned Facilities
Special Taxes
Developed Property
Residential Property (2,250 sq. ft. or greater) 0 $ 3,258 $ 0 Residential Property (2,050 to less than 2,250 sq. ft.) 27 3,218 86,886 Residential Property (1,850 to less than 2,050 sq. ft.) 75 3,031 227,325 Residential Property (1,650 to less than 1,850 sq. ft.) 96 2,940 282,240 Residential Property (less than 1,650 sq. ft.) 0 2,907 0 Non-Residential Property 0.00 51,640 0
TOTAL 198 N/A $ 596,451

(1) Represents the classification of all 198 parcels of Taxable Property as Developed Property for Fiscal Year 202 4-2025 based upon the building permits that had been obtained for such properties prior to May 1, 2024.

Source: DTA, Inc.

Direct and Overlapping Debt
The District is included within the boundaries of numerous overlapping local agencies providing governmental services. Some of these local agencies have outstanding bonds, and/or the authority to issue bonds, payable from taxes or assessments. The existing indebtedness payable from taxes and assessments that may be levied upon the property within the District is shown in Tab le 2 below. In addition to current debt, new community facilities districts and/or special assessment districts could be formed in the future encompassing all or a portion of the property within the District; and such districts or the agencies that formed them could issue more bonds and levy additional special taxes or assessments. 354

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TABLE 2

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

DIRECT AND OVERLAPPING DEBT SUMMARY (TAXABLE PROPERTY)
Overlapping District
Percent of Levy on
Taxable Parcels
in the District(1)
Total Debt
Outstanding(2)
District Share
of Total Debt
Outstanding
Fontana Unified School District G.O. Bonds 0.12586% $286,797,720 $ 360,970 Chaffey Community College District G.O. Bonds 0.02044 290,030,000 59,290 San Bernardino Valley Municipal Water District G. O. Bonds(3) 0.06602 35,000 30 Estimated Share of Overlapping Debt Allocable to District $ 420,290 Plus: The Bonds 7,665,000*
Estimated Share of Direct and Overlapping Debt Allocable to District $ 8,085,290*

* Preliminary, subject to change.
(1) Based on the District’s estimated share of the Fiscal Year 2023-24 levy for each applicable overlapping district. (2) Based on the overlapping tax and assessment debt as of March 1, 2024. Excludes debt secured by any 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.
(3) Based on the long term general obligation bond outstanding debt allocable to the San Bernardino Valley Municipal Water District, as provided by the Department of Water Resources.

Source: DTA, Inc., San Bernardino County.

As shown in Table 3A, the projected total effective tax rate for completed residential units conveyed to individual homeowners as of February 15, 2024 in Rivello at Monterado ranges from approximately 1.784% to approximately 1.797% of the concluded value as identified in the Appraisal. As shown in Table 3B, the projected total effective tax rate for completed residential units conveyed to individual homeowners as of February 15, 2024 in Salerno at Monterado ranges from approximately 1.7 88% to approximately 1. 802% of the concluded value as identified in the Appraisal. Such estimates assume that the Rate and Method is not amended in accordance with Section C thereof.
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TABLE 3A

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

PROJECTED TOTAL EFFECTIVE TAX RATES FOR

INDIVIDUALLY OWNED RESIDENTIAL PROPERTY

RIVELLO AT MONTERADO
Rivello at Monterado
(Alley Load) Plan Types
DESCRIPTION Plan 1 Plan 2 Plan 3
Number of Units Sold(1) 27 33 20
Unit Size 1,795 1,832 2,007
Base Current Market Value (1) $511,575 $522,120 $531,855 Less: Homeowner Exemption (7,000) (7,000) (7,000) Equals: Assumed Taxable Value(2) $504,575 $515,120 $524,855

AD VALOREM PROPERTY TAXES (2)(3)
Property
Tax Rate
Projected
Amount
Projected
Amount
Projected
Amount
Base Property Tax 1.0000% $ 5,046 $ 5,151 $ 5,249
Fontana Unified School District G.O. Bonds 0.0354 179 182 186 Chaffey Community College District G.O. Bonds 0.0100 50 52 52 San Bernardino Valley Municipal Water District 0.1200 605 618 630 Subtotal Ad Valorem Property Tax Rate/Taxes 1.1654% $ 5,880 $ 6,003 $ 6,117

PARCEL CHARGES, ASSESSMENTS AND SPECIAL
TAXES(4)
Projected
Amount
Projected
Amount
Projected
Amount
Fontana Vector Control Charge $ 6 $ 6 $ 6
City of Fontana Sewer User Fee(5) NA NA NA
Fontana CFD No. 111 (Monterado) Services Special Tax(6) 366 $366 366 Fontana CFD No. 111 (Monterado) Facilities Special Tax(7) 2,940 2,940 3,031 Subtotal Parcel Charges, Assessments And Special Taxes $ 3,312 $ 3,312 $ 3,403

PROJECTED TOTAL PROPERTY TAXES $ 9,192 $ 9,315 $ 9,520

PROJECTED EFFECTIVE TAX RATE (% OF BASE
VALUE)

1.797% 1.784% 1.790%

(1) Number of units sold, unit sizes, and base current market value for units that have closed to individual homeowners based on the Appraisal.
(2) Assumed Taxable Value and ad valorem taxes incorporate owner-occupied assessed value exemption of $7,000. (3) Based on the Fiscal Year 202 3-24 ad valorem rates for the tax rate area(s) within the District. Rates subject to change in future years.
(4) Based on the Fiscal Year 2023-24 charges identified on the San Bernardino County issued property tax bills. Charges subject to change in future years.
(5) Excluded from the effective tax rate determination pursuant to the City of Fontana Community Facilities and Assessment District Policy Guidelines.
(6) Based on the levy of the Assigned Services Special Tax. (7) Based on the levy of the Assigned Facilities Special Tax.

Source: DTA, Inc., Kitty Siino & Associates, Inc., City of Fontana, County of San Bernardino. 356

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TABLE 3B

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

PROJECTED TOTAL EFFECTIVE TAX RATES FOR

INDIVIDUALLY OWNED RESIDENTIAL PROPERTY

SALERNO AT MONTERADO
Salerno at Monterado
(Cluster) Plan Types
DESCRIPTION Plan 1 Plan 2 Plan 3
Number of Units Sold(1) 19 33 17
Unit Size 1,822 1,932 2,207
Base Current Market Value (1) $519,270 $521,640 $551,750 Less: Homeowner Exemption (7,000) (7,000) (7,000) Equals: Assumed Taxable Value(2) $512,270 $514,640 $544,750

AD VALOREM PROPERTY TAXES (2)(3)
Property
Tax Rate
Projected
Amount
Projected
Amount
Projected
Amount
Base Property Tax 1.0000% $ 5,123 $ 5,146 $ 5,448
Fontana Unified School District G.O. Bonds 0.0354 181 182 193 Chaffey Community College District G.O. Bonds 0.0100 51 51 54 San Bernardino Valley Municipal Water District 0.1200 615 618 654 Subtotal Ad Valorem Property Tax Rate/Taxes 1.1654% $ 5,970 $ 5,997 $ 6,349

PARCEL CHARGES, ASSESSMENTS AND SPECIAL
TAXES(4)
Projected
Amount
Projected
Amount
Projected
Amount
Fontana Vector Control Charge $ 6 $ 6 $ 6
City of Fontana Sewer User Fee(5) NA NA NA
Fontana CFD No. 111 (Monterado) Services Special Tax(6) 366 366 366 Fontana CFD No. 111 (Monterado) Facilities Special Tax(7) 2,940 3,031 3,218 Subtotal Parcel Charges, Assessments And Special Taxes $ 3,312 $ 3,403 $ 3,590

PROJECTED TOTAL PROPERTY TAXES $ 9,282 $ 9,400 $ 9,939

PROJECTED EFFECTIVE TAX RATE (% OF BASE
VALUE)

1.788% 1.802% 1.801%

(1) Number of units sold, unit sizes, and base current market value for units that have closed to individual homeowners based on the Appraisal.
(2) Assumed Taxable Value and ad valorem taxes incorporate owner-occupied assessed value exemption of $7,000. (3) Based on the Fiscal Year 2023 -24 ad valorem rates for the tax rate area(s) within the District. Rates subject to change in future years.
(4) Based on the Fiscal Year 2023-24 charges identified on the San Bernardino County issued property tax bills. Charges subject to change in future years.
(5) Excluded from the effective tax rate determination pursuant to the City of Fontana Community Facilities and Assessment District Policy Guidelines.
(6) Based on the levy of the Assigned Services Special Tax. (7) Based on the levy of the Assigned Facilities Special Tax.

Source: DTA, Inc., Kitty Siino & Associates, Inc., City of Fontana, County of San Bernardino.

Property Values
Appraisal. In order to provide information with respect to the value of the land within the District, the District engaged Kitty Siino & Associates, Inc. to prepare the Appraisal. The principal of the Appraiser, who was actively involved in the preparation of the Appraisal, has an “MAI” designation from the Appraisal Institute and has prepared numerous appraisals for the sale of land secured municipal bonds. The Appraiser was selected by the District and has no material relationships with the City, the District or the owners of the land within the District other than the relationship represented by the engagement to prepare the Appraisal and other similar engagements for the City. The City instructed the Appraiser to prepare its analysis and report in conformity with 357

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City-approved guidelines and the Appraisal Standar ds for Land Secured Financings published in 1994 and revised in 2004 by the commission now known as California Debt and Investment Advisory Commission. A copy of the Appraisal is included as Appendix B to this Official Statement.

The purpose of the Appraisal was to estimate the minimum market value of the fee simple estate, subject to special tax and special assessment liens, of the property within the District in its current condition. As of February 15, 2024 , within the District, 149 residential units had been completed and conveyed to individual homeowners, Lennar Homes owned six completed model units (none of which were in escrow), nine homes over 95% complete (all of which were in escrow), 21 residential units under construction and less than 95% complete (14 of which were in escrow), and 13 finished lots (none of which were in escrow).

Subject to the contingencies, assumptions and limiting conditions set forth in the Appraisal, the Appraiser concluded that, as of February 15, 2024, the minimum market value of the Taxable Property within the District was not less than $ 91,640,445, consisting of $78,139,585 for the 149 completed units conveyed to individual homeowners, $13,500,860 for the 15 completed or near completed homes and 34 finished lots and homes under construction owned by Lennar Homes. See Appendix B — “APPRAISAL REPORT.” Reference is made to Appendix B for a complete list and full discussion of the applicable contingencies, assumptions and limiting conditions and the methodology employed by the Appraiser. In the event that any of the contingencies, assumptions and limiting conditions are not actually realized, the value of the property within the District may be less than the amount reported in the Appraisal. In any case, there can be no assurance that any portion of the property within the District would actually sell for the amount indicated by the Appraisal.

The Appraisal merely indicates the Appraiser’s opinion as to the minimum market value of the property referred to therein as of the date and under the conditions specified therein. The Appraiser’s opinion reflects conditions prevailing in the applicable market as of the date of value. The Appraiser’s opinion does not predict the future value of the subject property, and there can be no assurance that market conditions will not adversely change in the future.

The Appraiser has specifically consented to the inclusion of the Appraisal in this Official Statement.

Nevertheless, the Appraisal contains the following statement:

The acceptance of and/or use of this appraisal report by the client or any third party constitutes acceptance of the following conditions:

The liability of Kitty Siino &Associates, Inc. and the appraisers responsible for this report is limited to the client only and to the fee actually received by the appraisers. Further, there is no accountability, obligation or liability to any third -party. If the appraisal report is placed in the hands of anyone other than the client for whom this report was prepared, the client shall make such party and/or parties aware of all limiting conditions and assumptions of this assignment and related discussions. Any party who uses or relies upon any information in this report, without the preparer’s written consent, does so at his own risk.

If the client or any third party brings legal action against Kitty Siino &Associates, Inc. or the signer of the Appraisal and the appraisers prevail, the party initiating such legal action shall reimburse Kitty Siino &Associates, Inc. and/or the appraisers for any and all costs of any nature, including attorneys’ fees, incurred in their defense.

It is a condition precedent to the issuance of the Bonds that the Appraiser deliver to the District a certification to the effect that nothing has come to the attention of the Appraiser subsequent to the date of value of the Appraisal that would cause the Appraiser to believe that the value of property in the District is less than the minimum value reported in the Appraisal. However, the Appraiser has not performed any procedures since the date of value to obtain knowledge of such events or occurrences nor is it obligated to do so in the future. 358

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Value-to-Lien Ratios
The value of the property within the District is significant because, in the event of a delinquency in the payment of the Special Tax, the District may foreclose only against delinquent parcels. Likewise, the ratio of the value of a parcel to its “share” of the Bonds is important because it provides an indication o f the extent of the relative burden imposed on each parcel by the applicable Special Tax. As indicated above, the minimum market value of the property within the District is not less than $ 91,640,445. The ratio of that value to the $7,665,000* total principal amount of the Bonds is approximately 11.96*-to-1. This ratio does not include other overlapping general obligation debt within the District. At this time there is no other overlapping land secured special tax or assessment debt within the District. See “ — Direct and Overlapping Debt.” Taking the $7,665,000* principal amount of the Bonds and $420,290 in other overlapping general obligation debt within the District into account, the ratio of the minimum market value to the total amount of direct and overlapping bonded debt for the District of $ 8,085,290* is approximately 1 1.33*-to-1. Table 4 sets forth the minimum market value-to-lien ratios of all the taxable property within the District by development status as of February 15, 2024 based on the projected Fiscal Year 2024-25 Special Tax levy.

Each of the aforesaid value -to-lien ratios is for the entire District, however, the ratios of the value of individual lots within the District to their respective shares of the principal amount of the Bonds can be expected to vary substantially depending upon the selling price thereof. The following Table 5 sets forth the value-to-lien ratios within the District by land use class under the Rate and Method using the principal amount of the Bonds allocated based on the projected Fiscal Year 2024-25 Special Tax levy.

Additionally, the following Table 6 sets forth the stratification of value-to-liens of the parcels within the District, based on the appraised value of such parcels set forth in the Appraisal and such parcels’ respective shares of the principal amount of the Bonds (allocated to each parcel based upon its respective share of the total projected Fiscal Year 2024-25 Special Tax levy) and the ratio of the appraised value to its share of the Bonds.

Taxable property within the District will be classified as “Developed Property” for purposes of the Fiscal Year 2024-25 Special Tax levy if a building permit for such property is obtained by May 1, 2024. Based on the development status within the Distri ct as of February 15, 2024 , building permits had been issued for all 198 residential parcels of Taxable Property within the District; accordingly, all 198 residential parcels within the District will be classified as Developed Property for purposes of the projected Fiscal Year 2024-25 Special Tax levy.

* Preliminary, subject to change.
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TABLE 4

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

ESTIMATED MINIMUM MARKET VALUE-TO-LIEN RATIOS BASED ON BONDS ONLY

ALLOCATED BY PROPERTY OWNER/DEVELOPMENT STATUS
(Projected Fiscal Year 2024-25 Special Tax Levy)
Property Owner/
Development Status(1)
Number of
Taxable
Parcels
Projected
Fiscal Year
2024-25
Facilities
Special Tax(2)
Percent of
Projected
Fiscal Year
2024-25
Facilities
Special Tax
Pro Rata
Share of
Bonds(3)*
Minimum
Market Value(1)*
Estimated
Minimum Market
Value-to-Lien
Ratios(4)*
Lennar Homes .

Model Homes 6 $ 16,531 3.04% $ 232,603 $ 2,332,250 10.03 95%+ Completed Homes 9 25,007 4.59 351,861 3,498,375 9.94 Homes Under Construction 21 58,152 10.67 818,237 4,737,498 5.79 Finished Lots (Developed Property)(5) 13 36,250 6.65 510,069 2,932,737 5.75 Subtotal 49 $ 135,940 24.95% $ 1,912,770 $ 13,500,860 7.06

Individual Homeowners 149 $ 408,810 75.05% $ 5,752,230 $ 78,139,585 13.58 TOTAL 198 $ 544,750 100.00% $ 7,665,000 $ 91,640,445 11.96

* Preliminary, subject to change.
(1) Based on the Appraisal with a date of value as of February 15, 2024. (2) Based on the levy to fund Administrative Expenses and debt service on the Bonds, and the development status for the projected Fiscal Year 2024-25 Special Tax levy. (3) There are currently no overlapping assessment districts and/or other community facilities districts encumbering th e District with outstanding debt (excluding debt secured by any 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). The Bonds are allocated based on a proportionate share of the projected Fiscal Year 2024-25 Facilities Special Tax. (4) Calculated by dividing the Minimum Market Value column by the Pro Rata Share of Bonds column. (5) Under the Rate and Method, parcels of Taxable Property are classified as Developed Property if a building permit has been obtained for such parcel by May 1 of the fiscal year preceding the Special Tax levy. Accordingly, because all 198 parcels of Taxable Property have obtained building permits prior to May 1, 2024, all such lots will be classified as Developed Property for the Fiscal Year 2024-25 Special Tax levy.

Source: DTA, Inc.
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TABLE 5

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

ESTIMATED MINIMUM MARKET VALUE-TO-LIEN RATIOS BASED ON BONDS ONLY

ALLOCATED BY LAND USE CLASSES
(Projected Fiscal Year 2024-25 Special Tax Levy)
Rate and Method Land Use Classes
Number of
Units/
Acres(1)
Fiscal Year
2024-25
Assigned /
Facilities
Special Tax(2)
Projected
Fiscal Year
2024-25
Facilities
Special Tax(3)
Pro Rata
Share of
Bonds(4)*
Minimum
Market
Value(5)
Estimated
Minimum
Market
Value-to-
Lien
Ratios(6)*
Developed Property
Residential Property (2,250 sq. ft. or greater) 0 $ 0 $ 0 $ 0 $ 0 N/A Residential Property (2,050 to less than 2,250 sq. ft.) 27 86,886 79,355 1,116,572 12,125,041 10.86 Residential Property (1,850 to less than 2,050 sq. ft.) 75 227,325 207,620 2,921,356 33,792,992 11.57 Residential Property (1,650 to less than 1,850 sq. ft.) 96 282,240 257,775 3,627,072 45,722,412 12.61 Residential Property (less than 1,650 sq. ft.) 0 0 0 0 0 N/A Non-Residential Property 0.0 0 0 0 0 N/A
Subtotal 198 $ 596,451 $ 544,750 $ 7,665,000 $ 91,640,445 11.96

Undeveloped Property 0.0 $ 0 $ 0 $ 0 $ 0 N/A
TOTAL N/A $ 596,451 $ 544,750 $ 7,665,000 $ 91,640,445 11.96

* Preliminary, subject to change.
(1) Based on the development status for the projected Fiscal Year 2024-25 Special Tax levy. Under the Rate and Method, parcels of Taxable Property are classified as Developed Property if a building permit has been obtained for such parcel by May 1 of the fiscal year preceding the Special Tax levy. (2) Based on the Assigned Facilities Special Tax revenues generated by residential dwelling units for which building permits had been obtained. (3) Based on the levy to fund Administrative Expenses and debt service on the Bonds, and the development status for the projected Fiscal Year 2024-25 Special Tax levy. (4) There are currently no over lapping assessment districts and/or other community facilities districts encumbering the District (excluding debt secured by any 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). The Bonds are allocated based on a proportionate share of the projected Fiscal Year 2024-25 Facilities Special Tax. (5) Based on the Appraisal with a date of value as of February 15, 2024. (6) Calculated by dividing the Minimum Market Value column by the Pro Rata Share of Bonds column.

Source: DTA, Inc.
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TABLE 6

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

ESTIMATED MINIMUM MARKET VALUE-TO-LIEN STRATIFICATION

BASED ON BONDS ONLY
(Projected Fiscal Year 2024-25 Special Tax Levy)
Estimated
Minimum Market
Value-to-Lien Ratio
Category
Number
of
Parcels
Subject to
Facilities
Special
Tax
Projected
Fiscal Year
2024-25
Facilities
Special Tax(1)*
Percent of
Projected
Fiscal Year
2024-25
Facilities
Special Tax*
Pro Rata
Share of
Bonds(2)*
Minimum
Market
Value(3)*
Estimated
Minimum
Market
Value-to-Lien
Ratios(4)*

14.00:1 and above 0 $ 0 0.00% $ 0 $ 0 NA

11.00:1 to 13.99:1 149 408,810 75.05 5,752,232 78,139,585 13.58

8.00:1 to 10.99:1 15 41,538 7.62 584,468 5,830,625 9.98

5.00:1 to 7.99:1 34 94,402 17.33 1,328,300 7,670,235 5.77 Less than 5.00:1 (5) 0 0 0.00 0 0 NA
TOTAL 198 $ 544,750 100.00% $ 7,665,000 $ 91,640,445 11.96

* Preliminary, subject to change.
(1) Based on the levy to fund Administrative Expenses and debt service on the Bonds, and the development status for the projected Fiscal Year 2024-25 Special Tax levy.
(2) There are currently no overlapping assessment districts and/or other community facilities districts encumbering the District with outstanding debt (excluding debt secured by any 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). The Bonds are allocated based on a proportionate share of the projected Fiscal Year 2024 -25 Facilities Special Tax, assuming the status of development as of February 15, 2024.
(3) Based on the Appraisal with a date of value as of February 15, 2024. (4) Calculated by dividing the Minimum Market Value column by the Pro Rata Share of Bonds column. (5) No parcel has a value-to-lien of less than 5:00:1*.

Source: DTA, Inc.

Delinquency History
Fiscal Year 2023-24 was the first year in which Special Taxes were levied in the District. For Fiscal Year 2023-24, Facilities Special Taxes totaling $385,227 were levied on 128 parcels classified as Developed Property with respect to the Facilities Special Tax based on building permits obtained as of May 1, 2023. As of April 4, 2024, one parcel was delinquent in the payment of the first installment of Facilities Special Taxes (which became delinquent on December 10, 2023) in the amount of $1,470 for a fi rst installment delinquency rate of

0.76%. The same parcel was delinquent in the payment of the first installment of Services Special Taxes in the amount of $183 for a first installment delinquency rate of 0.51%. The second installment Special Taxes become delinquent on April 10, 2024.

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PROPERTY OWNERSHIP AND THE DEVELOPMENT
Representatives of Lennar Homes have provided the information in this section regarding Lennar Homes and its development in the District. Neither the Underwriter nor the City has in dependently confirmed or verified the information in this section of the Official Statement nor does any such party make any representation as to accuracy or adequacy of this information. Further, there may be material adverse changes in this information after the date of this Official Statement.

The information in this section of the Official Statement regarding ownership of certain taxable property in the District has been included because it is considered relevant to an informed evaluation of the Bonds. The inclusion in this Official Statement of information related to Lennar Homes should not be construed to suggest that the Bonds, or the Special Tax that will be used to pay the Bonds, are recourse obligations of Lennar Homes, or any other property owner in the District. A property owner may sell or otherwise dispose of land within the District or a development or any interest therein at any time.

No assurance can be given that the proposed development within the District will occur as described below. As the proposed land development progresses and parcels are sold, it is expected that the ownership of the land within the District will become more diversified. No assurance can be given that development of the land within the District will occur in a timely manner or in the configuration or intensity described herein, or that any landowner described herein will obtain or retain ownership of any of the land within the District.

The Bonds and the Special Tax are not personal obligations of Lennar Homes or any other current or subsequent property owners and, in the event that Lennar Homes or any other current or subsequent property owner defaults in the payment of the Special Tax, the City may proceed with judicial foreclosure but has no direct recourse to the assets of Lennar Homes or any other current or subsequent property owner. As a result, other than as provided in the Official Statement, no financial statements or information is, or will be, provided about Lennar Homes or any other current or subsequent property owner. The Bonds are secured solely by the Net Special Tax Revenues and other amounts pledged under the Indenture. See “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS” and “SPECIAL RISK FACTORS.”
Lennar Homes
Lennar Homes of California, LLC, a California limited liability company (previously defined as “Lennar Homes” or the “Developer”) is based in Irvine, California, and has been in the business of developing residential real estate communities in California since 1996. Lennar Homes is wholly -owned by U.S. Home, LLC, a Delaware limited liability company (“U.S. Home”). U.S. Home is wholly-owned by Lennar Corporation, which is based in Miami, Florida (“Lennar Corporation”). Founded in 1954, Lennar Corporation completed its initial public offering in 1971 and listed its common stock on the New York Stock Exchange in 1972. Lennar Corporation’s Class A and Class B common stock are listed on the New York Stock Exchange under the symbols “LEN” and “LEN.B.” respectively. Lennar Corporation is one of the largest homebuilders in the United States based on home sales revenues and net earnings, and operates under a number of brand names, including Lennar Homes and U.S. Home. Lennar Homes primarily develops residential communities both within the Lennar Corporation family of builders and through consolidated and unconsolidated part nerships in which Lennar Homes maintains an interest.

Lennar Corporation is subject to the informational requirements of the Securities Exchange Act of 1934, as amended, and, in accordance therewith, files reports, proxy statements, and other information, including financial statements, with the Securities and Exchange Commission (the “SEC”). Such filings, particularly Lennar Corporation’s annual report on Form 10 -K and its most recent quarterly report on Form 10 Q, may be inspected and copied at the publi c reference facilities maintained by the SEC at 450 Fifth Street, N.W., Washington, D.C. 20549 at prescribed rates. Such filings can also be accessed over the internet at the SEC’s website at www.sec.gov. This internet address is included for reference only and the information on the internet site is not a part of this Official Statement and is not incorporated by reference into this Official Statement. No 363

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representation is made in this Official Statement as to the accuracy or adequacy of the information contained on the internet site.

Copies of Lennar Corporation’s annual report and related financial statements are available from Lennar Corporation’s website at www. Lennar.com. This internet address is included for reference only and the information on the internet site is not a part of this Official Statement and is not incorporated by reference into this Official Statement.

Development Plan
General. Lennar Homes plans to construct a total of 198 residential units in the District in a community known as Monterado. Monterado is a gated community consisting of two product lines known as “ Rivello at Monterado,” which is planned to be comprised of 8 9 single family detached alley -load residential units, and “Salerno at Monterado,” which is planned for 109 cluster detached condominiums. For each of the Rivello and Salerno products, Monterado features two story floorplans with three exterior architectural styles: Traditional, Spanish, and Craftsman. Home exteriors feature dual glazed low-E windows, insulated roll-up sectional garage doors, Boral cool -roof tiles and drought tolerant front yard landscaping. Monterado homes include tankless water heaters, media enclosures and a Honeywell smart thermostat. Interiors include bullnose corners, panel interior doors, LED downlights, white-rocker light switches and ceramic tile at entry. Kitchens include granite slab countertops and thermofoil flat panel cabinets, stainless teel sink and GE stainless steel appliances. Master suites include undermount sinks with Moen faucets, semi-frameless clad enclosures and walk-in closets.

The District is located in Tract Map No. 20224, recorded on March 24, 2022. Lennar Homes acquired the property within the District in October 2020 and home closings began in November 2022. As of February 15, 2024, 149 residential units had been completed and conveyed to individual homeowners, Lennar Homes owned six completed model units (none of which were in escrow), nine homes over 95% complete (all of which were in escrow), 21 residential units under construction and less than 95% complete (1 4 of which were in escrow), and 1 3 finished lots (none of which were in escrow). As of April 1, 2024, within the District, 159 residential units had been completed and conveyed to individual homeowner s, Lennar Homes owned six completed model units (one of which was in escrow), seven homes over 95% complete (all of which were in escrow), 13 residential units under construction and less than 95% complete (all of which were in escrow), and 13 finished lots (none of which were in escrow). Sales contracts are subject to cancelation and, therefore, homes currently in escrow may not result in closed escrows with the prospective homebuyers. Within the District, 198 building permits had been obtained as of Feb ruary 15, 2024. Accordingly, all 198 parcels within the District will be classified as Developed Property for the Fiscal Year 2024-25 Special Tax levy.

The following table describes the development and ownership status as of February 15, 2024 by floor plan within the development.
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TABLE 7

MONTERADO

DEVELOPMENT AND OWNERSHIP STATUS
(AS OF FEBRUARY 15, 2024)
Floor Plan
Total Units
Planned Home Size
Owned by
Individuals
Completed
Homes(1)
Homes
Under
Constructi
on
Finished
Lots
Homes in
Escrow
Base
Home
Prices(2)
Rivello
1 31 1,795 27 1 3 0 2 $591,990
2 36 1,832 33 2 1 0 1 $577,900
3 22 2,007 20 1 1 0 1 $583,990
Total Rivello 89 80 4 5 0 4

Salerno
1 29 1,822 19 3 2 5 4 $582,900
2 53 1,932 33 5 9 6 9 $592,900
3 27 2,207 17 3 5 2 6 $621,990
Total Salerno 109 69 11 16 13 19

Total Monterado 198 149 15 21 13 23

(1) Includes one model home for each floor plan.
(2) Base sales prices are subject to change and exclude any lot premiums, options, upgrades, incentives, and any selling concessi ons, mortgage rate buydowns or price reductions currently being offered. Lennar Homes is offering varying concessions, including r ate buy downs, on a case-by-case basis. As of February 15, 2024, the date of value of the Appraisal, the net closing cost and rate buy down concessions for the 149 residential units conveyed to individual homeowners and the 23 residential units in escrow within the District ranged from $0 to $109,300, and averaged $48,690 per residential unit.

Source: Lennar Homes.

Rivello at Monterado. The Rivello residential units are alley -loaded detached condominiums that include three floorplans ranging from 1, 795 to 2,007 square feet and 89 total units are planned . Each of the floorplans feature two stories with three to four bedrooms and two car garages. As of February 15, 2024, the base sales prices for the Rivello units ranged from $565,900 to $583,990. Base sales prices are subject to change and exclude any lot premiums, options, upgrades, incentives, and any selling concessions, mortgage rate buydowns or price reductions currently being offered. Lennar Homes is offering varying concessions, including rate buy downs, on a case-by-case basis.

As of February 15, 2024 , within Rivello, 80 completed units had been conveyed to individual homeowners, Lennar Homes owned three completed model units (none of which were in escrow), one home over 95% complete (which was in escrow), and five residential units under construction (three of which were in escrow). Between February 15, 2024 and April 1, 2024, one additional residential unit within Rivello had been conveyed to individual homeowners, for a total of 81 residential units owned by individual homeowners as of April 1, 2024. As of April 1, 2024, within Rivello, Lennar Homes owned three completed model units (one of which was in escrow) and five residential units under construction (four of which were in escrow). The first residential units within Rivello were conveyed to individual homeowners in November 2022 and Lennar Homes expects that construction will be complete within Rivello by October 2024.

Salerno at Monterado. The Salerno residential units are detached condominiums arranged in motor courts, and include three floorplans ranging from 1,822 to 2,207 square feet and 109 total units are planned .

Each of the floorplans feature two stories with three to five bedrooms and two car garages. As of February 15, 2024, the base sales prices for the Rivello units ranged from $573,900 to $626,990. Base sales prices are subject to change and exclude any lot premiums, options, upgrades, incentives, and any selling c oncessions, mortgage rate buydowns or price reductions currently being offered. Lennar Homes is offering varying concessions, including rate buy downs, on a case-by-case basis.
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As of February 15, 2024 , within Salerno, 69 completed units had been conveyed to individual homeowners, Lennar Homes owned three completed model units (none of which were in escrow), eight over 95% completed residential units (all of which were in escrow ), 16 residential units under construction ( 11 of which were in escrow) and 13 finished lots (none of which were in escrow) . Between February 15, 2024 and April 1, 2024, an additional nine residential units within Salerno had been completed and conveyed to individual homeowners, for a total of 78 residential units owned by individual homeowners as of April 1, 2024. As of April 1, 2024, within Salerno, Lennar Homes owned three completed model units ( none of which were in e scrow), seven homes over 95% complete (all of which were in escrow), 16 residential units under construction (nine of which were in escrow) and five finished lots (none of which were in escrow). The first residential units within Salerno were conveyed to individual homeowners in November 2022 and Lennar Homes expects that construction will be complete within Salerno by October 2024.

Required Infrastructure. All backbone infrastructure required to build-out all 198 residential units has been completed.

Entitlement Status. Other than certain permits required in the normal course of home construction, all discretionary entitlements required to complete the development and sales of homes in the District have been received. All environmental approvals have been secured in order to complete the development in the District.

Conditions of Approval . None of the remaining infrastructure improvements are required to be completed as a condition of receiving building or occupancy permits.

Except as described in th is Official Statement and except for those consents, permits, authorizations, certifications and approvals of governmental entities required in the ordinary course of development, Lennar Homes has no actual knowledge of any impediment to construction or ob taining land use entitlements which could be reasonably expected to have a material adverse effect on its ability to complete the planned development of its property within the District as described in the Official Statement.

While the information set forth in this Official Statement reflects Lennar Homes’ current development expectations, no assurance can be given that final home construction and conveyance to individual home buyers will be carried out as described in this Official Statement.

Financing Plan
To date, Lennar Homes has financed its land acquisition and various site development and home construction costs related to its property in the District through internally generated funds (which may include home sales revenues and funding from its parent company Lennar Corporation). As of April 1, 2024, Lennar Homes had expended approximately $ ___________ on land acquisition, land development, homebuilding, marketing and sales costs. As of such date, Lennar Homes expected to incur approximately $___________ on remaining land acquisition and development costs and approximately $__________ on remaining homebuilding, marketing, and sales costs for its property in the District.

Lennar Homes expects to use internally generated funding (which may include home sales revenues and funding from its parent company Lennar Corporation) to complete its land acquisition and development in the District. Lennar Homes believes that it will have sufficient funds available to complete its planned land acquisition and development in the District i n accordance with the development schedule described in this Official Statement.

Notwithstanding the belief of Lennar Homes that it will have sufficient funds to complete its planned land acquisition and development in the District, no assurance can be giv en that sources of financing available to Lennar Homes will be sufficient to complete the land acquisition, development and home construction as currently anticipated. While Lennar Homes has made such internal financing available in the past, there can be no assurance whatsoever of its willingness or ability to do so in the future. Neither 366

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Lennar Homes nor any of its affiliates has any legal obligation of any kind to make any such funds available or to obtain loans. Other than pointing out the willingness of Lennar Homes to provide internal financing in the past, Lennar Homes has not represented in any way that it will do so in the future. If and to the extent that internal financing and home sales revenues are inadequate to pay the costs to complete Lennar Homes’ planned land acquisition, development and home construction in the District as currently anticipated and other financing by Lennar Homes is not put into place, there could be a shortfall in the funds required to complete the proposed land acquisition, development and home construction by Lennar Homes and portions of the project may not be developed.

SPECIAL RISK FACTORS
The principal source of payment of debt service on the Bonds will be payments of the Special Tax made with respect to the Taxable Property. As discussed under “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS — Special Tax,” the Special Tax is to be levied annually against all such Taxable Property either at the maximum rate authorized by the Rate and Method or at such lower rates as are determined by the District Administrator to raise sufficient funds to comply with the agreements, conditions, covenants and terms contained in the Indenture, and in accordance with the Act. The Special Tax is to be collected on the tax roll of the District at the same time and in the same manner as general ad valorem real property taxes are collected. The Special Tax cannot be levied at a tax rate higher than the maximum tax rate even if the maximum tax rate will not produce sufficient Net Special Tax Revenues to pay the principal and interest then payable with respect to the Bonds. See discussions below under “— Levy of the Special Tax” and “— Collection of the Special Tax.” Payment of the Special Tax levied on a parcel is secured by a continuing lien against such parcel. In the event an installment of the Special Tax included in the tax bill for a parcel of Taxable Property is not paid when due, the District has covenanted to institute foreclosure proceedings in court to cause the parcel to be sold in order to attempt to recover the delinquent amount from the sale proceeds. Foreclosure and sale may not always result in the recovery of the full amount of delinquent installments of the Special Tax. See “— Collection of the Special Tax.” The sufficiency of the foreclosure sale proceeds to cover the delinquent amount depends in part upon the market for and the value of the parcel at the time o f the sale. Sufficiency of the foreclosure sale proceeds to cover a delinquency may also depend upon the value of prior or parity liens and similar claims. Further, other governmental claims, such as hazardous substance claims, may affect the realizable value even though such claims may not rise to the status of liens. See “— Hazardous Substances.” Timely foreclosure and sale proceedings with respect to a parcel of Taxable Property may be forestalled or delayed by a stay in the event the owner of the par cel becomes the subject of bankruptcy proceedings. Not only may foreclosure and sale proceedings be forestalled or delayed, but the sale of a parcel may also be similarly affected by a bankruptcy stay. Further, should the stay not be lifted, payment of t he Special Tax may be subordinated to bankruptcy law priorities. See “— Bankruptcy and Legal Delays.” Although bankruptcy proceedings may forestall or delay a foreclosure and sale or a tax sale of a delinquent parcel of Taxable Property, the Special Tax is secured by a lien which, assuming proper procedures are followed, may be enforced against the parcel. There may not be any recourse against a bankrupt property owner since the owner is not personally obligated to pay the Special Tax. Further, if proper disclosure of the authorization of the Special Tax is not made to the owner, the willingness or ability of an owner to pay the Special Tax may be adversely affected. See “— Payment of the Special Tax is Not a Personal Obligation of the Owners.”
The District is not obligated to advance funds to pay such debt service except from moneys on deposit in the Reserve Fund. See “— Bonds Are Limited Obligations.” Even if debt service is timely paid, interest on the Bonds may have to be included in the gross income of the owner of the Bonds by reason of some circumstance occurring subsequent to issuance of the Bonds, thereby reducing the after-tax yield. See “— Loss of Tax Exemption.” 367

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Risks of Real Estate Secured Investments Generally – Declines in Value Purchasers of the Bonds will be subject to the risks generally incident to an investment secured by real estate, including, without limitation, (i) adverse changes in local market conditions, such as changes in the market value of real property in the vicinity of the District, the supply of or demand for competitive properties in such area, and the market value of property in the event of sale or foreclosure; (ii) changes in real estate tax rates and other operating expenses, governmental rules and fiscal policies; and (iii) natural disasters (including, without limitation, earthquakes, wildfires and floods), which may result in uninsured losses. See the caption “— Increasing Mortgage Interest Rates” below.

No assurance can be given that the individual property owner s within the District will pay the Special Tax in the future or that they will be able to pay the Special Tax on a timely basis. See the caption “— Bankruptcy and Legal Delays” for a discussion of certain limitations on the District’s ability to pursue judicial proceedings with respect to delinquent parcels within the District.

Levy of the Special Tax
The principal source of money with which to pay debt service on the Bonds is the proceeds derived from the annual levy and collection of the Special Tax appl icable to the Taxable Property in the District. The amount of the Special Tax that can be levied is limited to the maximum tax rates authorized pursuant to the Rate and Method. Additionally, pursuant to Section 53321(d) of the Government Code, the Special Tax levied against any Assessor’s parcel for which an occupancy permit for private residential use has been issued shall not be increased as a consequence of delinquency or default by the owner of any other Assessor’s parcel within the District by more t han ten percent above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults. As a result, it is possible that the District may not be able to increase the tax levy to the Assigned Special Tax on residential parcels in all years. The levies cannot be made at higher rates even if the failure to do so would result in insufficient Net Special Tax Revenues to pay the principal of and interest on the Bonds as the same become due and payable.

The levy of the Special Tax will rarely, if ever, result in a uniform relationship between the value of a particular parcel and the amount of the levy of the Special Tax against such parcel. Thus, there will rarely, if ever, be a uniform relationship between the value of a parcel and its proportionate share of the debt service on the Bonds. The Special Tax levied in any particular Fiscal Year on a parcel is based upon the revenue needs of the District and the application of the Rate and Method. The application of the Rate and Method will, in turn, be dependent upon certain development factors with respect to each parcel by comparison with similar development factors with respect to the other parcels in the District. Thus, in addition to annual variations in the revenue needs of the District that must be met from the Special Tax, the following are some of the factors which might cause the levy of the Special Tax on any particular parcel to vary from the Special Tax that might otherwise be expected:

Reduction in the number of parcels of Taxable Property, for reasons such as acquisition of such parcels by a governmental entity and failure of the governmental entity to pay the Special Tax based upon a claim of exemption or, in the case of the federal government or an a gency thereof, immunity from taxation, thereby resulting in an increased tax burden on the remaining parcels of Taxable Property; and Failure of the owners of certain parcels of Taxable Property to pay the applicable Special Tax and delays in the collection of or inability to collect such Special Tax by tax sale or foreclosure and sale of the delinquent parcels, thereby resulting in an increased tax burden on the remaining parcels of Taxable Property.

Collection of the Special Tax
The timely payment of the principal of and interest on the Bonds is ultimately dependent upon the timely payment of all of the Special Tax. Any money on deposit in the Reserve Fund can be used to make such payment 368

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in the event of delinquencies, but the replenishment of the Reserve Fund will be dependent on the recovery of such delinquencies. The Indenture provides that the Special Tax is to be collected in the same manner and at the same time and in the same installment as the general taxes on real property are payable (or in such other manner as the City Council shall determine, including direct billing of the affected property owners) and, except as provided in the special covenant for foreclosure described under the caption “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS — Covenant for Superior Court Foreclosure” and in the Act, is to be subject to the same proportionate penalties and the same procedure, sale and lien priority in case of delinquency as is provided for ad valorem taxes on real property.

Pursuant to the Act, in the event of any delinquency in the payment of the Special Tax, the District may order the institution of a superior court action to foreclose the lien therefor within specified time limits. In such an action, the real property subject to the unpaid amount may be sold at judicial foreclosure sale. Such judicial foreclosure action is not mandatory. However, the District has covenanted for the benefit of the owners of the Bonds that it will institute foreclosure proceedings as authorized by the Act in order to enforce the lien of the delinquent installments of the Special Tax under certain circumstances. See “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS — Covenant for Superior Court Foreclosure.” In the event that foreclosure proceedings are commenced, such foreclosure proceedings could be stayed by the commencement of bankruptcy proceedings by or against the owner of the property being foreclosed. In the event that sales or foreclosures of property are necessary, there could be a delay in payments to Owners of the Bonds pending such sales or the prosecution of foreclosure proceedings and receipt by the District of the proceeds of sale if the Reserve Fund is depleted.

The District may be unable to make full or timely payment of debt service on the Bonds if pr operty owners in the District fail to pay installments of the Special Tax when due, if the Reserve Fund is depleted, or if the District is unable to sell foreclosed parcels for amounts sufficient to cover the delinquent installments of the Special Tax.

Failure to Develop Properties
Development of property within the District may be subject to unexpected delays, disruptions and changes which may affect the willingness and ability of Lennar Homes, or any other property owner to pay the Special Tax prior to de linquency. Land development is subject to comprehensive federal, State and local regulations. Approval is required from various agencies in connection with the layout and design of developments, the nature and extent of improvements, construction activity, land use, zoning, school and health requirements, as well as numerous other matters. There is always the possibility that such approvals will not be obtained or, if obtained, will not be obtained on a timely basis. Failure to obtain any such agency ap proval or satisfy such governmental requirements would adversely affect planned land development. Development of land in the District is also subject to the availability of water. Finally, development of land is subject to economic considerations.

As of February 15, 2024, within the District, 149 residential units had been completed and conveyed to individual homeowners, Lennar Homes owned six completed model units (none of which were in escrow), nine homes over 95% complete (all of which were in escrow), 21 residential units under construction and less than 95% complete (14 of which were in escrow), and 13 finished lots (none of which were in escrow). As of April 1 , 202 4, within the District, 159 residential units had been completed and conveyed to indiv idual homeowners, Lennar Homes owned six completed model units (all of which were in escrow), seven homes over 95% complete (all of which were in escrow), 13 residential units under construction and less than 95% complete (all of which were in escrow), and 13 finished lots (none of which were in escrow). Sales contracts are subject to cancelation and, therefore, homes currently in escrow may not result in closed escrows with the prospective homebuyers. Within the District, building permits had been obtained for all 198 residential parcels within the District as of February 15, 2024; accordingly, all 198 residential parcels will be classified as Developed Property for the Fiscal Year 2024 -25 Special Tax levy. See “THE COMMUNITY FACILITIES DISTRICT” a nd “PROPERTY OWNERSHIP AND THE DEVELOPMENT.” However, no assurance can be given that the 369

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remaining proposed residential development will be partially or fully completed; and for purposes of evaluating the investment quality of the Bonds, prospective purchasers should consider the possibility that such parcels will remain vacant and unimproved.

Undeveloped or partially developed land is inherently less valuable than developed land and provides less security to the Bond Owners should it be necessary for the District to foreclose on the property due to the nonpayment of the Special Tax. The failure to complete development in the District as planned, or substantial delays in the completion of the development may reduce the value of the property within the District and increase the length of time during which the Special Tax will be payable from undeveloped property, and may affect the willingness and ability of the owners of property within the District to pay the Special Tax prior to delinquency.

There can be no assurance that land development operations within the District will not be adversely affected by a future deterioration of the real estate market and economic conditions or future local, State and federal governmental policies relating to real estate de velopment, an increase in mortgage interest rates, the income tax treatment of real property ownership, or the national economy. A slowdown of the development process and the absorption rate could adversely affect land values and reduce the ability or desire of the property owners to pay the annual Special Tax. In that event, there could be a default in the payment of principal of, and interest on, the Bonds when due.

Bond Owners should assume that any event that significantly impacts the ability to develop land in the District would cause the property values within the District to decrease substantially from those estimated by the Appraiser and could affect the willingness and ability of the owners of land within the District to pay the Special Tax prior to delinquency.

Concentration of Property Ownership
Based on the development and ownership status as of February 15, 2024, Lennar Homes is expected to be responsible for approximately 24.95% of the projected Fiscal Year 2024 -25 Special Tax levied within the District. Lennar Homes reports that since such date, additional development and certain sales contracts for residential units have closed escrow to individual homeowners. Based on the development and ownership status as of April 1, 2024, Lennar Homes is expected to be responsible for approximately 19.86% of the projected Fiscal Year 2024-25 Special Tax levied within the District.

While the District includes 159 completed residential units owned by individual homeowners as of April 1, 2024, the inability or refusal of Lennar Homes to pay the Special Tax applicable to its property when due could result in the depletion of the Reserve Fund prior to reimbursement thereof from sale or foreclosu re proceedings, and/or insufficient money with which to pay the principal of and interest on the Bonds as the same became due. Additionally, pursuant to the Act, the Special Tax levied in any fiscal year against any parcel of residential property in the District may not be increased as a consequence of delinquency or default by the owners of any other parcels within the 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 default. As a result, while the Maximum Special Tax pursuant to the Rate and Method may be higher, the Maximum Special Tax on parcels of residential parcels cannot be greater than 110% of the projected actual Special Tax levy on such parcels.

Exempt Properties
Certain properties are exempt from the Special Tax in accordance with the Rate and Method. In addition, the Act provides that properties or entities of the state, federal or local government are exempt from the Special Tax; provided, however, that property in the District acquired by a public entity through a negotiated transaction or by gift or devise, which is not otherwise exempt from the Special Tax, will continue to be subject to the Special Tax. In addition, the Act provides that if property s ubject to the Special Tax is acquired by a public entity through eminent domain proceedings, the obligation to pay the Special Tax with respect to that 370

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property is to be treated as if it were a special assessment. The constitutionality and operation of these provisions of the Act have not been tested.

In particular, insofar as the Act requires payment of the Special Tax by a federal entity acquiring property in the District, it may be unconstitutional. If for any reason property in the District becomes ex empt from taxation by reason of ownership by a nontaxable entity such as the federal government or another public agency, subject to the limitation of the maximum authorized rates, the Special Tax will be reallocated to the remaining Taxable Properties in the District. This would result in the owners of such property paying a greater amount of the Special Tax and could have an adverse impact upon the timely payment of the Special Tax.

Moreover, if a substantial portion of property in the District becomes exempt from the Special Tax because of public ownership, or otherwise, the Maximum Annual Special Tax which could be levied upon the remaining acreage might not be sufficient to pay principal of and interest on the Bonds when due and a default would occur with respect to the payment of such principal and interest.

Constitutional Limitations on Taxation and Appropriations Articles XIIIA and XIIIB of the California Constitution. On June 6, 1978, California voters approved an amendment to the California Constitution, commonly known as Proposition 13 (the Jarvis/Gann Initiative), which added Article XIIIA to the California Constitution. The effect of Article XIIIA is to significantly limit the imposition of new ad valorem taxes, special taxes, transaction taxes, and sales taxes. On November 7, 1978, California voters approved Proposition 8, which made certain clarifications to Article XIIIA.

Article XIIIA of the California Constitution limits the amount of ad valorem taxes on real property to 1% of “full cash value” as determined by the county assessor. Article XIIIA defines “full cash value” to mean “the county assessor’s valuation of real property as shown on the 1975 -76 tax bill under ‘full cash value’ or, thereafter, the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment.” The “full cash value” is subject to annual adjustment to reflect increases, not to exceed 2% per year, or decrea ses in the consumer price index or comparable local data, or to reflect reductions in property value caused by damage, destruction or other factors.

Article XIIIA exempts from the 1% tax limitation any taxes to repay indebtedness approved by the voters pri or to July 1, 1978, and allows local governments to raise their property tax rates above the constitutionally mandated 1% ceiling for the purpose of paying off certain new general obligation debt issued for the acquisition or improvement of real property and approved by two-thirds of the votes cast by the qualified electorate. Article XIIIA requires a vote of two-thirds of the qualified electorate to impose special taxes on real property, while otherwise generally precluding the imposition of any additional ad valorem taxes, special taxes, transaction taxes, and sales taxes. In addition, Article XIIIA requires the approval of two-thirds of all members of the California Legislature to change any State laws resulting in increased tax revenues.

Enactment of Article XIIIA has reduced the amount of general property tax revenues received by the City. This reduction in such revenues makes it less likely that the City or the District will have surplus funds, other than the Reserve Fund for the Bonds, with which to advance funds to make any payments or to cure any deficiency in the Interest Account or Principal Account of the Special Tax Fund, should the City or the District, as applicable, in the exercise of its discretion, choose to do so. If there are additional delinquencies after exhaustion of funds in the Reserve Fund for the Bonds, none of the City or the District has any obligation to transfer into the Interest Account or Principal Account of the Special Tax Fund the amount of any such delinquencies out of any surplus moneys of the City.

On July 2, 1979, the Fifth District Court of Appeal rendered a 3 -0 decision in the case of County of Fresno v. Malmstrom (94 Cal.App.3d 974), that determined that special assessments are not subject to the limitations of Arti cle XIIIA (Proposition 13). The Court held the one percent tax limitation imposed by California Constitution Article XIIIA on ad valorem taxes does not apply to special assessments levied pursuant to the Improvement Act of 1911 (Streets and Highways Code, Section 5000 et seq., the relevant portions of 371

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which are incorporated in the 1915 Act) and the 1913 Act. The Court further held that because special assessments pursuant to such acts are not within the definition of “special taxes” in Article XIIIA, the Constitution does not require the levy of assessments and the issuance of bonds to be approved by a two-thirds vote of the qualified electors in an assessment district. On September 12, 1979, the California Supreme Court refused to hear an appeal of the lower court’s decision.

At the November 6, 1979, general election, Proposition 4 (the Gann Initiative) was approved by the voters of California. Such proposition added Article XIIIB to the California Constitution.

Article XIIIB of the California Constitution limits the annual appropriations of the State and of any city, county, school district, authority, or other political subdivision of the State to the level of appropriations of the particular governmental entity for the prior fiscal year, as adjusted for changes in the cost of living, population and services rendered by the governmental entity. The “base year” for establishing such appropriation limit is the fiscal year 1978-79 and the limit is to be adjusted annually to reflect changes in population, consumer prices and certain increases in the cost of services provided by these public agencies.

Appropriations subject to Article XIIIB generally include the proceeds of taxes levied by the State or other entity of local government, exclusive of certain State subventions, refunds of taxes, benefit payments from retirement, unemployment insurance, and disability insurance funds. “Proceeds of taxes” include, but are not limited to, all tax revenues and the proceeds to an entity of government from (i) regulatory licenses, user charges, and user fees (but only to the extent such proceeds exceed the cost of providing the service or regulation), and (ii) the investment of tax revenues. Article XIIIB includes a requirement that if an entity’s revenues in any year exceed the amounts permitted to be spent, the excess would have to be allocated to fund schools or be returned by revising tax rates or fee schedules over the subsequent two years.

On December 17, 1980, the Third District Court of Appeal rendered a 3 -0 decision in the case County of Placer v. Corin (113 Cal. App. 3d 443) that determined that special assessments are not subject to the limitation of Article XIIIB (Proposition 4). The Court held that the definition of “proceeds of taxes” imposed by California Constitution Article XIIIB does not apply to special assessments and improvement bonds issued pursuant to the 1915 Act and the 1913 Act. The decision of the Court was not appealed.

The enactment of Article XIIIA of the California Constitution (Propositi on 13) and subsequent legislative enactments effectively repeal the otherwise mandatory duty on the part of the City, under the 1915 Act, to levy and collect a special tax (in an amount necessary to meet delinquencies, but not to exceed ten cents on each $100 of assessable property within the City in any one year) if other funds are not available to cover delinquencies.

In early 1990, the U.S. Supreme Court struck down as a violation of equal protection certain property tax assessment practices in West Virg inia, which had resulted in vastly different assessments of similar properties. Since Article XIIIA provides that property may only be assessed up to 2%, per year, except upon change of ownership or new construction, recent purchasers may pay substantiall y higher property taxes than long-time owners of comparable property in a community. The Supreme Court in the West Virginia case expressly declined to comment in any way on the constitutionality of Article XIIIA.

Based on this decision, however, property owners in California brought three suits challenging the acquisition value assessment provisions of Article XIIIA. Two cases involve residential property and one case involves commercial property. In all three cases, State trial and appellate courts have upheld the constitutionality of Article XIIIA’s assessment rules and concluded that the West Virginia case did not apply to California’s laws.

On June 3, 1991, the U.S. Supreme Court agreed to hear the appeal in the challenge relating to commercial property, but the plaintiff subsequently decided to drop the case.

On October 7, 1991, the U.S. Supreme Court granted the plaintiff’s petition for a writ of certiorari and agreed to hear the Nordlinger v. Lynch case. On June 18, 1992, the U.S. Supreme Court affirmed the Nordlinger 372

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decision (112 U.S. 2326) of the California Court of Appeal, Second Appellate District, which previously held that Article XIIIA does not violate the U.S. Constitution.

The City cannot predict whether any other pending or future challenges to the State’s present system of property tax assessment will be successful, when the ultimate resolution of any challenge will occur, or the ultimate effect any decision regarding the State’s present system of property tax assessment will have on the City’s revenues or on the State’s financial obligations to local governments.

Articles XIIIC and XIIID of the California Constitution . Proposition 218, a state ballot initiative known as the “Right to Vote on Taxes Act,” was approved by California voters on November 6, 1996.

Proposition 218 added Articles XIIIC and XIIID to the State Constitution, and, with the exception of certain provisions, Articles XIIIC and XIIID became effective on November 6, 1996.

Among other things, Proposition 218 imposed certain voting requirements and other limitations on the imposition of new or increased taxes, assessments, and property-related fees and charges. Under Proposition 218 (i) all taxes imposed by local governments are deemed to be either general taxes, or specia l taxes, (ii) no local government may impose, extend, or increase any general tax unless and until such tax is submitted to the electorate and approved by a majority vote, and (iii) no local government may impose, extend, or increase any special tax unless and until such tax is submitted to the electorate and approved by a two -thirds vote. Special purpose districts, including community facilities districts and assessment districts, have no power to levy general taxes. The City believes that the issuance of the Bonds does not require the conduct of further proceedings under the Refunding Act, the 1915 Act, the 1913 Act, the Mello -Roos Act, or Proposition 218, as applicable, other than as described herein.

Proposition 218 provides that the initiative power shall “not be prohibited or otherwise limited in matters reducing or repealing any local tax, assessment, fee or charge...” Thus, Proposition 218 removes limitations on the initiative power in matters of, among other things, the Special Tax. Consequently, it is conceivable that the voters of the City or the District could, by future initiative, repeal, reduce, or prohibit the future imposition or increase of any Special Tax, subject to overriding federal constitutional principles relating to impairment of contracts.

Although the provisions of Article XIIIC have not been interpreted by the courts, the City believes that the initiative power cannot be used to reduce or repeal the unpaid Special Tax that are pledged as security for payment of the Bonds or to o therwise interfere with the mandatory, statutory duty of the City and the County Auditor with respect to the unpaid Special Tax that are pledged as security for payment of the Bonds.

The Appellate District, Division One, issued its opinion in 2014 in City of San Diego v. Melvin Shapiro, et al. (228 Cal. App. 4th 756) (the “San Diego Decision”). The case involved a Convention Center Facilities District (the “CCFD”) established by the City of San Diego. The CCFD is a financing district much like a community facilities district established under the provisions of the Act. The CCFD is comprised of all of the real property in the entire City of San Diego. However, the special tax to be levied within the CCFD was to be levied only on hotel properties located within the CCFD.

The election authorizing the special tax was limited to owners of hotel properties and lessees of real property owned by a governmental entity on which a hotel is located. Thus, the election was not a registered voter election. Such appro ach to determining who would constitute the qualified electors of the CCFD was modeled after Section 53326(c) of the Act, which generally provides that, if a special tax will not be apportioned in any tax year on residential property, the legislative body may provide that the vote shall be by the landowners of the proposed district whose property would be subject to the special tax. The Court held that the CCFD special tax election was invalid under the California Constitution because Article XIIIA, Section 4 thereof and Article XIIIC, Section 2 thereof require that the electors in such an election be the registered voters within the district.
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The facts of the San Diego Decision show that there were hundreds of thousands of registered voters within the CCFD (viz., all of the registered voters in the City of San Diego). There were no registered voters in the District at the time of formation. In the San Diego Decision, the Court expressly stated that it was not addressing the validity of landowner voting to impose special taxes pursuant to the Act in situations where there are fewer than 12 registered voters. Thus, by its terms, the Court’s holding does not apply to the Special Tax elections in the District. Moreover, Section 53341 of the Act provides that any “action or proceeding to attack, review, set aside, void or annul the levy of a special tax…shall be commenced within 30 days after the special tax is approved by the voters.” Similarly, Section 53359 of the Act provides that any action to determine the validity of bonds issued pursuant to the Act be brought within 30 days of the voters approving the issuance of such bonds. Voters in the District approved the Special Tax and the issuance of bonds on September 13, 2022.

Based on Sections 53341 and 53 359 of the Act and analysis of existing laws, regulations, rulings and court decisions, the City believes the Special Tax is being levied in accordance with the Rate and Method and the Act.

The interpretation and application of Proposition 218 will ultimately be determined by the courts with respect to a number of the matters discussed above, and it is not possible at this time to predict with certainty the outcome of such determination.

Ballot Initiatives; Initiative 1935
General. Under the Califor nia Constitution, the power of initiative is reserved to the voters for the purpose of enacting statutes and constitutional amendments. Articles XIII A, XIII B, XIII C, and XIII D of the California Constitution were adopted pursuant to measures qualified for the ballot pursuant to the State’s constitutional initiative process , including through Proposition 13 in 1978, Proposition 218 in 1996 and Proposition 26 in 2010. From time to time, other initiative measures could be adopted by California voters. The adoption of any such initiative might place limitations on the ability of the State, the City, or other local agencies to increase revenues or to increase appropriations.

As described above, Proposition 218 was approved by California voters in 1996 and a dded Article XIII C to the California Constitution. On November 2, 2010, the voters of the State approved Proposition 26, known as the “Supermajority Vote to Pass New Taxes and Fees Act” (“Proposition 26”). Proposition 26, among other things, amends Article XIIIC to the California Constitution principally to define what constitutes a “tax” under the limitations and requirements of that provision. Article XIIIC imposes limitations on local governments when imposing certain taxes, including a requirement t hat the local government submit certain taxes to the electorate for its approval. Before Proposition 26, Article XIIIC did not define the term “tax.” Proposition 26 broadly defines a tax under Article XIIIC to include “any levy, charge, or exaction of any kind imposed by a local government.” Proposition 26 lists several exceptions to the definition of “tax,” which include (a) a charge for a specific benefit or privilege, which does not exceed the reasonable costs of providing the benefit or privilege, (b) a charge for a government service or product, which does not exceed the reasonable costs of providing the service or product, (c) a charge for the reasonable regulatory costs of issuing licenses and permits, performing investigations, inspections, and audi ts, and the administrative enforcement thereof, (d) a charge for entrance to or use of local government property, or the purchase, rental, or lease of local government property, (e) a fine, penalty, or other monetary charge imposed as a result of a violati on of law, (f) a charge imposed as a condition of property development, and (g) assessments and property -related fees imposed in accordance with the provisions of Article XIIID.

Initiative 1935. From time to time constitutional initiatives or other initiative measures may be adopted by California voters. The adoption of any such initiative might place limitations on the ability of the State or any political subdivision thereof, including the City, to increase revenues or to increase appropriations, or might affect the ability of the District to collect the Special Tax.

One such proposed voter initiative, titled “The Taxpayer Protection and Government Accountability Act” (“Initiative 1935”) has been determined to be eligible for the November 2024 Statewid e general election and, unless withdrawn by its proponent prior to June 27, 2024, will be certified as qualified for the ballot in such 374

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election. Initiative 1935 would, among other things, amend the State Constitution to impose additional requirements for the imposition of taxes by State and local governments, such as requirements that the title and summary and ballot label or question for each tax measure identify the type, amount or rate, duration, and use of revenue of the tax (the “Initiative 1935 Ball ot Label Requirements”). Additionally, Initiative 1935 would provide that any tax imposed after January 1, 2022, not in compliance with its requirements is void 12 months after the effective date of Initiative 1935 unless subsequently reenacted in accordance therewith. If adopted, the scope and impact of Initiative 1935 would be subject to future judicial interpretation. The District is unable to predict how Initiative 1935, if adopted, might be interpreted by the courts, and there can be no assurance tha t any such interpretation would not have an adverse impact on the District’s ability to levy and collect the Special Tax.

At the request of the Governor of California and the State Legislature, the California Supreme Court has agreed to consider whether In itiative 1935 should be barred from appearing on the ballot as an unlawful revision of the State Constitution, given its potential wide -ranging impact on the ability of the State and local governments to fund their operations. The Governor and the State Legislature have requested a decision by the California Supreme Court by late June 2024, prior to the ballot certification date. Neither the City nor the District can predict the outcome of the pending litigation.

As described in this Official Statement, at the election held on September 13, 2022, the qualified electors within the District, consisting solely of the landowner that at the time owned all of the property within the boundaries of the District not exempt from the Special Tax, voted to approve the measure to levy the Special Tax. In connection with such election, such landowner, as the sole qualified elector, waived all requirements as to the form of the ballot for such election, any requirement pertaining to the conduct of such election, including any requirements as to form or content of election materials and any and all defects in procedure in any proceedings to levy the Special Tax or in the conduct of such election, whether known or unknown (other than, in the case of the election, the right t o have ballots accurately counted). In its Affirmation of Waiver, dated March 6, 2024, such elector acknowledged, confirmed and agreed that each such waiver by such elector was a knowing, intelligent and voluntary waiver and that such waivers by such elect or encompass, and constitute, a waiver of the Initiative 1935 Ballot Label Requirements and the landowner affirmed therein that it had waived the Initiative 1935 Ballot Label Requirements. Furthermore, in any event, the District believes the materials provided to the qualified electors for the September 13, 2022 election within the District substantially complied with the Initiative 1935 Ballot Label Requirements, which is the standard a court would likely apply to any judicial review of the election held within the District on September 13, 2022.

Maximum Special Tax
Within the limits of the Special Tax, the District may adjust the Special Tax levied on all property in the District to provide an amount required to pay interest on and principal of the Bonds, and the amount, if any, necessary to cure delinquencies and replenish the Reserve Fund to an amount equal to the Reserve Requirement for the respective Bonds and to pay Administrative Expenses. However, the amount of the Special Tax that may be levied against any property in the District is subject to the Maximum Special Tax applicable to it. There is no assurance that the Maximum Special Tax on the property in the District will be sufficient to pay the amounts required to be paid by the Indenture at all times. Additionally, pursuant to the Act, the Special Tax levied in any fiscal year against any parcel of residential property in the District may not be increased as a consequence of delinquency or default by the owners of any other parcels within the 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. See “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS — Special Tax.” Payment of the Special Tax is Not a Personal Obligation of the Owners An owner of a parcel of Taxable Property is not personally obligated to pay the Special Tax. Rather, the Special Tax is an obligation only against the parcel of Taxable Property. If the value of a parcel is not 375

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sufficient, taking into account other obligations also payable thereby, to fully secure the Special Tax, the District has no recourse against the owner.

Disclosures to Future Purchasers
The District has recorded a notice of the Special Tax Lien in the Office of the County Recorder. While title companies normally refer to such notices in title reports, there can be no guarantee that such reference will be made or, if made, that a prospective purchaser or lender will consider such Special Tax obligation in the purchase of a parcel of land, a home or a commercial or industrial facility in the District or the lending of money thereon. The Act requires the subdivider (or its agent or representative) of a subdivision to notify a prospective purchaser or long-term lessor of any lot, parcel, or unit subject to a Mello–Roos special tax of the existence and maximum amount of such special tax using a statutorily prescribed form. California Civil Code Section 1102.6b requires that in the case of transfers other than those covered by the above requirement, the seller must at least make a good faith effort to notify the prospective purchaser of the special tax lien in a format prescribed by statute. Failure by an owner of the property to comply with the above requirements, or failure by a purchaser or lessor to consider or understand the nature and existence of the Special Tax, could adversely affect the willingness and ability of the purchaser or lessor to pay the Special Tax when due.

Parity Taxes and Special Assessments
The ability or willingness of a property owner in the District to pay the Special Tax could be affected by the existence of other taxes and assessments imposed upon the property. The Special Tax and any penalties thereon will constitute a lien against the lots and parcels of land on which they will be annually imposed until they are paid. Such lien is on a parity with all special tax and special assessments levied by other agencies and is co-equal to and independent of the lien for general property taxes, othe r special taxes, and certain special assessments regardless of when they are imposed upon the same property. The Special Tax has priority over all existing and future private liens imposed on the property. In addition, other public agencies whose boundar ies overlap those of the District could, with or in some circumstances without the consent of the owners of the land in the District, impose additional taxes or assessment liens on the property in the District in order to finance public improvements to be located inside or outside of the District.

The District has no control over the ability of other entities and districts to issue indebtedness secured by special tax or assessments payable from all or a portion of the property in the District. In addition, the City is not prohibited itself from establishing assessment districts, community facilities districts or other districts which might impose assessments or taxes against property in the District. In the event any additional improvements are financed pursuant to the establishment of an assessment district, community facilities district or other district, any taxes or assessments levied to finance such improvements will have a lien on a parity with the lien of the Special Tax. The imposition of additional liens on a parity with the Special Tax could reduce the ability or willingness of the property owners to pay the Special Tax and increase the possibility that foreclosure proceeds will not be adequate to pay delinquent Special Tax or the principal of and interest on the Bonds when due.

Depletion of Reserve Fund
The Reserve Fund is to be maintained at an amount equal to the Reserve Requirement. Money in said fund may be used to pay debt service on the Bonds in the event the proceeds of the levy and collec tion of the Special Tax against property in the District are insufficient. If funds in the Reserve Fund are used to pay debt service on the Bonds, the funds can be replenished from the proceeds of the levy and collection of the Special Tax that are in excess of the amount required to pay all amounts to be paid pursuant to the Indenture. However, no replenishment from the proceeds of a levy of the Special Tax can occur as long as the proceeds that are collected from the levy of the Special Tax at the maximum tax rates, together with other available funds, remain insufficient to pay all such amounts. Thus, it is possible that the Reserve Fund will be depleted by its use to pay such amounts and will not be replenished by the levy of the Special Tax. There is no assurance that the amount 376

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in the Reserve Fund will, at any particular time, be sufficient to pay all such amounts or that any amounts of the Reserve Requirement used for debt service on the Bonds will be fully replenished from the proceeds of the levy and collection of the Special Tax.

Bankruptcy and Legal Delays
The payment of the Special Tax and the ability of the District to foreclose the lien of a delinquent unpaid tax, as discussed in “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS,” may be limited by bankruptcy, insolvency or other laws generally affecting creditors’ rights or by the laws of the State of California relating to judicial foreclosure. In addition, the prosecution of a foreclosure action could be delayed due to crowded local court cal endars or delays in the legal process. The various legal opinions to be delivered concurrently with the delivery of the Bonds (including Bond Counsel’s approving legal opinion) will be qualified as to the enforceability of the various legal instruments by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights, by the application of equitable principles and by the exercise of judicial discretion in appropriate cases.

Although bankruptcy proceedings would not ca use the obligation to pay the Special Tax to become extinguished, the bankruptcy of a property owner could result in a delay in prosecuting superior court foreclosure proceedings because federal bankruptcy laws may provide for an automatic stay of foreclos ure and sale of tax sale proceedings. Any such delays could increase the likelihood of a delay or default in payment of the principal of and interest on the Bonds and the possibility of delinquent tax installments not being paid in full. Moreover, if the value of the subject property is less than the lien of the Special Tax, such excess could be treated as an unsecured claim by the bankruptcy court. Further, should remedies be exercised under the federal bankruptcy laws against Taxable Property, payment of the Special Tax may be subordinated to bankruptcy law priorities.

Thus, certain claims may have priority over the Special Tax in a bankruptcy proceeding even though they would not outside of a bankruptcy proceeding.

FDIC/Federal Government Interests In Properties
The ability of the District to collect interest and penalties specified by the Act and to foreclose the lien of delinquent Special Tax may be limited in certain respects with regard to parcels in which the Federal Deposit Insurance Corporation (the “FDIC”), or other federal government entities such as Fannie Mae or Freddie Mac, has or obtains an interest.

In the case of the FDIC, in the event that any financial institution making a loan which is secured by parcels is taken over by the FDIC and the applicable Special Tax is not paid, the remedies available to the District may be constrained. The FDIC’s policy statement regarding the payment of state and local real property taxes (the “Policy Statement”) provides that taxes other than ad valorem taxes which are secured by a valid lien in effect before the FDIC acquired an interest in a property will be paid unless the FDIC determines that abandonment of its interests is appropriate. The Policy Statement provides that the FDIC generally will not pay installments of non-ad valorem taxes which are levied after the time the FDIC acquires its fee interest, nor will the FDIC recognize the validity of any lien to secure payment except in certain cases where the Resolution Trust Corporation had an interest in property on or prior to December 31, 1995. Moreover, the Policy Statement provides that, with respect to parcels on which the FDIC holds a mortgage lien, the FDIC will not permit its lien to be foreclosed out by a taxing authority without its specific consent, nor will the FDIC pay or recognize liens for any penalties, fines or similar claims imposed for the non-payment of taxes.

The FDIC has taken a position similar to that expressed in the Policy Statement in legal proceedings brought against Orange County, California, in United States Bankruptcy Court and in Federal District Court.

The Bankruptcy Court issued a ruling in favor of the FDIC on certain of such claims. Orange County appealed that ruling, and the FDIC cross -appealed. On August 28, 2001, the Ninth Circuit Court of Appeals issued a ruling favorable to the FDIC except with respect to the payment of pre-receivership liens based upon delinquent property tax.
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The District is unable to predict what effect the application of the Policy Statement would have in the event of a delinquency with respect to parcels in which the FDIC has or obtains an interest, although prohibiting the lien of the FDIC to be foreclosed out at a judicial foreclosure sale would prevent or delay the foreclosure sale.

In the case of Fannie Mae and Freddie Mac, in the event a parcel of Taxable Property is owned by a federal government entity or federal government sponsored entity, such as Fannie Mae or Freddie Mac, or in the event a private deed of trust secured by a parcel of Taxable Property is owned by a federal government entity or federal government sponsored entity, such as Fannie Mae or Freddie Mac, the ability to foreclose on the parcel or to collect delinquent Special Tax may be limited. Federal courts have held that, based on the supremacy clause of the United States Constitution, in the absence of Congressional intent to the contrary, a state or local agency cannot foreclose to collect delinquent taxes or assessments if foreclosure would impair the federal government interest. This means that, unless Congress has otherwise provided, if a federal government entity owns a parcel of Taxable Property but does not pay taxes and assessments levied on the parcel (including the Special Tax), the applicable state and local governments cannot foreclose on the parcel to collect the delinquent taxes and assessments.

Moreover, unless Congress has otherwise provided, if the federal government has a mortgage interest in the parcel and the District wishes to foreclose on the parcel as a result of delinquent Special Tax, the property cannot be sold at a foreclosure sale unless it can be sold for an amount sufficient to pay delinquent taxes and assessments on a parity with the Special Tax and preserve the federal government’s mortgage interest.

The District’s remedies may also be limited in the case of delinquent Special Tax with respect to parcels in which other federal agencies (such as the Internal Revenue Service and the Drug Enforcement Administration) have or obtain an interest.

Geologic, Topographic and Climatic Conditions
The District, like all California communities, may be subject to unpredictable seismic activity, fires, flood, or other natural disasters. Southern California is a seismically active area. Seismic activity represents a potential risk for damage to buildings, roads, bridges and property within the District. In addition, land susceptible to seismic activity may be subject to liquefaction during the occurrence of such event.

Like all of Southern California, the land within the District is subject to seismic activity. The District is not located in a County Designated Fault Zone or an Earthquake Fault Zone Boundary. However, faults that have the potential to generate the strongest ground shaking in the F ontana area include the Cucamonga (thrust fault), the San Jacinto (strike -slip fault), and the San Andreas (strike -slip) fault. The Cucamonga fault is an active fault that crosses the northern portion of the City, trending northwest along the foot of the San Gabriel Mountains. The Lytle Creek Branch of the San Jacinto Fault is an active fault that crosses the extreme northeast portion of the City in a southeastern direction. There are several other faults that border the Lytle Creek alluvial basin, including the Chino, San Andreas and San Jacinto faults.

The Federal Emergency Management Agency has determined that the District is located in a Zone “X” flood area (an area determined to be outside of the 0.2 percent annual chance floodplain), and flood insura nce will not be required.

In recent years, wildfires have caused extensive damage throughout the State. In some instances, entire neighborhoods have been destroyed. Several of the fires that occurred in recent years damaged or destroyed property in areas that were not previously considered to be at risk from such events. The last major wildfire in the vicinity of the City was the Grand Prix Fire in October 2003. There have been smaller fires, such as the 147- acre Sierra Fire that burned in November 2018 and the 277-acre Karen Fire in July 2020. Per the City’s General Plan and Zoning Map, the District is located within a local responsibility area that is contiguous to a very high fire hazard area.
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Some commentators believe that climate change will lead t o even more frequent and more damaging wildfires in the future. Property damage due to wildfire could result in a significant decrease in the market value of property in the District and in the ability or willingness of property owners to pay the Special Tax.

In the event of a severe earthquake, fire, flood or other natural disaster, there may be significant damage to both property and infrastructure in the District. As a result, a substantial portion of the property owners may be unable or unwilling to pay the Special Tax when due. In addition, the value of land in the District could be diminished in the aftermath of one or more of such events, reducing the resulting proceeds of foreclosure sales in the event of delinquencies in the payment of the Special Tax.

Hazardous Substances
While governmental taxes, assessments, and charges are a common claim against the value of a parcel of Taxable Property, other less common claims may be relevant. One example is a claim with regard to a hazardous substance.

In general, the owners and operators of a parcel of Taxable Property may be required by law to remedy conditions of the parcel relating to releases or threatened releases of hazardous substances. The federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, sometimes referred to as “CERCLA” or the “Superfund Act,” is the most well-known and widely applicable of these laws, but California laws with regard to hazardous substances are also stringent and similar. Under many of these l aws, the owner (or operator) is obligated to remedy a hazardous substance condition of property whether or not the owner (or operator) has anything to do with creating or handling the hazardous substance. The effect, therefore, should any of the Taxable Property be affected by a hazardous substance is to reduce the marketability and value of the parcel by the costs of remedying the condition, because the purchaser, upon becoming owner, will become obligated to remedy the condition just as is the seller. F urther, such liabilities may arise not simply from the existence of a hazardous substance but from the method of handling it. All of these possibilities could significantly affect the value of the property that is realizable upon a delinquency and foreclosure.

While the District is not aware that the owner (or operator) of any of Taxable Property has such a current liability with respect to any of the Taxable Property, it is possible that such liabilities do currently exist and that the District is not aware of them. Lennar Homes has also represented to the District that it is not aware of any substances currently classified as hazardous by the federal government or the State located on its property within the District.

Further, it is possible that liabilities may arise in the future with respect to any of the Taxable Property resulting from the existence, currently, on the parcel of a substance presently classified as hazardous but which has not been released or the release of which is not presently threatened, or may arise in the future resulting from the existence, currently, on the parcel of a substance not presently classified as hazardous but which may in the future be so classified. Further, such liabilities may arise not simply from the existence of a hazardous substance but from the method of handling it. All of these possibilities could significantly affect the value of a parcel of Taxable Property that is realizable upon a delinquency.

No Acceleration Provision
The Indenture does not contain a provision allowing for the acceleration of the Bonds in the event of a payment default or other default under the terms of the Bonds or the Indenture.

Bonds Are Limited Obligations
Neither the faith and credit nor the taxing power of the District (except to the limited extent set forth in the Indenture), the City, the State or any political subdivision thereof is pledged to the payment of the Bonds or any Additional Bonds. The Bonds are limited obligations of the District; and, except as provided in the 379

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Indenture, they are payable solely from Net Special Tax Revenues and the other assets pledged therefore under the Indenture. Net Special Tax Revenues could be insufficient to pay debt service on the Bonds as a result of delinquencies in the payment of the Spe cial Tax or the insufficiency of proceeds derived from the sale of land within the District following a delinquency in the payment of the applicable Special Tax. The District has no obligation to pay debt service on the Bonds in the event of insufficient Net Special Tax Revenues, except to the extent that money is available for such purpose in the Reserve Fund. The District’s only obligation with respect to delinquent Special Tax is to pursue judicial foreclosure proceedings under the circumstances described in the Indenture. See “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS — Covenant for Superior Court Foreclosure.”
Loss of Tax Exemption
As discussed under “TAX MATTERS,” interest on the Bonds could become includable in gross income for purposes of federal income taxation retroactive to the date of issuance, as a result of acts or omissions of the District subsequent to the issuance of the Bonds in violation of the District’s covenants with respect to the Bonds.

Should interest become includable in gross income, the Bonds are not subject to redemption by reason thereof and will remain outstanding until maturity or unless earlier redeemed pursuant to optional or mandatory redemption or redemption upon prepayment of the Special Tax.

Potential Early Redemption of Bonds from Special Tax Prepayments Property owners within the District are permitted to prepay their Special Tax at any time. Such payments will result in a mandatory redemption of Bonds from Special Tax prepayments on the Interest Payment Date for which timely notice may be given under the Indenture following the receipt of such Special Tax prepayment. The resulting redemption of Bonds purchased at a price greater than par could reduce the otherwise expected yield on such Bonds. See “THE BONDS — Redemption — Mandatory Redemption from Special Tax Prepayments.”
Cybersecurity
The City, like many other public and private entities, relies on a large and complex technology environment to conduct its operations. As a recipient and provider of personal, private, or sensitive information, the City is subject to multiple cyber threats including, but not limited to, hacking, viruses, malware and other attacks on computer and other sensitive digital networks and systems. Entities or individuals may attempt t o gain unauthorized access to the City’s digital systems for the purposes of misappropriating assets or information or causing operational disruption and damage. To date, the City has not experienced an attack on its computer operating systems which resul ted in a breach of its cybersecurity systems that are in place. However, no assurances can be given that the City’s efforts to manage cyber threats and attacks will be successful or that any such attack will not materially impact the operations or finances of the City.

In May 2021, a public facing web server of the City that was responsible for building permit and inspection scheduling was compromised. The system contained vendor and database account credentials that were promptly changed. An investigation revealed that the credentials had not been used since the compromise and that changing the credentials prevented any further unauthorized access. All traces of the compromise were removed. Mitigation measures, including a web application firewall and Secure Sockets Layer (SSL) decryption, were put into place to prevent future compromises and additional prevention measures have been implemented.

No data was lost and no damage to any systems, financial or otherwise, occurred. There were no costs associated with remediation.

Impact of Economic Conditions on the Development in the District Certain events and factors which negatively affect the regional, State and national economies could have an adverse effect on the pace at which Lennar Homes is able to complete and sell homes and demand by and the 380

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ability of individuals to purchase homes within the District. Such events and factors could include rising inflation and interest rates, persistent supply chain issues, further impacts of the COVID-19 pandemic and global market instability caused by the war in Ukraine. Any adverse impact of the foregoing and other economic factors on the projects in the District and the real estate market in general cannot be predicted.

Amid an unexpected run on deposits, the Federal Deposit Insurance Corporation (the “FDIC”) announced on March 10, 2023 that it h ad been appointed as receiver for Silicon Valley Bank (“SVB”), a large California bank and the 16th largest bank in the United States, and was liquidating SVB as a going concern.

Additionally, on March 12, 2023, the FDIC announced that it had been appointed as receiver for Signature Bank, another large regional bank. However, the United States Treasury Department, the Federal Reserve and the FDIC issued a joint statement that all deposits at both institutions would be honored, regardless of dollar amount.

On March 26, 2023, First Citizens BancShares announced that it would acquire SVB. On May 1, 2023, the FDIC announced that it had been appointed as receiver for First Republic Bank and reached a purchase and assumption agreement with JPMorgan Chase Bank, National Association, to assume all of the deposits and substantially all of the assets of First Republic Bank. Due to the failures of SVB, Signature Bank, and First Republic Bank, there has been uncertainty and concern in the financial markets that there may be additional bank liquidity issues.

Lennar Homes expects to use internally generated funds (which may include home sales proceeds and funding from its parent company, Lennar Homes Homes) to complete its development in the District. However, the uncertainty in the financial markets may affect homebuyers’ willingness or ability to obtain financing for the purchase of new homes within the District, which, in turn, could impact Lennar Homes’ ability or determination to complete its development in the D istrict in the budget and timeframe described herein. See “PROPERTY OWNERSHIP AND THE DEVELOPMENT.”

CONTINUING DISCLOSURE
Pursuant to a Continuing Disclosure Agreement (the “District Continuing Disclosure Agreement”) with U.S. Bank Trust Company, National Association, in its capacity as Trustee and in its capacity as dissemination agent, the District has agreed to provide, or cause to be provided, to the Electronic Municipal Market Access System of the Municipal Securities Rulemaking Board, which can be fo und on the Internet at www.emma.msrb.org (“EMMA”), on an annual basis certain financial information and operating data concerning the District. The District has further agreed to provide notice to EMMA of certain listed events. The District’s covenants have been made in order to assist the Underwriter in complying with the Rule.

The District has not previously entered into any undertaking with respect to the Rule. However, the City, as well as the Fontana Public Financing Authority (the “Authority”), the Fontana Public Facilities Financing Authority (the “Facilities Authority”), the Successor Agency to the Fontana Redevelopment Agency (the “Successor Agency”) and various community facilities districts within the City (each, a “CFD”), all of which are entities with the City Council as the legislative body, have entered into numerous continuing disclosure undertakings.

Except as described below, within the last five years, the City and its related entities have complied in all material respects with its unde rtakings under the Rule: (i) t he Authority and the Facilities Authority with respect to their respective bond issues and 12 CFDs with respect to each such CFD’s bond issue(s) filed the City’s Fiscal Year 2019-20 audited financial statements late and failed to file unaudited financial statements on or before the deadlines therefore; (ii) 12 CFDs with respect to each such CFDs’ bond issue(s) and the Facilities Authority with respect to its bond issues filed unaudited financial statements for Fiscal Year 2020-21 but did so after the deadline for meeting those continuing disclosure obligations; the audited financial statement s were subsequently filed to EMMA when they became available; (iii) the Successor Agency with respect to its bonds filed unaudited financial statements for Fiscal Year 2020-21 prior to the deadline therefore and posted audited financial statements when such document became available; (iv) the Successor Agency with respect to its bonds filed its Fiscal Year 2022 audited financial statements late and failed to file unaudited financial statements on or 381

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before the deadline therefore; (v) with respect to its Fiscal Year 2021-22 disclosure, the Facilities Authority filed unaudited financial information when its audited financial statements were not available, but such filing excluded certain required information typically included in audited financial statements; the Fiscal Year 2021-22 audited financial statements were subsequently posted to EMMA when they became available; (vi) a CFD failed to file one annual report for one issue of bonds for which the official statement relating to such bonds contained all of the information required to be contained in such report ; (vii) the Facilities Authority with respect to two bond issues filed the City’s Fiscal Year 2022-23 audited financial statements six days late and failed to file unaudited financial statements on or before the deadlines therefor; and (viii) the District is aware that not all of the required information was included with respect to a number of annual report filings by the City, the Authority, the Successor Agency and several CFDs, including required tabular information; The City has since made filings on behalf of itself and its related entities to correct material omissions with respect to the filings that were required to have been made within the past five years and has adopted written procedures to ensure future compliance with the City’s disclosure undertakings and those of its related entities.

Except as disclosed in this Official Statement, within the last five years, the City, the Successor Agency, the Facilities Authority and the Authority have not failed to timely comply with their respective prior continuing disclosure obligations under the Rule in all material respects. The full text of the form of the District Continuing Disclosure Agreement is set forth in Appendix G.

TAX MATTERS
In the opinion of Orrick, Herrington & Sutcliffe LLP, Bond Counsel to the District (“Bond Counsel”), based upon an analysis of existing laws, regulations, rulings and court decisions, and assuming, among other matters, the accuracy of certain representations and compliance with certain covenants, interest on the Bonds is excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986 (the “Code”) and is exempt from State of California personal income taxes. Bond Counsel is of the further opinion that interest on the Bond s is not a specific preference item for purposes of the federal individual alternative minimum tax. Bond Counsel observes that interest on the Bonds included in adjusted financial statement income of certain corporations is not excluded from the federal c orporate alternative minimum tax.

Bond Counsel expresses no opinion regarding any other tax consequences related to the ownership or disposition of, or the amount, accrual or receipt of interest on, the Bonds. A complete copy of the proposed form of opinion of Bond Counsel is set forth in APPENDIX D hereto.

To the extent the issue price of any maturity of the Bonds is less than the amount to be paid at maturity of such Bonds (excluding amounts stated to be interest and payable at least annually over the t erm of such Bonds), the difference constitutes “original issue discount,” the accrual of which, to the extent properly allocable to each Beneficial Owner thereof, is treated as interest on the Bonds which is excluded from gross income for federal income tax purposes and exempt from State of California personal income taxes. For this purpose, the issue price of a particular maturity of the Bonds is the first price at which a substantial amount of such maturity of the Bonds is sold to the public (excluding bond houses, brokers, or similar persons or organizations acting in the capacity of underwriters, placement agents or wholesalers). The original issue discount with respect to any maturity of the Bonds accrues daily over the term to maturity of such Bonds on the basis of a constant interest rate compounded semiannually (with straight -line interpolations between compounding dates). The accruing original issue discount is added to the adjusted basis of such Bonds to determine taxable gain or loss upon trade or business disposition (including sale, redemption, or payment on maturity) of such Bonds. Beneficial Owners of the Bonds should consult their own tax advisors with respect to the tax consequences of ownership of Bonds with original issue discount, including the treatment of Beneficial Owners who do not purchase such Bonds in the original offering to the public at the first price at which a substantial amount of such Bonds is sold to the public.

Bonds purchased, whether at original issuance or otherwise, for an amount higher than their principal amount payable at maturity (or, in some cases, at their earlier call date) (“Premium Bonds”) will be treated as 382

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having amortizable bond premium. No deduction is allowable for the amortizable bond premium in the case of bonds, like the Premium Bonds, the interest on which is excluded from gross income for federal income tax purposes. However, the amount of tax-exempt interest received, and a Beneficial Owner’s basis in a Premium Bond, will be reduced by the amount of amortizable bond premium properly allocable to such Beneficial Owner.

Beneficial Owners of Premium Bonds should consult their own tax advisors with respect to the proper treatment of amortizable bond premium in their particular circumstances.

The Code imposes various restrictions, conditions and requirements relating to the exclusion from gross income for federal income tax purposes of interest on obligations such as the Bonds. The District has made certain representations and covenanted to comply with certain restrictions, conditions and requirements designed to ensure that interest on the Bonds will not be included in federal gross income. Inaccuracy of these representations or failure to comply with these covenants may result in interest on the Bonds being included in gross income for federal income tax purposes, possibly from the date of original issuance of the Bonds. The opinion of Bond Counsel assumes the accuracy of these representations and compliance with these covenants.

Bond Counsel has no t undertaken to determine (or to inform any person) whether any actions taken (or not taken), or events occurring (or not occurring), or any other matters coming to Bond Counsel’s attention after the date of issuance of the Bonds may adversely affect the v alue of, or the tax status of interest on, the Bonds.

Accordingly, the opinion of Bond Counsel is not intended to, and may not, be relied upon in connection with any such actions, events or matters.

Although Bond Counsel is of the opinion that interest on the Bonds is excluded from gross income for federal income tax purposes and is exempt from State of California personal income taxes, the ownership or disposition of, or the accrual or receipt of amounts treated as interest on, the Bonds may otherwise aff ect a Beneficial Owner’s federal, state or local tax liability. The nature and extent of these other tax consequences depends upon the particular tax status of the Beneficial Owner or the Beneficial Owner’s other items of income or deduction. Bond Counsel expresses no opinion regarding any such other tax consequences.

Current and future legislative proposals, if enacted into law, clarification of the Code or court decisions may cause interest on the Bonds to be subject, directly or indirectly, in whole or in part, to federal income taxation or to be subject to or exempted from state income taxation, or otherwise prevent Beneficial Owners from realizing the full current benefit of the tax status of such interest. The introduction or enactment of any such legislative proposals or clarification of the Code or court decisions may also affect, perhaps significantly, the market price for, or marketability of, the Bonds. Prospective purchasers of the Bonds should consult their own tax advisors regarding the pote ntial impact of any pending or proposed federal or state tax legislation, regulations or litigation, as to which Bond Counsel expresses no opinion.

The opinion of Bond Counsel is based on current legal authority, covers certain matters not directly addressed by such authorities, and represents Bond Counsel’s judgment as to the proper treatment of the Bonds for federal income tax purposes. It is not binding on the Internal Revenue Service (“IRS”) or the courts.

Furthermore, Bond Counsel cannot give and has not given any opinion or assurance about the future activities of the District, or about the effect of future changes in the Code, the applicable regulations, the interpretation thereof or the enforcement thereof by the IRS. The District has covenanted, however, to comply with the requirements of the Code.

Bond Counsel’s engagement with respect to the Bonds ends with the issuance of the Bonds, and, unless separately engaged, Bond Counsel is not obligated to defend the District or the Beneficial Owners regarding the tax-exempt status of the Bonds in the event of an audit examination by the IRS. Under current procedures, Beneficial Owners would have little, if any, right to participate in the audit examination process. Moreover, because achieving judicial review in connection with an audit examination of tax -exempt bonds is difficult, obtaining an independent review of IRS positions with which the District legitimately disagrees, may not be practicable. Any action of the IRS, including but not limited to selection of the Bonds for audit, or the course or result of such audit, or an audit of bonds presenting similar tax issues may affect the market price for, or the marketability of, the Bonds, and may cause the District or the Beneficial Owners to incur significant expense. 383

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Payments on the Bonds generally will be subject to U.S. information reporting and possibly to “backup withholding.” Under Section 3406 of the Code and applicable U.S. Treasury Regulations issued thereunder, a non-corporate Beneficial Own er of Bonds may be subject to backup withholding with respect to “reportable payments,” which include interest paid on the Bonds and the gross proceeds of a sale, exchange, redemption, retirement or other disposition of the Bonds. The payor will be required to deduct and withhold the prescribed amounts if (i) the payee fails to furnish a U.S. taxpayer identification number (“TIN”) to the payor in the manner required, (ii) the IRS notifies the payor that the TIN furnished by the payee is incorrect, (iii) there has been a “notified payee underreporting” described in Section 3406(c) of the Code or (iv) the payee fails to certify under penalty of perjury that the payee is not subject to withholding under Section 3406(a)(1)(C) of the Code. Amounts withheld under the backup withholding rules may be refunded or credited against a Beneficial Owner’s federal income tax liability, if any, provided that the required information is timely furnished to the IRS. Certain Beneficial Owners (including among others, corporations and certain tax-exempt organizations) are not subject to backup withholding. The failure to comply with the backup withholding rules may result in the imposition of penalties by the IRS.

ABSENCE OF LITIGATION
In connection with the issuance of the Bonds, the City Attorney of the City will deliver a certificate to the effect that, to the best of the City Attorney’s knowledge, after due inquiry and investigation, there is no action, suit, proceeding or investigation at law or in equity before or by any court, public board or body, pending or threatened, or any unfavorable decision, ruling or finding, against or affecting the City or the District, which would adversely impact the ability of the City or the District to complete the transactions described in, or contemplated by, the Indenture or this Official Statement, restrain or enjoin the collection of the Special Tax, or in any way contest or affect the validity of the Bonds, the Indenture, the Special Tax, or the transactions described herein.

ABSENCE OF RATINGS
The District has not made, and does not contemplate making, application to any rating organization for a rating on the Bonds.

CERTAIN LEGAL MATTERS
Orrick, Herrington & Sutcliffe LLP, Bond Counsel to the District, will render an opinion with re spect to the validity and enforceability of the Indenture and as to the validity of the Bonds. A copy of the form of such approving opinion is attached hereto as Appendix D. Bond Counsel has not undertaken any responsibility for the accuracy, completeness or fairness of the Official Statement or other offering materials relating to the Bonds and expresses no opinion relating thereto. Certain legal matters will be passed upon for the City by the City Attorney and by Stradling Yocca Carlson & Rauth LLP, Newport Beach, California, as Disclosure Counsel.

Certain legal matters will be passed upon for the Underwriter by its counsel, Anzel Galvan LLP, San Francisco, California.

Although it is serving as Bond Counsel to the District in connection with the issuan ce and sale of the Bonds, Bond Counsel represents the Underwriter in connection with other financings and matters unrelated to the Bonds. Disclosure Counsel and the City Attorney also represent the Underwriter in connection with other financings and matters unrelated to the Bonds.

UNDERWRITING
The Bonds are being purchased by Stifel, Nicolaus & Company, Incorporated (the “Underwriter”). The Underwriter has agreed to purchase the Bonds at a price of $____________ ($____________ principal amount, [plus/less] [net] original issue [premium/discount] of $ _________ and less an Underwriter’s discount of $_________). The Bond Purchase Agreement relating to the Bonds provides that the Underwriter will purchase 384

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all of the Bonds if any are purchased, the obligation to make such purchase being subject to certain terms and conditions set forth in the Bond Purchase Agreement, the approval of certain legal matters by counsel and certain other conditions. The Underwriter’s compensation is contingent upon the successful issuance of the Bonds.

Under certain circumstances, the Underwriter may offer and sell Bonds to certain dealers and others at prices lower than the offering prices stated on the inside front cover page hereof. The offering prices may be changed from time to time by the Underwriter.

FINANCIAL INTERESTS
The fees being paid to the Municipal Advisor, Bond Counse l, Disclosure Counsel, Underwriter, and Underwriter’s Counsel are contingent upon the issuance and delivery of the Bonds.

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MUNICIPAL ADVISOR
The District has retained CSG Advisors Incorporated, San Francisco, California, as municipal advisor (the “Municipal Advisor”) for the sale of the Bonds. The Municipal Advisor is not obligated to undertake, and has not undertaken to make, an independent verification or to assume any responsibility for the accuracy, completeness or fairness of the information contained in this Official Statement.

CSG Advisors Incorporated is an independent advisory firm and is not engaged in the business of underwriting, trading or distributing municipal or other public securities.

ADDITIONAL INFORMATION
The purpose of this Official St atement is to supply information to prospective buyers of the Bonds.

Quotations and summaries and explanations of the Bonds and documents contained in this Official Statement do not purport to be complete, and reference is made to such documents for full and complete statements and their provisions.

The execution and delivery of this Official Statement by the City Manager of the City has been duly authorized by the City Council of the City of Fontana acting in its capacity as the legislative body of the District.

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

City Manager

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APPENDIX A

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
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RATE AND METHOD OF APPORTIONMENT FOR
CITY OF FONTANA COMMUNITY FACILITIES DISTRICT No. 111
(MONTERADO)
A Special Tax as hereinafter defined shall be levied on all Assessor’s Parcels of Taxable Property in City of Fontana Community Facilities District No. 111 (Monterado) (“CFD No. 111”) and collected each Fiscal Year, in an amount determined by the City Counci l of the City of Fontana, through the application of the Rate and Method of Apportionment as described below. All of the real property in CFD No. 111, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Acre” or “Acreage” means the land area expressed in acres of an Assessor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded County map or the land area calculated to the reasonable satisfaction of the CFD Administrator using the boundaries set forth on such map or plan. The square footage of an Assessor’s Parcel is equal to the Acreage of such parcel multiplied by 43,560. “Act” means the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 (commencing with Section 53311) of the California Government Code. “Administrative Expenses” means the following actual or reasonably estimated costs directly related to the administration of CFD No. 111, including but not limited to: the costs of computing the S pecial Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 111 or any designee thereof of complying with arbitrage rebate requirements with respect to the Special Tax and CFD No. 111 Bonds; the costs to the City, CFD No. 111 or any designee thereof of complying with disclosure requirements of the City, CFD No. 111 or obligated persons associated with applicable federal and state securities laws and the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 111, or any designee thereof related to the reduction of the Assigned Facilities Special Tax and Backup Facilities Special Tax in accordance with Section C.1 herein; the costs of the City, CFD No. 111 or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees and third party expenses related to CFD No. 111 Bonds. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 111 for any other administrative purposes of CFD No. 111, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.
“Assessor” means the Assessor of the County.
“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. 387

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“Assessor’s Parcel Map” means an official map of the Assessor designating parcels by Assessor’s Parcel number.
“Assigned Facilities Special Tax” means the Facilities Special Tax for each Land Use Class of Developed Property, as determined in accordance with Section C.1.a.(2) below. “Assigned Services Special Tax” means the Services Special Tax, determined in accordance with Section C.2.b herein, that can be levied in any Fiscal Year on any Assessor’s Parcel of Developed Property. “Authorized Facilities” means those facilities eligible to be funded by CFD No. 111. “Authorized Services” means those services eligible to be funded by CFD No. 111 in accordance with the Act, including, but not limited to, fire protection and suppression services, maintenance and lighting of parks, parkways, streets, roads and open space, flood and storm protection services and maintenance and operation of any real property or other tangible property with an estimated useful life of five or more years that is owned by the City.
“Backup Facilities Special Tax” means the Facilities Special Tax applicable to each Assessor’s Parcel of Developed Property, as determined in accordance with Section C.1.a.(3) below. “Buildout” means, for CFD No. 111, that all expect ed building permits for residential dwelling units and/or non-residential development to be constructed within CFD No. 111 have been issued, as determined by the CFD Administrator.
“CFD Administrator” means an official of the City, or designee thereof, res ponsible for determining the Special Tax Requirement for Facilities and the Special Tax Requirement for Services, providing for the levy and collection of the Special Taxes, and performing other duties as set forth herein. “CFD No. 111” means City of Fontana Community Facilities District No. 111 (Monterado). “CFD No. 111 Bonds” means any bonds or other debt (as defined in Section 53317(d) of the Act), whether in one or more series, issued by CFD No. 111 and secured by the Facilities Special Tax levy on property within the boundaries of CFD No. 111 under the Act.
“City” means the City of Fontana, California.
“Contractual Impositions” means (a) a voluntary contractual assessment established and levied on an Assessor’s Parcel pursuant to Chapter 29 of Part 3 of Division 7 of the California Streets and Highways Code (commencing with Section 5898.10 et seq.), as amended from time to time, (b) a special tax established and levied on an Assessor’s Parcel pursuant to Section 53328.1 of the California Government Code and related provisions of the Act, as amended from time to time, and (c) any other fee, charge, tax or assessment established and levied on an individual Assessor’s Parcel pursuant to a contractual agreement or other voluntary consent by the owner thereof.
“Council” means the City Council of the City acting as the legislative body of CFD No. 111. “County” means the County of San Bernardino.
“Developed Property” means, for each Fiscal Year, (i) with respect to the Facilities Special Tax, all Taxable Property, exclusive of Taxable Public Property and Taxable Property Owner Association Property, for which a building permit for new construction, other than the construction of a garage, parking lot, or parking structure, was issued after January 1, 2022 and on or before May 1 of the Fiscal Year preceding the Fiscal Year for which the Facilities Special Taxes are being levied, and (ii) with respect to the Services Special Tax, all Taxable 388

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Property, exclusive of Taxable Public Property and Taxable Property Owner Association Property, (a) for which the Final Residential Subdivision was recorded prior to the Fiscal Year for which the Services Special Taxes are being levied, or (b) for which a building permit has been issued with respect to Non-Residential Property on or before May 1 of the Fiscal Year preceding the Fiscal Year for which the Services Special Taxes are being levied. “Facilities Special Tax” means the special tax authorized to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property within CFD No. 111 to fund the Special Tax Requirement for Facilities, as set forth in Section C.1 herein.
“Final Residential Subdivision” means a Final Subdivision that creates individual lots for which building permits may be issued for residential dwelling units without further subdivision of such property. “Final Subdivision” means (i) a subdivision of property by recordation of a final map, parcel map, or lot line adjustment approved by the City pursuant to the Subdivision Map Act (California Government Co de 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 su ch building permits, shall be considered a Final Subdivision, and the portion of the condominium plan for which building permits have been issued shall be defined as Developed Property. “Fiscal Year” means the period starting July 1 and ending on the following June 30. “Indenture” means the indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which CFD No. 111 Bonds are issued, as modified, amended and/or supplemented from time to time. “Land Use Class” means any of the classes listed in Table 1, Table 2, or Table 3 herein. “Lower Income Households Welfare Exemption Property” means, for each Fiscal Year, an Assessor’s Parcel within the boundaries of CFD No. 111 that is entitled to a welfare exemption under subdivis ion (g) of Section 214 of the California Revenue and Taxation Code (or any successor statute), as indicated in the County’s assessment roll finalized as of the last preceding January 1. “Maximum Facilities Special Tax” means the maximum Facilities Special Tax, determined in accordance with Section C.1 herein, that can be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property. “Maximum Services Special Tax” means the maximum Services Special Tax, determined in accordance with Section C.2 herein, that can be levied in any Fiscal Year on any Assessor’s Parcel of Developed Property. “Minimum Sale Price” means the minimum price at which parcels of a given Land Use Class have sold or are expected to be sold in a normal marketing environment and shall not include prices for such parcels that are sold at a discount to expected sales prices for the purpose of stimulating the initial sales activity with respect to such Land Use Class.
“Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit(s) has been issued by the City permitting the construction of one or more non-residential structures or facilities. “Outstanding Bonds” means all CFD No. 111 Bonds which are outstanding under the Indenture. 389

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“Price Point Consultant” means any consultant or firm of such consultants selected by CFD No. 111 that (a) has substantial experience in performing price point studies for residential dwelling units within community facilities districts or otherwise estimating or conf irming pricing for residential dwelling units in community facilities districts, (b) has recognized expertise in analyzing economic and real estate data that relates to the pricing of residential dwelling units in community facilities districts, (c) is in fact independent and not under the control of CFD No. 111 or the City, (d) does not have any substantial interest, direct or indirect, with or in (i) CFD No. 111, (ii) the City, (iii) any owner of real property in CFD No. 111, or (iv) any real property in CFD No. 111, and (e) is not connected with CFD No. 111 or the City as an officer or employee thereof, but who may be regularly retained to make reports to CFD No. 111 or the City. “Price Point Study” means a price point study or a letter updating a previous price point study prepared by the Price Point Consultant pursuant to Section C herein.
“Property Owner Association Property” means, for each Fiscal Year, (i) any property within the boundaries of CFD No. 111 for which the owner of record, as determined from the County’s assessment roll for the Fiscal Year in which the Special Tax is being levied, is a property owner’s association, including any master or sub - association, or (ii) any property located in a Final Subdivision that was recorded as of the Janua ry 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 pre viously classified as Developed Property and subsequently owned in fee or by easement, or dedicated to, a property owner association, including any master or sub -association, shall remain classified as Developed Property.
“Proportionately” means that the ratio of the actual Facilities Special Tax levy to the Assigned Facilities Special Tax is equal for all Assessor’s Parcels of Developed Property, and that the ratio of the actual Services Special Tax levy to the Assigned Services Special Tax is equal for al l Assessor’s Parcels of Developed Property. For Undeveloped Property, “Proportionately” means that the ratio of the actual Facilities Special Tax levy per Acre to the Maximum Facilities Special Tax per Acre is equal for all Assessor’s Parcels of Undevelop ed Property.

The term “Proportionately” shall similarly be applied to other categories of Taxable Property as listed in Section D herein.
“Public Property” means, for each Fiscal Year, any property within the boundaries of CFD No. 111 that is (i) owned by, irrevocably offered or dedicated to the federal government, the State, the County, the City, or any local government or other public agency, provided, however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use; or (ii) encumbered by a public utility easement making impractical its use for any purpose other than that set forth in the easement.
“Rate and Method of Apportionment” means this Rate and Method of Apportionment for CFD No. 111. “Residential Floor Area” means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Residential Floor Area for an Assessor’s Parcel shall be as set forth in the building permit(s) issued for such Assessor’s Parcel and/or as set forth in the appropriate records kept by the Building and Safety Department of the City, or other applicable City department, as determined by the CFD Administrator. “Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit(s) has been issued by the City permitting the construction thereon of one or more residential dwelling units. “Services Special Tax” means the special tax authorized to be levied in each Fiscal Year on each Assessor’s Parcel of Developed Property within CFD No. 111 to fund the Special Tax Requirement for Services, as set forth in Section C.2 herein.
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“Special Tax” means the Facilities Special Tax and/or Services Special Tax, as applicable. “Special Tax Requirement for Facilities” means, for any Fiscal Year, that amount required, after taking into account available amounts held in the funds and accounts under the Indenture, for the following items: (i) debt service on all Outstanding Bonds due in the calendar year commencing in such Fiscal Year; (ii) periodic costs with respect to the CFD No. 111 Bonds, including but not limited to, costs of credit enhancement and federal rebate payments due in the calendar year commencing in such Fiscal Year; (iii) pay all or a portion of Administrative Expenses; (iv) any amounts required to establish or replenish any reserve fu nds for all Outstanding Bonds; (v) without duplicating any amounts described in clause (iv), above, reasonably anticipated Facilities Special Tax delinquencies based on the delinquency rate for the Facilities Special Tax in the previous Fiscal Year, as said levy for delinquencies shall be limited by the Act; and (vi) pay directly for the acquisition or construction of Authorized Facilities, provided that the inclusion of such amount does not increase the Facilities Special Tax levy beyond the first step in Section D.1 herein. “Special Tax Requirement for Services” means that amount required in any Fiscal Year for CFD No. 111 to (i) pay directly for the Authorized Services; (ii) pay Administrative Expenses not funded through the Special Tax Requirement for Fa cilities as determined by the CFD Administrator; (iii) pay for reasonably anticipated Services Special Tax delinquencies based on the delinquency rate for the Services Special Tax levy in the previous Fiscal Year; less (iv) a credit for funds available to reduce the annual Services Special Tax levy, as determined by the CFD Administrator, so long as the amount required is not less than zero. “State” means the State of California.
“Taxable Property” means all of the Assessor’s Parcels within the boundaries of CFD No. 111 which are not exempt from the Special Tax pursuant to applicable law or Section E herein. “Taxable Property Owner Association Property” means all Assessor’s Parcels of Property Owner Association Property that are not exempt pursuant to Section E herein. “Taxable Public Property” means all Assessor’s Parcels of Public Property that are not exempt pursuant to Section E herein.
“Total Tax Burden” means, for a parcel of residential property within a Land Use Class, for the Fiscal Year in which the Total Tax Burden is being calculated, the sum of (a) the Assigned Facilities Special Tax for such Fiscal Year, plus (b) the Assigned Services Special Tax for such Fiscal Year, plus (c) the ad valorem property taxes, special assessments, special taxes for any overlapping community facilities districts, and any other governmental fees, charges (other than fees or charges for services such as sewer and trash), taxes and assessments (which, for purposes of clarity, do not include Contractual Impositions) collected by the County on ad valorem tax bills and that the CFD Administrator estimates would be levied or imposed on such residential property in such Fiscal Year if the residential dwelling unit thereon or therein had been completed and sold, and was subject to such fees, charges, taxes and assessments in such Fiscal Year. “Trustee” means the trustee or fiscal agent under the Indenture. “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Taxable Public Property or Taxable Property Owner Association Property.

Please refer to additional definitions in Section H herein relating to the Prepayment of Facilities Special Tax.

B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, commencing with Fiscal Year 2022-2023, all Taxable Property within CFD No. 111 shall be classified as Developed Property, Undeveloped Property, Taxable Public Property or Taxable Property Owner 391

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Association Property, and shall be subject to Special Taxes in accordance with this Rate an d Method of Apportionment determined pursuant to Sections C and D herein.

C. MAXIMUM SPECIAL TAX RATE

1. Facilities Special Tax
At least 30 days prior to the issuance of the first series of CFD No. 111 Bonds, the Assigned Facilities Special Tax on Developed Property (set forth in Table 1) shall be analyzed in accordance with and subject to the conditions set forth in this Section C. At such time, the CFD Administrator shall reques t the Price Point Consultant to prepare a Price Point Study setting forth the Minimum Sale Price of residential property within each Land Use Class. If based upon such Price Point Study the CFD Administrator calculates that the Total Tax Burden applicable to one or more Land Use Classes of residential property constructed or to be constructed within CFD No. 111 shall exceed 1.95% of the Minimum Sale Price of such residential property constructed or to be constructed within CFD No. 111, the CFD Administrator shall reduce the Assigned Facilities Special Tax to the extent necessary to cause the Total Tax Burden that shall apply to residential property within such Land Use Class(es) to not exceed 1.95% of the Minimum Sale Price of such residential property. Ea ch Assigned Facilities Special Tax reduction for a Land Use Class shall be calculated separately, and it shall not be required that such reduction be proportionate among Land Use Classes. In connection with any reduction in the Assigned Facilities Special Tax, the CFD Administrator shall also reduce the Backup Facilities Special Tax in accordance with Section C.1.a.(3) herein. Upon determining the reductions, if any, in the Assigned Facilities Special Tax and Backup Facilities Special Tax required pursuan t to this Section C, the CFD Administrator shall complete the Certificate to Amend Facilities Special Tax substantially in the form attached hereto as Exhibit A (the “Certificate to Amend”) and shall execute such completed Certificate to Amend and shall deliver such Certificate to Amend to CFD No. 111. Upon receipt thereof, if in satisfactory form, CFD No. 111 shall execute such Certificate to Amend. The reduced Assigned Facilities Special Tax and Backup Facilities Special Tax specified in such Certificate to Amend shall become effective upon the execution of such Certificate to Amend by CFD No. 111. The Assigned Facilities Special Tax and Backup Facilities Special Tax reductions permitted pursuant to this Section C shall be reflected in an amended notice of Special Tax lien which CFD No. 111 shall cause to be recorded with the San Bernardino County Recorder as soon as practicable after execution of the Certificate to Amend by CFD No. 111. If based upon such Price Point Study the CFD Administrator calcula tes that the Total Tax Burden applicable to each Land Use Class of residential property constructed or to be constructed within CFD No. 111 does not exceed 1.95% of the Minimum Sale Price of each such Land Use Class of residential property constructed or to be constructed within CFD No. 111, then there shall be no reduction in the Assigned Facilities Special Tax, nor shall there be a reduction in the Backup Facilities Special Tax. a. Developed Property
(1). Maximum Facilities Special Tax
The Maximum Facilities Special Tax for each Assessor’s Parcel classified as Developed Property shall be the greater of (i) the amount derived by application of the Assigned Facilities Special Tax or (ii) the amount derived by application of the Backup Facilities Special Tax. (2). Assigned Facilities Special Tax
Residential Property shall be assigned to Land Use Classes 1 through 5 as listed in Table 1 below based on the Residential Floor Area for each residential dwelling unit. Non-Residential Property shall be assigned to Land Use Class 6. The Assigned Facilities Special Tax that shall be levied in any Fiscal Year for each Land Use Class is shown below in Table 1. 392

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Table 1
Assigned Facilities Special Tax for Developed Property
City of Fontana CFD No. 111 (Monterado)
Land
Use
Class Description
Residential Floor Area
(square feet)
Assigned
Facilities
Special Tax
1 Residential Property 2,250 or Greater $3,258 per unit 2 Residential Property 2,050 to less than 2,250 $3,218 per unit 3 Residential Property 1,850 to less than 2,050 $3,031 per unit 4 Residential Property 1,650 to less than 1,850 $2,940 per unit 5 Residential Property Less than 1,650 $2,907 per unit
6 Non-Residential Property NA $51,640 per Acre

(3). Backup Facilities Special Tax
The Backup Facilities Special Tax for an Assessor’s Parcel of Developed Property shall equal the lesser of (a) $60,750 per Acre, or (b) in connection with any reduction in the Assigned Facilities Special Tax as set forth in Section C.1 herein, the amount p er Acre calculated pursuant to the formula below:

BFST = AFST ÷ ATP
These terms have the following meaning:

BFST = the reduced Backup Facilities Special Tax
AFST = The total estimated Assigned Facilities Special Tax levy for CFD No. 111 based on the reduce d Assigned Facilities Special Taxes for Developed Property permitted pursuant to Section C.1 herein which could be levied on all expected development assuming Buildout of CFD No. 111.

ATP = The sum of the Acreage of all Taxable Property within a Final Subd ivision (assuming Buildout) within CFD No. 111 (after excluding Public Property and Property Owner Association Property as set forth in Section E.1 herein) multiplied by 85%.

Furthermore, all Assessors’ Parcels within CFD No. 111 shall be relieved simultaneously and permanently from the obligation to pay and disclose the Backup Facilities Special Tax if the CFD Administrator calculates that (i) the annual debt service required for the Outstanding Bonds, when compared to the Assigned Facilities Special Tax t hat shall be levied against all Assessors’ Parcels of Developed Property in CFD No. 111 results in 110% debt service coverage (i.e., the Assigned Facilities Special Tax that shall be levied against all Developed Property in CFD No. 111 in each remaining Fiscal Year based on the then existing development is at least equal to the sum of (a) 1.10 times the debt service necessary to support the remaining Outstanding Bonds in each corresponding Fiscal Year, and (b) Administrative Expenses), and (ii) all authorized CFD No. 111 Bonds have already been issued or the Council has covenanted that it shall not issue any additional CFD No. 111 Bonds (except refunding bonds) to be supported by the Facilities Special Tax in CFD No. 111. 393

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(4). Multiple Land Uses
In some inst ances, 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 Pa rcel of Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property shall be $60,750 per Acre and shall not be subject to escalation and shall therefore remain the same in every Fiscal Year.

2. Services Special Tax
For purposes of the Services Special Tax, an Assessor’s Parcel(s) of Developed Property within a Final Residential Subdivision shall be assigned to Land Use Class 1 as identified in Table 2 and Table 3 below. Non- Residential Property shall be assigned to Land Use Class 2. Furthermore, the Services Special Tax levied against each Assessor’s Parcel within a Final Residential Subdivision shall be based on the number of residential dwelling units for which building permits have been issued or are expected to be i ssued for such Assessor’s Parcel, as determined by the CFD Administrator based on such Final Residential Subdivision of other available documents.
a. Maximum Services Special Tax
The Fiscal Year 2022 -2023 Maximum Services Special Tax for each Land Use Clas s of Developed Property is shown below in Table 2.
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Table 2
Maximum Services Special Tax for Developed Property
City of Fontana CFD No. 111 (Monterado)
Fiscal Year 2022-2023
Land
Use
Class Description
Maximum
Services
Special Tax
1 Final Residential Subdivision $510 per unit
2 Non-Residential Property $8,780 per Acre

b. Assigned Services Special Tax
The Fiscal Year 2022 -2023 Assigned Services Special Tax for each Land Use Class of Developed Property is shown below in Table 3.

Table 3
Assigned Services Special Tax for Developed Property
City of Fontana CFD No. 111 (Monterado)
Fiscal Year 2022-2023
Land
Use
Class Description
Assigned
Services
Special Tax
1 Final Residential Subdivision $366 per unit
2 Non-Residential Property $6,270 per Acre

c. Increase in the Maximum Services Special Tax
On each July 1, commencing on July 1, 2023, the Maximum Services Special Tax shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.
d. Increase in the Assigned Services Special Tax
The Assigned Services Special Tax above shall be applicable for Fiscal Year 2022 -2023, and shall increase thereafter, commencing on July 1, 2023, and on each July 1 thereafter in an amount estimated to fund the Special Tax Requirement for Services for the Fiscal Year commencing on such July 1. However, in no case shall the Assigned Services Special Tax for an Assessor’s Parcel of Developed Property exceed the applicable Maximum Services Special Tax for such Assessor’s Parcel of Developed Property in any Fiscal Year. e. Multiple Land Uses
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land Use Class. In such cases, the Acreage of Developed Property shall be allocated between Residential Property and Non-Residential Property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor’s Parcel. The Maximum Services Special Tax that can be levied on such Assessor’s Parcel shall 395

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be the sum of the Maximum Services Special Tax that can be levied on each type of property located on that Assessor’s Parcel. The CFD Administrator’s allocation to each type of property shall be final.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX

1. Facilities Special Tax
Commencing with Fiscal Year 2022 -2023, and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement for Facilities and shall provide for the levy of the Facilities Special Tax each Fiscal Year as follows:

First: The Facilities Special Tax shall be levied on each Assessor’s Parcel of Developed Property in an amount equal to 100% of the applicable Assigned Facilities Special Tax; Second: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first step has been completed, the Facilities Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property at up to 100% of the Maximum Facilities Special Tax for Undeveloped Property; Third: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first two steps have been completed, then the levy of the Facilities Special Tax on each Assessor’s Parcel of Developed Property for which the Maximum Facilities Special Tax is determined through the application of the Backup Facilities Special Tax shall be increased in equal 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 Propo rtionately on each Assessor’s Parcel of Taxable Public Property and Taxable Property Owner Association Property at up to 100% of the Maximum Facilities Special Tax for Taxable Public Property and Taxable Property Owner Association Property, as needed to satisfy the Special Tax Requirement for Facilities.

Notwithstanding the above, the CFD Administrator shall, in any Fiscal Year, calculate a levy Proportionately less than 100% of the Assigned Facilities Special Tax in step one (above), when (i) the CFD Administrator is no longer required to provide for the levy of the Facilities Special Tax pursuant to steps two through four above in order to meet the Special Tax Requirement for Facilities; and (ii) all authorized CFD No. 111 Bonds have already been issued or the Council has covenanted that it shall not issue any additional CFD No. 111 Bonds (except refunding bonds) to be supported by the Facilities Special Tax.

Further notwithstanding the above, under no circumstances shall the Facilities Special Tax levied in any Fiscal Year against any Assessor’s Parcel of Residential Property for which an occupancy permit for private residential use has been issued (in accordance with Section 53321(d)(3) of the California Government Code), be increased as a consequence of delinquency or default by the owner of any other Assessor’s Parcel within CFD No. 111 by more than ten percent above the amount that would have been levied in that Fiscal Year had there never been any such delinquencies or defaults. To the extent that the levy of the Facilities Special Tax on Residential Property is limited by the provision in the previous sentence, the levy of the Facilities Special Tax on each Assessor’s Parcel of Non-Residential Property shall continue in equal percentages up to 100% of the applicable Maximum Facilities Special Tax.

2. Services Special Tax
Commencing with Fiscal Year 2022 -2023 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement for Services and shall provide for the levy o f the Services Special Tax 396

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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 ea ch 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 Ser vices Special Tax for each such Assessor’s Parcel.

E. EXEMPTIONS

1. Facilities Special Tax
No Facilities Special Tax shall be levied on up to 9.0 Acres of Public Property and/or Property Owner Association Property in CFD No. 111. Tax-exempt status shall b e assigned by the CFD Administrator in the chronological order in which property in CFD No. 111 becomes Public Property or Property Owner Association Property. However, should an Assessor’s Parcel no longer be classified as Public Property or Property Own er Association Property, it shall, from that point forward, be subject to the Facilities Special Tax.

Notwithstanding the above, an Assessor’s Parcel in CFD No. 111 that is transferred to a public agency or property owner’s association prior to the issuanc e of the first series of CFD No. 111 Bonds that causes the Acreage of Public Property and Property Owner Association Property to exceed the 9.0 Acreage limit that can be designated by the CFD Administrator under this Section E.1 shall also be exempted from paying the Special Tax.

Public Property or Property Owner Association Property that is not exempt from the Facilities Special Tax under this Section E.1 shall be subject to the levy of the Facilities Special Tax and shall be taxed Proportionately as part of the fourth step in Section D.1 herein, at up to 100% of the applicable Maximum Facilities Special Tax for Taxable Public Property and Property Owner Association Property.

In addition, no Facilities Special Tax shall be levied on Lower Income Households Welfare Exemption Property, provided that if, in any Fiscal Year, applicable law does not require that an Assessor’s Parcel that is Lower Income Households Welfare Exemption Property be exempt from the Facilities Special Tax, then the Facilities Special Tax shall be levied on such Assessor’s Parcel in accordance with this Rate and Method of Apportionment as if such Assessor’s Parcel were not classified as Lower Income Households Welfare Exemption Property.

2. Services Special Tax
No Services Special Tax shall be levied on Undeveloped Property, Taxable Public Property, Taxable Property Owner Association Property, Public Property, or Property Owner Association Property.

In addition, no Services Special Tax shall be levied on Lower Income Households Welfare Exemption Property, provided that if, in any Fiscal Year, applicable law does not require that an Assessor’s Parcel that is Lower Income Households Welfare Exemption Property be exempt from the Services Special Tax, then the Services Special Tax shall be levied on such Assessor’s Parcel in accordance with this Rate and Method of Apportionment as if such Assessor’s Parcel were not classified as Lower Income Households Welfare Exemption Property. 397

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F. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 111 may directly bill the Special Tax, and/or may collect Special Taxes at a different time or in a different manner if necessary to me et financial obligations, and, to the extent of the Facilities Special Tax, may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels.

G. APPEALS AND INTERPRETATIONS
Any landowner or resident who feels that the amount of the Spe cial 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 ap pellant 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 o f clarifying any ambiguity and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals. Any decision of the CFD Administrator shall be subject to appeal to the Council whose decision shall be final and binding as to all persons.

H. PREPAYMENT OF FACILITIES SPECIAL TAX
Under this Rate and Method of Apportionment, an Assessor’s Parcel within CFD No. 111 is permitted to prepay the Facilities Special Tax. The obligation of the Assessor’s Parcel to pay the Facilities Special Tax may be fully or partially prepaid and permanently satisfied as described herein, provided that a prepayment may be made only for Assessor’s Parcels of Developed Property, or for an Assessor’s Parcel of Undeveloped Property for which a building permit has been issued after January 1, 2022, and only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Facilities Special Tax obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount for such Assessor’s Parcel. The CFD Admini strator may charge such owner a reasonable fee for providing this service. If there are Outstanding Bonds, prepayment must be made not less than 30 days prior to a date that notice of redemption of CFD No. 111 Bonds from the proceeds of such prepayment may be given by the Trustee pursuant to the Indenture that is specified in the report of the Facilities Special Tax Prepayment Amount (defined below).

The following additional definitions apply to this Section H:
“CFD Public Facilities Costs” means either $5 ,977,600 in 2022 dollars, which shall increase by the Construction Inflation Index on July 1, 2023, and on each July 1 thereafter, or such lower number as (i) shall be determined by the CFD Administrator as sufficient to provide funding for the Authorized Facilities under the authorized bonding program for CFD No. 111, or (ii) shall be determined by the Council concurrently with a covenant that it shall not issue any more CFD No. 111 Bonds (except refunding bonds) to be supported by the Facilities Special Tax levy under this Rate and Method of Apportionment. 398

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“Construction Inflation Index” means the annual percentage change in the Engineering News Record Building Cost Index for the City of Los Angeles, measured as of the month of December in the calendar year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the CFD Administrator that is reasonably comparable to the Engineering News Record Building Cost Index for the City of Los Angeles. “Future Facilities Costs” means the CFD Public Facilities Costs minus (i) costs of Authorized Facilities previously paid from the Improvement Fund, (ii) moneys currently on deposit in the Improvement Fund available to pay costs of Authorized Facilities, and (iii) the amount the CFD Administrator reasonably expects to derive from the reinvestment of these funds.
“Improvement Fund” means a fund or account specifically identified in the Indenture (or prior to the issuance of the first series of CFD No. 111 Bonds a fund or account held by the City) to hold funds which are currently available for expenditure to acquire or construct Authorized Facilities. “Previously Issued Bonds” means, for any Fiscal Year, all O utstanding 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 su mmarized below (capitalized terms as defined below):

Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
Equals Facilities Special Tax Prepayment Amount
As of the proposed date of prepayment, the Facilities Special Tax Prepayment Amount shall be calculated according to the following paragraphs:

1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.

2. For Assessor’s Parcels of Developed Property, compute the Assigned Facilities Special Tax and Backup Facilities Special Tax for the Assessor’s Parcel to be prepaid. For Assessor’s Parcels of Undeveloped Property for which a building permit has been issued after January 1, 2022, compute the Assigned Facilities Special Tax and Backup Facilities Special Tax for that Assessor’s Parcel as though it was already designated as Developed Property, based upon the building permit which has already been issued for such Assessor’s Parcel.

3. (a) Divide the Assigned Facilities Special Tax computed pursuant to paragraph 2 by the total estimated Assigned Facilities Special Tax levy for CFD No. 111 based on the Assigned Facilities Special Taxes for Developed Proper ty which could be levied on all expected development assuming Buildout of CFD No. 111, excluding any Assessor’s Parcels for which the Facilities Special Tax has been prepaid, and
(b) Divide the Backup Facilities Special Tax computed pursuant to paragraph 2 by the total estimated Backup Facilities Special Taxes at Buildout for the entire CFD No. 111, excluding any Assessor’s Parcels for which the Facilities Special Tax has been prepaid. 399

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4. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the Previously Issued Bonds to compute the amount of Previously Issued Bonds to be redeemed (the “Bond Redemption Amount”).

5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium (e.g., the redemption price minus 100%), if any, on the Previously Issued Bonds to be redeemed (the “Redemption Premium”).

6. Compute the current Future Facilities Costs.

7. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the amount determined pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be prepaid (the “Future Facilities Amount”).

8. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the redemption date for the Previously Issued Bonds specified in the report of the Facilities Special Tax Prepayment Amount.

9. Determine the Facilities Special Tax levied on the Assessor’s Parcel in the current Fiscal Year which has not yet been paid.

10. Compute the minimum amount the CFD Administrator reasonably expects to derive from the reinvestment of the Facilities Special Tax Prepayment Amount, less any interest earnings attributed to the Future Facilities Amo unt, 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. 111 are as calculated by the CFD Administrator and include the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming CFD No. 111 Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the “Administrative Fees and Expenses”).

13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Previously Issued Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Previously Issued Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero. No Reserve Fund Credit shall be granted if the amount then on deposit in the reserve fund for the Previously Issued Bonds is below 100% of the reserve requirement (as defined in the Indenture).

14. If any capitalized interest for the Previously Issued Bonds will not have been expended as of the date immediately following the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the larger quotien t 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”).
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15. The Facilities Special Tax prepayment is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 7, 11 and 12, less the amounts computed pursuant to paragraphs 13 and 14 (the “Facilities Special Tax Prepayment Amount”).

2. Prepayment in Part
The owner of any Assessor’s Parcel who desires a partial prepayment of the Facilities Special Tax shall notify the CFD Administrator of such owner’s intent to partially prepay the Facilities Special Tax and the percentage by which the Facilities Special Tax shall be prepaid. The amount of the prepayment shall be calculated as in Section H.1; except that a partial prepayment shall be calculated according to the following formula:

PP = [(PE – A) x F] + A
These terms have the following meaning:

PP = the partial prepayment.

PE = the Facilities Special Tax Prepayment Amount calculated according to Section H.1.

F = the percentage, expressed as a decimal, by which the owner of the Assessor’s Parcel is partially prepaying the Facilities Special Tax.

A = the Administrative Fees and Expenses calculated according to Section H.1.

3. General Provisions Applicable to the Prepayment of Facilities Special Tax (a). Use of the Facilities Special Tax Prepayment Amount The Facilities Special Tax Prepayment Amount, less the Administrative Fees and Expenses calculated according to Section H.1 which shall be retained by CFD No. 111, and less the Future Facilities Amount calculated according to Section H.1 which shall be deposited into the Improvement Fund, shall be deposited into specific funds establ ished under the Indenture, to fully or partially redeem as many Outstanding Bonds as possible, and, if amounts are less than $5,000, to make debt service payments on the Outstanding Bonds.
(b). Full Prepayment of Facilities Special Tax
Upon confirmation of the payment of the current Fiscal Year’s entire Facilities Special Tax obligation, the CFD Administrator shall remove the current Fiscal Year’s Facilities Special Tax levy for such Assessor’s Parcel from the County tax rolls. With respect to any Assessor ’s Parcel that is prepaid in accordance with Section H.1, the CFD Administrator shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of the Facilities Special Tax and the release of the Facilities Special Tax lien on such Assessor’s Parcel, and the obligation of such Assessor’s Parcel to pay the Facilities Special Tax shall cease.
(c). Partial Prepayment of Facilities Special Tax
With respect to any Assessor’s Parcel that is partially prepaid, the CFD Administrator shall (i) distribute or cause to be distributed the funds remitted to it according to Section H.3.(a) and (ii) indicate in the records of CFD No. 111 that there has been a partial prepayment of the Facilities Special Tax and that a portion of the Facilities Special Tax with respect to such Assessor’s parcel, equal to the outstanding percentage (1.00 – F) of the remaining Maximum Facilities Special Tax, shall continue to be levied on such Assessor’s Parcel pursuant to Section D herein.
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(d). Debt Service Coverage
Notwithstanding the foregoing, no prepayment of the Facilities Special Tax shall be allowed unless the amount of Facilities Special Tax that may be levied on Taxable Property (assuming Buildout) within CFD No. 111 in each future Fiscal Year (afte r excluding Public Property and Property Owner Association Property as set forth in Section E.1 herein), after the proposed prepayment, is at least equal to the sum of (i) 1.10 times the debt service necessary to support the remaining Outstanding Bonds in each corresponding Fiscal Year, and (ii) Administrative Expenses.

I. TERM OF SPECIAL TAX
The Facilities Special Tax shall be levied for a period not to exceed fifty years commencing with Fiscal Year 2022-2023. The Services Special Tax shall be levied in p erpetuity to fund the Special Tax Requirement for Services.

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EXHIBIT A

CERTIFICATE TO AMEND FACILITIES SPECIAL TAX
CFD No. 111 CERTIFICATE

1. Pursuant to Section C.1 of the Rate and Method of Apportionment (the “Rate and Method”) for City of Fontana Community Facilities District No. 111 (Monterado) (“CFD No. 111”), the Assigned Facilities Special Tax and the Backup Facilities Special Tax for Developed Property within CFD No. 111 has been reduced as described herein.
(a) The information in Table 1 of the Rate and Method relating to the Assigned Facilities Special Tax for Developed Property within CFD No. 111 shall be modified as follows:

Land
Use
Class Description
Residential Floor
Area (square feet)
Original
Assigned
Facilities
Special Tax
Reduced
Assigned
Facilities
Special Tax
1 Residential Property 2,250 or Greater $3,258 per unit $[_____] per unit 2 Residential Property 2,050 to less than 2,250 $3,218 per unit $[_____] per unit 3 Residential Property 1,850 to less than 2,050 $3,031 per unit $[_____] per unit 4 Residential Property 1,650 to less than 1,850 $2,940 per unit $[_____] per unit 5 Residential Property Less than 1,650 $2,907 per unit $[_____] per unit 6 Non-Residential Property NA $51,640 per Acre $[_____] per Acre

(b) The Backup Facilities Special Tax for Developed Property, as stated in Section C.1.a.(3) of the Rate and Method, shall be reduced from $60,750 per Acre to $[_____] per Acre.

2. The Assigned Facilities Special Tax and the Backup Facilities Special Tax for Developed Property may only be reduced prior to the first issuance of CFD No. 111 Bonds.

3. Upon execution of the certificate by CFD No. 111, CFD No . 111 shall cause an amended notice of Special Tax lien for CFD No. 111 to be recorded reflecting the reductions set forth herein.

All capitalized terms used herein shall have the meanings set forth in the Rate and Method.

By: Date:

CFD Administrator
By execution hereof, the undersigned acknowledge, on behalf of CFD No. 111, receipt of this certificate and modification of the Rate and Method as set forth in this certificate.

CITY OF FONTANA COMMUNITY FACILITIES DISTRICT No. 111 (MONTERADO) By: Date:

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APPENDIX B

APPRAISAL REPORT

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APPENDIX C

UPDATED PRICE POINT STUDY

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APPENDIX D

FORM OF OPINION OF BOND COUNSEL

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APPENDIX E

GENERAL INFORMATION CONCERNING

THE CITY OF FONTANA
This appendix sets forth general information about the City of Fontana (“Fontana”) including information with respect to its finances. The following information concerning Fontana, the County of San Bernardino (the “County”) and the State of California (the “State”) are included only for general background purposes. The Bonds are not o bligations of the City, County or State or any political subdivision thereof and neither the faith and credit nor the taxing power of the City, County or the State, or any political subdivision thereof, is pledged to the payment of the Bonds or any Additional Bonds.

General
The City of Fontana encompasses approximately 42.4 square miles of land and has an estimated population in 2023 of approximately 213,851. The City is located 50 miles east of Los Angeles, and approximately 10 miles west of the cities of Riverside and San Bernardino. Founded in 1913, Fontana is the second largest city in San Bernardino County, and the 20th largest in the State. The Riverside-San Bernardino area is often referred to as Southern California’s “Inland Empire.” As one of th e cities in the Inland Empire, Fontana is part of a region whose population base exceeds 4.4 million people.

The earliest recorded landowner in the Fontana area was Don Antonio Maria Lugo, who received a land grant in 1813. A second grant, in 1842, secured the land known as Rancho de San Bernardino for his sons. The Lugo sons sold a portion of their land, which included part of what is now Fontana, to a group of Mormon settlers in 1851. The Mormon settlers eventually returned to Salt Lake City, and the S emi-Tropical Land & Water Company gained control of the Rancho. Active development of the area, however, did not begin until the early 1900’s when the Fontana Development Company acquired the acreage and began a community called Rosena - a name that was changed to Fontana in 1913.

Fontana quickly became a diversified agricultural area, with citrus, grain, grapes, poultry, and swine being the leading agricultural commodities. The community faced a transition beginning in 1942 when the Fontana area was selected as the site for a steel mill. Fontana incorporated in 1952 and the area became Southern California’s leading producer of steel and steel related products.

The steel industry dominated the City’s economy from the time the mill was built until the mid-1980’s.

In the late 1970’s, however, Kaiser Steel began to cut down on production and manpower, and the steel mill closed in 1984. The mill site, located outside of City limits, is in the process of being developed into an integrated community of transportation-related industrial, commercial and business park uses to take advantage of the site’s excellent highway and rail access. The plate steel and rolling mill plant was acquired by California Steel Industries, which continues to produce steel products. In addition, railroad and trucking operations and a number of industrial facilities and warehousing/distribution centers are located in Fontana because of its convenient geographical location and excellent transportation network.

City Government
The City was incorporated as a general law city in 1952 and is governed by a Mayor and four council members elected by geographical district to serve four -year terms. The City operates under the Council - Manager form of government. Effective July 1, 2008, the F ontana City Council established the Fontana Fire Protection District, which is governed by the same members who comprise the City Council, and which provides fire and related services to the City and certain adjacent unincorporated areas by means of contract with the San Bernardino County Fire Department. The City Council appoints the City Manager who is responsible for the day-to-day administration of City business and the coordination of all departments of the City. 407

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The City of Fontana provides police protection, street sweeping, park maintenance, building inspection, library, sewer, storm drain and sanitation services. Numerous hospitals and health care facilities are located near Fontana.

Population
Fontana has been one of the most rapidly growing cities in Southern California. The adopted 1990 General Plan calls for a careful balance of residential, commercial and industrial development to ensure a quality urban environment with a broad range of employment and housing opportunities.

The population in Fontana increased approximately 5.98% from 2014 to 2023. The population growth in the City, County and State is shown on the following chart.

POPULATION ESTIMATES
City of Fontana, County of San Bernardino and State of California 2014-2023
Year(1) City of Fontana
County of San
Bernardino State of California
2014 201,790 2,094,951 38,556,731
2015 203,790 2,112,187 38,865,532
2016 205,180 2,122,579 39,103,587
2017 208,003 2,139,520 39,352,398
2018 209,113 2,150,017 39,519,535
2019 211,123 2,165,876 39,605,361
2020 211,519 2,175,424 39,648,938
2021 210,167 2,179,007 39,286,510
2022 212,616 2,180,777 39,078,674
2023 213,851 2,182,056 38,940,231

(1) January 1 estimate.

Source: State of California, Department of Finance. E-4 Population Estimates for Cities, Counties, and the State, 2011-2020 with 2010 Census Benchmark and 2021-2023, with 2020 Benchmark.

Transportation
The City of Fontana is strategically located in the hub of surface, rail and air transportation facilities.

Union Pacific and Burlington Northern/Santa Fe rail lines provide rail service to Fontana. Switch yards and multi-modal terminals are located nearby.

Major interstate freeways and state highways provide direct access to the City, making shipp ing and transportation to and from seaports, North American Free Trade Agreement ports of entry, and the rest of the nation highly dependable. Interstate 10 traverses the southern section of the City, Interstate 15 borders the western portion of the City, and Interstate 210, which is the extension of Route 30, opened in November 2002, links the San Bernardino Valley with the San Fernando Valley and traverses the northern portion of the City.

State freeways 57, 60 and 91 are minutes from Fontana.

The LA/Ontario International Airport is a medium -hub, full-service airport, which offers more than 70 daily flights to cities in the U.S., Mexico and Taiwan and is served by nine commercial carriers. The airport is owned and operated by Ontario International Airpo rt Authority, a joint powers agency, and is served by AeroMexico, Alaska Airlines, American Airlines, Delta Air Lines, Southwest Airlines, United Airlines/United Express, US Airways and Volaris. Various airlines provide freight services at Ontario International Airport. 408

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With approximately 570,000 square feet and 26 passenger gates within two terminals, Ontario International Airport is the Western States Regional Terminal for United Parcel Service. In 2022 approximately

5.7 million passengers used the airport and cargo shipments increased 9% from the pre -pandemic 2019. Over the first six months of 2022, total passenger volume was nearly 3 million, 12.4% greater than the first half of 2022. The passenger count included 2.8 million domestic travelers and 176 ,000 international passengers, increases of 9.5% and 94.4%, respectively. Ontario also ranks among the fastest recovering airports in the U.S. after the severe disruption in global air travel during the early months of the pandemic Transit services are provided by Metrolink commuter rail service to Los Angeles with connections to the numerous surrounding cities provided by Omnitrans bus service, Dial -a-Ride, Yellow Cab Company and Bell Cab Company.

Education
Five school districts serve students in the City of Fontana. There are thirty public elementary schools, seven middle schools, five high schools, three alternative high schools, seven private elementary/middle schools, one School of Language Development and one adult school. Local colleges and universities include Universal Technical Institute of California Inc., Chaffey College, San Bernardino Valley College, California State University-San Bernardino, Riverside Community College, Westech College and the University of California - Riverside.
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Employment
The following table summarizes the labor force, employment and unemployment figures for the years 2018 through 2022 for the City, the County, the State and the United States.

CIVILIAN LABOR FORCE, EMPLOYMENT AND UNEMPLOYMENT RATE
City of Fontana, San Bernardino County, State of California and United States 2018 through 2022(1)
Year and Area Labor Force Employment(2) Unemployment(3) Unemployment
Rate (%)
2018
City of Fontana 98,400 94,600 3,800 3.9%
San Bernardino County 955,100 915,800 39,200 4.1
State of California 19,289,500 18,469,900 819,600 4.2
United States 162,075,000 155,761,000 6,314,000 3.9

2019
City of Fontana 99,600 96,000 3,600 3.6%
San Bernardino County 967,100 929,800 37,400 3.9
State of California 19,413,200 18,617,900 795,300 4.1
United States 163,539,000 157,538,000 6,001,000 3.7

2020
City of Fontana 100,700 91,300 9,400 9.4%
San Bernardino County 974,700 880,900 93,800 9.6
State of California 18,971,600 17,047,600 1,924,000 10.1 United States 160,742,000 147,795,000 12,947,000 8.1

2021
City of Fontana 102,500 95,200 7,300 7.1%
San Bernardino County 992,200 918,600 73,600 7.4
State of California 18,973,400 17,586,300 1,387,100 7.3 United States 161,204,000 152,581,000 8,623,000 5.3

2022
City of Fontana 104,100 100,200 3,900 3.8
San Bernardino County 1,008,500 967,200 41,300 4.1
State of California 19,252,000 18,440,900 811,100 4.2
United States 164,287,000 158,291,000 5,996,000 3.6

Note: Data is not seasonally adjusted.
(1) Annual averages, unless otherwise specified.
(2) Includes persons involved in labor-management trade disputes. (3) The unemployment rate is computed from unrounded data; therefore, it may differ from rates computed from rounded figures in this table.

Source: U.S. Department of Labor – Bureau of Labor Statistics, California Employment Development Department. March 2022 Benchmark.
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Listed below are the major employers in the City.

CITY OF FONTANA - MAJOR EMPLOYERS – 2023
Employer Number of Employees
Kaiser Permanente 9,677
Fontana Unified School District 5,983
Amazon.com Services LLC 3,145
St Bernardine Medical Center 1,775
Target Stores T 553 1,297
City of Fontana (includes part-time employees) 1,143
Walmart D C #6060 CD Drop Yard 1,004
Walmart #6060 1,004
Saia Motor Freight Line LLC 349
Legendary Staffing, Inc. 325

Source: City of Fontana Fiscal Year Ending June 30, 2023 Annual Comprehensive Financial Report.

Listed below are the major employers in the County.

PRINCIPAL EMPLOYERS
San Bernardino County
Fiscal Year 2021-22
Rank Name of Business
Approximate No. of
San Bernardino
County
Employees(1) Type of Business
1 County of San Bernardino 5,000-9,999 Public Administration 2 Amazon 5,000-9,999 Electronic Commerce
3 Loma Linda University Medical Center 5,000-9,999 Medical Center 4 Stater Brothers 1,000-5,000 Grocery Store
5 Burlington Distribution Corp. 1,000-5,000 Retail
6 Environmental Systems Research 1,000-5,000 Software
7 FedEx Ground 1,000-5,000 Package Delivery
8 Inland Empire Health Plan 1,000-5,000 Insurance
9 San Antonio Community Hospital 1,000-5,000 Medical Center 10 San Manuel Resort & Casino 1,000-5,000 Casino

(1) Due to confidentiality of reporting number of employees, ranges have been provided.

Source: San Bernardino County Annual Comprehensive Financial Report for the year ending June 30, 2022. 411

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Industries
Residents of the City find employment throughout the Riverside-San Bernardino-Ontario Labor Market Area. This labor market area, as defined for reporting purposes by the California Employment Development Department, has boundaries coterminous with those of Riverside and San Bernardino Counties. The following table sets forth certain employment data for the Riverside - San Bernardino-Ontario Metropolitan Statistical Area and the County for the period from 2018 through 2022.

RIVERSIDE-SAN BERNARDINO-ONTARIO METROPOLITAN STATISTICAL AREA

INDUSTRY EMPLOYMENT & LABOR FORCE - BY ANNUAL AVERAGE
2018 2019 2020 2021 2022
Civilian Labor Force 2,045,200 2,075,200 2,095,800 2,125,300 2,160,600 Civilian Employment 1,957,500 1,991,200 1,888,900 1,968,700 2,071,200 Civilian Unemployment 87,700 84,000 206,900 156,600 89,400 Civilian Unemployment Rate 4.3% 4.0% 9.9% 7.4% 4.1%

Total Farm 1,521,100 1,568,100 1,509,900 1,588,800 1,674,200 Total Nonfarm 14,500 15,400 14,100 13,700 13,900
Total Private 1,506,600 1,552,700 1,495,800 1,575,100 1,660,300 Goods Producing 1,249,400 1,291,500 1,247,800 1,333,100 1,410,900 Mining & Logging 206,800 209,700 202,200 207,700 216,400 Construction 1,200 1,200 1,300 1,400 1,600
Manufacturing 105,200 107,200 104,900 110,100 115,200
Service Providing 100,400 101,300 96,000 96,100 99,600
Trade, Transportation & Utilities 1,299,800 1,343,100 1,293,700 1,367,400 1,443,900 Wholesale Trade 379,400 395,100 406,900 443,200 464,500 Retail Trade 66,100 67,700 65,600 67,400 69,700
Transportation, Warehousing & Utilities 181,200 180,700 168,800 177,000 180,600 Information 132,100 146,600 172,500 198,800 214,200
Financial Activities 11,400 11,500 9,600 9,700 10,200
Professional & Business Services 44,600 45,000 44,100 45,200 46,800 Educational & Health Services 151,400 157,900 154,800 169,400 179,100 Leisure & Hospitality 239,500 250,300 248,800 254,300 266,400 Other Services 170,600 175,900 141,300 160,200 179,600
Government 45,800 46,200 40,200 43,600 47,900
Total, All Industries 257,200 261,200 248,000 242,000 249,400

Note: Does not include proprietors, self-employed, unpaid volunteers or family workers, domestic workers in households and persons involved in labor -management trade disputes. Employment reported by place of work. Items may not add to total due to independent rounding. The “Total, All Industries” data is not directly comparable to the employment data found in this Appendix E.

Source: State of California, Employment Development Department, March 2022 Benchmark. 412

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Tax Levy and Tax Collection
Below is a chart which indicates the tax levy and collection records for the City for fiscal years 2013 through 2022.

Fiscal Year
Percent of Levy
Collected to Date
Total Tax Collections
to Tax Levy to Date
2013 98.37% $ 95,130,535
2014 101.55 100,966,890
2015 106.51 115,888,404
2016 101.77 116,422,050
2017 104.24 125,264,871
2018 106.48 135,757,922
2019 107.57 154,079,402
2020 103.19 160,025,650
2021 103.78 172,050,509
2022 106.23 188,891,255

Note: The amounts presented include City property taxes and the Former Redevelopment Agency of the City of Fontana (the “Redevelopment Agency”) tax increment. This schedule also includes amounts collected by the City and Redevelopment Agency that were passed-through to other agencies.

Source: City of Fontana Fiscal Year Ending June 30, 2022 Annual Comprehensive Financial Report.

Largest Taxpayers
The principal property taxpayers in the City for 2023 are as follows:

Taxpayer
2023 Assessed
Valuation
% of Total
Assessed
Valuation
San Gabriel Valley Water Company $355,028,013 1.31%
Duke Realty LP 243,765,176 0.90
GLC Fontana LLC 219,604,656 0.81
LBA RV – Company LLC 174,942,701 0.65
USPP Jurupa LLC 170,313,480 0.63
Idil West Valley Logistics Center LLC 159,120,000 0.59
Rexford Industrial Realty LP 153,756,226 0.57
Vintage Park LLC 138,146,361 0.51
Target Corporation 134,224,954 0.50
Lit Industrial LP 115,123,474 0.43
Intex Properties Inland Empire Corporatoin -- --
TOTAL: $ 1,864,025,041

Source: City of Fontana Fiscal Year Ending June 30, 2023 Annual Comprehensive Financial Report. 413

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Taxable Sales
The table below presents taxable sales for the years 2018 through 2022 for the City.

TAXABLE SALES
City of Fontana
2018 through 2022
(Dollars in Thousands)
Year
Retail and Food
Permits
Retail and Food
Taxable
Transactions Total Permits
Total Outlets
Taxable
Transactions
2018 3,944 $2,650,007 5,597 $3,596,721
2019 4,101 2,688,599 5,870 3,713,487
2020 4,467 2,768,279 6,543 3,637,153
2021 3,997 3,393,088 5,969 4,374,359
2022 4,209 3,538,573 6,197 4,783,415

Source: Taxable Sales in California, California Department of Tax and Fee Administration.

The table below presents taxable sales for the years 2018 through 2022 for the County.

TAXABLE SALES
San Bernardino County
2018 through 2022
(Dollars in Thousands)
Year
Retail and Food
Permits
Retail and Food
Taxable
Transactions Total Permits
Total Outlets
Taxable
Transactions
2018 39,837 26,905,784 61,838 40,554,024
2019 40,964 27,585,905 64,771 41,768,748
2020 44,330 28,745,277 71,145 43,265,512
2021 40,801 38,345,912 66,585 55,378,097
2022 41,690 40,003,128 68,480 59,745,218

Source: Taxable Sales in California, California Department of Tax and Fee Administration.

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Personal Income
The following tables show the personal income and per capita personal income for the City, County, State of California and United States from 2018 through 2022.

PERSONAL INCOME(1)
City of Fontana, County of San Bernardino, State of California, and United States 2018-2022
Year
City of
Fontana
County of
San Bernardino California United States
2018 4,444,518 $ 83,514,331 $2,411,055,100 $17,514,402,000 2019 4,775,796 89,182,422 2,537,950,600 18,343,601,000
2020 5,061,439 100,359,889 2,767,521,400 19,609,985,000 2021 5,432,476 108,700,135 3,013,676,900 21,392,812,000 2022 (n/a) 108,081,645 3,006,647,300 21,820,248,000

Note: Dollars in Thousands.

Source: U.S. Department of Commerce, Bureau of Economic Analysis and City of Fontana Annual Comprehensive Financial Report for the year ending June 30, 2022.

PER CAPITA PERSONAL INCOME(1)(2)
City of Fontana, County of San Bernardino, State of California, and United States 2018-2022
Year
City of
Fontana
County of
San Bernardino California United States
2018 20,965 $38,663 $60,984 $53,309
2019 22,519 41,079 64,174 55,547
2020 23,763 45,698 70,061 59,153
2021 25,392 49,570 76,991 64,430
2022 (n/a) 49,270 77,036 65,470

(1) Per capita personal income is the total personal income divided by the total mid-year population estimates of the U.S. Bureau of the Census. All dollar estimates are in current dollars (not adjusted for inflation).

Source: City of Fontana Comprehensive Annual Financial Report for the year ending June 30, 2022 , Bureau of Economic Analysis for County, State and U.S.

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Construction Trends
Below is a table indicating residential and non-residential building permits valuations for the City.

CITY OF FONTANA

BUILDING PERMIT VALUATION
(in thousands of dollars)
Type 2018 2019 2020 2021 2022
Valuation ($000’s)
Residential: $ 145,610 $ 241,481 $ 311,547 $ 216,978 $ 211,710 Non-Residential: 197,379 290,767 149,761 126,814 363,353 Total Valuation: $ 342,989 $ 532,248 $ 461,308 $ 343,792 $ 575,063

New Housing Units:

Single Family 413 642 848 670 509
Multi Family 85 202 234 382 562
Total Units: 498 844 1,082 1,052 1,071

Note: Totals may not add to sums because of independent rounding.

Source: Construction Industry Research Board.

Recreation
The City of Fontana maintains over 40 parks, tot lots, sports facilities and other facilities in the community. The City of Fontana operates eight centers throughout the community. The Center Stage Theatre was originally built in 1937 a s a single screen movie theatre and was remodeled in 2008 and re -opened as the premiere performing arts venue in the City of Fontana.

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APPENDIX F

SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE

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APPENDIX G

FORM OF DISTRICT CONTINUING DISCLOSURE AGREEMENT

Fontana City CouncilApril 23, 2024

Fontana City Council
April 23, 2024