Agenda packet — Fontana City Council, October 8, 2024 (part 2 of 2)

16498.00150\32127016.1
AMENDMENT NO. 4

TO THE PROFESSIONAL SERVICES AGREEMENT

BETWEEN

THE CITY OF FONTANA

AND

QUALITY MANAGEMENT GROUP, INC
SP-15-HD-22

1. Parties and Date.

This Amendment No. 4 to the Professional Services Agreement is made and entered into as of this 24th day of September 2024, by and between the City of Fontana (“City”) and Quality Management Group, a Corporation with its principal place of business at 3105 East Guasti Rd, Suite 100, Ontario, CA 91761 (Consultant**). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties.”

2. Recitals.

2.1 Consultant. The City and Consultant have entered into an agreement entitled “Professional Services Agreement (Tracking Number SP-15-HD-22)” dated No vember 10, 2021, (“Agreement”) for the purpose of retaining the services of Consultant to provide Property Management Services.

2.2 Amendment Purpose . T he City and Consultant desire to amend the Agreement to increase the compensation due to portfolio expansion.

2.3 Amendment Authority. This Amendment No. 4 is authorized pursuant to Section 3 of the Agreement.

3. Terms.

3.1 Amendment. Section 2 of the Agreement is hereby amended in its entirety to read as follows:

2. Compensation.

a. Subject to parag raph 2(b) below, the City shall pay for such services in accordance with the Schedule of Charges set forth in Exhibit “A.”

b. In no event s hall the total amount paid for services rendered by Consultant under 191

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16498.00150\32127016.1
this Agreement exceed the sum of $ 165,000.00. Thi s amount is t o cover all printing and related costs, and the City will not pay any additional fees for printing expenses. P eriodic payments shall be made within 30 days of receipt of an invoice which includes a detailed description of the work performed. Payments to Consultant for work performed will be made on a monthly billing basis.

3.3 Continuing Effect of Agreement. Except as amended by this Amendment No. 4, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 4. From and after the date of this Amendment No. 4, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 4.

3.4 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 4.

3.5 Severability. If any portion of this Amendment No. 4 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

[Signatures on Next Page]

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16498.00150\32127016.1
SIGNATURE PAGE FOR AMENDMENT NO. 4

TO THE PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE CITY OF FONTANA

AND QUALITY MANAGEMENT GROUP, INC
SP-15-HD-22

CITY OF FONTANA

By:

Matthew C. Ballantyne
City Manager
QUALITY MANAGEMENT GROUP. INC.

By:

Tim Johnson
President
Attest:

By:

Germaine Key
City Clerk

Approved as to form:

Best Best & Krieger LLP
City Attorney

By: _____________________________
Phillip Burum
Deputy City Manager

By: _____________________________
Valerie Gonzales
Housing Development Manager

IN COMPLIANCE WITH PURCHASING AND CONTRACT ADMINISTRATION POLICIES/PROCEDURES

Jessica Brown
Chief Financial Officer

Sid Lambert
Purchasing Manager

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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3325 Agenda Date: 10/8/2024
Agenda #: K. Category: Consent Calendar
FROM:

Police Department
SUBJECT:

Police Department Monthly Information Update
RECOMMENDATION:

Accept the Police Department monthly information update for August 2024.

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

DISCUSSION:

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

FISCAL IMPACT:

There is no fiscal impact.

MOTION:

Approve staff recommendation.

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POLICE DEPARTMENT

MONTHLY REPORT
August 2024
195

NOTEWORTHY EVENTS
• Fontana Police Recruitment Team conducted a recruiting event at T.I.V. HQ Gym in Fontana. • Lieutenant Tusant held an Area Commander Meeting for Area 3 at the Fontana Senior Center.
• COPE held a blood drive at the Fontana Police Department. • Lieutenant Dills held an Area Commander Meeting for Area 4 at Southridge Middle School. • Sergeant Justin Laing graduated from the Sherman Block Supervisory Leadership Institute. • The Fontana Police Narcotic Unit seized over 1000 pounds of methamphetamine and over 50 kilos of cocaine.
• Fontana Police ICAC unit participated in a regional effort to identify and arrest suspects engaged in criminal activities involving minors. Six individuals were arrested.

KA1
196
Slide 2
KA1 Kevin Anderson, 2/9/2021
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198

CITYWIDE
• Priority 1 response time- 4:27 (Emergency calls like subject not breathing, shots fired, and other immediate risk to life/safety)
• Calls for service- 9,978
• Total Traffic Accidents- 224
• Non-Injury- 172, Injury – 52
• Total arrests- 510
• Hispanic- 327, White- 71 , Black- 83, All other races- 29 • Total Group A Offenses- 673
• Crimes Against Persons- 157
• Crimes Against Property- 357
• Crimes Against Society- 159
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CITYWIDE• Crimes Against Person- 157
• Homicide- 0
• Sex Offenses- 13
• Assault- 138
• Kidnapping- 3
• Other- 3
• Crimes Against Property- 364
• Robbery- 8
• Burglary- 29
• Larceny- 168
• Destruction of Property- 35
• Fraud- 26
• Possession of Stolen Property- 40
• Motor Vehicle Theft- 52
• Other Miscellaneous Property Crimes- 6
• Crimes Against Society- 159
• Drug and Paraphernalia Possession- 122
• Possession of Child Pornography- 4
• Possession of Weapons- 32
• Other Miscellaneous Crimes- 1
200

CRIMES BY BEAT
• Police Department Beat system is NOT
geographically the same as City Council
representation Districts
• Beat 1- All area north of 210 Freeway
• Beat 2- All area south of 210 Freeway and
north of Foothill
• Beat 3- All area south of Foothill and north
of 10 Freeway
• Beat 4- All area south of the 10 Freeway
Area 1
Area 2
Area 3
Area 4
201
BEAT 1

AREA COMMANDER IS LIEUTENANT KYLE SLUSSER
EMAIL- [email protected]
DESK- (909) 350-7716
• Total Group A Offenses- 74
• Crimes Against Persons- 17
• Crimes Against Property- 48
• Crimes Against Society- 9
202
BEAT 2

AREA COMMANDER IS LIEUTENANT MATT KRAUT
EMAIL- [email protected]
DESK- (909) 356-7142
• Total Group A Offenses- 156
• Crimes Against Persons- 36
• Crimes Against Property- 92
• Crimes Against Society- 28
203
BEAT 3

AREA COMMANDER IS LIEUTENANT CHRIS TUSANT
EMAIL – [email protected]
DESK – (909) 350-7706
• Total Group A Offenses- 286
• Crimes Against Persons- 80
• Crimes Against Property- 145
• Crimes Against Society- 61
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Beat 4

AREA COMMANDER IS LIEUTENANT TRACY DILLS
EMAIL – [email protected]
DESK – (909) 350-7707
•Total Group A Offenses- 114
•Crimes Against Persons- 21
•Crimes Against Property- 74
•Crimes Against Society- 19
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ADDITIONAL USEFUL INFORMATION
• For more information regarding specific geographical crime data, visit www.crimemapping.com and enter your zip code
• Police Department information line- (909) 350-7740
• Police Department Dispatch non-emergency line- (909) 350-7700 • Anonymous crime reporting (909) 356-TIPS to leave a recorded message
• Report Graffiti on City Property- (909) 350-GONE
• Office of the Chief- (909) 350-7702 or [email protected] 206
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3343 Agenda Date: 10/8/2024
Agenda #: L. Category: Consent Calendar
FROM:

Development Services
SUBJECT:

Consideration of Release Agreement (“ReleaseAgreement”)by and between the City of Fontana and HDO4, LLC to release certain property from the land subject to that certain Disposition Agreement entered into by the City of Fontana and HDO4, LLC approved by the City on July 2, 2020 (“Disposition Agreement”) in furtherance of promoting buildout of the Ventana at Duncan Canyon Specific Plan (“Specific Plan”).

RECOMMENDATION:

1. Adopt Resolution No. 2024-114, Approving an Agreement Releasing Certain Real Property From the Obligations, Conditions, and Restrictions of that Certain Disposition Agreement Approved by the City Council of the City of Fontana on July 2, 2020, by and between the City of Fontana and HDO4, LLC

2. Determination that the City Council’s actions are exempt from the California Environmental Quality Act (“CEQA”).

COUNCIL GOALS:
· To concentrate on job creation.
· To pursue business retention, expansion, and attraction. · To construct high-quality multi-family housing which also serves to address the affordability needs of the community.
· To provide for the development of new infrastructure. · To improve the aesthetics of the community.
· To promote compact and efficient development in new and existing communities.

DISCUSSION:

On July 2, 2020, the City Council of the City of Fontana adopted Resolution No. 2020-78, approving a Disposition Agreement by and between the City of Fontana and HDO4, LLC (“HDO4”)regarding the disposition and development of real property located along Duncan Canyon Road between Citrus Avenue and the I-15 Freeway (the “Property”)more specifically described on Exhibit A-1 of the Disposition Agreement.

The Disposition Agreement includes certain covenants, obligations, restrictions, and servitudes pertaining to the Property, including obligations placed on the developer of the Property and City of Fontana Printed on 10/3/2024Page 1 of 2
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File #: 21-3343 Agenda Date: 10/8/2024
Agenda #: L. Category: Consent Calendar
restrictions on transfer of the Property.

HDO4 is developing a portion of the Property for various residential and commercial uses associated with the Specific Plan. This portion of the Property is described on Exhibit “B”of the proposed Release Agreement as the “SubjectProperty.” The development of the Specific Plan is anticipated to be a significant economic driver in the City in furtherance of the City’s General Plan goals and Council Objectives outlined above.

Market and economic conditions in the City have changed since the parties approved the Disposition Agreement, such that the Disposition Agreement now imposes several barriers on the development of the Subject Property, which, if kept in place, would materially delay the development thereof.

ANALYSIS:

The proposed Release Agreement would release the Subject Property from restrictions in the Disposition Agreement while maintaining certain preserved claims identified in the Release Agreement. The Disposition Agreement would continue to apply in full to all other portions of the Property. Staff believes that the release reflected in the Release Agreement will remove barriers to development of the Subject Property and promote earlier completion of the Specific Plan, resulting in direct economic and other benefits to and within the City.

In the alternative, the City Council could vote not to approve the Release Agreement, which would result in the Subject Property remaining subject to all terms and conditions of the Disposition Agreement.

ENVIRONMENTAL IMPACT:

As more specifically set forth in the Resolution, approval of the Release Agreement does not constitute approval by the City of any development of the Property or of other activity on the Property that would have a direct or reasonably foreseeable indirect environmental impact pursuant to the California Environmental Quality Act (CEQA). (Pub. Res.

Code, § 21065; 14 Cal. Code Regs., §§ 15060(c)(2), 15064(d), & 15378.) Moreover, in accordance with CEQA, the City Council of the City of Fontana certified the Specific Plan Environmental Impact Report (SCH No. 2005111048) on March 27, 2007 (“CertifiedEIR”). The Certified EIR adequately addressed the project impacts associated with the adoption of the Specific Plan. The requirements of the Specific Plan run with the Property regardless of ownership and are not impacted by the Disposition Agreement or the release therefrom.

Accordingly, no further environmental review is required for the Disposition Agreement or the proposed Release Agreement pursuant to CEQA Guidelines Sections 15162 through 15164. (14 Cal. Code Regs., §§ 15162-15164.) FISCAL IMPACT:

Approval of the Release Agreement will have no direct fiscal impact on the City.

MOTION:

Approve the staff recommendation.

1. Resolution No. 2024-114, including Release Agreement

2. 2020 Disposition Agreement
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RESOLUTION NO. 2024-114

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FONTANA, CALIFORNIA,

APPROVING A RELEASE AGREEMENT RELEASING CERTAIN REAL PROPERTY

FROM THE OBLIGATIONS, CONDITIONS, AND RESTRICTIONS OF THAT CERTAIN

DISPOSITION AGREEMENT APPROVED BY THE CITY COUNCIL OF THE CITY OF FONTANA ON JULY 2, 2020 BY AND BETWEEN THE CITY OF FONTANA AND HDO4, LLC

WHEREAS, on July 2, 2020, the City Council of the City of Fontana adopted Resolution No. 2020-78, approving a Disposition Agreement by and between the City of Fontana (“City”) and HDO4, LLC (“HDO4”) (the “Disposition Agreement”) regarding the disposition and development of real property located along Duncan Canyon Road between Citrus Avenue and the I -15 Freeway more specifically described on Exhibit “A” which is attached hereto and incorporated herein by this reference (the “Property”); and

WHEREAS, among other matters, the Disposition Agreement bound HDO4 to purchasing the property and imposed several restrictions and obligations related to the development of the Property; and

WHEREAS, HDO4 is developing a portion of the Property shown on Exhibit “B” which is attached hereto and incorporated herein by this reference, and which is referred to as the “Subject Property” for various residential and commercial uses associated with the Ventana at Duncan Canyon Specific Plan (“Specific Plan”); and

WHEREAS, the City anticipates that development of the Specific Plan will promote economic growth, community aesthetics, and harmonious development withi n the City which will benefit the welfare of its residents; and

WHEREAS, market and economic conditions in the City have changed since the parties approved the Disposition Agreement, such that the Disposition Agreement now imposes several barriers on the development of the Subject Property, which, if kept in place, would materially delay the development thereof; and

WHEREAS, in the interest of facilitating development of the Specific Plan at the Subject Property, the City and HDO4 mutually desire to approve the Release Agreement attached hereto as Exhibit “C” and incorporated herein by this reference to release the Subject Property from the obligations and restrictions of the Disposition Agreement while preserving certain preserved claims in favor of the City; and

WHEREAS, approval of this Resolution does not constitute approval by the City of any development of the Property or of other activity on the Property that would have a direct or reasonably foreseeable indirect environmental impact pursuant to the California Environmental Quality Act (CEQA). (Pub. Res. Code, § 21065; 14 Cal. Code Regs., §§ 15060(c)(2), 15064(d), & 15378); and

WHEREAS, in accordance with CEQA, the City Council of the City of Fontana certified the Specific Plan Environmental Impact Report (SCH No. 2005111048) on March 27, 2007 (“Certified EIR”). The Certified EIR adequately addressed the project 209
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impacts associated with t he adoption of the Specific Plan. The requirements of the Specific Plan run with the Property regardless of ownership and are not impacted by the Disposition Agreement or the release therefrom. Accordingly, no further environmental review is required in connection with approval of this Resolution pursuant to CEQA Guidelines Sections 15162 through 15164. (14 Cal. Code Regs., §§ 15162–15164); and

WHEREAS, all the prerequisites with respect to the approval of this Resolution have been met.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FONTANA DOES HEREBY RESOLVE AND DECLARE AS FOLLOWS:

Section 1. Recitals and Exhibits. The Recitals set forth above and Exhibits attached to this Resolution are true and correct and are incorporated into this Resolution by this reference.

Section 2. Approval of Release Agreement . The City Council hereby approves the Release Agreement, in substantially the form attached to this Resolution as Exhibit “C”, subject to any non -substantive revisions which do not increase the City’s liability and are approved by the City Attorney, and authorizes the City Manager to sign and enter into the Release Agreement on behalf of the City and direct the City Manager to perform the obligations of the City under the Release Agreement.

Section 3. CEQA. Approval of this Resolution does not constitute approval by the City of any development of the Property or of other activity on the Property that would have a direct or reasonably foreseeable indirect environmental impact pursuant to CEQA. (Pub. Res. Code, § 21065; 14 Cal. Code Reg s., §§ 15060(c)(2), 15064(d), & 15378.) Moreover, in accordance with CEQA, the City Council of the City of Fontana certified the Certified EIR, which adequately addressed the project impacts associated with the adoption of the Specific Plan. The requirements of the Specific Plan run with the Property regardless of ownership and are not impacted by the Disposition Agreement or the release therefrom. Accordingly, no further environmental review is required in connection with approval of this Resolution pursuant to CEQA Guidelines Sections 15162 through 15164. (14 Cal. Code Regs., §§ 15162–15164.)

Section 4. Severability. If any provision of this Resolution or the application of any such provision to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The City Council declares that it would have adopted this Resolution regardless of the invalidity of any particular portion of this Resolution.

Section 5. Effective Date. This Resolution shall become effective immediately upon its adoption.

(Signatures on Following Page)

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APPROVED AND ADOPTED this 8th day of October, 2024.

READ AND APPROVED AS TO LEGAL FORM:

_______________________________
City Attorney

l, 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 at a regular meeting thereof, held on the 8th day of October 2024, by the following vote to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

_______________________________
City Clerk of the City of Fontana

_______________________________
Mayor of the City of Fontana

ATTEST:

_______________________________
City Clerk

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EXHIBIT “A”

LEGAL DESCRIPTION OF THE PROPERTY

[Copy from Release Agreement Once Final]
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EXHIBIT “B”

LEGAL DESCRIPTION OF THE SUBJECT PROPERTY

[Copy from Release Agreement Once Final]
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EXHIBIT “C”

RELEASE AGREEMENT

[Add Once Final]

214
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Recording Requested By and
When Recorded Return To:

HDO4, LLC
Attn: Richard Munkvold
2151 E. Convention Center Way, Suite 222
Ontario, CA 91764

APN (Space Above This Line For Recorder’s Use)

RELEASE AGREEMENT
This Release Agreement (“ Agreement”) is between (i) the City of Fontana, a California municipal corporation and general law city (“ City”), and (ii) HDO4, LLC, a New Mexico limited liability company (“Developer”). In this Agreement, City and Developer are sometimes referred to individually as a “party” and collectively as the “parties.” This Agreement is dated October __, 2024, for reference purposes only. It will not become effective until the “Effective Date” defined below.

RECITALS
A. City and Developer are parties to that certain 2020 Disposi tion Agreement dated July 2, 2020 (including the Exhibits attached thereto, collectively, “Disposition Agreement”).

B. A “Notice of Agreement” pertaining to the Disposition Agreement was recorded in San Bernardino County Recorder’s Office on November 5, 2020, as Document No. 2020-0437487.

C. In accord with the Disposition Agreement, City conveyed to Developer certain real property (“ Property”) located in the City and more specifically described on Exhibit A attached hereto. The Property was conveyed to Developer by that certain grant deed (“ Grant Deed”) recorded in San Bernardino County Recorder’s Office on November 5, 2020, as Document No. 2020-0437488. The Grant Deed recited that the Property was conveyed subject to the Disposition Agreement.

D. Developer is deve loping portions of the Property for various residential and commercial uses. This Agreement pertains to that portion of the Property legally described on Exhibit B attached hereto (“Subject Land”).

E. The Disposition Agreement and Grant Deed created certain covenants, obligations, restrictions, and servitudes pertaining to the Property, including the Subject Land.

The Disposition Agreement also imposed certain obligations and liabilities on Developer and placed restrictions on Developer’s ability to freely t ransfer the Property, including the Subject 215
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Land, and to finance the Property’s development. Those covenants, restrictions, obligations, and liabilities have impeded and delayed Developer’s ability to develop the Subject Land.

F. Developer has requested, and City has agreed to, except as set forth below (i) fully and unconditionally release the Subject Land from the encumbrances, restrictions, and servitudes arising under the Disposition Agreement, and (ii) (A) release Developer from any and all covenants, ob ligations, and liabilities under the Disposition Agreement with respect to the Subject Land, and (B) release the Guarantor (defined below) from all covenants, obligations, and liabilities under the Guaranty (defined below) with respect to the Subject Land.

G. By releasing the Subject Land from the burdens and restrictions of the Disposition Agreement, the development of the Subject Land will occur sooner than if the Subject Land remained subject to the Disposition Agreement. The accelerated development will c reate additional economic opportunities, sales tax revenues, property tax revenues, and other revenues to support City services more quickly than if the Subject Land remained subject to the Disposition Agreement.

AGREEMENT

1. Release of Developer and the Subj ect Land from Disposition Agreement . As of the Effective Date, City, fully and unconditionally releases and discharges Developer and the Subject Land from any covenant, restriction, servitude, obligation, or liability arising under the Disposition Agreem ent and the Grant Deed, excepting only the Preserved Claims (defined below). For purposes of clarity, from and after the Effective Date, the Subject Land may be freely sold, assigned, transferred, hypothecated, and encumbered without restriction, without notice to or consent from City, and without regard to any requirement or restriction arising under the Disposition Agreement. The parties’ intention entering into this Agreement is to fully, finally, unconditionally, and forever release and discharge the Subject Land and Developer from any covenant, restriction, servitude, obligation, or liability arising under the Disposition Agreement with respect to the Subject Land, excepting only the Preserved Claims.

2. Release of Guarantor as to the Subject Land . In c onnection with the Disposition Agreement, City and FH II, LLC, a California limited liability company (“ Guarantor”), entered into that certain Guaranty dated July 16, 2020 (“ Guaranty”). As of the Effective Date, City fully and unconditionally releases and discharges Guarantor from any “Guaranteed Obligation” (as defined in the Guaranty) to the extent that the Guaranteed Obligation is attributable to the Subject Land, excepting only the Preserved Claims.

3. Reaffirmation of Guaranty . Concurrently with executi on of this Agreement Guarantor shall execute a Reaffirmation of Guaranty in the form set forth on Exhibit C attached hereto and deliver the executed original to the City (“Reaffirmation of Guaranty”).

4. Preserved Claims.
a. Notwithstanding anything to the contr ary in this Agreement, nothing in this Agreement (i) releases Developer from any liability arising under the Disposition Agreement with respect to the Subject Land to the extent that the obligation or liability accrued prior to the 216
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recordation of this Agreement, or (ii) releases the Guarantor from any obligation or liability as to a Guaranteed Obligation with respect to the Subject Land to the extent that the obligation or liability accrued prior to the recordation of this Agreement ((i) and (ii), collectiv ely, the “Preserved Claims”).
b. The releases and discharges set forth in this Agreement includes all debts, obligations, or liabilities of any type, nature or amount, liquidated or unliquidated, past, present, and prospective, whether or not known or unknown to City or suspected to exist in City’s favor to the extent attributable to the Subject Land, excepting only the Preserved Claims. Excepting only the Preserved Claims, City waives to the greatest legal extent the protections and provisions of Civil Code section 1542, which provides:
“A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have material ly affected his or her settlement with the debtor or released party.”
The foregoing waiver includes Civil Code section 1542 and all other federal or state laws of similar import.

5. No Effect on City’s Police Powers or on Balance of the Property . This Agreement affects the Subject Land only and does not modify or release any covenant, obligation, restriction, liability, or servitude arising under the Disposition Agreement affecting any portion of the Property other than the Subject Land. Other than the Subje ct Land, all portions of the Property remain subject to the covenants, obligations, restrictions, liabilities, and servitudes arising under the Disposition Agreement. Nothing in this Agreement modifies or limits the City’s lawful exercise of its police po wers to regulate development of the Property (including the Subject Land) as provided by applicable federal, state, and local law. Nothing in this Agreement in any respect does or shall be construed to affect or prejudge the exercise of City’s discretion to the extent allowed by applicable law concerning the issuance of development approvals for the Subject Land and City retains full discretion to the extent allowed by applicable law with respect to the Subject Land, including making any legally -required C EQA determination with respect to Subject Land, and any mitigation measures, conditions of approval pursuant to CEQA and all other applicable laws. Nothing in this Agreement modifies or terminates the Guaranty except as specifically set forth in this Agre ement, nor does it modify or terminate any other agreement or obligation between City and Developer respecting the balance of the Property or its development.

6. Modification of Disposition Agreement and Related Instruments . For the sake of convenience, City and Developer agree to forego preparing specific amendments to the Disposition Agreement, Grant Deed, and Notice of Agreement that may otherwise be necessitated by the releases and other modifications set forth in this Agreement. City and Developer agree that the Disposition Agreement, Grant Deed, and Notice of Agreement will, as of the Effective Date, be deemed amended to conform to the terms of this Agreement. For purposes of clarity and as an example, all covenants, obligations, restrictions, liabilit ies, and servitudes relating to, affecting, or encumbering the Subject Land will be deemed to have been 217
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deleted from the Disposition Agreement for purposes of the future interpretation and enforcement of the Disposition Agreement, Grant Deed, Guaranty, and Notice of Agreement. At all times following the Effective Date, whenever the Disposition Agreement, Grant Deed, Guaranty, and Notice of Agreement explicitly or impliedly refer to the “Property” or portions thereof, those terms will be interpreted and enf orced to exclude the Subject Land from their meaning.

7. Recordation. City and Developer will execute, notarize, and deliver this Agreement in recordable form. Developer may record this Agreement in the San Bernardino County Recorder’s Office at any time after the Effective Date.

8. Effective Date . This Agreement is dated as of October __, 2024, for reference purposes only. This Agreement will not become effective and binding until the date (“ Effective Date”) on which it has been executed by Developer’s aut horized signatories, delivered to City, and executed by City’s authorized signatures after approval of this Agreement by the City Council.

9. Administration of Agreement and Future Assurances . This Agreement will be administered on behalf of City by the City Manager or his or her designee. The City Manager may enter into administrative and/or non-substantive amendments to this Agreement on behalf of City without the need for City Council approval. City and Developer will execute such additional documents an d ins truments as may be necessary to the administration and implementation of this Agreement; however, neither party is obligated to incur any material expense or liability and City is not obligated to take any legislative action or exercise its discretion in any particular way in connection therewith.

10. Governing Law . This Agreement will be governed by and construed in accordance with the procedural and substantive laws of the state of California, without regard to its conflicts of laws principles.

11. Severability. If any clause or provision of this Agreement is held to be illegal, invalid, or unenforceable, it is the intent of the parties that all other clauses or provisions of this Agreement will not be affected thereby, and will remain legal, valid, and enf orceable to the fullest extent permitted by law.

12. Notice. All notices and other communications required or permitted to be given hereunder must be in writing and sent by: (a) certified or registered mail, postage prepaid, return receipt requested, (b) pers onal delivery, or (c) a recognized overnight carrier that provides proof of delivery, and shall be addressed as follows:

If to City:

City Manager
City of Fontana
8353 Sierra Avenue
Fontana, CA 92334-0518

If to Developer:

HDO4, LLC
Attn: Richard Munkvold
2151 E. Convention Center Way, Suite 222
Ontario, CA 91764

218
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With a copy to:

Rutan & Tucker, LLP
Attn: Pat Munoz
18575 Jamboree Road, Suite 900
Irvine, CA 92612

With a copy to:

HDO4, LLC
Attn: Steven B. Imhoof
2151 E. Convention Center Way, Suite 114
Ontario, CA 91764

Notices will be deemed effective upon receipt or rejection only.

13. Time of Essence . Time is of the essence of this Agreement and each and every term and provision hereof.

14. Entire Agreement . This Agreement and its exhibits constitute t he en tire agreement between the parties, and they may not rely upon any statement, promise, or representation not herein expressed. This Agreement may not be modified or altered in any respect except by a writing executed by both parties. This Agreement is fu lly integrated and supersedes all other prior oral or written agreements, statements, promises, or other communications between the Parties concerning the subject matter of this Agreement.

15. Survival. All warranties, representations, and covenants here in wi ll survive the execution and delivery of this Agreement.

16. Further Acts. Each party will, whenever and as often as it shall be reasonably requested to do so by the other party, execute, acknowledge, and deliver, or cause to be executed, acknowledged, a nd de livered, any and all such further conveyances, assignments, approvals, consents, and any and all other documents, and do any and all other acts as may be necessary to carry out the intent and purpose of this Agreement.

17. Consent to Jurisdiction, Venue a nd Se rvice. Any action or proceeding brought respecting this Agreement shall be instituted and maintained in the appropriate court in the County of San Bernardino, California. Developer hereby forgoes and waives any provision of State or Federal law or j udicial decision providing for a change of venue from such court on the grounds that the City is or may be a party to any such action or proceeding, including, without limitation, California Code of Civil Procedure section 394. Each party hereby irrevocab ly consents to the personal jurisdiction of the court. Service of process may be made in any manner provided by law.

18. Waiver. A waiver by either party hereto of a breach of any of the covenants or agreements hereof to be performed by the other party will not be construed as a waiver of any succeeding breach of the same or other covenants, agreements, restrictions, or conditions hereof.

19. Attorneys’ Fees . If any legal action (including arbitration) is commenced to enforce or interpret any provision in this Agreement, then the prevailing party will, in addition to any other legally available relief, be entitled to recover its reasonable attorneys’ fees and costs of litigation (including expert witness fees) either as an element of the costs of suit or in an independent recovery action.
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20. Independence of the Parties . City and Developer acknowledge that, in entering into and performing under this Agreement, each is acting as an independent entity and not as an agent of the other in any respect. Nothing contained herein, in the Disposition Agreement, or in any document executed in connection herewith is intended or may be construed as making City or Developer joint venturers, partners or employer/employee and each party specifically disavows any intent to create any such relationship.

21. Binding on Successors and Assigns . Subject to the limitations on transfers under this Agreement, this Agreement is binding upon and inures to the benefit of the parties and their respective heirs, executors, administrators, legal representatives, successors, and assigns. [remainder of page intentionally left blank;
signatures on next page]
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first set forth above.

CITY OF FONTANA,
a California municipal corporation

By:

Matthew Ballantyne
City Manager

HDO4, LLC,
A New Mexico limited liability company

By:

Richard Munkvold
Chief Financial Officer

Attest

By:

Germaine Key
City Clerk

Approved as to form:

By:

City Attorney

By:

Phillip Burum, Deputy City Manager
Development Services Organization

By:

Gia Lam Kim
Director of Engineering/City Engineer

221

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EXHIBIT A
-1-
50136839.1/202044.0001

EXHIBIT A

LEGAL DESCRIPTION OF THE PROPERTY
(including the Subject Land)
That certain real property located in the City of Fontana, County of San Bernardino, State of California, as more particularly described as:

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EXHIBIT B
-1-
50136839.1/202044.0001

EXHIBIT B

LEGAL DESCRIPTION OF THE SUBJECT LAND
That certain real property located in the City of Fontana, County of San Bernardino, State of California, as more particularly described as:
[TO BE INSERTED AFTER LOT LINE ADJUSTMENT FOR PA3 RECORDED]

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Exhibit C
-1-
50136839.1/202044.0001

EXHIBIT C

FORM OF CONSENT AND REAFFIRMATION OF GUARANTY
[Attached Behind This Page]

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Exhibit C
-2-
50136839.1/202044.0001

CONSENT AND REAFFIRMATION OF GUARANTY
The undersigned, FH II, LLC, a California limited liability company (“ Guarantor”), executed a Guaranty dated July 16, 2020 (“ Guaranty”) in favor of the City of Fontana, a municipal corporation and general law city (“ City”). Pu rsuant to the Guaranty, Guarantor unconditionally guaranteed the performance of specified obligations (identified as the “Guaranteed Obligations” in the Guaranty) of HDO4, LLC a New Mexico limited liability company, and its assignee Ventana 257, LLC a Cali fornia limited liability company (collectively, “Developer”), under that certain 2020 Disposition Agreement (Ventana at Duncan Canyon) dated July 8, 2020 (the “DDA”).

City and Developer are concurrently herewith entering into that certain Release Agreement dated ____________________, 2024 (“Release Agreement”).

Guarantor has reviewed the Release Agreement and hereby (i) approves and consents to Developer executing the Release Agreement and (ii) unconditionally agrees that Guarantor’s obligations under the Guar anty s hall not be altered, reduced, or impaired in any manner as a result of the Release Agreement, except as specifically described in the Release Agreement.

Guarantor hereby unconditionally acknowledges, ratifies and reaffirms its obligations as Guarantor und er the Guaranty in relation to the Release Agreement, as those obligations have been specifically modified by the Release Agreement. Nothing contained in the Release Agreement shall be deemed a waiver of the City’s rights under the Guaranty.

Guarantor understands, acknowledges and agrees that City has entered into the Release Agreement in material reliance upon and receipt of this Consent and Reaffirmation of Guaranty.

Dated: ____________________, 2024 FH II, LLC, a California limited liability company

By:

Name:

Title:

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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3338 Agenda Date: 10/8/2024
Agenda #: A. Category: New Business
FROM:

Finance
SUBJECT:

American Rescue Plan Update
RECOMMENDATION:

1. Receive update and approve revisions to the American Rescue Plan Act (ARPA) Expenditure Plan, including the leveraged projects.

2. Authorize the reallocation of any future unused project balances to other approved projects within the ARPA expenditure plan, including the leveraged projects.

COUNCIL GOALS:
· Operate in a businesslike manner by improving services through the effective use of technology.
· Practice sound fiscal management by producing timely and accurate financial information. · Practice sound fiscal management by living within our means while investing in the future. · Practice sound fiscal management by emphasizing capital formation. · Invest in the City’s infrastructure (streets, sewers, parks, etc.) by maintaining and improving the city's existing infrastructure.
· Invest in the City’s infrastructure (streets, sewers, parks, etc.) by providing for the development of new infrastructure.
· Invest in the City’s infrastructure (streets, sewers, parks, etc.) by creating and promoting community through people, parks, and programs.

DISCUSSION:

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

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

On March 8, 2022, the City Council approved the original ARPA Expenditure Plan (Plan). On City of Fontana Printed on 10/3/2024Page 1 of 5
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File #: 21-3338 Agenda Date: 10/8/2024
Agenda #: A. Category: New Business
September 13, 2022, the City Council subsequently approved a revised Plan which properly categorized existing projects per the Final Rule and eliminated projects that were determined to be ineligible. As all projects were determined eligible in concept for ARPA funding, staff has worked diligently with the City Attorney’s office and HdL ECONSolutions ensuring that all project details met ARPA Final Rule requirements. Currently, all projects have received a final legal determination as to their eligibility. An Updated ARPA plan is presented to Council a few times each Fiscal Year to ensure proper allocation of funds.

Current Plan
The current Plan reflects expenditures in four primary Federal Eligible Use Categories. As the U.S.

Department of Treasury (Treasury) continues to refine reporting requirements, the table below reflects the current budget in the updated categories per the Treasury reporting requirements.

Recommended Plan - Revisions
The revisions proposed for the current Plan budget reflect no change in appropriation.

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File #: 21-3338 Agenda Date: 10/8/2024
Agenda #: A. Category: New Business
Plan revisions being proposed with this item include adjustments to the following projects:
· Leveraged Project: Support Government Employment (hiring above the pre-pandemic baseline) - increase of $3.03 million is recommended as a result of eligible expenses being fully expensed and completion of projects.
· Leveraged Project: Accela - decrease of $193,364 as a result of project completed · Leveraged Project: Fontana 311 - decrease of $697,555 due to project costs being lower than anticipated
· Septic to Sewer - decrease of $1.5 million due to Council action, Item 21-3005 (5/28/2024) · Cypress Storm Drain - increase of $1.5 million due to Council action, Item 21-3005 (5/28/2024)
· Fiber to City Facilities - decrease of $225,942 due to Council action Item 21-3144 (7/23/2024)
· Park Improvements - increase of $225,942 due to Council action Item 21-3144 (7/23/2024) for Veterans Park and Jack Bulik Park.
· Homelessness Prevention Resources and Care Center - decrease of $2.1 million. Project will be funded by General Fund savings as a result of leveraging funds through the Support Government Employment (hiring above the pre-pandemic baseline) project.

Recommended Plan - Leveraged Projects
Leveraged projects include ARPA eligible projects that were programmed in the General Fund and the funding for these projects was revised to use ARPA funds thus making available General Fund for the projects. Additional revisions are requested for Leveraged Projects and are detailed below:

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File #: 21-3338 Agenda Date: 10/8/2024
Agenda #: A. Category: New Business
· Support Government Employment - Hiring Above the Pre-Pandemic Baseline ($9,107,438):

Per the Treasury Final Rule, the City may hire above the pre-pandemic baseline and use SLFRF funds to pay for payroll and covered benefits associated with the recipient increasing its number of budgeted FTEs up to 7.5 percent above its pre-pandemic baseline. All costs associated with new positions approved by Council can be considered for this leveraged project, including by not limited to the new Police Department positions added in 2021-22 and 2022-23. This amount is being increased by $3.03 million to accommodate defunded and completed projects.
· Accela and Fontana 311 projects were also identified as eligible projects. These two projects have been reduced and have been reallocated to the Support Government Employment - Hiring Above the Pre-Pandemic Baseline leveraged project.

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

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File #: 21-3338 Agenda Date: 10/8/2024
Agenda #: A. Category: New Business
Plan Update
As of the last report, all Plan projects had been reviewed and based upon the scope of each project, deemed eligible by HdL and the City Attorney. Since the last report, all projects have been reviewed by City Attorney’s office in detail with the projects having been fully approved. Staff will continue to work with the City Attorney to ensure all projects meet all eligibility requirements. To date, $32.37 million have been expended. Staff is recommending the reallocation of any unused project balances to other approved projects in the interim reporting period. Any changes will be reported to City Council at the end of the next quarter. Attachment B provides a brief update on each project.

FISCAL IMPACT:

There is no net fiscal impact associated with the approval of this item. Approval of this item reallocates ARPA funding within the expenditure plan as detailed in Attachment A.

MOTION:

Adopt staff recommendation.

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ATTACHMENT A CITY OF FONTANA

AMERICAN RESCUE PLAN ACT (ARPA) EXPENDITURE PLAN UPDATE AS OF SEPTEMBER 30, 2024
Federal Eligible Use Category
Treasury Expenditure Category Project Current Plan Proposed Plan Expenditures as of 9/30/24
1) Public Health & Economic Response

1.0 Public Health Metrolink Station Security Cameras 66,410 66,411 66,411 Ventilation Upgrade for City Facilities 2,322,150 2,322,150 2,322,150

2.0 Negative Economic Impacts Fontana Forward Grant Program 190,786 190,786 190,786 Homelessness Prevention Resources and Care Center 8,000,000 5,860,799 5,847,070 Park Improvements 4,079,892 4,305,834 1,942,962

3.0 PH Negative Economic Impact Public Sector
Capacity
Leveraged Project: Support Government Employment
(hiring above the pre-pandemic baseline)
6,077,319 9,107,438 6,077,319 Vaccine Bonus 526,986 526,986 526,986 Leveraged Project: Accela 3,600,000 3,406,636 3,406,636 Leveraged Project: Fontana 311 3,150,000 2,452,445 1,953,695 Part-Time Employee Retention 152,936 152,936 152,936 2) Revenue Loss

6.0 Revenue Replacement Parking Structure 10,000,000 10,000,000 7,622,948 3) Uniform Administrative Requirement, Cost
Principles, and Audit Requirements for Federal
Awards (2 CFR Part 200)

7.0 Adminstrative Administrative Costs 250,000 250,000 50,041 4) Water, Sewer, and Broadband Infrastructure

5.0 Infrastucture Cypress Storm Drain Project 5,840,000 7,340,000 169,360 Data Security & Threat Detection 157,927 157,927 157,927 Endpoint Detection & Response Solution 154,806 154,806 154,806 Fiber to City facilities 2,000,000 1,774,058 37,206 Network Detection & Response Solution - - - Septic to Sewer 2,000,000 500,000 13,465 Storm Drain Infrastructure Masterplan 375,130 375,130 367,409 Sewer Infrastructure Masterplan 424,870 424,870 416,105 5) Premium Pay
Public Safety Premium Pay 887,901 887,901 887,900 Total 50,257,113 50,257,113 32,364,119 Total Unappropriated Fund Balance - Total Allocation 50,257,113 50,257,113 306

ATTACHMENT B CITY OF FONTANA

Costs include but are not limited to City staff time, consultant services including HdL, and City Attorney costs. Any remaining budget will be reallocated to a leveraged project.

Cypress Storm Drain Project 7,340,000 169,360 Water, Sewer, and Broadband Infrastructure
Construction of a storm drain facility along Foothill Blvd between Sierra Ave and Cypress Ave and Cypress Ave between Foothill Blvd and Orange Way to connect to the newly constructed West Fontana Channel along the Metrolink railroad track. The project also includes landscaped median on Foothill Blvd, reconstruction of AC pavement, and ADA compliant sidewalks and curb ramps upgrades.

In progress 5/30/2026 20,500,000 Y The project is currently in the pre-construction phase. The project will be constructed in two phases:
- Phase 1 will be on Foothill Blvd between Sierra Ave and Cypress Ave, and on Cypress Ave between Foothill Blvd and Orange Way ($14.0 million)
- Phase 2 will be on Cypress Ave between Miller Ave and Foothill Blvd and on Juniper Ave between Miller Ave and Foothill Blvd ($6.5 million)
ARPA funds will be used towards the first phase. Phase 2 will be constructed once funding is identified in the future. The total project cost for Phase 1 is funded by ARPA, Local Measure I, Storm Drain, and Landscape. Phase 1 was advertised in March 2024, with anticipated completion of construction in early 2026. All funds for this proejct have been obligated.

Data Security & Threat Detection 157,927 157,927 Water, Sewer, and Broadband Infrastructure
A software suite that integrates with our servers and Office 365 to detect, report, and alert on permissions and activity to help detect unauthorized access.

Complete 9/25/2022 160,000 Y Varonis DatAdvantage software suite was deployed and is currently in use to monitor the City's file servers and Office 365 environment. Approved via consent calendar during the June 28, 2022 City Council meeting. PO #22300174. Project is completed.

Endpoint/Network Detection & Response
Solution
154,806 154,806 Water, Sewer, and Broadband Infrastructure
A technology solution that would help detect, alert, and potentially respond automatically to anomalous or malicious network activity on the City's network
Network:A technology solution that would help detect, alert, and respond to unauthorized activity on the staff computers throughout the City. This would fill the gap between what anti-virus software will detect and our network defenses.

Complete 6/30/2023 150,000 Y Combined with Network Detection and Response solution. Purchased Arctic Wolf Managed Detection and Response (MDR) solution to monitor network traffic to alert on malicious or suspicious activity. Approved via consent calendar during the June 14, 2022 City Council Meeting. PO # 22300235. Project is completed
Fiber to City facilities 1,774,058 37,206 Water, Sewer, and Broadband Infrastructure
This project would run City owned fiber to our 6 facilities with leased lines, 1police substation with a leased line, 4 of our larger parks that currently have no connectivity, and 1 police substation that currently has no connectivity. This would help facilitate the use of technology at the locations (Wi-Fi, security cameras, irrigation systems, etc.).

This project will also fund a portion of the Fiber to City Parks Project at Veteran's Park and Jack Bulik Park, which is also expected to start in Fall 2024
In progress 4/24/2025 1,944,971 N Will be Obligated by
the end of
12/2024
Project 1: Fiber to City Facilities
Sites to be connected are: Palm Court Substation, Southridge Substation, Cypress Center, Don Day Center, Heritage Center, Jack Bulik Center, Martin Tudor Park, Mary Vagle Nature Center, Bill Martin Park, Central City Park, Ralph M. Lewis Sports Complex, South Fontana Park, and Veteran's Park.

The construction is scheduled to begin in Fall 2024.

Project 2: Fiber to City Parks
- Veteran's (instllation of conduit, fiber optic cable, fiber optic splicing, and pull boxes with exstensions - Construction is scheduled for Fall 2024)
- Jack Bulik Park (instllation of conduit, fiber optic cable, fiber optic splicing, and pull boxes with exstensions - Construction is scheduled for Fall 2024)
Funds for both projects will be obligated by the end of October 2024.

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ATTACHMENT B CITY OF FONTANA

On October 25, 2022, City Council approved the Fontana Eats food assistance program to provide a direct benefit to eligible households impacted by COVID-19. As of August 17, 2023, a total 406 households have received $103,512.81 in funding. In partnership with Fontana/s Social Work Action Group (SWAG) this total includes 35 individuals experiencing housing insecurities that received Fontana Eats funding as additional assistance while placed in local rapid housing.

Complete 12/31/2023 190,786 Y Project details are being developed and will be presented to Council for consideration in September 2022. // Project Name Changed to: Fontana Eats // Council approved program to grant Covid Impacted or disproportionate residents $100 to $600 depending on family size and income // Total Applications Submitted: 225 // First 100 applicants to be funded mid-April.

The sunset of the program commenced on or before September 30, 2023. Funds for the Fontana Eats program were exhausted, leaving a total amount of $83,440.00 remaining and any additional funds not expended after final billing from Usio Card Services, will be reallocated to ARPA priority projects. This project has been completed.

Homelessness Prevention Resources and
Care Center
5,860,799 5,847,070 Public Health & Economic Response The design and construction of a homeless shelter to serve the homeless population of the City.
9/1/2022 11/1/2024 17,000,000 Y Additional funding of $9,000,000 is required and potential sources include:
- County of San Bernandino-$5,000,000
- USHUD $4,000,000
Project will provide transitional housing and wrap around services (24 hour managed care) for up to 30 chronically homeless individuals as well as housing and appropriate support services for up to 16 families. This Includes the purchase of a Hotel, the Conversion Costs and 2 years of property management and utilities. Hotel has been purchased.

Leveraged Project: Support Government
Employment (hiring above the pre-pandemic
baseline)
9,107,439 6,077,319 Public Health & Economic Response Per the Treasury Final Rule, the City may hire above the pre-pandemic baseline and use SLFRF funds to pay for payroll and covered benefits associated with the recipient increasing its number of budgeted FTEs up to

7.5 percent above its pre-pandemic baseline.
2022-23 2023-24 9,107,439 Y All costs associated with new positions approved by Council can be considered for this leveraged project, including by not limited to the new Police Department positions added in 2021-22 and 2022-

23. Metrolink Station Security Cameras 66,410 66,411 Public Health & Economic Response Installation of 8 security cameras at the Fontana Metrolink station to help keep the area more secure. The station currently has no operational cameras, nor any City owned cameras.

Complete 10/1/2022 67,000 Y Project is complete.Delays were due to delivery which is delayed due to supply chain issues.

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ATTACHMENT B CITY OF FONTANA

AMERICAN RESCUE PLAN ACT (ARPA) EXPENDITURE PLAN UPDATE DETAIL SEPTEMBER 30, 2024
Project Recommended
Amount
Expended As of
9/30/24
Federal Use Category Description Est. Project Start
Date
Est. Project End
Date
Est. Project Cost Obligated If "N"
Explain
Project Update
Leveraged Project: Accela 3,406,636 3,406,636 Public Health & Economic Response This is a new project and it is recommended that it is funded in the amount of $3.6 million in an effort to leverage funds for projects originally requested in the Revenue Loss category.
2021-22 2023-24 3,406,636 Y In 2021 the Innovation and Technology Department began efforts to improve business processes in the land management and permitting systems. During the pandemic, it became clear that paper processes were no longer an effective way of serving our residents or business partners. The city wished to replace the existing solution with an improved digital solution to meet the needs of city employees, residents, and businesses. Over the course of a year, city staff reviewed processes and gathered requirements for a new solution.

A new solution was selected in late 2021 to help improve processes in the land management and permitting system space. Throughout 2022 the IT department has continued to lead this project, working alongside almost every city department to ensure the new solution will be tailored to meet the city of Fontana’s needs in this space. This project has been a 3-year effort, and we are now nearing the tail-end of the project. The new, improved solution will seamlessly connect with surrounding systems, assist customers with an easy-to-use interface, ensure city employees process requests in a consistent and efficient manner, and provide dynamic insights to internal operations. The new solution went live July 2023. This project is complete Leveraged Project: Fontana 311 2,452,445 1,953,695 Public Health & Economic Response This is a new project and it is recommended that it is funded in the amount of $3.2 million in an effort to leverage funds for projects originally requested in the Revenue Loss category.
2021-23 2023-25 2,452,445 N Will be
Obligated by
the end of
12/2024
The City of Fontana developed and implemented the Fontana 311 system to improve communication and streamline services to its Residents and Businesses by bringing all customer interactions to one central location.

The Fontana 311 system will be a one-stop shop for businesses and residents to file complaints, get answers to questions, keep residents informed and overall improve citizen engagement. The Innovation and Technology department led the project to develop this new system and was sponsored by our Communications and Marketing office. Throughout 2022 and 2023, there has been extensive work with almost every city department to ensure all city services are captured within the application.

Residents will be able to call 311, use a website, or our 311 app to make that first request and then see it through to completion. The Fontana 311 system will allow staff to track requests from initiation to completion. Fontana 311 offers digital government services and makes interacting with government a much smoother process for our residents and businesses. The Fontana 311 system went live in February of 2023 and is now entering phase 2 of the project, which will bring an IVR with AI to assist our residents when they call for services.

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ATTACHMENT B CITY OF FONTANA

AMERICAN RESCUE PLAN ACT (ARPA) EXPENDITURE PLAN UPDATE DETAIL SEPTEMBER 30, 2024
Project Recommended
Amount
Expended As of
9/30/24
Federal Use Category Description Est. Project Start
Date
Est. Project End
Date
Est. Project Cost Obligated If "N"
Explain
Project Update
Park Improvements 4,305,834 1,942,962 Public Health & Economic Response Various projects needed to replace and/or upgrade aging infrastructure in our City's parks.
10/1/2022 6/1/2024 4,059,500 N Will be Obligated by
the end of
12/2024
Improvements are being recommended at the following 10 parks:
--Veteran's Park (installation of ballfield dugout shade structures - completed) - Veteran's West Park (installation of new ballfield backstops - Completed date March 1, 2024 ). - Seville Park (Construction completed may 16, 2024 ).
- Fernandez Park (Construction scheduled for November 4, 2024) - Bill Martin Park (Ballfield dugout shade structures - completed, Shade structures for spectator areas- Construction scheduled for November, 2024).
- Northgate Park (Completed April 15, 2024).
- North Tamarind Park (installation of new jumbo park gazebo for large groups, (Schedule for November 2024). New ADA inclusive playground, shade structures, and rubber safety surfacing- Completed April, 2024)
- Lemon Pepper Park (installation of playground shade structure-Construction scheduled for November, 2024).
- Carmela Park (installation of playground shade structure- Completed.

Parking Structure 10,000,000 7,622,948 Revenue Loss The project will construct a new parking structure within the parking lot of the Fontana HR Office.

In progress 3/30/2025 15,000,000 Y The proposed project is to be constructed within the existing parking lot of the City’s Human Resources Department Building located at 8491 Sierra Avenue, Fontana, CA 92335, and shall consist of a 4-tier parking structure. Each tier will have a footprint of approximately 130 feet by 230 feet with two vehicular entrances, one along Learner Lane and the other along Wheeler Avenue. The City anticipates the structure to include 311 vehicular parking spaces and two elevators. The intent of the structure is to serve as both public and employee parking for the civic center campus.

The Design-Build contract was approved by council on June 13, 2023. The construction is in progress with anticipated completion in early 2025.

Part-Time Employee Retention 152,936 152,936 Public Health & Economic Response Project includes recruitment and retention bonuses for part-time personnel. Complete 2022-23 152,936 Y Project includes recruitment and retention bonuses for part-time personnel with a current allocation of $250,000.

Public Safety Premium Pay 887,901 887,901 Premium Pay Project includes public safety retention bonuses which were previously categorized as Employee Retention/Incentive as Public Health & Economic Response.

Complete 2022-23 887,901 Y Project includes public safety retention bonuses. Project is Complete Septic to Sewer 500,000 13,465 Water, Sewer, and Broadband Infrastructure
The project will provide septic to sewer conversion in a disadvantaged communities (DAC) area in the city.

In Progress 12/31/2024 500,000 N Will be Obligated by
the end of
12/2024
The City will utilize up to $500,000 to design sewer main on Arrow Blvd. The design contract has been awarded and fully executed. The full expenditure of the funds is anticipated by end of the year.

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ATTACHMENT B CITY OF FONTANA

Contract is being funded by ARPA. Due to staff shortage in consultant, the expected date for Council workshop is October 2024.

Sewer Infrastructure Masterplan 424,870 416,105 Water, Sewer, and Broadband Infrastructure
Storm Drain and Sewer master plans update. With completed projects and various changes since the last update, the master plans are due for an update.
9/30/2022 11/30/2024 478,502 Y Contract with Albert A. Webb Associates, Inc. for $478,502 was approved on October 3, 2022.

Contract is being funding by ARPA and $53,632 from Fund 702. An addendum for $40,000 is approved by the City Council from Fund 702 to provide more detailed analysis of the Downtown Area with the funds being drawn from the Sewer Capital Projects Fund. Due to additional scope of the project, the project will be ready for a Council workshop in October 2024.

Vaccine Bonus 526,986 526,986 Public Health & Economic Response Project includes a citywide vaccine bonus. Complete 2022-23 526,986 Y Project includes a citywide vaccine bonus. Citywide Vaccine Bonus, 40 hours per full-time employee with a current allocation of $527,454. Project ended in December 31, 2022.

Ventilation Upgrade for City Facilities 2,322,150 2,322,150 Public Health & Economic Response Upgrades to existing HVAC equipment to provide better protection to employees from Covid-19.

Complete 7/30/2023 2,500,000 Y Project went out to bid and closed August 23, 2022. Bid responses are being evaluated by Purchasing and contract will be presented to council for consideration in September 2022.

Installation began January 2023 and was completed July of 2023. There were a total of 990 air purifiers installed along with 200 air monitors in a total of 20 city buildings. Completed.

Total 50,257,113 32,364,119 REVISED: Helicopter Purchase 3,000,000 3,000,000 This request is for an A-Star helicopter which will allow for a more available fleet and readied aircraft while one or more are down for scheduled or unscheduled maintenance. The A-Star can fly in windy conditions and eliminate the current loss of approximately 30% of hours due to inclement weather. Additionally, the upgraded program could provide for the ability to support an officer down rescue.

The increased functionality of the A-Star will allow for integrated maps to support in pursuits and tactical situations; recording capabilities to assist in evidence, training, and civil litigations; the ability to fly at higher altitudes to assist in covert surveillances to aid the Narcotics Unit, Fugitive Apprehension Team, and other units in the special operations division.

Additionally, the A-Star will also provide air support to the Fire District including fire patrol and real-time tactical assessments improving response times and decreasing loss of property.
5/27/2022 11/30/2022 3,000,000 N/A The AirBus Helicopter was purchased and delivered in May 2022 as well as the Chopper Spotter The balance of the outstanding expenditures will be presented to Council and funding (General Fund 101) request will be submitted for approval as needed. Project details include the following:
- 2011 Air Bus AS350B2 ($1,670,125) - purchased using General Fund (101) May 2022. - Chopper Spotter ($22,760) - purchased using General Fund (101) - 5 Year Impound Fees ($625,000) - General Fund (101) monies need to be requested and placed in a project as a one time payment of ($625,000). Funds were in original proposal for annual maintenance (5 yrs x $125,000)
- 12 Year Maintenance ($225,000) - General fund (101) request submitted for 1st Qtr. (2023-2024) - FY 21/22 Prorated Premium Insurance ($3,962) - General Fund (101) paid July 2022. - FY 22/23 Insurance ($47,541) Increase cost of insurance. FY 23/24 Insurance billed at the same rate of FY 22/23. Insurance premium paid from General Fund (101). - Cargo Hook Kit/Bambi Bucket ($100,000) - Currently aircraft unavailable to install equipment. Fire District/Dept will be contacted when ready to proceed with purchase.

Additionally, there are on-going associated costs related to general contract increase for fuel, maintenance, storage, flight hours, and insurance premiums. The Police Department will include General Fund (101) increase request annually during budget preparation and supplement budget preparation.

This project is now funded by General Fund. Remaining outstanding items to be purchased included:

Remaining Impound Fees, 12 Year Maintenance, and Cargo Hook Kit/Babmi Bucket.

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ATTACHMENT B CITY OF FONTANA

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Fontana City CouncilOctober 8, 2024

Fontana City Council
October 8, 2024