Fontana City Council
October 22, 2024

Tuesday, October 22, 2024
2:00 PM
City of Fontana
8353 Sierra Avenue
Fontana, CA 92335
Revised Agenda
Ord. No.1958 Reso. No. 2024-115
Grover W. Taylor Council Chambers
City Council Meeting
Acquanetta Warren - Mayor
Peter A. Garcia - Mayor Pro Tem
John B. Roberts - Council Member
Jesus "Jesse" Sandoval - Council Member
Phillip Cothran - Council Member
Germaine Key - City Clerk
Janet Koehler-Brooks, City Treasurer
1 City Council Meeting Revised Agenda October 22, 2024
Welcome to a meeting of the Fontana City Council.

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

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

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

PUBLIC COMMUNICATION - CLOSED SESSION:

This is an opportunity for citizens to speak to the City Council for up to 3 minutes on the following Closed Session. The Mayor and City Council reserve the right to adjust this time limit based on the number of speakers who wish to address the Mayor and City Council.

A. Public Communications - Closed Session
CLOSED SESSION:

A. 1:00 P.M. CLOSED SESSION
A. 1. CONFERENCE WITH LEGAL COUNSEL - EXISTING

LITIGATION
(Gov. Code Section 54956.9(d)(1))
Name of Case: VANESSA HENDERSON V. CITY OF
FONTANA, CASE NO. CIVSB2405694

2. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED

LITIGATION
(Government Code section 54956.9(d)(4))
21-3378

2 City Council Meeting Revised Agenda October 22, 2024
Initiation of litigation: One Potential Case

3. CONFERENCE WITH LEGAL COUNSEL – EXISTING

LITIGATION
(Gov. Code Section 54956.9(d)(1))
Name of Case: Planned Parenthood /Orange and San
Bernardino Counties, Inc. vs. City of Fontana
CALL TO ORDER/ROLL CALL:

A. Call To Order/Roll Call:

INVOCATION/PLEDGE OF ALLEGIANCE:

A. Invocation/Pledge of Allegiance:

PROCLAMATION:

A. Proclamation
A. 1. Mayor Warren and City Council to proclaim October as National Manufacturing Month (representative from
California Manufacturing Technology Consulting, Cynthia Amador to accept).
21-3353
SPECIAL PRESENTATIONS:

A. Special Presentations
A. 1. Mayor Warren and City Council to recognize, Sergeant Tyler Burton, Corporal Katie Beebe, and Officers Samuel Saenz, Christopher Oropesa, Hector Iniguez, Luke Gober, and Derrick Tamanaha as September 2024 Employees of
the Month (Captain Burton to present).
21-3354
PUBLIC COMMUNICATIONS:

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

A. Public Communications
CONSENT CALENDAR:

3 City Council Meeting Revised Agenda October 22, 2024
All matters listed under CONSENT CALENDAR will be enacted by one motion in the form listed below. There will be no separate discussion on these items prior to the time Council votes on them, unless a member of the Council requests a specific item be removed from the Consent Calendar for discussion.

Approve Consent Calendar Items as recommended by staff.

A. Approval of Minutes 21-3352
Approve the minutes of the October 8, 2024, Regular City Council Meeting.

City Council Meeting Minutes 10-08-2024.pdfAttachments:

B. Final Acceptance of the Jurupa Avenue Landscape Median Project
21-3310
Accept as complete the work performed by KASA Construction, Inc. for the construction of the Jurupa Avenue Landscape Median Project (#37600020).

Vicinity MapAttachments:

C. Acceptance of Final Map for Tract No. 20431 21-3330

1. Approve the Final Map for Tract No. 20431, located on the west side of Cherry Avenue and south of Foothill Boulevard; accept as public dedicated street and easements; and

2. Authorize the City Manager to enter into a Sudvision Agreement with the subdivider.

TRACT 20431 - VICINITY MAP.pdf
TRACT 20431 - SUBDIVISION IMPROVEMENT
AGREEMENT WITH BONDS.pdf
TRACT 20431 - FINAL MAP.pdf
Attachments:

D. Final Acceptance of Street, Storm Drain, Sewer,
Landscape, and Signing & Striping Improvements on the
northeast corner of Summit Avenue and Citrus Avenue for Tract No. 18825-1
21-3332

1. Accept as complete the street, storm drain, sewer, landscape, and signing & striping improvements for Tract No. 18825-1, located on the northeast corner of Summit Avenue and Citrus Avenue.

2. Adopt Resolution No. 2024-115 , accepting sewers in Tract No. 18825-1 as part of the City sewer system.

TR 18825-1 VICINITY MAP.pdf
TR 18825-1 MAP.pdf
TR 18825-1 BOND AND SUBDIVISION IMPROVEMENT
AGREEMENT.pdf
TR 18825-1 - SEWER ACCEPTANCE RESOLUTION.docx
Attachments:

4 City Council Meeting Revised Agenda October 22, 2024
E. Final Acceptance of the Randall Avenue Street
Improvement Project, from Catawba Avenue to Citrus
Avenue
21-3348
Accept as complete the work performed by Matich Corporation for the Randall Avenue Street Improvement Project, from Catawba Avenue to Citrus Avenue (#37600048)
Randall Ave Proj Vicinity Map.pdfAttachments:

F. Repayment of a loan issued from the City of Fontana to the Stage Red Enterprise Account
21-3349
Approving the MOU for the repayment of a seven hundred fifty thousand dollar ($750,000) inter-city loan from the City of Fontana General Fund to the Stage Red Enterprise Fund.

MEMORANDUM OF UNDERSTANDING CONCERNING
STAGE RED LOAN.docx
Attachments:

G. Authorization to Share Data with California Franchise Tax Board
21-3368
Adopt Resolution No. 2024-116 of the City Council of the City of Fontana authorizing the City Manager to execute an agreement between the City of Fontana and the State of California Franchise Tax Board in the Local Government Sharing Program.

FTB Agreement Resolution March 2024.docxAttachments:

H. Accept Donation from San Bernardino County Second
District Supervisor, Jesse Armendarez ( 2024 Veterans Day Celebration)
21-3371
Accept donation from San Bernardino County Second District Supervisor, Jesse Armendarez in the amount of $1,000 for use towards the 2024 Veterans Day Celebration.
101024 SBC Second District Supervisor, Jesse Armendarez (Veterans Day Celebration).pdf
Attachments:

I. Accept Donation from Fontana Unified School Board
Member, Adam Perez (2024 Veterans Day Celebration)
21-3372
Accept donation from Fontana School Board Member, Adam Perez in the amount of $1,000.00 for use towards the 2024 Veterans Day Celebration. 101024 Fontana School Board Member, Adam Perez
(Veterans Day Celebration).pdf
Attachments:

J. Proposed Business License Fee Waiver 21-3380

5 City Council Meeting Revised Agenda October 22, 2024
Consider proposal to waive delinquency fee
K. A Sum in Lieu of Utility Undergrounding Deferral and Lien Agreement and Sum in Lieu of Utility Undergrounding Lien with Aman Brar for Assessor Parcel Number 0236-052-47.
21-3382

1. Staff recommends that the City Council approve the Sum in Lieu of Utility Undergrounding Deferral and Lien Agreement and Sum in Lieu of Utility Undergrounding Lien with Aman Brar for Assessor Parcel Number 0236- 052-47.

2. Authorize the City Manager, or his designees, to sign and approve the Sum in Lieu of Utility Undergrounding Deferral and Lien Agreement and Sum in Lieu of Utility Undergrounding Lien with Aman Brar for Assessor Parcel Number 0236-052-47.

Fontana -- Aman Bar Fee in Lieu Agreement Reso.-c1.doc
Aman Brar at South. Lien for Sum in Lieu of Undergrounding Utilities Agreement (003)-c1.docx
Aman Brar at South- Deferral and Lien Agreement
(Undergrounding Utilities)-c1.doc
Attachments:

L. A Sum in Lieu of Utility Undergrounding Deferral and Lien Agreement and Sum in Lieu of Utility Undergrounding Lien with Jadel Enterprises, LLC for Assessor Parcel Number
0236-081-48.
21-3383

1. Staff recommends that the City Council approve the Sum in Lieu of Utility Undergrounding Deferral and Lien Agreement and Sum in Lieu of Utility Undergrounding Lien with Jadel Enterprises, LLC for Assessor Parcel Number 0236-081-48.

2. Authorize the City Manager, or his designees, to sign and approve the Sum in Lieu of Utility Undergrounding Deferral and Lien Agreement and Sum in Lieu of Utility Undergrounding Lien with Jadel Enterprises, LLC for Assessor Parcel Number 0236-081-48.

Jadel Enterprises Fee In Lieu Reso.-c1.docx
Jadel Enterprises LLC. Lien for Sum in Lieu of
Undergrounding Utilities Agreement-c1.docx
Jadel Enterprises, LLC- Deferral and Lien Agreement
(Undergrounding Utilities)-c1.doc
Attachments:

PUBLIC HEARINGS:

To speak on Public Hearing Items, submit comments via e-mail at [email protected]. In the subject of your e-mail please indicate whether you are in favor or opposition of the item. Comments must be received no later than 12:00 P.M. on the day of the meeting. Comments of no more than three ( 3) minutes will be read into the record at the appropriate time during the meeting. If you challenge in court any action taken

6 City Council Meeting Revised Agenda October 22, 2024
concerning a Public Hearing item, you may be limited to raising only those issues you or someone else raised at the Public Hearing described in this notice or in written correspondence delivered to the City at, or prior to, the Public Hearing.

All Public Hearings will be conducted following this format:
(a) hearing opened (e) oral - favor
(b) written communication (f) oral - opposition
(c) council/staff comments (g) hearing closed
(d) applicant comments (applicant not limited to 5 minutes) A. Request to Continue the Public Hearing, Election, and Resolutions on Formation of the City of Fontana
Community Facilities District No. 115M (Parcel Map No . 19156)
21-3355
Staff recommends that the City Council open and continue the public hearing on the formation of the City of Fontana Community Facilities District No. 115M, County of San Bernardino, State of California (“CFD No. 115M”), to the December 10, 2024 City Council meeting.

B. Public Hearing, Election, and Resolutions on Formation of Community Facilities District No. 116M (Tract Map No .
20511)
21-3356
Immediately after conducting a Public Hearing on the formation of the City of Fontana Community Facilities District No. 116M, County of San Bernardino, State of California (the “District” or “Community Facilities District No. 116M”), staff recommends the City Council take the following actions in the following order:

1. Adopt Resolution No. 2024-117, Establishing the City of Fontana Community Facilities District No .116M and the Boundaries thereof ( the “Resolution of Formation”).

2. Adopt Resolution No. 2024-118, Calling a Special Election and Submitting to the Voters of Community Facilities District No. 116M a Proposition Regarding the Annual Levy of Special Taxes within Community Facilities District No. 116M to Pay the Costs of Certain Services to be Provided by Community Facilities District No. 116M and a Proposition Establishing an Appropriations Limit for Community Facilities District No. 116M (the “Resolution Calling the Election”).

3. Conduct the Special Election.

4. Adopt Resolution No. 2024-119, Declaring the Results of the Special Election for Community Facilities District No. 116M on the Propositions with Respect to ( i) the Annual Levy of Special Taxes to Pay the Costs of Certain Services to be provided by Community Facilities District No. 116M

7 City Council Meeting Revised Agenda October 22, 2024
and ( ii) the Establishment of an Appropriations Limit (the “ Resolution Declaring Election Results”).

5. Conduct First Reading (Read title only, and waive further reading) of Ordinance No. 1958, Authorizing the Levy of a Special Tax within Community Facilities District No. 116M (the “Ordinance”).

Resolution of Formation
Resolution Calling Election
Resolution Declaring Election Results
Ordinance
CFD Report
Attachments:

NEW BUSINESS:

A. New Business
A. Fiscal Year 2024-25 First Quarter Budget Status Report 21-3344 Approve the recommended Fiscal Year 2024-25 First Quarter Budget adjustments.

FY24-25 First Quarter Budget Status Report.pdfAttachments:

B. Issuance of Special Tax Bonds for CFD # 112 (The Gardens Phase One)
21-3358
Adopt Resolution No. 2024-120, of the City Council of the City of Fontana authorizing the issuance of City of Fontana Community Facilities District No. 112 (The Gardens Phase One) Special Tax Bonds, Series 2024, in an aggregate principal amount of not to exceed $32,000,000, 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.

Resolution
Indenture
Continuing Disclosure Agreement
Bond Purchase Agreement
Official Statement
Appraisal Report
Attachments:

CITY MANAGER COMMUNICATIONS:

A. City Manager Communications

8 City Council Meeting Revised Agenda October 22, 2024
ELECTED OFFICIALS COMMUNICATIONS/REPORTS:

A. Elected Officials Communications/Reports
ADJOURNMENT:

A. Adjournment
Adjourn to the next Regular City Council Meeting on November 12, 2024 at 2:00 p.m. in the Grover W. Taylor Council Chambers located at 8353 Sierra Avenue, Fontana, California.

9 City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3378 Agenda Date: 10/22/2024
Agenda #: A. Category: Closed Session
Closed Session
Tuesday, October 22, 2024
1:00 P.M.

City Hall - Executive Conference Room
City Council
Acquanetta Warren, Mayor
Peter Garcia, Mayor Pro Tem
John Roberts, Council Member
Jesus “Jesse” Sandoval, Council Member
Phillip W. Cothran., Council Member
City of Fontana Printed on 10/16/2024Page 1 of 1
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10 City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3353 Agenda Date: 10/22/2024
Agenda #: A. Category: Proclamation
Proclamations
Tuesday, October 22, 2024
2:00 P.M.

Council Chambers
City Council
Acquanetta Warren, Mayor
Peter Garcia, Mayor Pro Tem
John Roberts, Council Member
Jesus “Jesse” Sandoval, Council Member
Phillip W. Cothran., Council Member
City of Fontana Printed on 10/16/2024Page 1 of 1
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11 City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3354 Agenda Date: 10/22/2024
Agenda #: A. Category: Special Presentation
Special Presentations
Tuesday, October 22, 2024
2:00 P.M.

Council Chambers
City Council
Acquanetta Warren, Mayor
Peter Garcia, Mayor Pro Tem
John Roberts, Council Member
Jesse “Jesus” Sandoval, Council Member
Phillip W. Cothran, Council Member
City of Fontana Printed on 10/16/2024Page 1 of 1
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12 City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3352 Agenda Date: 10/22/2024
Agenda #: A. Category: Consent Calendar
FROM:

City Clerk
SUBJECT:

Approval of Minutes
RECOMMENDATION:

Approve the minutes of the October 8, 2024, Regular City Council Meeting.

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

DISCUSSION:

The City Council will consider approval of the minutes of the October 8, 2024, Regular City Council Meeting. The draft minutes are attached to this report for Council review and approval.

FISCAL IMPACT:

None.

MOTION:

Approve staff recommendation.

City of Fontana Printed on 10/16/2024Page 1 of 1
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13

City of Fontana

8353 Sierra Avenue
Fontana, CA 92335

Minutes

Tuesday, October 8, 2024

2:00 PM

Grover W. Taylor Council Chambers

City Council Meeting

Acquanetta Warren - Mayor
Peter A. Garcia - Mayor Pro Tem
John B. Roberts - Council Member
Jesus "Jesse" Sandoval - Council Member
Phillip Cothran - Council Member
Germaine Key - City Clerk
Janet Koehler-Brooks, City Treasurer

14

CLOSED SESSION:

A. 1 P.M. CLOSED SESSION

The Closed Session meeting of the Fontana City Council was held in the Executive Conference Room, 8353 Sierra Avenue, Fontana, CA 92335, on Tuesday, October 8, 2024.

Mayor Warren called the meeting to order at 1:01 p.m., with all members of the City Coun cil present.

PUBLIC COMMUNICATION - CLOSED SESSION:

There were no public communications received for the following items:

1. CONFERENCE WITH LABOR NEGOTIATOR PURSUANT TO GOVERNMENT CODE SECTION 54957.6
City Negotiator: Matthew Ballantyne, City Manager and Rakesha Voss, Director of Human Resources and Risk Management. Employee Organization(s): Teamsters Local 1932 City Hall Bargaining Unit; Teamsters Local 1932 Yard Bargaining Unit; Police Management Association; Police B enefits Association; Police Officers Association and Management/Confidential Employees.

2. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
(Gov. Code Section 54956.9(d)(1))
Name of Case: Catalyst - Fontana LLC v. City of Fontana, et al Case No. CIVSB2329401

CALL TO ORDER/ROLL CALL:

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

The Regular Meeting of the Fontana City Council was held in the Grover W. Taylor Council Chambers, 8353 Sierra Avenue, Fontana, CA 92335, on Tuesday, October 8, 2024.

Mayor Warren called the Regular City Council Meeting to order at 2:04 p.m.

ROLL CALL:

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

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

ABSENT: Council Member Cothran

15

INVOCATION/PLEDGE OF ALLEGIANCE:

A. Invocation/Pledge of Allegiance:

The invocation was given by Council Member Roberts, followed by the pledge of allegiance led by Mayor Pro Tem Garcia.

CLOSED SESSION ANNOUNCEMENT:

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

PROCLAMATIONS:

A. P roclamations

1. Mayor Warren and the City Council proclaim ed October 2024 as National Community Planning Month, presenting a proclamation to Director of Planning Patty Nevins.

2. Mayor Warren and the City Council proclaim ed the second week of October 2024 as Code Compliance Officer Appreciation Week, presenting a proclamation to Supervising Code Enforcement Inspector Jason Barber.

SPECIAL PRESENTATIONS:

A. Special Presentations

1. Mayor Warren and the City Council recognized Corporal Christopher Romo, Officers Lauren Baker and Isaiah Sandoval, as August 2024 Employees of the Month.

2. Mayor Warren and the City Council recognized Associate Planner Cecily Session-Goins as the 2024 Planning Department Employee of the Year.

3. Mayor Warren and the City Council recognized Senior Code Compliance Inspector Efrain Gonzalez and Senior Environmental Control Technician Alejandra Montano as 2024 Employees of the Year.

PUBLIC COMMUNICATIONS:

A. Public Communications

The following individuals spoke under public communications:

16

Frank Atry discussed public comments and removal of disruptive persons.

Magda Torrelles discussed concerns with the conditions of the Orchard Apartments.

Also stated she was excited to be a new resident of Fontana and thanked the Council for their service.

Deborah Hall Lyndsey invited the community to attend a voter education workshop on Saturday, October 12th at Community Baptist Church and thanked all who participated in and contributed to the success of the Chill N' Grill event.

Christy Albilez of the Shady Trails Community Association discussed the need for a police substation at their community and offered space to the Fontana Police Department at no charge.

CONSENT CALENDAR:

ACTION: Motion was made by Council Member Sandoval, seconded by Council Member Roberts, and passed by a vote of 4- 0 to approve Consent Calendar Items “A-L.” The motion carried by the following vote: AYES: Warren, Garcia, Roberts, and Sandoval; NOES: None; ABSTAIN: None; ABSENT: Cothran

A. Approval of Minutes 21-3335
Approve the minutes of the September 24, 2024, Regular City Council Meeting, and the September 26, 2024, Special City Council Meeting.

B. Declaration of Surplus Land - North Fontana Industrial Complex 21-3231 - Surplus Land along Duncan Canyon Road
Adopt Resolution No. 2024-113, declaring a portion of City-owned real property on Duncan Canyon Road east of Sierra Ave exempt surplus land as defined by the Surplus Land Act.

C. Approve and Authorize the City Manager to enter into a 21-3242 Maintenance Agreement to Establish Maintenance Obligations and Certain Rights Incidental to the Public Right of Way with Ventana 257, LLC.

Approve and authorize the City Manager to enter into a Landscape Maintenance Agreement to establish maintenance obligations and certain rights incidental to the public right of way along Duncan Canyon Road and Citrus Avenue.

D. Authorize the Purchase of Two (2) Altec AT37G Aerial Trucks. 21-3285 And One (1) Altec LR860-E70 Aerial Truck.

1. Authorize the Purchasing Division to use the Sourcewell Cooperative Purchasing Agreement (Contract #110421-ALT) for the purchase of Two 17

(2) Altec AT37G for $156,049.56 each and One (1) Altec LR860-E70 for $240,623.80 total cost for all three units is $552,722.92.

2. Approve the Non-Competitive Proposal method of the City’s Purchasing Policies and Procedure Manual Section 3.1.5.

E. Award Bid for Vehicle Annual Purchases, Service, and OEM 21-3288 Parts Contract, PW-22-244-SP
Award bid (PW-24-244-SP) and authorize the vehicle purchases, service, and OEM parts for two (2) years with three (3) optional annual renewals to the following bidders:
a. Bakersfield Dodge
b. Claremont Toyota
c. Crown Toyota
d. Fontana CDJR Dodge
e. Guaranty Chevrolet Motors Inc.
f. Victorville Chevrolet

F. Approve a Bond Reduction for Tract No. 20010 (In-tract 21-3298 Improvements) for the Narra Hills Project, formerly known as Monarch Hills
Approve a bond reduction of the Faithful Performance and Labor and Materials Bonds posted by LS Fontana, LLC for Tract No. 20010, located along Coyote Canyon Road (formerly Lytle Creek Road) and north of Duncan Canyon Road.

G. Approve and Authorize the City Manager to Execute a 21-3314 Temporary Easement Deed with North Fontana Investment
Company, LLC.

Approve and authorize the City Manager to execute a Temporary Easement Deed with North Fontana Investment Company, LLC for the Ventana Project.

H. 2025 Selective Traffic Enforcement Program Grant Award 21-3317

1. Accept the 2025 State of California Office of Traffic Safety (OTS) Selective Traffic Enforcement Program (STEP) Grant, number PT25162 in the amount of $365,000.

2. Authorize the Chief of Police or his designee to sign all related grant documents including extensions or modifications for the grant; and expend funds as outlined in the grant agreement.

I. 2023 Homeland Security Grant Program (HSGP) 21-3319

1. Accept the 2023 Homeland Security Grant Program subrecipient award in the amount $47,072 from the Office of Homeland Security.

2. Authorize the Chief of Police or his designee to sign all related grant 18

documents including extensions or modifications for the grant; and expend funds as outlined in the grant agreement.

J. Approve Amendment No. 4 to Professional Service Agreement 21-3321 with Quality Management Group (QMG) for Property Manageme nt Services in conjunction with city-owned properties.

1. Approve and authorize the City Manager to execute Amendment No. 4 to Professional Services Agreement SP-15-HD-22 for professional property management services in the additional amount of $65,000 for a total not to exceed $165,000.

2. Approve and authorize the City Manager to execute any future amendments to the contract with Quality Management Group (QMG) for professional property management services.

K. Police Department Monthly Information Update 21-3325 Accept the Police Department monthly information update for August 2024.

L. Consideration of Release Agreement (“Release Agreement”) by 21-3343 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 furthe rance of promoting buildout of the Ventana at Duncan Canyon Specific Plan (“Specific Plan”).

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”).

NEW BUSINESS:

A. New Business
A. American Rescue Plan Update 21-3338

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.

19

Chief Financial Officer Jessica Brown provided the staff report.

Deputy City Manager Phillip Burum provided an update on “ The Path,” communicating that a majority of the ARPA funds allocated towards the project had been spent. Deputy City Manager Burum stated that the facility opened in July and approximately 20 cases w ere transferred over from the city’s Homeless Outreach Support Team. He also mentioned that two cases had already graduated to permanent housing and additional rooms would be available in early 2025.

Another discussion ensued between Mayor Pro Tem Garcia and Chief Financial Officer Brown regarding city goals and how the city can encumber the remaining ARPA funds.

ACTION: Motion was made by Council Member Roberts , seconded by Mayor Pro Tem Garcia and passed by a vote of 4 -0 to approve staff recommendation on New Business Item “A.” The motion carried by the following vote: AYES: Warren, Garcia, Roberts and Sandoval; NOES: None; ABSTAIN: None; ABSENT: Cothran

CITY MANAGER COMMUNICATIONS:

A. City Manager Communications

City Manager Matt Ballantyne did not have any comments.

ELECTED OFFICIALS COMMUNICATIONS/REPORTS:

A. Elected Officials Communications/Reports

City Clerk Key congratulated all city staff who were recognized at today's meeting.

City Treasurer Koehler-Brooks discussed the recent Above the Limits Talent Show and commended staff and participants.

Mayor Pro Tem Garcia thanked all FUSD and MYAC students who volunteered to clean-up at the National Public Lands Day event. Also discussed the topping off ceremony and stated that he looked forward to expanding the civic center campus.

Council Member Sandoval encouraged all to sign up for the Veteran's Day Essay Contest.

Also mentioned that October was Breast Cancer Awareness Month and encouraged all to be screened.

Council Member Roberts thanked the Fire and Police Departments for participating in the recent Chill N Grill event.

Mayor Warren congratulated all staff who were recognized at today's meeting. Also encouraged all to schedule regular preventative health screenings and stated that World Mental Health Day was on October 10th . Discussed various improvements to the civic center campus including the City Hall Annex and Miller Park fencing project . Mayor Warren also 20

encouraged all to a ttend an event at Stage Red, the Fresh, Fit & Fun F air on October 19th, and the Moana performance at Steelworkers Auditorium October 25-27.

ADJOURNMENT:

A. Adjournment

Mayor Warren adjourned the meeting at 3:02 p.m. to the Regular City Council Meeting on Tuesday, October 22 nd, at 2:00 p.m. in the Grover W. Taylor Council Chambers located at 8353 Sierra Avenue, Fontana, California.

_____________________
Christina Rudsell, CMC
Deputy City Clerk

THE FOREGOING MINUTES WERE ADOPTED AND APPROVED BY THE FONTANA CITY COUNCIL ON OCTOBER 22, 2024.

_______________________
Germaine Key
City Clerk

21 City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3310 Agenda Date: 10/22/2024
Agenda #: B. Category: Consent Calendar
FROM:

Engineering
SUBJECT:

Final Acceptance of the Jurupa Avenue Landscape Median Project RECOMMENDATION:

Accept as complete the work performed by KASA Construction, Inc. for the construction of the Jurupa Avenue Landscape Median Project (#37600020).

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 improving the aesthetics of the community through code enforcement, street sweeping, and landscape maintenance.

DISCUSSION:

On October 24, 2023, the City Council authorized the award of a construction contract to the lowest responsible/responsive bidder (KASA Construction, Inc.) in the amount of $4,854,925.10 with a 10% contingency in the amount of $485,492.51 for the Jurupa Avenue Landscape Median Project (#37600020). The proposed improvements for the Jurupa Avenue Landscape Median Project consisted of reconstructing and installing new Americans with Disabilities Act (ADA) compliant curb ramps, a raised median, pavement re-surfacing, roadway signage, traffic striping, and the installation of new landscaping and irrigation system. The project ultimately enhanced the aesthetics of the neighborhood and improved overall circulation along this major corridor of the community.

KASA Construction, Inc. completed the construction of the project on October 1, 2024. The project was successfully completed for the final contract amount of $5,107,936.64, an increase of 5.21% from the original amount of $4,854,925.10 and $232,480.97 under the total authorized budget. All work has been completed to the satisfaction of the City.

FISCAL IMPACT:

As part of the action to accept the construction of the Jurupa Avenue Landscape Median Project (#37600020) as complete, the City will take over the operation and maintenance of this public infrastructure. Appropriate funding for the maintenance work is included in the FY 2024-25 budget under the Public Works & Engineering Department, Parks and Landscape Division.

MOTION:

Approve staff recommendation.

City of Fontana Printed on 10/16/2024Page 1 of 1
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22 JURUPA AVENUE LANDSCAPEMEDIAN PROJECTPROJECT LOCATION N01 inch = 800 feet1600800
23 City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3330 Agenda Date: 10/22/2024
Agenda #: C. Category: Consent Calendar
FROM:

Engineering
SUBJECT:

Acceptance of Final Map for Tract No. 20431
RECOMMENDATION:

1. Approve the Final Map for Tract No. 20431, located on the west side of Cherry Avenue and south of Foothill Boulevard; accept as public dedicated street and easements; and

2. Authorize the City Manager to enter into a Sudvision Agreement with the subdivider.

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:

Tract No. 20431 is located on the west side of Cherry Avenue and south of Foothill Boulevard. The project consists of an 82-unit condominium complex with 27 two-story buildings and associated improvements on a 5.0 gross acres site.

The Tentative Tract Map No. 20431 (TTM21-000011) was approved by the Planning Commission on September 20, 2022. All conditions precedent to submitting the final map have been completed by the applicant. The subdivider, Cherry Village Inland, LLC, has complied with all the Conditions of Approval and has dedicated the required right-of-way and easements as part of the project. The tract map has been reviewed by the City Engineer and is found to be substantially in conformance to the approved tentative tract map.

In addition, an authorization is requested for the City Manager to enter into a Subdivision Agreement with the subdivider to guarantee the completion of required infrastructure in accordance with the Subdivision Map Act. This map is not being brought to the City Council for final approval.

FISCAL IMPACT:

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

MOTION:

City of Fontana Printed on 10/17/2024Page 1 of 2
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24 File #: 21-3330 Agenda Date: 10/22/2024
Agenda #: C. Category: Consent Calendar
Approve staff recommendation.

City of Fontana Printed on 10/17/2024Page 2 of 2
powered by Legistar™
25 26
Revised – RP -09/22/2022

SUBDIVISION IMPROVEMENT AGREEMENT
Tract Map No.:
("Subdivider"):

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

1. General requirements:

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

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

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

The estimat
ed cost of construction set forth in Exhibit “A” is for estimation purposes only, and for calculation of the amount of securities 20431
20431
conditionally approved on September 20, 2022
69,973.33
Sixty Nine Thousand Nine Hundred Seventy Three and 33/100 THIS AGREEMENT is between the City of Fontana, a municipal corporation, County of San Bernardino, State of California ("City") and Cherry Village Inland, LLC 27 Revised – RP -09/22/2022
required pursuant to the provisions of section (2), below. Subdivider’s obligation to complete the improvements, or any portion of them, is not limited in any way by the estimated cost of construction, and the obligation of Subdivider’s surety in connection with the securities required pursuant to the provisions of section (2), below.

2. S ecurity:

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

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

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

T
he security, which guarantees performance, can be released upon acceptance of the improvements by the City Council. The security which guarantees payment to contractor, sub- contractors and to persons furnishing labor, materials or equipment will be released 6 months after acceptance of the improvements by the 28 Revised – RP -09/22/2022
City Council, less the total of all claims to which the City has been given proper notice.

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

3. T ime of Completion:

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

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

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

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

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

4. E ffective Date of Agreement:

T
his Agreement shall not become effective unless and until the Subdivision Ma p has been approved by the City Council of the City of Fontana and also accepted 29 Revised – RP -09/22/2022
the Final Map for reco rdation by the County Recorder of the County of San Bernardino.

5. U tility Deposits - Statements:

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

6. P ermits - Compliance with Law:

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

7. D efinition and Ownership of Improvements:

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

8. Ob ligations of Subdivid er:

N
otwithstanding the fact that Subdivider's plans and specifications, completion of the work, and other acts are subject to approval of the City, it is understood and agreed that any approval by the City thereof shall in no way relieve Subdivider of satisfactorily performing all work on the related obligations hereunder. The construction shall be done strictly in accordance with the plans and specifications prepared by Subdivider or its engineer, and as approved by the City as being consistent with the City Code and Standards. Subdivider warrants that its plans and specifications conform as a minimum to all City codes and standards and that they are adequate to accomplish the work in a good workmanlike manner and in accordance with responsible construction practices.
30 Revised – RP -09/22/2022

9. Super intendence by Subdivider:

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

10. Rep air and Replacements:

Su
bdivider shall replace, or have replaced, or repair, or have repaired, as the case may be, or pay to the owner the entire cost of replacement or repairs, for all survey monuments or for any and all property damaged or destroyed by reason of any work done hereunder, whether such property be owned by the United States or any agency thereof, or by the City or by any public or private corporation, or by any person whomsoever or by combination of such owners. Any such re pair or replacement shall be completed in a reasonable manner and subject to the approval of the City Engineer and affected property owner.

11. Inspection by City:

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

12. Approval by City Engineer.

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

13. Liability for Performance Injury or Damage:

Ne
ither the City nor any of its officers or agents shall be liable to Subdivider or its contractors for any error or omission arising out of or in connection with any work to be performed under this contract. Additionally, the City shall not be liable to the Subdivider or to any other person, firm, or corporation whatsoever, for any injury or damage that may result to any person or property by or from any 31 Revised – RP -09/22/2022
cause whatsoever in, on, or about the subdivision of said land covered by this Agreement, or any part thereof.

14. Inde mnification and Release:

Pr
ior to the commencement of any work pursuant to this contract, Subdivider's contractors shall furnish to City satisfactory evidence of an insurance policy written upon a form and by a company (which meets with the approval of City) insuring City, its officers, agents, and employees agains t loss or liability which may ar ise during the work or which may result from any of the work herein required to be done, including all costs of defending and claim arising as a result thereof. Minimum liability and property damage insurance shall not be less than $250,000 for all damages arising out of bodily injury to a death of one person and not less than $1,000,000 for all damages arising out of bodily injuries to or death of more than one person in any occurrence; and not less than $250,000 for all damages and/or destruction of property in any one occurrence and not less than $500,000 for all damages and/or destruction of property during the policy period.

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

The S
ubdivider hereby releases and agrees to indemnify and save the City harmless from and against any and all injuries to and deaths of persons and injuries to property, and all claims, demands, costs, loss, damage and liabi lity, howsoever the same may be caused and whensoever the same may appear, resulting directly or indirectly from the performance or non- performance of any of or all work to be done in and upon premises adjacent thereto pursuant to this Agreement, and also from any and all injuries to and deaths of persons and injuries to property or other interests and all claims, demands, costs, loss, damage, and liability, howsoever same may be caused and whensoever the same may appear, either directly or indirectly made or suffered by the Subdivider, t he Subdivider's agents, employees, and sub- contractors, while engaged in the performance if the work.

15. Liability of Subdivider:

The
Subdivider agrees that the use for any purpose and by any person of any and all of the streets, easements and improvements herein specified shall be at the sole and exclusive risk of the Subdivider at all times prior to final acceptance by the City of the completed street and other improvements thereon and therein; provided that acceptance by the City shall in no way eliminate or lessen any of Subdivider's obligations or undertakings contained in this Agreement. The issuance of any occupancy permits (if granted) by the City for buildings located within the subdivision shall not be construed in any manner to constitute an 32 Revised – RP -09/22/2022
acceptance and approval of any or all of the required improvements in said subdivision.

16. Relationship of Contractors:

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

17. Repair or Reconstruction of Defective Work:

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

18. Warranty:

Wi
thout limiting the foregoing, Subdivider warrants and guarantees: materials used and workmanship performed on said work for a period of one (1) year after completion and accep tance thereof by the City, and t he setting of all required Final Map monuments.

19. Assi gnment:

Thi
s agreement shall not be assignable by Subdivider without written consent of City.
33 34
Revised – RP -09/22/2022
A
ttachments: (1) Exhibit "A" – Cost Estimate
(2) Exhibit "B" – Time Extension
(3) Securities
35 Revised – RP -09/22/2022

Exhibit “A”

INSERT ENGINEER’S

COST ESTIMATE

IN THIS SPOT

36 1

STAFF USE ONLY
ENGINEERING PC NO.
__________________

CITY OF FONTANA

ENGINEERING DEPARTMENT
COST ESTIMATE - EXHIBIT "A"
DATE: _____________________
DEVELOPER PROJECT NAME__________________
ENGINEER TRACT MAP NO._________________
PHONE NO. PARCEL MAP NO. _______________

STREET IMPROVEMENTS
UNIT

ITEM QUANTITY UNIT COST AMOUNT
6" CURB & GUTTER _ L.F. 17.00 __
8" CURB & GUTTER L.F. 19.00 _
8" THICK CROSS GUTTER S.F. 11.00 _
4" SIDEWALK S.F. 7.00 _
ACCESS RAMP EA 5,000.00 _
DRIVEWAY APPROACHES S.F. 11.00 _
ASPHALT CONCRETE DIKES L.F. 11.00 _
FOG SEAL S.F. .10 ____
IMPORTED EMBANKMENT C.Y. 10.00 _
PREPARATION OF SUBGRADE S.F. .50 _
*A.C. TON 150.00 _
*A.C. OVERLAY(0.20 THICKNESS)
PER CITY STANDARD TON 150.00 _
**PCC CURB ONLY (MEDIAN) L.F. 16.00 _
ADJUST SEWER MANHOLE TO GRADE EA 500.00 _

ADJUST SEWER CLEAN OUT TO
GRADE EA 300.00 _
ADJUST WATER VALVES TO GRADE EA 250.00 _
BARRICADES L.F. 40.00 _
2 X 4 REDWOOD HEADER L.F. 5.00 _
*REMOVAL OF A.C. PAVEMENT S.F. .66 _
**REMOVAL OF P.C.C. CURB L.F. 6.00 _
*REMOVAL OF A.C. BERM L.F. 5.00 _
RETAINING WALL H=2 1/2 FT.

OR LESS L.F. 40.00 ________
BLOCK WALL H=6 FEET L.F. 50.00 ________
AGGREGATE BASE TON 30.00 _ __
GUARD POSTS EA 70.00 _
GUARD PANEL (WOOD) L.F. 40.00 _
SAWCUT L.F. 3.50 _
REFLECTORS AND POSTS EA 100.00 _
STREET SIGNS EA 25 0.00 _
______________________ ________ EA _______ ________ ______________________ ________ EA _______ ________ ______________________ ________ EA __ _____ ________ ______________________ ________ EA _______ ________

STREET IMPROVEMENT SUBTOTAL
* A.C. ASPHALTIC CONCRETE
** P.C.C. PORTLAND CONCRETE CEMENT
May 14, 2024
MCO Development
MFKessler
Cherry Village
20431
(949) 339-5330
170 3,230
1322 9,254
950 10,450
198 693
2,035 1,343.1

27.68 4,152
$31,022.10
3,800 1,900
ELPC23-000016

CITY OF FONTANA

ENGINEERING

PRELIMINARILY APPROVED
BY
DATE

CONSTRUCTION APPROVED

CORRECTIONS

FINAL APPROVED

FOR INFORMATION ONLY
✔
rgaray
8/15/2024
37 2

STORM DRAIN IMPROVEMENTS
UNIT

ITEM QUANTITY UNIT COST AMOUNT
* 18" RCP L.F. 90.00 ________
* 24" RCP L.F. 110.00 ________
* 30" RCP L.F. 250.00 ________
* 36" RCP L.F. 250.00 ________
* 42” RCP ________ L.F. 250.00 ________
* 48" RCP L.F. 260.00 ________
* 54" RCP L.F. 280.00 ________
* 60" RCP L.F. 300.00 ________
* 66” RCP ________ L.F. 320.00 ________
* 78” RCP ________ L.F. 340.00 ________
* 24” CMP ________ L.F. 90.00 ________
* 60” CMP ________ L.F. 320.00 ________
CATCH BASIN/CURB INLET:

W=7 EA 4,000.00 ________
W=10 EA 4, 500.00 ________
W=14 EA 6,000.00 ________
W=21 EA 11,000.00 ________
W=28 EA 14,000.00 ________
JUNCTION STRUCTURE EA 3,200.00 ________

TRAFFIC TYPE JUNCTION
STRUCTURE EA 2,800.00 ________
DISCHARGE STRUCTURE EA 2,800.00 ________
MANHOLES EA 2,500.00 ________
LOCAL DEPRESSION EA 1,250.00 ________
GRATE INLET STRUCTURE EA 2,100.00 ________
_____________________ ________ EA ________ ________
_____________________ ________ EA ________ ________
_____________________ ________ EA ________ ________
STORM DRAIN IMPROVEMENT SUBTOTAL ________
* REINFORCE D CONCRETE PIPE

SANITARY SEWER IMPROVEMENTS
UNIT

ITEM QUANTITY UNIT COST AMOUNT
MANHOLES 60" DIAMETER EA 4,500.00 ________
MANHOLES 48" DIAMETER EA 4,000.00 ________
DROP MANHOLES EA 4,500.00 ________
WYES EA 100.00 ________
CLEANOUTS EA 600.00 ________

REMODELING OF EXISTING
MANHOLE EA 950.00 ________
** 4" VCP L.F. 50.00 ________
** 6" VCP L.F. 6 0.00 ________
** 8" VCP L.F. 70.00 ________
** 10" VCP L.F. 80.00 ________
** 12" VCP L.F. 90.00 ________
** 15" VCP L.F. 100.00 ________
__________________ ________ L.F. _______ ________
__________________ ________ L.F. _______ ________
SANITARY SEWER IMPROVEMENT SUBTOTAL ________
** VITRIFIED CLAY PIPE
2 78 5,460
1,200
$6,760
1 2,800
$2,800
1 100
38 3

TRAFFIC SIGNALS/SIGN/STRIPING
UNIT

ITEM QUANTITY UNIT COST AMOUNT
TRAFFIC SIGNAL MODIFICATION:

ONE CORNER L.S. 75,000.00 _
TWO CORNERS L.S. 100,000.00 _
TRAFFIC SIGNAL NEW L.S. 250,000.00 _
PAINT TRAFFIC STRIPE(1 COAT) L.F. 2.40 _
PAINT TRAFFIC STRIPE(2 COATS) L.F. .65 _
PEDESTRIAN CROSSWALK STRIPING L.F. .65 _

PAVEMENT MARKER
(NON REFLECTIVE) EA 2.50 ________
PAVEMENT MARKER (REFLECTIVE) EA 4.00 _
REFLECTORS AND POSTS EA 100.00 _
STREET SIGNS EA 250.00 _
___________________ ________ EA ________ ________
___________________ ________ EA ________ ________
TRAFFIC SIGNAL/SIGNS/STRIPING SUBTOTAL __

CFD LANDSCAPE IMPROVEMENTS (BONDING PURPOSES ONLY)
AREA LANDSCAPED S.F. $12.00 _
CENTER MEDIAN S.F. $12.00 _
LANDSCAPING IMPROVEMENTS SUBTOTAL __________
SUBTOTALS:

STREET IMPROVEMENT SUBTOTAL....................___________________ STORM DRAIN IMPROVEMENTS SUBTOTAL..............___________________ SANITARY SEWER IMPROVEMENTS SUBTOTAL...........___________________ TRAFFIC SIGNAL/SIGNS/STRIPING SUBTOTAL.........___________________ IMPROVEMENT SUBTOTAL ===================
(*USE THIS TOTAL FOR PLAN CHECK & PERMITTING PURPOSES*) CFD LANDSCAPE IMPROVEMENTS ....................___________________ SUBDIVISION MONUMENT GUARANTEE $1,200 + $50/LOT ...___________________ STREET LIGHTS _______ @ $5,000 ................___________________ CUCAMONGA COUNTY WATER DISTRICT FACILITIES.....___________________ IMPROVEMENT SUBTOTAL.... ===================
ADD 35%..................... ____________________
BONDING TOTAL........___________________
2 $10,000
$51,832.10
$18,141.23
$69,973.33
31,022.10
2,800
6,760
40,582.10
$1,250

CITY OF FONTANA

ENGINEERING

PRELIMINARILY APPROVED
BY
DATE

CONSTRUCTION APPROVED

CORRECTIONS

FINAL APPROVED

FOR INFORMATION ONLY
✔
rgaray
8/15/2024
39 4
APPROVED PUBLIC IMPROVEMENT PLANS:

STREET IMP. DWG. NO._____________________
STREET LIGHT DWG. NO.____________________
SEWER IMP. DWG. NO.______________________
STORM DRAIN IMP. DWG. NO. _______________
TRAFFIC SIGNAL DWG. NO.__________________
SIGNING & STRIPING DWG. NO.______________
6413
6413LT
6414
40 Revised – RP -09/22/2022

SUBDIVISON IMPROVEMENT AGREEMENT
Tract Map No.:

Exhibit “B”
I,
(Subdivider’s name here)
am th
e owner of the property to which this Request is being m ade for of a Time Extension for Project No. .

Name:

Subdivider’s Signature:

Subdivider’s Address:

Date:
(Attached Notary Acknowledgment)

CITY OF FONTANA
BY: DATE :

City Engineer
Print Name
[ ] DENY
[ ] APPROVED
NEW DATE:
41 42
43 44
45 46
47 48
49 50
51 52
53 54
55 56
57 58
59 T&M SURVEYING AUGUST, 2022
60 T&M SURVEYING AUGUST, 2022
61 ( )
0'
SCALE: 1"=100'
100' 100'50'50'
1 2
3 4
5 6
8 9
10 NET 4.55 AC.
7 GROSS 5.00 AC.
11 12
1 2
3 10
9 8
7 6
5 14
2 4
12 11
13 2
2 2
13 LOT 146 LOT 145
TRACT NO. 15581
M.B. 225/92-93
TRACT NO. 15789
M.B. 274/67-68
LOT 151
LOT 150
℄
℄
℄
℄℄
℄
℄
℄
LOT 149
LOT 147LOT 148
PARCEL MAP 10912
P.M.B. 124/94-95
PARCEL MAP NO. 3192P.M.B. 28/24
TRACT NO. 2102
M.B. 31/11-15
℄
14 T&M SURVEYING AUGUST, 2022 62 SET 1" IRON PIPE TAGGED 9309
0'
SCALE: 1"=40'
40' 40'20'20'
/
℄
℄
℄
℄
℄
NET 4.55 AC.

GROSS 5.00 AC.

T&M SURVEYING AUGUST, 2022 63 City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3332 Agenda Date: 10/22/2024
Agenda #: D. Category: Consent Calendar
FROM:

Engineering
SUBJECT:

Final Acceptance of Street, Storm Drain, Sewer, Landscape, and Signing & Striping Improvements on the northeast corner of Summit Avenue and Citrus Avenue for Tract No. 18825-1 RECOMMENDATION:

1. Accept as complete the street, storm drain, sewer, landscape, and signing & striping improvements for Tract No. 18825-1, located on the northeast corner of Summit Avenue and Citrus Avenue.

2. Adopt Resolution No. 2024-115, accepting sewers in Tract No. 18825-1 as part of the City sewer system.

COUNCIL GOALS:
· To invest in the City’sinfrastructure (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:

KB Homes, Inc., constructed street, streetlight, storm drain, sewer, landscape, and signing & striping Improvements for Tract No. 18825-1, located on the northeast corner of Summit Avenue and Citrus Avenue. Tract No. 18825-1 is a single-family subdivision and has a total of 77 lots.

The street, storm drain, sewer, landscape, and signing & striping improvements for Tract No. 18825-1 are complete and acceptance by the City Council is required pursuant to Fontana Municipal Code Section 26-184(b). The streetlight improvements are installed by Southern California Edison (SCE) and will be an SCE facility, therefore, acceptance by the City Council is not required.

The street, storm drain, sewer, landscape, and signing & striping improvements have been completed to the satisfaction of the Department of Engineering. By accepting the improvements as complete, the City will be taking over the maintenance of these improvements. SCE will be taking over the maintenance of the streetlight improvements.

This action will also authorize the release of the Faithful Performance Bond, which was posted to guarantee performance of the Subdivision Agreement. It will also authorize the release of the Labor and Material Bond after six (6) months and the Warranty Bond after twelve (12) months, less the total of any claims received by this date. The street, streetlight, storm drain, sewer and signing & striping improvements have met all Conditions of Approval and the improvements were inspected by the City of Fontana Printed on 10/16/2024Page 1 of 2
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Agenda #: D. Category: Consent Calendar
improvements have met all Conditions of Approval and the improvements were inspected by the Department of Engineering.

FISCAL IMPACT:

Appropriate funding for the maintenance work is included in the FY 2024-25 budget under the Public Works & Engineering Department, Utilities and Streets Division and Park and Landscape Division.

MOTION:

Approve staff recommendation.

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65 TRACT MAP NO. 18825-1

CITY OF FONTANA, CALIFORNIA

VICINITY MAP
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RESOLUTION NO. 2024-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FONTANA ACCEPTING THE IN-TRACT SEWER SYSTEM FOR TRACT NO. 18825- 1 AS PART OF THE CITY’S SEWER SYSTEM.

WHEREAS, Section 23-388 of the Fontana Municipal C ode provides that each addition to or extension of the sewer systems shall be accepted by Resolution of the City Council of the City of Fontana (“City Council”); and

WHEREAS, this Resoltuion shall contain the terms of any special consideration which shall apply to the sewer so accepted; and

WHEREAS, City Council intends to accept the in-tract sewer system for Tract No. 18825-1 as apart of the City of Fontana sewer system; and

WHEREAS, there is no special consideration that shall apply to the sewer system accepted herein.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fontana, California, as follows:

Section 1. The above recitals are true and correct and are a substantive part of this Resolution.

Section 2. The City Council hereby accepts the in-tract sewer system for Tract No. 20018 as apart of the City of Fontana’s sewer system.

Section 3. The City Council hereby finds that this Resolution is exempt from further environmental review pursuant to the California Environmental Quality Act (Pub.

Resources Code, §§ 21000 et seq.) (“CEQA”) because, pursuant to section 15378(b)(4) of the California Code of Regulations, this Resolution does not constitute a “project” because it constitutes merely the establishment of governme nt fiscal activities that do not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. Therefore, City staff is hereby directed to file a Notice of Exemption with the County Clerk w ithin three (3) days following the adoption of this Resolution.

Section 4. If any section, subsection, paragraph, sentence, clause or phrase of this Resolution is declared by a court of competent jurisdiction to be unconstitutional or otherwise invalid, such decision shall not affect the validity of the remaining portions of this Resolution.

Section 5. The City Clerk shall certify to the adoption of this Resolution.

APPROVED AND ADOPTED this 22nd day of October, 2024.
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Resolution No. 2024-XXX
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READ AND APPROVED AS TO LEGAL FORM:

____________________________________
City Attorney

I, Germaine Key, City Clerk of the City of Fontana, and Ex-Officio Clerk of the City Council, do hereby certify that the foregoing resolution is the actual resolution duly and regularly adopted by the City Council at a regular meeting held on the 22nd 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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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3348 Agenda Date: 10/22/2024
Agenda #: E. Category: Consent Calendar
FROM:

Engineering
SUBJECT:

Final Acceptance of the Randall Avenue Street Improvement Project, from Catawba Avenue to Citrus Avenue
RECOMMENDATION:

Accept as complete the work performed by Matich Corporation for the Randall Avenue Street Improvement Project, from Catawba Avenue to Citrus Avenue (#37600048) 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.
· To invest in the City’s infrastructure (streets, sewers, parks, etc.) by focusing on relief of traffic congestion.
· To invest in the City’s infrastructure (streets, sewers, parks, etc.) by utilizing Measure-I Funds wisely.

DISCUSSION:

On February 27, 2024, the City Council authorized the award of a construction contract to the lowest responsible/responsive bidder, Matich Corporation, in the amount of $923,094.00 with a 10% contingency in the amount of $92,309.40 for the Randall Avenue Street Improvement Project (#37600048). The proposed improvements for the Randall Avenue Street Improvement Project consisted of full depth removal and replacement of the asphalt from Catawba Avenue to Citrus Avenue, new ADA curb ramps, and the addition of new sidewalks that didn’t previously exist. The project added new sidewalks near Citrus Elementary School, brought our ADA curb ramps up to code, and will ultimately prolong the life of the streets within the project limits.

Matich Corporation completed the project on August 14, 2024. The project was successfully completed for the final amount of $958,332.44, an increase of 3.8% from the original contract amount of $923,094.00 and $57,070.96 under the total authorized budget. All work has been completed to the satisfaction of the City of Fontana.

FISCAL IMPACT:

As part of the action to accept the construction of the Randall Avenue Street Improvement Project (#37600048) as complete, the City will take over the operation and maintenance of this public City of Fontana Printed on 10/16/2024Page 1 of 2
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File #: 21-3348 Agenda Date: 10/22/2024
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infrastructure. Appropriate funding for the maintenance work is included in the FY 2024-25 budget under the Public Works & Engineering Department, Utilities and Streets Division.

MOTION:

Approve staff recommendation.

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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3349 Agenda Date: 10/22/2024
Agenda #: F. Category: Consent Calendar
FROM:

Development Services
SUBJECT:

Repayment of loan issued from City of Fontana to Stage Red Enterprise RECOMMENDATION:

Approving the MOU for the repayment of a seven hundred fifty thousand dollar ($750,000) inter-city loan from the City of Fontana General Fund to the Stage Red Enterprise Fund.

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

DISCUSSION:

On March 12, 2024, the City Council approved a Five hundred-thousand-dollar ($500,000) loan from the General Fund to the Stage Red Account and on July 16, 2024, City Council approved an additional loan from the General Fund to the Stage Red Account for two hundred fifty thousand dollars ($250,000).

The City would like to enter into this Memorandum of Understanding to implement a repayment schedule for the Loan.

FISCAL IMPACT:

Repayment of the loan will commence five (5) years from the Effective Date and Stage Red will repay Seventy-five thousand dollars ($75,000) annually on or before June 30th, and will expire June 30, 2038.

MOTION:

Approve MOU
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MEMORANDUM OF UNDERSTANDING CONCERNING THE REPAYMENT

OF A LOAN ISSUED FROM THE CITY OF FONTANA GENERAL FUND ACCOUNT

TO THE STAGE RED ENTERPRISE ACCOUNT FOR THE OPERATIONS OF STAGE

RED FONTANA

This Memorandum of Understanding (“MOU”) is made and entered into this 22nd day of October 2024 (“Effective Date”) for the repayment of a seven hundred fifty thousand dollar ($750,000.00) inter-city loan (“Loan”) from the City of Fontana General Fund (“General Fund”) to the Stage Red Enterprise Fund (“Stage Red Account”).

RECITALS
WHEREAS, on the City of Fontana (“City”) acquired the Center Stage Theater at the location of 8463 Sierra Avenue; and
WHEREAS, on June 15, 2024, the City launched Stage Red Fontana (“Stage Red”) to invest in the City’s infrastructure by creating and promoting community through people, parks and programs; and
WHEREAS, on March 12, 2024 the Fontana City Council (“City Council”) approved a Five hundred thousand dollar ($500,000.00) loan from the General Fund to the Stage Red Account for operational purposes; and
WHEREAS, on July 16, 2024 City Council approved an additional loan from the General Fund to the Stage Red Account for two hundred fifty thousand dollars ($250,000) for operational purposes and consultant fees, for a total loan amount of seven hundred fifty thousand dollars ($750,000) (herein after “Loan”); and
WHEREAS, the City intends that repayment of the Loan commence five (5) years from the Effective Date; and
WHEREAS, the City desires to enter into this Memorandum Of Understanding (“MOU”) to implement a repayment schedule for the Loan.

TERMS
NOW, THEREFORE, the Parties agree as follows:

1. Incorporation of Recitals. The Recitals set forth above are true, correct and incorporated herein by this reference.

2. Purpose of MOU. The purpose of this MOU is to outline the terms and conditions of the five hundred thousand dollar ($500,000) loan issued on March 12, 2024 and the two hundred fifty thousand dollar ($250,000) loan issued on July 17, 2024, for a total amount of seven hundred 110
fifty thousand ($750,000.00), from the General Fund to the Stage Red Account for operational purposes.

3. Term. This MOU shall commence on the Effective Date and expire on June 30, 2038. The Term may be extended by written amendment.

4. Repayment Provisions. On or before June 30, 2038, the Stage Red Account shall fully repay the Loan by tendering to the General fund the sum of seven hundred and fifty thousand dollars ($750,000.00), which shall be delivered in the form of ten (10) cashier’s checks made payable to City of Fontana- General fund in accordance with the following payment schedule:

On or before June 30, 2029 Payment due: $75,000.00
On or before June 30, 2030 Payment due: $75,000.00
On or before June 30, 2031 Payment due: $75,000.00
On or before June 30, 2032 Payment due: $75,000.00
On or before June 30, 2033 Payment due: $75,000.00
On or before June 30, 2034 Payment due: $75,000.00
On or before June 30, 2035 Payment due: $75,000.00
On or before June 30, 2036 Payment due: $75,000.00
On or before June 30, 2037 Payment due: $75,000.00
On or before June 30, 2038 Payment due: $75,000.00

5. Acknowledgement of Payment in Full. When the sum of seven hundred fifty thousand dollars ($750,000.00) is paid in accordance with Paragraph 4, the Loan will be fully repaid and no other sum for interest, penalties, fees or any other purposes will be due.

6. Deferment. Repayment terms as described in Paragraph 4, may be deferred to a later date to if such deferment is made in writing on or before the corresponding scheduled payment date provided.

7. Modification. The terms of this MOU may be modified if made in writing. No oral understanding or agreement not incorporated herein shall be binding.

8. Entirety of Contract. This MOU constitutes the entire agreement relating to the subject of this MOU and supersedes all previous agreements, promises, representations, understandings, whether written or oral, with respect to the subject matter thereof. 111

9. Severability. If any provision of this agreement is held to be illegal, invalid, or unenforceable, that provision shall be fully severable, and this agreement shall be construed and enforced as if the illegal, invalid, or unenforceable provision were never a part of the agreement; the remaining provisions shall remain in full force and effect and shall not be affected by the illegal, invalid, or unenforceable provision or by its severance; and in lieu of such illegal, invalid, or unenforceable provision, there shall be added automatically as part of this agreement, a provision as similar in its terms to the illegal, invalid, or unenforceable provision as may be possible and be legal, valid, and enforceable.

[SIGNATURES ON NEXT PAGE]

[SIGNATURE PAGE TO AGREEMENT]

CITY OF FONTANA GENERAL FUND

_________________________________
Jessica Brown
Chief Financial Office
Finance

STAGE RED ENTERPRISE FUND

__________________________________
Phillip Burum
Deputy City Manager
Development Services

CITY OF FONTANA

_________________________________
Matthew Ballantyne
City Manager

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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3368 Agenda Date: 10/22/2024
Agenda #: G. Category: Consent Calendar
FROM:

Finance
SUBJECT:

Authorization to Share Data with California Franchise Tax Board RECOMMENDATION:

Adopt Resolution No. 2024-116 of the City Council of the City of Fontana authorizing the City Manager to execute an agreement between the City of Fontana and the State of California Franchise Tax Board in the Local Government Sharing Program.

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

DISCUSSION:

The City Business Tax Program assists both cities and the State by finding revenue that may otherwise go undetected. Many cities have implemented this program and discovered uncollected revenue through the use of Franchise Tax Board (FTB) data.

This agreement will allow the FTB and the City of Fontana to exchange data at no cost to either party. This data exchange can aid in identifying businesses and self-employed individuals that have an unmet local or state filing requirement.

FISCAL IMPACT:

There is no cost to participate in this program, only a non-financial agreement to provide data. This action may potentially increase business license revenue.

MOTION:

Approve staff recommendation.

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RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FONTANA

AUTHORIZING THE CITY MANAGER TO ENTER INTO A STANDARD

AGREEMENT BETWEEN THE STATE OF CALIFORNIA FRANCHISE
TAC BOARD AND THE CITY AUTHORIZING THE CITY’S

PARTICIPATION IN THE LOCAL GOVERNMENT SHARING PROGRAM

WHEREAS, the City of Fontana administers a Business Tax Program; and

WHEREAS, the Franchise Tax Board through the Local Government Sharing Program will enhance the City of Fontana Business License Tax Program; and

WHEREAS, the information from the Franchise Tax Board will permit the City of Fontana to identify potential unrealized Business License Tax revenue from the businesses that are not in compliance with Chapter 15 of the Fontana Municipal Code.

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

That the City Manager is authorized to execute the necessary contract with the Franchise Tax Board Agreement #107999 to enable the City of Fontana to participate in the Local Government Sharing Program.

APPROVED AND ADOPTED this 12th day of November 2024.

READ AND APPROVED AS TO LEGAL FORM:

_____________________________________
City Attorney

I, Tonia Lewis, City Clerk of the City of Fontana, and Ex-Officio Clerk of the City Council do hereby certify that the foregoing resolution is the actual resolution duly and regularly adopted by the City Council at a regular meeting on the 12th day of November, 2024 by the following vote to-wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

_____________________________________
City Clerk of the City of Fontana
115

_____________________________________
Mayor of the City of Fontana

ATTEST:

_____________________________________
City Clerk

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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3371 Agenda Date: 10/22/2024
Agenda #: H. Category: Consent Calendar
FROM:

Community Services
SUBJECT:

Accept Donation from San Bernardino County Second District Supervisor, Jesse Armendarez (2024 Veterans Day Celebration)
RECOMMENDATION:

Accept donation from San Bernardino County Second District Supervisor, Jesse Armendarez in the amount of $1,000 for use towards the 2024 Veterans Day Celebration.

COUNCIL GOALS:
· Operate in a businesslike manner by creating a memorable customer experience with every interaction.
· Increase citizen involvement by seeking community input. · Invest in the City’s infrastructure (streets, sewers, parks, etc.) by creating and promoting community through people, parks, and programs.

DISCUSSION:

The Community Services Department receives donations and sponsorships from many local community companies to help support and enhance various programs, activities, and events. San Bernardino County Second District Supervisor, Jesse Armendarez donated $1,000 towards the 2024 Veterans Day Celebration and is recognized as a Presenting Title Sponsor of this event.

FISCAL IMPACT:

The $1,000 was deposited into account 101.3520 for use in offsetting costs for the 2024 Veterans Day Celebration.

MOTION:

Approve staff recommendation.

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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3372 Agenda Date: 10/22/2024
Agenda #: I. Category: Consent Calendar
FROM:

Community Services
SUBJECT:

Accept Donation from Fontana Unified School Board Member, Adam Perez (2024 Veterans Day Celebration)
RECOMMENDATION:

Accept donation from Fontana School Board Member, Adam Perez in the amount of $1,000.00 for use towards the 2024 Veterans Day Celebration.

COUNCIL GOALS:
· Operate in a businesslike manner by creating a memorable customer experience with every interaction.
· Increase citizen involvement by seeking community input. · Invest in the City’s infrastructure (streets, sewers, parks, etc.) by creating and promoting community through people, parks, and programs.

DISCUSSION:

The Community Services Department receives donations and sponsorships form many local community companies to help support and enhance various programs, activities, and events.

Fontana School Board Member, Adam Perez donated $1,000.00 towards the 2024 Veterans Day Celebration and is recognized as a Presenting Title Sponsor of this event.

FISCAL IMPACT:

The $1,000 was deposited into account 101.3520 for use in offsetting costs for the 2024 Veterans Day Celebration.

MOTION:

Approve staff recommendation.

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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3380 Agenda Date: 10/22/2024
Agenda #: J. Category: Consent Calendar
FROM:

Administrative Services
SUBJECT:

Proposed Business License Penalty Fee Waiver for Crown Cedar Inc.

RECOMMENDATION:

Consider proposal to waive delinquency fee
COUNCIL GOALS:
· Operate in a businesslike manner by ensuring that the public debate is based on accurate information.
· Operate in a businesslike manner by correcting problems immediately.

DISCUSSION:

The City has engaged HDL to perform an audit of businesses operating in Fontana and verify these businesses are compliant on any required business licenses. An element of this audit is to notify any non-compliant businesses of the business license required and initiate collection of the necessary business license fees.

When a business is identified as being non-compliant for business license, they are requested to provide operating revenue for the prior 4 years. The business will then be assessed the appropriate licensing fees for that period of time. If, once notified and invoiced, the business chooses to remain non-compliant, the business is allowed a 30-day grace period to cure any outstanding license fee’s due the city. After 30 days the business will be assessed a penalty on their outstanding balance.

On 5/31/2023 Fontana based business Crown Cedar Inc. was identified by HDL as having rental income and was notified they were out of compliance with the city’s business license requirements.

The business was notified again of this non-compliance on 7/13/2023 on 9/8/2023. On 9/12/2023 a representative of the business emailed HDL stating that Crown Cedar Inc. was owned by the same owner as Crown Technical Systems and did not feel an additional business license was required.

The representative was notified that the income for Crown Cedar Inc. was rental income meaning it was operating in a different business category as Crown Technical Systems and therefore was required to apply for a separate business license.

Additional notifications were sent to the business between September 2023 and April 2024 - 3 penalty waiver notifications and six compliance notifications.

Once communication was established with the business the rental income for Crown Cedar Inc. was verified. Based on the declared revenue, cumulative business license fees for the prior 4 years were City of Fontana Printed on 10/17/2024Page 1 of 2
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File #: 21-3380 Agenda Date: 10/22/2024
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calculated at $7,742. Per Fontana Municipal Code Section 15-45. - Delinquency an additional penalty fee in the amount of $6,748.50 was assessed.

Per Fontana Municipal Code Section 15-40(h) extension of time for filing statement or application if assessed business license fees are paid within 30 days of issuance of the invoice the city will waive the penalty. Crown Cedar Inc. was initially invoiced on 4/4/2024. Calls were made to the business on 4/11/2024, 4/12/2024, 5/20/2024 and 5/23/2024 to ensure they were aware of the invoice. The calls were not answered, and voice mails were left.

The business owner sent payment on 5/30/2024 for the delinquent business license fees in the amount of $7,742, 56 days after the first invoice was sent.

Since the payment was not received within the 30-day grace period the penalty fee was assessed and the business was notified.

The business has requested a penalty fee waiver. Per Fontana Municipal Code, staff does not have authority to waive penalty fees for late payment on business licenses.

The fee paid to HDL for business license fee collection services is 40% of the invoiced amount.

Therefore, HDL’s rate for the delinquent business license fee of $7,742 was $3,096.80 which was taken out of the payment made by Crown Cedar Inc. HDL’s rate for the penalty fee of $6,748.50 is $2,699.40. If the penalty fee is waived and not collected from the business, then the city will be paying the HDL fee from General Fund.

FISCAL IMPACT:

Loss of fees due HDL for the unrecovered penalty fee in the amount of $2,699.40.

MOTION:

Approve request to waive delinquency fee
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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3382 Agenda Date: 10/22/2024
Agenda #: K. Category: Consent Calendar
FROM:

Development Services
SUBJECT:

A Sum in Lieu of Utility Undergrounding Deferral and Lien Agreement and Sum in Lieu of Utility Undergrounding Lien with Aman Brar for Assessor Parcel Number 0236-052-47.

RECOMMENDATION:

1. Staff recommends that the City Council approve the Sum in Lieu of Utility Undergrounding Deferral and Lien Agreement and Sum in Lieu of Utility Undergrounding Lien with Aman Brar for Assessor Parcel Number 0236-052-47.

2. Authorize the City Manager, or his designees, to sign and approve the Sum in Lieu of Utility Undergrounding Deferral and Lien Agreement and Sum in Lieu of Utility Undergrounding Lien with Aman Brar for Assessor Parcel Number 0236-052-47.

COUNCIL GOALS:
· Promote economic development by establishing a quick, consistent development process. · Practice sound fiscal management by developing long-term funding and debt management plans.
· Invest in the City’s infrastructure (streets, sewers, parks, etc.) by maintaining and improving the city's existing infrastructure.

DISCUSSION:

Fontana Municipal Code (“FMC”) Section 27-52 requires that an applicant applying for a tentative tract map, permit for construction of any new structure or building on undeveloped property, or a permit for substantial rehabilitation of any existing building on an existing lot of record place underground all new, upgraded, or existing on-site or off-site utilities. However, Section 27-54 permits the City’s Community Development Director (now serving as the Development Services Director) to allow an applicant to pay a sum in lieu of undergrounding off-site utilities if the Community Development Director determines that it would be impracticable, infeasible or disproportionately financially burdensome to require the undergrounding of on-site or off-site utilities. Here, the City’s Community Development Director has determined that it would be impracticable, infeasible and disproportionally financially burdensome to require Aman Brar to underground on-site/off-site utilities at the location of 14562 Slover Avenue, Assessor Parcel Number 0236-052-47, and the parties wish to enter into a sum in lieu of utility undergrounding deferral and lien agreement to defer payment and the City will provide a lien against the associated property as security.

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File #: 21-3382 Agenda Date: 10/22/2024
Agenda #: K. Category: Consent Calendar
FISCAL IMPACT:

The fiscal impact associated with the Sum in Lieu of Utility Undergrounding Deferral and Lien Agreement is an increase in revenue of approximately $91,200.00 over the term of the agreement.

MOTION:

Approve the Sum in Lieu of Utility Undergrounding Deferral and Lien Agreement and Sum in Lieu of Utility Undergrounding Lien.

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RESOLUTION NO. 24-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

FONTANA APPROVING A SUM IN LIEU OF UTILITY

UNDERGROUNDING DEFERRAL AND LIEN AGREEMENT

AND SUM IN LIEU OF UNDERGROUNDING LIEN WITH

PINNACLE REALTY & HO LDINGS, LLC FOR ASSESSOR
PARCEL NUMBER 0236-052-47.

WHEREAS, Pinnacle Realty & H oldings, LLC (“Owner”) is the fee owner of certain real property located a t 14562 Slover Avenue , Fontana, CA, Assessor Parcel Number 0236-052-47, in the County of San Bernardino, State of California (“Property”); and
WHEREAS, Section 27 -52 of the Fontana Municipal Code (“FMC”) requires that the Owner place underground of the Property all new, upgraded, or existing on-site or off-site utilities, all as more specifically described in Article 3 of Chapter 27 of the FMC; and
WHEREAS, Section 27 -54 of the FMC permits the City’s Community Development Director to allow an applicant to pay a sum in lieu of undergrounding off-site utilities if it is determined that it would be impracticable, infeasible or disproportionat ely financially burdensome to require th e undergrounding of off-site utilities pursuant to Section 27-52; and WHEREAS, Section 27 -54 of the FMC requires that the amount and time of payment shall be agreed upon in writing by the Parties and the City may require that the Owner provide security for the Owner’s payment in the form of an improvement bond, letter of credit and a lien against the Property; and WHEREAS, the required sum in lieu of undergrounding the utilities due and payable by the Owner represents a proportionate and fair share of cost s attributable to the Property, and
WHEREAS, the Owner wishes to enter into a Sum in Lieu of Utility Undergrounding Deferral and Lien Agreement with the City to defer payment of the sum in lieu of undergrounding the u tilities as permitted under Section 27 -54 of the FMC and the City will provide a lien against the Property as securi ty as further described herein.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Fontana resolves as follows:

Section 1. Recitals. The above recitals are true and correct and are incorporated herein by this reference.

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Section 2. CEQA. The approval of the draft agreement through this Resolution does not commit the City to any action that may have a significant effect on the environment. As a result, such action does not constitute a project subject to the requirements of the California Environmental Quality Act. The City Clerk, acting on behalf of the City, is authorized and directed to file a Notice of Exemption with the a ppropriate official of the County of Sa n Bernardino, California, within five (5) days following the date of adoption of this Resolution.

Section 3. Approval. The City Council approves the Sum in Lieu of Utility Undergrounding Deferral and Lien Agreement and Sum in Lieu of Utility Lien within the form attached hereto as Exhibit A and incorporated herein by reference, and authorizes the City Manager to sign such Agreement and Lien on behalf of the City.

Section 4. Effective Date. The City Clerk shall certify to the adoption of this Resolution. This Resolution shall become effective upon the passage by the City Council.

Section 5. Severability. If any provision of this Resolution or the application of any such provision to any person or circumstance is hel d invalid, such invalidity shall not a ffect other provisions or applications of this Resolution that can be given effect without the invalid provision or application.

APPROVED AND ADOPTED this 22nd day of October, 2024.

READ AND APPROVED AS TO LEGAL FORM:

_____________________________
City Attorney
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I, Germaine McClellan Key, City Clerk of the City of Fontana, and Ex-Officio Clerk of the City Council of the City of Fontana, hereby certify that the foregoing Resolution is the actual resolution that was duly and regularly adopted by the City Council of the City of Fontana at a regular meeting on the 23rd day of July, 2024, by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

______________________________
Germaine McClellan Key, City Clerk

______________________________
Acquanetta Warren, Mayor

ATTEST:

______________________________
Germaine McClellan Key, City Clerk

129

EXHIBIT A

SUM IN LIEU OF UTILITY UNDERGROUNDING DEFERRAL

AND LIEN AGREEMENT AND SUM IN LIEU OF

UNDERGROUNDING LIEN WITH PINNACLE REALTY &
HOLDINGS, LLC FOR ASSESSOR PARCEL NUMBER 0236-
052-47

[ATTACHED]
130
Recording Requested by

City of Fontana
8353 Sierra Way
Fontana, CA 92335

After Recording Return to

City Attorney-City of Fontana
Best Best & Krieger, LLP
2855 E. Guasti Rd., Suite 400
Ontario, CA 91761

(Space above this line for recorder's use)

Exempt from fees pursuant to
Government Code Sections 6103 and 27388.1

APN:0236-052-47

SUM IN LIEU OF UTILITY UNDERGROUNDING LIEN

City of Fontana (“Claimant”), with its principal address at 8353 Sierra Avenue, City of Fontana CA, 92335, hereby claims a sum in lieu of utility undergrounding lien on the real property located at 14562 Slover Avenue, Fontana, California, identified with Assessor’s Parcel Number 0236- 052-47 (“Property”), owned or reputed to be owned by Pinnacle Realty & Holdings, LLC , (“Owner” of the Property), for the sum of NINETY ONE THOUSAND TWO HUNDRED DOLLARS AND ZERO CENTS ( $91,200.00), which is due and unpaid (after deducting al l just credits and offsets) on th at certain Sum in Lieu of Utility Undergrounding Deferral and Lien Agreement dated _____________ between Claimant and Owner pursuant to Fontana Municipal Code (“FMC”) Section 27 -54 where the Claimant allowed such agreement in lieu of undergrounding off-site utilities at the Property as required under FMC Section 27-52.

Date: ________________

_________________________________
By: Matthew Ballantyne
Its: City Manager

[Continue with required notice of lien]

SUM IN LIEU OF UTILITY UNDERGROUNDING LIEN: ATTENTION!
131

On the recordation of the enclosed SUM IN LIEU OF UTILITY UNDERGROUNDING LIEN with the county recorder's office of the county where the property is located, your property is subject to the filing of a legal action seeking a court-ordered foreclosure sale of the real property on which the lien has been recorded. That legal action must be filed with the court no later than 90 days after the date the mechanics lien is recorded.

You are receiving this notice because it is the claimant’s intention to file a lien foreclosure action against your property. The foreclosure action will seek a sale of your property in order to pay the remaining balance of the Sum in Lieu of Utility Undergrounding Deferral and Lien Agreement for your property. This may affect your ability to borrow against, refinance, or sell the property until the lien is released.

VERIFICATION

I am the claimant authorized to make this verification and the foregoing Claim of Lien is true of my own knowledge, except for matters stated in it on the basis of my information or belief, and as to those matters I believe it to be true.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Date: ________________

_______________________________

City of Fontana
8353 Sierra Avenue
Fontana, CA 92335

132

PROOF OF SERVICE

On ______________, 20__, the undersigned declarant served copies of the above SUM IN LIEU OF UTILITY UNDERGROUNDING LIEN on the _ _[owner/reputed owner]_ _ named below by _ _[registered mail/certified mail/first-class mail]_ _ at the addresses shown below:

Pinnacle Realty & Holdings, LLC
14562 Slover Avenue
Fontana, CA 92337

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Date:
[Signature]
[Typed Name]

133

1 CITY OF FONTANA

SUM IN LIEU OF UTILITY UNDERGROUNDING

DEFERRAL AND LIEN AGREEMENT

This SUM IN LIEU OF UTILITY UNDERGROUNDING DEFERRAL AND LIEN AGREEMENT (“Agreement”) is entered into this _____ day of ___________, 2024 (“Effective Date”), by and between the City of Fontana, a California municipal corporation (the “City”), and Pinnacle Realty & Holding, LLC (“Owner”). The City and Owner may sometimes hereinafter to be referred to as a “Party” or collectively as the “Parties.”

RECITALS
WHEREAS, O wner hereby represents an d warrants to the City that Owner is the fee owner of certain real property located at 14562 Slover Avenue , Fontana, CA 92337, Assessor Parcel Number 0236-052-47, in the County of San Bernardino , State of California, and more fully describe d in EXHIBIT A attached hereto and incorporated herein by reference (“Property”);
WHEREAS, Section 27 -52 of the City’s Municipal Code requires that the Owner place underground of the Property all new, upgraded, or existing on-site or off-site utilities, all as more specifically described in Article 3 of Chapter 27 of the City’s Municipal Code; WHEREAS, Section 27-54 of the City’s Municipal Code permits the City’s Community Development Director to allow an applicant to pay a sum in lieu of undergrounding o ff-site utilities if it is determined that it would be impracticable, infeasible or disproportionately financially burdensome to require the undergrounding of off-site utilities pursuant to Section 27 - 52;
WHEREAS, Section 27-54 of the City’s Municipal Co de requires tha t the amount and time of payment shall be agreed upon in writing by the Parties and the City may require that the Owner provide security for the Owner’s payment in the form of an improvement bond, letter of credit and a lien against the Property;
WHEREAS, the required sum in lieu of undergrounding the utilities due and payable by the Owner represents a proportionate and fair share of costs attributable to the Property, and WHEREAS, the Owner wishes to enter into this Agreement to defer payment of the sum in lieu of undergrounding the utilities as permitted under Section 2 7-54 of the City’s Municipal Code and the City will provide a lien against the Property as security as further described herein.

TERMS
NOW, THEREFORE, in consideration of the above fact s and for the covenants and agreements contained herein, the City and Owner agree as follows:

134

2 1. No Effect Upon Remaining Conditions . This Agreement is intended to defer Owner’s obligation with respect to the utility undergrounding in lieu of sum. This Ag reement does not alter, amend or modify any provision of the City’s Municipal Code or other of the conditions of approval, environmental mitigation measures, or other obligation of the Owner with respect to any permit or entitlement with r espect to the Pro perty. The Owner hereby reaffirms its consent to and agreement with each and every condition on the Property, all requirements of the City’s Municipal Code, and all other permits and entitlements relative to the Property.

2. Amount. Owner shall be obligated to pay to the City, an amount approximating the Owner’s proportionate share of the reasonably estimated costs of undergrounding utilities in the general area surrounding the Property. Such amount is hereby agreed and acknowledged by the parties to be NINETY ONE THOUSAND TWO HUNDRED DOLLARS AND ZERO CENTS ($91,200.00).

3. Payment Terms. Owner shall pa y to the City the Sum Amount in Lieu of Undergrounding the Utilities (“In Lieu of Sum”), in four (4) equal semiyearly installments in the amount of TWENTY TWO THOUSAND EIGHT HUNDRED DOLLARS AND NO CENTS ($22,800.00) equaling a total amount of NINETY ONE THOUSAND TWO HUNDRED DOLLARS AND ZERO CENTS ($91,200.00), whereby such payments shall be due and payable one hundred a nd eighty (180) calendar d ays following the Effective Date and each subsequent payment due and payable on each one hundred and eightieth day (180th) anniversary thereafter until paid in full (" Semi-Annual Installments") without further notice, demand or no tice by the City. The last Semi-Annual Installment shall be increased or decreased, as necessary, to effect payment in full of all outstanding amounts owing to the City pursuant to this Agreement. All payments shall be submitted to The City of Fontana , care of the Development Ser vices Organization, finance division.

In the event the Semi-Annual Installments are not paid in a timely manner, the City shall have the right to elect, at the City's sole discretion, to either : (i) place all outstanding amounts owing to the City pursuant to this Agreement on the property tax roll for the Property, or (ii) demand immediate payment in full by Owner of all outstanding amounts owing to the City pursuant to this Agreement, which Owner shall immediately pay in full . In the event any outstanding amounts owing to the City pursuant to this Agreement are placed on the property tax roll for the Property, then Owner shall pay to the City: (i) a one-time set up fee therefor in the amount of Two Hundred Fifty Dollars and No Cents ($250.00) ("Set-Up Fe e"); and (ii) a monthly administrative charge therefor in the amount of Twenty -Five Dollars and No Cents ($25.00) ("Administrative Charges").

4. Lien and Recordation of Lien Notice. Owner hereby authorizes the City to record a valid and effective lien instrument therefor against the Property in the Official Records of the County of San Bernardino, California in the amount of all outstanding amounts owing to the City pursuant to this Agreement, including, without limitation, interest accruing thereon. The City's Lien shall occupy a priority position against the Property senior to all other non -statutory monetary liens and encumbrances against the Property. The lien placed pursuant to this 135

3 Agreement shall run with the Property and the requirements imposed by this Agreement shall bind the successors and assigns of the Owner until satisfied in full.

5. Approval by Lienholders. Owner agrees that it shall not be eligible for deferment of the In Lieu of Sum under this Agreement unless and until the Owner obtains the consent of any and all lienholder(s) (existing or future) of the Property . Such consent shall be manifested by a recorded instrument subordinating the lienholder(s) lien(s) to that of the City for any outstanding amounts owed under this Agreement.

6. Release of Lien. Upon payment in full of all amounts due and payable to the City pursuant to this Agreement, the City will file a release document in the Official Records of the County of San Bernardino , California, releasing the City's Lien placed against th e Property pursuant to this Agreement, if necessary. Owner shall pay all fees, if any, charged by the County Recorder of the County of San Bernardino, California for recordation of such release document.

7. Sale of Property . All outstanding amounts owing to the City pursuant to this Agreement shall become immediately due and pa yable, without demand or other action by the City, upon the commencement of any sale, refinancing of a mortgage and/or ownership transfer, whether voluntary or involuntary, respectin g the Property. In the event Owner fails to pay such amounts prior to the opening of an escrow account in connection with any such sale, refinancing of a mortgage and/or ownership transfer, such outstanding amounts shall then be paid to the City from funds otherwise due to Owner from the escrow account prior to the close of suc h escrow account.

8. Form of Payments and Application . All amounts due and payable to the City pursuant to this Agreement: (i) are payable in lawful money of the United States of America; and (ii) excepting for the Inspection Fee, the Set-Up Fee and the A dministrative Charge(s), shall be applied first to accrued interest pursuant to this Agreement. All amounts due and payable to the City pursuant to this Agreement may be prepaid in full at any time without penalty.

9. Executory Acts . The City and Owner sh all execute such instruments and documents and diligently undertake such actions as may be required to carry out the terms and provisions of this Agreement.

10. Time of Essence . Time i s of the essence for each and every term, condition, obligation and provision of this Agreement.

11. Captions. Any captions to, or headings of, the paragraphs of this Agreement are solely for the convenience of the parties hereto, are not a part of this Agr eement, and shall not be used for the interpretation or determination of the validity of this Agreement or any provision hereof.

12. Notices. Notices required or permitted under this Agreement shall be sent to the addresses identified below. Notices shall be deemed received on the third business day following deposit in the United States Mail, postage prepaid, or upon actual receipt if the method of delivery is facsimile, messenger, or overnight delivery service such as Federal Express.

Notices shall be addressed as follows:
136

4 If to the City: If to Owner:

City of Fontana Pinnacle Realty & Holdings, LLC
8353 Sierra Avenue 12223 Highland Avenue, Suite 106-787 Fontana, California 92335 Rancho Cucamonga, CA 91739
Attention: City Manager Attn: Aman Brar

13. Waiver. The waiver of failure to enforce any provision of this Agreement sh all not operate as a waiver of any future breach of any such provision or any other provision hereof.

14. Severability. If any section, term, clause or provision of this Agreem ent is found by a court of competent jurisdiction to be invalid or unenforceable, then that invalid portion shall be deemed severed from this Agreement and the remainder of this Agreement may be enforced in accordance with its terms.

15. Governing Law. Any legal action or proceeding concerning this Agreement shall be filed and prosecuted in the appropriate California state court in the County of San Bernardino, California. Both Parties hereto irrevocably consent to the personal jurisdiction of that court. The City and Owner each hereby expressly waive the benefit of any provision of feder al or state law or judicial decision providing for the filing, removal, or change of venue to any other court or jurisdiction, including, without implied limitation, federal district court, due to any diversity of citizenship between the City and Owner, du e to the fact that either the City is a party to such action or proceeding or due to the fact that a federal question or federal right is involved or alleged to be involved. Without limiting the generality of the foregoing, Owner and the City specifically waive any rights provided to it pursuant to California Code of Civil Procedure Section 394. Owner acknowledges that the provisions of this Section 18 are material consideration to the City for its entry into this Agreement, in that the City will avoid t he potential cost, expense and inconvenience of litigating in a distant forum.

16. Attorneys’ Fees and Costs . If either party commences an action against the other party, either legal or administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such action shall be entitled to have and recover from the losing party reasonable attorney’s fees and all other costs of such action.

17. Entire Agreement. This Agreement supercedes any and all prior agreements and communications, oral or written, and contains the entire agreement between the City and Owner as to the subject matter hereof.

18. Modification. The terms of this Agreement may not b e modified or amended except by an instrument in writing executed by both the City and Owner. [signatures on following page]
137

5 SIGNATURE PAGE TO

SUM IN LIEU OF UTILITY UNDERGROUNDING

DEFERRAL AND LIEN AGREEMENT

IN WITNESS WHEREOF, the City and Owner ha ve caused this Agreement to be executed in the County of San Bernardino as of the date first written above.

CITY:

CITY OF FONTANA,
a California municipal corporation

By: ___________________________________
Matthew Ballantyne, City Manager

OWNER:

_________________________________________
[Printed Name]

ATTEST:

By:

Germaine Key, City Clerk

APPROVED AS TO FORM:

Best Best & Krieger, LLP

By:

Ruben Duran, City Attorney

(Note: Please attach a copy of the County of San Bernardino’s Tax Bill for the current year)

138

EXHIBIT A

EXHIBIT A TO

UTILITY UNDERGROUNDING

DEFERRAL AND LIEN AGREEMENT

Legal Description of Property
APN: 0236-052-47

139
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3383 Agenda Date: 10/22/2024
Agenda #: L. Category: Consent Calendar
FROM:

Development Services
SUBJECT:

A Sum in Lieu of Utility Undergrounding Deferral and Lien Agreement and Sum in Lieu of Utility Undergrounding Lien with Jadel Enterprises, LLC for Assessor Parcel Number 0236-081-48.

RECOMMENDATION:

1. Staff recommends that the City Council approve the Sum in Lieu of Utility Undergrounding Deferral and Lien Agreement and Sum in Lieu of Utility Undergrounding Lien with Jadel Enterprises, LLC for Assessor Parcel Number 0236-081-48.

2. Authorize the City Manager, or his designees, to sign and approve the Sum in Lieu of Utility Undergrounding Deferral and Lien Agreement and Sum in Lieu of Utility Undergrounding Lien with Jadel Enterprises, LLC for Assessor Parcel Number 0236-081-48.

COUNCIL GOALS:
· Promote economic development by establishing a quick, consistent development process. · Practice sound fiscal management by developing long-term funding and debt management plans.
· Invest in the City’s infrastructure (streets, sewers, parks, etc.) by maintaining and improving the city's existing infrastructure.

DISCUSSION:

Fontana Municipal Code (“FMC”) Section 27-52 requires that an applicant applying for a tentative tract map, permit for construction of any new structure or building on undeveloped property, or a permit for substantial rehabilitation of any existing building on an existing lot of record place underground all new, upgraded, or existing on-site or off-site utilities. However, Section 27-54 permits the City’s Community Development Director (now serving as the Development Services Director) to allow an applicant to pay a sum in lieu of undergrounding off-site utilities if the Community Development Director determines that it would be impracticable, infeasible or disproportionately financially burdensome to require the undergrounding of on-site or off-site utilities. Here, the City’s Community Development Director has determined that it would be impracticable, infeasible and disproportionally financially burdensome to require Jadel Enterprises, LLC to underground on-site/off- site utilities at the location of 14041 Slover Avenue, Fontana, CA, 92337, Assessor Parcel Number 0236-081-48, and the parties wish to enter into a sum in lieu of utility undergrounding deferral and lien agreement to defer payment, and the City will provide a lien against the associated property as security.

City of Fontana Printed on 10/17/2024Page 1 of 2
powered by Legistar™
140
File #: 21-3383 Agenda Date: 10/22/2024
Agenda #: L. Category: Consent Calendar
FISCAL IMPACT:

The fiscal impact associated with the Sum in Lieu of Utility Undergrounding Deferral and Lien Agreement is an increase in revenue of approximately $185,160.00 over the term of the agreement.

MOTION:

Approve the Sum in Lieu of Utility Undergrounding Deferral and Lien Agreement.

City of Fontana Printed on 10/17/2024Page 2 of 2
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141
RESOLUTION NO. 24-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

FONTANA APPROVING A SUM IN LIEU OF UTILITY

UNDERGROUNDING DEFERRAL AND LIEN AGREEMENT AND

SUM IN LIEU OF UNDERGROUNDING LIEN WITH JADEL
ENTERPRISES, LLC FOR ASSESSOR PARCEL NUMBER 0236 -
081-48.

WHEREAS, Jadel Enterprises, LLC (“Owner”) is the fee owner of certain real property located at 14041 Slover Avenue, Fontana, CA 92337, Assessor Parcel Number 0236-081-48, in the County of San Bernardino, State of California (“Property”); and WHEREAS, Section 27 -52 of the Fontana Municipal Code (“FMC”) requires that the Owner place underground of the Property all new, upgraded, or existing on-site or off- site utilities, all as more specifically described in Article 3 of Chapter 27 of the FMC; and WHEREAS, Section 27-54 of the FMC permits the City’s Community Development Director to allow an applicant to pay a sum in lieu of undergrounding off-site utilities if it is determined that it would be impracticable, infeasibl e or disproportionately financially burdensome to require the undergrounding of off -site utilities pursuant to Section 27-52; and
WHEREAS, Section 27 -54 of the FMC requires that the amount and time of payment shall be agreed upon in writing by the Parties and the City may require that the Owner provide security for the Owner’s payment in the form of an improvement bond, letter of credit and a lien against the Property; and
WHEREAS, the required sum in lieu of undergrounding the utilities due and payable by the Owner represents a proportionate and fair share of costs attributable to the Property, and
WHEREAS, the Owner wishes to enter into a Sum in Lieu of Utility Undergrounding Deferral and Lien Agreement with the City to defer payment of the sum in lieu of undergrounding the utilities as permitted under Section 27-54 of the FMC and the City will provide a lien against the Property as security as further described herein.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Fontana resolves as follows:

Section 1. Recitals. The above recitals are true and correct and are incorporated herein by this reference.

Section 2. CEQA. The approval of the draft agreement through this Resolution does not commit the City to any action that may have a significant effect on the environment. As a result, such action does not constitute a project subject to the 142
requirements of the California Environmental Quality Act. The City Clerk, acting on behalf of the City, is authorized and directed to file a Notice of Exemption with the appropriate official of the County of San Bernardino, California, within five (5) days following the date of adoption of this Resolution.

Section 3. Approval. The City Council approves the Sum in Lieu of Utility Undergrounding Deferral and Lien Agreement and Sum in Lieu of Utility Lien with Jadel Enterprises, LLC in the form attached hereto as Exhibit A and incorporated herein by reference, and authorizes the City Manager to sign such Agreement on behalf of the City.

Section 4. Effective Date . The City Clerk shall certify to the adoption of this Resolution. This Resolution shall become effective upon the passage by the City Council.

Section 5. 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.

APPROVED AND ADOPTED this 22nd day of October, 2024.

READ AND APPROVED AS TO LEGAL FORM:

_____________________________
City Attorney

143
I, Germaine McClellan Key, City Clerk of the City of Fontana, and Ex -Officio Clerk of the City Council of the City of Fontana, hereby certify that the foregoing Resolution is the actual resolution that was duly and regularly adopted by the City Council of the City of Fontana at a regular meeting on the 23rd day of July, 2024, by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

______________________________
Germaine McClellan Key, City Clerk

______________________________
Acquanetta Warren, Mayor

ATTEST:

______________________________
Germaine McClellan Key, City Clerk

144

EXHIBIT A

SUM IN LIEU OF UTILITY UNDERGROUNDING DEFERRAL AND

LIEN AGREEMENT AND SUM IN LIEU OF UNDERGROUNDING

LIEN WITH JADEL ENTERPRISES FOR ASSESSOR PARCEL
NUMBER 0236-081-48

[ATTACHED]
145
Recording Requested by:

City of Fontana
8353 Sierra Way
Fontana, CA 92335

After Recording Return to:

City Attorney-City of Fontana
Best Best & Krieger, LLP
2855 E. Guasti Rd., Suite 400
Ontario, CA 91761

(Space above this line for recorder's use)

Exempt from fees pursuant to
Government Code Sections 6103 and 27388.1

APN:0236-081-48

SUM IN LIEU OF UTILITY UNDERGROUNDING LIEN

City of Fontana (“Claimant”), with its principal address at 8353 Sierra Avenue, City of Fontana CA, 92335, hereby claims a sum in lieu of utility undergrounding lien on the real property located at 14041 Slover Avenue , Fontana, California, 92337, identified with Assessor’s Parcel Number 0236-081-48 (“Property”), owned or reputed to be owned by Jadel Enterprises, LLC, (“Owner” of the Property), for the sum of ONE HUNDRED EIGHTY FIVE THOUSAND ONE HUNDRED SIXTY DOLLARS AND NO CENTS ($185,160.00), which is due and unpaid (after deducting all just credits and offsets) on that certain Sum in Lieu of Utility Undergrounding Deferral and Lien Agreement dated _____________ between Claimant and Owner pursuant to Fontana Municipal Code (“FMC”) Section 27 -54 where the Claimant allowed such agreement in lieu of undergrounding off-site utilities at the Property as required under FMC Section 27-52.

Date: ________________

_________________________________
By: Matthew Ballantyne
Its: City Manager

[Continue with required notice of lien]

SUM IN LIEU OF UTILITY UNDERGROUNDING LIEN: ATTENTION!

146
On the recordation of the enclosed SUM IN LIEU OF UTILITY UNDERGROUNDING LIEN with the county recorder's office of the county where the property is located, your property is subject to the filing of a legal action seeking a court-ordered foreclosure sale of the real property on which the lien has been recorded. That legal action must be filed with the court no later than 90 days after the date the mechanics lien is recorded.

You are receiving this notice because it is the claimant’s intention to file a lien foreclosure action against your property. The foreclosure action will seek a sale of your property in order to pay the remaining balance of the Sum in Lieu of Utility Undergrounding Deferral and Lien Agreement for your property. This may affect your ability to borrow against, refinance, or sell the property until the lien is released.

VERIFICATION

I am the claimant authorized to make this verification and the foregoing Claim of Lien is true of my own knowledge, except for matters stated in it on the basis of my information or belief, and as to those matters I believe it to be true.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Date: ________________

_______________________________

City of Fontana
8353 Sierra Avenue
Fontana, CA 92335

147

PROOF OF SERVICE

On ___________, 20__, the undersigned declarant served copies of the above SUM IN LIEU OF UTILITY UNDERGROUNDING LIEN on the _ _[owner/reputed owner]_ _ named below by _ _[registered mail/certified mail/first-class mail]_ _ at the addresses shown below:

___________________
___________________
___________________

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Date:
[Signature]
[Typed Name]

148

1 CITY OF FONTANA

SUM IN LIEU OF UTILITY UNDERGROUNDING

DEFERRAL AND LIEN AGREEMENT

This SUM IN LIEU OF UTILITY UNDERGROUNDING DEFERRAL AND LIEN AGREEMENT (“Agreement”) is entered into this _____ day of ___________, 2024 (“Effective Date”), by and between the City of Fontana, a California municipal corporation (the “City”), and Jadel Enterprises, LLC (“Owner”). The City and Owner may sometimes hereinafter to be referred to as a “Party” or collectively as the “Parties.”

RECITALS
WHEREAS, O wner hereby repr esents and warrants to the City that Owner is the fee owner of certain real property located at 14041 Slover Avenue , Fontana, CA 92337, Assessor Parcel Number 0236-081-48, in the County of San Bernardino , State of California, and more fully described in E XHIBIT A attached hereto and incorporated herein by reference (“Property”);
WHEREAS, Section 27 -52 of the City’s Municipal Code requires that the Owner place underground of the Property all new, upgraded, or existing on-site or off-site utilities, all as more specifically described in Article 3 of Chapter 27 of the City’s Municipal Code; WHEREAS, Section 27-54 of the City’s Municipal Code permits the City’s Community Development Director to allow an applicant to pay a sum in lieu of undergrounding off -site utilities if it is determined that it would be impracticable, infeasible or disproportionately financially burdensome to require the undergrounding of off-site utilities pursuant to Section 27 - 52;
WHEREAS, Section 27-54 of the City’s Municipal Code requires that the amount and time of payment shall be agreed upon in writing by the Parties and the City may require that the Owner provide security for the Owner’s payment in the form of an improvement bond, letter of credit and a lien against the Property;
WHEREAS, the required sum in lieu of undergrounding the utilities due and payable by the Owner represents a proportionate and fair share of costs attributable to the Property, and WHEREAS, the Owner wishes to enter into this Agreement to defer payment of the sum in lieu of undergrounding the utilities as permitted under Section 2 7-54 of the City’s Municipal Code and will provide a lien against the Property as security as further described herein.

TERMS
NOW, THEREFORE, in consideration of the above fact s and for the covenants and agreements contained herein, the City and Owner agree as follows:

1. No Effect Upon Remaining Conditions . This Agreement is intended to defer 149

2 Owner’s obligation with respect to the utility undergrounding in lieu of sum . This Ag reement does not alter, amend or modify any provision of the City’s Municipal Code or other of the conditions of approval, environmental mitigation measures, or other obligation of the Owner with respect to any permit or entitlement with respect to the Pro perty. The Owner hereby reaffirms its consent to and agreement with each and every condition on the Property, all requirements of the City’s Municipal Code, and all other permits and entitlements relative to the Property.

2. Amount. Owner shall be obligated to pay to the City, an amount approximating the Owner’s proportionate share of the reasonably estimated costs of undergrounding utilities in the general area surrounding the Property. Such amount is hereby agreed and acknowledged by the parties to be ONE HUNDRED EIGHTY FIVE THOUSAND ONE HUNDRED SIXTY DOLLARS AND ZERO CENTS ($185,160.00).

3. Payment Terms. Owner shall pa y to the City the Sum Amount in Lieu of Undergrounding the Utilities (“In Lieu of Sum” in four (4) equal semiyearly installments in the amount of FORTY SIX THOUSAND TWO HUNDRED NINETY DOLLARS AND NO CENTS ($46,290.00) equaling a total amount of ONE HUNDRED EIGHTY FIVE THOUSAND ONE HUNDRED SIXTY DOLLARS AND ZERO CENTS ($185,160.00 ), whereby such payments shall be due and payable one hundred and eighty (180) calendar days following the Effective Date and each subsequent payment due and payable on each one hundred and eightieth day (180th) anniversary thereafter until paid in full (" Semi-Annual Installments") without further notice, demand or noti ce by the City . The last Semi-Annual Installment shall be increased or decreased, as necessary, to effect payment in full of all outstanding amounts owing to the City pursuant to this Agreement. All payments shall be submitted to [insert to whom and where the payment should be made]
In the event the Semi-Annual Installments are not paid in a timely manner, the City shall have the right to elect, at the City's sole discretion, to either : (i) place all outstanding amounts owing to the City pursuant to this Agreement on the property tax roll for the Property, or (ii) demand immediate payment in full by Owner of all outstanding amounts owing to the City pursuant to this Agreement, which Owner shall immediately pay in full . In the event any outstanding amounts owing to the City pursuant to this Agreement are placed on the property tax roll for the Property, then Owner shall pay to the City: (i) a one-time set up fee therefor in the amount of Two Hundred Fifty Doll ars and No Cents ($250.00) ("Set-Up Fee "); and (ii) a monthly administrative charge therefor in the amount of Twenty -Five Dollars and No Cents ($25.00) ("Administrative Charges").

4. Lien and Recordation of Lien Notice. Owner hereby authorizes the City to record a valid and effective lien instrument therefor against the Property in the Official Records of the County of San Bernardino, California in the amount of all outstanding amounts owing to the City pursuant to this Agreement, including, without limitation, interest accruing thereon. The City's Lien shall occupy a prio rity position against the Property senior to all other non -statutory monetary liens and encumbrances against the Property. The lien placed pursuant to this Agreement shall run with the Property and the requirements imposed by this Ag reement shall bind the successors and assigns of the Owner until satisfied in full. 150

3 5. Approval by Lienholders. Owner agrees that it shall not be eligible for deferment of the In Lieu of Sum under this Agreement unless and until the Owner obtains the consen t of any and all lienho lder(s) (existing or future) of the Property. Such consent shall be manifested by a recorded instrument subordinating the lienholder(s) lien(s) to that of the City for any outstanding amounts owed under this Agreement.

6. Release of Lien. Upon payment in full of all amounts due and payable to the City pursuant to this Agreement, the City will file a release document in the Official Records of the County of San Bernardino , California, releasing the City's Lien placed against the Prope rty pursuant to this Agreement, if necessary. Owner shall pay all fees, if any, charged by the County Recorder of the County of San Bernardino, California for recordation of such release document.

7. Sale of Property . All outstanding amounts owing to the City pursuant to this Agreement shall become immediately due and payable, without demand or other action by the City, upon the commencement of any sale, refinancing of a mortgage and/or ownership transfer, whether voluntary or involuntary, respecting the P roperty. In the event Owner fails to pay such amounts prior to the opening of an escrow account in connection with any such sale, refinancing of a mortgage and/or ownership transfer, such outstanding amounts shall then be paid to the City from funds other wise due to Owner from the escrow account prior to the close of such escrow account.

8. Form of Payments and Application . All amounts due and payable to the City pursuant to this Agreement: (i) are payable in lawful money of the United States of America ; and (ii) excepting for the Inspection Fee, the Set-Up Fee and the Administrative Charge(s), shall be applied first to accrued interest pursuant to this Agreement . All amounts due and payable to the City pursuant to this Agreement may be prepaid in full at any time without penalty.

9. Executory Acts . The City and Owner shall execute such instruments and documents and diligently undertake such actions as may be required to carry out the terms and provisions of this Agreement.

10. Time of Essence . Time is of t he essence for each and every term, condition, obligation and provision of this Agreement.

11. Captions. Any captions to, or headings of, the paragraphs of this Agreement are solely for the convenience of the parties hereto, are not a part of this Agreement , and shall not be used for the interpretation or determination of the validity of this Agreement or any provision hereof.

12. Notices. Notices required or permitted under this Agreement shall be sent to the addresses identified below. Notices shall be dee med received on the thi rd business day following deposit in the United States Mail, postage prepaid, or upon actual receipt if the method of delivery is facsimile, messenger, or overnight delivery service such as Federal Express.

Notices shall be addressed as follows:

151

4 If to the City: If to Owner:

City of Fontana _________________________
8353 Sierra Avenue _________________________
Fontana, California 92335 _________________________
Attention: City Manager _________________________

13. Waiver. The waiver of failure t o enforce any provision of this Agreement shall not operate as a waiver of any future breach of any such provision or any other provision hereof.

14. Severability. If any section, term, clause or provision of this Agreement is found by a court of competent jurisdiction to be invalid or unenforceable, then that invalid portion shall be deemed severed from this Agreement and the remainder of this Agreement may be enforced in accordance with its terms.

15. Governing Law. Any legal action or proceeding concerning this Agreement shall be filed and prosecuted in the appropriate California state court in the County of San Bernardino, California. Both Parties hereto irrevocably consent to the personal jurisdiction of that court. The City and Owner each hereby expressly waive the benefit of any provision of federal or state law or judicial decision providing for the filing, removal, or change of venue to any other court or jurisdiction, including, without implied limitation, federal district court , due to any diversity o f citizenship between the City and Owner, due to the fact that either the City is a party to such action or proceeding or due to the fact that a federal question or federal right is involved or alleged to be involved. Without limit ing the generality of th e foregoing, Owner and the City specifically waive any rights provided to it pursuant to California Code of Civil Procedure Section 394. Owner acknowledges that the provisions of this Section 18 are material consideration to the City for its entry into t his Agreement, in that the City will avoid the potential cost, expense and inconvenience of litigating in a distant forum.

16. Attorneys’ Fees and Costs . If either party commences an action against the other party, either legal or admi nistrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such action shall be entitled to have and recover from the losing party reasonable attorney’s fees and all other costs of such action.

17. Entire Agreement. This Agreement supercedes any and all prior agreements and communications, oral or written, and contains the entire agreement between the City and Owner as to the subject matter hereof.

18. Modification. The terms of this Agreement may not be modified or amended except by an instrument in writing executed by both the City and Owner. [signatures on following page]
152

5 SIGNATURE PAGE TO

SUM IN LIEU OF UTILITY UNDERGROUNDING

DEFERRAL AND LIEN AGREEMENT

IN WITNESS WHEREOF, the City and Owner have caused this Agreement to be execute d in the County of San Bernardino as of the date first written above.

CITY:

CITY OF FONTANA,
a California municipal corporation

By: ___________________________________
Matthew Ballantyne, City Manager

OWNER:

Jadel Enterprises, LLC

_________________________________________
[Printed Name]

ATTEST:

By:______________________________________
Germaine Key, City Clerk

APPROVED AS TO FORM:

Best Best & Krieger, LLP

By:

Ruben Duran, City Attorney

(Note: Please attach a copy of the County of San Bernardino’s Tax Bill for the current year)

153

EXHIBIT A

EXHIBIT A TO

UTILITY UNDERGROUNDING

DEFERRAL AND LIEN AGREEMENT

Legal Description of Property
APN: 0236-081-48

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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3355 Agenda Date: 10/22/2024
Agenda #: A. Category: Public Hearing
FROM:

Finance
SUBJECT:

Request to Continue the Public Hearing, Election, and Resolutions on Formation of the City of Fontana Community Facilities District No. 115M (Parcel Map No. 19156) RECOMMENDATION:

Staff recommends that the City Council open and continue the public hearing on the formation of the City of Fontana Community Facilities District No. 115M, County of San Bernardino, State of California (“CFD No. 115M”), to the December 10, 2024 City Council meeting.

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

DISCUSSION:

Following the adoption of the resolution of intention to establish CFD No. 115M on September 10, 2024, the landowner, IDIL West Valley Logistics Center, LP (the “Developer”),notified the City that two of the taxable parcels included within the boundaries of CFD No. 115M needed to be removed as taxable property. The parcels in question were in fact detention basins and therefore the acreage of such parcels should be exempt and not be subject to the special tax.

This change requires the City’s special tax consultant to recalculate the special tax rates, draft an amended and restated rate and method of apportionment, and to draft a report required by Government Code, section 53325 regarding changes to the special tax presented to the City Council at the September 10, 2024 meeting. This change also requires the City’s legal counsel to revise and modify several legal documents to reflect the requested change from the Developer.

Government Code, section 53325 authorizes the City to continue a duly noticed public hearing from time to time for a period of 30 days, except that if the legislative body finds that the complexity of the proposed community facilities district requires additional time, the hearing may be continued from time to time for a period not to exceed six months.

Here, CFD No. 115M is being formed to levy a special tax on non-residential property to finance the maintenance of certain public services to be provided by CFD No. 115M. The special tax is based upon the net taxable acres of the property subject to the special tax. Removal of the parcels in question represent over nine (9) taxable acres that will no longer be available to support the special tax as currently calculated. The Developer is currently working with the City’sengineering department to determine what actions are needed to amend their final map application to account for the City of Fontana Printed on 10/16/2024Page 1 of 2
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to determine what actions are needed to amend their final map application to account for the detention basins.

Once the engineering requirements are finalized, the Developer and the City will be in a position to modify the required legal documents and special tax calculations for CFD No. 115M. By continuing the public hearing this allows for sufficient time to take the corrective measures needed.

FISCAL IMPACT:

All costs for establishing CFD No. 115M have been paid by the Developer through a CFD formation proceedings deposit. The additional costs related to the changes described herein will be paid for by the Developer’sdeposit. In the event the costs exceed the amount of the deposit the Developer will be required to post an additional deposit to cover the additional costs.

MOTION:

Staff recommends opening and continuing the October 22, 2024 public hearing to December 10, 2024.

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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3356 Agenda Date: 10/22/2024
Agenda #: B. Category: Public Hearing
FROM:

Finance
SUBJECT:

Public Hearing, Election, and Resolutions on Formation of Community Facilities District No. 116M (Tract Map No. 20511)
RECOMMENDATION:

Immediately after conducting a Public Hearing on the formation of the City of Fontana Community Facilities District No. 116M, County of San Bernardino, State of California (the “District” or “Community Facilities District No. 116M”), staff recommends the City Council take the following actions in the following order:

1. Adopt Resolution No. 2024-117, Establishing the City of Fontana Community Facilities District No.116M and the Boundaries thereof (the “Resolution of Formation”).

2. Adopt Resolution No. 2024-118, Calling a Special Election and Submitting to the Voters of Community Facilities District No. 116M a Proposition Regarding the Annual Levy of Special Taxes within Community Facilities District No. 116M to Pay the Costs of Certain Services to be Provided by Community Facilities District No. 116M and a Proposition Establishing an Appropriations Limit for Community Facilities District No. 116M (the “Resolution Calling the Election”).

3. Conduct the Special Election.

4. Adopt Resolution No. 2024-119, Declaring the Results of the Special Election for Community Facilities District No. 116M on the Propositions with Respect to (i) the Annual Levy of Special Taxes to Pay the Costs of Certain Services to be provided by Community Facilities District No. 116M and (ii) the Establishment of an Appropriations Limit (the “Resolution Declaring Election Results”).

5. Conduct First Reading (Read title only, and waive further reading) of Ordinance No. 1958, Authorizing the Levy of a Special Tax within Community Facilities District No. 116M (the “Ordinance”).

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

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Agenda #: B. Category: Public Hearing
DISCUSSION:

The Mello-Roos Community Facilities Act of 1982 provides for the establishment of community facilities districts as an alternate method of financing certain essential public capital facilities and services, especially in the developing areas of the State of California. Once duly established by the City, a community facilities district is a separate legal entity with defined boundaries, for which the City Council acts on its behalf as its legislative body. Subject to approval by a two-thirds vote of the qualified electors in compliance with the provisions of the Act, the City Council, as the legislative body of the community facilities district, may levy a special tax to pay for ongoing public services, among other actions.

The landowner, D.R. Horton Los Angeles Holding Company, Inc. (the “Developer”),has submitted a petition to the City to form Community Facilities District No. 116M for the purposes of funding certain public services. The landowner’sproperty to be included in the District consists of approximately 10.7 gross acres of mixed used residential property and will include 47 single family detached homes and 80 attached residential units for a total of 127 units. The attached units will be constructed in 16 buildings each containing five units per building. The development is generally located south of Sierra Lakes Parkway, east of Lytle Creek Road, and west of Maloof Avenue in the City.

The Community Facilities District Report (which is included with the agenda documents) contains a brief description of the services to be funded by the District by type, an estimate of the costs of providing those services, and the incidental expenses to be incurred therewith.

On September 10, 2024, the City Council approved a resolution of intention (the “Resolution of Intention) declaring its intention to establish Community Facilities District No. 116M (the “District”), which also set a public hearing on the establishment of the District for October 22, 2024. The purpose for establishing the District is to provide funding for the maintenance of parks, parkways, street lighting and open space within and surrounding the area of the District, the costs associated with the determination of the amount of a collection of taxes, the payment of taxes and costs otherwise incurred in order to carry out the authorized purposes of the District.

Pursuant to the requirements of the Resolution of Intention and Government Code Section 53322, the City Clerk published a notice of the public hearing in a newspaper of general circulation in the City at least seven (7) days before the date of the public hearing. Additionally, the City Clerk’s designee gave notice of the public hearing by mail to the sole landowner within the District’s boundaries, as prescribed by Section 53322.4 of the California Government Code, at least fifteen (15) days before the public hearing. The boundary map of the District was recorded with the County on September 24, 2024.

At this meeting, the City Council will first open and conduct the public hearing on the formation of Community Facilities District No. 116M. Immediately thereafter, and in order to form the District, the City Council will need to take the following actions in the following order:

1. Adopt the Resolution of Formation which specifies that special taxes will be levied on all parcels of taxable property in the proposed District to finance the public services described therein. The rate and method of apportionment of the proposed special taxes that may be levied for these purposes are set forth as an exhibit to the Resolution of Formation.

2. Adopt the Resolution Calling the Election which authorizes conducting the special election for the City of Fontana Printed on 10/16/2024Page 2 of 3
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2. Adopt the Resolution Calling the Election which authorizes conducting the special election for the District this evening with respect to the annual levy of special taxes to pay the costs of the authorized public services, and with respect to establishing an annual appropriations limit for the District.

3. Conduct the Special Election. The City Clerk will act as the election official for the special election. The City Clerk and the landowner have consented to the holding of the special election this evening October 22, 2024. The County Registrar of Voters has certified that there are no registered voters within the boundaries of the District, and thus, the vote is by the landowner. The City Clerk will announce the results of the canvass of ballots and the special election.

4. Adopt the Resolution Declaring Election Results which declares the results of the special election.

5. Conduct a first reading of the Ordinance. If the results of the special election are in favor of the levy of special taxes within the District, the City Council may call the first reading of the Ordinance, authorizing the levy of special taxes within the District.

FISCAL IMPACT:

This action will establish the District, which will levy each property within its boundaries using special tax formulas outlined in the Rate and Method of Apportionment of Special Tax. The District’sFiscal Year 2025-26 maximum special tax has been established at $737 per unit for taxable residential property and $8,217 per acre of taxable non-residential property, in the event non-residential property is subsequently developed. The maximum special tax is subject to a 2% increase per year, effective July 1, 2026. All costs for establishing the District have been paid by the Developer with ongoing yearly maintenance services costs paid by the property owners subject to the special tax.

MOTION:

After conducting the public hearing, Approve the Resolution of Formation, Resolution Calling Election, Resolution Declaring Results of Election, and give first reading to Ordinance upon staff recommendation.

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1 RESOLUTION NO. _____

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

FONTANA ESTABLISHING THE CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 116M, COUNTY

OF SAN BERNARDINO, STATE OF CALIFORNIA, AND

THE BOUNDARIES THEREOF
WHEREAS, on September 10, 2024, the City Council (the “City Council”) of the City of Fontana (the “City”) adopted Resolution No. 2024-107 (the “Resolution of Intention”), declaring its intention to establish a community facilities district to be known as “City of Fontana Community Facilities District No. 116M, County of San Bernardino, State of California” (“CFD No. 116M”) under the provisions of Chapter 2.5 (commencing with Section 53311 ) of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the “Mello -Roos Community Facilities Act of 1982” (the “Act”) for the purpose of providing certain public services, and fixing the time and place for a public hearing (the “Public Hearing”) on the formation of CFD No. 116M and the levy of special taxes therein; and
WHEREAS, as part of the Resolution of Intention, the City Council approved a boundary map of CFD No. 116M (the “Boundary Map”), as required by California Streets and Highways Code Section 3110, entitled “Proposed Boundaries of City of Fontana Community Facilities District No. 116M, San Bernardino County, State of California,” which is attached hereto as Exhibit “A” and incorporated herein by this reference; and WHEREAS, notice of the Public Hearing was published and mailed to the owners of all of the property in the proposed boundaries of CFD No. 116M; and WHEREAS, prior to the commencement of the Public Hearing there was filed with the City Council a report (the “Report”) containing a description of the services being financed within and for CFD No. 116M and an estimate of costs of providing such services, as required by Section 53321.5 of the Act, and such Report has been reviewed by the City Council; and WHEREAS, on October 22, 2024, at the time and place set by the Resolution of Intention, the City Council conducted the Public Hearing and considered the establis hment and extent of CFD No. 116M, the levy of the special tax and the proposed rate, method, and apportionment and manner of collection of the special tax, the provision of services by CFD No. 116M, the establishment of an appr opriations limit , and all other matters set forth in the Resolution of Intention; and
WHEREAS, at the Public Hearing all interested persons, including all taxpayers, property owners, and registered voters within the proposed boundaries of CFD No. 116M, were given an opportunity to appear and to be heard, and the testimony and protests of all interested persons and all taxpayers, property owners, and registered voters for or against the formation of CFD No. 116M, the levy of the special taxes therein, the provision of the services t o be authorized therein, and any other matters set forth in the Resolution of Intention were heard and considered, and a full and fair hearing was held; and
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2 WHEREAS, at the Public Hearing evidence was presented to the City Council on the matters before it, and the City Council, at the conclusion of the hearing, was fully advised as to all matters set forth in the Resolution of Intention; and
WHEREAS, the City Clerk has advised the City Council that a statement from the Registrar of Voters of the County of S an Bernardino was received which stated that there are no persons registered to vote in the territory of CFD No. 116M; and WHEREAS, the City Council now desires to proceed to establish CFD No. 116M.

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

Section 1. Findings. The City Council hereby finds and determines as follows:
(a) All of the preceding recitals are true and correct and are incorporated herein by this reference;
(b) At its meeting on September 10, 2024, pursuant to notice thereof duly given as provided by law, the City Council conducted the Public Hearing with respect to the formation of CFD No. 116M and the annual levying of specified special taxes on the taxable property within CFD No. 116M to pay the costs of services for CFD No. 116M, which are described in Exhibit “B” attached hereto;
(c) All prior proceedings with respect to the formation of CFD No. 116M prior to and during the Public Hearing which were conducted by the City Council were valid and in conformity with the requirements of the Act, and except to the extent inconsistent with this Resolution, the Resolution of Intention is reaffirmed, and its provisions and findings are, to that same extent, incorporated herein by this reference;
(d) The Boundary Map was recorded on September 24, 2024, pursuant to Section 3110 et seq. of the California Streets and Highways Code, at page 99 of Book 91 of Maps of Assessment and Community Facilities Districts, and as Document No. 2024-2024-0228086, in the official records of the County of San Bernardino;
(e) At the close of the Public Hearing, written protests, if any, to the establish ment or extent of CFD No. 116M or to any other matter contained in the Resolution of Intention, were submitted by less than fifty percent (50%) of the registered voters, or by less than six of the registered voters, if any, residing within the territory proposed to be included in CFD No. 116M.

Similarly, the City Council finds that at the close of the Public Hearing, such written protests, if any, were submitted by the owners of less than one-half of the area of land in the territory proposed to be included in CFD No. 116M and not exempt from the special tax. Th us, the City Council finds that it is not precluded by the Act from proceeding further in this matter. The City Council further orders and determines that all protests, if an y, that may have been submitted have been considered and are hereby overruled; and
(f) No persons have been registered to vote within the territory of CFD No. 116M for each of the ninety (90) days preceding the close of t he Public Hearing, and pursuant to Section 161
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3 53326 of the Act, the vote in the Special Election (as defined below) provided for herein shall, therefore, be by the landowners within CFD No. 116M, and each landowner shall have one vote for each acre, or portion thereof, which he or she owns within CFD No. 116M which is not exempt from the special tax.

Section 2. Formation of District. The City of Fontana Community Facilities District No. 116M, County of San Bernardino, State of California, is hereby established. The boundaries of CFD No. 116M are described and shown on the Boundary Map which is on file with the City Clerk and attached hereto as Exhibit “A” and incorporated herein , and said boundaries are hereby approved and established.

Section 3. Types of Services; Incidental Expenses . The services authorized to be financed by and through CFD No. 116M shall be those services shown on Exhibit “B” hereto (the “Services”). The City Council finds that the Services do not in any way exceed the description of the authorized services proposed in the Resolution of Intention. All of the Services are necessary to meet increased demands placed on the City as a result of development occurring and anticipated to occur within CFD No. 116M.

CFD No. 116M shall also finance all costs associated with the establishment of CFD No. 116M, administration thereof, the determination of the amount of any special taxes to be levied, the costs of collecting any special taxes, and costs otherwise incurred in order to carry out the authorized purpose of CFD No. 116M.

Section 4. Special Taxes and Appropriations Limit. Except where funds are otherwise available, a special tax sufficient to pay for the Services and related incidental expenses provided in Section 3 above and the annual administrative expenses of the City and CFD No. 116M and in determining, apportioning, levying and collecting such special taxes shall be annually levied within CFD No. 116M. The rate and method of apportionment of said special taxes shall be as set forth in Exhibit “C” attached hereto and by this reference made a part hereof , which sets forth in sufficient detail the rate and method of apportionment of the special taxes to allow each landowner or resident within CFD No. 116M to clearly estimate the maximum amount that such person will have to pay.

Pursuant to Section 53340 of the Act, the special taxes shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 116M may collect special taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent assessor’s parcels as permitted by the Act.

Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the special taxes shall attach to all non-exempt real property in CFD No. 116M, and that lien shall continue in force and effect until the collection of the special tax ceases. The Finance Department of the City of Fontana, 8353 Sierra Avenue, Fontana, California, is designated as the office responsible for annually preparing a current roll of special tax levy obligations by assessor’s parcel numbers and for estimating future special tax levies pursuant to Section 53340.2 of the Act. 162
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4 Pursuant to Section 53325.7 of the Act, and subject to voter approval, the initial appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII of the California Constitution, for CFD No. 116M is established in the amount of $5,000,000.

Section 5. Exempt Properties . Pursuant to Section 53340 of the Act, and except as provided in Section 53317.3 of the Act, properties of entities of the state, federal, and local governments shall be exempt from the levy of special taxes.

Section 6. Report. The Report is hereby approved and is made a part of the record of the Public Hearing regarding the formation of CFD No. 116M and is ordered to be kept on file with the City Clerk as part of the transcript of these proceedings.

Section 7. Description of Voting Procedures. The voting procedures to be followed in conducting the special election (the “Special Election”) as to (i) the proposition with respect to the levy of special taxes on taxable property within CFD No. 116M to pay the costs of the services to be provided b y CFD No. 116M, and (ii) the proposition with respect to establishing an appropriations limit for CFD No. 116M in the amount of $5,000,000, shall be as follows:
(a) Except as otherwise provide below, the Special Election shall be conducted by the City Clerk pursuant to the California Elections Code governing mail ballot elections of cities, and in particular, the provisions of Division 4 (commencing with Section 4000) of said Code, insofar as they may be applicable.
(b) The Special Election shall be held on the earliest date, which may be selected by the City Council, following the adoption by the Ci ty Council of this Resolution and a resolution pursuant to Section 533 26 of the Act submitting to the qualified electors the propositions with respect to the levy of special taxes to pay the costs of the services to be provided by CFD No. 116M and establishing an appropriations limit therefor, or such earlier date as the owners of land within CFD No. 116M and the City Clerk agree and concur is acceptable. (c) Pursuant to Section 53326 of the Act, the time limits for conducting the Special Election may be waived by the qualified electors by unanimous consent and the City Clerk concurs in such earlier election date as shall be consented to by the qualified electors. (d) Pursuant to said Section 53326 of the Act , ballots for the Special Election shall be distributed to the qualified electors by the City Clerk by mail wit h return postage prepaid, or by personal service.

(e) Pursuant to applicable sections of the California Elections Code governing the conduct of mail ballot elections of cities, and specifically Division 4 (commencing with Section 4000) of the California Elections Code with respect to elections conducted by mail, the City Clerk shall mail or deliver to each qualified elector an official ballot in a form specified by the City Council in the resolution calling and consolidating the Special Election, and shall also mail or deliver to all such qualified electors a ballot pamphlet and instructions to voter, and unless waived as provided for in the Act, shall include a sample ballot identical in form to the official ballot but identified as a sample ballot, an impartial analysis by the City Attorney pursuant to Section 9280 of that Code with respect to the ballot propositions contained in the official ballot, arguments and 163
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5 rebuttals, if any, pursuant to Sections 9281 to 9287, inclusive, and 9295 of that Code, a ret urn identification envelope with prepaid postage thereon addressed to the City Clerk for the return of voted official ballots, and a copy of the Resolution of Intention, provided, however, that such conduct, statements, analysis and arguments may be waived pursuant to the Act with the unanimous consent of all the landowners who are qualified electors and shall be so stated in the resolution adopted by the City Council calling the Special Election. Such statements, impartial analysis and arguments, if any, shall be prepared by the City Attorney. (f) The official ballot to be mailed or delivered by the City Clerk to each landowner - voter shall have printed or typed thereon the name of the landowner-voter and the number of votes to be voted by the landowner-voter and shall have appended to it a certification to be signed by the person voting the official ballot which shall certify that the person signing the certification is the person who voted the official ballot, and if the landowner-voter is other than a natural person, that he or she is an officer of or other person affiliated with the landowner -voter entitled to vote such official ballot, that he or she has been authorized to vote such official ballot on behalf of the landowner-voter, that in voting such official ballot it was his or her intent, as well as the intent of the landowner-voter, to vote all votes to which the landowner -voter is entitled based on its land ownership on the propositions set forth in the official ballot as marked thereon in the voting square opposite each such proposition, and further certifying as to the acreage of the landowner -voter’s land ownership within CFD No. 116M.
(g) The return identification envelope mailed or delivered by the City Clerk to each landowner-voter shall have printed or typed thereon the following: (i) the name of the landowner, (ii) the address of the landowner, (iii) a declaration under penalty of perjury stating that the voter is the landowner or the authorized representative of the landowner entitled to vote the enclosed ballot and is the person whose name appears on the identification envelope, (iv) the printed name and signature of the voter, (v) the address of the voter, (vi) the date of signing and place of execution of said declaration, and (vii) a notice that the envelope contains an official ballot and is to be opened only by the City Clerk as the election official. (h) The instructions to voter form to be mailed or delivered by the City Clerk to the landowner-voters shall inform them that the official ballots shall be returned to the City Clerk properly voted as provided thereon and with the certification appended thereto properly completed and signed in the sealed return identification envelope with the certification thereon completed and signed and all other information to be inserted thereon properly inserted by 2:00 p.m. on the date of the election; provided that if all qualified voters have voted, the election shall be closed with the concurrence of the City Clerk.
(i) Upon receipt of the return ide ntification envelopes which are returned prior to the voting deadline on the date of the election, the City Clerk shall canvass the votes cast in the Special Election, and shall file a statement with the City Council as to the results of such canvass and t he election on each proposition set forth in the official ballot.

The procedures set forth in this section for conducting the Special Election, if it is held, may be modified as the City Council may determine to be necessary or desirable by a resolution subsequently adopted by the City Council.
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6 Section 8. Effective Date. This Resolution shall take effect immediately from and after the date of its passage and adoption.

APPROVED AND ADOPTED this 22nd day of October, 2024.

READ AND APPROVED AS TO LEGAL FORM:
_____________________________________
City Attorney

I, Germaine Key, City Clerk of the City of Fontana, do hereby certify that the foregoing resolution is the actual resolution duly and regularly adopted by the City of Fontana at a regular meeting o n the 22nd 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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A-1

EXHIBIT A

BOUNDARY MAP

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B-1

EXHIBIT B

DESCRIPTION OF PUBLIC SERVICES
The types of services to be provided by the proposed community facilities district are the maintenance of parks, parkways, street lighting and open space within and surrounding the area of the District and within and surrounding the area of any territory to be annexed to the District in the future and the costs associated with the determination of the amount of and collection of the special taxes, and the payment of any costs otherwise incurred in order to carry out the authorized purposes of the community facilities district.

“Maintenance” means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of such parks, parkways, street lighting and open space, and the incidental costs related thereto, including but not limited to:

a) Repair, removal, or replacement of all or any part of any improvement.

b) Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, tr imming, spraying, fertilizing, or treating for disease or injury.

c) The removal of trimmings, rubbish, debris, and other solid waste.

d) The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.
e) Any and all other services authorized pursuant to the Act.

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EXHIBIT C

RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 116M OF THE

CITY OF FONTANA, COUNTY OF SAN BERNARDINO,

STATE OF CALIFORNIA

A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels of Taxable Property in City of Fontana Community Facilities District No. 116M ("CFD No. 116M") and collected each Fiscal Year, commencing in Fiscal Year 2025-2026, in an amount determined by the City Council of the City of Fontana, through the application of the Rate and Method of Apportionment as described below. All of the real property in CFD No. 116M, 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 c alculated to the reasonable satisfaction of the CFD Administrator using the boundaries set forth on such map or plan.

"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.

"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 116M, including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County or otherwise); the costs to the City, CFD No. 116M or any designee thereof of complyi ng with City or CFD No. 116M disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 116M or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees and third party expenses.

Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 116M for any other administrative purposes of CFD No. 116M, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.

"Assessor’s Parcel" means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.

"Assessor’s Parcel Map" means an official ma p of the County Assessor of the County of San Bernardino designating parcels by Assessor’s Parcel Number.

“Assessor’s Parcel Number” means that number assigned to an Assessor’s Parcel by the County of San Bernardino for purposes of identification.

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"CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, providing for the levy and collection of the Special Taxes, and performing other duties as set forth herein.

“CFD No. 116M” means the City of Fontana Community Facilities District No. 116M.

"City" means the City of Fontana, California.

"Council" means the City Council of the City of Fontana, acting as the legislative body of CFD No. 116M.

"County" means the County of San Bernardino.

"Developed Property" means, for each Fiscal Year, all Assessor’s Parcels of Taxable Property for which (i) a Final Residential Subdivision has been recorded with the County as of January 1 of the previous Fiscal Year or (ii) a building permit for new construction has been issued on or before January 1 of the previous Fiscal Year for a non-residential use.

"Final Residential Subdivision" means a Final Subdivision that creates individual lots for which building permits may be issued for residential dwelling units without further subdivision of such property.

"Final Subdivision" means (i) a subdivision of property by recordation of a final map, parcel map, or lot line adjustment approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) that creates individual lots or parcels for which building permits may be issued, or (ii) for condominiums, a final map approved by the City and a condominium plan recorded pursuant to California Civil Code Section 4285 that creates an individual lot(s) for which a building permit(s) may be issued without further subdivision. The term "Final Subdivision" shall not include any Assessor’s Parcel Map or subdivision map or portion thereof that does not create individual lots for which a building permit may be issued, including Assessor’s Par cels that are designated as remainder parcels. Notwithstanding the above, a condominium plan for which one or more building permits have been issued, but no individual lots have been created for such building permits, shall be considered a Final Subdivision, and the portion of the condominium plan for which building permits have been issued shall be defined as Developed Property.

"Fiscal Year" means the period starting July 1 and ending on the following June 30.

"Land Use Class" means any of the classes listed in Table 1 below.

"Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C hereof, that can be levied by CFD No. 116M in any Fiscal Year on any Assessor’s Parcel.

"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.

"Property Owner Association Property" means, for each Fiscal Year, any Assessor’s Parcel within the boundaries of CFD No. 116M that was owned by or irrevocably offered for dedication to a property owner association, inclu ding any master or sub -association, as of January 1 of the previous Fiscal Year.
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“Proportionately” means, for Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor’s Parcels of Developed Property.

"Public Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 116M 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. To ensure that property is classified as Public Property in the first Fiscal Year after it is acquired by, irrevocably offered for dedication to, or dedicated to a public a gency, the property owner shall notify the CFD Administrator in writing of such acquisition, offer, or dedication not later than June 30 of the Fiscal Year in which the acquisition, offer, or dedication occurred.

“Rate and Method of Apportionment” means this Rate and Method of Apportionment of Special Taxes for CFD No. 116M.

"Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property, to fund the Special Tax Requirement.

"Special Tax Requirement" means that amount required in any Fiscal Year for CFD No. 116M to pay for: (1) maintenanc e services authorized to be financed by CFD No. 116M, (2) Administrative Expenses, (3) anticipated delinquent special taxes (such delinquent special taxes shall be estimated based on the delinquency rate in CFD No. 116M for the previous Fiscal Year), and (4) less a credit for funds available to reduce the annual Special Tax levy, if any, as determined by the CFD Administrator.

"Taxable Property" means all of the Assessor’s Parcels within the boundaries of CFD No. 116M which are not exempt from the Special Tax pursuant to law or Section E below.

“Undeveloped Property” means, for each Fiscal Year, all Assessor’s Parcels of Taxable Property which are not categorized as Developed Property.

"Welfare Exemption" means, for each Fiscal Year, any Assessor's Parcel that is subject to a welfare exemption under subdivision (g) of Section 214 of the California Revenue and Taxation Code (or any successor statute), as indicated in the County’s assessment roll finalized as of the last preceding January 1.

B. ASSIGNMENT TO LAND USE CATEGORIES

For each Fiscal Year, commencing with Fiscal Year 2025-2026, all Taxable Property within CFD No. 116M shall be categorized as either Developed Property or Undeveloped Property, and shall be subject to the Special Tax in accordance with the rate and method of apportionment determined pursuant to Sections C and D below.

C. MAXIMUM SPECIAL TAX RATE

1. Developed Property

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The Fiscal Year 2025-2026 Maximum Special Tax for each Assessor’s Parcel classified as Developed Property shall be equal to the amount shown in the table below:

TABLE 1
Fiscal Year 2025-2026
Maximum Special Tax for Developed Property
Land Use Class FY 2025-2026 Maximum Special Tax
Final Residential Subdivision $737 per lot
Non-Residential Property $8,217 per Acre

On each July 1, commencing July 1, 2026, the Maximum Special Tax for Developed Property shall increase by two percent (2%) per Fiscal Year.

2. Undeveloped Property

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

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX

Commencing with Fiscal Year 2025 -2026 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement and the City shall provide for the levy of the Special Tax until the total Special Tax levy equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows:

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

E. EXEMPTIONS

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

The exempt status of any property will be determined by the CFD Administrator and such determination shall be final.

F. MANNER OF COLLECTION

The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, and the same procedure, sale and lien priority in case of delinquency as is provided for ad valorem property taxes; provided, however, that CFD No. 116M may directly bill the Special Tax, and/or may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of CFD No. 116M.
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G. TERM OF SPECIAL TAX

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

H. APPEALS

Any landowner or resident who feels that the amount of the Special Tax levied on his/her Assessor’s Parcel is in error may submit a written appeal to the CFD Administrator, provided that the appellant is current in his/her payment of Special Taxes. During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made.

The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, a cash refund shall not be made (except for the last year of levy), but the amount of the Special Tax levied shall be appropriately modified, reduced, or eliminated through an adjustment to the Special Tax levy in the following Fiscal Year. If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has thirty (30) days in which to appeal to the Council by filing a wr itten notice of appeal with the City Clerk, provided that the appellant is current in his/her payment of Special Taxes. This second appeal must specify the reasons for its disagreement with the CFD Administrator's determination.

The CFD Administrator sha ll interpret this Rate and Method of Apportionment for purposes of clarifying any ambiguity and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals. Any decision of the CFD Administrator shall be subject to appeal to the Council whose decision shall be final and binding as to all persons.

I. PREPAYMENT

No prepayments of the Special Tax are permitted.
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RESOLUTION NO. _____

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

FONTANA CALLING A SPECIAL ELECTION AND

SUBMITTING TO THE VOTERS OF CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 116M,

COUNTY OF SAN BERNARDINO, STATE OF

CALIFORNIA, A PROPOSITION REGAR DING THE

ANNUAL LEVY OF SPECIAL TAXES WITHIN THE

COMMUNITY FACILITIES DISTRICT TO PAY THE

COST OF CERTAIN PUBLIC SERVICES TO BE

PROVIDED BY THE COMMUNITY FACILITIES

DISTRICT AND ESTABLISH ING AN APPROPRIATIONS

LIMIT FOR THE COMMUNITY FACILITIES DISTRICT
WHEREAS, on September 10 , 2024, the City Council (the “City Council”) of the City of Fontana (the “City”) adopted its resolution of formation (the “Resolution of Formation”) of the City of Fontana Community Facilities District No. 116M, County of San Bernardino, State of California (“CFD No. 116M”), pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code (the “Act”), thereby e stablishing CFD No. 116M and the boundaries thereof; and
WHEREAS, pursuant to Section 53326 of the Act, it is necessary that the City Council submit to the qualified voters of CFD No. 116M the proposition relating to the annual levy of special taxes on taxable property within CFD No. 116M to pay the costs of providing the public services described in the Resolution of Formation; and
WHEREAS, pursuant to Section 53325.7 of the California Government Code, the City Council may also submit to the qualified voters of CFD No. 116M a proposition with respect to establishing an appropriations limit for CFD No. 116M; and WHEREAS, the City Clerk (the “City Clerk”) has advised the City Council that a statement has been received from the Registrar of Voters of the Count y of San Bernardino stating that there are no persons registered to vote in the territory of CFD No. 116M; and WHEREAS, the City Council is fully advised in this matter and now desires to call the special mail ballot election.

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

Section 1. Findings. The City Council hereby finds and determines as follows:
(a) The foregoing reci tals are true and correct and are incorporated herein by this reference;
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(b) The public hearing held by the City Council pursuant to the resolution declaring its intention to establish CFD No. 116M adopted September 10, 2024 (the “ Resolution of Intention”) has been properly conducted, and notice thereof was duly given, in compliance with all applicable requirements of the Act;
(c) No written protests were filed with the City Clerk prior to the conclusion of said public hearing and the City Council is therefore authorized, pursuan t to Section 533 26 of the Act, to submit to the qualified electors of CFD No. 116M the question of the levy of the special tax and the appropriations limit;
(d) No persons have been registered to vote within the territory of CFD No. 116M for each of the 90 days preceding the close of the public hearing on October 22, 2024, and pursuant to Section 53326 of the Act, the vote in the special election called by this Resolution shall , therefore, be by the landowners of CFD No. 116M whose property would be subject to the special taxes if they were levied at the time of the election, and each landowner shall have one vote for each acre, or portion thereof, which he or she owns within CFD No. 116M which would be subject to the proposed special taxes if they were levied at the time of the election; (e) The owner of all of the property in CFD No. 116M has, by written consent, (a) waived the conduct and time limits for holding the election called by this Resolution, including as set forth in Section 53326 of the California Government Code, (b) consented to the calling and holding of the special election on October 22, 2024, (c) waived notice of the time and date of the special election, (d) waived an impartial analysis of the ballot propositions pursuant to Section 9313 or 13119 of the California Elections Code and arguments and rebuttals pursuant to Sections 9314 to 9317, inclusive, (e) waived the word limit requirement for the ballot pursuant to Section 13247 and 9051 of the Elections Code, and (f) waived the mailing of a statement pursuant to the Elections Code, and receipt of a ballot pamphlet as required by Section 3023 of that Code; and (f) The City Clerk, as the election official, has consented to the holding of the special election on October 22, 2024.

Section 2 . Call of Election . The City Council hereby calls and schedules a special election for October 22, 2024 , within and for CFD No. 116M as to (i) the proposition with respect to the annual levy of special taxes on taxable property within CFD No. 116M for the payment of the costs of the public services to be provided within and f or the benefit of CFD No. 116M, and (ii) the proposition with respect to establishing an appropriations limit for CFD No. 116M.

Section 3. Propositions. The propositions to be submitted to the qualified electors of CFD No. 116M at such special election shall be as follows:

Proposition A: “Shall the City of Fontana, Community Facilities District No. 116M, County of San Bernardino, State of California, subject to accountability measures required pursuant to Government Code Section 50075.1, levy a special tax annually on taxable property therein , to pay the costs of certain services as defined and for the purposes specified in the Resolution of Formation adopted by the City Council of the City of Fontana on October 22, 2024 (the “Resolution of 174
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Formation”), to accumulate and fund the maintenance of parks, parkways, street lighting and open space , including any incidental expenses authorized by the Mello-Roos Community Facilities Act of 1982, and any other expense required in order to carry out the authorized pu rposes of Community Facilities District No. 116M and within and surrounding the area of any territory to be annexed to Community Facilities District No. 116M in the future, and to levy and collect the special tax, so long as the special tax is needed to pay for the services and for such other purposes, at the special tax rates and pursuant to the Rate and Method of Apportionment for the City of Fontana Community Facilities District No. 116M, County of San Bernardino, State of California, which is attached as Exhibit “C” to the Resolution of Formation adopted by the City Council of the City of Fontana on October 22, 2024?”
Proposition B: “Shall the City of Fontana Community Facilities District No. 116M, County of San Bernardino, State of California, establi sh an annual appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, in the amount of $5,000,000?” Section 4. Conduct of Election. Except as otherwise provided in Section 5 hereof, the special election shall be conducted by the City Clerk in accordance with the provisions of the California Elections Code governing mail ballot elections of cities, and in particular the provisions of Division 4 (commencing with Section 4000) of the California Elections Code with respect to elections conducted by mail , and provisions of the Act, insofar as they may be applicable. The ballot for said elections shall be in the form attached hereto as Exhibit “A.” Section 5. Election Procedures . The procedures to be followed in conducting the special election on the propositions described in Section 3 above shall be as follows:
(a) Pursuant to Section 53326 of the Act, ballots for the special e lection shall be distributed to the qualified electors by the City Clerk by mail with return postage prepaid or by personal service.
(b) Pursuant to applicable sections of the California Elections Code governing the conduct of mail ballot elections of cities, and in particular Division 4 (commencing with Section 4000) of that Cod e with respect to elections conducted by mail, and of the Act, the City Clerk shall mail or deliver to each qualified elector an official ballot in the f orm attached hereto as Exhibit “A,” and shall also mail or deliver to all such qualified electors a bal lot pamphlet and instructions to voter, ballot title and summary, including a sample ballot identical in form to the official ballot but identified as a sample ballot, a return identification envelope with prepaid postage thereon addressed to the City Cler k for the return of voted official ballots , and a copy of the Resolution of Intention adopted by the City Council on September 10, 2024. (c) The official ballot to be mailed or delivered by the City Clerk to each landowner - voter shall have printed or type d thereon the name of the landowner -voter and the number of votes to be voted by the landowner -voter and shall have appended to it a certification to be signed by the person voting the official ballot which shall certify that the person signing the certification is the person who voted the official ballot, and if the landowner -voter is other than a 175
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natural person, that he or she is an officer of or other person affiliated with the landowner -voter entitled to vote such official ballot, that he or she has bee n authorized to vote such official ballot on behalf of the landowner -voter, that in voting such official ballot it was his or her intent, as well as the intent of the landowner -voter, to vote all votes to which the landowner -voter is entitled based on its land ownership on the propositions set forth in the official ballot as marked thereon in the voting square opposite each such proposition, and further certifying as to the acreage of the landowner-voter’s land ownership within CFD No. 116M. (d) The return identification envelope to be mailed or delivered by the City Clerk to each landowner -voter shall have printed or t yped thereon the following: (i) the name of the landowner, (ii) the address of the landowner, (iii) a declaration under penalty of perjury st ating that the voter is the landowner or the authorized representative of the landowner entitled to vote the enclosed ballot and is the person whose name appears on the identification envelope, (iv) the printed name and signature of the voter, (v) the address of the voter, (vi) the date of signing and place of execution of the declaration, and (vii) a notice that the envelope contains an official ballot and is to be opened only by the City Clerk.
(e) The instructions to voter form to be mailed or delivered by the City Clerk to the landowner-voter shall infor m them that the official ballot shall be returned to the City Clerk properly voted as provided thereon and with the certification appended thereto properly completed and signed in the sealed return identi fication envelope with the certification thereon completed and signed and all other information to be inserted thereon properly inserted by 2:00 p.m. on the date of the special election; provided that if all qualified el ectors have voted, the election shall be closed with the concurrence of the City Clerk. (f) Upon receipt of the return identification envelopes which are returned prior to the voting deadline on the date of the election, the City Clerk shall canvass the votes cast in the special election, and shall file a statement with the City Council as to the results of such canvass and the election on each proposition set forth in the official ballot.

Section 6. Effective Date. This Resolution shall take effect immediately from and after the date of its passage and adoption.
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APPROVED AND ADOPTED this 22nd day of October, 2024.

READ AND APPROVED AS TO LEGAL FORM:
_____________________________________
City Attorney

I, Germaine Key, City Clerk of the City of Fontana, do hereby certify that the foregoing resolution is the actual resolution duly and regularly adopted by the City of Fontana at a regular meeting on the 22nd 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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A-1

EXHIBIT “A”

FORM OF OFFICIAL BALLOT

SPECIAL ELECTION FOR

CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 116M

COUNTY OF SAN BERNARDINO

STATE OF CALIFORNIA
October 22, 2024

This ballot represents ___ votes.

To vote, mark a cross (+) or “X” in the voting square after the wo rd “YES” or after the word “NO.” All marks otherwise made are forbidden.

If you wrongly mark, tear, or deface this ballot, return it to the City Clerk a nd obtain another.

PROPOSITION A : “Shall the City of Fontana, Community
Facilities District No. 116M, County of San Bernardino, State of California, subject to accountability measures required pursuant to Government Code Section 50075.1, levy a special t ax annually on taxable property therein, to pay the costs of certain services as defined and for the purposes specified in the Resolution of Formation adopted by the City Council of the City of Fontana on October 22, 2024 (the “Resolution of Formation”), t o accumulate and fund the maintenance of parks, parkways, street lighting and open space, including any incidental expenses authorized by the Mello -Roos Community Facilities Act of 1982, and any other expense required in order to carry out the authorized purposes of Community Facilities District No. 116M and within and surrounding the area of any territory to be annexed to Community Facilities District No. 116M in the future, and to levy and collect the special tax, so long as the special tax is needed to p ay for the services and for such other purposes, at the special tax rates and pursuant to the Rate and Method of Apportionment for the City of Fontana Community Facilities District No. 116M, County of San Bernardino, State of California, which is attached as Exhibit “C” to the Resolution of Formation adopted by the City Council of the City of Fontana on October 22, 2024?”

Yes

No

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PROPOSITION B : “Shall the City of Fontana Community
Facilities District No. 116M, County of San Bernardino, Stat e of California, establish an annual appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, in the amount of $5,000,000?”

Yes

No

PROPOSITION A IS SUBJECT TO THE ACCOUNTABILITY MEASURES PRESCRIBED IN SECTION 50075 OF THE GOVERNMENT CODE OF THE STATE OF CALIFORNIA.

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RESOLUTION NO. _______

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

FONTANA DECLARING THE RESULTS OF THE

SPECIAL ELECTION WITHIN THE CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 116M,

COUNTY OF SAN BERNARDINO, STATE OF

CALIFORNIA
WHEREAS, the City Council (the “City Council”) of the City of Fontana (the “City”) has conducted proceedings under and pursuant to the terms of the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311) of Part 1 of Divisi on 2 of Title 5 of the California Government Code (the “Act”) to form the City of Fontana Community Facilities District No. 116M, County of San Bernardino, State of California (“CFD No. 116M”); and

WHEREAS, in connection therewith, the City Council adop ted a resolution calling a special election for October 22, 2024 (the “Election Resolution”), and submitted to the qualified electors of CFD No. 116M the propositions described therein with respect to the annual levy of special taxes on taxable property within CFD No. 116M to pay the costs of certain services to be provided by CFD No. 116M and related expenses and establishing an appropriations limit for CFD No. 116M; and

WHEREAS, a special mail-ballot election has been conducted pursuant to the foregoing; and

WHEREAS, pursuant to the Election Resolution, the City of Fontana City Clerk (the “City Clerk”) was authorized to conduct the special election for CFD No. 116M and act as the election official therefor; and

WHEREAS, the City Council has received a statement from the City Clerk with respect to the canvass of the ballot returned and the result s of the special election, certifying that more than two -thirds of the votes cast upon the propositions submitted to the voters in the special election in CFD No. 116M were cast in favor of all such propositions.

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

Section 1. Findings. The above recitals are true and correct and are incorporated herein by this reference, and the City Council finds and determines as follows:

(a) There were no persons registered to vote within the boundaries of CFD No. 116M at the time of the close of the protest hearing on October 22, 2024, and pursuant to Section 53326 of the Act (“Section 53326”) the vote in the special election for CFD No. 116M was, therefore, by the landowners owning taxable property within CFD No. 116M, with each landowner having 180
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one vote for each acre or portion of an acre of land t hat they own within CFD No. 116M which would have been subject to the special tax if levied at the time of the special election; (b) pursuant to Section 53326 of the Act and the Election Resolution, the City Clerk distributed the ballot for the special election to D.R. Horton Los Angeles Holding Company, Inc., a California corporation, the owner of all of the taxable property included within the boundaries of CFD No. 116M (the “Property Owner”), by mail or personal delivery;

(c) The Property Owner waived the conduct and time limits for holding the special election and the election date pursuant to the Act, and consented to the calling and holding of the special election on October 22, 2024;

(d) The special election has been properly conducted in accordance with all statutory requirements and the provisions of the Election Resolution;

(e) The official ballot was returned by the Property Owner to the City Clerk prior to the hour on the date of the special election specified by the City Council for the return of voted ballots;

(f) The official ballot returned to the City Clerk by the Property Owner voted all votes to which it was entitled in favor of all propositions set forth therein;

(g) More than two-thirds of the votes cast in the special election on each such proposition were cast in favor thereof, and pursuant to Sections 53328 and 53329 of the Act, all such propositions carried;

(h) The City Council, as the legislative body of CFD No. 116M, is therefore authorized to take the necessary action to have CFD No. 116M annually levy special taxes on taxable property within CFD No. 116M in amounts sufficient to pay the costs of public services to be provided by CFD No. 116M and related expenses; and

(i) An appropri ations limit for CFD No. 116M has been established in the amou nt of $5,000,000.

Section 2 . Declaration of Results . All votes voted in the special election on the propositions with respect to ( a) the annual levy of special taxes on taxable property within CFD No. 116M to pay the costs of the services to be provided by CFD No. 116M and related expenses, and (b) establishing an appropriations limit for CFD No. 116M in the amount of $5,000,000 were voted in favor thereof, and all such propositions carried.

Section 3. Effect of Election . The effect of the results of t he special election , as specified in Section 2 hereof, is that the City Council, as the legislative body of CFD No. 116M, is authorized (i) to annually levy special taxes on taxable property within CFD No. 116M in an amount sufficient to pay the costs of the services to be provided by CFD No. 116M and related expenses at the special tax rates and pursuant to the methodology for determining and apportioning such special taxes which are set for th in the Resolution of Formation , and (ii) establish an appropriations limit for CFD No. 116M in the amount of $5,000,000. 181
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Section 4. Notice of Special Tax Lien . The City Clerk shall record a notice of special tax lien with the County Recorder of the County of San Bernardino pursuant to Section 53328.3 of the Act and Section 3114.5 of the California Streets and Highways Code within fifteen days of the date hereof.

Section 5. Effective Date. This Resolution shall take effect immediately from and after the date of its passage and adoption.

APPROVED AND ADOPTED this 22nd day of October, 2024.

READ AND APPROVED AS TO LEGAL FORM:
_____________________________________
City Attorney

I, Germaine Key, City Clerk of the City of Fontana, do hereby certify that the foregoing resolution is the actual resolution duly and regula rly adopted by the City of Fontana at a regular meeting on the 22nd 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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ORDINANCE NO. _________

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY

OF FONTANA, ACTING AS THE LEGISLATIVE BODY OF

THE CITY OF FONTANA COMMUNITY FACILITIES
DISTRICT NO. 116M, COUNTY OF SAN BERNARDINO,

STATE OF CALIFORNIA, AUTHORIZING THE LEVY OF

SPECIAL TAX ES IN SUCH COMMUNITY FACILITIES

DISTRICT

WHEREAS, the City Council (the “City Council”) of the City of Fontana (the “City”), California has, among other things, initiated proceedings, held a public hearing, conducted an election, and received a favorable vote from the qualified electors authorizing the levy of special taxes in the City of Fontana Community Facilities District No. 116M, County of San Bernardino, State of California (the “District”) , all as authorized pursuant to the terms and provisions of the Mello-Roos Co mmunity Facilities Act of 1982, being Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code (the “Act”).

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

Section 1. This City Council does, by the passage of this Ordinance, authorize the levy of special taxes on taxable properties located in the District pursuant to that certain Rate and Method of Apportionment as set forth in Appendix “A” attached hereto and incorporated herein by this reference (the “Rate and Method”).

Section 2. This City Council, acting as the legislative body of the District, is hereby further authorized, by resolution, to annually determine the special tax to be levied within the District for the then current tax year and all future tax years; provided, however, the special tax to be levied shall not exceed the maximum special tax authorized to be levied pursuant to the Rate and Method.

Section 3. The special taxes herein authorized to be levied, to the extent possible, shall be collected in the same manner as ordinary ad valorem property taxes and shall be subject to the same penalties and the same procedure, sale , and lien priority in any case of delinquency as applicable for ad valorem property taxes; provided, however, the District may, by resolution, elect to collect the special taxes at a different time or in a different manner if necessary to meet its financial obligations.

Section 4. The special taxes aut horized to be levied shall be secured by the lien imposed pursuant to Sections 3114.5 and 3115.5 of the California Streets and Highways Code, which lien shall be a continuing lien and shall secure each levy of the special taxes. The lien of the special t ax shall continue in force and effect until the special tax obligation is canceled in accordance with law or until the special tax ceases to be levied by the City Council.

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Section 5. This Ordinance shall be effective thirty (30) days after its adoption. Within fifteen (15) days after its adoption, the City Clerk shall cause this Ordinance , or a summary of it, to be published in a newspaper of general circulation in the City.

APPROVED AND ADOPTED ____ day of ______________, 2024
READ AND APPROVED AS TO LEGAL FORM:

____________________________________________
City Attorney

I, Germaine McClellan Key, City Clerk of the City of Fontana, and Ex-Officio Clerk of the City Council, do hereby certify that the foregoing Ordinance is the actual Ordin ance adopted by the City Council and was introduced at a regular meeting on the 22nd day of October, 2024, and was finally passed and adopted on the _________ day of ________, 2024 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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A-1

APPENDIX A

RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 116M OF THE

CITY OF FONTANA, COUNTY OF SAN BERNARDINO,

STATE OF CALIFORNIA

A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels of Taxable Property in City of Fontana Community Facilities District No. 116M ("CFD No. 116M") and collected each Fiscal Year, commencing in Fiscal Year 2025 -2026, in an amount determined by the City Council of the City of Fontana, through the application of the Rate and Method of Apportionment as described below. All of the real property in CFD No. 116M, 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 applicab le final map, parcel map, condominium plan, or other recorded County map or the land area calculated to the reasonable satisfaction of the CFD Administrator using the boundaries set forth on such map or plan.

"Act" means the Mello -Roos Community Facilitie s Act of 1982, as amended, being Chapter 2.5, of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.

"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 116M, including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County or otherwise); the costs to the City, CFD No. 116M or any designee thereof of complying with City or CFD No. 116M disclosure requirements; the costs ass ociated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 116M or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees and third party expenses. Administrativ e Expenses shall also include amounts estimated or advanced by the City or CFD No. 116M for any other administrative purposes of CFD No. 116M, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.

"Assessor’s Parcel" means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
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A-2

"Assessor’s Parcel Map" means an official map of the County Assessor of the County of San Bernardino designating parcels by Assessor’s Parcel Number.

“Assessor’s Parcel Number” means that number assigned to an Assessor’s Parcel by the County of San Bernardino for purposes of identification.

"CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, providing for the levy and collection of the Special Taxes, and performing other duties as set forth herein.

“CFD No. 116M” means the City of Fontana Community Facilities District No. 116M.

"City" means the City of Fontana, California.

"Council" means the City Council of the City of Fontana, acting as the legislative body of CFD No. 116M.

"County" means the County of San Bernardino.

"Developed Property" means, for each Fiscal Year, all Assessor’s Parcels of Taxable Property for which (i) a Final Residential Subdivision has been recorded with the County as of January 1 of the previous Fiscal Year or (ii) a building permit for new construction has been issued on or before January 1 of the previous Fiscal Year for a non -residential use.

"Final Residential Subdivision" means a Final Subdivision that creates individual lots for which building permits may be issued for residential dwelling units without further subdivision of such property.

"Final Subdivision" means (i) a subdivision of property by recordation of a final map, parcel map, or lot line adjustment approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) that creates individual lo ts or parcels for which building permits may be issued, or (ii) for condominiums, a final map approved by the City and a condominium plan recorded pursuant to California Civil Code Section 4285 that creates an individual lot(s) for which a building permit(s) may be issued without further subdivision. The term "Final Subdivision" shall not include any Assessor’s Parcel Map or subdivision map or portion thereof that does not create individual lots for which a building permit may be issued, including Assessor’s Parcels that are designated as remainder parcels. Notwithstanding the above, a condominium plan for which one or more building permits have been issued, but no individual lots have been created for such building permits, shall be considered a Final Subdivision, and the portion of the condominium plan for which building permits have been issued shall be defined as Developed Property.

"Fiscal Year" means the period starting July 1 and ending on the following June 30. 186
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A-3

"Land Use Class" means any of the classes listed in Table 1 below.

"Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C hereof, that can be lev ied by CFD No. 116M in any Fiscal Year on any Assessor’s Parcel.

"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.

"Property Owner Association Property" means, for each Fiscal Year, any Assessor’s Parcel within the boundaries of CFD No. 116M that was owned by or irrevocably offered for dedication to a property owner association, including any master or sub-association, as of January 1 of the previous Fiscal Year.

“Proportionately” means, for Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor’s Parcels of Developed Property.

"Public Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 116M 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. To ensure that property is classified as Public Property in the first Fiscal Year after it is acquired by, irrevocably offered for dedication to, or dedicated to a public agency, the property owner shall notify the CFD Administrator in writing of such acquisition, offer, or dedication not later than June 30 of the Fiscal Year in which the acquisition, offer, or dedication occurred.

“Rate and Method of Apportionment” means this Rate and Method of Apportionment of Special Taxes for CFD No. 116M.

"Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property, to fund the Special Tax Requirement.

"Special Tax Requirement" means that amount required in any Fiscal Year for CFD No. 116M to pay for: (1) maintenance services authorized to be financed by CFD No. 116M, (2) Administrative Expenses, (3) anticipated delinquent special taxes (such delinquent special taxes shall b e estimated based on the delinquency rate in CFD No. 116M for the previous Fiscal Year), and (4) less a credit for funds available to reduce the annual Special Tax levy, if any, as determined by the CFD Administrator.

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A-4

"Taxable Property" means all of the A ssessor’s Parcels within the boundaries of CFD No. 116M which are not exempt from the Special Tax pursuant to law or Section E below.

“Undeveloped Property” means, for each Fiscal Year, all Assessor’s Parcels of Taxable Property which are not categorized as Developed Property.

"Welfare Exemption" means, for each Fiscal Year, any Assessor's Parcel that is subject to a welfare exemption under subdivision (g) of Section 214 of the California Revenue and Taxation Code (or any successor statute), as indicated in the County’s assessment roll finalized as of the last preceding January 1.

B. ASSIGNMENT TO LAND USE CATEGORIES

For each Fiscal Year, commencing with Fiscal Year 2025 -2026, all Taxable Property within CFD No. 116M shall be categorized as either Developed Property or Undeveloped Property, and shall be subject to the Special Tax in accordance with the rate and method of apportionment determined pursuant to Sections C and D below.

C. MAXIMUM SPECIAL TAX RATE

1. Developed Property

The Fiscal Year 2025 -2026 Maximum Special Tax for each Assessor’s Parcel classified as Developed Property shall be equal to the amount shown in the table below:

TABLE 1
Fiscal Year 2025-2026
Maximum Special Tax for Developed Property
Land Use Class FY 2025-2026 Maximum Special Tax
Final Residential Subdivision $737 per lot
Non-Residential Property $8,217 per Acre

On each July 1, commencing July 1, 2026, the Maximum Special Tax for Developed Property shall increase by two percent (2%) per Fiscal Year.

2. Undeveloped Property

The Maximum Special Tax for each Assessor’s Parcel classified as Undeveloped Property shall be equal to $0 per Acre.
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A-5

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX

Commencing with Fiscal Year 2025 -2026 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement and the City shall provide for the levy of the Special Tax until the total Special Tax levy equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows:

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

E. EXEMPTIONS

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

The exempt status of any property will be determined by the CFD Administrator and such determination shall be final.

F. MANNER OF COLLECTION

The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, and the same procedure, sale and lien priority in case of delinquency as is provided for ad valorem property taxes; provided, however, that CFD No. 116M may directly bill the Special Tax, and/or may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of CFD No. 116M.

G. TERM OF SPECIAL TAX

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

H. APPEALS

Any landowner or resident who feels that the amount of the Special Tax levied on his/her Assessor’s Parcel is in error may submit a written appeal to the CFD Administrator, 189
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A-6

provided that the appellant is current in his/her payment of Special Taxes. During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, a cash refund shall not be made (except for the last year of levy ), but the amount of the Special Tax levied shall be appropriately modified, reduced, or eliminated through an adjustment to the Special Tax levy in the following Fiscal Year. If the CFD Administrator disagrees with the appellant and the appellant is diss atisfied with the determination, the appellant then has thirty (30) days in which to appeal to the Council by filing a written notice of appeal with the City Clerk, provided that the appellant is current in his/her payment of Special Taxes. This second ap peal must specify the reasons for its disagreement with the CFD Administrator's determination.

The CFD Administrator shall interpret this Rate and Method of Apportionment for purposes of clarifying any ambiguity and make determinations relative to the ann ual administration of the Special Tax and any landowner or resident appeals. Any decision of the CFD Administrator shall be subject to appeal to the Council whose decision shall be final and binding as to all persons.

I. PREPAYMENT

No prepayments of the Special Tax are permitted.

190
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COMMUNITY FACILITIES

DISTRICT REPORT

CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 116M
Report Date: September 30, 2024
191
www.FinanceDTA.com 18201 Von Karman Avenue, Suite 220
Irvine, CA 92612

COMMUNITY FACILITIES DISTRICT REPORT
FOR

CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 116M
Prepared for:

City of Fontana
8353 Sierra Avenue
Fontana, CA 92335
192
TABLE

OF CONTENTS

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

III DESCRIPTION AND ESTIMATED COSTS OF PUBLIC
SERVICES ................................ ................................ .......... 3 A Description of Public Services ................................ ......... 3 B Estimated Costs of Public Services ................................ . 3 C Incidental Expenses ................................ ............................ 3 IV RATE AND METHOD OF APPORTIONMENT .............. 4
A Explanation for Special Tax Apportionment ................. 4 B Maximum Special Tax ................................ ........................ 4 C Apportionment of Special Taxes ................................ ..... 4 D Accuracy of Information ................................ ................... 5 V BOUNDARIES OF THE CFD ................................ ............ 6 VI GENERAL TERMS AND CONDITIONS ......................... 7 A Substitution of Facilities and Services ........................... 7 B Appeals and Interpretations ................................ ............. 7 C Prepayment of Special Tax ................................ ............... 7

APPENDICES

APPENDIX A RATE AND METHOD OF

APPORTIONMENT

APPENDIX B BOUNDARY MAP
193
1 SECTION I

INTRODUCTION
City of Fontana September 30, 2024
Community Facilities District No. 116M
www.FinanceDTA.com

I INTRODUCTION
WHEREAS, the City Council of the City of Fontana (hereinafter referred to as the "Council") did, pursuant to the provision of the "Mello -Roos Community Facilities Act of 1982," being Chapter 2.5, Part 1, Division 2 of Title 5 (commencing with Section 53311) of the Government Code of the State of California (hereinafter referred to as the "Act"), and specifically Section 53321.5 thereof, expressly order the filing of a written "Report" with the legislative body of the proposed Community Facilities District(“CFD”). This CFD being City of FontanaCFD No. 116M shall hereinafter be referred to as:
"CFD No. 116M"; and,
WHEREAS, on September 10 , 2024 , Council, pursuant to the Act, adopted a resolution entitled “RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FONTANA DECLARING ITS INTENTION TO ESTABLISH CITY OF FONTANA COMMUNITY FACILITIES DISTRICT NO. 116M, TO AUTHORIZE THE LEVY OF A SPECIAL TAX THEREIN TO FINANCE THE PROVISION OF CERTAIN PUBLIC SERVICES , AND TAKING OTHER ACTIONS THERETO " (hereinafter referred to as the "Resolution of Intention") directing that the Report generally contain the following:

1. A brief description of the services by type that will be required to adequately meet the needs of CFD No. 116M; and

2. An estimate of the fair and reasonable cost of providing the public services and the incidental expenses to be incurred in connection therewith.

WHEREAS, each officer of the City of Fontana (hereinafter referred to as the "City") who is or will be responsible for providing one or more of the proposed types of public services to be financed by CFD No. 116M has hereby directed DTA, Inc. (“DTA”) to study the proposed CFD No. 116M and, at or before the time of the public hearing on the establishment of CFD No. 116M, file the Report with Council pursuant to the provisions of the Resolution of Intention.

NOW, THEREFORE, DTA does hereby submit the Report.
194
2 SECTION II

PROJECT DESCRIPTION
City of Fontana September 30, 2024
Community Facilities District No. 116M
www.FinanceDTA.com

II PROJECT DESCRIPTION
CFD No. 116M encompasses approximately 11 gross acres of land within the Citylocated at the south-east corner of Sierra Lakes Parkway and Lytle Creek Road. This property is expected to be developed into a total of 127 residential units subject to a Mello -Roos Special Tax1.
1 Please note that all capitalized terms used herein, unless otherwise indicated, shall have the meanings defined in the Rate and Method of Apportionment for CFD No. 116M. 195
3 SECTION III

DESCRIPTION AND ESTIMATED

COSTS OF PUBLIC SERVICES
City of Fontana September 30, 2024
Community Facilities District No. 116M
www.FinanceDTA.com

III DESCRIPTION AND ESTIMATED COSTS OF PUBLIC SERVICES
A community facilities district may finance any one or more of the following types of services: police protection services, including, but not limited to, criminal justice services, fire protection and suppression services, and ambulance and paramedic services, recreation program services, library services, and the operation and maintenance of museums and cultural facilities, maintenance of parks, parkways and open space, flood and storm protection services, including, but not limited to, the operation and maintenance of storm drainage systems, and sandstorm protection systems, and services with respect to removal or remedial action for the cleanup of any hazardous substance released or threatened to be released into the environment. The authorized services may be financed only to the extent that such services are in addition to those services provided in the community facilities district prior to creation of the community facilities district.

A Description of Public Services
The types of public services to be financed by CFD No. 116M are the maintenance of parks, parkways, street lighting and open space within and surrounding the area of the District and within and surrounding the area of any territory to be annexed to the District in the future.

B Estimated Costs of Public Services
The Special Tax for CFD No. 116M has been established to pay for the public services described above at $737 per residential lot for Fiscal Year 2025-2026. This amount shall be subject to an annual increase of two (2%)as specified in Section C.1 of the Rate and Method of Apportionment (defined herein).

The maximum Fiscal Year 202 5-2026 costs for Maintenance Services is estimated at approximately $94,000, assuming buildout. These costs are expected to be fully funded by CFD No. 116M at buildout.

C Incidental Expenses to be Included in the Annual Levy of Special Taxes Pursuant to Section 53340 of the Act, the proceeds of any special tax may only be used to pay, in whole or part, the costs of providing public facilities, services and incidental expenses. While the actual costs of administeringCFD No. 116M may vary, it is anticipated that the amount of Special Taxes which can be collected will be sufficient to fund at least $ 7,000 in annual administrative expensesfor Fiscal Year 2025-2026, which shall also be subject to an annual increase of two (2%) annually.
196
4 SECTION IV

RATE AND METHOD OF

APPORTIONMENT
City of Fontana September 30, 2024
Community Facilities District No. 116M
www.FinanceDTA.com

IV RATE AND METHOD OF APPORTIONMENT
All of the property located withinCFD No. 116M, unless exempted by law or by the Rate and Method of Apportionment (defined below), shall be taxed for the purpose of funding public services authorized to be financed byCFD No. 116M. Pursuant to Section 53325.3 of the Act, the tax imposed “is a special tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property.” The special tax “may be based on benefit received by parcels of real property, the costs of making authorized facilities o r authorized services available to each parcel or other reasonable basis as determined by the legislative body,” although the special tax may not be apportioned on an ad valorem basis pursuant to Article XIIIA of the California Constitution.

The rate and method of apportionment of the special tax (the "Rate and Method of Apportionment") proposed to be levied withinCFD No. 116M is described in Exhibit C to the Resolution of Intention. This proposed Rate and Method of Apportionment, also provided herein as Appendix A, provides information sufficient to allow each property owner within CFD No. 116M to estimate the maximum annual Special Tax he or she will be required to pay.

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

A Explanation for Special Tax Apportionment
When a community facilities district is formed, a special tax may be levied on each parcel of taxable property within the community facilities district to pay for the construction, acquisition and rehabilitation of public facilities, to pay for authorized services or to repay bonded indebtedness or other related expenses incurred by a community facilities district.

This special tax must be apportioned in a reasonable manner; however, the tax may not be apportioned on an ad valorem basis.

Based on the types of public services that are proposed forCFD No. 116M, the Special Taxes assigned to Developed Property are generally proportionate to the relative benefits received by them, and, accordingly, the Special Taxes in CFD No. 116M can be considered fair and reasonable.

B Maximum Special Tax
Table 1 within the Rate and Method of Apportionment lists the Fiscal Year 2025-2026 Maximum Special Tax that may be levied against Developed Property within CFD No. 116M to fund the Special Tax Requirement. On each July 1, commencing July 1, 2026, the Maximum Special Tax shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year. No Special Tax shall be levied on Undeveloped Property, Public Property, or Property Owner Association Property in CFD No. 116M.

C Apportionment of Special Taxes
Each year the Special Tax shall be levied subject to the methodology and Maximum Special 197
5 SECTION IV

RATE AND METHOD OF

APPORTIONMENT
City of Fontana September 30, 2024
Community Facilities District No. 116M
www.FinanceDTA.com
Taxes set forth in the Rate and Method of Apportionment, in an amount sufficient to meet the appropriate special tax requirement.

The amount of the special tax requirement that is apportioned to each parcel is determined through the application of Section D of the Rate and Method of Apportionment.

D Accuracy of Information
In order to establish the Maximum Special Tax rates forCFD No. 116M as set forth in the Rate and Method of Apportionment, DTA has relied on information which was provided to DTA by others. DTA has not independently verified such data and disclaims responsibility for the impact of inaccurate data, if any, on the Rate and Method of Apportionment forCFD No. 116M, including the inability to meet the financial obligations within CFD No. 116M. 198
6 SECTION V

BOUNDARIES OF THE CFD
City of Fontana September 30, 2024
Community Facilities District No. 116M
www.FinanceDTA.com

V BOUNDARIES OF THE CFD
The boundaries of CFD No. 116M include all land on which the Special Taxes may be levied.

A reduced scale map showing the boundaries of CFD No. 116M is provided herein as Appendix B. A full-scale map is on file with the City Clerk of the City and was recorded o n September 24, 2024, in Book 91 of Maps of Assessment and Community Facilities Districtsat

of San Bernardino.
199
7 SECTION VI

GENERAL TERMS AND

CONDITIONS
City of Fontana September 30, 2024
Community Facilities District No. 116M
www.FinanceDTA.com

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

B Appeals and Interpretations
Any landowner or resident who feels that the amount of the Special Tax levied on his/her Assessor’s Parcel is in error may submit a written appeal to the CFD Administrator, provided that the appellant is current in his/her payment of Special Taxes. During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, a cash refund shall not be made (except for the last year of levy), but the amount of the Special Tax levied shall be appropriately modified, reduced, or eliminated through an adjustment to the Special Tax levy in the following Fiscal Year. If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has thirty (30) days in which to appeal to the Council by filing a written notice of appeal with the City Clerk, provided that the appellant is current in his/her payment of Special Taxes. This second appeal must specify the reasons for its disagreement with the CFD Administrator's determination.

The CFD Administrator shall interpret this Rate and Method of Apportionment for purposes of clarifying any ambiguity and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals. Any decision of th e CFD Administrator shall be subject to appeal to the Council whose decision shall be final and binding as to all persons.

C Prepayment of Special Tax
Pursuant to Section I of the Rate and Method of Apportionment, the Special Tax cannot not be prepaid.
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APPENDIX A
City of Fontana
Community Facilities District No. 116M

RATE AND METHOD OF

APPORTIONMENT
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Community Facilities District No. 116M Page 1

RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 116M OF THE

CITY OF FONTANA, COUNTY OF SAN BERNARDINO,

STATE OF CALIFORNIA
A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels of Taxable Property in City of Fontana Community Facilities District No. 116M ("CFD No. 116M") and collected each Fiscal Year , commencing in Fiscal Year 2025-2026, in an amount determined by the City Council of the City of Fontana, through the application of the Rate and Method of Apportionment as described below. All of the real property in CFD No. 116M, 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 t he CFD Administrator using the boundaries set forth on such map or plan.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 116M, including, but not limited to : the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County or otherwise); the costs to the City, CFD No. 116M or any designee thereof of complying with City or CFD No. 116M disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 116M or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 116M for any other administrative purposes of CFD No. 116M, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.
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"Assessor’s Parcel" means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
"Assessor’s Parcel Map" means an official map of the County Assessor of the County of San Bernardino designating parcels by Assessor’s Parcel Number. “Assessor’s Parcel Number” means that number assigned to an Assessor’s Parcel by the County of San Bernardino for purposes of identification. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, providing for the levy and collection of the Special Taxes, and performing other duties as set forthherein. “CFD No. 116M” means the City of Fontana Community Facilities District No. 116M.
"City" means the City of Fontana, California.
"Council" means the City Council of the City of Fontana, acting as the legislative body of CFD No. 116M.
"County" means the County of San Bernardino.
"Developed Property" means, for each Fiscal Year, all Assessor’s Parcels of Taxable Property for which (i) a Final Residential Subdivision has been recorded with the County as of January 1 of the previous Fiscal Yearor (ii) a building permit for new construction has been issued on or before January 1 of theprevious Fiscal Year for a non-residential use.
"Final Residential Subdivision" means a Final Subdivision that creates individual lots for which building permits may be issued for residential dwelling units without further subdivision of such property.
"Final Subdivision" means (i) a subdivision of property by recordation of a final map, parcel map, or lot line adjustment approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq. ) that creates individual lots or parcels for which building permits may be issued, or (ii) for condominiums, a final map approved by the City and a condominium plan recorded pursuant to California Civil Code Section 4285 that creates an individual lot(s) for which a building permit(s) may be issued without further subdivision. The term "Final Subdivision" shall not include any Assessor’s Parcel Map or subdivision map or portion thereof that does not create individual lots for which a building permit may be issued, including Assessor’s Parcels that are designat ed as remainder parcels. Notwithstanding the above, a condominium plan for which 203
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Community Facilities District No. 116M Page 3
one or more building permits have been issued, but no individual lots have been created for such building permits, shall be considered a Final Subdivision, and the portion of the condominium plan for which building permits have been issued shall be defined as Developed Property.
"Fiscal Year" means the period starting July 1 and ending on the following June

30. "Land Use Class" means any of the classes listed in Table 1 below. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C hereof, that can be levied by CFD No. 116M in any Fiscal Year on any Assessor’s Parcel.
"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. “Property Owner Association Property" means, for each Fiscal Year, any Assessor’s Parcel within the boundaries of CFD No. 116M that was owned by or irrevocably offered for dedication to a property owner association, including any master or sub-association, as of January 1 of the previous Fiscal Year. “Proportionately” means, for Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor’s Parcels of Developed Property.
"Public Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 116M 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. To ensure that property is classified as Public Property in the first Fiscal Year after it is acquired by, irrevocably offered for dedication to, or dedicated to a public agency, the property owner shall notify the CFD Administrator in writing of such acquisition, offer, or dedication not later than June 30 of the Fiscal Year in which the acquisition, offer, or dedication occurred. “Rate and Method of Apportionment” means this Rate and Method of Apportionment of Special Taxes for CFD No. 116M.
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"Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property, to fund the Special Tax Requirement. "Special Tax Requirement" means that amount required in any Fiscal Year for CFD No. 116M to pay for: (1) maintenance services authorized to be financed by CFD No. 116M, (2) Administrative Expenses, (3) anticipated delinquent special taxes (such delinquent special taxes shall be estimated based on the delinquency rate in CFD No. 116M for the previous Fiscal Year), and (4) less a credit for funds available to reduce the annual Special Tax levy, if any, as determined by the CFD Administrator.
"Taxable Property" means all of the Assessor’s Parcels within the boundaries of CFD No. 116M which are not exempt from the Special Tax pursuant to law or Section E below.
“Undeveloped Property” means, for each Fiscal Year, all Assessor’s Parcels of Taxable Property which are not categorized as Developed Property. "Welfare Exemption" means, for each Fiscal Year, any Assessor's Parcel that is subject to a welfare exemption under subdivision (g) of Section 214 of the California Revenue and Taxation Code (or any successor statute), as indicated in the County’s assessment roll finalized as of the last preceding January 1.

B. ASSIGNMENT TO LAND USE CATEGORIES
For each Fiscal Year, commencing with Fiscal Year 2025-2026, all Taxable Property within CFD No. 116M shall be categorized as either Developed Property or Undeveloped Property, and shall be subject to the Special Tax in accordance with the rate and method of apportionment determined pursuant to Sections C and D below.

C. MAXIMUM SPECIAL TAX RATE

1. Developed Property
The Fiscal Year 2025-2026 Maximum Special Tax for each Assessor’s Parcel classified as Developed Propertyshall be equal to the amount shown in the table below:
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TABLE 1
Fiscal Year 2025-2026
Maximum Special Tax for Developed Property
Land Use Class FY 2025-2026 Maximum Special Tax
Final Residential Subdivision $737 per lot
Non-Residential Property $8,217 per Acre
On each July 1, commencing July 1, 202 6, the Maximum Special Tax for Developed Property shall increase by two percent (2%) per Fiscal Year.

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

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2025-2026 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement andthe City shall provide for the levy of the Special Tax until the total Special Tax levy equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows:

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

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

The exempt status of any property will be determined by the CFD Administrator and such determination shall be final.
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F. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, and the same procedure, sale and lien priority in case of delinquency as is provided for ad valorem property taxes; provided, however, that CFD No. 116M may directly bill the Special Tax, and/or may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of CFD No. 116M.

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

H. APPEALS
Any landowner or resident who feels that the amount of the Special Tax levied on his/her Assessor’s Parcel is in error may submit a written appeal to the CFD Administrator, provided that the appellant is current in his/her payment of Special Taxes. Duringthe pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, a cash refund shall not be made (except for the last year of levy ), but the amount of the Special Tax levied shall be appropriately modified , reduced, or eliminated through an adjustment to the Special Tax levy in the following Fiscal Year. If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has thirty (30) days in which to appeal to the Council by filing a written notice of appeal with the City Clerk, provided that the appellant is current in his/her payment of Special Taxes. This second appeal must specify the reasons for its disagreement with the CFD Adm inistrator's determination.

The CFD Administrator shall interpret this Rate and Method of Apportionment for purposes of clarifying any ambiguity and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals.

Any decision of the CFD Administrator shall be subject to appeal to the Council whose decision shall be final and binding as to all persons. 207
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I. PREPAYMENT
No prepayments of the Special Tax are permitted.
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APPENDIX B
City of Fontana
Community Facilities District No. 116M

BOUNDARY MAP
209
210
18201 VON KARMAN AVENUE, SUITE 220
IRVINE, CA 926 12
PHONE (800) 969 -4DTA
Public Finance
Public-Private Partnerships
Development Economics
Clean Energy Bonds
www.FinanceDTA.com
211
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3344 Agenda Date: 10/22/2024
Agenda #: A. Category: New Business
FROM:

Finance
SUBJECT:

Fiscal Year 2024-25 First Quarter Budget Status Report
RECOMMENDATION:

Approve the recommended Fiscal Year 2024-25 First Quarter Budget adjustments.

COUNCIL GOALS:
· Operate in a businesslike manner by ensuring that the public debate is based on accurate information.
· Operate in a businesslike manner by correcting problems immediately. · 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 fully funding liabilities and reserves. · Practice sound fiscal management by developing long-term funding and debt management plans.
· 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 utilizing Measure-I Funds wisely.

DISCUSSION:

The City’sbudget is an important policy document, serving as the annual financial plan that identifies the spending priorities for the organization. Quarterly budget status reports are developed and presented to the City Council to provide the most current information on the financial activities of the City upon which to base decisions. Additionally, quarterly reports assist City departments in communicating their financial operations throughout the fiscal year including any program changes and significant impacts to their annual budgets, as well as gauging the City’s budget plan as compared to actual revenue and expenditures. This report includes requested departmental budget adjustments and preliminary year-to-date actuals through Quarter 1 of Fiscal Year 2024-25, covering the period through September 30, 2024.

The current citywide Fiscal Year 2024-25 budget is comprised of a total of 200 funds including the General Fund, Other General Funds (10 funds), Special Revenue Funds (135 funds), Enterprise City of Fontana Printed on 10/17/2024Page 1 of 6
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File #: 21-3344 Agenda Date: 10/22/2024
Agenda #: A. Category: New Business
General Fund, Other General Funds (10 funds), Special Revenue Funds (135 funds), Enterprise Funds (5 funds), Capital Project Funds (36 funds), a Debt Service Fund, an Internal Service Fund, and Other Agency Funds (11 funds). The current total citywide Fiscal Year 2024-25 budget (excluding other agency funds) includes total uses (expenditures and transfers out) for all City funds of $369.2 million and total sources (revenues and transfers in) of $383.7 million. The Recommended Budget includes an increase in total sources of $4.8 million for a total of $388.5 million and an increase in total uses of $25.4 million for a total of $394.5 million. 2024-25 Budget
All City Fund
Proposed
Current Revisions Recommended
Revenues 336,895,380$ 4,211,477$ 341,106,857$ Transfers In 46,784,050$ 635,000$ 47,419,050$ Total Sources 383,679,430$ 4,846,477$ 388,525,907$ Expenditures (322,379,890)$ (24,720,563)$ (347,100,453)$ Transfers Out (46,784,050)$ (635,000)$ (47,419,050)$ Total Uses (369,163,940)$ (25,355,563)$ (394,519,503)$ Results from Operations 14,515,490$ (20,509,086)$ (5,993,596)$

GENERAL FUND
The current Fiscal Year 2024-25 General Fund Operating Budget includes total uses of $171.0 million and total sources of $169.1 million. The Recommended Budget includes an increase in total sources of $310,098 for a total of $169.4 million and an increase in total uses of $2.9 million for a total of $173.9 million. 2024-25 Budget
General Fund (Fund 101)
Proposed
Current Revisions Recommended
Revenues 156,235,240$ 211,280$ 156,446,520$ Transfers In 12,845,430$ 98,818$ 12,944,248$ Total Sources 169,080,670$ 310,098$ 169,390,768$ Expenditures (138,484,360)$ (2,360,714)$ (140,845,074)$ Transfers Out (32,557,320)$ (536,182)$ (33,093,502)$ Total Uses (171,041,680)$ (2,896,896)$ (173,938,576)$ Results from Operations (1,961,010)$ (2,586,798)$ (4,547,808)$ City of Fontana Printed on 10/17/2024Page 2 of 6
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File #: 21-3344 Agenda Date: 10/22/2024
Agenda #: A. Category: New Business
Notable Changes
· Revenue Adjustments - a increase in revenues of $211,280 primarily from the DEA task force reimbursement claims and Omnitrans security agreement. Also, a $98,818 transfer in from Fund #110 for FY23-24 salary savings.
· One-time Requests - Increase appropriations in various operating accounts of $668,282 to fund one-time expenditures and operating transfers out. Notable requests include:
o City Admin - Increase in appropriations of $10,500 for business summit expenses. o Human Resources - Increase in appropriations of $21,500 for HR Intern. o Finance - Transfer out to Facilities Maintenance Fund #103 for various FY23-24 expenditures.
o Public Works & Engineering
• Increase appropriations of $21,700 for Bill Martin scoreboard replacement. • Increase appropriations of $72,000 for Sierra and Summit traffic calming bollard cones.
· Recurring Requests - Increase appropriations in various operating accounts of $39,520 to fund recurring expenditures primarily due to Eddie Baily auditing services, additional security at City Council meetings, and for the Transunion online investigation tool.

Fund Balance Analysis
The recommended 2024-25 ending fund balance of $58.4 million reflects an increase of $7.6 million. Included in the fund balance of are total operating reserves of $35.9 million (which reflects 25% of recurring annual expenditures.

The recommended ending fund balance reserves and designations are revised as follows:
· Future Projects & Reserves - increase in the future projects & reserves balance of $7.6 million for a total of $8.1 million due to the requested one-time use of fund balance as described above and reserves for revenue uncertainties. 2024-25 Budget
General Fund Balance
Proposed
Current Revisions Recommended
Reserved 407,053$ -$ 407,053$ Designated
PERS Rate Stability 10,694,317$ -$ 10,694,317$ Contingencies 35,888,470$ -$ 35,888,470$ Annual Shelter JPA 582,570$ -$ 582,570$ Operating Contingencies 3,000,000$ -$ 3,000,000$ Future Projects & Resv. 500,000$ 7,644,206$ 8,144,206$ Unappropriated -$ -$ -$ Ending Fund Balance 51,072,410$ 7,644,206$ 58,716,616$ City of Fontana Printed on 10/17/2024Page 3 of 6
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File #: 21-3344 Agenda Date: 10/22/2024
Agenda #: A. Category: New Business
Proposed
Current Revisions Recommended
Reserved 407,053$ -$ 407,053$ Designated
PERS Rate Stability 10,694,317$ -$ 10,694,317$ Contingencies 35,888,470$ -$ 35,888,470$ Annual Shelter JPA 582,570$ -$ 582,570$ Operating Contingencies 3,000,000$ -$ 3,000,000$ Future Projects & Resv. 500,000$ 7,644,206$ 8,144,206$ Unappropriated -$ -$ -$ Ending Fund Balance 51,072,410$ 7,644,206$ 58,716,616$

OTHER GENERAL FUNDS
Other General Funds includes a total of 10 funds which are funded by the General Fund for services that support the City’sgeneral operations. The most notable funds include City Technology, Facility Maintenance, Self-Insurance, Retiree Medical Benefits, and General Fund Operating Projects.

The current 2024-25 Other General Funds Operating Budget includes total uses of $32.4 million and total sources of $37.7 million. The Recommended Budget includes an increase in total sources of $540,082 for a total of $38.2 million and an increase in total uses of $701,137 for a total of $33.1 million.
2024-25 Budget
Other General Funds
Proposed
Current Revisions Recommended
Revenues 15,829,090$ 3,900$ 15,832,990$ Transfers In 21,875,040$ 536,182$ 22,411,222$ Total Sources 37,704,130$ 540,082$ 38,244,212$ Expenditures (32,427,480)$ (602,319)$ (33,029,799)$ Transfers Out -$ (98,818)$ (98,818)$ Total Uses (32,427,480)$ (701,137)$ (33,128,617)$ Results from Operations 5,276,650$ (161,055)$ 5,115,595$ Notable Changes
· City Technology - Increase appropriations of $120,000 for security cameras at South Fontana Sports Park.

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File #: 21-3344 Agenda Date: 10/22/2024
Agenda #: A. Category: New Business

OTHER CITY FUNDS
Other City Funds includes a total of 178 funds which Special Revenue Funds, Debt Service Funds, Capital Project Funds, Enterprise Funds, and Internal Service Funds.

The current 2024-25 Other City Funds Operating Budget includes total uses of $165.7 million and total sources of $176.9 million. The Recommended Budget includes an increase in total sources of $4.0 million for a total of $180.9 million and an increase in total uses of $21.8 million for a total of $187.5 million.
2024-25 Budget
Other City Funds
Proposed
Current Revisions Recommended
Revenues 164,831,050$ 3,996,297$ 168,827,347$ Transfers In 12,063,580$ -$ 12,063,580$ Total Sources 176,894,630$ 3,996,297$ 180,890,927$ Expenditures (151,468,050)$ (21,757,530)$ (173,225,580)$ Transfers Out (14,226,730)$ -$ (14,226,730)$ Total Uses (165,694,780)$ (21,757,530)$ (187,452,310)$ Results from Operations 11,199,850$ (17,761,233)$ (6,561,383)$ Notable Changes
· Special Revenue Funds - Decrease in fund balance of $7.1 million primarily due to:
o Federal Asset Seizure (Fund 223)
• Increase appropriations of $1.7 million for PD airship equipment purchase. • Increase appropriations of $650,000 for PD automated license reader. • Increase appropriations of $385,000 for PD drone project. o ARPA - City (Fund 302)
• Increase appropriations of $202,872 to carryover unused FY23/24 org funding to be spent in FY24/25.
o CFD #1 Southridge Village (Fund 401)
• Increase appropriations of $150,000 for backstop footings at Veteran’s Park · Capital Project Funds - Decrease in fund balance of $7.2 million primarily due to:
o Capital Improvement (Fund 602) - Increase appropriations of $4.5 million of carryover FY23-24 QWR1 grant budget Downtown Property Acquisition Funds. o Storm Drain (Fund 622) - Increase appropriations of $1.0 million for Courtplace additional contingency.
o Sewer Expansion (Fund 623) - Increase appropriations of $170,000 for Courtplace additional contingency.

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File #: 21-3344 Agenda Date: 10/22/2024
Agenda #: A. Category: New Business
· Enterprise Funds - Decrease in fund balance of $297,582 primarily due to:
o Stage Red (Fund 720)
• Increase appropriations of $250,200 for carryover funding for FY23-24 Stage Red ASM Global operating agreement.

ORGANIZATIONAL CHANGES
There are no organizational changes listed in the 2024-25 First Quarter Budget Status Report.

FISCAL IMPACT:

The fiscal impact associated with this item is summarized below and details are provided in the First Quarter Budget Status Report.

Sources
Inc/(Dec)
Uses
(Inc)/Dec
Fund Bal Impact
Icr/(Dec)
General Fund 310,098$ (2,909,101)$ (2,599,003)$ Other General Funds 540,082$ (768,760)$ (228,678)$ Other City Funds 3,996,297$ (22,143,649)$ (18,147,352)$ Total 4,846,477$ (25,821,510)$ (20,975,033)$ The General Fund projected ending fund balance reflects a net increase of $7.6 million to a total of $58.7 million because of prior year operations and the net impact of the recommended budget adjustments.

MOTION:

Approve staff recommendation.

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First Quarter Budget Status Report
Fiscal Year 2024/2025
*
Compared to same period prior fiscal year
Quick Look Indicators First Quarter* See Page
Revenues 8
Expenditures 9
Fund Balance 11

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First Quarter Budget Status Report – 2024/2025 City of Fontana October 22, 2024
Table of Contents
Report Objectives .................................................................................................................................................................. 3 Summary of Key Points ....................................................................................................................................................... 4 Results of General Fund Operations for the Prior Year ............................................................................................. 5 Significant Economic Trends .............................................................................................................................................. 6 Summary of Proposed General Fund Adjustments .................................................................................................... 7 General Fund Revenues ...................................................................................................................................................... 8 General Fund Expenditures ................................................................................................................................................ 9 Carryover Projects .............................................................................................................................................................. 10 Fund Balance Review ......................................................................................................................................................... 11 Organizational Changes .................................................................................................................................................... 12 Liability Claims ..................................................................................................................................................................... 13 American Rescue Plan Act Expenditure Plan ............................................................................................................. 14 Conclusion ............................................................................................................................................................................ 15

Schedules:

General Fund – Fund Balance Reconciliation.......................................................................................... 16 Fund Balance – Other Funds ....................................................................................................................... 17 Recommended Adjustments – General Fund ........................................................................................ 23 Recommended Adjustments – Other Funds .......................................................................................... 24

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First Quarter Budget Status Report – 2024/2025 City of Fontana October 22, 2024
Report Objectives
The purpose of the First Quarter Budget Status Report is to:
• Report on the results of the prior fiscal year;
• Comment on significant economic trends;
• Recommend budget changes to address known budget deficiencies which will materially impact fund balance; and • Recommend the reappropriation of prior year project budgets that were not completed as of June 30.

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First Quarter Budget Status Report – 2024/2025 City of Fontana October 22, 2024
Summary of Key Points
General Fund:
• Net increase in General Fund inflows of $ 310,098:
o Increase to Miscellaneous Revenues of $13,500
o Increase to Reimbursables of $197,780
o Transfers in of $98,818
• Net increase in General Fund outflows of $2,896,896:
o Increase to New requests of $360,120
o Transfers out of $536,182
o Carryover appropriations from prior year of $2,000,594 • Unappropriated fund balance has been increased by $7.6 million bringing the balance to $7.6 million.

Other Funds:
• Additional funding for the following projects:
o $1,701,450 Airship equipment purchase (Federal Asset Seizure Fund #223) o $1,000,000 Additional construction contingency for Courtplace project (Storm Drain Fund #622) o $650,000 Automated license plate reader (Federal Asset Seizure Fund #223) o $150,000 Backstop footings at Veteran’s Park (CFD #1 Southridge Village Fund #401) o $170,000 Additional construction contingency for Courtplace project (Sewer Expansion Fund #623) o $120,000 Hardware Replacement Program (City Technology Fund #102)

• This report recommends to carryover encumbrances from prior year in the amount of $8.8 million and recommends the reappropriation of $237.4 million of prior year project budgets that were not completed as of June 30.

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First Quarter Budget Status Report – 2024/2025 City of Fontana October 22, 2024
Results of General Fund Operations for the Prior Year

Revenue Source
FY 23/24
Adopted
Budget
FY 23/24
Revised
Budget
FY 23/24
Actuals
%
Variance from
Adopted
Budget
Variance from
Revised
Budget
Sales Tax $ 57,415,950.00 $ 57,933,778.00 $ 55,948,172 96.57% $ (1,467,777.52) $ (1,985,605.52) Property Tax 40,078,510.00 40,399,365.00 41,365,516 102.39% 1,287,006.33 966,151.33 Interest and Rentals 3,784,080.00 3,784,080.00 6,906,848 182.52% 3,122,768.27 3,122,768.27 Franchises 9,750,430.00 9,750,430.00 10,500,006 107.69% 749,575.90 749,575.90 Business Related 9,805,210.00 11,626,710.00 13,094,073 112.62% 3,288,862.94 1,467,362.94 Development Related 10,381,260.00 10,381,260.00 9,858,148 94.96% (523,112.36) (523,112.36) Recreation 4,095,520.00 4,481,317.00 4,604,668 102.75% 509,148.34 123,351.34 Motor Vehicle in-Lieu 200,000.00 200,000.00 264,152 132.08% 64,151.83 64,151.83 Miscellaneous Revenues 2,341,040.00 2,727,280.00 3,321,718 121.80% 980,677.54 594,437.54 Reimbursables 2,053,450.00 2,069,982.00 1,588,537 76.74% (464,913.15) (481,445.15) From Other Agencies 5,966,550.00 6,114,820.00 5,966,550 97.58% 0.16 (148,269.84) Total Revenues $ 145,872,000.00 $ 149,469,022.00 $ 153,418,388.28 102.64% $ 7,546,388.28 $ 3,949,366.28 Transfers in $ 12,194,470.00 $ 12,416,641.30 $ 11,542,029.40 92.96% $ (652,440.60) $ (874,611.90) Total Expenditures $ 132,674,510.00 $ 140,659,092.90 $ 129,530,267.38 92.09% $ 3,144,242.62 $ 11,128,825.52 Transfers out $ 28,949,870.00 $ 43,810,496.00 $ 43,805,437.97 99.99% $ (14,855,567.97) $ 5,058.03 Results of Operations $ (3,557,910.00) $ (22,583,925.60) $ (8,375,287.67) GASB 31 valuation adjustment
Carryover purchase orders (2,012,799.00) Net First Quarter Adjustments (586,204.00) City of Fontana
Results of Operations
Fiscal Year 2023/2024

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First Quarter Budget Status Report – 2024/2025 City of Fontana October 22, 2024
Significant Economic Trends
Nationally:
• The 3.0% annual rate increase in real GDP primarily reflected increases in consumer spending, private inventory investment, nonresidential fixed investment, and increased imports. Experts anticipate that, The revisions only strengthen our conviction that the US economy will continue to expand at a decent pace over the coming year, which suggests labor market conditions are unlikely to deteriorate markedly from here. Meaning that the US economy is looking stable, moving forward.
• The US unemployment rate is 4.2%, which is higher than the 3.8% rate from the previous year. The number of unemployed people is 7.1 million, which is also higher than the 6.3 million from the previous year. That’s slightly below expectations, with traders and economists considering this to be the most consequential piece of data in years. Job gains came in below projections for August, with a total of 142,000. The consensus estimated monthly expectation was an increase of 160,000, according to Morningstar, an investing firm.

The State of California:
• California’ economic recovery from the brief but sharp recession during the COVID-19 pandemic has been slower than the nation as a whole. Experts say, “the state’s economy is growing, just at a slower-than-typical rate (and) California’s problems relate to a number of unforced policy and fiscal errors, which have created a drag on the state’s ability to grow. A change in approach would serve California well, but this can only occur if we align the narrative about the state’s economy with the reality. The unemployment rate was reported at 5.2%, The jobless rate translates into slightly over 1 million of California’s 19.4 million-person labor force being unemployed. The labor force is defined as adults of working age who either hold jobs or are seeking work.

City of Fontana
• Fiscal Year 2023/24 ended with 701 single family dwelling permits being issued. At the end of September 2024, 83 single family dwelling permits have been issued compared to 170 permits for the prior fiscal year. • First Quarter 24/25 sales were 7% lower than the same quarter one year ago. This is primarily due to the State being behind on sales tax processing. • The Local Agency Investment Fund (LAIF) is currently paying 4.58% (daily rate) on City investments as of September 30, 2024, up from 3.48% for the same time last year. The 2-year treasury benchmark rate as of September 30, 2024, is 3.66% down from 5.03% last year.

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First Quarter Budget Status Report – 2024/2025 City of Fontana October 22, 2024
Summary of Proposed General Fund Adjustments
The First Quarter Budget Report recommends the following General Fund budget adjustments:

Although budget adjustments are recommended across all City funds, the emphasis of the First Quarter Budget Report is directed at the General Fund. The General Fund provides most of the services commonly associated with government (public safety, recreation, parks, building and planning). This report concentrates on budget trends and issues that impact the delivery of services.

Fund Balance
Impact
Results from prior year operations (net)
Fund balance available at the beginning of the fiscal year 10,231,004$ Revenue adjustments
Increase to Miscellaneous Revenues revenue 13,500
In
crease to Reimbursables revenue 197,780 211,280 Expenditure adjustments
New Recurring departmental requests (39,520)$
New One-Time departmental requests (132,100)
Offsetting adjustments (188,500) (360,120) Carryover appropriations from prior year (2,000,594)$
Transfers
Xfer in from Fund #110 for available personnel budget remaining $ 98,818 Xfer to Facilities Maintanence Fund #103 for FY24-25 expenditures (536,182) (437,364) Changes to reserves
Future projects and reserves (7,644,206)
-$

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First Quarter Budget Status Report – 2024/2025 City of Fontana October 22, 2024
General Fund Revenues
Revenues continue to be monitored on a monthly basis. Staff recommends a net increase in revenues of $211,280 as part of the First Quarter Budget Status Report. See page 23 for details of the revenue adjustments.

NOTE: Property Tax in-lieu of VLF collections are lagging due to the State’s distribution which provides for lump-sum payments in January and May. Interest revenue is received starting in October and is followed by a year-end accrual for a full twelve months of interest. A large number of Business Licenses are renewable in December. A large share of Franchise revenues is received annually in the month of April. When adjusted for these anomalies, the percent of recommended budget received is 11.95%.

Revenue Source Adopted Budget
Current Budget
Before
Adjustments
Received as of
9/30/2024
Percent of Current
Budget Received

Recommended
Fourth Quarter
Adjustments
Recommended
Budget After
Adjustments
Percent of
Recommended
Budget Received
Sales Tax 58,638,140$ 57,928,710$ 4,464,597$ 7.71% -$ 57,928,710$ 7.71% Property Tax 41,290,060 43,563,830 63,539 0.15% - 43,563,830 0.15% Interest and Rentals 3,636,180 3,713,070 573,067 15.43% - 3,713,070 15.43% Franchises 10,237,950 11,782,010 386,630 3.28% - 11,782,010 3.28% Business Related 10,066,170 10,848,030 2,432,613 22.42% - 10,848,030 22.42% Development Related 10,381,130 11,947,650 2,195,100 18.37% - 11,947,650 18.37% Recreation 4,176,200 4,176,200 1,209,981 28.97% - 4,176,200 28.97% Motor Vehicle in-Lieu 200,000 250,000 - 0.00% - 250,000 0.00% Miscellaneous Revenues 2,411,030 2,562,480 1,621,895 63.29% 13,500 2,575,980 62.96% Reimbursables 2,129,440 2,653,570 137,482 5.18% 197,780 2,851,350 4.82% From Other Agencies 5,916,550 6,809,690 - 0.00% - 6,809,690 0.00% Total General Fund 149,082,850$ 156,235,240$ 13,084,904$ 8.38% 211,280$ 156,446,520$ 8.36%

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First Quarter Budget Status Report – 2024/2025 City of Fontana October 22, 2024
General Fund Expenditures
General Fund expenditures for First Quarter are on track and within budget. Staff recommends a net decrease in appropriations of $2,360,714. See page 23 for details of the expenditure adjustments.

NOTE: The above amounts do not include projects.

Department Adopted Budget
Current Budget
Before
Adjustments
Spent as of
9/30/2024
Percent of Current
Budget Spent

Recommended
Fourth Quarter
Adjustments
Recommended
Budget After
Adjustments
Percent of
Recommended
Budget Spent
City Administration $ 4,745,090 $ 4,383,330 $ 443,286 10.11% 20,325 $ 4,403,655 10.07% Human Resources 1,405,380 1,936,630 230,788 11.92% 48,000 1,984,630 11.63% Administrative Services 623,230 766,690 102,161 13.32% - 766,690 13.32% City Clerk 883,420 1,107,410 152,143 13.74% - 1,107,410 13.74% Community Services 15,517,660 15,201,090 2,894,341 19.04% (33,480) 15,167,610 19.08% Innovation & Technology 4,848,200 5,071,690 907,515 17.89% 83,904 5,155,594 17.60% Finance 4,587,160 5,099,210 896,403 17.58% 68,000 5,167,210 17.35% Development Services 1,578,290 2,916,500 332,480 11.40% 454,465 3,370,965 9.86% Building and Safety 3,400,150 3,955,420 603,453 15.26% 68,587 4,024,007 15.00% Planning 3,372,090 3,536,700 545,240 15.42% 58,571 3,595,271 15.17% Public Works & Engineering 12,388,550 14,032,800 2,632,517 18.76% 1,201,705 15,234,505 17.28% Police 78,327,180 80,476,890 12,981,321 16.13% 390,637 80,867,527 16.05% Total General Fund $ 131,676,400 $ 138,484,360 $ 22,721,647 16.41% $ 2,360,714 $ 140,845,074 16.13%

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First Quarter Budget Status Report – 2024/2025 City of Fontana October 22, 2024
Carryover Projects
Staff recommends the reappropriation of prior year project budgets that were not completed as of June 30.

Amount Amount
102 City Technology 2,883, 352$ 401 CFD #1 Southridge Village 432,759 103 Facility Maintenance 145,444 601 Capital Reinvestment 38,841,086 110 General Fund Operating Projects 855,211 602 Capital Improvements 3,948,403 223 Federal Asset Seizure 570,421 603 Future Capital Projects 344,883 241 Air Quality Mgmt District 700,656 610 Fire Capital Project 35,840,219 245 Measure I Reimb 2010-2040 13,867, 711 622 Storm Drain 10,653,183 246 Measure I Local 2010-2040 15,178, 033 623 Sewer Expansion 665,621 281 Gas Tax (State) 33,469 630 Circulation Mitigation 14,545,967 282 Solid Waste Mitigation 2,249, 108 631 Fire Assessment 423,922 283 Road Maintenance & Rehab 6,037, 938 632 General Government 12,017,764 295 Permanent Local Hsg Alloc 2,415, 516 633 Landscape Medians 2,297,393 301 Grants 23,484, 375 634 Library Capital Improvement 99,472 302 ARPA 2021 21,313, 386 635 Parks Development 8,471,697 303 TDA/Article 3 554,045 636 Police Capital Facilities 222,656 304 ARPA - County 1,294, 317 698 Affordable Housing Trust 2,040,992 362 CDBG 2,200, 873 702 Sewer Capital Projects 294,000 363 Home Program 6,114, 330 703 Sewer Replacement 6,393,415 $ 237,431,617
Fund Fund

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First Quarter Budget Status Report – 2024/2025 City of Fontana October 22, 2024
Fund Balance Review
The City Council has established an Undesignated General Fund Balance goal of 25% of adopted recurring annual appropriations. The First Quarter Report recommendations maintain this balance. The City’s Undesignated General Fund Balance represents the available resources to provide funding for future contingencies such as earthquakes, economic fluctuations, major infrastructure repairs and investment in capital for improved productivity and efficiencies.

The First Quarter Budget Report recommends the following:
• $7,644,206 Increase to Future Projects and Reserves

Fund Balance Reserves After Adjustments
25% Contingency Reserve $35,888,470
Animal Shelter JPA Reserve $582,570
Operating Contingencies Reserve $3,000,000
Future Projects and Reserves $8,144,206
PERS Rate Stability Reserve $10,694,317
Unappropriated Fund Balance $0
Total $58,309,563

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First Quarter Budget Status Report – 2024/2025 City of Fontana October 22, 2024
Organizational Changes
Quarterly Budget Reports are routinely used to recommend organizational and/or personnel changes within a fiscal year. Upon approval, the total recurring costs for these organizational changes will be added to the department’s target numbers. The changes have been reviewed by Human Resources and comply with City personnel rules.

There are no organizational changes recommended as part of the First Quarter Budget Status Report.

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First Quarter Budget Status Report – 2024/2025 City of Fontana October 22, 2024
Liability Claims
The City Council has authorized the Director of Human Resources and the City Manager to settle liability claims within specified dollar amounts as follows:

City Manager with the concurrence of the City Attorney $25,000 Director of Human Resources/Risk Management with concurrence of the City Attorney $10,000

The City Council has directed staff to report claim settlements as part of each quarterly budget report. There were no liability claims settled during the First Quarter of Fiscal Year 2023/2024.

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First Quarter Budget Status Report – 2024/2025 City of Fontana October 22, 2024
American Rescue Plan Act (ARPA) Expenditure Plan

Approved Projects by Federal Use Category Amount Expended Available Public Health & Economic Response 22,380,404 16,973,685 5,406,720 Fontana Forward Grant Program 190,786 190,786 - Homelessness Prevention Resources and Care Center 5,860,799 5,847,070 13,729 Leveraged Project: Support Government Employment 9,107,438 6,077,319 3,030,119 Metrolink Station Security Cameras 66,411 66,411 - Park Improvements 4,305,834 1,942,962 2,362,872 Vaccine Bonus 526,986 526,986 - Ventilation Upgrade for City Facilities 2,322,150 2,322,150 - Revenue Loss 10,000,000 7,622,948 2,377,052 Parking Structure 10,000,000 7,622,948 2,377,052 Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200)
250,000 50,041 199,959
Administrative Costs 250,000 50,041 199,959 Water, Sewer, and Broadband Infrastructure 16,585,872 6,676,609 9,909,263 Cypress Storm Drain Project 7,340,000 169,360 7,170,640 Data Security & Threat Detection 157,927 157,927 - Endpoint Detection & Response Solution 154,806 154,806 - Fiber to City facilities 1,774,058 37,206 1,736,852 Network Detection & Response Solution - - - Leveraged Project: Accela 3,406,636 3,406,636 - Leveraged Project: Fontana 311 2,452,445 1,953,695 498,750 Septic to Sewer 500,000 13,465 486,535 Sewer and Storm Drain Infrastructure Masterplan 375,130 367,409 7,722 Update Master Infrastructure Plans 424,870 416,105 8,765 Premium Pay 1,040,837 1,040,837 -
Part-Time Employee Retention 152,936 152,936 - Public Safety Premium Pay 887,901 887,900 - Total 50,257,113 32,364,119 17,892,993

CITY OF FONTANA

AMERICAN RESCUE PLAN ACT (ARPA) EXPENDITURE PLAN
ESTIMATED AS OF September 30, 2024

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First Quarter Budget Status Report – 2024/2025 City of Fontana October 22, 2024
Conclusion
The City Council has provided fiscal policy direction that has laid the foundation for the 2024/2025 Operating Budget's conservative approach to revenues and expenditures. The recommended budget changes included in the First Quarter Budget Report continue to adhere to City Council Policy.

As stated by the City Council’s Mission Statement below, the City of Fontana embraces every opportunity to enrich the lives of those who reside in this community, and this is possible due to its committed elected leadership and the talents and ingenuity of the individuals in this community and organization.

The key is through a well-planned, long-term fiscal plan, based upon economic development that will continue to generate high paying long-term employment opportunities, bring in new and stable sales tax revenue sources, and maintaining intergovernmental relations. Though there are still great challenges ahead, the City is firmly committed to meeting each and every challenge that comes our way. “We seek and embrace every opportunity to enrich the lives of those who live, work, play and invest in the City of Fontana.” Mission Statement Adopted April 26, 2022

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First Quarter Budget Status Report - 2024/2025 City of Fontana October 22, 2024
2020/21 2021/22 2022/23 2023/24
Audited Audited Audited Estimated Adopted Adjusted Proposed Proposed Actuals Actuals Actuals Actuals Budget Budget Adjustments Budget 128,044,517$ 135,371,657$ 146,743,017$ 150,992,661$ 149,082,850$ 156,235,240$ 211,280$ 156,446,520$ 100,324,532 111,341,793 118,017,538 129,530,299 131,676,400 138,484,360 2,360,714 140,845,074 27,719,985 24,029,864 28,725,479 21,462,362 17,406,450 17,750,880 (2,149,434) 15,601,446 Other sources & uses:
10,455,858 12,073,139 11,585,264 11,542,029 12,422,520 12,845,430 98,818 12,944,248 (27,553,964) (26,313,909) (26,336,232) (43,805,438) (28,333,200) (32,557,320) (536,182) (33,093,502) (17,098,107) (14,240,770) (14,750,968) (32,263,409) (15,910,680) (19,711,890) (437,364) (20,149,254) 10,621,878 9,789,094 13,974,511 (10,801,047) 1,495,770 (1,961,010) (2,586,798) (4,547,808) 38,692,079 47,728,351 57,517,445 72,639,194 61,055,857 53,033,420 10,231,004 63,264,424 Fund Balance Adjustment 1,147,238 1,426,277
41,009
49,354,966$ 57,517,445$ 72,639,194$ 63,264,424$ 62,551,627$ 51,072,410$ 7,644,206$ 58,716,616$ 253,532$ 375,878$ 407,053$ 407,053$ 375,878$ 407,053$ -$ 407,053$ 2,500,000 0 0 0 0 0 0 0
2,753,532 375,878 407,053 407,053 375,878 407,053 0 407,053 8,514,643 9,469,586 0 0 0 0 0
0 0 0 0 2,357,937 0 0
5,869,393 10,886,393 10,694,317 10,694,317 10,886,393 10,694,317 10,694,317 Annual Shelter JPA 0 0 0 800,000 0 582,570 582,570
Operating Contingencies 0 0 0 3,000,000 0 3,000,000 3,000,000 Future projects and reserves 0 0 0 750,000 0 500,000 7,644,206 8,144,206 16,333,398 20,280,588 38,595,914 14,525,218 15,385,254 0 0 33,470,966$ 41,012,445$ 49,697,284$ 30,176,588$ 29,005,462$ 15,183,940$ 7,644,206$ 22,828,146$ 15,884,000$ 16,505,000$ 22,941,910$ 33,087,836$ 33,546,165$ 35,888,470$ 35,888,470$ Reserved
Fund balance, end of year

FUND BALANCE
Total other sources & uses
Revenues & other sources over (under) expenditures and
other uses
Fund balance, beginning of year
GASB 31 Adjustment
Jr. Lien Bonds
Total reserved
Inventories
Designated
Unappropriated
Total available for contingencies
Economic Uncertainty
CALPERS UAL Forecased Increases
PERS Rate Stability
Operating transfers in
Operating transfers out
General Fund - Fund Balance Reconciliation
Revenues
Expenditures
Revenues over (under) expenditures
(Five-Year Summary)
2024/2025

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First Quarter Budget Status Report - 2024/2025 City of Fontana October 22, 2024
Unaudited
Fund Balance
July 1, 2024
Revenues Transfers In Expenditures Transfers Out Available Net Project
Carryover
Net
Proposed
Adjustments
Estimated
Fund Balance
June 30, 2025
Other General Funds:
102 City Technology 3,508,359$ -$ 7,315,290$ (7,349,550)$ -$ 3,474,099$ (2,883,352)$ (335,602) 255,145$ 103 Facility Maintenance (117,446) 0 9,234,450 (9,354,990) 0 (237,986) (145,444) 412,793 29,363 104 Office of Emergency Services 1,403,709 0 0 (69,530) 0 1,334,179 0 (86,631) 1,247,548 105 KFON 1,832,888 250,000 0 (250,000) 0 1,832,888 0 1,832,888 106 Self Insurance 4,012,688 10,007,050 0 (10,106,100) 0 3,913,638 0 3,913,638 107 Retirees Medical Benefits 2,381,323 260,000 2,600,000 (2,863,380) 0 2,377,943 0 2,377,943 108 Supplemental Retirement 32,312 0 840,620 (35,000) 0 837,932 0 837,932 110 General Fund Operating Projects 1,292,256 0 1,884,680 (2,089,620) 0 1,087,316 (855,211) (151,615) 80,490 115 Lease-Fire 15,898 5,007,540 0 0 0 5,023,438 0 5,023,438 125 Storm Water Compliance 679,218 304,500 0 (309,310) 0 674,408 0 674,408 Total Other General Funds 15,041,205$ 15,829,090$ 21,875,040$ (32,427,480)$ -$ 20,317,855$ (3,884,008)$ (161,055)$ 16,272,792$ Special Revenue Funds:
201 Muni Svcs Fiscal Impact Fee 24,513,416$ 1,250,000$ -$ -$ (1,290,590)$ 24,472,826$ -$ -$ 24,472,826$ 221 Federal Seizure Treasury 164,699 0 0 0 0 164,
699 0 (75,000) 89,699
222 Crime Prev Asset Seizure 45,468 10,000 0 (33,300) 0 22,168 0 22,168 223 Federal Asset Seizure 11,940,040 1,550,000 0 (2,435,990) 0 11,054,050 (570,421) (3,233,300) 7,250,329 224 State Asset Seizure 577,041 78,000 0 (64,940) 0 590,101 0 (10,000) 580,101 225 PD Traffic Safety 2,922,801 400,000 0 (257,000) 0 3,065,801 0 (166,002) 2,899,799 226 Opioid Settlement 413,633 0 0 0 0 413,633 0 413,633 241 Air Quality Mgmt District 1,149,595 304,000 0 (38,360) (12,090) 1,403,145 (700,656) 10,200 712,689 243 Traffic Safety 79,119 45,000 0 (45,020) 0 79,099 0 79,099 244 Prop 1B 140,619 0 0 0 0 140,619 0 140,619
245 Measure I Reimb 2010-2040 (10,641,968) 0 0 0 0 (10,641,968) 10,643,054 (1,086) 0 246 Measure I Local 2010-2040 17,551,271 5,618,200 0 (4,404,420) (450,220) 18,314,831 (15,178,033) (344,993) 2,791,805 281 G
as Tax (State) 2,167,184 6,042,980 0 (6,879,670) (385,440) 945,054 (33,469) (164,671) 746,914 282 Solid Waste Mitigation 8,005,957 3,000,000 0 (2,802,020) (320,230) 7,883,707 (2,249,108) (256,085) 5,378,514 283 Road Maintenance & Rehab 6,
583,533 5,472,950 0 (5,260,690) 0 6,795,793 (6,381,448) - 414,345 301 Grants (5,970,357) 35,449,530 0 (35,449,530) 0 (5,970,357) 6,028,932 (58,575) 0 302 ARPA 2021 21,545,749 0 0 0 0 21,545,749 (21,313,386) (232,363) 0 303 TDA/Article 3 (77,366) 0 0 0 0 (77,366) 77,366 0
304 ARPA - County (707,359) 0 0 0 0 (707,359) 707,359 0 321 Fed Law Enf Block Grant 19 0 0 (2,240) 0 (2,221) 0 2,240 19 322 State COPS AB 3229 1,073,525 300,000 0 (462,770) 0 910,755 0 (70,208) 840,547 Other Funds - Unreserved Fund Balances
Budget
Fiscal Year 2024/2025