Cities Index.
Agenda packet

Fontana City Council
November 12, 2024

Document
Agenda packet
Meeting
November 12, 2024
Body
Fontana City Council
Pages
41
Original file
54.4 MB
Text extracted from the city's file for reading and search. Open the original on fontana.legistar.com. That file is the official record.

2024 Local Agency Biennial Notice
Name of Agency:

Mailing Address:

Contact Person: Phone No.

Email: Alternate Email:

Accurate disclosure is essential to monitor whether officials have conflicts of interest and to help ensure public trust in government. The biennial review examines current programs to ensure that the agency’s code includes disclosure by those agency officials who make or participate in making governmental decisions.

This agency has reviewed its conflict of interest code and has determined that (check one BOX):
 An amendment is required. The following amendments are necessary:
(Check all that apply.)
 Include new positions
 Revise disclosure categories
 Revise the titles of existing positions
 Delete titles of positions that have been abolished and/or positions that no longer make or participate in making governmental decisions
 Other (describe)
 The code is currently under review by the code reviewing body.  No amendment is required. (If your code is over five years old, amendments may be necessary.)
Verification (to be completed if no amendment is required) This agency’s code accurately designates all positions that make or participate in the making of governmental decisions. The disclosure assigned to those positions accurately requires that all investments, business positions, interests in real property, and sources of income that may foreseeably be affected materially by the decisions made by those holding designated positions are reported. The code includes all other provisions required by Government Code Section 87302.
__________________________________________ _________________________ Signature of Chief Executive Officer Date
All agencies must complete and return this notice regardless of how recently your code was approved or amended. Please return this notice no later than October 1, 2024, or by the date specified by your agency, if earlier, to:
(PLACE RETURN ADDRESS OF CODE REVIEWING BODY HERE)
PLEASE DO NOT RETURN THIS FORM TO THE FPPC.
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16498.00001\33384996.1

NOTICE OF INTENTION TO AMEND THE

CONFLICT OF INTEREST CODE OF THE

CITY OF FONTANA
NOTICE IS HEREBY GIVEN that the City of Fontana intends to amend its Conflict of Interest Code (the “Code”) pursuant to Government Code Section 87306.

The Appendix of the Co de designates those employees, members, officers, and consultants who make or participate in the making of decisions and are subject to the disclosure requirements of the City’s Code. The City’s proposed amendment includes new positions that must be designated, revise title of an existing position, revise disclosure categories, and delete titles of positions that have been abolished and/or positions that no longer make or participate in making governmental decisions.

The proposed amended Code will be consi dered by the City Council on November 1 2, 202 4, at 2:00 p.m. at the City Hall, 8 353 Sierra Avenue , Fontana, California.

Members of the public can submit comments in person or via e -mail at [email protected].

Public comments must be received no later than 12:00 P.M. on the day of the meeting and will be added to the record of the meeting. In the subject line of your email, please indicate the item number.

The proposed amended Code may be reviewed at, and copies obtained from, the office of the City Clerk during regular business hours. 222
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3421 Agenda Date: 11/12/2024
Agenda #: K. Category: Consent Calendar
FROM:

Engineering
SUBJECT:

Storm Drain Development Impact Fee Credit Agreement related to Ventana Specific Plan with HDO4, LLC
RECOMMENDATION:

Approve Storm Drain Development Impact Fee Credit Agreement related to Ventana Specific Plan with HDO4, LLC.

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

DISCUSSION:

On July 5, 2022, the City of Fontana’s Planning Commission recommended certification of the Supplemental Environmental Impact Report for the Ventana at Duncan Canyon Specific Plan Amendment Project (SCH. No. 2021100400) (“Supplemental EIR”), and approved MCN20-099R1, SP Amendment No. 21-001, and GP Amendment No. 21-006. On July 26, 2022, the City of Fontana’s City Council certified the Supplemental EIR and approved MCN20-099R1, SPA Amendment No. 21-001, and GPA No. 21-006 within the Ventana Specific Plan.

Chapter 21, Article VI - Construction and/or Dedication In-Lieu of Development Impact Fees (Section 21-151 through 21-154) of the Fontana Municipal Code establishes a policy allowing in-lieu fee credit agreements between the City and developers. This provides an alternative method for satisfying a developer’s obligation to mitigate impacts from the development other than through payment of development impact fees.

Developer has constructed the portion of the storm drain improvement, and in connection with the Ventana Specific Plan and Developer’s cost to construct the Storm Drain Improvements was Five Million Four Hundred Sixty-Three Thousand One Hundred Fifty Dollars ($5,463,150) (“Improvement Value”), thus exceeding the Fair Share Obligation by Five Million One Hundred Seventy-Four Thousand One Hundred Seven and 41/100 Dollars ($5,174,107.41). To partially compensate Developer for the difference between the Improvement Value and the Fair Share Obligation, the City has agreed to provide Developer with a storm drain development impact fee credit in the amount of Five Hundred Ninety-Nine Thousand Nine Hundred Dollars ($599,900) that may be applied against future Storm Drain Development Impact Fees imposed in connection with future development within the same Master Storm Drain Plan benefit area.

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File #: 21-3421 Agenda Date: 11/12/2024
Agenda #: K. Category: Consent Calendar
FISCAL IMPACT:

The approval of the Development Impact Fee Credit Agreement results in a reduction of the Developer’s Storm Drain Impact Fee payable in connection with future development within the same Master Storm Drain Plan benefit area.

MOTION:

Approve staff recommendation.

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50136716/202044.0001
Ventana Specific Plan

DEVELOPMENT IMPACT FEE CREDIT AGREEMENT
between

THE CITY OF FONTANA
a California municipal corporation
and
HDO4, LLC
A New Mexico limited liability company
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DEVELOPMENT IMPACT FEE CREDIT AGREEMENT

1. PARTIES AND DATE
This Development Impact Fee Credit Agreement ( “Agreement”) is dated as of November ___, 2024, for reference purposes only . This Agreement is between: (a) the City of Fontana, a California municipal corporation (“City”), and (b) HDO4, LLC, a New Mexico limited liability company (and its successors and assigns) (“Developer”). This Agreement will not become effective until th e date ( “Effective Date ”) on which this Agreement has been approved and executed by the appropriate authorities of both the Developer and the City.

2. RECITALS

2.1 Developer (or its affiliate) owns certain real property (“Property”) located in the City of Fontana, San Bernardino County, State of California . The Property is depicted on the attached Exhibit “A”.

2.2 Developer has developed the Property, and in connection with that development, City required Developer to (a) pay City’s adopted master storm drain plan (“Master Storm Drain Plan”) impact fees (“ Storm Drain Impact Fees”) in the sum of Two Hundred Eighty -Nine Thousand Forty -Two and 59/100 Dollars ($ 289,042.59) (“Fair Share Obligation ”), and (b) construct certai n master planned storm drainage improvements (“ Storm Drain Improvements”). A general description of the Storm Drain Improvements is attached as Exhibit “B.”

3. TERMS

3.1 Fee Credit. Developer’s cost to construct the Storm Drain Improvements was Five Million Four Hundred Sixty -Three Thousand One Hundred Fifty Dollars ($ 5,463,150) (“Improvement Value”), thus exceeding the Fair Share Obligation by Five Million One Hundred Seventy-Four Thousand One Hundred Seven and 41/100 Dollars ($5,174,107.41). To partially compensate Developer for the difference between the Improvement Value and the Fair Shar e Obligation, City has agreed to provide Developer with a storm drain development impact fee credit in the amount of Five Hundred Ninety -Nine Thousand Nine Hundred Dollars ($599,900) (“ Fee Credit”) that may be applied against future Storm Drain Fees imposed in connection with future development within the same Master Storm Drain Plan benefit area.

3.2 Improvement Agreement . Developer and City previously entered into an improvement agreement for the Property (“Improvement Agreement”), and Developer constructed the Storm Drain Improvements in accord with the Improvement Agreement . The rights and obligations of the parties with respect to the design, warranties, construction, and other physical attributes of the Storm Drain Improvements will be governed by the Improvement Agreement.

Nothing in this Agreement modifies, extends, releases, or waives any term of condition or obligation arising under the Improvement Agreement.

3.3 Use of Fee Credit . The Fee Credit may be applied against future Storm Drain Development Impact fees payable in connection with future development within the same Master 226

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Storm Drain Plan benefit area as the Property (“Eligible Development”) in such amounts, in such order, and at such times that Developer (or its assignee) elects in its (their) discretion. Developer may, in its discretion and without prior notice to the City, freely assign all or any portion of any unused amount of the Storm Drain Development Impact Fee Credit to related or unrelated entities.

Assigned Fee Credits may be applied against Storm Drain Development Impact Fees payable in connection with an Eligible Development. If Developer elects to make an assignment, Developer will notify the City in writing (“ Assignment Notice”) of the assignee’s name , together with the date and amount of the assigned Fee Credit. The City will not honor any claim for credit by any person or entity other than Developer unless the claim is accompanied by an Assignment Notice.

3.4 No Waiver of Claims to Additional Fee Credits or Reimbursement. Nothing herein is a waiver of any right or claim that Developer has currently or may have in the future for future credits or reimbursement for (a) the unreimbursed or uncredited difference between the Fair Share Obligation and the Improvement Value, or (b) the excess in value between the applicable fair share obligation and the value of other present or future public improvements constructed by Developer in connection with its other development projects in the City . Nothing herein is a commitment or representation by the City that Developer is entitled to fut ure credits or reimbursement or that, even if Developer is so entitled, that the City will provide future credits or reimbursement in the full amount to which Developer may be entitled or in any amount at all.

3.5 Not a Statutory Development Agreement . This Agreement is not a statutory development agreement as described by Government Code section 65864, et seq. This Agreement confers no vested entitlements with respect to the development of the Property. This Agreement does not limit, in any way whatsoever, any authority the City may have to lawfully increase impact fees, change land use regulations, or otherwise lawfully exercise all powers available to the City pursuant to its police power, statutes, and judicial decision. Likewise, nothing in this Agreement shall limit, in any way, any right or remedy Developer may have to protest or challenge any impact fees or any other exercise of the City’s police powers. Except where subject to credit as provided in this Agreement, Developer shall pay all impact fees as they may be lawfully imposed by the City.

3.6 Cooperation. The parties agree to cooperate with each other in furthering the purposes of this Agreement. The parties hereby agree to take such other actions and execute such other reasonable documents as are consistent with this Agreement and as are reasonably necessary to effectuate this Agreement; provided, however, that the foregoing shall not require the Cit y to take any legislative act or exercise its discretion in any particular manner.

3.7 Entire Agreement. This Agreement contains the final and complete agreement between the parties with respect to the matters herein discussed and supersedes all previous communications and agreements between them, either oral or written, to the extent such prior communications and agreements are inconsistent with this Agreement.

3.8 No Agency or Partnership . Each party acknowledges that it is not the agent , partner, co-venturer, or fiduciary of the other.

3.9 Attorneys’ Fees. In the event that any action or proceeding is commenced to regarding any term of this Agreement, the prevailing party in such action or proceeding, in addition 227

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to all other relief to which it may be entitled, shall be entitled to recover from the other party the prevailing party’s costs of suit and reasonable attorneys ’ fees. The prevailing party shall be as determined by the court in accordance with Code of Civil Procedure section 1032. The attorneys’ costs and expert fees recoverable pursuant to this Section 3.9 include, without limitation, attorneys’ costs and expert fees incurred on appeal and those incurred in enforcing any judgment rendered .

Attorneys’ costs and fees may be recovered as an eleme nt of costs in the underlying action or proceeding or in a separate recovery action.

3.10 Notices. All notices, demands or other communications (collectively, “Notices”) required or allowed by this Agreement shall be in writing and shall be considered given: (a) when delivered in person to the recipient named below; or (b) three (3) business days after deposit in the United States mail, postage prepaid, addressed to the recipient named below. All Notices shall be addressed as follows:

If to the City: City Manager
City of Fontana
8353 Sierra Avenue
Fontana, CA 92334-0518
With copies to: Best Best & Krieger LLP
2855 E. Guasti Rd., Suite 400
Ontario, CA 91767
Attn: Ruben Duran
If to Developer: HDO4, LLC
2151 E. Convention Center Way, Suite 222
Ontario, CA 91764
Attn: Richard Munkvold
With copies to: HDO4, LLC
2151 E. Convention Center Way, Suite 114
Ontario, CA 91764
Attn: Steven B. Imhoof
Any party may, by notice given at any time, require subsequent Notices to be given to another person or entity, whether a party or an officer or representative of a party, or to a different address, or both. Notices given before actual receipt of Notice of change shall not be invalidated by the change.

3.11 Governing Law. Except where application of federal st atutory or decisional law is required in connection with assertion of a federal constitutional right, t his Agreement and its provisions shall in all respects be interpreted, construed, enforced, and governed by and under the procedural and substantive laws of the State of California, without regard to its conflict of laws principles.

3.12 Consent to Jurisdiction, Venue and Service . Any action or proceeding brought respecting this Agreement shall be instituted and maintained in the appropriate court in the County of San Bernardino, California . Developer hereby forgoes and waives any provision of State or 228

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Federal law or judicial decision providing for a change of venue from such court on the grounds that the City is or may be a party to any such action or procee ding, including, without limitation, California Code of Civil Procedure section 394 . Each party hereby irrevocably consents to the personal jurisdiction of the court . Service of process may be made in any manner provided by law.

3.13 Modification. This Agre ement may be modified only by another written instrument duly authorized and executed by the parties . The foregoing notwithstanding, the City Manager is hereby authorized to make such minor amendments to this Agreement on behalf of the City as the City Ma nager may deem prudent and necessary in its administration, with the concurrence of the City Attorney.

3.14 Severability. The provisions of this Agreement are specifically made severable .

If any clause, provision, rights and/or remedy provided for herein is unlawful or unenforceable, the remainder of this Agreement shall remain in effect and be enforced as if such clause, provision, right and/or remedy were not contained herein.

3.15 Rules of Construction . The language in all parts of this Agreement shall in all cases be construed as a whole according to its fair meaning, and not strictly for or against, either the City or Developer. Section headings in this Agreement are for convenience only and are not to be considered as a part of this Agreement or in any way limiting or amplifying the provisions hereof. All provisions and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural, as the identification of the person or persons, firm or firms, corporation or corporations may require. This Agreement is the product of mutual negotiation and drafting efforts. Accordingly, the judicial rule of construction that ambiguities in a document are to be construed against the drafter of that document shall have no application to the interpretation or enforcement of this Agreement . In any action or proceeding to interpret or enforce this Agreement, the finder of fact may refer to such extrinsic evidence not directly in conflict with the express terms hereof to ascertain and give effect to the intent of the parties to this Agreement.

3.16 Execution/Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be an original and all such counterparts together shall constitute the entire agreement of the parties hereto.

3.17 Authorization. Each individual executing this Agreement hereby represents and warrants that he or she has the full power and authority to execute this Agreement on behalf of the named parties.

[Signatures on next page]

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SIGNATURES TO

DEVELOPMENT IMPACT FEE CREDIT AGREEMENT CONTINUED

CITY OF FONTANA,
a California municipal corporation

By:

Matthew Ballantyne
City Manager

HDO4, LLC,
A New Mexico limited liability company

By:

Richard Munkvold
Chief Financial Officer

Attest

By:

Germaine Key
City Clerk

Approved as to form:

By:

Best Best & Krieger LLP
City Attorney

By:

Phillip Burum, Deputy City Manager
Development Services Organization

By:

Gia Lam Kim
Public Works Director/City Engineer

230

EXHIBIT “A”
EXHIBIT “A”
TO

DEVELOPMENT IMPACT FEE CREDIT AGREEMENT
Depiction of Property
[Attached]
231

PARKINGNO

PARKINGNO

PARKINGNO PARKINGNO
YIELD

PARKINGNOVANPARKINGNO
YIELD
STOP
STOP
STOP
STOP

STOPSTOP

STOPSTOP

STOPSTOP
STOP
STOPPA-1APA-1BPA-2PA-5APA-3PA-6APA-6B
PA-5BPA-4KEY MAPN.T.S.

DUNCANCANYON ROADINTERSTATE 15FWY
CITRUS AVE.LYTLE CREEKROADSOUTHERN CALIFORNIA EDISONEASEMENTSOUTHERN CALIFORNIA EDISONEASEMENT Prepared By:Prepared For:

EXHIBIT "A"CITY OF FONTANAVENTANA SPECIFIC PLAN
2850 Inland Empire Blvd., Suite BOntario, California 91764tel 909.581.0676 fax 909.581.0696www.fuscoe.comNGIENEERING

FRONTIER OWNEDNON-FRONTIEROWNED
232

EXHIBIT “B”
EXHIBIT “B”
TO

DEVELOPMENT IMPACT FEE CREDIT AGREEMENT
Subject Improvements
[Attached]
233
EXHIBIT “B” – PAGE 1
50279700.1/202044.0001
234
EXHIBIT “B” – PAGE 2
50279700.1/202044.0001
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EXHIBIT “B” – PAGE 3
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EXHIBIT “B” – PAGE 4
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EXHIBIT “B” – PAGE 5
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EXHIBIT “B” – PAGE 6
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EXHIBIT “B” – PAGE 7
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EXHIBIT “B” – PAGE 8
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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3424 Agenda Date: 11/12/2024
Agenda #: L. Category: Consent Calendar
FROM:

Engineering
SUBJECT:

Approve the Final Change Order with California Professional Engineering for the Citrus Avenue at Chase Road Traffic Signal Project (Bid No. SB-08-DE-22) RECOMMENDATION:

Authorize the City Manager to approve Change Order No. 4 with California Professional Engineering in the amount of $11,601.30 for the construction of the Citrus Avenue at Chase Road Traffic Signal Project (SB-08-DE-22).

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 September 13, 2022, the City Council awarded a construction contract to California Professional Engineering in the amount of $713,980.00 and authorized a contingency amount of $71,398.00 for a total contract authorization of $785,378.00 for the construction of the Citrus Avenue at Chase Road Traffic Signal Project.

On September 24, 2024, the Council authorized Change Order No. 3 in the amount of $58,856.82 for unforeseen conditions related to conduit installation, striping and signage for a total contract authorization of $823,377.18.

With the acceptance of construction, additional quantities were determined to have been completed for asphalt paving for the project. The total change order cost for the project is $120,998.48 necessitating an additional authorization of $11,601.30 for contract Change Order No. 4 related to additional asphalt quantities. The approval of this item will increase the total contract amount to $834,978.48.

FISCAL IMPACT:

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File #: 21-3424 Agenda Date: 11/12/2024
Agenda #: L. Category: Consent Calendar
The fiscal impact related to this is $11,601.30, which is included in the FY 2024-2025 available budget in 37603384-246-A-8330 from the Measure I Local Funds.

MOTION:

Approve staff recommendation.

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ENGINEERING DEPARTMENT
PROJECT:
(City Initiated / Contractor Initiated / Other)
Approval Recommended: Date:

Approved: Date:

Approved: Date:

Approved: Date:

Approved: Date:

Accepted Date: Contractor:

By: Title:

Citrus Ave at Chase Rd Traffic Signal Project
CONTRACT ITEM 11,601.30$ 45,749.98$
ORIGINAL CONTRACT AMOUNT 713,980.00$

ESTIMATE OF COST THIS CCO TOTALS TO DATE
FORCE ACCT. 54,163.96$
AGREED PRICE 21,084.54$
-$
CONTRACTOR: TOTAL 11,601.30$ 120,998.48$
DATE: October 21, 2024
BID NO: SB-08-DE-22 ADJUSTMENT -$
California Professional Engineering
% OVER CONTRACT 1.62% 16.95%
CONTRACT CHANGE ORDER - NO. 004
You are hereby directed to make the following changes for the above reference project.

NOTE: This change order is not effective until approved by the City Engineer.

THE CONTRACT IS CHANGED IN ACCORDANCE WITH THE FOLLOWING DESCRIPTIONS OF WORK SCOPE SEE PAGE 2 of 2 --- CCO #004, ATTACHED
REASON: A detailed delineation for the justification of the change order is indicated within the change order article on

Page 2 ends

the Contractor.

Estimated cost of Decrease: or Increase: 11,601.30$
By reason of this change order, the contract time period for performance is extended by zero (0) Working Day(s).

Construction Manager
City Engineer
Purchasing Office
Chief Financial Officer
Deputy City Manager
We, the undersigned contractor, have given careful consideration to the change proposed and hereby agree, if this proposal is approved, that we will provide all equipment, furnish all materials, except as may otherwise be noted above, and perform all services necessary for the work above specified, and will accept as full payment for the prices shown above.

CONTRACT CHANGE ORDER NO. 004---PAGE 2 OF 2
(Continuation of CCO No. 004)
The contract is changed in accordance with the following scope of work. The equitable adjustments of both cost and time are delineated for the article listed.
244
A.

1. Item Description Quantity Unit Price Total
7 15
Cost (Article A1)---
2 Total Cost (Article A)---
TOTAL COST --- (CCO #004) ---
Zero (0)additional Working Day(s) shall be adjusted by way of this change order as this item (A.1) does not require an increase in the contract Time of Completion.
$11,601.30
Construct Full Depth (6.5") AC Pavement 19 TN
$11,601.30
11,601.30$
$7,638.00
$165.00
$402.00
Reference is made to California Professional Engineering Inc.'s Progress Payment No.'s 1, 2, 3, and 4 covering various bid items constructed between January 22, 2024, and October 14, 2024; delineating the difference between the estimated contract quantities and the actual quantities constructed. The difference in quantities and associated costs are as follows:

As actual quantities varied from the estimated Bid quantities and were items of Work covered by a Contract Unit Price, an adjustment in payment will be made as follows, in accordance with Greenbook Section 7-3.5 "Contract Unit Prices." The increase/decrease in quantities, Contract Unit Price, and associated costs are as follows:

Construct 2" AC Overlay 24.02 TN $3,963.30
245
N01 inch = 600 feet1200600PROJECT LOCATIONCITRUS AVE AND CHASE AVE TRAFFIC SIGNAL PROJECT

CITRUS AVENUE AT CHASE ROAD TRAFFIC SIGNAL PROJECT
SB-080-DE-22
SB-08-DE-22
246
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3430 Agenda Date: 11/12/2024
Agenda #: M. Category: Consent Calendar
FROM:

Housing
SUBJECT:

Authorization to Apply for 2024 Older Adults Home Modification Grant Program RECOMMENDATION:

1. Authorize the Fontana Housing Department to apply for the 2024 U.S. Department of Housing and Urban Development Older Adults Home Modification Grant Program (OAHMP).

2. Authorize the City Manager, or City Manager’s designee, to execute and transmit any documents necessary or desirable to ensure the City's timely submittal and execution of the Older Adults Home Modification Grant Program (OAHMP).

COUNCIL GOALS:
· Concentrate on Inter-governmental relations by pursuing financial participation from county, state and federal governments.

DISCUSSION:

The U.S. Department of Housing and Urban Development (HUD) released a Notice of Funding Opportunity (NOFO) Older Adults Home Modification Grant Program (OAHMP) on September 20, 2024 making approximately $30 million dollars available to eligible applicants.

The OAHMP Grant is a comprehensive program that makes safety and functional home modifications and repairs to meet the needs of low-income seniors. The goal of this program is to enable low-income elderly persons to remain in their homes through low-cost, low barrier, high impact home modifications to reduce the risk of falling, improve general safety, increase accessibility, and to improve their functional abilities in their home. Eligible participants will be evaluated by an occupational therapist to determine which modifications are most appropriate, up to a maximum of $5,000. Those units that require additional work to make the home safe, may combine other appropriate City programs.

The City would utilize the three-year grant program funds as follows:
· Qualified housing units must be located within the City of Fontana · Targeted homes will be those units where low-income older adults sixty-two (62) years and older reside as their primary residence.
· Eligible residents can be either homeowners or renters. · Modifications include but are no limited to: grab bars, railings, tub/shower transfer bench, City of Fontana Printed on 11/7/2024Page 1 of 2
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File #: 21-3430 Agenda Date: 11/12/2024
Agenda #: M. Category: Consent Calendar
raised toilet seats, risers for chairs and sofas, and non-slip strips. · Outreach and education that helps promote program participation. · Participants must have a combined household income of not more than 80% of median income (“lower” income), adjusted for family size.
· Assistance will be provided in the form of a grant to eligible units. · Program Administration
The City of Fontana will be requesting $2 million in program assistance from HUD.

FISCAL IMPACT:

The fiscal impact associated with the approval of this item is an increase in Older Adults Home Modification Grant Program funds in the amount of $2 million dollars. The required budget adjustments will be included in the first available quarterly budget report after grant award in Fund 301 if received.

MOTION:

Approve Staff Recommendation.

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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3431 Agenda Date: 11/12/2024
Agenda #: N. Category: Consent Calendar
FROM:

City Manager's Office
SUBJECT:

Authorization for Submission of Letter Supporting Bus Stop Enhancements in Key Transit Corridors RECOMMENDATION:

Staff recommends that the City Council approve the attached letter, authorize its submission, and authorize the Mayor to sign on behalf of the City of Fontana.

COUNCIL GOALS:
· Improve public safety by increasing operational efficiency, visibility and availability.

DISCUSSION:

In accordance with the San Bernardino County Transportation Authority’s (SBCTA) Long Range Multimodal Transportation Plan, the City of Fontana has identified a need for improved transit options along key corridors, including Foothill Blvd, Sierra Ave, and San Bernardino Ave, based on high ridership data and strategic community planning priorities. Enhancements in these areas will contribute to increased accessibility, user comfort, and transit reliability for both residents and commuters.

The proposed letter, to be signed by Mayor Acquanetta Warren, will convey the City’s commitment to collaborating with OmniTrans and SBCTA in implementing bus stop improvements, including upgrades to shelters, seating, lighting, signage, and off-board fare payment stations. Additionally, the letter supports increased transit frequency and exploring transit signal priority along these corridors. A copy of the letter will be sent to OmniTrans and SBCTA.

FISCAL IMPACT:

There is no immediate fiscal impact associated with authorizing the letter. Any future expenditures related to specific transit projects will be reviewed and brought before the Council as necessary.

MOTION:

Approve staff recommendation.

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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3435 Agenda Date: 11/12/2024
Agenda #: O. Category: Consent Calendar
FROM:

Development Services
SUBJECT:

Declaring Surplus Land- Arrow & Spring
RECOMMENDATION:

1. Approve Resolution No. 2024-124, declaring that the City-owned property on (Assessor’s Parcel Number) is “Surplus Land” pursuant to the Surplus Land Act, Government Code Section 54220 Et Seq.; and approving the form of Notice of Availability.

2. Authorize the City Manager and/or his designee(s) to take all actions necessary or appropriate to comply with the Surplus Land Act.

COUNCIL GOALS:
· Practice sound fiscal management by living within our means while investing in the future. · Invest in the City’s infrastructure (streets, sewers, parks, etc.) by providing for the development of new infrastructure.

DISCUSSION:

The City of Fontana acquired the parcels as part of the Downtown Revitalization Plan. In total, there are 26 parcels ranging in size from 3,300 to 39,000 square feet. These properties include:

APN Address
0191-161-18 16710 Spring St Fontana, CA 92335
0191-161-13 16726 Spring St Fontana, CA 92335
0191-161-17 N/A Spring St Fontana, CA 92335
0191-161-28 N/A Spring St Fontana, CA 92335
0191-161-29 16762 Spring St Fontana, CA 92335
0191-161-02 16788 Spring St Fontana, CA 92335
0191-162-18 16717 Spring St Fontana, CA 92335
0191-162-19 16725 Spring St Fontana, CA 92335
0191-162-20 16757 Spring St Fontana, CA 92335
0191-162-21 16767 Spring St Fontana, CA 92335
0191-162-22 N/A Spring St Fontana, CA 92335
0191-162-23 N/A Spring St Fontana, CA 92335
0191-162-24 16779 Spring St Fontana, CA 92335
0191-162-25 N/A Spring St Fontana, CA 92335
0191-162-26 N/A Spring St Fontana, CA 92335
0191-162-27 16803 Spring St Fontana, CA 92335
0191-162-44 16815 Spring St Fontana, CA 92335
0191-162-14 16730 Arrow Blvd, Fontana, CA 92335
0191-162-13 16736 Arrow Blvd, Fontana, CA 92335
0191-162-40 N/A Arrow Blvd, Fontana, CA 92335
0191-162-39 16756 Arrow Blvd, Fontana, CA 92335
0191-162-09 16766 Arrow Blvd, Fontana, CA 92335
0191-162-08 N/A Arrow Blvd, Fontana, CA 92335
0191-162-05 16788 Arrow Blvd, Fontana, CA 92335
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File #: 21-3435 Agenda Date: 11/12/2024
Agenda #: O. Category: Consent Calendar
APN Address
0191-161-18 16710 Spring St Fontana, CA 92335
0191-161-13 16726 Spring St Fontana, CA 92335
0191-161-17 N/A Spring St Fontana, CA 92335
0191-161-28 N/A Spring St Fontana, CA 92335
0191-161-29 16762 Spring St Fontana, CA 92335
0191-161-02 16788 Spring St Fontana, CA 92335
0191-162-18 16717 Spring St Fontana, CA 92335
0191-162-19 16725 Spring St Fontana, CA 92335
0191-162-20 16757 Spring St Fontana, CA 92335
0191-162-21 16767 Spring St Fontana, CA 92335
0191-162-22 N/A Spring St Fontana, CA 92335
0191-162-23 N/A Spring St Fontana, CA 92335
0191-162-24 16779 Spring St Fontana, CA 92335
0191-162-25 N/A Spring St Fontana, CA 92335
0191-162-26 N/A Spring St Fontana, CA 92335
0191-162-27 16803 Spring St Fontana, CA 92335
0191-162-44 16815 Spring St Fontana, CA 92335
0191-162-14 16730 Arrow Blvd, Fontana, CA 92335
0191-162-13 16736 Arrow Blvd, Fontana, CA 92335
0191-162-40 N/A Arrow Blvd, Fontana, CA 92335
0191-162-39 16756 Arrow Blvd, Fontana, CA 92335
0191-162-09 16766 Arrow Blvd, Fontana, CA 92335
0191-162-08 N/A Arrow Blvd, Fontana, CA 92335
0191-162-05 16788 Arrow Blvd, Fontana, CA 92335
By approving the attached Resolution, the City would declare the parcels as “surplusland,”under the Surplus Land Act and Government Code section 54221, and that the parcels are no longer necessary for the City’s use.

In order for the City to dispose of the parcels, the City must first go through a public/stakeholder engagement process in accordance with state law and the Surplus Land Act. This process requires the City to transmit (mainly by email) a Notice of Availability - “NOA”(a form of which is attached to the Resolution) to designated entities under state law and allow for a 60-day period during which these entities, including potential affordable housing developers and public entities with jurisdiction over the parcels, may express their interest in negotiating on any of those parcels.

The Surplus Land Act requires this right of first refusal in an effort to mitigate the state’shousing supply crisis. The City is also required to engage in “good-faith”property negotiations for at least 90- days on price and terms with any qualifying party that submits a qualified notice of interest. The City also has reporting and compliance obligations to the Department of Housing and Community Development, who can impose penalties based on the ultimate sales price of the parcel, if the Surplus Land Act is not followed prior to disposition.

This action and resolution begin the surplus land disposition process and allows staff to adequately vet any interest by the public, affordable housing developers, and/or other entities designated under the Surplus Land Act.

Upon conclusion of the public engagement process, the City may market the property to the general public.

Approval of the attached resolution will allow the City to commence the Surplus Land Act process, by issuing the NOA to those entities statutorily entitled to receive it. The disposition of these properties will contribute to the City’s goals to encourage new development as part of the Downtown Revitalization Plan.

FISCAL IMPACT:

There is no fiscal impact associated with the approval of this item.

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File #: 21-3435 Agenda Date: 11/12/2024
Agenda #: O. Category: Consent Calendar
MOTION:

Approve staff recommendation.

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RESOLUTION NO. 2024-124

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

CALIFORNIA, DECLARING THAT THE CITY OWNED PARCELS
KNOWN AS ASSESSOR’S PARCEL NUMBERS 0191-161-18, 0191-161- 13, 0191-161-17, 0191-161-28, 0191-161-29, 0191-161-02, 0191-162-18, 0191-162-19, 0191 -162-20, 0191 -162-21, 0191 -162-22, 0191 -162-23, 0191-162-24, 0191 -162-25, 0191 -162-26, 0191 -162-27, 0191 -162-44, 0191-162-14, 0191 -162-13, 0191 -162-40, 0191-162-39, 0191 -162-09, 0191-162-08, and 0191 -162-05 AS “SURPLUS LAND” PURSUANT TO THE SURPLUS LAND ACT, GOVERNMENT CODE SECTION 54220 ET
SEQ.; APPROVING FORM OF NOTICE OF AVAILABILITY; AND

AUTHORIZING THE CITY MANAGER AND HIS DESIGNEE(S) TO TAKE

ALL ACTIONS NECESSARY TO COMPLY WITH THE SURPLUS LAND
ACT

WHEREAS, The City of Fontana owns several contiguous and non -contiguous parcels of land (Assessor’s Parcel Number s 0191-161-18, 0191-161-13, 0191-161-17, 0191-161-28, 0191 -161-29, 0191 -161-02, 0191 -162-18, 0191 -162-19, 0191 -162-20, 0191-162-21, 0191 -162-22, 0191 -162-23, 0191 -162-24, 0191 -162-25, 0191 -162-26, 0191-162-27, 0191 -162-44, 0191 -162-14, 0191 -162-13, 0191 -162-40, 0191 -162-39, 0191-162-09, 0191-162-08, and 0191 -162-05) (“Parcels”) that are no longer necessary for the City’s use and should be declared as surplus property suitable for disposition; and

WHEREAS, under the California Surplus Land Act (“SLA”), Government Code Section 54220-54233, surplus property is defined as land owned by any local agency that is no longer necessary for the agency’s use; and

WHEREAS, effective January 1, 2020, the SLA was amended to require all local agencies to formally declare agency -owned properties as “surplus land” prior to taking action to dispose of such properties and to issue a “Notice of Availability” (NOA) to certain entities statutorily entitled to notice; and

WHEREAS, the declaration of surplus land must be made by the local agency’s legislative body at a regular open meeting supported by written findings; and

WHEREAS, the City Council has made findings that the Parcels are no longer necessary for the City’s use; and

WHEREAS, the City intends to follow the provisions of the SLA in the disposition of the Parcels and prioritize affordable housing in the disposition of such land to the extent required by law; and

WHEREAS, this declaration of surplus land does not obligate the City to subsequently dispose of the Parcels and is not an action that results in a binding commitment by the City to move forward with the disposition of the property. 254
Resolution No. 2024-124

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

SECTION 1. The City Council finds and decl ares that the City -owned Parcels (Assessor’s Parcel Numbers 0191 -161-18, 0191 -161-13, 0191 -161-17, 0191 -161-28, 0191-161-29, 0191 -161-02, 0191 -162-18, 0191 -162-19, 0191 -162-20, 0191 -162-21, 0191-162-22, 0191 -162-23, 0191 -162-24, 0191 -162-25, 0191 -162-26, 0 191-162-27, 0191-162-44, 0191 -162-14, 0191 -162-13, 0191 -162-40, 0191 -162-39, 0191 -162-09, 0191-162-08, and 0191-162-05) are surplus and no longer necessary for the City’s use, in accordance with the California Surplus Land Act (Government Code Section 54220 et seq.). The City Council bases this declaration on the following findings:

 The City currently owns the properties noted above located in the downtown area of Fontana, generally between Juniper Avenue and Nuevo Avenue and between Arrow Boulevard and Seville Avenue
 The properties include buildings of various sizes which may be currently occupied by various tenants, each occupying their respective space via a month -by-month lease with the city.
 The Parcels are located in an area of focus for the city ’s revitalization efforts of downtown Fontana.
 Land uses in the area surrounding the Parcels will continue to shift in support of the overall economic revitalization plan.
 Under-utilization, maintenance, and operational cost as well as other liability issues makes it cost prohibitive to retain ownership of the Parcel as the propert y is currently developed.
 City ownership, management, and maintenance of the properties will prevent the parcels from being developed into the highest and best use.

SECTION 2. The City Council finds and determines, after independent review and consideration, that the action of declaration of surplus land does not result in a binding commitment by the City to authorize or advance the disposition of the Parcel; will not result in a direct or indirect physical change in the environment; and does not constitute an approval of a project pursuant to CEQA Guidelines Sections 15004 and 15352.

SECTION 3. The City Council approves the form of Notice of Availability attached hereto as Exhibit A and authorizes the City Manager or his designee(s) to take all actions necessary to comply with the SLA, including but not limited to issuing the Notice of Availability for the Parcel to all entities statutorily entitled to receive such notice.

SECTION 4. The City Clerk shall attest and certify to the passage and adoption of this Resolution, and it shall become effective immediately upon its approval.

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Resolution No. 2024-124

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APPROVED AND ADOPTED this 12th day of November 2024.

READ AND APPROVED AS TO LEGAL FORM:

________________________________
City Attorney

I, Germaine Key, City Clerk of the City of Fontana, California, and Ex-Officio Clerk of the City Council, do hereby certify that the foregoing resolution is the actual resolution duly and regularly adopted by the City Council of said City at a regular meeting held on the 12th day of November, 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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November 12, 2024

To All Interested Parties:

RE: Notice of Availability/Offer to Sell Surplus Property

As required by Government Code Section 54220 of the State of California, The City of Fontana is providing notification that the City intends to sell the surplus property listed in the accompanying table.

APN Address Approximate Parcel Size
0191-161-18 16710 Spring St Fontana, CA 92335 11,000
0191-161-13 16726 Spring St Fontana, CA 92335 9,900
0191-161-17 N/A Spring St Fontana, CA 92335 6,000
0191-161-28 N/A Spring St Fontana, CA 92335 4,300
0191-161-29 16762 Spring St Fontana, CA 92335 5,800
0191-161-02 16788 Spring St Fontana, CA 92335 18,200
0191-162-18 16717 Spring St Fontana, CA 92335 6,500
0191-162-19 16725 Spring St Fontana, CA 92335 39,000
0191-162-20 16757 Spring St Fontana, CA 92335 6,500
0191-162-21 16767 Spring St Fontana, CA 92335 3,300
0191-162-22 N/A Spring St Fontana, CA 92335 6,500
0191-162-23 N/A Spring St Fontana, CA 92335 6,500
0191-162-24 16779 Spring St Fontana, CA 92335 6,500
0191-162-25 N/A Spring St Fontana, CA 92335 6,500
0191-162-26 N/A Spring St Fontana, CA 92335 3,400
0191-162-27 16803 Spring St Fontana, CA 92335 9,800
0191-162-44 16815 Spring St Fontana, CA 92335 14,400
0191-162-14 16730 Arrow Blvd, Fontana, CA 92335 34,300
0191-162-13 16736 Arrow Blvd, Fontana, CA 92335 6,900
0191-162-40 N/A Arrow Blvd, Fontana, CA 92335 9,900
0191-162-39 16756 Arrow Blvd, Fontana, CA 92335 9,900
0191-162-09 16766 Arrow Blvd, Fontana, CA 92335 6,500
0191-162-08 N/A Arrow Blvd, Fontana, CA 92335 6,600
0191-162-05 16788 Arrow Blvd, Fontana, CA 92335 6,600

In accordance with Government Code Section 54222, you have sixty (60) days from the date this offer was sent via certified mail or electronic mail to notify the City of your interest in acquiring the property. However, this offer shall not obligate the City to sell the property to you. Instead, the City would enter into at least ninety (90) days of negotiations with you or other prospective bidders pursuant to Government Code Section 54223. If no agreement is reached on sales price and terms, or lease terms, the City may market the property to the general public.

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As required by Government Code Section 54227, if the City receives more than one letter of interest during this 60-day period, it will give first priority to entities proposing to develop housing where at least 25 percent of the units will be affordable to lower income households. If more than one such proposal is received, priority will be given to the proposal with the greatest number of affordable units. If more than one proposal specifies the same number of affordable units, priority will be given to the proposal that has the lowest average affordability level.

In the event your agency or company is interested in purchasing the property, you must notify the City in writing within sixty (60) days of the date this notice was sent via certified mail or electronic mail. Notice of your interest in acquiring the property shall be delivered to Linda Alonzo Management Analyst I, at 8353 Sierra Avenue Fontana, CA 92335. You may also direct your questions to [email protected] or by calling 909-350-6730.

Entities proposing to submit a letter of interest are advised to review the requirements set forth in the Surplus Land Act (Government Code Section 54220-54234). 258
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3436 Agenda Date: 11/12/2024
Agenda #: P. Category: Consent Calendar
FROM:

Development Services
SUBJECT:

Award bid for 17133 Valley Blvd Improvements - The Path (BID PW-25-45-SB).

RECOMMENDATION:

Award bid and authorize the City Manager to execute a construction contract with Final Touch Construction (DS-25-45-SB) for improvements to 17133 Valley Blvd - The Path, formerly known as the Homelessness Prevention Resources and Care Center (HPRCC) in the amount of $428,470.00 and authorize a 15% contingency in the amount of $64,270.50. ..End
COUNCIL GOALS:
· Operate in a businesslike manner by correcting problems immediately. · Practice sound fiscal management by living within our means while investing in the future. · Provide a diverse range of housing types and levels of affordability while addressing homelessness in the community by acquisition, substantial rehabilitation, and professional management of selected multi-family properties to provide more affordable units and reduce crime and code enforcement activity.

DISCUSSION:

The City of Fontana has determined Homelessness and Homeless prevention as a top priority and has previously instructed staff to take all feasible actions in support of the City’s homelessness prevention plan.

The Path improvement project includes; conversion of the swimming pool and deck into a playground and general gathering area, installation of a new dog kennel and pet play area, new covered carport structure for storage of the city’s newly acquired mobile shower unit, fencing, lobby workstations, flooring, new ADA restroom, apartment remodel, and laundry room. The Purchasing Office initiated the Notice Inviting Bids for 17133 Valley Blvd Improvements - The Path.

On October 28, 2024, at 2:00 p.m. the bids for this contract were opened. A total of three (3) bids were received. Final Touch Construction is the lowest bidder with a Base Bid of $303,690.00 combined with their Additive Bid of $124,780.00 for a total bid of $428,470.00.

After reviewing the proposed bid documents, the Purchasing Division is recommending Final Touch Construction located in Fontana, CA. as they are the lowest, most responsive, and responsible bidders.

FISCAL IMPACT:

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File #: 21-3436 Agenda Date: 11/12/2024
Agenda #: P. Category: Consent Calendar
The fiscal impact associated with the approval of this item is $428,470 with an additional 15% contingency for the total not to exceed $492,741 for the full term of the improvement contract. The Path improvement project is being funded by the American Rescue Plan Act (ARPA) project account 37600041-302-A-various.

MOTION:

Approve staff recommendation.

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City of Fontana
Bid Results for Project 17133 Valley Blvd Improvements - The Path (DS-25-45-SB) (Unit Price * Quantity)
Item Num
Description
Unit of
Measure Quantity
Final Touch
Construction - Unit
Price
Final Touch
Construction - Line
Total
Fidelity
Builders, Inc. -
Unit Price
Fidelity Builders,
Inc. - Line Total
We R Builders,
Inc. - Unit Price
We R Builders, Inc. -
Line Total
1 Mobilization and Architectural Drawings LS 1 $35,000.00 $35,000.00 $66,150.00 $66,150.00 $25,000.00 $25,000.00 Subtotal $35,000.00 $66,150.00 $25,000.00
2 Pool & Spa Demo LS 1 $32,600.00 $32,600.00 $3,375.00 $3,375.00 $25,000.00 $25,000.00 3 New Playground LS 1 $76,500.00 $76,500.00 $77,340.00 $77,340.00 $60,000.00 $60,000.00 4 Wrought Iron Fence & Gate LS 1 $7,800.00 $7,800.00 $6,750.00 $6,750.00 $15,000.00 $15,000.00 5 Pole Lighting LS 1 $0.00 $0.00 $1,500.00 $1,500.00 $35,000.00 $35,000.00 6 New Gazebo LS 1 $7,500.00 $7,500.00 $5,400.00 $5,400.00 $22,000.00 $22,000.00 7 Concrete Table & Bench LS 1 $5,500.00 $5,500.00 $4,050.00 $4,050.00 $8,500.00 $8,500.00 Subtotal $129,900.00 $98,415.00 $165,500.00
8 Lobby Area Pony Wall and Area Workstations LS 1 $8,200.00 $8,200.00 $8,775.00 $8,775.00 $35,000.00 $35,000.00 Subtotal $8,200.00 $8,775.00 $35,000.00
9 Demo Hallway and Laundry Room LS 1 $7,500.00 $7,500.00 $2,025.00 $2,025.00 $22,000.00 $22,000.00 10 Laundry Connections, Folding Table and New Flooring LS 1 $14,750.00 $14,750.00 $33,750.00 $33,750.00 $35,000.00 $35,000.00 Subtotal $22,250.00 $35,775.00 $57,000.00
11 Demo LS 1 $7,500.00 $7,500.00 $2,025.00 $2,025.00 $15,000.00 $15,000.00 12 ADA Restroom LS 1 $9,500.00 $9,500.00 $37,800.00 $37,800.00 $27,500.00 $27,500.00 13 Kitchen LS 1 $29,540.00 $29,540.00 $43,605.00 $43,605.00 $57,000.00 $57,000.00 14 Flooring, Leveling Floor, Doors, and Walls for Open Areas LS 1 $7,100.00 $7,100.00 $36,450.00 $36,450.00 $25,000.00 $25,000.00 Subtotal $53,640.00 $119,880.00 $124,500.00
15 Demo LS 1 $13,200.00 $13,200.00 $2,700.00 $2,700.00 $15,000.00 $15,000.00 16 ADA Restroom LS 1 $12,000.00 $12,000.00 $37,800.00 $37,800.00 $47,500.00 $47,500.00 17 Restroom LS 1 $18,500.00 $18,500.00 $8,000.00 $8,000.00 $25,000.00 $25,000.00 18 Flooring, Leveling Floor, Wall, Doors LS 1 $11,000.00 $11,000.00 $30,282.00 $30,282.00 $25,000.00 $25,000.00 Subtotal $54,700.00 $78,782.00 $112,500.00
Base Bid Total $303,690.00 $407,777.00 $519,500.00
19 New Dog Play Area, Kennel, Sail Shade System and
Lighting LS 1 $35,000.00 $35,000.00 $71,875.00 $71,875.00 $140,000.00 $140,000.00 20 New Covered Carport Structure, Utilities & Lighting LS 1 $75,000.00 $75,000.00 $32,250.00 $32,250.00 $100,000.00 $100,000.00 21 West Side Entrance Patio - Fence, Gate, Lighting, & Lock System LS 1 $14,780.00 $14,780.00 $19,625.00 $19,625.00 $85,000.00 $85,000.00 Subtotal $124,780.00 $123,750.00 $325,000.00
Total with Additive $428,470.00 $531,527.00 $844,500.00 Base Bid
Total
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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3439 Agenda Date: 11/12/2024
Agenda #: Q. Category: Consent Calendar
FROM:

Housing
SUBJECT:

Authorization to Apply for 2024 Housing and Homelessness Incentive Program RECOMMENDATION:

1. Authorize the Fontana Housing Department to apply for the 2024 San Bernardino County Housing and Homelessness Incentive Program (HHIP).

2. Authorize the City Manager, or City Manager’s designee, to execute and transmit any documents necessary or desirable to ensure the City's timely submittal and execution of the San Bernardino County Housing and Homelessness Incentive Program (HHIP).

COUNCIL GOALS:
· Concentrate on Inter-governmental relations by pursuing financial participation from county, state and federal governments.

DISCUSSION:

The San Bernardino County Continuum of Care (CoC) released the Request for Applications No.

OHS 24-05 Housing and Homelessness Incentive Program (HHIP) on October 31, 2024 making approximately $10 million dollars available to eligible applicants.

The HHIP is a statewide voluntary program in which Managed Care Plans (MCPs) work at the county level with local partners to build partnerships with social service providers and homeless systems of care. HHIP funds are used to invest in work done by local organizations that are leading housing- and homeless-related efforts.

The ultimate goal is to improve health outcomes and access to whole-person care services by addressing housing insecurity and instability as social determinants of health for the targeted population.

The City would contingently apply for the appropriate amount of funding that aligns the eligible funding categories with the City’s current homeless programming. If funding is awarded, staff will request City Council approval for acceptance.

The five major categories that an applicant can request funding through this two-year grant are as follows:

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· CoC Support which strengthens housing-related infrastructure and increases the related workforce.
· CoC Collaboration & Partnerships supports the increase in the number of housing-related service providers.
· Disparities & Equity Services Support enhances support for addressing disparities and equity in housing-related services.
· Street Medicine Support supports infrastructure to coordinate and meet eligible participants health and housing needs.
· Permanent Supportive Housing
FISCAL IMPACT:

The fiscal impact associated with the approval of this item is an increase in San Bernardino County Housing and Homelessness Incentive Program funds in the amount of the application submitted. The required budget adjustments will be included in the first available quarterly budget report after grant award in Fund 301, if received.

MOTION:

Approve Staff Recommendation
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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3379 Agenda Date: 11/12/2024
Agenda #: R. Category: Consent Calendar
FROM:

Development Services
SUBJECT:

Cost Sharing Agreement with Sunrise Ford for the Digital Reader Board Replacement RECOMMENDATION:

1. Adopt Resolution No. 2024-125 and approve the cost sharing Sale Agreement with Sunrise Ford, to fund the digital freeway sign upgrade located 16005 Valley Blvd. Fontana, CA 92335.

2. Authorize the City Manager to execute any documents necessary or appropriate to effectuate said approvals and/or agreement.

COUNCIL GOALS:
· Operate in a businesslike manner by improving services through the effective use of technology.
· Increase citizen involvement by utilizing technology to promote communication and linkages in the community.
· Practice sound fiscal management by living within our means while investing in the future.

DISCUSSION:

The City of Fontana received a request from Sunrise Ford auto dealership for financial assistance in funding the upgrade of the Sunrise Ford digital freeway sign. The existing digital reader board has reached the end of its life. The manufacturer is no longer supporting warranties nor providing replacement parts. The current board’s LED’s do not operate with the same brightness and visibility as more modern boards.

Sunrise Ford has secured competitive bids for this necessary upgrade from Electra-Media, Inc. who has vetted through multiple vendors and technology options to provide us with the highest quality product at the best price point including prevailing wage for on-site labor. This upgrade will include the removal of the existing LED display with new high-resolution LED displays, along with updating ID cabinet with new logos and channel letters, retrofit "City of Fontana" ID with new white LED lighting, and repaint sign. This will return readership drastically back up to 98% which is estimated to result in increased sales of 10% to 12% and in turn, increased sales tax revenue to the City of Fontana of the same percentage. In return, the City will have the right to use 15% of the sign's operating time each hour for City messaging and content, such as events and announcements for 10 years.

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the City's general fund, as well as provide a public service by granting the City the right to advertise on the sign along the I-10 Freeway, which sees 270,000 vehicles daily.

FISCAL IMPACT:

The fiscal impact associated with the approval of this item is 50% ($397,294) of the total purchase price of the upgrade which is ($794,587). The expenditure will be submitted in the 2nd quarterly budget report and will be funded by Capital Reinvestment Fund (601).

MOTION:

Approve staff recommendation.

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RESOLUTION NO. 2024-125

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

CALIFORNIA, APPROVING A LED SIGN LICENSE AND

REIMBURSEMENT AGREEMENT WITH KNIGHT SUNRISE FORD AUTO
CENTER.

WHEREAS, Knight Sunrise Ford Auto Center (“Auto Center”) owns and operates an electronic LED sign (“LED Sign”) on certain real property located at 16005 Valley Boulevard, Fontana California 92235 (“Property”); and

WHEREAS, Auto Center desires to refurbish the LED Sign on the Property, which would include the installation of a new LED display, an update of the ID cabinet, repainting of the LED Sign and other related work; and

WHEREAS, the City of Fontana (“City”) desires to obtain a leasehold in terest in Auto Center ’s refurbished LED Sign to display permitted City messages and State of California’s Emergency Digital Information Service messages; and

WHEREAS, City and Auto Center each desir e to enter into a license and reimbursement agreement for the costs to refurbish the LED Sign and for the City to obtain a leasehold interest to display City messages and State of California’s Emergency Digital Information Service messages on the LED Sign.

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

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

Section 2. CEQA Compliance. The approval of the Knight Sunrise Ford Auto Center LED Sign License and Reimbursement Agreement through this Resolution does not commit the City of Fontana 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 is authorized and directed to file a Notic e 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. City Council of the City of Fontana hereby approves the LED Sign License and Reimbursement Agreement with Auto Center and authorizes the City Manager to execute the Agreement in accordance with this Resolution.

Section 4. Severability. If any provision of this Resolution or the application of any such provision to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without 307
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the invalid provision or application, and to this end the provisions of this Resolution are severable. The City declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution.

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

Section 6. Effective Date. This Resolution shall become effective immediately upon its adoption.

APPROVED and ADOPTED this 12th day of November 2024.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney

I, Germaine McClellan Key, City Clerk of the City of Fontana, California, and Ex - Officio Clerk of the City of Fontana, do hereby certify that the foregoing Resolution is the actual Resolution duly and regularly adopted by the City Council of said City, at a regular meeting on the 12th day of November, 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 of the City of Fontana
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1 LEASE AGREEMENT
This LEASE AGREEMENT ("Agreement") is dated as of the _____ day of November, 2024 ("Effective Date") by and between the CITY OF FONTANA , a California municipal corporation ("City") and KNIGHT SUNRISE FORD , a California corporation ("A uto Center ") (each individually a “Party”, and collectively the “Parties”) , and is made with reference to the following facts:

RECITALS
A. Auto Center owns and operates one electronic LED sign (“LED Sign ”) on certain real property located at 16005 Valley Boulevard , Fontana California, 92335 (“Property”), which Propert y is further described in Exhibit “A” attached to this Agreement and incorporated herein by this reference.

B. Auto Center desires, and City agrees, to refurbish the LED Sign on the Propert y, which refurbishing will include installation of new LED display, an update of the ID cabinet , repainting of the LED S ign and other related work , as further described in Exhibit “B” attached to this Agreement and incorporated herein by this reference.

C. Auto Center anticipates the cost to refurbish the LED Sign is approximately SEVEN

HUNDRED NINETY FOUR THOUSAND FIVE HUNDRED EIGHTY SEVEN
DOLLARS ($794,587).

D. Auto Center and City each desire to pay a portion of the cost to refurbish the LED Sign upon completion and in consideration for City’s payment of an amount not to exceed

FOUR HUNDRED SEVENTY SIX THOUSAND SEVEN HUNDRED FIFTY TWO DOLLARS ($476,752) to refurbish the LED Sign, City will obtain a leasehold interest to display certain messages as provided for hereunder on the LED Sign.

AGREEMENT

NOW, THEREFORE, IN CONSIDERATION OF THE TERMS AND CONDITIONS SET FORTH IN THIS AGREEMENT, CITY AND AUTO CENTER AGREE, AS FOLLOWS:

1. Recitals. The Recitals above are true and correct and are hereby incorporated as part of this Agreement.

2. Lease. For a period of ten (10) years from the filing of a Notice of Completion for the refurbishment of the LED Sign (the "Term"), Auto Center hereby leases to the City, and City hereby leases from Auto Center, fifteen percent (15%) of the LED Sign’s operating time each hour ("City Operating Time") for purposes of displaying the City’s Permitted Messages (as defined in Section 4 below) prepared by City, which message content shall not be subject to edit or modification by Auto Center (“Lease”). Additionally, the City has the option to increase City’s Lease usage by five percent (5%) (“Emergency Operating Time”) for a total of twenty percent (20%) for each hour in the event of and for the duration of an emergency pursuant to Section 2.1 below. Upon the expiration of the Term, unless extended by mutual written agreement of the Parties, this Agreement shall 309
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2 automatically terminate and no additional instrument, consent or action by either Party shall be required to terminate this Agreement. Upon the termination of this Agreement, the City shall execute any document and take any action as may be reasonably necessary to evidence such termination.

2.1 EDIS Service Messages. In addition to City Operating Time, the City may elect to initiate Emergency Operating Time for an additional five percent (5%) of the LED Signs operating time each hour to publish messages from the State of California's Emergency Digital Information Service ("EDIS") and/or local emergencies as may be declared by the City Council. The Emergency Operating Time is separate and in addition to City Operating Time and in no event shall be deducted from City Operating Time. Auto Center agrees to work cooperatively and in good faith with the City by providing reasonable technical assistance in the event that the City desires to publish EDIS messages and/or City messages during the Emergency Operating Time.

3. Consideration. In consideration for the Lease, and subject to the City's confirmation that the LED Sign is in conformance with (i) the sign panel as described in the attached proposal; (ii) all Regulations, as defined herein below, City shall pay to the Auto Center FOUR HUNDRED SEVENTY SIX THOUSAND SEVEN HUNDRED FIFTY TWO DOLLARS ($476,752) (“City Payment”), which shall be paid in one lump sum no later than forty-five (45) days after filing of the Notice of Completion. “Actual Costs” shall mean the direct costs to refurbish the LED Sign, including, without limitation, any payments to a third party licensed contractor to refurbish the LED Sign, but excluding Auto Center overhead and/or profit.

4. City Use of LED Sign. The LED Sign shall be operative 5:00 am to midnight every calendar day of each year during the Term, except when inoperative due to mechanical or electrical failure and/or required maintenance. The City shall be responsible for providing notice of the City's desired message content for the LED Sign to Auto Center or its designee at least seven (7) business days in advance of the date and time for publication ("Notice of Content"), except in the case of an emergency (where notice will provided within a reasonable amount of time determined by the City at its sole discretion); provided, however, that the City’s message content shall only pertain to (i) City sponsored events, (ii) events held at City facilities, (iii) City recreation programs, or (iv) public service announcements (including EDIS messages) as determined at the City’s sole discretion; and provided further that no City message content shall relate to any auto sales, auto services or auto products (the message content permitted hereunder is referred to herein as “Permitted Messages”). If the Notice of Content is timely provided by City, Auto Center shall endeavor to provide timely publication of the Permitted Messages at the City designated date, time and period of publication ("Publication Time"), subject to (i) Auto Center's consent to the Publication Time, which shall not be unreasonably withheld in light of the City's targeted audience and purposes for publication, and (ii) Auto Center’s determination that the message content contained in the Notice of Content are Permitted Messages. In the event that Auto Center does not consent to the City's proposed Publication Time or the message content, Auto Center shall provide written notice to the City, stating the reasons for withholding consent ("Notice of Refusal"), within three (3) business days of receiving the City's Notice of Content.

5. Maintenance and Repair. Auto Center shall maintain the LED Sign in good and operable condition during the Term and any authorized extension thereto. City shall have no obligation to maintain and/or repair, or cause the maintenance and/or repair of, the LED Sign. Any period during which the LED Sign is inoperative, including any inoperative periods during maintenance and/or repair, shall not be considered as City Operating Time. 310
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3 6. Installation, Construction and Removal. City shall bear no responsibility for installation, construction, and/or removal of the LED Sign. Auto Center shall be responsible for obtaining and/or complying with all regulations, approvals and/or permits required by any government agency having jurisdiction therefore ("Required Approvals"), including any permits and/or regulations required by the Outdoor Advertising Act (California Business and Professions Code sections 5200-5231). Auto Center understands and agrees that the City's approval of this Agreement shall not constitute a Required Approval and Auto Center's failure to obtain all Required Approvals shall constitute a default hereunder.

7. Costs and Expenses. Auto Center shall be responsible for installing and/or providing all utility services for operation of the LED Sign in accordance with this Agreement. Except for the City Payment, City shall not be responsible for any costs or expenses associated with the LED Sign or the surrounding property including, without limitation, installing and/or providing utility services for operation of the LED Sign and any and all real or personal property taxes and other charges (including any increase caused by a change in the tax rate or by a change in assessed valuation) of any description levied or assessed on or against the Properties or the LED Sign.

8. Content. Except for the Content granted to the City in Section 4, Content on LED Sign shall be limited to on premise advertising of Knight Sunrise Ford auto dealers, and their products and services located.

9. Assignment.

9.1 Assignment by Auto Center. Auto Center shall not assign any rights under this Agreement to any individual, partnership, limited partnership, trust, estate, association, corporation, limited liability company, or other entity, domestic or foreign (collectively, “Person”) without the prior written consent of the City or authorized designee. In the event that Auto Center is permitted to assign this Agreement (or any portion hereof), the City may require the assignee to enter into an assignment and assumption agreement.

9.2 Assignment by City. City shall not assign, license, lease, sell, or otherwise transfer any rights under this Agreement to any Person. Without limiting the generality of the forgoing, this section 7.2 shall be deemed to prohibit City from, in any manner, (i) assigning, licensing, leasing, selling or otherwise transferring the City Operating Time, and any portion thereof, to any Person; and (ii) including in any Notice of Content any message content prepared or requested by any Person other than the Parties to this Agreement or for which the City will receive any consideration of any kind whatsoever from any Person other than the Parties to this Agreement.

10. Indemnification.

10.1 Auto Center shall defend, indemnify and hold harmless (collectively, "Indemnify") the City and its officers, employees, contractors, representatives, and agents (collectively, "City Indemnitees") from and against all claims, liability, loss, damage, costs or expenses (including attorney’s fees and court costs) (collectively, "Claims") arising from the acts or omissions of Auto Center, its officers, employees, contractors, representatives, and agents (collectively, "Auto Center Indemnitors") in connection with the Auto Center’s use, repair, maintenance, and refurbishing of the LED Sign; provided, however, that Auto Center shall have no duty to Indemnify the City Indemnitees against any Claims arising from any act or omission of the City Indemnities. 311
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4 10.2 Auto Center’s insurance or indemnification obligations under this Agreement are independent of each other and shall not in any way satisfy restrict, limit or modify the other obligation.

10.3 The obligation of Auto Center to Indemnify the City pursuant to this Agreement shall survive the termination of this Agreement, until any and all actual or prospective claims regarding any matter subject to such obligation to Indemnify the City pursuant to this Agreement are fully, finally, absolutely and completely barred by applicable statutes of limitations.

11. Insurance. During the Term, and without diminishing its responsibilities to Indemnify the City Indemnitees, Auto Center shall obtain and maintain the following insurance coverage:

11.1 Liability Insurance. Commercial general liability insurance insuring against claims for bodily injury, personal injury, death or property damage occurring upon, on or about the LED Sign at least as broad as Insurance Services Office Occurrence Form CG0001, with a minimum liability limit of Two Million Dollars ($2,000,000) for any one occurrence and Four Million Dollars ($4,000,000) aggregate.

11.2 Property Insurance. Insurance providing coverage for the LED Sign insuring against loss, damage, or destruction by fire or other hazards encompassed under the broadest form of property insurance coverage then customarily used for like properties in San Bernardino County, in an amount equal to one hundred percent (100%) of the replacement value (without deduction for depreciation) of the LED Sign (excluding excavations and foundations) and in any event sufficient to avoid co-insurance and with no co-insurance penalty provision, with “ordinance or law” coverage.

To the extent customary for like properties in San Bernardino County at the time, such insurance shall include an “increased cost of construction” endorsement and an endorsement covering demolition and cost of debris removal.

11.3 Auto Center may provide any insurance required hereunder through a “blanket” or “umbrella” insurance policy. All insurance obtained and maintained by Auto Center in satisfaction of the requirements of this Agreement shall be fully paid for and non-assessable. The Property Insurance policy shall name City as a “loss payee.” The Liability Insurance policy shall name the City Indemnities as “additional insured.” The coverage afforded to the City Indemnities shall be at least as broad as that afforded to Auto Center and may not contain any terms, conditions, exclusions, or limitations applicable to the City Indemnities that do not apply to Auto Center. Any insurance or self-insurance maintained by the City Indemnities shall be excess of all insurance required to be maintained by Auto Center under this Agreement and shall not contribute with any insurance required to be maintained by Auto Center under this Agreement. Auto Center shall furnish, or cause to be furnished, to the City evidence of the insurance required to be maintained by Auto Center under this Agreement.

12. Compliance with Law. Auto Center shall erect, re-erect, construct, enlarge, alter, repair, move, improve, convert, equip, use, operate, and/or maintain the LED Sign in compliance with all applicable laws, rules and regulations, including, but not limited to, all applicable federal and state labor laws (collectively, "Regulations"). Auto Center hereby expressly acknowledges and agrees that City has never previously affirmatively represented to Auto Center or its contractor for the LED Sign, in writing or otherwise, in a call for bids or otherwise, that the work to be covered by the bid or contract for installation of the LED Sign is not a "public work," as defined in Section 1720 of the Labor Code. Auto Center hereby agrees that Auto Center shall have the obligation to provide any 312
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5 and all disclosures, representations, statements, rebidding, and/or identifications which may be required by Labor Code Sections 1726 and 1781, as the same may be enacted, adopted or amended from time to time, or any other provision of law. Auto Center hereby agrees that Auto Center shall have the obligation to provide and maintain any and all bonds to secure the payment of contractors (including the payment of wages to workers performing any public work) which may be required by Labor Code Section 1781 as the same may be enacted, adopted or amended from time to time, or any other provision of law. Auto Center shall defend, hold harmless and indemnify the City and its respective officials, officers, employees, contractors and agents, from and against any and all loss, liability, damage, claim, cost, expense, and/or "increased costs" (including labor costs, penalties, reasonable attorney’s fees, court and litigation costs, and fees of expert witnesses) which, in connection with the refurbishing of the LED Sign, including, without limitation, any and all public works (as defined by applicable law), results or arises in any way from any of the following: (l) the noncompliance by Auto Center of any applicable local, state and/or federal law, including, without limitation, any applicable federal and/or state labor laws (including, without limitation, if applicable, the requirement to pay state prevailing wages); (2) the implementation of Sections 1726 and 1781 of the Labor Code, as the same may be enacted, adopted or amended from time to time, or any other similar law; (3) failure by Auto Center to provide any required disclosure representation, statement, rebidding and/or identification which may be required by Labor Code Sections 1726 and 1781, as the same may be enacted, adopted or amended from time to time, or any other provision of law; and/or (4) failure by Auto Center to provide and maintain any and all bonds to secure the payment of contractors (including the payment of wages to workers performing any public work) which may be required by Labor Code Section 1781, as the same may be enacted, adopted or amended from time to time, or any other provision of law. It is agreed by the Parties that, in connection with the refurbishing of the LED Sign, including, without limitation, any public work (as defined by applicable law), Auto Center shall bear all risk of payment or non-payment of state prevailing wages and/or the implementation of Labor Code Sections 1726 and 1781, as the same may be enacted, adopted or amended from time to time, and/or any other provision of law. "Increased costs" as used in this Section shall have the meaning ascribed to it in Labor Code Section 1781, as the same may be enacted, adopted or amended from time to time.

13. No Encumbrances. Auto Center shall pay any mechanics', materialmen's, contractors' or subcontractors' liens or any claim for damage arising from Auto Center's use of the LED Signs.

14. Notices. Any notice to be given or other document to be delivered by either Party to the other may be delivered in person or may be deposited in the United States mail, with first class postage prepaid, and addressed as follows:

Auto Center: Knight Sunrise Ford
c/o General Manager
16005 Valley Boulevard
Fontana, CA 92335
Attn: Jamie Lange

City: City of Fontana
City Hall
8353 Sierra Avenue
313
16498.00100\42902785.1

6 Fontana, CA 92335
Attn: Matthew Ballantyne, City Manager
With a Copy to: Best Best & Krieger LLP
2855 E. Guasti Road, Suite 400
Ontario, CA 91761
Attn: Ruben Duran, City Attorney

15. City Default. Failure by City to perform or comply with any term or provision of this Agreement constitutes a default under this Agreement. In the event of any failure by City to make payment when due, Auto Center may immediately seek any available remedy prescribed in this Section 13. With respect to any other default, the following shall apply: Auto Center shall give written notice of default to the City in the event of such default by City, specifying the default complained of by Auto Center; If the default is reasonably capable of being cured within thirty (30) days after such notice is received or deemed received, City shall have such period to effect a cure prior to exercise of remedies by Auto Center; if the default is such that it is not reasonably capable of being cured within thirty (30) days, and City (a) initiates corrective action within said 30-day period, and (b) diligently, continually, and in good faith works to effect a cure as soon as possible, then City shall have such additional time as is reasonably necessary to cure the default prior to exercise of any remedies by Auto Center; provided, however, in no event shall Auto Center be precluded from exercising remedies if the event of default, Auto Center has otherwise become or are about to become materially jeopardized by any failure to cure a default. In the event that City fails to cure a default (other than any failure or delay by City to make payment when due) in accordance with the provisions of this Section 15, Auto Center may exercise any or all of the following remedies: (i) institute a legal action to seek specific performance of City’s obligations under this Agreement; or (ii) terminate this Agreement.

16. Auto Center Default. Failure or delay by Auto Center to perform or comply with any term or provision of this Agreement constitutes a default under this Agreement. City shall give written notice of default to Auto Center, specifying the default complained of by City. If the default is reasonably capable of being cured within thirty (30) days after such notice is received or deemed received, Auto Center shall have such period to effect a cure prior to exercise of remedies by the City. If the default is such that it is not reasonably capable of being cured within thirty (30) days, and Auto Center (a) initiates corrective action within said 30-day period, and (b) diligently, continually, and in good faith works to effect a cure as soon as possible, then Auto Center shall have such additional time as is reasonably necessary to cure the default prior to exercise of any remedies by City; provided, however, in no event shall City be precluded from exercising remedies if the event of default is not cured within ninety (90) days or City's rights under this Agreement or otherwise become or are about to become materially jeopardized by any failure to cure a default. In the event that Auto Center fails to cure a default in accordance with the provisions of this Section 16, City may exercise any or all of the following remedies: (i) institute a legal action to seek specific performance of Auto Center’s obligations under this Agreement; or (ii) terminate this Agreement. Such remedies shall be in addition all other applicable legal and equitable remedies available to the City.

17. Waiver of Certain Damages. The Parties hereby agree to waive the right to lost profits, speculative, consequential, special and punitive damages.

18. Auto Center's Duty of Restoration. Auto Center shall be responsible for the restoration of the LED Sign in accordance with the damage and destruction clauses in this Section 16. 314
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7 18.1 In case of any damage to or destruction of the LED Sign, or any part thereof, Auto Center shall commence the restoration, replacement or rebuilding of the LED Sign with such alterations and additions as may be approved by the City Manager (such restoration, replacement, rebuilding alterations and additions, together with any temporary repairs and property protection pending completion of the work being herein called "Restoration") within thirty (30) days of such damage or destruction or such longer time as may be reasonably approved, in writing, by the City Manager, plus any additional period reasonably determined by the City Manager to be required to obtain any Net Insurance Proceeds, as hereinafter defined, to be used to pay all or a portion of the cost of such Restoration, and shall complete such Restoration within a reasonable period of time thereafter. As used herein, the term "Net Insurance Proceeds" means the gross insurance proceeds paid by an insurer to Auto Center for loss or damage to the LED Sign, less any and all costs and expenses (including, but not limited to reasonable attorney’s fees) incurred to recover said proceeds.

Auto Center agrees to promptly commence and prosecute to completion the settlement of insurance proceeds with respect to any event of damage or destruction of the LED Sign.

18.2 Auto Center agrees that notwithstanding any other provision of this Agreement, upon any event of damage to or destruction of the LED Sign, Auto Center shall, at its sole cost and expense, immediately take or cause to be taken such actions and to complete such work as is necessary to reasonably minimize further damage to the LED Sign pending the ultimate disposition of the LED Sign.

18.3 Insurance proceeds which are received on account of any damage to or destruction of the LED Sign, or any portion thereof (less the costs, fees and expenses incurred in the collection thereof, including without limitation attorney's fees and expenses) shall be applied as follows:

1. Within a reasonable time and in any event within 180 days after the damage to or destruction of the LED Sign, Auto Center shall furnish, or cause to be furnished to City evidence reasonably satisfactory to City (a) of the total cost of Restoration of the damaged or destroyed LED Sign and (b) that the total amount of money available will, when added to the Net Insurance Proceeds received and available to pay for the Restoration, be sufficient to pay the cost of such Restoration.

2. Net Insurance Proceeds received on account of any damage to or destruction of the LED Sign, or any part thereof, shall be paid to Auto Center or as Auto Center may direct from time to time, as Restoration progresses, solely to pay or reimburse Auto Center for the cost of Restoration.

19. City Contract Administration and Implementation. City shall implement this Agreement through its City Manager. The City Manager is hereby authorized by the City to enter into agreements and sign documents referenced in this Agreement or reasonably required to implement this Agreement on behalf of the City Council, issue approvals, interpretations or waivers and enter into amendments to this Agreement on behalf of City. All other actions shall require the consideration and approval of the City Council, unless expressly provided otherwise by action of the City Council.

20. Further Documents. The Parties hereby agree to execute such other documents and to take such other action as may be reasonably necessary to further the purposes of this Agreement.

21. Time of the Essence. Time is of the essence in this Agreement. 315
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8 22. Governing Law and Venue. This Agreement shall be governed by, interpreted under, and construed and enforced in accordance with the laws of the State of California. The Parties each acknowledge and agree that this Agreement is entered into and is to be fully performed in the City of Fontana, County of San Bernardino, State of California, and that all legal actions arising from this Agreement shall be filed in the Superior Court of the State of California in and for the County of San Bernardino, California, or the United States District Court with jurisdiction in the County of San Bernardino, California.

23. No Limitation on City Authority. Nothing in this Agreement shall be deemed to limit, modify or abridge the governmental police power or other legal authority (whether direct or delegated) of City regarding the Property, the LED Sign, or the Auto Center.

24. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their permitted successors and assigns.

25. Third Party Beneficiaries. The Parties to this Agreement acknowledge and agree that the provisions of this Agreement are for the sole benefit of City and Auto Center, and not for the benefit, directly or indirectly, of any other person or entity.

26. Severance. If any provision of this Agreement is determined by a court of competent jurisdiction to be illegal, invalid or unenforceable, such provision will be deemed to be severed and deleted from this Agreement as a whole and neither such provision, nor its severance and deletion shall in any way affect the validity of the remaining provisions of this Agreement.

27. Counterparts. This Agreement may be executed in counterparts and when so executed, each such counterpart will constitute an original document and such counterparts will constitute one and the same agreement.

[SIGNATURES ON FOLLOWING PAGE]

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9 IN WITNESS WHEREOF, the City and Auto Center have executed and entered into this Agreement as of the date first written above.

CITY:

CITY OF Fontana,
a California municipal corporation

By:

Matthew Ballantyne
City Manager

Attest:

By:

City Clerk

Approved as to form:

Best Best & Krieger LLP

By:

City Attorney

AUTO CENTER:

Knight Sunrise ford
a California corporation

By:

Name:

Title:

By:

Name:

Title:

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10 EXHIBIT “A”
TO

LEASE AGREEMENT
(Knight Sunrise Auto Center)

Property Description

318
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11 EXHIBIT “B”
TO

LEASE AGREEMENT
(Knight Sunrise Ford Auto Center)

Sign Proposal

319
320
321
322
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-3366 Agenda Date: 11/12/2024
Agenda #: A. Category: Public Hearing
FROM:

Planning Department
SUBJECT:

Municipal Code Amendment (MCA) No. 24-006: Consideration of an Urgency Ordinance Amending Section 30-467 of the Fontana Municipal Code Regarding Accessory Dwelling Units and Junior Accessory Dwelling Units to Comply with Recent Changes in State Law; and Finding the Action to Be Statutorily Exempt from CEQA Under Section 21080.17 of the Public Resources Code RECOMMENDATION:

Open the public hearing, receive public testimony, close the public hearing and by motion:

1. Find that the adoption of the proposed urgency ordinance is statutorily exempt from review under the California Environmental Quality Act (“CEQA”)under Public Resources Code section 21080.17.

2. Waive full reading and introduce for first reading by title only Ordinance No. 1959 entitled:
“ANURGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FONTANA AMENDING SECTION 30-467 OF THE CITY OF FONTANA MUNICIPAL CODE RELATING TO ACCESSORY

DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS AND FINDING THE ACTION TO BE STATUTORILY EXEMPT FROM CEQA UNDER PUBLIC RESOURCES CODE § 21080.17.”
COUNCIL GOALS:
· Provide a diverse range of housing types and levels of affordability while addressing homelessness in the community by promoting diverse range of housing projects and levels of affordability.

DISCUSSION:

In recent years, the California Legislature has approved, and the Governor has signed into law, a number of bills that impose new limits on local authority to regulate accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs). In 2024, the California Legislature approved, and the Governor signed into law, two new bills - AB 2533 and SB 1211 - that further amend state ADU law as summarized below.

The proposed ordinance will amend Section 30-467 of the Fontana Municipal Code to comply with recent changes to state law that impose new limits on local authority to regulate Accessory Dwelling Units (“ADUs”) and Junior Accessory Dwelling Units (“JADUs”).

AB 2533 - Unpermitted ADUs and JADUs
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Agenda #: A. Category: Public Hearing
Subject to limited exceptions, existing state law prohibits a city from denying a permit to legalize an unpermitted ADU that was constructed before January 1, 2018, if the denial is based on the ADU not complying with applicable building, state or local ADU standards. One exception allows a city to deny a permit to legalize if the city makes a written finding that correcting the violation is necessary to protect the health and safety of the public or the occupants of the structure. AB 2533 changes this by:
(1) expanding the above prohibition to also include JADUs; (2) moving the construction-cutoff date from January 1, 2018, to January 1, 2020; and (3) replacing the above exception with a requirement that local agencies find that correcting the violation is necessary to comply with the standards specified in Health and Safety Code section 17920.3 (Substandard Buildings).

SB 1211 - Replacement Parking Requirements; Multifamily ADUs Replacement Parking
Existing state law prohibits the City from requiring off-street parking spaces to be replaced when a garage, carport or covered parking structure is demolished in conjunction with the construction of, or conversion to, an ADU. SB 1211 amends this prohibition to now also prohibit a city from requiring replacement parking when an uncovered parking space is demolished for or replaced with an ADU.

Multifamily ADUs
SB 1211 further defines livable space in connection with converted ADUs inside a multifamily dwelling structure. Existing state law requires the City to ministerially approve qualifying building- permit applications for ADUs within “portions of existing multifamily dwelling structures that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages ….” The term “livable space” is not defined by existing state ADU law. SB 1211 changes this by adding a new definition: “‘Livablespace’means a space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation.” (See amended Gov.

Code, § 66313(e).)
SB 1211 also increases the number of detached ADUs that lots with an existing multifamily dwelling can have. Existing state law allows a lot with an existing or proposed multifamily dwelling to have up to two detached ADUs. Under SB 1211, a lot with an existing multifamily dwelling can have up to eight detached ADUs, or as many detached ADUs as there are primary dwelling units on the lot, whichever is less. (See amended Gov. Code, § 66323(a)(4)(A)(ii).) SB 1211 does not alter the number of ADUs that a lot with a proposed multifamily dwelling can have - the limit remains at two.

Next Steps & Recommendation
The proposed ordinance is an urgency measure, which means it will take immediate effect upon adoption. Typically, an ordinance affecting planning and zoning is approved by the Council after a planning-agency recommendation, a first reading and introduction before the Council and then a second reading at a regular Council meeting - with the ordinance taking effect 30 days following adoption. AB 2533 and SB 1211 will take effect on January 1, 2025 and a non-urgency adoption would take effect after that date. As a result, an urgency ordinance is necessary. A 4/5 vote of the Council is required to adopt this urgency ordinance. The urgency ordinance will be followed at the earliest possible time by a non-urgency ordinance subject to all normal procedures.

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Agenda #: A. Category: Public Hearing
For the above reasons, staff recommends that the City Council adopt the proposed urgency ordinance (Attachment 1), which will ensure that the City’s ADU ordinance remains valid when AB 2533 and SB 1211 take effect on January 1, 2025.

ENVIRONMENTAL REVIEW:

Under California Public Resources Code section 21080.17, CEQA does not apply to the adoption of an ordinance by a city or county implementing the provisions of Article 2 of Chapter 13 of Division 1 of Title 7 of the California Government Code, which is California’sADU law and which also regulates JADUs, as defined by section 66313. Therefore, the adoption of the proposed ordinance is statutorily exempt from CEQA in that it implements state ADU law.

ATTACHMENTS:

1. Planning Commission Resolution

2. Proposed Urgency Ordinance
FISCAL IMPACT:

None.

MOTION:

Accept staff’s recommendation.

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URGENCY ORDINANCE NO. 1959

AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF FONTANA AMENDING SECTION NO. 30-467 OF THE CITY OF

FONTANA MUNICIPAL CODE RELATING TO ACCESSORY DWELLING

UNITS AND JUNIOR ACCESSORY DWELLING UNITS AND FINDING

THE ACTION TO BE STATUTORILY EXEMPT FROM CEQA UNDER
PUBLIC RESOURCES CODE § 21080.17
WHEREAS, the City of Fontana, California (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, state law authorizes cities to act by ordinance to provide for the creation and regulation of accessory dwelling units (“ADUs”) and junior accessory dwelling units (“JADUs”); and
WHEREAS, in recent years , the California Legislature has approved, and the Governor has signed into law, numerous bills that, among other things, amend various sections of the Government Code to impose new limits on local authority to regulate ADUs and JADUs; and
WHEREAS, in 2024, the California Legislature approved, and the Governor signed into law, Assembly Bill 2533 (“AB 2533”) and Senate Bill 1211 (“SB 1211”), which further amend state ADU law; and
WHEREAS, AB 2533 and SB 1211 take effect January 1, 2025, and if the City’s ADU ordinance does not comply with the requirements imposed by those bills by that date, the City’s entire existing ADU ordinance becomes null and void as a matter of law; and
WHEREAS, the City desires to amend its local regulatory scheme for the construction of ADUs and JADUs to reflect AB 2533’s and SB 1211’s changes to state law; and
WHEREAS, there is a current and immediate threat to the public health, safety, or welfare based on the passage of AB 2533 and SB 1211 because if the City’s ordinance does not comply with this legislation by January 1, 2025 — and the City’s ADU ordinance becomes null and void — the City would thereafter be required to approve ADUs and JADUs in accordance with the few default standards that are provided in Chapter 13 of Division 1 of Title 7 of the California Government Code, which is the state ADU law; and WHEREAS, the approval of ADUs and JADUs based solely on the default statutory standards, without local regulations governing height, setback, landscape, and architectural review, among other things, would threaten the character of existing neighborhoods, and negatively impact property values, personal privacy, and fire safety.

These threats to public safety, health, and we lfare justify adoption of this O rdinance as 326
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an urgency ordinance to be effective immediately upon adoption by a four -fifths vote of the City Council; and
WHEREAS, to protect the public safety, health, and welfare, the City Council may adopt this Ordinance as an urgency measure in accordance with G overnment Code section 36937, subdivision (b).

NOW, THEREFORE , the City Council of the City of Fontana does ordain as follows:

Section 1. Incorporation. The recitals above are each incorporated by reference and adopted as findings by the City Council.

Section 2. CEQA. Under California Public Resources Code section 21080.17, the California Environmental Q uality Act ( “CEQA”) does not apply to the adoption of an ordinance by a city or county implementing the provisions of Article 2 of Chapter 13 of Division 1 of Title 7 of the California Government Code, which is California’s ADU law and which also regulates JADUs, as defined by section 66313 . Therefore, adoption of the Ordinance is statutorily exempt from CEQA in that it implements state ADU law.

Section 3. Code Amendment. Section No. 30-467 of the Fontana Municipal Code is hereby amended and restated to read in its entirety as provided in Exhibit “A,” attached hereto and incorporated herein by reference.

Section 4 . Effective Date . This O rdinance takes effect immediately upon its adoption.

Section 5. HCD Submittal. In accordance with Government Code section 66326, the City Clerk is directed to submit a copy of this Ordinance to the California Department of Housing and Community Development within 60 days after adoption.

Section 6. Publication. The City Clerk directed to certify to the adoption of this Ordinance and post or publish this Ordinance as required by law.

Section 7. Custodian of Records. The custodian of records for this Ordinance is the City Clerk and the records comprising the administrative record are located at 8353 Sierra Avenue, Fontana, CA 92335.

Section 8. Severability. If any provision of this Ordinance or its application to any person or circumstance is held to be invalid by a court of competent jurisdiction , such invalidity has no effect on the other pro visions or applications of the Ordinance that can be given effect without the invalid provision or application, and to this extent, the 327
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provisions of this Ordinance are severable. The City Council declares that it would have adopted this Ordinance irrespective of the invalidity of any portion thereof.

APPROVED AND ADOPTED this 12th day of November, 2024.

READ AND APPROVED AS TO LEGAL FORM:

________________________________
City Attorney

I, Germaine Key, City Clerk of the City of Fontana, and Ex-Officio Clerk of the City Council, do hereby certify that the foregoing Ordinance is the actual Ordinance adopted by the City Council and was introduced 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

___________________________________
Mayor of the City of Fontana
ATTEST:

_________________________________
City Clerk
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EXHIBIT A
Amended ADU Regulations
(follows this page)

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Sec. 30-467. Accessory dwelling units and junior accessory dwelling units. (a) Purpose; Application.
(1) Purpose. The purpose of this section is to allow and regulate accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) in compliance with California Government Code §§ 65852.2 and 65852.22.
(2) Application. This section applies to all ADUs and JADUs for which a complete application is submitted on or after January 1, 2023 2025. If a complete ADU or JADU application is submitted prior to that date, the applicant may elect in writing to proceed under the City's ADU regulations that were in effect at submittal; otherwise, this section governs. For purposes of this paragraph, a complete application includes an application that is deemed complete under state law.
(b) Effect of Conforming. An ADU or JADU that conforms to the standards in this section will not be:
(1) Deemed to be inconsistent with the city's general plan and zoning designation for the lot on which the ADU or JADU is located.
(2) Deemed to exceed the allowable density for the lot on which the ADU or JADU is located. (3) Considered in the application of any local ordinance, policy, or program to limit residential growth.
(4) Required to correct a nonconforming zoning condition, as defined in subsection (c)(8) below.

This does not prevent the city from enforcing compliance with applicable building standards in accordance with Health and Safety Code § 17980.12.
(c) Definitions. As used in this section, terms are defined as follows:
(1) Accessory dwelling unit or ADU means an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. An accessory dwelling unit also includes the following:
a. An efficiency unit, as defined by California Health and Safety Code § 17958.1; and b. A manufactured home, as defined by California Health and Safety Code § 18007. (2) Accessory structure means a structure that is accessory and incidental to a dwelling located on the same lot.
(3) Attached accessory dwelling unit means an ADU that is connected via a permanent wall, ceiling, or floor to a primary dwelling on the same lot. "Attached accessory dwelling unit" does not include an ADU that is only attached to a primary dwelling via a patio structure, overhang, breezeway, or similar structure. Reserved.
(4) Complete independent living facilities means permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multi-family dwelling is or will be situated.
(5) Efficiency kitchen means a kitchen that includes all of the following:
a. A cooking facility with appliances.
b. A food preparation counter and storage cabinets that are of a reasonable size in relation to the size of the JADU.
(6) "Junior accessory dwelling unit" or "JADU" means a residential unit that satisfies all of the following:
a. It is no more than 500 square feet in size.
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b. It is contained entirely within an existing or proposed single-family structure. An enclosed use within the residence, such as an attached garage, is considered to be a part of and contained within the single-family structure.
c. It includes its own separate sanitation facilities or shares sanitation facilities with the existing or proposed single-family structure.
d. If the unit does not include its own separate bathroom, then it contains an interior entrance to the main living area of the existing or proposed single-family structure in addition to an exterior entrance that is separate from the main entrance to the primar y dwelling.
e. It includes an efficiency kitchen, as defined in subsection (c)(5) above. (7) “Livable space” means a space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation.
(8) Living area means the interior habitable area of a dwelling unit a space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation , including basements and attics, but does not include a garage or any accessory structure. (8) Nonconforming zoning condition means a physical improvement on a property that does not conform with current zoning standards.
(9) Passageway means a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the ADU or JADU.
(10) Proposed dwelling means a dwelling that is the subject of a permit application and that meets the requirements for permitting.
(11) Public transit means a location, including, but not limited to, a bus stop or train station, where the public may access buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public. (12) Tandem parking means that two or more automobiles are parked on a driveway or in any other location on a lot, lined up behind one another.
(13) Total floor area means the total floor area of the ADU or JADU, inclusive of all habitable and non-habitable areas of the structure, including, but not limited to stairways, hallways, basements, attics, garages, storage areas, restrooms.
(d) Approvals. The following approvals apply to ADUs and JADUs under this section:
(1) Building-permit only. If an ADU or JADU complies with each of the general requirements in subsection (e) below, it is allowed with only a building permit in the following scenarios:
a. Converted on lot with single-family. One ADU as described in this subsection (d)(1)(a) and one JADU on a lot with a proposed or existing single-family dwelling on it, where the ADU or JADU:

1. Is either: within the space of a proposed single-family dwelling; within the existing space of an existing single-family dwelling; or (in the case of an ADU only) within the existing space of an accessory structure, plus up to 150 additional square feet if the expansion is limited to accommodating ingress and egress; and

2. Has exterior access that is independent of that for the single-family dwelling; and

3. Has side and rear setbacks sufficient for fire and safety, as dictated by applicable building and fire codes.

4. The JADU complies with the requirements of Government Code § 65852.22 sections 66333 through 66339.
b. Limited detached on lot with single-family. One detached, new-construction ADU on a lot with a proposed or existing single-family dwelling (in addition to any JADU that might 331
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otherwise be established on the lot under subsection (d)(1)(a) above), if the detached ADU satisfies each of the following limitations:

1. The side- and rear-yard setbacks are at least four feet.

2. The total floor area is 800 square feet or smaller.

3. The peak height above grade does not exceed the applicable height limit in subsection (e)(2) below.
c. Converted on lot wi th multi -family. One or more ADUs within portions of existing multi - family dwelling structures that are not used as livable space, including, but not limited to storage rooms, boiler rooms, passageways, attics, basements, or garages, if each converted ADU complies with state building standards for dwellings. Under this subsection (d)(1)(c), at least one converted ADU is allowed within an existing multi-family dwelling, up to a quantity equal to 25 percent of the existing multi-family dwelling units. d. Limited detached on lot with multi-family. No more than two detached ADUs on a lot that has an existing or a proposed multi-family dwellings, or up to eight detached ADUs on a lot with existing multi-family dwellings, if each detached ADU satisfies all of the following:

1. The side- and rear-yard setbacks are at least four feet. If the existing multi-family dwelling has a rear or side yard setback of less than four feet, the city will not require any modification to the multi-family dwelling as a condition of approving the ADU.

2. The peak height above grade does not exceed the applicable height limit provided in subsection (e)(2) below.

3. If the lot has existing multi-family dwellings, the quantity of detached ADUs does not exceed the number of primary dwelling units on the lot. (2) ADU permit.
a. Except as allowed under subsection (d)(1) above, no ADU may be created without a building permit and an ADU permit in compliance with the standards set forth in subsections (e) and (f) below.
b. The city may charge a fee to reimburse it for costs incurred in processing ADU permits, including the costs of adopting or amending the city's ADU ordinance. The ADU -permit processing fee is determined by the Director of Planning and approved by the city council by resolution.
(3) Process and Timing.
a. An ADU permit is considered and approved ministerially, without discretionary review or a hearing.
b. The city must approve or deny an application to create an ADU or JADU within 60 days from the date that the city receives a completed application. If the city has not approved or denied the completed application within 60 days, the application is deemed approved unless either:

1. The applicant requests a delay, in which case the 60-day time period is tolled for the period of the requested delay, or

2. When an application to create an ADU or JADU is submitted with a permit application to create a new single-family or multi-family dwelling on the lot, the city may delay acting on the permit application for the ADU or JADU until the city acts on the permit application to create the new single-family or multi-family dwelling, but the application to create the ADU or JADU will still be considered ministerially without discretionary review or a hearing.
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c. If the city denies an application to create an ADU or JADU, the city must provide the applicant with comments that include, among other things, a list of all the defective or deficient items and a description of how the application may be remedied by t he applicant. Notice of the denial and corresponding comments must be provided to the applicant within the 60-day time period established by subsection (d)(3)(b) above. d. A demolition permit for a detached garage that is to be replaced with an ADU is rev iewed with the application for the ADU and issued at the same time. (e) General ADU and JADU requirements. The following requirements apply to all ADUs and JADUs that are approved under subsection (d)(1) or (d)(2) above:
(1) Zoning.
a. An ADU or JADU subject only to a building permit under subsection (d)(1) above may be created on a lot in a residential or mixed-use zone.
b. An ADU or JADU subject to an ADU permit under subsection (d)(2) above may be created on a lot that is zoned to allow single-family dwelling residential use or multi-family dwelling residential use.
c. In accordance with Government Code section 66333(a), a JADU may only be created on a lot zoned for single-family residences.
(2) Height.
a. Except as otherwise provided by subsections (e)(2)(b) and (e)(2)(c) below, a detached ADU created on a lot with an existing or proposed single-family or multi-family dwelling unit may not exceed 16 feet in height.
b. A detached ADU may be up to 18 feet in height if it is created on a lot with an existing or proposed single-family or multi-family dwelling unit that is located within one-half mile walking distance of a major transit stop or a high quality transit corridor, as those terms are defined in Public Resources Code § 21155, and the ADU may be up to two additional feet in height (for a maximum of 20 feet) if necessary to accommodate a roof pitch on the ADU that is aligned with the roof pitch of the primary dwelling unit. c. A detached ADU created on a lot with an existing or proposed multi-family dwelling that has more than one story above grade may not exceed 18 feet in height. d. An ADU that is attached to the primary dwelling may not exceed 25 feet in height o r the height limitation imposed by the underlying zone that applies to the primary dwelling, whichever is lower. Notwithstanding the foregoing, ADUs subject to this subsection (e)(2)(d) may not exceed two stories.
e. For purposes of this subsection (e)(2), height is measured from existing legal grade to the peak of the structure.
(3) Fire sprinklers.

1.a. Fire sprinklers are required in an ADU if sprinklers are required in the primary residence.

2.b. The construction of an ADU does not trigger a requirement for fire sprinklers to be installed in the existing primary dwelling.
(4) Rental term. No ADU or JADU may be rented for a term that is shorter than 30 days. This prohibition applies regardless of when the ADU or JADU was created. (5) No separate conveyance. An ADU or JADU may be rented but, except as otherwise provided in Government Code § 65852.26, no ADU or JADU may be sold or otherwise conveyed separately from the lot and the primary dwelling (in the case of a single-family lot) or from the lot and all of the dwellings (in the case of a multi-family lot). 333
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(6) Septic system. If the ADU or JADU will connect to an onsite wastewater-treatment system, include with the application a percolation test completed within the last five years or, if the percolation test has been recertified, within the last ten years. (7) Owner occupancy. As required by state law, all JADUs are subject to an owner occupancy requirement. A natural person with legal or equitable title to the property must reside on the property, in either the primary dwelling or JADU, as the person's legal domicile and permanent residence. However. the owner-occupancy requirement in this subsection (e)(7)(c) does not apply if the property is entirely owned by another governmental agency. land trus t. or housing organization.
a. ADUs created under this section on or after January 1, 2020 are not subject to an owner - occupancy requirement.
b. As required by state law, all JADUs are subject to an owner -occupancy requirement. A natural person with legal or equitable title to the property must reside on the property, in either the primary dwelling or JADU, as the person’s legal domicile and permanent residence. However, the owner-occupancy requirement in this subsection 0 does not apply if the property is entirely owned by another governmental agency, land trust, or housing organization.
(8) Deed restriction. Prior to issuance of a building permit for an ADU or JADU, a deed restriction must be recorded against the title of the property in the County Recorder's office and a copy filed with the Director Planning Department. The deed restriction must run with the land and bind all future owners. The form of the deed restriction will be provided by the city and must provide that:
a. Except as otherwise provided in Government Code § 65852.26 section 66341, the ADU or JADU may not be sold separately from the primary dwelling. b. The ADU or JADU is restricted to the approved size and to other attributes allowed by this section.
c. The deed restriction runs with the land and may be enforced against future property owners.
d. The deed restriction may be removed if the owner eliminates the ADU or JADU, as evidenced by, for example, removal of the kitchen facilities. To remove the deed restriction, an owner may make a written request of the Director, providing evidence that the ADU or JADU has in fact been eliminated. The Director may then determine whether the evidence supports the claim that the ADU or JADU has been eliminated. Appeal may be taken from the Director's determination consistent with other provisions of this Code. I f the ADU or JADU is not entirely physically removed but is only eliminated by virtue of having a necessary component of an ADU or JADU removed, the remaining structure and improvements must otherwise comply with applicable provisions of this Code. e. The deed restriction is enforceable by the director or his or her designee for the benefit of the city. Failure of the property owner to comply with the deed restriction may result in legal action against the property owner, and the city is authorized to obtain any remedy available to it at law or equity, including, but not limited to, obtaining an injunction enjoining the use of the ADU or JADU in violation of the recorded restrictions or abatement of the illegal unit.
(9) Reserved. Income reporting. In order to facilitate the city's obligation to identify adequate sites for housing in accordance with Government Code §§ 65583.1 and 65852.2, the following requirements must be satisfied:
a. With the building-permit application, the applicant must provide the city with an estimate of the projected annualized rent that will be charged for the ADU or JADU. b. Within 90 days after each yearly anniversary of the issuance of the building permit, the owner must report the actual rent charged for the ADU or JADU during the prior year. If 334
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the city does not receive the report within the 90-day period, the owner is in violation of this Code, and the city may send the owner a notice of violation and allow the owner another 30 days to submit the report. If the owner fails to submit the report within the 30- day period, the city may enforce this provision in accordance with applicable law. (10) Building and safety.
a. Must comply with building code. Subject to subsection (e)(10)(b) below, all ADUs and JADUs must comply with all local building code requirements. b. No change of occupancy. Construction of an ADU does not constitute a Group R occupancy change under the local building code, as described in California Building Code § 310, unless the building official or Code Compliance Department makes a written finding based on substantial evidence in the record that the construction of the ADU could have a specific, adverse impact on public health and safety. Nothing in this subsection (e)(10)(b) prevents the city from changing the occupancy code of a space that was uninhabitable space or that was only permitted for non-residential use and was subsequently converted for residential use in accordance with this section. (f) Specific ADU requirements. The following requirements apply only to ADUs that require an ADU permit under subsection (d)(2) above.
(1) Maximum size.
a. The maximum size of a detached or attached ADU subject to this subsection (f) is 1,200 square feet.
b. An attached ADU that is created on a lot with an existing primary dwelling is further limited to 50 percent of the floor area of the existing primary dwelling. c. Application of other development standards in this subsection (f), such as lot coverage, might further limit the size of the ADU, but no application of the percent-based size limit in subsection (f)(1)(b) above or of an FAR, front setback, lot coverage limit, or open-space requirement may require the ADU to be less than 800 square feet. (2) Setbacks.
d.a. An ADU that is subject to this subsection (f) must conform to an 18-foot front-yard setback, subject to subsection (f)(1)(c) above.
e.b. An ADU that is subject to this subsection (f) must conform to four-foot side- and rear-yard setbacks.
f.c. No setback is required for an ADU that is subject to this subsection (f) if the ADU is constructed in the same location and to the same dimensions as a legal existing structure.
(2) (3) Lot coverage. No ADU subject to this subsection (f) may cause the total lot coverage of the lot to exceed 50 percent, subject to subsection (f)(1)(c) above. (3) (4) Passageway. No passageway, as defined by subsection (c)(9) above, is required for an ADU. (4) (5) Parking.
a. Generally. One off-street parking space is required for each ADU. The parking space may be provided in setback areas or as tandem parking, as defined by subsection (c)(12) above.
b. Exceptions. No parking under subsection (f)(4)(a) is required in the following situations:

1. The ADU is located within one-half mile walking distance of public transit, as defined in subsection (c)(11) above.

2. The ADU is located within an architecturally and historically significant historic district.
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3. The ADU is part of the proposed or existing primary residence or an accessory structure under subsection (d)(1)(a) above.

4. When on-street parking permits are required but not offered to the occupant of the ADU.

5. When there is an established car share vehicle stop located within one block of the ADU.

6. When the permit application to create an ADU is submitted with an application to create a new single-family or new multi-family dwelling on the same lot, provided that the ADU or the lot satisfies any other criteria listed in subsections (f)(4)(b)(1) through (5) above.
c. No replacement. When a garage, carport, or covered parking structure, or uncovered parking space is demolished in conjunction with the construction of an ADU or converted to an ADU, those off-street parking spaces are not required to be replaced. (5) (6) Architectural requirements.
a. The materials and colors of the exterior walls, roof, and windows and doors must match the appearance and architectural design of those of the primary dwelling. b. The roof slope must match that of the dominant roof slope of the primary dwelling. The dominant roof slope is the slope shared by the largest portion of the roof. c. The exterior lighting must be limited to down-lights or as otherwise required by the building or fire code.
d. The ADU must have an independent exterior entrance, apart from that of the primary dwelling.
e. The interior horizontal dimensions of an ADU must be at least ten feet wide in every direction, with a minimum interior wall height of seven feet. f. Windows and doors of the ADU may not have a direct line of sight to an adjoining residential property. Fencing, landscaping, or privacy glass may be used to provide screening and prevent a direct line of sight.
g. All windows and doors in an ADU are less than 30 feet from a property line that is not a public right-of-way line must either be (for windows) clerestory with the bottom of the glass at least six feet above the finished floor, or (for windows and for doors) utilize frosted or obscure glass.
(6) (7) Landscape requirements. Evergreen landscape screening must be planted and maintained between the ADU, and adjacent parcels as follows:
a. At least one 15-gallon size plant shall be provided for every five linear feet of exterior wall. Alternatively, at least one 24-inch box size plant shall be provided for every ten linear feet of exterior wall.
b. Plant specimens must be at least six feet tall when installed. As an alternative, a solid fence of at least six feet in height may be installed.
c. All landscaping must be drought tolerant.
(7) (8) Historical protections. An ADU that is on or within 600 feet of real property that is listed in the California Register of Historic Resources must be located so as to not be visible from any public right-of-way.
(9) Allowed Stories. No ADU subject to this subsection (f) may have more than one story, except that an ADU that is attached to the primary dwelling may have the stories allowed under subparagraph (e)(2)(D) of this section.
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(g) Fees. The following requirements apply to all ADUs that are approved under subsections (d)(1) or (d)(2) above.
(1) Impact fees.
a. No impact fee is required for an ADU that is less than 750 square feet in size. For purposes of this subsection (g)(1), "impact fee" means a "fee" under the Mitigation Fee Act (Government Code § 66000(b)) and a fee under the Quimby Act (Government Code § 66477). "Impact fee" here does not include any connection fee or capacity charge for water or sewer service.
b. Any impact fee that is required for an ADU that is 750 square feet or larger in size must be charged proportionately in relation to the square footage of the primary dwelling unit. (E.g., the floor area of the ADU, divided by the floor area of the primary dwelling, times the typical fee amount charged for a new dwelling.)
(2) Utility fees.
a. If an ADU is constructed with a new single-family home, a separate utility connection directly between the ADU and the utility and payment of the normal connection fee and capacity charge for a new dwelling are required.
b. Except as described in subsection (g)(2)(a), converted ADUs on a single-family lot that are created under subsection (d)(1)(a) above are not required to have a new or separate utility connection directly between the ADU and the utility. Nor is a connection fee or capacity charge required.
c. Except as described in subsection (g)(2)(a), all ADUs that are not covered by subsection (g)(2)(b) require a new, separate utility connection directly between the ADU and the utility for any utility that is provided by the city. All utilities that are not provided by the city are subject to the connection and fee requirements of the utility provider.

1. The connection is subject to a connection fee or capacity charge that is proportionate to the burden created by the ADU based on either the floor area or the number of drainage-fixture units (DFU) values, as defined by the Uniform Plumbing Code, upon the water or sewer system.

2. The portion of the fee or charge that is charged by the city may not exceed the reasonable cost of providing this service.
(h) Nonconforming zoning code conditions, building code violations, and unpermitted structures. (1) Generally. The city will not deny an ADU or JADU application due to a nonconforming zoning condition, building code violation, or unpermitted structure on the lot that does not present a threat to the public health and safety and that is not affected by the construction of the ADU or JADU.
(2) Unpermitted ADUs and JADUs constructed before 2018 2020. a. Permit to legalize. As required by state law, the city may not deny a permit to legalize an existing, but unpermitted ADU or JADU that was constructed before January 1, 2018 2020, if denial is based on either of the following grounds:

1. The ADU or JADU violates applicable building standards, or

2. The ADU or JADU does not comply with the state ADU or JADU law (Government Code § 65852.2) or this ADU ordinance (Section 30-467). b. Exceptions.

1. Notwithstanding subsection (h)(2)(a) above, the city may deny a permit to legalize an existing, but unpermitted ADU or JADU that was constructed before January 1, 2018 2020, if the city makes a finding that correcting a violation is necessary to 337
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protect the health and safety of the public or of occupants of the structure to comply with the standards specified in Health and Safety Code section 17920.3.

2. Subsection (h)(2)(a) above does not apply to a building that is deemed to be substandard in accordance with California Health and Safety Code § 17920.3.

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