Fontana City Council
January 28, 2025

Tuesday, January 28, 2025
2:00 PM
City of Fontana
8353 Sierra Avenue
Fontana, CA 92335
Revised Agenda
Ord. No.1965 Reso. No. 2025-001
Grover W. Taylor Council Chambers
City Council Meeting
Acquanetta Warren - Mayor
Peter A. Garcia - Mayor Pro Tem
John B. Roberts - Council Member
Jesus "Jesse" Sandoval - Council Member
Phillip Cothran - Council Member
Germaine Key - City Clerk
Janet Koehler-Brooks, City Treasurer
1 City Council Meeting Revised Agenda January 28, 2025
Welcome to a meeting of the Fontana City Council.

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

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

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

PUBLIC COMMUNICATION - CLOSED SESSION:

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

A. Public Communications - Closed Session
CLOSED SESSION:

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

LITIGATION
(Gov. Code Section 54956.9(d)(1))
Name of Case: Luis Shalabi vs. City of Fontana Case No .

CIVDS1314694

2. CONFERENCE WITH LABOR NEGOTIATOR PURSUANT
TO GOVERNMENT CODE SECTION 54957.6 City Negotiator:

Matthew Ballantyne, City Manager and Rakesha Voss,
25-0012

2 City Council Meeting Revised Agenda January 28, 2025
Director of Human Resources and Risk Management .

Employee Organization(s): Teamsters Local 1932 City Hall Bargaining Unit; Teamsters Local 1932 Yard Bargaining
Unit; Police Management Association; Police Benefits
Association; Police Officers Association and
Management/Confidential Employees.

CALL TO ORDER/ROLL CALL:

A. Call To Order/Roll Call:

INVOCATION/PLEDGE OF ALLEGIANCE:

A. Invocation/Pledge of Allegiance:

SPECIAL PRESENTATIONS:

A. Special Presentations
A. A. Presentation by San Bernardino County District # 2 Supervisor.

B. Housing Department Annual Report Presentation,
Valerie Gonzales, Housing Development Manager to
present).

C. Mayor Warren and City Council to recognize, Officer
Christine Tomicic and Probation Officer Jazmyne White as November 2024 Employees of the Month (Captain Burton to present).
25-0013
PUBLIC COMMUNICATIONS:

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

A. Public Communications
CONSENT CALENDAR:

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

3 City Council Meeting Revised Agenda January 28, 2025
Approve Consent Calendar Items as recommended by staff.

A. Approval of Minutes 25-0002
Approve the minutes of the December 10, 2024, Regular City Council Meeting.

City Council Meeting Minutes 12-10-2024.pdfAttachments:

B. Adoption of Ordinance No. 1960 (Second Reading) ,
Approving a Development Agreement with Catalyst-
Fontana, LLC, concerning a retail cannabis business and direct staff to file a Notice of Exemption
25-0003
Second Reading/Adopt Ordinance No. 1960, Approving a Development Agreement with Catalyst- Fontana, LLC, concerning a retail cannabis business and direct staff to file a Notice of Exemption.

Ord 1960.docxAttachments:

C. Adoption of Ordinance No. 1961 (Second Reading) ,
approving Master Case No. 24-067 and Municipal Code
Amendment No. 24-005 to amend multiple sections of
Chapter 30 of the Fontana Zoning and Development Code,
including amendments to density bonuses, entitlement
extension approvals and minor administrative cleanup
items, restrictions on single-serving alcohol sales,
premise-to-premise transfer of conditional use permits for alcohol sales, food truck standards, minor planned unit development standards, temporary use permits, in-home
childcare facilities, permitted land uses in the Downtown Core, and Form-Based Code zoning district development
standards
25-0004
Second Reading/Adopt Ordinance No. 1961, Approving Master Case No. 24-067 and Municipal Code Amendment No. 24-005 to amend multiple sections of Chapter 30 of the Fontana Zoning and Development Code.

Ord 1961.docxAttachments:

D. Adoption of Ordinance No. 1963 (Second Reading) ,
Approving Specific Plan Amendment No. 24-002 to Modify
Chapter 5.6 The Southwest Industrial Park Specific Plan To Allow Nonconforming Pallet Yards to Expand Operations
Within Existing Sites Governed Under the SWIP Specific
Plan, Pursuant to The Certified Southwest Industrial Park Specific Plan EIR and Directing Staff To File A Notice of Exemption
25-0009
Second Reading/Adopt Ordinance No. 1963, Approving Specific Plan

4 City Council Meeting Revised Agenda January 28, 2025
Amendment No. 24-002 to Modify Chapter 5.6 The Southwest Industrial Park Specific Plan To Allow Nonconforming Pallet Yards to Expand Operations Within Existing Sites Governed Under the SWIP Specific Plan, Pursuant to The Certified Southwest Industrial Park Specific Plan EIR and Directing Staff To File A Notice of Exemption.

Ord 1963.docxAttachments:

E. Adoption of Ordinance No. 1964 (Second Reading) ,
Authorizing the Levy of a Special Tax within Community
Facilities District No. 115M
25-0010
Second Reading/Adopt Ordinance No. 1964, Authorizing the Levy of a Special Tax within Community Facilities District No. 115M.

Ord 1964.docxAttachments:

F. Adopt a Resolution of the City Council of the City of Fontana, California, Adopting Updated Salary Tables for Executive and Management Confidential Employees.
25-0005
Adopt Resolution No. 2025-001, a resolution of the City Council of the City of Fontana, California, adopting the updated Executive and Management/Confidential salary tables, effective February 8, 2025.

Reso No. 2025-001 docx.docxAttachments:

G. Adopt Resolutions Amending and Restating the Executive Management Benefits Schedule for the Executive
Management Team and the Compensation Plan for
Management/Confidential Employees
25-0006
Adopt Resolution No. 2025-002, a Resolution of the City Council of the City of Fontana, California, Amending and Restating the Executive Management Benefits Schedule for the Executive Management Team
Adopt Resolution No. 2025-003, a Resolution of the City Council of the City of Fontana, California, Amending and Restating the Compensation Plan for Management/Confidential Employees
Reso No .2025-002.docx
Reso No. 2025-003.docx
Attachments:

H. Approve a Cooperative Agreement with the County of San Bernardino for the Design and Construction of the Arrow Route Sewer Main Project
21-3404

1. Approve and authorize the City Manager to execute a Cooperative Agreement with the County of San Bernardino for the Design and Construction of the Arrow Route Sewer Main Project.

5 City Council Meeting Revised Agenda January 28, 2025

2. Authorize the City Manager to execute any future individual amendments to the Cooperative Agreement for the Arrow Route Sewer Main Project.

Final Cooperative AgreementAttachments:

I. Police Department Donations July - December 2024 21-3428 Accept monetary and gift donations from multiple donors including community programs, businesses, and citizens.

PD July-Dec 2024 Donation list.pdfAttachments:

J. Award Bid and Approve an Agreement with Symba Center for Mobile Opioid Outreach Services
21-3483

1. Award and authorize the City Manager to enter into an agreement with Symba Center to provide Mobile Opioid Outreach Services for one year in the amount of $447,881.28 (Bid No HD-25-65-SP) for the first year.

2. Approve and authorize the City Manager to execute (4) future one-year optional extensions to the agreement with Symba Center for Mobile Opioid Outreach Services not to exceed $2,000,000.

Project Report Summary.pdf
DRAFT - Symba Agreement HD-25-65-SP.pdf
Attachments:

K. Final Acceptance of the Southridge Grid 53 Pavement
Rehabilitation Project
21-3497
Accept as complete the work performed by Matich Corporation for the Southridge Grid 53 Pavement Rehabilitation Project (PN 37600061).

Vicinity Map.pdfAttachments:

L. Resolution Ratifying the 2024-2027 Memoranda of
Understanding for the Teamsters Local 1932, City Hall and Public Works Bargaining Units
21-3500
Adopt Resolution No. 2025-004, a resolution of the City Council of the City of Fontana, ratifying the Memoranda of Understanding between the City of Fontana and the Teamsters Local 1932, City Hall and Public Works Bargaining Units.

Reso No. 2025-004.docxAttachments:

M. Declaring a Portion of City-Owned Real Property on Lytle Creek Road Exempt Surplus Land, south of Duncan
Canyon Road. Property is adjacent to the Ventana Specific Plan.
21-3502

6 City Council Meeting Revised Agenda January 28, 2025
Adopt Resolution No. 2025-005, declaring a portion of City-Owned Real Property on Lytle Creek Road Exempt Surplus Land.

Lytle Creek Road - Resolution for Exempt Surplus Land
Determination - FINAL 12.19.24.docx
Attachments:

N. Final Acceptance of the Alder Middle School Safe Routes to School (SRTS) Project (Bid No. SB-146-DE-23)
21-3504
Accept as complete the work performed by All American Asphalt for the Alder Middle School Safe Routes to School (SRTS) Project (#37603367).

Vicinity MapAttachments:

O. Final Acceptance of the S. Highland Avenue and Mango Avenue Traffic Signal Project (Bid No. SB-97-DE-23)
21-3505
Accept as complete the work performed by Alfaro Communications Construction, Inc. for the construction of the S. Highland Avenue and Mango Avenue Traffic Signal Project (#37603382).

Vicinity MapAttachments:

P. Final Acceptance for the Construction of the N. Cherry Avenue at Live Oak Avenue Traffic Signal Modification
Project (Bid No. SB-89-DE-22)
21-3512
Accept as complete the work performed by Gentry General Engineering for the Construction of the N. Cherry Avenue at Live Oak Avenue Traffic Signal Modification Project (SB-89-DE-22).

Vicinity MapAttachments:

Q. Police Department Monthly Information Update 21-3515 Accept the Police Department monthly information update for November 2024.

November 2024 Report for City Council Rev.pptxAttachments:

R. Approve an Increase in City-Owned Contingency for the Design-Build Contract for the City Hall Renovation Project - Phase I (Fire Annex; SQ-25-DE-23-01)
21-3517
Approve and authorize the City Manager to increase the City-Owned Contingency in the amount of $1,500,000.00, for a total City-Owned Contingency amount of $2,358,357.00 (Bid No. SQ-25-DE-23-01).

Vicinity Map.pdfAttachments:

S. Approval of a Salary Adjustment for the Fontana Police Officer’s Association (POA) in Response to Classification 25-0014

7 City Council Meeting Revised Agenda January 28, 2025
and Compensation Study Findings.

Adopt Resolution No. 2025-006, a resolution of the City Council of the City of Fontana, California, adopting the updated salary table for the Fontana Police Officer’s Association.

Reso No. 2025-006.docxAttachments:

T. Senior Community Center Parking Lot Lighting Repair 25-0020

1. Authorize the issuance of a contract to AZE Electric, Inc. for the Senior Community Center Parking Lot Lighting Repair work in the amount of $25,000 with a 10% contingency of $2,500.

2. Increase appropriations in the amount of $27,500 from the available balance in the General Fund 101 to ORG 10137202.8130
Senior Community Center Electrical Security Lighting Repair (003).pdf
Attachments:

NEW BUSINESS:

A. New Business
A. Adopt Ordinance No. 1965, an Ordinance of the City
Council of the City of Fontana, California, Amending
sections 2-142, 2-143, 2-144, and 2-341 in Chapter 2 of the Fontana Municipal Code to make sections more intuitive
and to incorporate current best practices.
25-0024

1. Determine that staff recommendations to modify sections 2-142, 2-143, 2- 144, and 2-341 in Chapter 2 of the Fontana Municipal Code are appropriate, make for a more intuitive municipal code, and incorporate current best practices of the City and approve such modifications

2. Read by title only and waive the further reading of section 2-142 to update the current scheduled time of the Fontana City Council meetings to be set by Resolution of the City Council.

3. Read by title only and waive the further reading of section 2-143 to establish associated compensation requirements and references for the Planning Commission. To update the current scheduled time of the Planning Commission meetings to be set by Resolution of the City Council.

4. Read by title only and waive the further reading of section 2-144 to establish the name of the Parks, Community, and Human Services Commission, update the associated compensation requirements, and update the current scheduled time of the Parks, Community, and Human Services Commission meetings to be set by Resolution of the City Council.

5. Read by title only and waive the further reading of section 2-341 removing attendance requirement criteria to become a commissioner.

8 City Council Meeting Revised Agenda January 28, 2025

6. Adopt Resolution No. 2025-007 establishing the compensation for members of the Parks, Community and Human Services Commission and Planning Commission.

7. Adopt Resolution No. 2025-008 establishing the times of the regular meetings for the City Council, Parks, Community and Human Services Commission and Planning Commission.

Fontana - Ordinance Amending Sections of Chapter 2 for CC Meeting Time and Parks Community and Human
Services Commission Items-c1-c1.docx
Sec._2_144.__ARTICLE_IV.___MEETINGS - FontanaEdits
1-8-2025. BBK Edits.-c1.docx
Sec._2_341.___Appointment__number__removal_and_term
s_of_members_of_commissions__boards_and_bureaus.

BBK Edits.-c1-c1.docx
Fontana- Resolution to Establishing Compensation for Parks Community and Human Services Commission and Planning
Commission-c1.docx
FONTANA_ RESOLUTION TO CHANGE CITY COUNCIL,
PARKS, AND PC MEETING TIME-c1.docx
Attachments:

CITY MANAGER COMMUNICATIONS:

A. City Manager Communications
ELECTED OFFICIALS COMMUNICATIONS/REPORTS:

A. Elected Officials Communications/Reports
A. Appointment of Mayor Pro Tem 21-3519
Consider an appointment of a Council Member to the position of Mayor Pro Tem for a one-year term.

B. Discussion and Possible Action Regarding Appointing
Regular and Alternate Members to Local Agencies
/Regional Boards
21-3520
C. Discussion and Possible Action Regarding Appointment to the Parks, Community, and Human Services Commission
and Planning Commission for a two-year term
21-3521
ADJOURNMENT:

A. Adjournment
Adjourn to the Goal Setting Meeting on January 30, 2025 at 8:00 A.M. at the Heritage Neighborhood Center located at 7350 W. Liberty Parkway, Fontana, California.

9 City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0012 Agenda Date: 1/28/2025
Agenda #: A. Category: Closed Session
Closed Session
Tuesday, January 28, 2025
1:00 P.M.

City Hall - Executive Conference Room
City Council
Acquanetta Warren, Mayor
Peter Garcia, Mayor Pro Tem
John Roberts, Council Member
Jesus “Jesse” Sandoval, Council Member
Phillip W. Cothran., Council Member
City of Fontana Printed on 1/22/2025Page 1 of 1
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10 City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0013 Agenda Date: 1/28/2025
Agenda #: A. Category: Special Presentation
Special Presentation
Tuesday, January 28, 2025
Council Chambers
City Council
Acquanetta Warren, Mayor
Phillip W. Cothran. Mayor Pro Tam
John Roberts, Council Member
Jesse “Jesus” Sandoval, Council Member
Peter Garcia, Council Member
City of Fontana Printed on 1/22/2025Page 1 of 2
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11 File #: 25-0013 Agenda Date: 1/28/2025
Agenda #: A. Category: Special Presentation
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12 City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0002 Agenda Date: 1/28/2025
Agenda #: A. Category: Consent Calendar
FROM:

City Clerk
SUBJECT:

Approval of Minutes
RECOMMENDATION:

Approve the minutes of the December 10, 2024, Regular City Council Meeting.

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

DISCUSSION:

The City Council will consider approval of the minutes of the December 10, 2024, Regular City Council Meeting. The draft minutes are attached to this report for Council review and approval.

FISCAL IMPACT:

None.

MOTION:

Approve staff recommendation.

City of Fontana Printed on 1/21/2025Page 1 of 1
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13

City of Fontana

8353 Sierra Avenue
Fontana, CA 92335

Minutes

Tuesday, December 10, 2024

2:00 PM

Grover W. Taylor Council Chambers

City Council Meeting

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

14

CLOSED SESSION:

A. 12:30 P.M. CLOSED SESSION
The Closed Session meeting of the Fontana City Council was held in the Executive Conference Room, 8353 Sierra Avenue, Fontana, CA 92335, on Tuesday, December 10 , 2024.

Mayor Pro Tem Garcia called the meeting to order at 12:31 p.m. All City Council members were present, with the exception of Mayor Warren, who joined during Closed Session.

PUBLIC COMMUNICATION - CLOSED SESSION:

There were no public communications received for the following items:

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

2. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
(Gov. Code Section 54956.9(d)(1))
Name of Case: LEONARDO ANGEL VEGA v CITY OF
FONTANA; JOHN R. GEARHEART et al.

CASE NO.: CIVSB2406036

3. CONFERENCE WITH LABOR NEGOTIATOR PURSUANT TO GOVERNMENT CODE SECTION 54957.6
City Negotiator: Matthew Ballantyne, City Manager and Rakesha Voss, Director of Human Resources and Risk Management.

Employee Organization(s): Teamsters Local 1932 City Hall Bargaining Unit; Teamsters Local 1932 Yard Bargaining Unit; Police Management Association; Police Benefits Association; and Management/Confidential Employees.

4. CONFERENCE WITH LABOR NEGOTIATOR PURSUA NT TO GOVERNMENT CODE SECTION 54957.6
City Negotiator: Matthew Ballantyne, City Manager and Rakesha Voss, Director of Human Resources and Risk Management.

Employee Organization(s): Police Officers Association.

5. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Gov. Code section 54956.8)
Property: 14355 Foothill Blvd. APN # 0230-051-03
15

City Negotiator: Phillip Burum, Deputy City Manager
Negotiating Party: Ara Tchaghlassian, Avant Real Estate, LLC Under Negotiation: Price and Terms of payment

6.CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Gov. Code section 54956.8)
Property: Knox Avenue. APN#'s 0228-051-14 and 0228-051-15 City Negotiator: Ray Ebert, Deputy City Manager
Negotiating Party: Diversified Pacific Communities
Under Negotiation: Price and Terms of payment

7. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Gov. Code section 54956.8)
Property: 11109 Jasmine Street,. APN # 0238-111-53
City Negotiator: Phillip Burum, Deputy City Manager
Negotiating Party: Ron Washle
Under Negotiation: Price and Terms of payment

CALL TO ORDER/ROLL CALL:

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

The Regular Meeting of the Fontana City Council was held in the Grover W. Taylor Council Chambers, 8353 Sierra Avenue, Fontana, CA 92335, on Tuesday, December 10, 2024.

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

ROLL CALL:

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

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

ABSENT: None

INVOCATION/PLEDGE OF ALLEGIANCE:

A. Invocation/Pledge of Allegiance:

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

16

CLOSED SESSION ANNOUNCEMENT:

City Attorney Steven Deitsch reported that the City Council met in Closed Session on the items listed on the agenda. The settlement agreement for Item 1 was approved and there was no reportable action for Items 2 - 7.

ELECTION RESULTS:

A. Adopt Resolution Certifying the Results of the General Municipal 21-3447 Election Held on Tuesday, November 5, 2024
Adopt Resolution No. 2024-126 of the City Council of the City of Fontana, California, reciting the fact of the General Municipal Election consolidated with the Statewide General Election held on November 5, 2024, declaring the results and such other matters as provided by law, and adopting Ordinance No. 1962 as it pertains to Measure T.

Deputy City Clerk Christina Rudsell provided the staff report.

ACTION: Motion was made by Council Member Cothran, seconded by Council Member Roberts, and passed unanimously by a vote of 5 -0 to adopt Resolution No. 2024 -126.

The motion carried by the following vote: AYES: Warren , Garcia, Cothran, Roberts, and Sandoval; NOES: None; ABSTAIN: None; ABSENT: None

B. Administration of Oaths of Office to Mayor Pro Tem Peter A. Garcia and Council Member Jesus "Jesse" Sandoval

Re-elected Council Members Garcia and Sandoval swore in for another four-year term.

RECESS (10-15 MIN):

Mayor Warren called for a recess at 2:15 p.m.

The meeting resumed at 2:27 p.m. with all members present.

SPECIAL PRESENTATIONS:

A. Special Presentations

1. Mayor Warren and the City Council recognized Sergeant s Marc Gonzales and Brian McLane, Corporal Valerie Gutierrez, Officers James Escarpe, Corey Garcia, Brandon Nicely, Victor Reyes, Justin Summers and Chris Wessman, Reserve Officers Spencer Brumbaugh and Ryan Starling and Crime Analyst II Carynn Monto as the Police Department’s October 2024 Employees of the Month.

2. Mayor Warren and the City Council presented a proclamation recognizing retiring Customer 17

Service Supervisor, Harriet Myers.

PUBLIC COMMUNICATIONS:

A. Public Communications

Frank Atry discussed concerns with the Police Department.

Angel Gomez discussed concerns with the number of warehouses and housing being developed in south Fontana. They suggested lower-income housing and a library in the area.

Ben congratulated Ma yor Pro Tem Garcia and Council Member Sandoval on their re- election and emphasized the significant responsibilities that come with being an elected official. He also extended an invitation to the Council to visit Calvary Chapel Fontana or any local church.

Bishop James with Ephesians Church announced the artists for the upcoming Martin Luther King Jr. Day celebration on January 17, 2025, at Steelworkers Auditorium.

CONSENT CALENDAR:

Prior to the motion, City Attorney Stephen Deitsch clarified that the resolution included with Item S was included in error and that the item could be approved without it.

Council Member Sandoval had comments and questions on the below items:
• Item B: Council Member Sandoval inquired whether Southern California Gas would be maintaining the facility. Deputy City Manager Phillip Burum confirmed that Southern California Gas would be responsible for maintaining the facility. • Item H: Council Member Sandoval asked about the type of housing planned for the property. Deputy City Manager Burum clarified that the development would include transitional or extremely low-income housing.
• Item O: Council Member Sandoval questioned whether senior -friendly food and beverage options would be available. Community Services Manager Michael Wright responded that primarily pastries, coffee, tea, and other senior -friendly food and drinks would be offered.
• Item P: Council Member Sandoval recommended promoting Fontana 3- 1-1 in the recreation magazine and any other informational materials distributed by the city.

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

18

A. Approval of Minutes 21-3449
Approve the minutes of the November 12, 2024, Regular City Council Meeting and the November 19, 2024, Special City Council Meeting.

B. An Agreement Regarding Installation of a Valve Automation 21-3234 Facility within Veterans Memorial Park by Southern California Gas Company.

Approve and Authorize the City Manager to Enter into an Agreement Installation of a Valve Automation Facility within Veterans Memorial Park by Southern California Gas Company; and Authorize the City Manager to execute any and all documents related to this Agreement.

C. 2025 City Hall Holiday and City Council Meeting Calendar 21-3367 Approve the attached proposed Calendar of City Holidays and City Council Meetings for the year 2025.

D. Adopt the Updated Salary Table for the Non-Classified, 21-3394 Part-time Classifications and City Hall Bargaining Unit Due to Minimum Wage Increases.

Adopt Resolution No. 2024-127 a resolution of the City Council of the City of Fontana adopting the non-classified, part-time and City Hall Bargaining Unit salary tables to comply with minimum wage increases, effective January 1, 2025.

E. Approve the Purchase of Glazing Improvements for Police 21-3416 Vehicles

1. Authorize to procure glazing improvements for police vehicles utilizing the Purchasing Policy and Procedure Manual 3.1.5 Non-Competitive Proposal - by Another Public Agency using the North Carolina Sheriff’s Association Contract 25-05-0829.

2. Approve the purchase in the amount of $266,153.45 from Dana Safety Supply, Inc. of Greensboro, NC for the safety equipment for the police vehicles.

F. Award a Construction Contract for the Pacific Electric Trail 21-3422 Canopy (Outdoor Fitness Zone Equipment) PW-24-251-CC
Award bid and authorize the City Manager to execute a construction contract with A&R Tarpaulins, Inc. for the construction of the Pacific Electric Trail - Canopy (Outdoor Exercise Equipment) in the amount of $162,194.11 and authorize a 10% contingency in the amount of $16,219.41 (Bid No.

PW-24-251-CC).

G. Police Department Monthly Information Update 21-3441 Accept the Police Department monthly information update for September 2024.
19

H. Exclusive Negotiation Agreement (ENA) for property located at 21-3444 8425 Cypress Avenue.

Approve an Exclusive Negotiation Agreement (ENA) between the City of Fontana, the Fontana Housing Authority and Slovene Partners LLC, a California limited liability company to facilitate future development of an affordable permanent housing project and authorize the Executive Director to execute the ENA; and any other related documents.

I. A Resolution of the City Council of the City of Fontana 21-3451 Approving A Development Impact Fee Deferral Agreement
Between the City of Fontana and Aldea Fontana Foothill LLC for the Aldea Legacy Apartments Multi-Family Residential Housing Project and Authorize the City Manager to Execute the Agreement and take certain actions to complete the transaction.

Adopt Resolution No. 2024-128, Approving a Development Impact Fee Deferral Agreement Between the City of Fontana and Aldea Fontana Foothill LLC for the Aldea Legacy Apartments Multi-Family Residential Housing Project and Authorize the City Manager to Execute the Agreement and take certain actions to complete the transaction.

J. A Resolution of the City Council of the City of Fontana 21-3452 Approving A Development Impact Fee Deferral Agreement
Between the City of Fontana and Casa Del Sol Investments, LLC for a Multi-Family Residential Housing Apartment Complex Project and Authorize the City Manager to Execute the
Agreement and take certain actions to complete the
transaction...End
Adopt Resolution No. 2024-129, Approving a Development Impact Fee Deferral Agreement Between the City of Fontana and Casa Del Sol Investments, LLC for a Multi-Family Residential Housing Apartment Complex Project and Authorize the City Manager to Execute the Agreement and take certain actions to complete the transaction.

K. Co-Sponsorship Application Cycle Two (2) FY 2024/2025 21-3454 Review and approve the seven (7) Co-Sponsorship Applications recommended by the Parks, Community, and Human Services Commission for the 2024/2025 fiscal year (January 2025 through June 2025). These applications include City support and in-kind services in the amount of $26,050.00.

L. Accept Donation from Bel-Air Swap-Meet, Inc. (2024 Festival of 21-3460 Winter)
Accept donation from Bel-Air Swap-Meet, Inc. in the amount of $5,000 for use towards the 2024 Festival of Winter.

20

M. Accept Donation from Burrtec Waste Industries, Inc. (2024 21-3472 Festival of Winter)
Accept donation from Bel-Air Swap-Meet, Inc. in the amount of $2,500 for use towards the 2024 Festival of Winter.

N. Option and Purchase and Sale Agreement for City owned 21-3462 property-14355 Foothill Blvd.

1. Approve the Option and Purchase and Sale Agreement in the amount of $265,000 with Ava Property Investments, LLC for city owned land located at 14355 Foothill Blvd, more specifically described as APN # 0230-051-

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

O. Fontana Community Senior Center Coffee/Juice Bar Lease 21-3464 Agreement

1. Authorize the City Manager to enter into a lease agreement with Paperboy Roasting Company to offer food and beverage preparation and retail services at the Fontana Community Senior Center; and

2. Authorize the City Manager to enter into any documents necessary to effectuate said agreement.

P. Fontana 311 Support Services 21-3474

1. Award bid (IT-25-52-SP) and authorize the City Manager to execute a contract with StackNexus, Inc. for $346,000.

2. Authorize the City Manager to execute any future amendments to the StackNexus agreement.

Q. Adopt Resolutions for the Administration and Examination of 21-3477 Records of the Local Transactions and Use Tax (Measure T)

1. Adopt Resolution No. 2024-131, authorizing the City Manager to execute agreements with the California Department of Tax and Fee Administration to implement a local transactions and use tax.

2. Adopt Resolution No. 2024-132, rescinding Resolution No. 2024-102 and authorizing examination of sales or transactions and use tax by city officials and an independent contractor.

R. Automatic License Plate Recognition (ALPR) from Flock Group 21-3479 Inc. for equipment and 60-month contract

1. Authorize to procure Automatic License Plate Recognition (ALPR) utilizing the Purchasing Policy and Procedure Manual 3.1.5 Non-Competitive Proposal - Single Source/Sole Source method.
21

2. Approve the purchase of the Flock Group Inc. (Flock Safety) ALPR equipment and software in the amount of $642,750.00.

3. Approve and authorize the City Manager or his assigned designee to approve the purchase and agreement for the Flock Group Inc. (Flock Safety).

S. Purchase of First Responder Drones (DFR) for Public Safety 21-3480

1. Authorize to procure First Responder Paladin Drones utilizing the Purchasing Policy and Procedure and Procedure Manual 3.1.5 Non-Competitive Proposal - Single Source/Sole Source.

2. Authorize the City Manager or his assigned designee to sign the agreement between the Paladin Drones Inc. and the Fontana Police Department for the total amount of $354,600.00.

3. Authorize the Chief of Police or his assigned designee to continue to renew the annual maintenance agreements as long as it remains in the best interest of the City of Fontana.

T. Annual Report on Development Impact Fees 21-3485
Adopt Resolution No. 2024-133, of the City Council of the City of Fontana, approving the Annual Report on Development Impact Fees and making findings as to unexpended funds.

U. Acceptance of Energy Efficiency and Conservation Block Grant 21-3486 (EECBG) Funds

1. Adopt Resolution No. 2024-134, Accepting $230,640 of Energy Efficiency and Conservation Block Grant (EECBG) funds awarded to the City of Fontana by the U.S. Department of Energy.

2. Authorize the appropriation of the awarded funds to implement eligible energy efficiency and conservation projects.

3. Authorize the City Manager, or designee, to execute all necessary agreements, amendments, and documentation required to administer the grant.

V. 2024 City of Fontana Tree Policy Update 21-3359
Approve and adopt Resolution No. 2024-135, updating the City’s Tree Policy Manual

W. Implementation of Classification and Compensation Study and 21-3453 Approval of Tentative Agreements for the Teamsters Local 1932, Public Works and City Hall Bargaining Units.
22

Adopt Resolution No. 2024-130, a resolution of the City Council of the City of Fontana, California, ratifying the Tentative Agreement between the Teamsters Local 1932, Public Works and City Hall Bargaining Units and approving the updated corresponding salary tables.

X. Implementation of Classification and Compensation Study and 21-3494 Approval of Updated Terms of Employment for Employees of the Management/Confidential Group.

Authorize the City Manager to award future one-time payments of up to $2,000 per employee for Management/Confidential and Executive employees.

PUBLIC HEARINGS:

A. Introduce an Ordinance of the City Council of the City of 21-3443 Fontana, California, Pursuant to an Exemption from the
California Environmental Quality Act, Approving a Development Agreement with Catalyst- Fontana, LLC, concerning a retail cannabis business and direct staff to file a Notice of Exemption.

Based on the information in the staff report and subject to the findings, conclusions, and resolution presented in the public hearing, staff recommends that the City Council read by title and waive further reading and introduce Ordinance No. 1960; and

1. Find, after review of the Development Agreement, that the project is EXEMPT from the California Environmental Quality Act (“CEQA”), pursuant to State CEQA Guidelines Section 15301 (Existing Facilities) and direct staff to file a Notice of Exemption; and

2. Read by title only and waive further reading of and introduce Ordinance No. 1960, an Ordinance of the City Council of the City of Fontana, California, Pursuant to an Exemption from the California Environmental Quality Act, Approving a Development Agreement with Catalyst - Fontana, LLC, concerning a retail cannabis business and Direct Staff to File a Notice of Exemption.

3. Approve an Operating Agreement with Catalyst - Fontana LLC, as required by FMC 33-21.

Deputy City Manager Phillip Burum provided the staff report. Clarified this item is related to approval of a development agreement and not cannabis sales in the city which was approved by ordinance.

Mayor Warren opened the public hearing.

City Clerk Key stated that four written communications were received. 23

Sandoval asked if the agreement was site specific.

Deputy City Manager Burum explained that only the development agreement was being considered and a site-specific agreement would be considered at another time.

The following individuals spoke in favor:

1. Mikhail Kekade of Catalyst Fontana, LLC

2. Juan Soto

3. Violeta Aguilar-Wyrick

4. Olivia Gutierrez

5. Aaron Dill of Big Brothers Big Sisters of the Inland Empire

6. Damian Martin of Catalyst Fontana, LLC

The following individuals spoke in opposition:

1. Juan Mejia

2. Sebastian Castaneda

3. Jose Caballero

Mayor Warren closed the public hearing.

Mayor Pro Tem Garcia asked what controls and security measures currently in place for the two existing cannabis businesses in the city would apply to Catalyst Fontana, LLC.

Deputy City Manager Burum confirmed that Catalyst Fontana, LLC would be subject to the same stringent controls and security measures as the existing cannabis businesses.

Discussion followed on topics including the heavily regulated security measures, voter support for retail cannabis, taxation of retail cannabis in Fontana, and the approval process for the building design.

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

B. Master Case No. 24-067 and Municipal Code Amendment No. 21-3450 24-005: Fontana Municipal Code amendments to Chapter 30 (Zoning and Development Code) including modifications to density bonuses, entitlement extension approvals and minor administrative cleanup items, restrictions on single-serving alcohol sales, premise-to-premise transfer of conditional use permits for alcohol sales, food truck standards, minor planned unit development standards, temporary use permits, in-home childcare facilities, permitted land uses in the Downtown Core, and Form-Based Code zoning district development standards, 24

pursuant to a categorical exemption in accordance with CEQA Guidelines section 15060(c) and 15061(B)(3).

1. Determine that this Ordinance is categorically exempted pursuant to the California Environmental Quality Act (CEQA) Guidelines Sections 15060(c), 15061(B)(3) (the common-sense exemption), and 15378 and Sections No. 3.01, 3.22, and 10.59 of the 2019 Local Guidelines for Implementing CEQA, in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment where it can be with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA; and,

2. Read by title only and waive further reading of and introduce Ordinance No. 1961, an Ordinance of the City Council of the City of Fontana approving Master Case No. 24-067 and Municipal Code Amendment No. 24-005 to amend multiple sections of Chapter 30 of the Fontana Zoning and Development Code, including amendments to density bonuses, entitlement extension approvals and minor administrative cleanup items, restrictions on single-serving alcohol sales, premise-to-premise transfer of conditional use permits for alcohol sales, food truck standards, minor planned unit development standards, temporary use permits, in-home childcare facilities, permitted land uses in the Downtown Core, and Form -Based Code zoning district development standards; and the reading of the title constitutes the first thereof.

Mayor Warren opened the public hearing.

City Clerk Key stated there were no written communications were received.

Associate Planner Cecily Session-Goins provided the staff report.

Council Member Sandoval requested clarification on the zoning regulations for food trucks.

Associate Planner Session- Goins explained that food trucks are currently permitted only in areas zoned as Industrial.

Council Member Sandoval further inquired about the possibility of an ordinance allowing food trucks to operate in non-industrial areas after most restaurants close at 9 p.m.

Associate Planner Session- Goins stated that such an ordinance could be evaluated and considered at the Council's discretion.

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

ACTION: Motion was made by Council Member Cothran, seconded by Council Member Roberts, and passed unanimously by a vote of 5 -0 to approve staff recommendation on Public Hearing Item “B.” The motion carried by the following vote: AYES: Warren , Garcia, Cothran, Roberts, and Sandoval; NOES: None; ABSTAIN: None; ABSENT: None 25

C. Master Case No. 24-069: Specific Plan Amendment No. 21-3469 24-002, a request to modify Chapter 5.6 (Nonconforming
Structures, Uses, and Lots) of the Southwest Industrial Park Specific Plan to allow legal nonconforming “Pallet Yards” to expand operations within existing sites in the Southwest Industrial Park Specific Plan, pursuant to a categorical exemption in accordance with CEQA Guidelines sections 15162 through 15164, and Section 15183.

1. Determine that this Ordinance is categorically exempt pursuant to Sections 15162 through15164, and Section 15183 of the California Environmental Quality Act (CEQA) and Section 8.10 of the City of Fontana’s 2019 Local Guidelines for Implementing CEQA, it has been determined that the previously certified Southwest Industrial Park Specific Plan Program Environmental Impact Report (SWIP PEIR) (State Clearinghouse [SCH] No. 2009091089) has adequately identified the impacts associated with the Specific Plan Amendment (“proposed project”) and direct staff to File a Notice of Exemption;

2. Read by title only and waive further reading of and introduce Ordinance No. 1963, an Ordinance of the City Council of the City of Fontana, approving a Specific Plan Amendment (SPA) No. 24-002 to amend the Southwest Industrial Park (SWIP) Specific Plan, Chapter 5.6 (Nonconforming Structures, Uses, and Lots) to allow expansions to legally established pallet yards within an existing site, and that the reading of the title constitutes the first reading thereof.

Mayor Warren opened the public hearing.

Associate Planner Alejandro Rico provided the staff report.

City Clerk Key stated that no written communications had been received.

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

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

Mayor Warren left the meeting at 4:20 p.m.

D. Quarterly Lien Action for Delinquent Sewer, Rubbish and Weed 21-3293 Abatement AccountsE

1. Authorize staff to complete and record lien notices against real property for those sewer accounts sixty days or more delinquent as described in Certified Lien List and direct staff to forward recorded liens to the County 26

for collection.

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

3. Adopt Resolution No. 2024-136, of the City Council of the City of Fontana adopting the statement of unpaid expenses for weed abatement and imposing a lien against real property for payment thereof.

Mayor Pro Tem Garcia opened the public hearing.

Revenue Operations Manager Lisa Conlon provided the staff report.

City Clerk Key stated no written communications were received.

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

ACTION: Motion was made by Council Member Roberts, seconded by Mayor Pro Tem Garcia, and passed unanimously by a vote of 3 -0 to approve staff recommendation on Public Hearing Item “D.” The motion carried by the following vote: AYES: Garcia, Roberts, and Sandoval; NOES: None; ABSTAIN: Cothran; ABSENT: Warren

E. Continuation of the Public Hearing, Election, and Resolutions 21-3478 on Formation of Community Facilities District No. 115M (Parcel Map No. 19156)...End

Mayor Pro Tem Garcia asked for any members of the public who wish to file a written protest prior to continuing the public hearing for the Formation of Comm unity Facilities District No. 115M.

There was no one who wished to file a protest.

Mayor Pro Tem Garcia closed the public hearing.

City Clerk Key announced that there were no written correspondences received for this item.

Accountant II Justin Marietta provided the staff report.

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

ACTION: Motion was made by Council Member Sandov al, seconded by Council Member Roberts move the following by a vote of 3-0 as follows:
27

1. Adopt Resolution No. 2024-137, Establishing the City of Fontana Community Facilities District No. 115M and the Boundaries thereof (the “Resolution of Formation”).

2. Adopt Resolution No. 2024-138, Calling a Special Election and Submitting to the Voters of Community Facilities District No. 115M a Proposition Regarding the Annual Levy of Special Taxes within Community Facilities District No. 115M to Pay the Costs of Certain Services to be Provided by Community Facilities District No. 115M and a Proposition Establishing an Appropriations Limit for Community Facilities District No. 115M (the “Resolution Calling the Election”).

The motion carried by the following vote: AYES: Garcia, Roberts, and Sandoval; NOES:

None; ABSTAIN: Cothran; ABSENT: Warren

Following the motion, Mayor Pro Tem Garcia asked City Clerk Key to open the ballots and announce the results of the election.

City Clerk Key announced that the City received one ballot in favor.

ACTION: Motion was made by Council Member Roberts , seconded by Council Member Sandoval move the following by a vote of 3-0 as follows:

4. Adopt Resolution No. 2024-139, Declaring the Results of the Special Election for Community Facilities District No. 115M on the Propositions with Respect to (i) the Annual Levy of Special Taxes to Pay the Costs of Certain Services to be provided by Community Facilities District No. 115M and (ii) the Establishment of an Appropriations Limit (the “Resolution Declaring Election Results”).

5. Conduct First Reading (Read title only, and waive further reading) of Ordinance No. 1964, Authorizing the Levy of a Special Tax within Community Facilities District No. 115M (the “Ordinance”).

The motion carried by the following vote: AYES: Garcia, Roberts, and Sandoval; NOES:

None; ABSTAIN: Cothran; ABSENT: Warren

CITY MANAGER COMMUNICATIONS:

A. City Manager Communications

City Manager Matt Ballantyne congratulated Community Services Supervisor Harriet Myers on her retirement. He also discussed the upcoming Christmas Parade, Winter Festival, and the scheduled holiday closure of City Hall. Additionally, he expressed gratitude to staff for their hard work in achieving city goals and thanked the Council for their leadership.

28

ELECTED OFFICIALS COMMUNICATIONS/REPORTS:

A. Elected Officials Communications/Reports

City Clerk Key wished City Manager Ballantyne a happy birthday, congratulated Mayor Pro Tem Garcia and Council Member Sandoval on their reelection, and recognized Customer Service Supervisor Harriet Myers on her retirement as well as the October Police Department Employees of the Month. She also extended holiday wishes to all.

City Treasurer Koehler -Brooks wished Ci ty Manager Ballantyne a happy birthday, congratulated Mayor Pro Tem Garcia and Council Member Sandoval on their reelection, recognized Customer Service Supervisor Harriet Myers on her retirement, and acknowledged the October Police Department Employees of the Month. She also wished everyone a happy holiday.

Council Member Sandoval expressed gratitude to God and his family for their support during his reelection. He wished City Manager Ballantyne a happy birthday and extended holiday wishes to all. He informed Captain Brian Binks that he would not be at the Christmas Parade to greet his father as he does annually, as his own father, Jose Sandoval, recently passed away.

He requested that the meeting be adjourned in memory of his father.

Council Member Roberts congratulated Mayor Pro Tem Garcia and Council Member Sandoval on their reelection, wished City Manager Ballantyne a happy birthday, thanked the Police Department for their service, and extended holiday wishes to all.

Council Member Cothran congratulated Mayor Pro Tem Garcia and Council Member Sandoval on their reelection, wished City Manager Ballantyne a happy birthday, and extended holiday wishes to everyone.

Mayor Pro Tem Garcia thanked the community for his reelection and expressed appreciation to the Mayor and Council for their collaborative relationship. He wished City Manager Ballantyne a happy birthday and thanked City Attorney Deitsch for attending the meeting.

ADJOURNMENT:

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

1. Pastor Donald Richard Gridiron, Sr.

2. Daniel Sitter

3. Beverly A. Powell

4. Jose Sandoval

Mayor Pro Tem Garcia adjourned the meeting at 4:37 p.m. to the next Regular City Council Meeting on Tuesday, January 28, 202 5, at 2:00 p.m. in the Grover W. Taylor Council Chambers located at 8353 Sierra Avenue, Fontana, California. 29

_____________________
Christina Rudsell, CMC
Deputy City Clerk

THE FOREGOING MINUTES WERE ADOPTED AND APPROVED BY THE FONTANA CITY COUNCIL ON JANUARY 28, 2025.

_______________________
Germaine Key
City Clerk

30 City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0003 Agenda Date: 1/28/2025
Agenda #: B. Category: Consent Calendar
FROM:

Planning
SUBJECT:

Adoption of Ordinance No. 1960 (Second Reading), Approving a Development Agreement with Catalyst- Fontana, LLC, concerning a retail cannabis business and direct staff to file a Notice of Exemption.

RECOMMENDATION:

Second Reading/Adopt Ordinance No. 1960, Approving a Development Agreement with Catalyst- Fontana, LLC, concerning a retail cannabis business and direct staff to file a Notice of Exemption.

COUCIL GOALS:
· To promote economic development by concentrating on job creation. · To promote economic development by pursuing business retention, expansion, and attraction. · To promote economic development by striving to constantly improve the city's competitiveness.

DISCUSSION:

Ordinance No. 1960 was introduced by a vote of 5-0 at the December 10, 2024, Regular City Council Meeting.

FISCAL IMPACT:

New revenue, in the form of special fees paid to the City, resulting from execution of this Development Agreement is currently projected to exceed $500,000 annually.

MOTION:

Approve staff recommendation.

City of Fontana Printed on 1/22/2025Page 1 of 1
powered by Legistar™
31 ORDINANCE NO. 1960

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FONTANA,

CALIFORNIA, PURSUANT TO AN EXEMPTION FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT, APPROVING A

DEVELOPMENT AGREEMENT WITH CATALYST - FONTANA, LLC,

FOR A RETAIL CANNABIS BUSINESS, AND DIRECT ING STAFF TO FILE A NOTICE OF EXEMPTION.

WHEREAS, California Government Code Sections 65864 et seq. (“Development Agreement Statutes”) and Section 30-322 of the City’s Development Code authorizes the City Council of the City of Fontana (“City Council”) to enter into a development agreement with those having a legal or equitable interest in real property in order to establish certain development rights in such property; and to strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic risk of development in connection with the development of real property within its jurisdiction; and

WHEREAS, the City of Fonta na Planning Commission (“Planning Commission”) has found that development agreements will strengthen the public planning process, encourage private participation in comprehensive planning by providing a greater degree of certainty in that process, reduce the economic costs of development, allow for the orderly planning of public improvements and services, allocate costs to achieve maximum utilization of public and private resources in the development process, and ensure that appropriate measures to enhance and protect the environment are achieved; and

WHEREAS, pursuant to Section 30 -322 of the City’s Development Code and Section 4 of City Council Resolution No. 85-217, the Planning Commission shall conduct a public hearing concerning any proposed developm ent agreement in accordance with Government Code Section 65867 and shall, by resolution, render a recommendation to the City Council concerning the proposed development agreement, including the reasons for the recommendation and the relationship of the proposed development agreement to applicable general and specific plans and zoning requirements; and

WHEREAS, o n July 26, 2022, in accordance with state law, the City Council adopted Ordinance No. 1899 adding Chapter 33 to the Fontana Municipal Code (“FMC”) to regulate commercial cannabis businesses within the City of Fontana (“ City”) by establishing a regulatory permit scheme for commercial cannabis activities, such that each proposed commercial activity must have a regulatory permit and enter into a development agreement and operating agreement with the City Council; and

WHEREAS, on October 25, 2022, the City Council adopted Ordinance No. 1906 amending FMC Chapter 30 and Chapter 33 to rename “commercial cannabis” to “cannabis retailer -storefront” and reference special regulations for same and to make minor modifications to FMC Ch apter 33 related to phasing, authorization letters, and

32 Ordinance No. 1960

locations for permit applications along with limiting the number of permits to be issued and

WHEREAS, Section 33-7 of the FMC limits the maximum number of commercial cannabis businesses authorized and designated locations to three, one in the north area, one in the central area and one in the south area of the City; and

WHEREAS, the City of Fontana received an application from Catalyst-Fontana, LLC, (the “Applicant”) on May 4, 2023 for a Retail Commercial Cannabis Business Activity Permit for a location within the north area of the City; and

WHEREAS, pursuant to Section 33 -32 of the FMC, on October 17, 2024, the Applicant was notified that the City (a) will move forward with issuing a notice of selection to Applicant and (b) will approve 15911 Highland Avenue (APN: 0228 -301-01) (“Project Site”) as the location for the Project, subject to Applicant providing proof of the right to use and occupy the premises on the Project Site within 90 days of said notice of selection being issued; and

WHEREAS, on October 21, 2024 the City received a request for a development agreement from the Applicant (the “Project”) to establish certain assurances including timing and the provision of public benefits for a commercial cannabis retail sales business at the project site, an approximately 0.24-acre site; and

WHEREAS, on October 29, 2024, the City issued a Cannabis Zoning Verification Letter that provided that the Project Site had a zoning designation of General Commercial (C-2) zone, which allowed for a storefront commercial cannabis to operate in the north area of the city; and

WHEREAS, the Project Site is within the General Plan Land Use Designation of General Commercial (C -G) and zoned C -2 (General Commercial) which allows for a storefront commercial cannabis use; and

WHEREAS, the Project Site is not located within a specific plan; and

WHEREAS, the City wishes to protect and preserve the quality of life throughout the City, through careful consideration of the proposed development agreement and imposition of the requirements of FMC Chapter 33 upon the Applicant; and

WHEREAS, the City and the Applicant agree that, as a condition of allowing the Project, as further defined in the proposed Development Agreement, and due to the unique circumstances of the Project, the Applicant shall be entitled to the assurances and timeframes identified in the Development Agreement and shall in turn provide public benefits, including paying to the City a percentage of gross receipts of the Applicant’s commercial cannabis retail sales by providing benefits to nonprofit organizations within the City and pri ority to and opportunities for local jobs, and work for the residents and contractors of the City; and

33 Ordinance No. 1960

WHEREAS, because of the logistics, magnitude of the expenditure, and considerable lead time required to plan and develop the property, Catalyst-Fontana, LLC has proposed to enter into a development agreement concerning the property (“Development Agreement”), to provide assurances that the property can be developed without disruption caused by a change in the City’s planning polic ies and requirements except as provided in the Development Agreement, which assurances will thereby reduce the actual or perceived risk of planning for and proceeding with development of the property; and

WHEREAS, Applicant's interest in the Project Site, including that interest reflected in the Development Agreement, constitutes a legal or equitable interest in real property pursuant to California Government Code section 65865; and

WHEREAS, the Applicant proposes to operate a commercial cannabis retail business on an approximately 0.24 acre lot; and

WHEREAS, the terms and conditions of the Development Agreement have undergone review by the Planning Commission at a publicly noticed hearing held on November 19, 2024 and recommended that the City Council enter into the Development Agreement;

WHEREAS, the terms and conditions of the Development Agreement have undergone review by the Planning Commission at a publicly noticed hearing on November 19, 2024 and have been found to be fair, just and reasonable, and that (i) the economic interests of the City's citizens and the public health, safety and welfare will be best served by entering into the Development Agreement; (ii) the Development Agreement is consistent with the General Plan; (iii) the Development Agreement is in conformity with the public convenience, general welfare and good land use practice; (iv) the Development Agreement will not be detrimental to the public health, safety and general welfare; and (v) the Development Agreement will not adversely affect the orderly development or the preservation of property values for the property or any other property; and

WHEREAS, pursuant to the California Environmental Quality Act (“CEQA”) (Public Resources Code §21000 et seq.) and the State CEQA Guidelines (Cal. Code Regs.,tit. 14, §15000 et seq.), the Development Agreement, has been reviewed and found to be exempt from CEQA pursuant to State CEQA Guidelines 15301, Existing Facilities and Section No. 3.22 of the 2019 Local Guidelines for Implementing CEQA and a Notice of Exemption will be filed upon adoption of this Ordinance; and

WHEREAS, notice of the public hearing was duly published and posted in accordance with all legal requirements; and

WHEREAS, all other legal prerequisites to the adoption of this Ordinance have occurred.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fontana, California, as follows:
34 Ordinance No. 1960

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

Section 2. CEQA. The Development Agreement has been reviewed and found to be exempt from California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines Section 15301, Existing Facilities, as the cannabis retail use will be located in an existing commercial facility with no proposed expansion to the building and only making minor interior improvements.

Section 3. Public Health, Safety and Welfare. Based on the entire record before the City Council and all written and oral evidence presented to the City Council, the City Council finds this Ordinance promotes the public health, safety and welfare of the community because the Development Agreement will enable needed improvements at the Property and the econo mic development within the Property, its surrounding communities and the citizens of the City.

Section 4. Approval. Pursuant to California Government Code sections 65865 et seq., the City Council hereby approves the development agreement on file with the City Clerk and incorporated by reference herein, entitled "Development Agreement No. 24-006 among the City of Fontana and Catalyst - Fontana, LLC.".

Section 5. Certification. Pursuant to Government Code section 65868.5, within 10 days following the entering into of the Development Agreement, as evidenced by the full execution thereof, the City Clerk shall cause to be recorded with the San Bernardino County Recorder a copy of the executed Development Agreement.

Section 6. Effective Date. This Ordinance shall take effect thirty (30) days after the date of its adoption, and prior to the expiration of the fifteen (15) days from the passage thereof, the Ordinance or a summary of the Ordinance shall be published at least once in the Herald News, a newspaper of general circulation in the City of Fontana.

Thereafter this Ordinance shall be in full force and effect.

APPROVED AND ADOPTED this 28th day of January, 2025.

READ AND APPROVED AS TO LEGAL FORM:

________________________________
City Attorney

I, Germaine Key, City Clerk of the City of Fontana, and Ex-Officio Clerk of the City Council, do hereby certify that the foregoing Ordinance is the actual Ordinance introduced at a regular meeting of said City Council on the 10 th day of December, 2024, and was 35 Ordinance No. 1960

finally passed and adopted not less than five days thereafter on the 28th day of January, 2025 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

36 EXHIBIT A

DEVELOPMENT AGREEMENT

WITH CATALYST - FONTANA LLC DBA CATALYST FONTANA

DEVELOPMENT AGREEMENT

WITH CATALYST - FONTANA LLC DBA CATALYST FONTANA

RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:

City of Fontana
8353 Sierra Ave.

Fontana, CA 92335
Attention: City Clerk

SPACE ABOVE THIS LINE FOR RECORDER’S USE
Recording Fee Exempt per Government Code § 6103

DEVELOPMENT AGREEMENT
THIS DEVELOPMENT AGREEMENT (this “Agreement”) is made and entered into this 27th day of February, 2025 (the “Execution Date”), by and between the CITY OF FONTANA, a California municipal corporation (“City”) and Catalyst - Fontana LLC , a California limited liability company, dba Catalyst - Fontana, with its principal address located at 401 Pine Avenue, Long Beach, CA 90802 (“Permittee”). City and Permittee are sometimes referenced together herein as the “Parties.” In instances when a provision hereof applies to each of the Parties individually, either may be referenced as a “Party.” The Parties hereby jointly render the following statement as to the background facts and circumstances underlying this Agreement.

RECITALS
A. The State of California enacted California Government Code sect ions 65864 et seq. (“Development Agreement Statutes”) to authorize municipalities to enter into development agreements with those having a legal or equitable interest in real property to strengthen the public planning process, encourage private participati on in comprehensive planning, and reduce the economic risk of development in connection with the development of real property within their jurisdiction.

B. The purpose of the Development Agreement Statutes is to authorize municipalities, in their discretion, to establish certain development rights in real property for a period of years regardless of intervening changes in land use regulations, to vest certain rights, and to meet certain public purposes of the local government.
37 C. As authorized by the Development Agreement Statutes, the City has adopted Municipal Code Section 30-322 establishing the procedures and requirements for the consideration of development agreements with the City.

D. Permittee currently owns legal or equitable interest or leasehold in real property considered in this Agreement, located at 15911 S Highland Avenue, City of Fontana, County of San Bernardino, State of California (the “Site”). The Site includes Assessor’s Parcel Number:
0228-301-01-0000 as is more fully described in Exhibit A and sh own in its current condition on the map in Exhibit B, both exhibits being attached hereto and incorporated herein by this reference.

E. On September 13, 2016, the City Council adopted Ordinance No. 1747 prohibiting all marijuana uses in the City to the extent allowed under California and included a provision requiring a Residential Indoor Marijuana Cultivation (“RIMC”) permit for any individual who desires to grow up to six (6) marijuana plants in their private residence.

F. On November 8, 2016, California voters approved Proposition 64, titled the “Adult Use of Marijuana Act” (the “AUMA”) and enacted a state statutory scheme legalizing, controlling, and regulating the cultivation, processing, manufacturing, distribution, testing, and sale of nonmedical (“adult-use” or “recreational”) cannabis, including cannabis products, for use by adults twenty-one (21) years of age and older.

G. On June 27, 2017, Governor Brown signed Senate Bill 94, the “Medicinal and Adult- Use Cannabis Regulation and Safety Act” (“SB 94” or the “MAUCRSA”). SB 94 creates one state regulatory structure for medical and adult-use cannabis use and commercial cannabis activities, reconciling AUMA, with Proposition 215 and MAUCRSA. SB 94 continues to provide that a state license will not be approved fo r a business to engage in Commercial Cannabis Activity if the business activity violates any local ordinance or regulation.

H. The City Council adopted Ordinance No. 1899, on July 12, 2022, as amended on October 25, 2022, establishing a regulatory permit scheme for commercial cannabis activities, such that each proposed commercial activity must have an agreement and a regulatory permit prior to operation.

I. Presently, Permittee intends to develop and utilize the Site for the sale of cannabis.

Permittee is an authorized limited liability company as allowed by law duly formed under California law for the purpose of commercial cannabis sales (“Commercial Cannabis Activity”). Such Commercial Cannabis Activity facilities shall operate in accordance with the California State Compassionate Use Act (Health & Saf.Code, § 11362.5) (“CUA”), the Medical Marijuana Program Act (Health & Saf. Code, §§ 11362.7 et seq.) (“MMP”), the Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (“AUMA”), and the Medicinal and Adult Use Regulation and Safety Act (“MAUCRSA”), Fontana Municipal Code Ordinance Chapter 33 and regulations promulgated thereunder, and any additional California state law related to Commercial Cannabis Activity (collectively “State Cannabis Law”). Prior to operating a Commercial Cannabis Activity facility, Permittee shall be required to obtain a Commercial Cannabis Activity regulatory permit from City pursuant to City ordinance.
38 J. Permittee shall obtain all required state licenses issued under State Cannabis Law.

K. Pursuant to the California Environmental Quality Act (“CEQA”) (Public Resources Code §21000 et seq.) and the State CEQA Guidelines (Cal. Code Regs.,tit. 14, §15000 et seq.), the whole of the Project, including the Development Agreement, has been revie wed and found to be exempt from CEQA pursuant to State CEQA Guidelines Section 15301, Existing Facilities and a Notice of Exemption will be filed upon adoption of the Ordinance approving this Agreement
L. Permittee presently intends to develop and open Commer cial Cannabis Activity facilities (“Commercial Cannabis Activity Facility”) on the Site consistent with State Cannabis Law, all other applicable California law, and Project Approvals (known as the “Project”).

M. The Project will include commercial retail cann abis sales to individuals under State Cannabis Law at the Project Site (“Commercial Cannabis Activity Facility”).

N. In its current condition, the Site consists of a total planning area of approximately 0.22 acres. Th e Project will include improvements to the existing Site designed to integrate seamlessly into the City of Fontana ’s General Plan Goals and Policies for Commercial Districts, including the latest provisions for Commercial Cannabis Activity.

O. City and Permittee have agreed that, as a condition of a llowing the Project, as defined herein, and due to the unique circumstances of the proposed Project, shall pay to the City a retail fee based on the gross receipts of Permittee’s commercial cannabis retail sales, as hereinafter defined.

P. City has given publ ic notice of its intention to adopt this Agreement and has conducted public hearings thereon pursuant to California Government Code section 65867 and Municipal Code Section 30-322. City has found that the provisions of this Agreement and its purposes are c onsistent with the objectives, policies, general land uses and programs specified in City’s General Plan, zoning code and municipal ordinances.

Q. City, in entering into this Agreement, acknowledges that certain City obligations hereby assumed shall survive beyond the terms of the present City Council members, that this Agreement will serve to bind City and future City Councils to the obligations hereby undertaken, and that this Agreement shall limit the future exercise of certain governmental and proprietary powers of City. By approving this Agreement, the City Council has elected to exercise certain governmental powers at the time of entering into this Agreement rather than defer its actions to some undetermined future date. The terms and conditions of this Agreement have undergone extensive review by City staff, the Planning Commission, and the City Council and have been found to be fair, just, and reasonable. City has concluded that the pursuit of the Project will serve the best interests of its citizens and that the public health, safety, and welfare are best served by entering into this Agreement. Permittee has represented to City that it would not consider or engage in the Project absent City approving this Agreement, i.e., assuring Permittee that it will enjoy the development rights given in this Agreement. The City Council specifically finds that this Agreement satisfies each and every one of the required findings in Municipal Code Section 30-322. . 39 R. The City agrees that Permittee’s land use entitlements for the Project shall vest for the term of this Agreement as described below, including, but not limited to, the right to commercial cannabis retail sales and related development in compliance with State Cannabis Law and local ordinances.

S. After conducting a duly noticed hearing on November 19 , 2024, in conjunction with Section 30 -322 of the City’s Municipal Code, the Planning Commission of the City reviewed, considered, and approved Resolution No. PC 2024-056. The Planning Commission found the Project consi stent with the objectives, policies, general land uses and programs specified in the general plan; compatible with the uses authorized in the General Commercial (C-G); is in conformity with the public necessity, public convenience, general welfare and good land use practices; will not be detrimental to the health, safety and general welfare of the city; will not adversely affect the orderly development of property or the preservation of property values; and will have a positive fiscal impact on the City.

T. After conducting a duly noticed hearing on December 10 , 2024, in conjunction with Section 30-322 of the City’s Municipal Code, and after independent review and consideration, the City Council approved the execution of this Agreement. The City Council found t he Project consistent with the objectives, policies, general land uses and programs specified in the general plan; compatible with the uses authorized in the General Commercial zone; is in conformity with good land use practices; will not be detrimental to the health, safety and general welfare of the City; and is in the best interest of the City of Fontana and its residents.

NOW, THEREFORE , in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the Parties do hereby agree as follows:

1. Binding Effect of Agreement. The Parties agree that the Recitals above are true and correct and intend to be bound by same; the Parties further agree to the incorporation by reference herein of said Recitals, together with all definitions provided and exhibits referenced therein. This Agreement pertains to the Site as described in Exhibit A and shown in Exhibit B . Except as otherwise provided in Secti on 15 of this Agreement, the burdens of this Agreement are binding upon the Permittee. In order to provide continued notice thereof, the Parties will record this Agreement with the San Bernardino County Recorder. Should the size or orientation of any Site component specified above be changed in minor respects, e.g., changed by a lot line adjustment, this Agreement shall not thereby be deemed to have been affected or invalidated, but the rights and obligations of the Parties shall remain as provided herein.

2. Relationship of the Parties. It is hereby specifically understood and acknowledged that the Project is a private project and that neither City nor Permittee will be deemed to be the agent of the other for any purpose whatsoever. City and Permittee hereby r enounce the existence of any form of joint venture or partnership between or among them and agree that nothing contained herein or in any document executed in connection herewith shall be construed as making City and Permittee joint venturers or partners.
40 3. Term. Except as otherwise specified herein, the term of this Agreement (the “Term”) shall be for three (3) years from the Execution Date. The Term shall generally be subject to earlier termination or extension as hereinafter provided.

3.1 Term Extension. This Agreement shall be subject to two (2) year extensions at the sole discretion of the City. The City Manager is authorized to enter into the term extensions after conducting a periodic review in accordance with Government Code section 65865.1. If at the sole discretion of the City, the City finds that Permittee demonstrates to have complied in good faith with the terms and conditions of this Agreement, the Parties may enter into a written extension signed by both Parties.

3.2 Request by Permittee of Term Extension. The Term of this Agreement may be extended at the request by Permittee by written notice no later than one hundred twenty (120) calendar days before the expiration of the term and Permittee shall not be in default with respect to any provision of this A greement or any subsequent agreement or understanding between the Parties arising from or related to this Agreement, having received notice from City of said default per this Agreement, or if Permittee did in fact default as to this Agreement, upon notice from City, that Permittee did cure said default during the period to cure provided herein to City’s satisfaction.

3.3 Termination of Agreement. Upon the termination of this Agreement, either by expiration or otherwise, Permittee shall have no right to engage i n Commercial Cannabis Activity at the Project Site, except as may otherwise be allowed by City ordinance or law.

3.4 Permittee’s Termination Rights . The Permittee may terminate this Agreement, at any time and in its sole discretion, effective thirty (30) days after the Permittee provides written notice of termination to the City. Such termination shall not relieve Permittee of any outstanding or previously incurred liability, payment, or obligation to City. All fees due pursuant to the Commercial Cannabis Permi t, this Development Agreement, or any Operating Agreement between the Parties shall immediately be due and payable.

4. Defined Terms . As used in this Agreement, the following terms shall have the meanings hereinafter set forth:

4.1 Certified Report . “ Certified Report” shall mean a detailed document prepared by Permittee on a form acceptable to the City’s Director of Finance to report to City of the sales by Permittee, as defined herein, in the Project during each Operational Quarter, as defined herein. Each Certified Report shall be certified as true and correct by a duly authorized officer of Permittee. City may also require certification by Permittee.

4.2 Certification of Non -Income Tax Exemption . Permittee certifies that Permittee is not income tax exempt under State or Federal Law and that Permittee will not file for such an exemption from the Internal Revenue Service or the Franchise Tax Board. Permittee will also require all Tenant(s) to certify that Tenant(s) are not income tax exempt under State or Federal Law and will not file for such an exemption.

4.3 Gross Receipts. Except as otherwise specifically provided, means the total amount actually received or receivable from all sales and transfers; the total amount of compensation actually received or receivable for the performance of any act or service, of whatever 41 nature it may be, for which a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares or merchandise; and discounts, gifts, rents, royalties, fees, commissions, dividends, and gains realized from trading in stocks or bonds, however designated. Included in “gross receipts” shall be all receipts, cash, credits and property of any kind or nature, without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever, except that the following shall be excluded therefrom:

4.3.1 Cash discounts were allowed and taken on sales;

4.3.2 Credit allowed on property accepted as part of the purchase price and which property may later be sold, at which time the sales price shall be included as gross receipts;

4.3.3 Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;

4.3.4 Such part of the sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allow ances or return of refundable deposits previously included in gross receipts;

4.3.5 Receipts derived from the occasional sale of used, obsolete or surplus trade fixtures, machinery or other equipment used by the taxpayer in the regular course of the taxpayer’s business; and

4.3.6 Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded when in excess of one dollar.

4.3.7 Retail sales of non -cannabis products, such as t -shirts, sweaters, hats, stickers, key chains, bags, books, posters, rolling papers, cannabis accessories such as pipes, pipe screens, vape pen batteries (without cannabis) or other personal tangible property.

4.4 Operational Quarter . “Operational Quarter ” shall mean any calendar quarter, or portion of a calendar quarter, during which any Gross Receipts of the Project is produced, as defined herein. The calendar quarters shall begin and end as follows: January 1 through March 31; April 1 through June 30; July 1 through September 30; and October 1 through December 31.

4.5 Land Use Regulations. “Land Use Regulations” shall mean all ordinances, resolutions, codes, rules, regulations and official policies of the City governing the development and use of land, including, without limitation, the permitted use of land, the density or intensity of use, subdivision requirements, timing and phasing of development, the maximum height and size of buildings, the provisions for reservation or dedication of land for public purposes, and the design, improve ment and construction and initial occupancy standards and specifications applicable to the Project. “Land Use Regulations” do not include any City ordinance, resolution, code, rule, regulation or official policy governing:
42 4.5.1 The conduct or taxation of businesses, professions, and occupations applicable to all businesses, professions, and occupations in the City;

4.5.2 Other than as provided in this Agreement, taxes and assessments of general application upon all residents of the City, provided that the taxes and as sessments are not imposed for the purpose of taxing the right, power or privilege of developing or improving land (e.g., excise tax) or to directly finance the acquisition or dedication of open space or any other public improvement in respect of which the Developer is paying any fee or providing any improvement pursuant to this Agreement;

4.5.3 The control and abatement of nuisances;

4.5.4 The granting of encroachment permits and the conveyance of rights and interests which provides for the use of, access to or the entry upon public property, as may be approved by mutual agreement between Permittee and City; and

4.5.5 The exercise of the power of eminent domain.

4.6 Existing Land Use Regulations. “Existing Land Use Regulations” means all Land Use Regulations in effect as of the approval date of this Agreement, including the Project Approvals.

4.7 Retail Fee. Shall mean five percent (5%) of Gross Receipts due to the City at the end of each Operational Quarter

5. Fee Payments.

5.1 Fee Payments. In consideration of City’s entering into this Agreement and authorizing the development and operation of the Project, the requirements for City services created by the Project, the City ensuring compliance with this Agreement, State Cannabis Laws, and the City ’s municipal ordinances, throughout the Term of this Agreement, the following payments shall be made to City:

5.1.1 Retail Fee shall be paid quarterly. Retail Fees shall be due to the City by the 15 th of each month succeeding Operational Quarter. Failure to pay the Retail Fee within thirty 30 days after the due date shall result in an additional penalty for nonpayment in a sum equal to twenty -five (25%) of the total amount due. The provisions of this subsection shall survive any termination or expiration of this Agreement for any reason.

5.2 Community Benefits . Permittee shall contribute one percent (1%) of its Gross Receipts for the first calendar year in which Permittee is operational, and the greater of one percent (1%) of its Gross Receipts or $250,000 ann ually for every calendar year thereafter (“Community Benefit Contribution” or “CBC”), which funds shall exclusively be directed to the following community benefit partners identified in Permittee’s Retail Commercial Cannabis Business Permit Application, with the (1) allocation of funds between community benefit partners to be determined at the sole discretion of Permittee, (2) the recipients of the funds agreeing to use all funds for programs and/or services in the City of Fontana, and (3) the inclusion of additional community benefit partners shall be subject to an open application process, with approval of 43 additional partners to be approved at the sole discretion of City: Fontana Chamber of Commerce, Fontana Police Officers Association, Fontana K9 Pals, Fo ntana Police Department, CanAm Dental, Chaffey College, Inland Empire Community Foundation, Miss Fontana Scholarship Pageant, Fontana Historical Society, Golden State Opportunity, Chicano Latino Caucus of SBC, Inland Empire Central Labor Council, and Inlan d Empire Ronald McDonald House. CBC contributions shall be calculated on an annual calendar year basis with payments due and payable on or before March 1 of the following calendar year. By way of example, if Permittee becomes operational in calendar year 2 024, then a CBC payment equal to one percent (1%) of its Gross Receipts for calendar year 2024 would be due on or before March 1, 2025. A CBC payment of the greater of $250,000 or one percent (1%) of its Gross Receipts for calendar year 2025 would then be due on or before March 1, 2026. Permittee must provide a written record of all funds and their recipients, provided to the City each year during the renewal process.

5.2.1 Permittee shall encourage employees of Permittee to provide individual volunteer services within the Fontana Community. Employees that provide verifiable volunteer service to the Fontana community shall be entitled to compensation by Permittee at their regular pay rate for up to 40 hours annually. Verification of service performed shall be in the sole discretion of Permittee. Permittee shall provide documentation to City of any such employee volunteer services.

5.2.2 The provisions of this subsection shall survive any termination or expiration of this Agreement for any reason.

6. Payment Procedures. The following procedures shall apply during the operation of the Project:

6.1 Remittance of Retail Fees/Certified Reports . Within thirty (30) calendar days following the end of each Operational Quarter during the Term of this Agreement commencing with the first O perational Quarter in which the Project has commenced, Permittee shall submit the Certified Report to the City’s Finance Director and a payment for the Retail Fees for that Operational Quarter as identified in the Certified Report. Permittee shall pay Reta il Fees to City on a quarterly basis without exception. Any material misstatement or misrepresentation in the Certified Report and any failure to pay Retail Fees when due shall constitute events of default by Permittee subject to the default provisions of this Agreement.

6.2 Maintenance of Records . Permittee shall maintain complete records of its operations to substantiate and document the content of each Certified Report. Such records shall include, without limitation, invoices and payments taken by Permittee and/or any operator of the Commercial Cannabis Facility. Permittee shall maintain such records in a form and location reasonably accessible to City, following reasonable notice to Permittee, for a period of at least five (5) calendar years following Permittee’s submission of the Certified Report to which the records apply.

6.3 Audit. The City may conduct an audit or arrange for a third -party independent audit, at Permittee ’s expense, of Permittee records regarding Certified Reports and the Gross Receipts, at the sole discretion of the City. Such audit would not occur more than twice in one calendar year. The City ’s Finance Director shall provide at least seven (7) business days 44 written notice of the commencement of such audit to Permittee and shall reasonably at tempt to schedule the audit so as to reduce the impact on Permittee operations as much as is feasible.

Permittee shall cooperate with the City in completing the audit. If the audit reveals that Permittee has underpaid the payment due at the end of any Oper ational Quarter, Permittee shall pay such underpaid amounts to the City within thirty (30) calendar days of receipt of written notice from the City’s Director of Finance. If the underpaid amount is more than five percent (5%) of the amount due, Permittee shall pay a penalty of an additional ten percent (10%) of Gross Receipts for first time underpayment and an additional twenty -five percent (25%) of Gross Receipts for any subsequent violations of the payment due at the end of the Operational Quarter. If the audit reveals that the Permittee has overpaid any amount of the Gross Receipts, City shall provide written notification to Permittee and shall credit such amount against Permittee ’s subsequent quarterly payments of Gross Receipts until the overpaid amount has been resolved.

6.4 Site Inspection . From time to time, the City has the right to inspect the Facility for the purpose of monitoring operations, checking quantities, and verifying volumes of product during operating hours or any time deemed appropriate to insure accurate reporting. The City must give notice at least forty-eight (48) hours in advance of any inspection.

7. Covenants of Permittee . During the Term of this Agreement, Permittee hereby covenants and agrees with the City as follows:

7.1 Implementation. Permittee shall use commercial reasonable efforts to pursue the implementation of the Project as expeditiously as feasible, in the form approved by the City, subject to all applicable laws, this Agreement, the Operating Agreement, the Commercial Cannabis Permit and the Municipal Code.

7.2 Maintain & Operate Project . Permittee shall maintain and operate the Project on the Site, throughout the Term of this Agreement, in accordance with the Project Approvals and all City, State and Federal laws (except as such Federal laws relate to the prohibition of the purchase, sale, or general operation of a cannabis business).

8. Indemnification. Permittee shall defend (with Counsel reasonably approved by the City), indemnify, and hold harmless the City and its Council, boards a nd commissions, officers, officials, employees, and agents from and against any and all actual and alleged liabilities, demands, claims, losses, damages, injuries, actions or proceedings and costs and expenses incidental thereto (including costs of defense, settlement and attorney’s fees), which arise out of, or which are in any way related to i) the cannabis business permit and any land use entitlement related thereto, ii) the proceedings undertaken in connection with the approval, denial, or appeal of the cannabis business permit and any land use entitlement related thereto, iii) any subsequent approvals or licensing/permits relating to the cannabis business permit and any land use entitlement related thereto, iv) the processing of the cannabis business pe rmit and any land use entitlement related thereto, v) any amendments to the approvals for the cannabis business permit and any land use entitlement related thereto, vi) the City ’s approval, consideration, analysis, review, issuance, denial or appeal of the cannabis business permit; vii) the City’s approval, consideration, analysis, review, issuance, denial or appeal of any land use entitlement related thereto, viii) the City’s drafting, adoption and passage of an ordinance, and related resolutions, policies, rules and regulations, allowing for cannabis businesses, ix) the City’s drafting, adoption 45 and passage of an ordinance, and related resolutions if necessary in the future regarding any zoning law amendment(s) related to Permittee, x) the operation of Pro ject or activity, xi) the process used by the City in making its decision to approve, consider, analyze, review, issue, or deny, my cannabis business permit or any related land use entitlement, or the appeal of either, xii) City’s compliance or failure to comply with applicable laws and regulations or xiii) the alleged violation of any federal, state or local laws by Permittee or any of its officers, employees or agents, except where such liability is caused by the sole negligence or willful misconduct of the City.

8.1 City may (but is not obligated to) defend such challenge as City, in its sole discretion, determines appropriate, all at applicant ’s sole cost and expense. Permittee shall bear any and all losses, damages, injuries, liabilities, costs, and expenses (including, without limitation, staff time and in -house attorney’s fees on a fully -loaded basis, attorney ’s fees for outside legal counsel, expert witness fees, court costs, and other litigation expenses) arising out of or related to any challenge (“Costs”), whether incurred by Permittee, City, or awarded to any third party, and shall pay to the City upon demand any Costs incurred by the City.

8.2 Permittee shall fund a deposit account (“Fund”) to reimburse the City’s cost, including attorney’s fees, to defen d any claim, action, or proceeding that is or may be subject to the agreement on limitations of City ’s Liability, and Certifications, Assurances Warranties, and Indemnification to City. In the event that any such claim, action, or proceeding is filed against the City, Permittee shall within 30 days of the filing deposit an initial sum of $25,000 to the Fund to reimburse my portion of the City defense costs, as determined by the City in its sole discretion.

The Fund shall, once established, shall at all time s contain an amount necessary to cover not less than three months’ worth of budgeted expenditures by the City relating to the City’s defense of the claim, action, or proceeding, including all time to appeal, or as long as expenditures made by the City relating to its defense remain unreimbursed, whichever is later. The City may, from time to time, in the City’s sole and absolute discretion, request additional deposits from the Permittee to ensure the fund balance is adequate to defend any claim, action or p roceeding, including appeals related thereto. Once all remaining and outstanding reimbursements have been paid to the City by Permitee, City shall return to me any remaining unused portion of my deposit.

8.3 The provisions of this subsection shall survive any termination or expiration of this Agreement for any reason. Permittee’s obligations under this section are in addition to, and shall not be construed to conflict with, Permittee’s obligations under the Settlement Agreement entered into between the City and Permittee dated December 19, 2024.

9. Hold Harmless.

9.1.1 Permittee hereby waives, releases, and holds harmless the City of Fontana ( “City”) and its Council, boards and commissions, officers, officials, employees, and agents from any and all actual and alleged c laims, losses, damages, injuries, liabilities, costs (including attorney’s fees), suits or other expenses which arise out of, or which are in any way relate to my application for a cannabis business permit, the issuance of the cannabis business permit, the process used by the City in making its decision, the enforcement of the conditions of the cannabis business permit, or the cannabis business’ operations. 46 9.1.2 Permittee hereby waives, releases and holds harmless the City and its Council, boards and commissions , officers, officials, employees, and agents from any and all actual and alleged claims, losses, damages, injuries, liabilities, costs (including attorney ’s fees), suits or other expenses which arise out of, or which are in any way relate to: (1) any repea l or amendment of any provision of the Fontana Municipal Code or Zoning Ordinance relating to commercial cannabis activity; or (2) any investigation, arrest or prosecution of Permittee, operators, employees, clients or customers, for a violation of state o r federal laws, rules or regulations relating to cannabis activities.

9.1.3 The provisions of this subsection shall survive any termination or expiration of this Agreement for any reason. Permittee’s obligations under this section are in addition to, and shall not be construed to conflict with, Permittee’s obligations under the Settlement Agreement entered into between the City and Permittee dated December 19, 2024

10. Covenants of City. During the Term of this Agreement, City hereby covenants and agrees with Permittee as follows:

10.1 Expeditious Services. City shall process applications and address questions and concerns raised by Permittee representatives at the “counter” at City Hall as expeditiously as reasonably possible. Upon Permittee’s request, or if, in an exercise of City’s own discretion, City staff determines that it cannot comply with this Section, City shall expeditiously engage the services of private contract planners, plan checkers or inspectors ( “Private Contractors ”) to perform such services as may be necessary to assist in processing the project plans as described herein. Compensation of such Private Contractors shall be at Permittee ’s sole cost and expense, inclusive of any administrative cost to City of integrating services by Private Contractors into the project’s development processing. Permittee shall pay such costs and expenses of Private Contractors via reimbursement to City, per City ’s applicable policies and procedures. Ci ty shall have absolute discretion in the selection of such Private Contractors.

10.2 Vested Rights. During the term of this Agreement, Permittee shall have the vested right and entitlement to develop and operate the Project in accordance with the Existing Land Use Ordinances, in addition to any Commercial Cannabis Activity operating standards found in the Municipal Code, which may be amended at the City ’s discretion to minimize or eliminate safety hazards.

10.3 Building Permits and Other Approvals and Permits . Subjec t to (a) Permittee’s compliance with this Agreement, the Project Approvals the Existing Land Use Ordinances, the Building Ordinances, and Operating Standards; and (b) payment of the usual and customary fees and charges of general application charged for the processing of such applications, permits and certificates and for any utility connection, or similar fees and charges of general application, the City shall process and issue to Permittee promptly upon application therefore all necessary use permits, bui lding permits, occupancy certificates, permits, licenses and other required permits for the construction, use and occupancy of the Project, or any portion thereof, as applied for, including connection to all utility systems under the City’s jurisdiction and control (to the extent that such connections are physically feasible and that such utility systems are capable of adequately servicing the Project).
47 10.4 Procedures and Standards . The standards for granting or withholding permits or approvals required hereund er in connection with the development of the Project shall be governed as provided herein by the standards, terms and conditions of this Agreement and the Project Approvals, and to the extent not inconsistent therewith, the Existing Land Use Ordinances, but the procedures for processing applications for such permits or approvals (including the usual and customary fees of general application charged for such processing) shall be governed by such ordinances and regulations as may then be applicable.

11. Effect of Agreement.

11.1 Grant of Right . This Agreement shall constitute a part of the Enacting Ordinance, as if incorporated by reference therein in full. The Parties acknowledge that this Agreement grants Permittee the right and entitlement to develop the Project and use the land pursuant to specified and known criteria and rules as set forth in the Project Approvals and Existing Land Use Ordinances, and to grant the City and the residents of the City certain benefits which they otherwise would not receive.

11.2 Binding on City. This Agreement shall be binding upon the City and its successors in accordance with and subject to its terms and conditions, unless subsequent action is taken by the City, whether by ordinance or resolution of the City Council, by referenda, initiative, or otherwise. As long as the City permits the retail cannabis in the City, and the Operating Agreement and Development Agreement are in good standing, the Permittee shall have a right to a Commercial Cannabis Permit.

11.3 Future Conflicting Local Laws . If any City law, including ordinances, resolutions, rules, regulations, standards, policies, conditions and specifications (collectively “City Laws”) are enacted or imposed by a citizen -sponsored initiative or referendum, or by the City Council directly or indirectly in connection with any proposed initiative or referendum, which City Law would conflict with this Agreement, such City Law shall apply to the Project. The Parties, acknowledge that the City ’s approval of this Agreement and the City Approvals are l egislative actions subject to referendum.

12. Specific Criteria Applicable to Development of the Project.

12.1 Applicable Ordinances. Except as set forth in the Project Approvals and subject to the provisions of Section 10.2 below, the Existing Land Use Ordinances shall govern the development of the Site hereunder and the granting or withholding of all permits or approvals required to develop the Site; provided, however, that (a) Permittee shall be subject to all changes in processing, inspection and plan-check fees and charges imposed by City in connection with the processing of applications for development and construction upon the Site so long as such fees and charges are of general application and are not imposed solely with respect to the Project Site, (b) Permittee shall abide by the Building Ordinances in effect at the time of such applications, (c) Development Impact Fees to be paid by Permittee shall be those in effect at the time permits are issued subject to those fees, and (d) development shall be consiste nt with current Operating Standards.
48 12.2 Amendment to Applicable Ordinances . Any change to the Existing Land Use Ordinances that conflicts with the Project Approvals shall nonetheless apply to the Project if, (i) it is determined by City and evidenced through findings adopted by the City Council that the change or provision is reasonably required in order to prevent a condition dangerous to the public health or safety; (ii) it is required by changes in State or Federal law; or (iii) it is otherwise expressly permitted by this Agreement. The City has adopted Operating Standards that govern this type of use, which Regulations, and any amendments thereto, shall apply to the Project.

13. Supersedure of Subsequent Laws or Judicial Action.

13.1 The provisions of this Agreement shall, to the extent feasible, be modified or suspended as may be necessary to comply with any new Law or decision issued by a court of competent jurisdiction (a “Decision”), enacted or made after the Execution Date which p revents or precludes compliance with one or more provisions of this Agreement. Promptly after enactment of any such new Law, or issuance of such Decision, the Parties shall meet and confer in good faith to determine the feasibility of any such modification or suspension based on the effect such modification or suspension would have on the purposes and intent of this Agreement. In addition, Permittee and City shall have the right to challenge the new Law or the Decision preventing compliance with the terms of this Agreement. In the event that such challenge is successful, this Agreement shall remain unmodified and in full force and effect, except that the Term shall be extended, in accordance with Section 3.1 above, for a period of time equal to the length of time the challenge was pursued, to extent such challenge delayed the implementation of the project.

13.2 The Parties recognize that California adopted, through ballot initiative, the AUMA and may adopt through initiative or legislative action other laws and regulations pertaining to either medical or adult use of cannabis. The Parties intend through this Agreement that Permittee shall have the right for retail sales of cannabis as allowed by current State Cannabis Law, pertaining to Commercial Cannabis Activity. To the extent the changes in California law change the legal process or structure by which cannabis retailers can or may operate (i.e. for -profit vs. non-profit entities, size of licensees, etc.), the Parties intend this Agreement to be flexible to allow such changes and may alter the procedures specified herein, by Operating Agreement as defined below, or otherwise, as may be necessary.

14. Operating Agreement . The Parties have entered into an Operating Agreement, incorporated as Exhibit C. The Operating Agreement and this Agreement are not independent of each other but are dependent on each other. Any breach of any terms of one Agreement shall constitute a breach of the other Agreement.

15. CEQA. Pursuant to the California Environmental Quality Act (“CEQA”) (Public Resources Code §21000 et seq.) and the State CEQA Guidelines (Cal. Code Regs.,tit. 14, §15000 et seq.), the whole of the Project, including the Development Agreement, has been reviewed and found to be exempt from CEQA pursuant to State CEQA Guidelines Section 15301, Existing Facilities and a Notice of Exemption will be filed upon adoption of the Ordinance approving this Agreement.

16. Building Permits. Nothing set forth herein shall impair or interfere with the right of City to require the processing of building permits as required by law relating to any specific 49 improvements proposed for the Project pursuant to the applicable provisions of the City ’s municipal code, inclusive of such California and International Codes as have been adopted i n accord therewith, that are in effect at the time such permits are applied for; provided, however, no such permit processing shall authorize or permit City to impose any condition on and/or withhold approval of any proposed improvement the result of which would be inconsistent with this Agreement.

17. Review for Compliance.

17.1 Periodic Review. Pursuant to California Government Code section 65865.1, City shall engage in an annual review of this Agreement, on or before the anniversary of the Execution Date, in orde r to ascertain Permittee ’s good faith compliance with its terms (the “Periodic Review”). In the event City fails to formally conduct such annual review, Permittee shall be deemed to be in full compliance with the Agreement.

18. Amendment or Cancellation . This Agreement may be amended or canceled in whole or in part only by mutual consent of the Parties or in the manner provided in California Government Code section 65865.1 or California Government Code section 65868.

19. Provide Notice. Provide the other Party with written notice of such State or Federal law or regulation, a copy of such law or regulation and a statement identifying how such law regulation conflicts with the provisions of this Agreement.

20. Meet and Confer . Upon notice by one Party to another as to pre emption or frustration of this Agreement by law or regulation, the Parties shall promptly meet and confer in good faith and make a reasonable attempt to modify or suspend this Agreement to comply with such applicable Federal or State law or regulation. If the Parties cannot agree on a manner or method to comply with such Federal or State law or regulation, the Parties may, but shall not be required to, engage in alternative dispute resolution.

21. Notices. All notices or other communications required or permitted hereunder shall be in writing and shall be either personally delivered (which shall include delivery by means of professional overnight courier service which confirms receipt in writing [such as Federal Express or UPS] ), sent by telecopier or facsimile (“Fax”) machine capable of confirming transmission and receipt, or sent by certified or registered mail, return receipt requested, postage prepaid to the following parties at the following addresses or numbers:

If to City: City of Fontana
8353 Sierra Ave.

Fontana, CA 92335
Attention: City Manager

With copy to: Best, Best & Krieger, LLP, City Attorney

2855 E. Guasti Rd.

Suite 400 Ontario, CA 91761
Attention: Ruben Duran, Esq.
50 If to Permittee: Catalyst - Fontana LLC
401 Pine Avenue
Long Beach, CA 90802
Attention: Compliance

With copy to: Anthony Almaz, Esq.
401 Pine Avenue
Long Beach, CA 90802

Notices sent in accordance with this Section shall be deemed delivered upon the: (a) date of delivery as indicated on the written confirmation of delivery (if sent by overnight courier service); (b) date of actual receipt (if personally delivered by other means); (c) date of transmission (if sent by email or telecopier, so long is sender r eceives actual confirmation that the transmission was received); or (d) date of delivery as indicated on the return receipt (if sent by certified or registered mail, return receipt requested). Notice of change of address shall be given by written notice in the manner detailed in this Section.

22. Breach and Remedies . Notwithstanding any provision of this Agreement to the contrary, Permittee shall not be deemed to be in default under this Agreement with respect to any obligation owed solely to City, and City may not terminate or modify Permittee’ rights under this Agreement, unless City shall have first delivered a written notice of any alleged default to Permittee that specifies the nature of such default. If such default is not cured by Permittee within fourteen (14) calendar days after receipt of such notice of default, City may terminate Permittee’s rights under this Agreement. In the event that a breach of this Agreement occurs, irreparable harm is likely to occur to the non - breaching Party and damages will be an inadequate remedy. To the extent permitted by law, therefore, it is expressly recognized that injunctive relief and specific enforcement of this Agreement are proper and desirable remedies, and it is agreed that any claim by Permittee against City for an alleged breach of this Agreement shall be remedied by injunctive relief or an appropriate action for specific enforcement of this Agreement and not by a claim or action for monetary damages.

23. Entire Agreement . This Agreement and the Exhibits herein contain the entire integrated agreement among the Parties. The Parties intend that this Agreement state their agreement in full to each and every one of its provisions. Any prior agreements, understa ndings, promises, negotiations or representations respecting the matters dealt with herein or the duties of any Party in relation thereto, not expressly set forth in this Agreement, are agreed by all Parties to be null and void. Notwithstanding this Section 23, the Settlement Agreement entered into between the City and Permittee dated December 19, 2024 , and all terms, conditions, and obligations contained therein, remains in full force and effect, and is in no way modified or superseded by this Agreement.

24. Severability. If any term, provision, condition, or covenant of this Agreement, or the application thereof to any Party or circumstance, shall to any extent be held invalid or unenforceable, the remainder of the instrument, or the application of such term , provision, condition or covenant to persons or circumstances other than those as to whom or which it is held 51 invalid or unenforceable, shall not be affected thereby and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

25. Attorneys’ Fees. In the event any Party hereto brings an action or proceeding for a declaration of the rights of the Parties, for injunctive relief, for an alleged breach or default, or any other action arising out of this Agreement, or the transactions contemplated hereby or institutes a reference or arbitration proceeding as may expressly be permitted by the terms of this Agreement, the prevailing Party in any such action shall be entitled to an award of actual attorneys ’ fees and costs incurred in such action or proceeding, without regard to any rule of court or schedule of such fees maintained by the court, in addition to any other damages or relief awarded, regardless of whether such action proceeds to final judgment.

26. Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed an original, but all of which constitute one and the same instrument.

27. Execution of Agreement. The Parties shall sign this Agreement on or within five (5) business days of approval.

28. Estoppel Certificate. City shall, at any time and from time to time within ten (10) calendar days after receipt of written notice from Permittee so requesting, execute, acknowledge and deliver to Permittee a statement in writing: (a) c ertifying that this Agreement is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying that this Agreement, as so modified, is in full force and effect); and (b) acknowledging that there are no uncured defaults on the part of Permittee hereunder or specifying such defaults if any are claimed. Any such statement may be relied upon by any prospective purchaser or encumbrancer of all or any portion of the Site. Upon Permittee’s written request, City shall issue a certificate of performance evidencing completion of any of Permittee’s obligation(s) under this Agreement.

29. Discretion to Encumber . The Parties hereto agree that this Agreement shall not prevent or limit Permittee, in any manner, at Permittee ’s sole discretion, from encumbering the Site or any portion thereof or any improvements thereon then owned by such person with any mortgage, deed of trust or other security device ( “Mortgage”) securing financing with respect to the Site or such portion. City acknowledges that the lenders providing such financing may require certain modifications, and City agrees, upon request, from time to time, to meet with Permittee and/or representatives of such lenders to negotiate in good faith any such request for modification.

City further agrees that it will not unreasonably withhold its consent to any such requested modification. Any mortgagee or trust deed beneficiary of the Site or any portion thereof or any improvements thereon and its successors and assigns ( “Mortgagee”) shall be entitled to the following rights and privileges.

30. Lender Requested Modification/Interpretation. City acknowledges that the lenders providing financing to Permittee may request certain interpretations and modifications of this Agreement. City therefore agrees upon request, from time to time, to meet with the Permittee and representatives of such lenders to negotiate in good faith any such request for interpretation or modification. The City will not unreasonably withhold its consent to any such requested interpretation or modification provided such interpretation or modification is consistent with the 52 intent and purposes of this Agreement, provided, further, that any modifications of this Agreement are subject to the provisions of this Agreement relative to modifications or amendments.

31. Governing Law and Venue . This Agreement and the legal relations between the Parties shall be governed by and construed in accordance with the laws of the State of California.

Furthermore, the Parties agree to venue in San Bernardino County, California.

32. Mutual Covenants. The covenants contained herein, including those contained in the Recitals herein, are mutual covenants and also constitute conditions to the concurrent or subsequent performance by the Party benefited thereby of the covenants to be performed hereunder by such benefited Party.

33. No Third Party Beneficiaries. This Agreement is made and entered into for the sole protection and benefit of the Parties . No other person or entity shall have any right of action based upon any provision of this Agreement.

34. Waiver. Failure by a Party to insist upon the strict performance of any of this Agreement’s provisions by the other party, or the failure by a Party to exercise its rights upon the default of the other Party, shall not constitute a waiver of such Party ’s right to insist and demand strict compliance by the other Party with the terms of this Agreement thereafter.

35. Time of Essence . Time is of the essence in the performance of the provisions of this Agreement as to which time is an element.

36. Recordation of Agreement . This Agreement and any amendment or cancellation thereof shall be recorded with the County Recorder by the City Clerk within the period required by Government Code Section 65868.5.

37. Headings. The headings in this Agreement are inserted for convenience only. They do not constitute part of this Agreement and shall not be used in its construction.

38. Waiver. The waiver by any party to this Agreement of a breach of any provision of this Agreement shall not be deemed a continuing waiver or a waiver of any subsequent breach of that or any other provision of this Agreement.

39. Jointly Drafted . It is agreed among the Parties that this Agreement was jointly negotiated and jointly drafted by the Parties and their respect ive counsel, and that it shall not be interpreted or construed in favor of or against any party solely on the ground that it drafted the Agreement. It is also agreed and represented by all Parties that said Parties were of equal or relatively equal bargaining power and that in no way whatsoever shall this Agreement be deemed to be a contract of adhesion, or unreasonable or unconscionable.

40. Independent Legal Counsel. Each Party acknowledges that it has been represented by independent legal counsel of its own choice throughout all of the negotiations that preceded the execution of this Agreement or has knowingly and voluntarily declined to consult legal counsel, and that each Party has executed this Agreement with the consent and on the advice of such independent legal counsel.
53 41. Further Cooperation. The Parties herein agree to execute any and all agreements, documents or instruments as may be reasonably necessary in order to fully effectuate the agreements and covenants of the Parties contained in this Agreement, or to evidence this Agreement as a matter of public record, if required to fulfill the purposes of this Agreement. The Parties further agree to mutually cooperate with one another in carrying out the purposes of this Agreement.

42. Enforceability. This Agreement shall not become binding and shall have no force and effect whatsoever until such time as it has been fully executed by and delivered to all of the parties hereto.

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the Execution Date.

[Signatures on following pages]

54 “CITY”
Date: ______________________, 2025

CITY OF FONTANA, CA
a California Municipal Corporation
By: ______________________________
Acquanetta Warren
Mayor
By: ______________________________
Matt C. Ballantyne
City Manager

Attest
By: ______________________________
Germaine McClellan Key
City Clerk
Approved as to form:

Best, Best & Krieger, LLP
By: _______________________________
Ruben Duran, Esq.

City Attorney

55 ACKNOWLEDGEMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA}
COUNTY OF }
On before
me,
(insert name and title of the officer)
personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature of Notary

56 “PERMITTEE”
Date: ________________________, 2025
Catalyst - Fontana LLC, a California limited liability
company, d.b.a. Catalyst - Fontana

By: ________________________
Its: Manager, Elliot Lewis
Approved as to form:

By: _________________________
Damian Martin, Esq.

Attorney for Permittee

57 ACKNOWLEDGEMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA}
COUNTY OF }

On before me
(insert name and title of the officer)
personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their autho rized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature of Notary

58 Development Agreement Acknowledgement and Authorization to Record

Re: Acknowledgement of Recording of Development Agreement Upon Property I acknowledge I am the owner of the property located at 15911 S. Highland Avenue, Fontana, CA 92336 (“Property”). It is my understanding that as part of the City of Fontana Commercial Cannabis Permit process, Catalyst - Fontana LLC, a California limited li ability company, dba Catalyst Fontana (“Tenant”) must enter into a Development Agreement with the City.

Pursuant to Government Code section 65868.5 a development agreement shall be recorded against real property with the county recorder. By means of this acknowledgement, I am consenting for the foregoing Development Agreement to be recorded against the Property. I also acknowledge that all the conditions and requirements of the Development Agreement are the sole responsibility of the Tenant, and not of the undersigned owner of the Property. “Owner”
Date: ________________________, 2025
Murray Weber Baelly and Goldie Baelly, husband and
wife, as joint tenants

By: ________________________
Murray Weber Baelly

By: ________________________
Goldie Baelly

59 ACKNOWLEDGEMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA}
COUNTY OF }

On before me,
(insert name and title of the officer)
personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature of Notary

60 EXHIBIT A
PARCEL NO. 022-830-101-000 DESCRIPTION

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF FONTANA,

COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:

LOT 13 OF TRACT NO. 3348 HIGHLAND HAVEN, IN THE CITY OF FONTANA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 47 PAGES 14, 15 AND 16 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

EXCEPTING 1/2 OF ALL PETROLEUM, OIL, NATURAL GAS AND ALL OTHER

HYDROCARBONS AND MINERALS, AS EXCEPTED IN THE DEED FROM THE ILLIANA CORPORATION, A CORPORATION TO JO HN VERNON, RECORDED JULY 3, 1953 IN BOOK 3199 PAGE 317, OFFICIAL RECORDS.
61 EXHIBIT B

MAP OF THE SITE
(Current Condition)

62 EXHIBIT C

OPERATING AGREEMENT

OPERATING AGREEMENT FOR COMMERCIAL CANNABIS BUSINESS LOCATED IN THE CITY OF

FONTANA, CALIFORNIA
THIS OPERATING AGREEMENT (this “Operating Agreement”) for a Commercial Cannabis Business is made and entered into this __th day of _________ ____,2025 (“Effective Date”), by and between the CITY OF FONTANA, a California municipal corporation (“City”) and CATALYST - FONTANA LLC dba Catalyst Fontana, with its principal address located at 401 Pine Avenue, Long Beach, CA 90802, (“Commercial Cannabis Business”). The City and Commercial Cannabis Business may be referred to herein individually as a “Party” and collectively as the “Parties.”

RECITALS
A. The City of Fontana, California (the “City”) is a municipal corporation, duly organized under the constitution and laws of the State of California.

B. The City Council adopted Ordinance No. 1899, on July 12, 2022, as amended on October 25, 2022, establishing a regulatory permit scheme for commercial cannabis activities, such that each proposed commercial activity must have an Agreement and a regulatory permit prior to operation.

C. The Commercial Cannabis Business submitted an appli cation to the City for a use permit to conduct certain commercial cannabis business in the City, located at 15911 S Highland Avenue, Fontana, CA 92336 (“Subject Property”).

D. The City may issue a Commercial Cannabis Permit to the Cannabis Permit to permit ca nnabis retail sales at the Subject Property, consistent with the provisions and requirements of Chapter 33 of the Fontana Municipal Code, permitting cannabis sales in the City.

E. As required by Chapter 33 of the Fontana Municipal Code, the Parties now wish to enter into this Agreement.

NOW, THEREFORE, in consideration of the mutual promises, conditions, and covenants set forth herein, the Parties agree as follows:

AGREEMENT

1. Incorporation of Recitals. The Recitals, and all defined terms set forth in this Agreement, are hereby incorporated into this Agreement as if set forth herein in full.

2. Public Benefit and Social Equity.
63 2.1 Intent. The purpose of this Agreement is to ensure positive community impacts from commercial cannabis business operations through loca l sourcing, community benefit and sustainable business practices, and the collection of required fees as applicable for the operation of a commercial cannabis business and to provide mitigation options to be used by City to compensate for impacts to City s ervices, residents, and/or businesses as set forth in Fontana Municipal Code Chapter 33. The Parties agree that this Agreement confers substantial private benefits on Commercial Cannabis Business which should be balanced by commensurate public benefits. As part of the cannabis Regulatory Safety Permit process, Commercial Cannabis Business agrees to enter into this Agreement. Commercial Cannabis Business acknowledges that City and Commercial Cannabis Business have had extensive negotiations and proceedings p rior to entering into this Agreement. Commercial Cannabis Business has elected to execute this Agreement as it provides Commercial Cannabis Business with important economic benefits.

Accordingly, the Parties intend to provide consideration to the public to balance the private benefits conferred on Commercial Cannabis Business by providing mitigation measures to the public and to pay for City services.

2.2 Local Hiring and Sourcing . Commercial Cannabis Business agrees to use its reasonable efforts to hire qualified City of Fontana residents, currently living in Fontana, to work at its commercial cannabis businesses. Commercial Cannabis Business shall also use reasonable efforts to retain the services of qualified contractors and suppliers who are located in the City of Fontana or who employ a significant number of City of Fontana residents. Commercial Cannabis Business shall make a good faith effort to advertise on various social media sites, at local job fairs, and through public agencies and organizations.

3. Definitions. The following terms shall have the following meanings for purposes of this Agreement, but other terms may be defined elsewhere in this Agreement.

3.1 “Commercial Cannabis Permit” means the regulatory permit issued by the City to the Commercial Cannabis Business pursuant to the provisions of Chapter 33 of the Fontana Municipal Code.

3.2 “City Permits” means and includes all building permits, use permits, zoning amendments, operating agreements, development agreements, and other permits, including the cannabis business permit, licenses, entitlements, and agreements that the City, acting in its governmental capacity, must issue or approve for the Cannabis Business to operate in accordance with the City’s regulations and this Agreement.

3.3 “Commencement Date” means the date that all of the following have occurred:
(1) the City has issued all necessary City Permits; (2) the Cannabis Business has obtained all necessary State Licenses to operate; and (3) the Cannabis Business has obtained a certificate of occupancy.

3.4 “City Manager” means the City Manager and his or her designee. 64 3.5 “Effective Date” means the date first entered above as the Effective Date and is the date that both Parties have signed this Agreement.

3.6 “Manager” means a person with responsibility and authority over the establishment, management, supervision, or oversight of the operation of the Commercial Cannabis Business.

3.7 “State License(s)” means all licenses required to be issued by the State of California for operation of the Commercial Cannabis Business pur suant to Division 10 of the Business and Professions Code and applicable state regulations, including but not limited to Division 42 of Title 16, Division 8 of Title 3, and Division 1 of Title 17 of the California Code of Regulations (“CCR”), as those provisions may be amended.

3.8 “Term” means the period of time this Agreement is in effect as specified in Section

5. 4. Consideration. As consideration for the rights and benefits it enjoys under this Agreement, including its operation of approved cannabis uses in t he City during the Term, the Commercial Cannabis Business shall pay the City fees as set forth by Resolution by the City Council.

5. Term of Agreement . Except as otherwise specified herein, the term of this Agreement (the “Term”) shall be for three (3) years from the Execution Date. The Term shall generally be subject to earlier termination or extension as hereinafter provided.

5.1 Term Extension. This Agreement shall be subject to two (2) year extensions at the sole discretion of the City. If at the sole discreti on of the City, the City finds that Permittee demonstrates to have complied in good faith with the terms and conditions of this Agreement, the Parties may enter into a written extension signed by both Parties.

5.2 Request by Permittee of Term Extension. The Te rm of this Agreement may be extended at the request by Permittee by written notice no later than one hundred twenty (120) calendar days before the expiration of the term and Permittee shall not be in default with respect to any provision of this Agreement or any subsequent agreement or understanding between the Parties arising from or related to this Agreement, having received notice from City of said default per this Agreement, or if Permittee did in fact default as to this Agreement, upon notice from City, that Permittee did cure said default during the period to cure provided herein to City’s satisfaction.

5.3 Termination of Agreement. Upon the termination of this Agreement, either by expiration or otherwise, Permittee shall have no right to engage in Commercial Cannabis Activity at the Project Site, except as may otherwise be allowed by City ordinance or law.

6. Business License Required . A valid City of Fontana Business License is required for all persons engaged in transacting and carrying on any commercial cannabis business activity in the 65 City of Fontana. It is unlawful for any person or legal entity to commence, transact or carry -on cannabis business activity in the City of Fontana without first having procured a City of Fontana cannabis business license.

7. Bond Requirement. Commercial Cannabis Business shall provide proof of a bond in the amount of Twenty-Five Thousand Dollars ($25,000.00) to cover the cost of enforcing the terms of Chapter 33 and this Agreement if necessitated by a violation of the licensing requirements.

8. Records and Recordkeeping.

8.1 Commercial Cannabis Business shall maintain accurate books and records in an electronic format, detailing all of the revenues and expenses of the business, and all of its assets and liabilities. On no less than an a nnual basis, or at any time upon reasonable request of the City, Commercial Cannabis Business shall file a sworn statement detailing the Commercial Cannabis Business’s revenue and number of sales during the previous 12 -month period (or shorter period based upon the timing of the request), provided on a per -month basis. The statement shall also include gross revenues for each month, and all applicable taxes paid or due to be paid. On an annual basis, Commercial Cannabis Business shall submit to the City a financial audit of the Commercial Cannabis Business operations conducted by an independent certified public accountant. Each permittee shall be subject to a regulatory compliance review and financial audit as determined by the City.

8.2 Commercial Cannabis Business shall maintain a current register of the names and the contact information (including the name, address, and telephone number) of anyone owning or holding an interest in the Commercial Cannabis Business, and separately of all the officers, managers, employees, agents and volunteers currently employed or otherwise engaged by the Commercial Cannabis Business. The register required by this paragraph shall be provided to the City upon request.

8.3 All records collected by Commercial Cannabis Business shall be m aintained for a minimum of seven years and shall be made available by the Commercial Cannabis Business to the agents or employees of the City upon request, except that private medical records shall be made available only pursuant to a properly executed search warrant, subpoena, or court order.

8.4 Subject to any restrictions under the Health Insurance Portability and Accountability Act (HIPAA) regulations, Commercial Cannabis Business shall allow City officials to have access to the business’s books, records, a ccounts, together with any other data or documents relevant to its permitted commercial cannabis activities, for the purpose of conducting an audit or examination. Books, records, accounts, and any and all relevant data or documents will be produced no lat er than 24 hours after receipt of the City’s request, unless otherwise stipulated by the City. The City may require the materials to be submitted in an electronic format that is compatible with the city’s software and hardware.

9. Records Inspection, Examination and Audit. Commercial Cannabis Business acknowledges and agrees that City is empowered under this Agreement to inspect, examine and audit 66 Commercial Cannabis Business’s books and records (including tax filings and returns). City or its authorized agents shall have the power and authority to conduct a full inspection, examination and audit of such books and records (including tax filings and returns) at any reasonable time, including but not limited to, during normal business hours. In the event any such books, records, tax filings and returns cannot be made fully available within the City of Fontana, Commercial Cannabis Business acknowledges and agrees that it shall reimburse City for the cost of all transportation, lodging, meals, portal-to-portal travel time, and other incidental costs reasonably incurred by City or its authorized agents in obtaining said full inspection, examination and audit.

In the event that said records inspection, examination and audit determines that a net operating agreement or development agreement fee payment deficiency of greater than five percent (5%) exists; Commercial Cannabis Business acknowledges and agrees that it shall reimburse City for the full cost of said records inspection, examination and audit reasonably incurred by City or its authorized agents.

10. General Terms and Conditions . The Commercial Cannabis Business shall comply with all of the following terms and conditions for the Term of this Agreement:

10.1 This Agreement is only valid for the Commercial Cannabis B usiness to operate at the Subject Property identified in this Agreement. The rights and obligations set forth in this Agreement shall not be transferred, assigned, or assumed unless agreed to in advance in writing by the City. The Commercial Cannabis Business expressly acknowledges, understands and agrees that nothing in this Agreement confers any ongoing vested property right or entitlement to conduct the Commercial Cannabis Business, or any other commercial cannabis activity, at the Subject Property; this Agreement sets forth only the operational requirements of the Commercial Cannabis Business as otherwise approved by the City and the Commercial Cannabis Business will be required to obtain a permit in accordance with Chapter 33 of the Fontana Municipal Co de which the City shall issue in accordance with this Agreement.

10.2 Conditions placed on any City Permits, expressly including the Commercial Cannabis Business Permit shall be conditions and requirements of this Agreement. Violations of the City Permits shall be deemed violations of this Agreement and shall constitute a material breach of this Agreement. Violations of any applicable State Licenses shall be deemed violations of this Agreement and shall constitute a material breach of this Agreement.

10.3 The Commercial Cannabis Business shall obtain and maintain at all times a valid Commercial Cannabis Permit, Use Permit, and applicable State License(s) prior to and during operation of the Cannabis Business. The City shall issue a Commercial Cannabis Permit and any other City Permits to the Commercial Cannabis Business provided that the Cannabis Business is in compliance with the provision of Chapter 33 of the Fontana Municipal Code and State Law.

10.3.1 As soon as practicable, the Commercial Cannabis Business shall inform t he City when it obtains its necessary State License(s), and shall provide a copy of the State License(s) to the City Manager. The City shall cooperate with the Commercial Cannabis Business as appropriate and as needed to facilitate the State’s issuance of a State License(s) to the Commercial Cannabis Business. Failure of the 67 Commercial Cannabis Business to procure and produce evidence of receipt of any required state licenses within eighteen months of the effective date of this Agreement shall be deemed a material and incurable breach of the Agreement and, this Agreement, along with any permits issued by the City for a Commercial Cannabis Business shall immediately be deemed null and void and the Commercial Cannabis Business shall be prohibited from application for a future Commercial Cannabis Business permit in the City for a period of ten (10) years.

10.3.2 The Commercial Cannabis Business agrees to provide City with copies of any reports provided to a State Cannabis Licensing Agency, including any required financial or compliance reports, within thirty (30) days of that submission and further agrees to keep such records in accordance with State law and Chapter 33 of the Fontana Municipal Code.

10.3.3 The City shall diligently process the Commercial Cannabis Business’s applications for all City Permits. This Agreement commits the City in advance to approve the City Permits provided that the Commercial Cannabis Business complies with all the provisions of Chapter 33 of the Fontana Municipal Code and the requirements to obtain City Permits. Nothing in this Agreement relieves the Commercial Cannabis Business of the obligation to comply with all requirements of the Fontana Municipal Code.

10.4 The Commercial Cannabis Business agrees to comply with all applicable State Law and local laws and regulations applicable to operation of the Commercial Cannabis Business, including Chapter 33 of the Fontana Municipal Code.

10.5 The Commercial Cannabis Business agrees to conduct an annual financial audit and/or compliance review, at Commercial Cannabis Business’s cost, as requested by the City.

11. Operational Requirements. In addition to all operating requirements set forth in Chapter 33 of the Fontana Municipal Code, the Commercial Cannabis Business shall comply with the following specific operational requirements:

11.1 The Commercial Cannabis Business shall immediately notify the Fontana Police Department of any criminal activity, or suspected criminal activity, occurring at the Subject Property. In the event of any internal security system breach, in cluding a faulty alarm system, broken or damaged surveillance cameras or other video recording equipment, or broken or damaged locks, doors, or lighting which may increase risk of criminal activity at the Subject Property, the Manager of the Commercial Can nabis Business shall notify the City Police Department as soon as practicable after becoming aware of the security system breach. The Commercial Cannabis Business shall diligently attempt to fix or resolve any such security breach immediately; if circumsta nces require additional time and delay to remedy, the Commercial Cannabis Business shall so notify the City Police Department and provide an estimated timeline the security breach will be cured.
68 11.2 If the Commercial Cannabis Business receives any criminal thr eats, or otherwise suspects any criminal targeting related to movement of product or cash from or to the Subject Property, the Commercial Cannabis Business shall immediately notify the City Police Department.

11.3 Commercial Cannabis Business shall abide by the operating procedures submitted to the City, as set forth in Section 33-8(a)(8) and that are hereby attached and incorporated into this Agreement as Exhibit B. The Commercial Cannabis Business shall immediately notify City of any modifications to the operating procedures.

11.4 Commercial Cannabis Business shall abide by the operating requirements set forth in Sections 33-29, 33-30 and 33-31, including but not limited to, hours of operation not to exceed 9:00 am to 9:00 pm, no consumption of cannabis on premises, no cannabis or cannabis products shall be visible from exterior of property, and no persons under 21 years (or 18 years if such person is a customer of the Commercial Cannabis Business and is in possession of a valid physician's recommendation, a valid co unty-issued medical marijuana identification card, or be a Primary Caregiver, as defined in Sections 11362.7(d) or 11362.5(e) of the California Health and Safety Code, with a valid physician's recommendation for the patient ) shall be allowed on the premises. The provisions of Sections 33 -29, 33 -30 and 33 -31 shall be strictly enforced by Commercial Cannabis Business.

11.5 Commercial Cannabis Business shall abide by the requirements of Development Agreement.

12. Inspections.

12.1 The city manager, police chief, fire marsha l, code compliance representative and their designees charged with enforcing the provisions of the Fontana Municipal Code may enter the Commercial Cannabis Business at any time during regular business hours, without notice, and inspect the location of the Commercial Cannabis Business as well as any recordings and records required to be maintained pursuant to this chapter or under applicable provisions of state law.

12.2 It is unlawful for any person having responsibility over the operation of the Commercial Cannabis Business, to impede, obstruct, interfere with, or otherwise not to allow, the City to conduct an inspection, review or copy records, recordings or other documents required to be maintained by the Commercial Cannabis Business under Chapter 33 or under state or local law. It is also unlawful for a person to conceal, destroy, deface, damage, or falsify any records, recordings or other documents required to be maintained by the Commercial Cannabis Business under Chapter 33 or under state or local law.

13. Default and Termination for Cause . Without prejudice to its other remedies at law or in equity, the City may terminate this Agreement for cause with thirty (30) days’ written notice to Commercial Cannabis Business provided that Commercial Cannabis Business does not cure as set forth in section 13.7 below. Caused as used in this section is defined as:
69 13.1 Failure to comply with the terms of the City of Fontana Commercial Cannabis Permit issued to Commercial Cannabis Business by City;

13.2 Failure of Commercial Cannabis Business to maintain a valid active City of Fontana Business License as the commercial cannabis business approved by the Commercial Cannabis Permit and as operating;

13.3 Failure by Commercial Cannabis Business to accurately report gross receipts information or other data necessary for City to calculate/confirm operating or development agreement fees;

13.4 Failure by Commercial Cannabis Business to pay operating agreement fees and related reimbursement costs within thirty (30) days of the date those fees are due;

13.5 Failure by Commercial Cannabis Business to cooperate with City or City’s authorized agents in any inspection, examination and audit of Commercial Cannabis Business’s commercial cannabis business books and records (including tax filings and returns).

13.6 This Agreement will automatically terminate if:

13.6.1 Commercial Cannabis Business’s Commercial Cannabis Permit is revoked by City or is not renewed by City, or

13.6.2 Commercial Cannabis Business transfers its Commercial Cannabis Permit in violation of Fontana Municipal Code section 33-15.

13.7 Cure Period. Commercial Cannabis Business shall cure the default resulting from the cause for termination within thirty (30) days of the date of the notice of termination. If Commercial Cannabis Business fails to cure the default within th irty (30) days of the date of the notice of termination for cause, this Agreement will be terminated.

14. Termination.

14.1 The Commercial Cannabis Business may terminate this Agreement prior to expiration of the Term for the reasons and subject to the requirements set forth below. The Commercial Cannabis Business understands and acknowledges that the right to operate the Commercial Cannabis Business is expressly contingent on full compliance with Chapter 33 of the Fontana Municipal Code. As such, termination of thi s Agreement shall result in the immediate termination of the Commercial Cannabis Business’s operations, unless and until a new Operating Agreement is executed by the Parties.

14.2 Commercial Cannabis Business’s Termination Rights . The Commercial Cannabis Business may, at any time and in its sole discretion, effective thirty (30) days after the Commercial Cannabis Business provides written notice of termination to the City. Such termination shall not relieve Commercial Cannabis Bus iness of any outstanding or previously incurred liability, payment, or obligation to City. All fees due pursuant to the Commercial Cannabis Permit, this 70 Operating Agreement or any Development Agreement between the Parties shall immediately be due and payable.

15. Indemnification.

15.1 Commercial Cannabis Business shall defend (with Counsel reasonably approved by the City), indemnify, and hold harmless the City and its Council, boards and commissions, officers, officials, employees, and agents from and against any an d all actual and alleged liabilities, demands, claims, losses, damages, injuries, actions or proceedings and costs and expenses incidental thereto (including costs of defense, settlement and attorney’s fees), which arise out of, or which are in any way related to i) the cannabis business permit and any land use entitlement related thereto, ii) the proceedings undertaken in connection with the approval, denial, or appeal of the cannabis business permit and any land use entitlement related thereto, iii) any subsequent approvals or licensing/permits relating to the cannabis business permit and any land use entitlement related thereto, iv) the processing of the cannabis business permit and any land use entitlement related thereto, v) any amendments to the approv als for the cannabis business permit and any land use entitlement related thereto, vi) the City’s approval, consideration, analysis, review, issuance, denial or appeal of the cannabis business permit; vii) the City’s approval, consideration, analysis, revi ew, issuance, denial or appeal of any land use entitlement related thereto, viii) the City’s drafting, adoption and passage of an ordinance, and related resolutions, policies, rules and regulations, allowing for cannabis businesses, ix) the City’s drafting, adoption and passage of an ordinance, and related resolutions if necessary in the future regarding any zoning law amendment(s) related to Commercial Cannabis Business, x) the operation of Commercial Cannabis Business or activity, xi) the process used by the City in making its decision to approve, consider, analyze, review, issue, or deny, my cannabis business permit or any related land use entitlement, or the appeal of either, xii) City’s compliance or failure to comply with applicable laws and regulation s or xiii) the alleged violation of any federal, state or local laws by Commercial Cannabis Business or any of its officers, employees or agents, except where such liability is caused by the sole negligence or willful misconduct of the City.

15.2 City may (but is not obligated to) defend such challenge as City, in its sole discretion, determines appropriate, all at applicant’s sole cost and expense. Commercial Cannabis Business shall bear any and all losses, damages, injuries, liabilities, costs, and expenses (including, without limitation, staff time and in -house attorney’s fees on a fully -loaded basis, attorney’s fees for outside legal counsel, expert witness fees, court costs, and other litigation expenses) arising out of or related to any challenge (“Costs”), whether incurred by Commercial Cannabis Business, City, or awarded to any third party, and shall pay to the City upon demand any Costs incurred by the City.

15.3 Commercial Cannabis Business shall fund a deposit account (“Fund”) to reimburse the City’s cost, including attorney’s fees, to defend any claim, action, or proceeding that is or may be subject to the agreement on limitations of City’s Liability, and Certifications, Assurances Warranties, and Indemnification to City. In the event that any such claim, ac tion, or proceeding is filed against the City, Commercial Cannabis Business shall within thirty (30) days of the filing 71 deposit an initial sum of $25,000 to the Fund to reimburse Commercial Cannabis Business’ portion of the City defense costs, as determined by the City in its sole discretion. The Fund, once established, shall at all times, until conclusion of the claim, proceedings, or action, contain an amount necessary to cover not less than three months’ worth of budgeted expenditures by the City relating to the City’s defense of the claim, action, or proceeding, including all time to appeal, or as long as expenditures made by the City relating to its defense remain unreimbursed, whichever is later. The City may, from time to time, in the City’s sole and absolute discretion, request additional deposits from the Commercial Cannabis Business to ensure the fund balance is adequate to defend any claim, action or proceeding, including appeals related thereto. Once all remaining and outstanding reimbursements ha ve been paid to the City by Commercial Cannabis Business, and upon resolution of the claim, proceeding or action, City shall return any remaining unused portion of deposit.

15.4 The provisions of this subsection shall survive any termination or expiration of this Agreement for any reason.

16. Waiver, Release and Hold Harmless

16.1 Commercial Cannabis Business hereby waives, releases, and holds harmless the City of Fontana (“City”) and its Council, boards and commissions, officers, officials, employees, and agents from any and all actual and alleged claims, losses, damages, injuries, liabilities, costs (including attorney’s fees), suits or other expenses which arise out of, or which are in any way relate to my application for a cannabis business permit, the issuance of the cannabis business permit, the process used by the City in making its decision, the enforcement of the conditions of the cannabis business permit, or the cannabis business’ operations.

16.2 Commercial Cannabis Business hereby waives, releases and holds harmless the City and its Council, boards and commissions, officers, officials, employees, and agents from any and all actual and alleged claims, losses, damages, injuries, liabilities, costs (including attorney’s fees), suits or other expenses which arise out of, or which are in any way relate to:
(1) any repeal or amendment of any provision of the Fontana Municipal Code or Zoning Ordinance relating to commercial cannabis activity; or (2) any investigation, arrest or prosecution of Commercial Cannabis Business, or the cannabis business’ owners, operators, employees, clients or customers, for a violation of state or federal laws, rules or regulations relating to cannabis activities.

16.3 The provisions of this subsection shall survive any termination or expiration of this Agreement for any reason.

17. Notice. Any notice or other communication provided pursuant to this Agreement must be in writing and shall be considered properly given and effective only when mailed or delivered in the manner provided by this Section to the pe rsons identified below. A mailed notice or other communication shall be considered given and effective on the third day after it is deposited in the United States Mail (certified mail and return receipt requested). A notice or other communication sent in a ny other manner will be effective or will be considered properly given 72 when actually delivered. A Party may change its address for these purposes by giving written notice of the change to the other Party in the manner provided in this Section.

If to City: City of Fontana
8353 Sierra Ave.

Fontana, CA 92335
Attention: City Manager

With copy to: Best, Best & Krieger, LLP, City Attorney

2855 E. Guasti Rd.

Suite 400 Ontario, CA 91761
Attention: Ruben Duran, Esq.

If to Permittee: Catalyst - Fontana LLC
401 Pine Avenue
Long Beach, CA 90802
Attention: Compliance

With copy to: Anthony Almaz, Esq.
401 Pine Avenue
Long Beach, CA 90802

17.1 “Force Majeure Event” means a cause of delay that is not the fault of the Party who is required to perform under this Agreement and is beyond that Party’s reasonable control, including the elements (such as floods, earthquakes, windstorms, and unusually severe weather), fire, energy shortages or rationing, riots, acts of terrorism, war or war -defense conditions, acts of any public enemy, epidemics, pandemics, the actions or inactions of any governmental entity (excluding the City) or that entity’s agents, including any “stay at home” or “safer at home” and/or any other governmental order requiring the Commercial Canna bis Business to temporarily cease operations, litigation, labor shortages (including shortages caused by strikes or walkouts), and materials shortages.

17.2 Except as otherwise expressly provided in this Agreement, if the performance of any act required by this Agreement to be performed by either the City or Commercial Cannabis Business is prevented or delayed because of a Force Majeure Event, then the time for performance shall be extended for a period equivalent to the period of delay, and performance of the act during the period of delay will be excused.

18. Waiver. A Party’s failure to insist on strict performance of this Agreement or to exercise any right or remedy upon the other Party’s breach of this Agreement shall not constitute a waiver of any performance, right, or remedy. A Party’s waiver of the other Party’s breach of any provision in this Agreement shall not constitute a continuing waiver or a waiver of any 73 subsequent breach of the same or any other provision. A waiver is binding only if set forth in writing and signed by the waiving Party.

19. Relationship of Parties . This Agreement does not create any employment relationship, ownership interest, or other association between the City and Commercial Cannabis Business.

Nothing herein shall be construed to crea te the relationship of principal and agent, partnership or other joint venture between the City and Commercial Cannabis Business.

20. Attorneys’ Fees . The Party prevailing in any litigation concerning this Agreement, the Subject Property, or the Commercial Cannabis Business operations, shall be entitled to an award by the court of reasonable attorneys’ fees and litigation costs. If the City is the prevailing party, then this Section shall apply whether the City is represented in the litigation by the designated City Attorney or by outside counsel.

21. Jurisdiction and Venue. This Agreement has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this Agreement shall be determined and governed by the laws of the State of California. Both parties further agree that San Bernardino County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement.

22. Severability. If a court with competent jurisdiction finds any provision of this Agreement to be invalid, void, or unenforceable, then the remaining provisions shall remain in full force and effect, and to this end this Agreement shall be severable.

23. Counterparts. The Parties may execute this Agreement in counterparts, each of which shall constitute an original, but all of which shall collectively constitute this same Agreement.

24. Disclaimer. Despite California’s commercial cannabis laws and the terms and c onditions of this Agreement or any Commercial Cannabis Permit issued pertaining to Commercial Cannabis Business or the hereinabove specified property location, California commercial cannabis cultivators, transporters, distributors, cannabis testing facilit y/laboratory businesses or possessors may still be subject to arrest by federal officers and prosecuted under federal law.

The Federal Controlled Substances Act, 21 USC § 801 et seq., prohibits the manufacture, manufacturing, and possession of cannabis without any exemptions for medical or non-medicinal use.

25. Integration and Modification. This Agreement sets forth the Parties’ entire understanding and agreement regarding the matters addressed herein. This Agreement supersedes all prior or contemporaneous agr eements, representations, and negotiations (written, oral, express, or implied) and may be modified only by written agreement signed by both Parties.

IN WITNESS WHEREOF, the parties enter into this Agreement as of the Effective Date.

74 City of Fontana Catalyst - Fontana LLC

By: By:

City Manager Elliot Lewis, Manager
Dated: , 2025 Dated: , 2025

Approved as to Form Fontana
City Attorney

By:

City Attorney

75 City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0004 Agenda Date: 1/28/2025
Agenda #: C. Category: Consent Calendar
FROM:

Planning
SUBJECT:

Adoption of Ordinance No. 1961 (Second Reading), approving Master Case No. 24-067 and Municipal Code Amendment No. 24-005 to amend multiple sections of Chapter 30 of the Fontana Zoning and Development Code, including amendments to density bonuses, entitlement extension approvals and minor administrative cleanup items, restrictions on single-serving alcohol sales, premise-to-premise transfer of conditional use permits for alcohol sales, food truck standards, minor planned unit development standards, temporary use permits, in-home childcare facilities, permitted land uses in the Downtown Core, and Form-Based Code zoning district development standards RECOMMENDATION:

Second Reading/Adopt Ordinance No. 1961, Approving Master Case No. 24-067 and Municipal Code Amendment No. 24-005 to amend multiple sections of Chapter 30 of the Fontana Zoning and Development Code.

COUCIL GOALS:
· Promote economic development by pursuing business attraction, retention, and expansion. · Promote economic development by establishing a quick, consistent development process. · Promote economic development by being business friendly at all levels and striving to constantly improve the city's competitiveness.

DISCUSSION:

Ordinance No. 1961 was introduced by a vote of 5-0 at the December 10, 2024, Regular City Council Meeting..

FISCAL IMPACT:

None
MOTION:

Approve staff recommendation.

City of Fontana Printed on 1/21/2025Page 1 of 1
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76

ORDINANCE NO. 1961

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FONTANA, CALIFORNIA, APPROVING MUNICIPAL CODE AMENDMENT NO. 24-
005 TO AMEND MULTIPL E SECTIONS OF CHAPTE R 30 (FONTANA

ZONING AND DEVELOPMENT CODE) INCLUDING AMENDMENTS TO

SECTIONS PERTAINING TO DENSITY BONUSES, ENTITLEMENT

EXTENSION APPROVALS, ALCOHOL SALES, FOOD TRUCKS AND

TEMPORARY USES, MINOR PLANNED UNIT DEVELOPMENT

STANDARDS, IN-HOME CHILDCARE FACILITIES, PERMITTED LAND

USES IN THE DOWNTOWN CORE, FORM -BASED CODE

DEVELOPMENT STANDARDS, AND MINOR ADMINISTRATIVE

CLEANUP ITEMS, PURSUANT TO A CATEGORICAL EXEMPTION IN
ACCORDANCE WITH CEQA GUIDELINES SECTIONS 15060(C),
15061(B)(3), AND SECTION 15378 AND DIRECTING STAFF TO FILE A NOTICE OF EXEMPTION.

WHEREAS, pursuant to article XI, Section 5 of the California Constitution and Government Code section 37100, the legislative body of a city may pass ordinances not in conflict with the Constitution and laws of the State or the United States; and

WHEREAS, Government Code sections 50022.1 to 50022.10 authorizes a city to codify and recodify its ordinances; and

WHEREAS, the City of Fontana (“City”) desires to restate without substantive revision, amend and recodify certain ordinances codified in the Fontana Municipal Code (“Code”) through Municipal Code Amendment (“MCA”) No. 24-005; and

WHEREAS, the City of Fontana General Plan (“General Plan”) includes policies and actions calling for numerous updates to the Code; and

WHEREAS, Section 30-12. – List of definitions. is amended to include definitions pertaining to food trucks; and

WHEREAS, Section 30 -118. – Application. is amended to provide a correct reference to the Planning Department and Director of Planning; and

WHEREAS, Section 30-124. – Time limitations. is amended to provide a correct reference to a related section of the Code; and

WHEREAS, Section 30 -127. – Application. is amended to provide a correct reference to the Planning Department and Director of Planning; and

77 Ordinance No. 1961

WHEREAS, Section 30 -133. – Time limitations. is amended to provide a correct reference to a related section of the Municipal Code; and

WHEREAS, Section 30 -138. – Application. is amended to provide a correct reference to the Planning Department and Director of Planning; and

WHEREAS, Section 30 -154. – Time limitations. is amended to correct a typographical error; and

WHEREAS, Section 30-209. – Time limitations. is amended to provide a correct entitlement reference; and

WHEREAS, Section 30-212. Time limitations. is amended to give the Director of Planning the authority to approve time extensions for administrative variances; and

WHEREAS, Section 30-222. Time limitation. is amended to give the Director of Planning the authority to approve time extensions for major variances; and

WHEREAS, Section 30 -256. – Types of temporary use applications and conditions. is amended to correct references to the Director of Planning and to include a temporary use permit for food trucks; and

WHEREAS, Section 30-256(a). – Food truck temporary use permit. is added to provide procedures and standards related to temporary use permits for food trucks; and

WHEREAS, Section 30 -257. – Approval. is amended to provide a correct reference to the approval of temporary use permits; and

WHEREAS, Sec. 30-258. - Appeal. is amended to provide a correct reference to the Director of Planning; and

WHEREAS, Section 30 -282. – Application. is amended to provide a correct reference to the Planning Department and Director of Planning; and

WHEREAS, Section 30 -284. – Findings for approval. is amended to provide a correct reference to the Director of Planning; and

WHEREAS, Section 30-285. - Noticing. is amended to provide a correct reference to tentative parcel maps; and

WHEREAS, Section 30-286. - Hearing. is amended to provide a correct reference to tentative parcel maps; and

WHEREAS, Section 30-287. – Appeal. is amended to provide a correct reference to the Director of Planning; and

78 Ordinance No. 1961

WHEREAS, Section 30-288. - Time limitations. is amended to provide a correct reference to tentative parcel maps; and

WHEREAS, Section 30 -290. – Authority. is amended to provide a correct reference to tentative tract maps and update the authority of the City of Fontana Planning Commission (“Planning Commision”); and

WHEREAS, Section 30 -291. – Application. is amended to provide a correct reference to the Director of Planning and to revise the application submittal requirements; and

WHEREAS, Section 30-295. – Hearing. is amended to provide a correct reference to the Planning Department and Director of Planning; and

WHEREAS, Section 30 -299. – Authority. is amended to provide a correct reference to the Director of Planning; and

WHEREAS, Section 30 -300. – Application. is amended to provide a correct reference to the Planning Department; and

WHEREAS, Section 30 -305. – Application. is amended to provide a correct reference to the Director of Planning and to omit inaccurate application procedur es for time extensions for tentative parcel map approvals; and

WHEREAS, Section 30-301. – Hearing. is amended to provide a correct reference to the Planning Department and Director of Planning; and

WHEREAS, Section 30-302. – Appeal. is amended to provide a correct reference to the Planning Department; and

WHEREAS, Section 30-304. – Authority. is amended to authorize the Director of Planning to approve a time extension for the approval of a tentative parcel map; and

WHEREAS, Section 30 -306. – Noticing. is omitted as standards included are obsolete; and

WHEREAS, Section 30 -307. – Hearing. is omitted as standards included are obsolete; and

WHEREAS, Section 30 -308. – Appeal. is omitted as standards included are obsolete; and

WHEREAS, Section 30 -311. – Application. is amended to provide a correct reference to the Director of Planning and to omit inaccurate application procedures for time extensions for tentative tract map approvals; and

79 Ordinance No. 1961

WHEREAS, Section 30 -312. – Noticing. is omitted as standards included are obsolete; and

WHEREAS, Section 30 -313. – Hearing. is omitted as standards included are obsolete; and

WHEREAS, Section 30 -315. – Purpose. is omitted as standards included are obsolete; and

WHEREAS, Section 30 -316. – Authority. is omitted as standards included are obsolete; and

WHEREAS, Section 30 -317. – Application. is omitted as standards included are obsolete; and

WHEREAS, Section 30 -318. – Noticing. is omitted as standards included are obsolete; and

WHEREAS, Section 30 -319. – Hearing. is omitted as standards included are obsolete; and

WHEREAS, Section 30 -320. – Appeal. is omitted as standards included are obsolete; and

WHEREAS, Section 30 -321. – Time limitation. is omitted as standards include d are obsolete; and

WHEREAS, Section 30-326. – Development Regulations. is amended to modify the requirements for developments utilizing a Minor Planned Unit Development (PUD); and

WHEREAS, Section 30-336. – Purpose. is amended to modify the purpose of the provision of density bonuses; and

WHEREAS, Section 30 -338. – Application. is modified to replace application procedures with updated eligibility criteria for density bonuses; and

WHEREAS, Section 30-358. – Definitions. is amended to add a definition for bars, lounges and nightclubs to the Form-Based Code zoning district; and

WHEREAS, Table 30-359(b) in Section 30-359. – Uses permitted. is amended to include bars, lounges and nightcl ubs in the allowable uses in the Sierra Core, Gateway Core and Mixed-Use Core sub districts of the Form-Based Code zoning district with the approval of minor use permit; and

80 Ordinance No. 1961

WHEREAS, Section 30-370. – Village District. is amended to modify the maximum rear setback in the Village district of the Form Based Code zoning district; and

WHEREAS, Section 30-386 – Shopfront. is amended to modify the requirements for ground floor transparency for the shopfront frontage type in the Form -Based Code zoning district; and

WHEREAS, Table 30 -430 in Section 30 -430. – Permitted Uses in Residential Zoning District. is amended to allow childcare facilities with a maximum of 14 persons by- right in residential zones, as required by State of California law; and

WHEREAS, Section 30-492(C) and 30-492(7) – Conditional use permit and minor use permit regulations. is amended to clarify the requirements for types of alcoholic beverage sales and to restrict the sale of certain single alcohol products; and

WHEREAS, State law requires zoning regulations to be consistent with the general plan and therefore updating the Code would contribute to consistency with the General Plan; and

WHEREAS, the amendments in MCA No. 24-005 are consistent and compatible with the General Plan and are in line with goals, policies and objectives of the City; the Housing Element policies and the Zoning and Development Code; and WHEREAS, the amendments in MCA No. 24-005 are in conformity with appropriate land use practices and will establish appropriate development standards for the land use designations; and
WHEREAS, the amendments in MCA No. 24-005 are attached here to as Exhibit “A” and incorporated herein by reference, will not be detrimenta l to the public health, safety and general welfare, nor will it adversely affect the orderly development of property; and
WHEREAS, the amendments in MCA No. 24-005 will better express the City’s policies and will generally promote good land use planning and regulation; and WHEREAS, on November 19, 2024, the Planning Commission held a public meeting on MCA No. 24-005 where it received evidence and public testimony on the Code amendments and recommended that the Fontana City Council (“City Council”) determine that the amendments are exempt pursuant to the California Environmental Quality Act (CEQA) Guidelines Sections 15060(c), 15061(B)(3) (the common-sense exemption), and Sections No. 3.01, 3.22, and 10.59 of the 2019 Local Guidelines for Implementing CEQA. in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be 81 Ordinance No. 1961

with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA; and WHEREAS, the Planning Commission carefully considered all evidence and testimony presented at its public hearing on November 19, 2024 and approved Resolution No. 2024-058 to recommend that the City Council approve the modifications to the Zoning and Development Code; and
WHEREAS, on December 10, 2024, the City Council held a public hearing on MCA No. 24-005 where City Council received evidence and public testimony pertaining to the Zoning and Development Code amendments and documentation from the Planning Commission’s public hearing on November 19, 2024; and
WHEREAS, the City Council carefully considered all information pertaining to MCA No. 24-005 that was presented at its public hearing on December 10, 2024; and WHEREAS, all other legal prerequisites to the adoption of this Ordinance have occurred.

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

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

Section 2. CEQA. The City Council hereby determines that this project qualifies for an exemption pursuant to the California Environmental Quality Act (CEQA) Guidelines Sections 15060(c), 15061(B)(3) (the common -sense exemption), and 15378 and Sections No. 3.01, 3.22, and 10.59 of the 2019 Local Guidelines for Implementing CEQA, as implementation of this Ordinance is to improve the environment.

Section 3. Development Code Amendment Findings . The City Council hereby makes the following findings for Municipal Code Amendment No. 24-005 accordance with Section 30-40 “Purpose” of the Fontana Zoning and Development Code:

Finding: A Zoning and Development Code may be amended by changing the development standards (text) or zoning designation map boundaries of any zone whenever such an amendment is
deemed necessary to protect or promote the public's health, safety or general welfare o r when modification is viewed as appropriate in the context of generally accepted planning principles, surrounding land uses, and the General Plan.

82 Ordinance No. 1961

Findings of Fact: The Municipal code amendments clarify and streamline the City’s development requirements and processes and facilitate housing and commercial development. As such, the municipal code amendments promote the General Plan goals of adequate housing to meet the needs of all residents in Fontana . Furthermore, the amendments promote a diversified economy.

Section 4. Development Code Amendment Approval. Based on the foregoing, the City Council hereby approves the amendments as set forth in MCA No. 24-005, which is attached hereto as Exhibit “A” and incorporated herein by reference as fully set forth herein.

Section 5. Effective Date/Publication. This Ordinance shall take effect thirty (30) days after the date of the adoption and prior to the expiration of fifteen (15) days from the passage thereof, shall be published by the City Clerk at least once in the Fontana Herald News, a local newspaper of the general circulation, published and circulated in the City of Fontana, and henceforth and thereafter the same shall be in full force and effect.

Section 6. Custodian of Records. The documents and materials that constitute the record of proceedings on which this Ordinance is based are located at the City Clerk’s office located at 8353 Sierra Avenue, Fontana, CA 92335. The custodian or records is the City Clerk.

Section 7. Certification. The City Clerk of the City Council shall certify to the adoption of this Ordinance.

Section 8. Severability. If any provision of this Ordinance 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 Ordinance that can be given effect without the invalid provision or application.

APPROVED AND ADOPTED this 28th day of January, 2025.

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 10th day 83 Ordinance No. 1961

of December 2024, and was finally passed and adopted not less than five days thereafter on the 28th day of January 2025, 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

84 “EXHIBIT A”

AMENDMENT TO FONTANA MUNICIPAL CODE CHAPTER 30
(*Additions shown in underline, deletions shown in strikeout)

Sec. 30-118. – Application

An application for a design review shall be filed with the Planning Division Department in a manner prescribed by the Director of Community Development Planning, including, but not limited to, plans and elevations. Further, any improvements which are depicted and approved as part of the design review on any colored rendering, elevation, or drawing which is presented in conjunction with a development application, shall be installed pursuant to the approved plans.

Sec. 30-124. – Time limitations.

Each design review approval granted under this article shall become null and void two years after the date of approval, unless:

(1) The appropriate permits have been obtained and construction, defined permit obtainment, commencement of construction of the primary building on site and successful completion of the first Building and Safety Division inspection has commenced within the two years period.

(2) A vesting tentative tract or parcel map is approved concurrently with the Design Review item. In such cases, the Des ign Review approval period shall be valid pursuant to the time limits prescribed by Division No. 11 21, of this article herein.

(3) Any valid design review in effect at the date of adoption of this section shall remain valid for a period of two years from the date of that design review approval. A one- time two-year extension may be granted by the Director of Planning provided there are no changes to the originally approved site plan and elevations. An extension request with any proposed change to the site plan or elevations shall require Planning Commission approval.

Sec. 30-127. – Application

An application for a design review , amendment shall be filed with the Planning Division Department in a manner prescribed by the Director of Community Development Planning, including, but not limited to, plans and elevations. Further, any improvements which are depicted and approved as part of the design review, amendment on any colored rendering, elevation, or drawing which is presented in conjunction with a develo pment application, shall be installed pursuant to the approved plans.

Sec. 30-133. – Time limitations.
85 Each design review , amendment approval granted under this article shall become null and void two years after the date of approval, unless:
(1) The appropriate permits have been obtained and construction, defined permit obtainment, commencement of construction of the primary building on site and successful completion of the first Building and Safety Division inspection has commenced within the two years period.

(2) A vesting tentative tract or parcel map is approved concurrently with the Design Review item. In such cases, the Design Review approval period shall be valid pursuant to the time limits prescribed by Division No. 11 21, of this article herein.

(3) Any valid design review, amendment in effect at the date of adoption of this section shall remain valid for a period of two years from the date of that design review approval. A one -time two -year extension may be granted by the Director of Planning provided there are no changes to the originally approved site plan and elevations. An extension request with any proposed change to the site plan or elevations shall require Planning Commission approval.

Sec. 30-138. – Application.

An application for a design review, modification shall be filed with the Planning Division Department in a manner prescribed by the Director of Community Development Planning, including, but not limited to, plans and elevations. Further, any improvements which are depicted and approved as part of the design review, modification on any colored rendering, elevation, or drawing which is presented in conjunction with a development application, shall be installed pursuant to the approved plans.

Sec. 30-154. – Time Limitations.

Any conditional use permit granted pursuant to the provisions of this division is conditional upon the permittee proceeding with a good faith intent to commence upon the proposed use within two years months after the effective date of the approval. No permittee shall obtain any right solely by reason of such conditional use permit issuance, unless and until such good faith intent to commence upon the proposed use is evidenced.

Evidence of a good faith intent to commence upon the proposed use shall consist solely of the following, as applicable:

(1) For a conditional use permit for which no other entitlements or permits are required, actual use of the subject site for the use that is authorized by the conditional use permit has commenced within such time period.

(2) In addition, if a tentative tract map, vesting tentative tract map, or parcel map is approved concurrently with the conditional use permit item, the final map has been recorded within such time period. 86 (3) In addition, for a conditional use permit for which a building permit is required to comply with any condition of the conditional use permit, all appropriate building permits have been obtained and construction (defined as permit obtainment, commencement of construction of the primary building on -site, and s uccessful completion of the first Building and Safety Division inspection) has commenced within such time period.
(4) An extension of up to two years beyond the initial time period provided in subparagraph (a) may be granted by the Director of Planning upon a showing by the applicant of unavoidable delay not caused by the applicant. An applicant for an extension of this time limit must submit a written request to the Planning Department for a time extension 30 60 days prior to the original time limit expiring.

Appeals of the Director of Planning's decision shall be made to the Planning Commission as set forth in Division No. 5, of this article herein.

Sec. 30-209. – Noticing.

Notice of hearings for minor use permit modification an administrative variance shall be as set forth in Division 4, of this article herein.

Sec. 30-212. Time limitations.

Each administrative variance granted under the provisions of this article shall become null and void two years after the date of the action approving the administrative variance unless:

(1) The construction authorized by the administrative variance or permit has been commenced within two years after the granting of the administrative variance and diligently advanced to completion; or

(2) The occupancy of land or buildings authorized by the administrative variance has taken place within two years after the granting of the administrative variance; or

(3) The decision approving an administrative variance contains in its findings and conditions specific authority for extending the time limit defined; or

(4) The Community Development Director Director of Planning finds that circumstances beyond the control of the applicant have caused delays which do not permit compliance with the time limits established, in which case a one-time two-year time extension may be granted by the Director of Planning. 87 Sec. 30-222. Time limitation.

Each variance, major granted under the provisions of this article shall become null and void two years after the date of the action approving the variance, major unless:

(1) The construction authorized by the variance, major or permit has been commenced within two years after the granting of the variance, major and diligently advanced to completion; or

(2) The occupancy of land or buildings authorized by the variance, major has taken place within two years after the granting of the variance, major; or

(3) The decision approving a variance, major contains in its findings and conditions specific authority for extending the time limit defined; or

(4) The Planning Commission Director of Planning finds that circumstances beyond the control of the applicant have caused delays which do not permit compliance with the time limits established, in which case a one-time two-year time extension may be granted by the Director of Planning.

Sec. 30-12. List of definitions.
…
Food Truck means an operational licensed motorized vehicle, or a trailer that is hauled by an operational licensed motorized vehicle, that has been converted for the express purpose of storage and sale of food. Food trucks may, but are not required to, include facilities and equipment for food preparation.

Food Truck Temporary Use Permit means an annual permit that allows one food truck vendor to prepare and sell food within an approved food truck at an approved site. …
Impound means to seize or take custody of a vehicle of any kind, equipment, food, utensils, goods, flowers, toys, furniture, or merchandise (collectively “Items) because of a violation of any applicable law or regulation.
…
Lunch Truck means a food truck that provides service only to employees of legally established industrial businesses and active construction site, visits multiple sites per day and is typically not parked at any one location for longer than 30 minutes. …

(Remaining text of Sec. 30-12 will remain unmodified)
Sec. 30-256. - Types of temporary use applications and conditions.

A temporary use permit shall be required for the following activities and shall be subject to conditions established herein and any other additional conditions as m ay be 88 prescribed by the Director of Planning Community Development. All such uses shall be subject to the sign regulations within Chapter 3 and zoning regulations within Chapter 30 of the Municipal Code.

(1) Outdoor display of merchandise/parking lot and pri vate sidewalk sales for businesses located within a commercially designated property are limited to six display periods per calendar year. Industrial designated parcels used for wholesale/retail are permitted up to a total of six such outdoor displays per parcel per calendar year. The display periods may run consecutively or be distributed throughout the year. Each display period shall be a continuous period of days not to exceed seven days in length. The temporary use permit shall be subject to the following conditions:

a. The display of merchandise outside of a building shall be permitted only during the hours of operation of the store. All goods and merchandise shall be placed inside of the building following the close of the day's business, except as otherwise approved in writing by the Director of Planning Community Development.

b. No merchandise or goods shall be placed upon or permitted to project into any street, public sidewalk, or public right -of-way, nor restrict or interfere with handicapped parking or access to the commercial establishment(s) on site. The temporary use permit may allow the temporary occupation of on -site private sidewalks, parking stalls and drive aisles, however adequate drive aisles and on-site circulation shall be maintained at a ll times for safe and functional ingress and egress, handicapped access to handicapped parking spaces, and emergency equipment access. Tent sale area shall be physically delineated between pedestrian access and vehicular access ways.

c. Tents, canopies, awnings, covers or other temporary covering devices may be approved by the Director of Planning Community Development on a case-by- case basis only in conjunction with the outdoor display of merchandise/parking lot or private sidewalk sales . If a tent, canopy, awning, or other temporary covering device is approved, prior to its use or installation the applicant shall obtain a permit for said device from the Building Official and/or Fire Marshal.

Said device shall be constructed and installed to comply with all safety requirements.

d. This section shall not be construed to permit the permanent or temporary storage of goods or equipment when otherwise prohibited by other provisions in this chapter.

(2) Outdoor art and craft shows and exhibits subj ect to not more than 15 days of operation or exhibition in any 90-day period.

89 (3) Seasonal retail sale of agricultural products limited to periods of 90 days in a calendar year and when parking and access is provided to the satisfaction of the Director of Planning Community Development.

• A minimum of ten on-site parking spaces shall be provided with provisions for controlled ingress and egress to the satisfaction of the Director of Planning Community Development.

(4) Religious, patriotic, historic, or other similar displays or exhibits within yards, parking areas, or landscaped areas, subject to not more than 15 days of display in any 90-day period for each exhibit.

(5) Christmas Trees or pumpkin and fireworks, and seasonal sales lots subject to the following guidelines and conditions:

a. All such uses shall be limited to 30 days of operation per calendar year.

b. All lighting shall be directed away from and shielded from adjacent residential areas.

c. Adequate provisions for traffic circulation, off -street parking, and pedestrian safety shall be provided to the satisfaction of the Director of Planning Community Development.

(6) Circuses, carnivals, rodeos, pony riding, special event tents, or similar trav eling amusement enterprises are subject to the following guidelines and conditions:

a. All such uses shall be limited to not more than 15 days, or more than three weekends, of operation in any 180 -day period. To exceed this time limitation shall require the review and approval of a conditional use permit as prescribed in Division 12 of this article herein.

b. All such activities shall have a minimum setback of 100 feet from any residential area. This may be waived by the Director of Planning Community Development if no adverse impacts result.

c. Adequate provisions for traffic circulation, off -street parking, and pedestrian safety shall be provided to the satisfaction of the Director of Planning Community Development.

d. Restrooms shall be provided onsite.

e. Security personnel may be required. The Police Department shall determine the level and type of security required.

90 f. Special, designated parking accommodating for amusement enterprise workers and support vehicles shall be provided.

g. Noise attenuation for gen erators and carnival rides shall be provided to the satisfaction of the Director of Planning Community Development.

h. The applicant shall be required to submit plans for approval of tents and site plan by the Building Official and/or Fire Marshal 90 day s prior to the special event being held. The tent must meet all Uniform Building Codes and applicable City codes.

i. Approval from the Police Department (PD) is required; moreover, finger printing through PD may be necessary.

(7) Model homes may be used as offices solely for the first sale of homes within a recorded tract subject to the following conditions:

a. The sales office may be located in a garage, trailer, or dwelling.

b. Approval shall be for a two-year period; at which time the sales office use shall be terminated and the structure restored back to its original condition.

Extensions may be granted by the Director of Planning Community Development in one-year increments up to a maximum of four years or until 90 percent of the development is sold; whichever is less.

c. A cash deposit shall be submitted to the City of Fontana, in an amount to be set by Council resolution, to ensure the restoration of removal of the structure.

d. The sales office is to be used only for transactions involving the sale, rent, or lease of lots and/or structures within the tract in which the sales office is located, contiguous tracts, or a planned community. Notwithstanding the above, the Director of Planning Community Development may consider off -site model home sales offices subject to the granting of a minor use permit per Division 13 of this article herein. Where a legal, previously approved minor use permit exists, the minor use permit may be revised to incorporate other recorded tracts as needed.

e. Failure to terminate sales office and restore structure or failure to apply for an extension on or before the expiration date will result in forfeiture of the cash deposit, a halt in further construction or inspection activity on the project site, and enforcement action to ensure restoration of structure.

f. Street improvements and temporary parking at a rate of two spaces per model shall be completed to the satisfaction of the City Engineer and Director of Planning Community Development prior to commencement of sales activities or the display of model homes. The parking spaces shall be located within an 91 off-street facility, except on -street parking may be permitted subject to th e following conditions:

1. The sales office, models, and on -street parking spaces shall be located at the end of a cul -de-sac street and coordinated with construction phasing such that there are no resident homeowners living in homes located adjacent to the gated, secured area of the street.

2. The parking stalls shall be adequately striped and shall conform to City standards.

3. Parking shall be permitted only within and on the project site. Parking along adjacent or perimeter streets (public or private) shall not be used to satisfy the model home sale parking requirement.

4. Temporary landscaping, including minimum 48 -inch box tre es, shall be provided within the on-street parking area.

g. All fences proposed in conjunction with the model homes and sales office shall be located outside of the public right -of-way, except where approved by the Director of Planning Community Development and City Engineer for security.

h. Use of signs shall require submission of a sign permit application for review and approval by the Director of Planning Community Development.

(8) Trailer coaches or mobile homes on active construction sites for use as a construction office or temporary living quarters for security personnel. The following restrictions shall apply:

a. The Director of Planning Community Development may approve a temporary trailer for the duration of the construction project or for a specified p eriod, but in no event for more than two years. If exceptional circumstances exist, a one year extension may be granted, provided that the building permit for the first permanent dwelling or structure on the same site has also been extended.

b. Installation of trailer coaches may occur only after a valid building permit has been issued by the Planning Community Development Department.

c. Trailer coaches permitted pursuant to this section shall not exceed a maximum gross square footage of 650 square feet in size.

d. The trailer coach must have a valid California vehicle license and shall provide evidence of State Division of Housing approval as prescribed in the Health and Safety Code of the State of California. A recreational vehicle being defined as a motor ho me, travel trailer, truck camper or camping trailer, with or without motive power, shall not be permitted pursuant to this section. 92 e. The temporary trailer coach installation must meet all requirements and regulations of the County Department of Environmental Health Services and the Planning Community Development Department.

f. Any permit issued pursuant to this section in conjunction wit h a construction project shall become invalid upon cancellation or completion of the building permit for which this use has been approved, or the expiration of the time for which the approval has been granted.

(9) Tent, canopies, awnings and easy -ups associated with any retail sales event are prohibited unless engineering plans signed by a certified engineer demonstrate the tent, canopy, awning or easy -up meets all Building and Safety Division requirements.

(10) Temporary storage containers for seasonal sales may be approved from October 31, until January 31 and not to exceed 90 days. Approval of a site plan exhibit shall be approved demonstrating adequate parking is provided.

(11) Food trucks in accordance with Sec. 30-256(a).

(11 12) Other uses and activities th at may be needed on a temporary basis or similar to subsections (1) through ( 10 9) above as deemed appropriate by the Director of Planning Community Development.

Sec. 30-256(a). Food Truck Temporary Use Permit
(1) Permit Required. Except as otherwise provided by the City Code or state or federal law, a temporary use permit and business license is required for all food trucks, as defined herein, that operate within city limits. A food truck that operates without the required permit is subject to closure at any time. It shall be the responsibility of the applicant and/or food truck vendor to have the permit approval letter and business license on-site at all times during operation in city limits.

(2) Exemptions.

a. Properly licensed Lunch Trucks servicing employees of legally established industrial businesses and employees of active construction sites. A business license is required for Lunch Trucks prior to operation.

b. Food trucks hired to cater for one -day private parties held on private property. A business license is required for catering businesses prior to operation.

(3) Time of Application. An application for a food truck temporary use permit must be submitted to the Planning Department in a complete form at least 60 calendar days in advance of the anticipated commencement date of the operation. 93 (4) Term of permit. Temporary use permits under this section shall automatically expire one year from the date of issuance unless an earlier expiration date is noted on the permit. Renewal applications must be submitted 30 calendar days prior to expiration of the permit.

(5) Operational Requirements. Food trucks operating under this section shall meet all the following requirements:

a. Shall operate on legally compliant properti es with industrial land use designations only and shall have a solid paved parking area adequate to accommodate the food truck, customer parking and vehicle circulation.

b. Shall not permit parking on the street or in the public right-of-way.

c. Shall not operate within 50 feet of a fire hydrant.

d. Shall not operate within any public driveway, drive aisle, or vehicular entrance or exit.

e. Shall not vend on any public street, public right-of-way, or public park.

f. Shall not store, park or leave any equipment overnight on any public street, public right-of-way, or park.

g. Shall vend only between the hours of 10:00 am and 9:00 pm.

h. Shall not display or set up tables and chairs.

i. Shall provide a trash receptacle for customer use.

j. Shall ensure the area is free from trash and debris at all times.

k. Shall not allow any items relating to the operation of the business to be placed anywhere other than in, on, or under the food truck (except for trash receptacles).

l. Shall not solicit or conduct business with persons in or on motor vehicles.

m. Shall not sell anything other than that which they are licensed to vend.

n. Shall not utilize sound amplification equipment, music, or live entertainment.

o. Shall not utilize any form of directional signage.

p. Shall operate in compliance with the Americans with Disabilities Act (ADA). 94 (6) Application Requirements. All food truck vendors shall obtain a food truck Temporary Use Permit. Application materials shall include:

a. Detailed site plan (exhibit of proposed location) including the number o f existing on-site parking spaces, location of parking spaces designated for the food truck(s), location of food truck(s), and the location of trash receptacles.

b. Notarized affidavit from the property owner(s) acknowledging the applicant’s request and granting the applicant permission to park and vend at the location. If more than one food truck is proposed to operate at the same site, each food truck vendor shall submit a separate application and will be subject to the standards referenced in Section 30-256(a).

c. Proof of legal vehicle registration.

d. Business description to include hours of operation, items to be sold, number of employees, description of food truck including photos, number of parking spaces existing on the proposed site.

e. A copy of the County of San Bernardino Environmental Health Services Health Permit.

f. Business License. Upon obtaining the food truck temporary use permit, the applicant shall obtain a business license.

g. Cleanup and waste disposal plan to the City of Fontana, Environmen tal Code Compliance Department with the following information:

i. Grey water disposal site

ii. Fats, oils, and grease (FOG) disposal container

iii. Fats, oils, and grease (FOG) disposal site

iv. Trailer washdown site

v. Trash, recycle, and organic receptacles

vi. Rubber mat to be placed underneath serving area

(7) Suspension; Recission.
a. A food truck temporary use permit issued under this article may be temporarily suspended or permanently rescinded, at the Director of Planning’s discretion, for any of the following causes: fra ud or 95 misrepresentation in the course of vending, f raud or misrepresentation in the application for the permit, vending in violation of any one or more of the provisions of this article, vending in a manner that creates a public nuisance or constitutes a d anger to the public, or failure to pay the applicable business license tax.

b. Notice of the suspension or rescission of a food truck permit issued under this chapter shall be mailed, postage prepaid, to the holder of the food truck vendor permit at his or her last known address and the property owners on whose property the truck has been operating.

c. No person whose food truck permit has been rescinded pursuant to this article shall be issued a food truck permit for a period of two years following the date that revocation becomes final.

Sec. 30-257. Approval.

Upon receipt of a complete application for a temporary use permit Director's determination, the project will be reviewed by planning staff for the Director's Director of Planning’s approval.

Sec. 30-258. - Appeal.

The decision of the Director of Community Development Planning shall be final unless an appeal is filed. An appeal could be made to the Planning Commission as set forth in Division 4, herein.

Sec. 30-282. – Application.

An application for a tentative parcel map shall be filed with the Planning Division Department in a manner prescribed by the Director of Community Development Planning, including, but not limited to, plans.

Sec. 30-284. - Findings for approval.

The Director of Community Development Planning or designee shall make the findings identified in Chapter 26 before granting approval of a tentative parcel map application.

Sec. 30-285. - Noticing.

Notice of hearings for tentative parcel map modification shall be as set forth in Division 4, of this article herein.

Sec. 30-286. - Hearing.

96 Upon receipt of a complete application for a time extension for tentative parcel map, a time and place for the hearing before the Director of Community Development Planning shall be set.

Sec. 30-287. – Appeal.

The decision of the Director of Community Development Planning shall be final unless an appeal is filed. An appeal could be made to the Planning Commission as set forth in Division 5, of this article herein.

Sec. 30-288. - Time limitations.

Each tentative tract parcel map approval granted under this article shall become null and void pursuant to the time limitation identified in Chapter 26.

Sec. 30-290. - Authority.

The Planning Commission is authorized to appr ove or deny applications for design review tentative tract maps , and to impose reasonable conditions upon such approval.

Conditions may include, but shall not be limited to, requirements for special yards, open spaces, buffers, fences, walls, and screening ; requirements for installation and maintenance of landscaping and erosion control measures; requirements for street improvements and dedications, regulation of vehicular ingress, egress, and traffic circulation; regulation of signs; regulation of hours or other characteristics of operation; requirements for maintenance of landscaping and other improvements; establishment of development schedules or time limits for performance or completion.

Sec. 30-291. - Application.

An application for a design review tentative tract map shall be filed with the Planning Division in a manner prescribed by the Director of Community Development Planning, including, but not limited to, plans and elevations. Further, any improvements which are depicted and approved as part of the design review on any colored rendering, elevation, or drawing which is presented in conjunction with a development application, shall be installed pursuant to the approved plans.

Sec. 30-295. – Hearing.

Upon receipt of a complete application for time extension for project tentative tract map a time and place for the hearing before the Director of Community Development Planning Commission shall be set.

Sec. 30-299. - Authority.

97 The Director of Community Development Planning or designee is authorized to approve or deny lot line adjustment applications.

Sec. 30-300. - Application.

Applications for a lot line adjustment shall be filed with the Planning Division Department upon such forms and accompanied by such data, information and fees as may be required by the Planning Division Department, to ensure a full presentation of the facts.

Sec. 30-301. – Approval.

Upon receipt of a complete application for a Director’s determination lot line adjustment, the project will be reviewed by planning Planning staff for the Director’s approval.

Sec. 30-302. – Appeal.

The decision of the Director of Community Development Planning shall be final unless an appeal is filed. An appeal could be made to the Planning Commission as set forth in Division 4, herein.

Sec. 30-304. – Authority.

The Director of Community Development Planning or designee is authorized to approve or deny time extension for tentative parcel maps applications.

Sec. 30-305. – Application.

Applications for a time extension for t entative parcel maps shall be filed with the Planning Division Department upon such forms and accompanied by such data, information, and fees as may be required by the Planning Division Department, to ensure a full presentation of the facts. No application shall be considered by the Planning Commission until the application is determined to be complete and all required fees have been paid to the City.

Sec. 30-306. – Noticing. Reserved.

Notice of hearings for minor use permit modification shall be as set forth in Division 4, of this article herein.

Sec. 30-307. – Hearing. Reserved.

Notice of hearings for minor use permit modification shall be as set forth in Division 4, of this article herein.

Sec. 30-308. – Appeal. Reserved.

98 The decision of the Direct or of Community Development shall be final unless an appeal is filed. An appeal could be made to the Planning Commission as set forth in Division 4, herein.

Sec. 30-311. – Application.

Applications for time extension for tentative tract maps shall be filed with the Planning Division Department upon such forms and accompanied by such data, information, and fees as may be required by the Planning Division Department, to ensure a full prese ntation of the facts. No application shall be considered by the Planning Commission until the application is determined to be complete and all required fees have been paid to the City.

Sec. 30-312. – Noticing.

Notice of hearings for minor use permit mod ification tentative tract map time extension shall be as set forth in Division 4, of this article herein.

Sec. 30-313. – Hearing.

Upon receipt of a complete application for a time extension for tentative tract map, a time and place for the hearing before the Director of Community Development Planning Commission shall be set.

Subdivision III. - Time Extension—Project
Sec. 30-315. - Purpose. Reserved.

The purpose and intent of a time extension is intended to provide the applicant additional time to complete a previously approved project required do to unforeseen circumstances.

Sec. 30-316. - Authority. Reserved.

The Director of Community Development or designee is authorized to approve or deny time extension for project applications.

Sec. 30-317. - Application. Reserved.

Applications for time extension for projects shall be filed with the Planning Division upon such forms and accompanied by such da ta, information, and fees as may be required by the Planning Division, to ensure a full presentation of the facts. No application shall be considered by the Planning Commission until the application is determined to be complete and all required fees have b een paid to the City.

Sec. 30-318. - Noticing. Reserved.

99 Notice of hearings for time extension for projects shall be as set forth in Division 5, of this article herein.

Sec. 30-319. - Hearing. Reserved.

Upon receipt of a complete application for time extension for project a time and place for the hearing before the Director of Community Development shall be set.

Sec. 30-320. - Appeal. Reserved.

The decision of the Director of Community Development shall be final unless an appeal is filed. An appeal could be made to the Planning Commission as set forth in Division 4, herein.

Sec. 30-321. - Time limitation. Reserved.

Each time extension for project granted under the provisions of this article shall become null and void two years after the date of the action approving the time extension.

Sec. 30-326. Development regulations.
…
(2) Minor planned unit development. Where a conflict exists between the standards in this section and those pertaining to the underlying zoning district, this section shall t ake precedence.

a. Area of project. Minor planned unit development projects shall be located on sites that meet the following criteria:

1. Located within one of the following zoning districts: the Medium Density Residential (R-2) zoning district.
i. Medium density residential (R-2) zoning districts, and

2. Located where at least 80 percent of the land within a 300-foot radius of the site has been developed, and where water, sewer, streets, schools and fire protection are provided.

3. Not larger than three acres in size.

b. Maximum density. The dwelling unit density shall not exceed a number of units as set forth in the zoning district in which the project is located, except in cases of utilizing units from any allowable density bonus program.

c. Minimum area and dimensions of lot.

1. The lot area, width and depth of individually owned parcels of land within the development shall be established as part of the minor planned unit development approval, with a maximum deviation of 20 percent from the requirements of the applicable zoning district unless otherwise approved by the Director of Planning., based on the following factors:
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1. Topography of the land.

2. The ground area covered by individual dwellings and accessory structures.

3. Location of co mmon open space, if provided, and its relationship to the dwelling to be served.

4. Aesthetic relationships between individual units and open spaces.

2. The lot width and depth shall meet the purpose of the Minor PUD and be approved by the Director of P lanning as part of the minor planned unit development approval. The Director of Planning may, at his/her discretion, forward applications for deviations in excess of 20% to the Planning Commission for decision.

d. Yards and Setbacks. Front, side and rear yards setbacks shall be permitted to deviate from the requirements of the underlying zoning district . a maximum of 20 percent from the requirements of the applicable zoning district. Front, side, and rear yards shall be established as part of the minor plan ned unit development approval., However, the front, side and rear setbacks shall not be less than the following:

1. At no time shall the front setback be less than 15 feet between the front of the structure and the front property line.

2. At no time shall the rear setback be less than 10 feet between the rear of the structure and the rear property line.

3. At no time shall the side setback be less than 4 feet between the sides of the structure and the side property lines.

e. Lot coverage. Lot coverage shall be established as part of the minor planned unit development approval, with a maximum deviation of 20 percent from any applicable lot coverage of the zoning district.

f. Distance between buildings. The distance between any two buildi ngs within the project shall be established as part of the minor planned unit development approval but shall not be less than eight feet between the two structures.

g. Maximum building height. The maximum building height permitted in the zoning district shall apply.

h. Required on-site parking.

1. The number of required parking spaces shall conform to provisions of Article XI.

2. The location and arrangement of parking shall be determined as part of the minor planned unit development approval.
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…
r. Private open space. A minimum of 200 square feet of private open space shall be provided for each residential unit. Private open space shall be accessed directly from the ground floor of the dwelling unit and shall be outside of the minimum front setback.
[Remaining text of Section 30-326 will remain, unmodified]

Sec. 30-336 – Purpose.

The purpose and intent of density bonus is to encourage the development of affordable housing in accordance with state law.

The purpose and intent of this section is to encourage the development of affordable residential units for a range of income levels within the City with the provision of incentives or concessions. In offering these incentives or concessions, this chapter is intended to implement the requirements of State law and the goals and policies of the City's general plan housing element.

Sec. 30-338.-Application. - Eligibility for bonus and incentives or concessions.

Application for density bonus shall be made in writing on forms provided for this purpose and shall set forth in detail information as may be required and shall be accompanied by the required filing fee.

To be eligible for a density bonus and/or other incentives or concessions as provided by this chapter, a proposed residential development project shall:

(a) Consist of five (5) or more dwelling units; and

(b) Provide for the construction of one or more of the following within the development:

(1) A minimum of five percent (5%) of the total units of a housing development for very low -income households, as defined in Health and Safety Code section 50105; or

(2) A minimum of ten percent (10%) of the total units of a housing development for lower income households, as defined in Health and Safety Code section 50079.5; or

(3) A minimum of ten percent (10%) of the total dwelling units in a condominium project or in a planned development as defined in Civil Code subsection 1351(f) and (k), respectively, for persons and families of moderate income, as defined in Health and Safety Code section 50093, provided that all units in the development are offered to the public for purchase; or

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(4) A minimum of twenty percent (20%) of the total units for lower income students in a student housing development that meets the following requirements:

i. All units in the student housing development shall be used exclusively for undergraduate, graduate, or professional students enrolled full time at an institution of higher education accredited by the Western Association of Schools and Colleges or the Accrediting Commission for Community and Junior Colleges. In order to be eligible under this subclause, the developer shall, as a condition of receiving a certificate of occupancy, provide evidence to the city, county, or city and county that the developer has entered into an operating agreement or master lease with one or more institutions of higher education for the institution or institutions to occupy all units of the student housing development with students from that institution or institutions. An operati ng agreement or master lease entered into pursuant to this subclause is not violated or breached if, in any subsequent year, there are insufficient students enrolled in an institution of higher education to fill all units in the student housing development.

ii. The applicable 20 -percent units shall be used for lower income students.

iii. The rent provided in the applicable units of the development for lower income students shall be calculated at 30 percent of 65 percent of the area median income for a single-room occupancy unit type.

iv. The development shall provide priority for the applicable affordable units for lower income students experiencing homelessness. A homeless service provider, as defined in paragraph (3) of subdivision (e) of Section 103577 of the Health and Safety Code, or institution of higher education that has knowledge of a person’s homeless status may verify a person’s status as homeless for purposes of this subclause.

(5) Ten percent (10%) of the total units of a housing development for transitional foster youth, as defined in Section 66025.9 of the Education Code, disabled veterans, as defined in Section 18541, or homeless persons, as defined in the federal McKinney -Vento Homeless Assistance Act (42 U.S.C. Sec. 11301 et seq.). The units described in this subparagraph are subject to a recorded affordability restriction of 55 years and shall be provided at the same affordability level as very low -income units; or

103

(6) One hundred percent (100%) of all units in the development, including total units and density bonus units, but exclusive of a manager’s unit or units, are for lower income households, as defined by Section 50079.5 of the Health and Safety Code, except that up to 20 percent of the units in the development, including total units and density bonus units, may be for moderate-income households, as defined in Section 50053 of the Health and Safety Code; or

(7) A senior citizen housing development, as defined in Sections 51.3 and

51.12 of the Civil Code, or a mobile home park that limits residency based on age requirements for housing for older persons pursuant to Section 798.76 or 799.5 of the Civil Code.

(c) A density bonus and any associated incentives and concessions provided for the provision of affordable units and a density bonus utilizing units from t he No Net Loss Program shall be mutually exclusive.

Sec. 30-358. - List of definitions.

***
Banquet hall means a room or building for the purpose of hosting a party, banquet, wedding or other reception, or another social event.

Bars, lounges, nightclubs, means an establishment where people gather to drink (alcohol). The establishment shall operate in compliance with any on-site consumption of alcoholic beverages, as licensed by the Alcoholic Beverage Control, and may offer facilities for dancing or performing floor shows.

Bed and breakfast establishment means one or more buildings containing a dwelling unit and not more than six guest rooms, where only breakfast or similar early morning meal is provided to registered guests and the price of the meal is included in the price of the accommodations. The relationship between the operator of the establishment and the occupants of the guest rooms must be that of innkeeper and gusts. Guest rooms are not to be rented for a period of less than 18 hours at a time. ***

[Remaining text of Section 30-358 will remain, unmodified]

Table No. 30-359.B.-Land Uses
Civi
c
Cor
e
Sierr
a
Core
Gatewa
y Core
Mixed
-Use
Core
Multi-
Famil
y
Core
Neighborhoo
d Core
***
Alcoholic sales exclusively
for off-site consumption
— — M M — —
104

Bar, Lounge, or Nightclub
(with live entertainment)
— M M M — —
Bar, Lounge, or Nightclub
(without live entertainment)
— M M M — —
On-site sales in connection
w/restaurant
M M M M — —
Restaurant and café with
entertainment and/or
dancing
M M M — — —
Manufacturing, including
winery or micro -brewery
with tasting room and no
restaurant
M M M M — —
Micro-breweries in
connection with restaurant
(Brew Pub)
M M M M — —
Micro-breweries without
tasting room
— — — — — —
***

[Remaining text of Section 30-359.B will remain, unmodified]

Sec. 30-370. – Village district.

The Village district is intended to provide an alternative to conventional subdivision development with a mixture of housing types, neighborhood -service retai l, and open space.

Residential or Mixed-Use Minimum Maximum

2.1 units/acre
24 units/acre
Commercial Floor Area
Ratio (without residential
component)
--- 1.0
Building setback from PL
Front Side/Rear
Min. (ft.) Max. (ft.) Min. (ft.)
i. Front Street 10 25 ---
ii. Side Street 10 20 --- ---
iii. Side (Interior) --- --- 5
iv. Rear Yard --- --- 10

Sec. 30-386. – Shopfront.
…
Size
Ground floor transparency 80% 40% min.
105

…

[Remaining text of Section 30-386 will remain, unmodified]

Sec. 30-430. - Uses permitted.
(a) Uses by zoning district. Table No. 30-430 lists the uses permitted in each of the residential zoning districts. A "P" indicates a use is permitted by right, a "C" indicates the use requires the granting of a conditional use permi t, and " —" means the use is not permitted in that zoning district.

(b) Uses subject to specific requirements. Permitted uses marked with an asterisk "*" indicate that the use is subject to special use regulations in Section 30-432.

Conditional uses are subject to the provisions in Section 30-433.

Table No. 30-430
Permitted Uses in Residential Zoning Districts
Use R-E R-1 R-2 R-3 R-PC
…
B. Other Uses
…
Child care (eight to 14 persons) M P M P M P M P M P
…

[Remaining text of Section 30-430 will remain unmodified]

Sec. 30-492. – Conditional use permit and minor use permit regulations.

All uses marked with a "C" or "M" in Table No. 30 -459, must comply with the conditional use permit or minor use permits procedural requirements outlined in Article II, Divisions 12 and 13 of this chapter. In addition, certain conditional uses must comply with the specific development and operational standards outlined below.

***
(7) Alcoholic beverage sales. Any use that engages in on-site or off-site retail sales of alcoholic beverages and that is required to operate under a State Alcoholic Beverage Control (ABC) license shall be subject to the approval of conditional use permit or minor use permit. A conditional use permit or minor use permi t shall be required for the following actions:

Table No. 30-492.C
Alcoholic Beverage Sales
An application for a new ABC license C
Any change in the type of existing ABC license with existing CUP C Premises-to-premises transfer of an existing ABC license with CUP P Any increase of floor area in an ABC licensed establishment C 106

Any change in operating conditions from what was originally imposed by the City or by ABC, including, but not limited to, any change of hours of operation or entertainment
C
A request to establish live entertainment or dancing in an ABC licensed establishment
C
Any ABC licensed establishment not previously possessing a conditional use permit when there is an ownership change
C

a. Location requirements.

1. In judging requests for alcoholic beverage sales, of particular concern will be the physical relationship and proximity of the proposed use to that of similar uses on the same or surrounding sites; the compatibility of the proposed use with neighboring uses (i.e., schools, parks, religious institutions, hospitals and other similar uses), and that no adverse effect on public health, safety or welfare will be created.

2. A business where a new conditional use permit is requested, other than for a renewal or ownership transfer, for the sale of liquor should be a minimum of 600 feet away from an existing or proposed school, park, religious institution, hospital, youth facility, and other similar uses.

3. The proposed use shall not be incompatible with the adjoining us es as it relates to noise, debris, traffic, storage, design and hours of operation, nor shall it create any adverse effect on public health, safety or welfare.

4. All light standards shall be located so that lighting does not directly shine into adjoining residential properties. Any light pole within the parking area shall have a concrete or similar support base constructed to withstand light vehicle collisions.

5. The establishment shall be operated in such a manner that sound emitted from the premises shall not be audible beyond the boundaries on which it is located.
i. All doors to the building shall remain closed except to allow for the entrance and exit of patrons and employees.
ii. Any such liquor sales use or similar use being established for the first time shall have no entrance or exit located within 100 feet of a residentially zoned or utilized property unless adequate sound attenuation measures have been undertaken or unless the entrance or exit is separated from the residentially zoned property by a public street.

b. Alcohol product sales requirements.

1. The licensee shall not sell single bottles of wine in less than 750 ml. containers. Specialty or dessert wines which are only packaged in 375 milliliter bottles shall be permitted.

2. No distilled spirits shall be sold in bottles or containers smaller than 375 ml.

3. The sale of beer or malt beverages in single size containers of 40 ounces or less is prohibited.
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4. The licensed premise shall not sell individual units of beer or wine from t he manufacturer’s multi-unit packages (three-packs, four-packs, six-packs, etc.).

b. c. In the event the Director of Community Development Planning has determined that a party holding a conditional use permit at a given location is in violation of the conditions of the permit the Planning Commission, through the public hearing process, shall have the authority to terminate the conditional use until such time as the property has been brought into compliance and the applicant establishes that those conditions have been met.
108
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0009 Agenda Date: 1/28/2025
Agenda #: D. Category: Consent Calendar
FROM:

Planning
SUBJECT:

Adoption of Ordinance No. 1963 (Second Reading), Approving Specific Plan Amendment No. 24-002 to Modify Chapter 5.6 The Southwest Industrial Park Specific Plan To Allow Nonconforming Pallet Yards to Expand Operations Within Existing Sites Governed Under the SWIP Specific Plan, Pursuant to The Certified Southwest Industrial Park Specific Plan EIR and Directing Staff To File A Notice of Exemption
RECOMMENDATION:

Second Reading/Adopt Ordinance No. 1963, Approving Specific Plan Amendment No. 24-002 to Modify Chapter 5.6 The Southwest Industrial Park Specific Plan To Allow Nonconforming Pallet Yards to Expand Operations Within Existing Sites Governed Under the SWIP Specific Plan, Pursuant to The Certified Southwest Industrial Park Specific Plan EIR and Directing Staff To File A Notice of Exemption.

COUCIL GOALS:
· Promote economic development by pursuing business attraction, retention, and expansion. · Promote economic development by establishing a quick, consistent development process. · Promote economic development by being business friendly at all levels and striving to constantly improve the city's competitiveness
DISCUSSION:

Ordinance No. 1963 was introduced by a vote of 5-0 at the December 10, 2024, Regular City Council Meeting.

FISCAL IMPACT:

None
MOTION:

Approve staff recommendation.

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109

ORDINANCE NO. 1963

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FONTANA, CALIFORNIA, APPROVING SPECIFIC PLAN AMENDMENT NO. 24- 002 TO MODIFY CHAPTER 5.6 T HE SOUTHWEST INDUSTR IAL PARK

SPECIFIC PLAN TO ALLOW NONCONFORMI NG PALLET YARDS TO

EXPAND OPERATIONS WITHIN EXISTING SITES GOVERNED UNDER

THE SWIP SPECIFIC PLAN, PURSUANT TO T H E C E R T I F I E D

SOUTHWEST INDUSTRIAL PARK SPECIFI PLAN EIR AND DIRECTING STAFF TO FILE A NOTICE OF EXEMPTION.

WHEREAS, pursuant to Article XI, Section 5 of the California Constitution and Government Code Section 37100, the legislative body of a city may pass ordinances not in conflict with the Constitution and laws of the State or the United States; and

WHEREAS, Government Code sections 50022.1 to 50022.10 authorizes a city to codify and recodify its ordinances; and

WHEREAS, pursuant to the California Environmental Quality Act (Pub. Res. Code §§ 21000 et seq.) (“CEQA”), and the State CEQA Guidelines (14 Cal. Code Regs. §§ 15000 et seq.) the City determined that a Program Environmental Impact Report (FEIR) be prepared pursuant to CEQA in order to analyze all potential adverse environmental impacts of the SWIP Specific Plan Update and Annexation Area (SCH No. 2009091089); and

WHEREAS, the City prepared and certified the Final Program EIR (FEIR) on May 8, 2012 for the SWIP Spec ific Plan Update, consisting of comments received during the 45-day public review and comment period on the Draft FEIR, written responses to those comments, and revisions and errata to the Draft FEIR. For the purposes of this Resolution, the “FEIR” shall refer to the Draft FEIR, as revised by the Final FEIR’s errata section, together with the other sections of the Final FEIR; and

WHEREAS, the SWIP Specific Plan Update was approved and adopted by the City of Fontana (City) on May 8, 2012 pursuant to the cer tified FEIR; and WHEREAS, pursuant to CEQA, when taking subsequent discretionary actions in furtherance of a project for which an EIR has been certified, the lead agency is required to review any changed circumstances to determine whether any of the circum stances under Public Resources Code section 21166 and State CEQA Guidelines Section 15162 require additional environmental review; and

WHEREAS, staff evaluated the proposed Ordinance in light of the standards for subsequent environmental review outlined in Public Resources Code section 21166, State CEQA Guidelines section 15162 and City of Fontana’s 2019 Local Guidelines for Implementing CEQA; and

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Ordinance No. 1963

WHEREAS, based on that evaluation, staff concluded that the FEIR fully analyzed and mitigated, where feasible, all potentially significant environmental impacts, if any, that would result from the Ordinance, and therefore, no subsequent EIR or mitigated negative declaration is required; and

WHEREAS, the City of Fontana (“City”) desires to restate without substantive revision, amend and recodify certain ordinances codified in the SWIP; and

WHEREAS, Section 5.6. of SWIP – Nonconforming Structures, Uses, and Lots, is amended to allow the expansions of legal nonconforming pallet yards within existing sites; and

WHEREAS, State law requires zoning regulations and specific plans to be consistent with the General Plan and therefore updating the City of Fontana Municipal Code would contribute to consistency with the City of Fontana General Plan; and

WHEREAS, the amendments in SPA No. 24 -002 are consistent and compatible with the city’s General Plan and are in line with the goals, policies and objectives of the City and the City of Fontana Zoning and Development Code; and WHEREAS, the amendment s in SPA No. 24 -002 will be in conformity with appropriate land use practices and will establish appropriate development standards for pallet yards; and
WHEREAS, on November 19, 2024, the Fontana Planning Commission (“Planning Commission”) held a public meeting on SPA No. 24-002 where they received evidence and public testimony on the amendments and recommended that the Fontana City Council (“City Council”) determine that the amendments do not require review under the California Environmental Quality Act (“CEQA”); and
WHEREAS, the Planning Commission carefully considered all evidence and testimony presented at its public hearing on November 19, 2024 and approved Resolution No. 2024-057 to recommend that the City Council approve the modifications to SWIP; and
WHEREAS, on December 10, 2024, the City Council held a public hearing on SPA No. 24-002 where City Council received evidence and public testimony pertaining to the Specific Plan amendments and documentation from the Planning Commission’s public hearing on November 19, 2024; and
WHEREAS, the City Council carefully considered all information pertaining to SPA No. 24-005 that was presented at its public hearing on December 10, 2024 and based on the information presented, the City Council found that the amendments and project are in conformance with the goals and policies of the General Plan to provide a community that 111
Ordinance No. 1963

is developed with high standards and provides diverse economic and social opportunities for citizens and those who wish to invest in the City; and WHEREAS, the amendments in SPA No. 24-002 are attached hereto as Exhibit “A” and incorporated herein by reference, will not be detrimental to the public health, safety and general welfare, nor will it adversely affect the orderly development of property; and
WHEREAS, all other legal prerequisites to the adoption of this Ordinance have occurred.

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

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

Section 2. CEQA. The City Council has reviewed the Southwest Industrial Park Specific Plan FEIR, any oral or written comments received, and the administrative record prior to making any decision on the Ordinance. The Council finds that the Southwest Industrial Park Specific Plan FEIR contains a complete and accurate reporting of any environmental impacts associated with the Ordinance. The Council further finds pursuant to State CEQA section 15164 and Section 8.06 of the City of Fontana’s 2019 Local Guidelines for Implementing CEQA, the preparation of a subsequent or supplemental EIR is not required. And, having considered the administrative record, the Southwest Industrial Park Specific Plan FEIR and all written and oral evidence presented to the Planning Commission, the Council finds that any environmental impacts of the Ordinance have been addressed within the Southwest Industrial Park Specific Plan FEIR and directed staff to file a Notice of Determination.

Section 3. Development Code Amendment Findings. The Planning Commission hereby makes the following finding for SPA No. 24-002 in accordance with Section 30-67 “Purpose” of the Fontana Zoning and Development Code:

Finding: A Specific Plan may be amended by changing the development standards or zoning designation of any zone whenever such an amendment is deemed necessary to protect or promote the public's health, safety or general welfare or when modification is viewed as app ropriate in the context of generally accepted planning principles, surrounding land uses, and the General Plan.

Findings of Fact: The Southwest Industrial Park Specific Plan was adopted June 12, 2012, and included nine districts. The intent of the distric ts was to regulate truck, trailer, warehouse and industrial uses. The existing 112
Ordinance No. 1963

nonconforming language in chapter 5.6 of the specific plan is outdated, making it difficult to allow for operational and aesthetically desirable expansions of pallet yard operat ions. This Specific Plan Amendment will amend the language to provide for an expansion of operations for existing pallet yards provided the operations are contained to the existing site.

Section 4. Development Code Amendment Approval. Based on the foregoing, the City Council hereby approves SPA No. 24-002, which is attached hereto as Exhibit “A” and incorporated herein by reference as fully set forth herein.

Section 5. Effective Date/Publication. This Ordinance shall take effect thirty (30) days after the date of the adoption and prior to the expiration of fifteen (15) days from the passage thereof, shall be published by the City Clerk at least once in the Fontana Herald News, a local newspaper of the general circulation, publishe d and circulated in the City of Fontana, and henceforth and thereafter the same shall be in full force and effect.

Section 6. Custodian of Records. The documents and materials that constitute the record of proceedings on which this Ordinance is based are located at the City Clerk’s office located at 8353 Sierra Avenue, Fontana, CA 92335. The custodian or records is the City Clerk.

Section 7. Certification. The City Clerk of the City Council shall certify to the adoption of this Ordinance.

Section 8. Severability. If any provision of this Ordinance 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 Ordinance that can be given effect without the invalid provision or application.

APPROVED AND ADOPTED this 28th day of January 2025.

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 10th day of December 2024, and was finally passed and adopted not less than five days thereafter on the 28th day of January 2025, by the following vote to wit:
113
Ordinance No. 1963

AYES:

NOES:

ABSENT:

ABSTAIN:

_________________________________________
City Clerk of the City of Fontana

_________________________________________
Mayor of the City of Fontana

ATTEST:

_________________________________________
City Clerk

114
Ordinance No. 1963

“EXHIBIT A”

AMENDMENT TO FONTANA SOUTHWEST INDUSTRIAL PARK SPECIFIC PLAN CHAPTER 5.0 – IMPLEMENTATION AND ADMINISTRATION
(*Additions shown in underline, deletions shown in strikeout)

5.6 Nonconforming Structures, Uses, and Lots

***

B. Nonconforming Uses

A nonconforming use is one that lawfully existed prior to the effective date of the SWIP, but which is no longer permitted in the land use district in which it is located. The continuance of a nonconforming use is subject to the following:

1. A nonconforming use that is discontinued for a period of one hundred eighty (180) consecutive days or more shall lose its legal nonconforming status, and the continued use of the property shall conform thereafter with the SWIP. Discontinuation shall mean any termination of a use, regardless of intent to resume the use. Payment of a valid business license or business tax certificate shall in and of itself not be considered to be a continuation of the use.

2. A nonconforming use shall not be expanded on any lot or moved in whole or in part to any portion of the lot.

3. If a portion of the property or structure used by a nonconforming use is converted to a conforming use, the portion of the property or structure may not thereafter be used for a nonconforming use.

4. Change of ownership, tenancy, or management of a nonconforming use shall not affect its legal nonconforming status, provided that the use and intensity of use, as determined by the Director of Community Development, does not change or increase.

5 If a structure used by a nonconforming use is damaged, the nonconforming use may continue upon restoration of the structure if the need for repairs or restoration is the result of damage by fire, explosion, act of God, or the public enemy, and provided the repairs are commenced within twenty four (24) months of the event causing the damage to the structure, and the repairs shall be diligently pursued until completion.

6. Nonconforming single-family residential uses shall be subject to the following:

a. Nonconforming single -family residential use may be enlarged by no more than
115
Ordinance No. 1963

twenty five percent (25%) of its legal floor area that existed at the time the single-family residential use became nonconforming, provided the expansion complies with the zoning standards and if there is the addition of one or more bedrooms then parking shall be in compliance with Article XI (On-site parking and loading regulations) of Chapter 30 of the Zoning and Development Code

b. A nonconforming single-family use that is discontinued for a period of one hundred eighty (180) consecutive days or more shall lose its legal nonconforming status, and the continued use of the property shall conform with the SWIP unless the Director of Community Development can make the following findings:

i. The nonconforming single-family use has not been discontinued for more than three hundred sixty five (365) consecutive days.

ii. The nonconforming single-family use will not adversely affect or be materially detrimental to the public health, safety, and welfare.

7. If provision is made for the termination of a use, any use of such land after the termination shall conform to the requirements of this section for the district in which it is located.

8. Pallet Yards. Modifications and additions to legal nonconforming pallet yards are permitted as described below.

a. Legal nonconforming pallet yards may be approved for expansions and additions of no more than 50% of the originally approved outdoor work/storage areas and/or buildings, when within existing site boundaries.
b. Guard shacks of 16 square feet or more.

c. Heat treaters that are Underwriters Laboratories [ULI] approved and functioning as an accessory use to a pallet yard.
d. All modifications and/or additions must comply with the following:

i. All expansions and additions must comply with the current Fire Code and are subject to approval by the Fire Marshall prior to the issuance of building permits.
ii. All expansions and additions must comply with the California Building Code and are subject to approval by the Building Official prior to the issuance of building permits.
116
Ordinance No. 1963

iii. Existing pallet areas (areas used for work, assembly, and/or repair), overall pallet yard sites and structures may be expanded with approval of an Administrative Site Plan.
iv. All new outdoor areas shall be depicted on an approved site plan and must be located within areas paved with asphalt and/or concrete. e. New or expanded permanent canopy type structures used for outdoor storage, work, assembly, and/or repair must follow the SWIP development standards and design guidelines.

f. All new pallet areas shall be screened from view of the public right-of-way by a decorative block screening wall. All screening walls adjacent to the public right-of-way shall have a minimum height of (8) feet and shall not be located in the required setback area. A line of sight analysis shall be provided to ensure screening of the pallet and equipment areas. Additional wall height and/or berming may be added as needed to satisfy screening requirements as determined by the Director of Planning and/or Planning Commission.

g. Landscaping adjacent to the public right-of-way shall be installed as required by the SWIP. Pallet Yards are exempt from providing additional landscaping within the interior of the site (wall perimeters, parking area, storage area, etc.) enclosed by the required screen walls as long as incidental landscaping is provided as needed to satisfy screening and other requirements in interface area(s) open to public view.

h. New pallet storage areas must be designated on the site with markings such as paint and others materials to the satisfaction of the Fire Marshall.

***

117
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0010 Agenda Date: 1/28/2025
Agenda #: E. Category: Consent Calendar
FROM:

Finance
SUBJECT:

Adoption of Ordinance No. 1964 (Second Reading), Authorizing the Levy of a Special Tax within Community Facilities District No. 115M
RECOMMENDATION:

Second Reading/Adopt Ordinance No. 1964, Authorizing the Levy of a Special Tax within Community Facilities District No. 115M.

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

DISCUSSION:

Ordinance No. 1964 was introduced by a vote of 3-0 at the December 10, 2024, Regular City Council Meeting.

FISCAL IMPACT:

This action will establish the District, which will levy each property within its boundaries using special tax formulas outlined in the Amended and Restated Rate and Method of Apportionment of Special Tax. The District’s Fiscal Year 2025-26 maximum special tax has been established at $3,144.29 per taxable acre and allows for a 2% increase per year, effective July 1, 2026. All costs for establishing the District have been paid by the Developer with ongoing yearly maintenance services costs paid by the property owners subject to the special tax
MOTION:

Approve staff recommendation.

City of Fontana Printed on 1/22/2025Page 1 of 1
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118

ORDINANCE NO. 1964

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FONTANA,

ACTING AS THE LEGISLATIVE BODY OF THE CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 115M, COUNTY OF SAN

BERNARDINO, STATE OF CALIFORNIA, AUTHORIZING THE LEVY OF SPECIAL TAXES IN SUCH COMMUNITY FACILITIES DISTRICT.

WHEREAS, the City Council (the “City Council”) of the City of Fontana (the “City”), California has, among other things, initiated proceedings, held a public hearing, conducted an election , and received a favorable vote from the qualified electors authorizing the levy of special taxes in the City of Fontana Community Facilities District No. 115M, County of San Bernardino, State of California (the “District”), all as authorized pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982, being Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code (the “Act”).

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

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

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

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

Section 4. The special taxes authorized to be levied shall be secured by the lien imposed pursuant to Sections 3114.5 and 3115.5 of the California Streets and Highways Code, which lien shall be a continuing lien and shall secure each levy of the special taxes.

The lien of the special tax shall continue in force and effect until the special tax obligation is canceled in accordance with law or until the special tax ceases to be levied by the City Council.
119

Ordinance No. 1964

Section 5. This Ordinance shall be effective thirty (30) days after its adoption.

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

APPROVED AND ADOPTED 28th day of January, 2025
READ AND APPROVED AS TO LEGAL FORM:

_______________________________
City Attorney

I, Germaine Key, City Clerk of the City of Fontana, and Ex-Officio Clerk of the City Council, do hereby certify that the foregoing Ordinance is the actual Ordinance introduced at a regular meeting of said City Council on the 10th day of December, 2024 and was finally passed and adopted not less than five days thereafter on the 28th day of January, 2025, 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

120

A-1

APPENDIX A

AMENDED AND RESTATED

RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 115M OF THE

CITY OF FONTANA, COUNTY OF SAN BERNARDINO,

STATE OF CALIFORNIA

A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels of Taxable Property in City of Fontana Community Facilities District No. 115M ("CFD No. 115M") and collected each Fiscal Year, commencing in Fiscal Year 2025 -2026, in an amount determined by the City Council of the City of Fontana, through the application of the Rate and Method of Apportionment as described below. All of the real property in CFD No. 115M, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS

The terms hereinafter set forth have the following meanings:

"Acre” or “Acreage" means the land area expressed in acres of an Assessor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded County map or the land area calculated to the reasonable satisfaction of the CFD Administrator using the boundaries set forth on such map or plan.

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

"Administrative Expen ses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 115M, including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County or otherwise); the costs to the City, CFD No. 115M or any designee thereof of complying with City or CFD No. 115M disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 115M or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees and third party expenses. Administr ative Expenses shall also include amounts estimated or advanced by the City or CFD No. 115M for any other administrative purposes of CFD No. 115M, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.

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

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Ordinance No. 1964
A-2

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

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

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

“CFD No. 115M” means the City of Fontana Community Facilities District No. 115M.

"City" means the City of Fontana, California.

"Council" means the City Council of the City of Fontana, acting as the legislative body of CFD No. 115M.

"County" means the County of San Bernardino.

"Developed Property" means, for each Fiscal Year, all Assessor’s Parcels of Taxable Property for which a final tract map, parcel map, lot line adjustment or any other similar map which subdivides such parcels into lots for which a building permit could be issued for construction has been recorded with the County, as of January 1 of the previous Fiscal Year.

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

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

"Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C hereof, that can be levied by CFD No. 115M in any Fiscal Year on any Assessor’s Parcel.

“Property Owner Association Property" means, for each Fiscal Year, any Assessor’s Parcel within the boundaries of CFD No. 115M that was owned by or irrevocably offered for dedication to a property owner association, including any master or sub-association, as of January 1 of the previous Fiscal Year.

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

"Public Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 115M that is (i) owned b y, irrevocably offered or dedicated to the federal government, the State, the County, the City, or any local government or other public agency, provided, however, that any property leased by a public agency to a private entity 122

Ordinance No. 1964
A-3

and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use; or (ii) encumbered by a public utility easement or as a water detention basin making impractical its use for any purpose other than that set forth in the easement.

To ensure t hat property is classified as Public Property in the first Fiscal Year after it is acquired by, irrevocably offered for dedication to, or dedicated to a public agency, the property owner shall notify the CFD Administrator in writing of such acquisition, offer, or dedication not later than June 30 of the Fiscal Year in which the acquisition, offer, or dedication occurred.

“Rate and Method of Apportionment” means this Amended and Restated Rate and Method of Apportionment of Special Taxes for CFD No. 115M.

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

"Special Tax Requirement" means that amount required in any Fiscal Year for CFD No. 115M to pay for: ( 1) maintenance services authorized to be financed by CFD No. 115M, (2) Administrative Expenses, (3) anticipated delinquent special taxes (such delinquent special taxes shall be estimated based on the delinquency rate in CFD No. 115M for the previous Fiscal Year), and (4) less a credit for funds available to reduce the annual Special Tax levy, if any, as determined by the CFD Administrator.

"Taxable Property" means all of the Assessor’s Parcels within the boundaries of CFD No. 115M which are not exempt from the Special Tax pursuant to law or Section E below.

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

"Welfare Exemption" means, for each Fiscal Year, any Assessor's Parcel that is used exclusively for charitable, hospital, or religious purposes and that has a property tax welfare exemption as indicated in the County’s assesso r’s roll finalized as of the last preceding January 1, including those Assessor’s Parcel receiving a welfare exemption under subdivision (g) of Section 214 of the California Revenue and Taxation Code.

B. ASSIGNMENT TO LAND USE CATEGORIES

For each Fiscal Year, commencing with Fiscal Year 2025 -2026, all Taxable Property within CFD No. 115M shall be categorized as either Developed Property or Undeveloped Property, and shall be subject to the Special Tax in accordance with the rate and method of apportionment determined pursuant to Sections C and D below.

C. MAXIMUM SPECIAL TAX RATE

1. Developed Property

123

Ordinance No. 1964
A-4

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

TABLE 1
Fiscal Year 2025-2026
Maximum Special Tax for Developed Property
Land Use Class FY 2025-2026 Maximum Special Tax
Developed Property $3,144.29 per Acre

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

2. Undeveloped Property

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

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX

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

The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up t o 100% of the Maximum Special Tax for such Assessor’s Parcel.

E. EXEMPTIONS

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

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

F. MANNER OF COLLECTION

124

Ordinance No. 1964
A-5

The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, and the same procedure, sale and lien priority in case of delinquency as is provided for ad valorem property taxes; provided, however, that CFD No. 115M may directly bill the Special Tax, and/or may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of CFD No. 115M.

G. TERM OF SPECIAL TAX

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

H. APPEALS

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

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

I. PREPAYMENT

No prepayments of the Special Tax are permitted.

125
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0005 Agenda Date: 1/28/2025
Agenda #: F. Category: Consent Calendar
FROM:

Human Resources
SUBJECT:

Adopt a Resolution of the City Council of the City of Fontana, California, Adopting Updated Salary Tables for Executive and Management Confidential Employees.

RECOMMENDATION:

Adopt Resolution No. 2025-001, a resolution of the City Council of the City of Fontana, California, adopting the updated Executive and Management/Confidential salary tables, effective February 8, 2025.

COUNCIL GOALS:
· Operate in a businesslike manner by ensuring that the public debate is based on accurate information.
· Practice sound fiscal management by living within our means while investing in the future. · Create and maintain a dynamic team by promoting stability and predictability by providing consistent policy direction.
· Create and maintain a dynamic team by communicating Goals and Objectives to all commissions and employees.
· Create and maintain a dynamic team by emphasizing staff development.

DISCUSSION:

On February 14, 2023, the City Council awarded an agreement to Public Sector Personnel Consultants (PSPC) to assess the competitiveness of the City’s current classification and compensation structure for all positions city-wide. A Classification and Compensation Study was conducted, and the findings were presented to the City Council during Closed Session on May 14, 2024. At that time, the City Council directed staff to develop a pathway toward competitive pay as part of their goal to address employee recruitment, retention, and stability.

Coinciding with these efforts, the Executive Management Benefits Schedule has not been updated since it’screation in 2022. The City Manager has been engaged in discussions with the Executive Management Team, with the implementation plan outlined below incorporated into these discussions.

Executive Management Team Implementation Plan
Although the study found that the City was, on average, five percent (5%) ahead of market based on total compensation, many of our current salary ranges are below the market average for similar roles in comparable cities, which directly impacts recruitment and employee retention. Aligning salary ranges with the market average and wage adjustments moving forward are essential for maintaining a competitive and fair compensation structure. The implementation plan outlined below will address City of Fontana Printed on 1/22/2025Page 1 of 3
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File #: 25-0005 Agenda Date: 1/28/2025
Agenda #: F. Category: Consent Calendar
a competitive and fair compensation structure. The implementation plan outlined below will address current pay disparities to be fair and equitable, support employee satisfaction, and enhance our ability to attract and retain top talent.

Effective February 8, 2025, salary ranges for Executive classifications identified as below market will be adjusted to the rate established in the Classification and Compensation Study. On average, Executive classifications are being adjusted by 6.9%, potentially unlocking future earning potential for the incumbent within their updated classification’s salary range.

In addition to the implementation of the Classification & Compensation Study, an updated Executive Management Benefits Schedule is being presented as a separate agenda item. One of the updated terms and conditions of employment is an additional 1.0% base salary increase (3.0% was applied as of July 13, 2024) effective February 8, 2025, resulting in a net base salary increase of 4.0% for Year 1 (FY 2024-2025). The updated salary ranges are below:

TITLE MINIMUM

ANNUAL SALARY

MAXIMUM

ANNUAL SALARY
Chief Deputy City Clerk $107,779.56 $152,457.00
Chief Financial Officer $177,445.49 $251,002.56
Chief of Police $220,524.00 $312,488.00
Deputy City Manager $215,298.31 $295,676.72
Director of Building & Safety $158,589.45 $232,181.61
Director of Community Services $158,589.45 $232,181.61
Director of Human Resources &
Risk Management $158,589.45 $232,181.61
Director of Innovation & Technology $158,589.45 $232,181.61 Director of Planning $158,589.45 $232,181.61
Public Works Director/City Engineer $184,008.27 $243,840.50 Management/Confidential Employees
At the December 10, 2024, City Council meeting, staff presented an Implementation Plan and Deal Points for Management/Confidential employees, which the City Council approved. As part of that approval, staff indicated that the respective salary tables would be presented at the January 28, 2025, City Council meeting. Those salary tables are now being presented for final review and consideration, effective February 8, 2025.

Further, the City Manager’s employment contract states “Employee will receive cost-of living adjustments equal in percentage to, and at the same time as, the Management/Confidential Unit.”In order to maintain this provision, staff is recommending adoption of the updated Executive Group salary table in which the maximum annual salary for the City Manager classification is increasing to $351,026.35, effective February 8, 2025.

Formal adoption of all City Salary Tables is in accordance with the guidelines provided by the California Public Employee Retirement System (CalPERS).

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Agenda #: F. Category: Consent Calendar
FISCAL IMPACT:

As presented at the December 10, 2024, City Council meeting, the total estimated budgetary financial impact associated with the approval of this item is $2,026,530 for Management/Confidential employees through June 30, 2027. Additionally, the cost associated with the 1% COLA for Executives and the City Manager for remainder of 2024-25 is $46,664.

MOTION:

Approve staff recommendation.

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RESOLUTION NO. 2025 - 001

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

CALIFORNIA, ADOPTING THE UPDATED SALARY TABLES FOR
EXECUTIVE AND MANAGEMENT/CONFIDENTIAL EMPLOYEES.

WHEREAS, the City Council of the City of Fontana has adopted the Personnel Rules and Regulations which incorporate the City’s Classification and Compensation Plan; and

WHEREAS, the Classification and Compensation Plan is not a static plan and requires revisions to reflect organizational changes and needs; and

WHEREAS, the City Council directed staff to develop a pathway towards competitive pay.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fontana, California, to adopt the updated salary tables for Executive (Exhibit A) and Management/Confidential (Exhibit B) employees, effective February 8, 2025.

EFFECTIVE DATE: February 8, 2025
APPROVED AND ADOPTED this 28th day of January, 2025.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney

I, Germaine McClellan Key, City Clerk of the City of Fontana, and Ex-Officio Clerk of the City Council, do hereby certify that the foregoing Resolution is the actual Resolution duly and regularly adopted by the City Council of said City at a regular meeting thereof, held on the 28th day of January 2025, by the following vote to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

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

City Clerk
130

CITY OF FONTANA

EXECUTIVE GROUP ANNUAL PAY SCHEDULE
EFFECTIVE 02/08/2025

TITLE

RANGE

MINIMUM
ANNUAL
SALARY

MAXIMUM
ANNUAL
SALARY

City Manager

EXE02

$351,026.35

Chief Deputy City Clerk

EXE01

$107,779.56

$152,457.00

Chief Financial Officer

EXE01

$177,445.49

$251,002.56

Chief of Police

EXE02

$220,524.00

$312,488.00

Deputy City Manager

EXE02

$215,298.31

$295,676.72

Director of Building & Safety

EXE01

$158,589.45

$232,181.61

Director of Community Services

EXE01

$158,589.45

$232,181.61

Director of Human Resources & Risk
Management

EXE01

$158,589.45

$232,181.61
Director of Innovation & Technology EXE01 $158,589.45 $232,181.61

Director of Planning

EXE01

$158,589.45

$232,181.61

Public Works Director/City Engineer

EXE01

$184,008.27

$243,840.50

Exhibit A 131

CITY OF FONTANA

MANAGEMENT/CONFIDENTIAL EMPLOYEES

HOURLY/MONTHLY/ANNUAL PAY SCHEDULE
Effective 02/08/2025

Exhibit B

TITLE RANGE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5

$66.96 $70.31 $73.83 $77.53 $81.41 Hourly
Accounting Manager MC01 $11,606.40 $12,187.07 $12,797.20 $13,438.54 $14,111.07 Monthly $139,276.80 $146,244.80 $153,566.40 $161,262.40 $169,332.80 Annual $48.36 $50.78 $53.32 $55.99 $58.79
Accounting Supervisor MC62 $8,382.40 $8,801.87 $9,242.14 $9,704.94 $10,190.27 $100,588.80 $105,622.40 $110,905.60 $116,459.20 $122,283.20

Administrative & Finance
Manager

Building Inspections
Supervisor

Community Services
Supervisor
$130,041.60 $136,552.00 $143,395.20 $150,571.20 $158,100.80 $57.31 $60.18 $63.19 $66.35 $69.67
Assistant Building Official MC03 $9,933.74 $10,431.20 $10,952.94 $11,500.67 $12,076.14 $119,204.80 $125,174.40 $131,435.20 $138,008.00 $144,913.60 $42.69 $44.83 $47.08 $49.44 $51.92
Benefits Analyst $7,399.60 $7,770.54 $8,160.54 $8,569.60 $8,999.47 $88,795.20 $93,246.40 $97,926.40 $102,835.20 $107,993.60 $61.71 $64.80 $68.04 $71.45 $75.03
Budget Manager MC07 $10,696.40 $11,232.00 $11,793.60 $12,384.67 $13,005.20 $128,356.80 $134,784.00 $141,523.20 $148,616.00 $156,062.40

$102,856.00 $108,014.40 $113,422.40 $119,100.80 $125,070.40 $42.15 $44.26 $46.48 $48.81 $51.26
Business Systems Analyst MC06 $7,306.00 $7,671.74 $8,056.54 $8,460.40 $8,885.07 $87,672.00 $92,060.80 $96,678.40 $101,524.80 $106,620.80 $54.75 $57.49 $60.37 $63.39 $66.56
City Land Surveyor MC79 $9,490.00 $9,964.94 $10,464.14 $10,987.60 $11,537.07 $113,880.00 $119,579.20 $125,569.60 $131,851.20 $138,444.80 $57.71 $60.60 $63.63 $66.82 $70.17
Code Compliance Manager MC10 $10,003.07 $10,504.00 $11,029.20 $11,582.14 $12,162.80 $120,036.80 $126,048.00 $132,350.40 $138,985.60 $145,953.60 $49.45 $51.93 $54.53 $57.26 $60.13
Code Compliance Supervisor MC65 $8,571.34 $9,001.20 $9,451.87 $9,925.07 $10,422.54 $102,856.00 $108,014.40 $113,422.40 $119,100.80 $125,070.40 $54.90 $57.65 $60.54 $63.57 $66.75
Community Services Manager MC11 $9,516.00 $9,992.67 $10,493.60 $11,018.80 $11,570.00 $114,192.00 $119,912.00 $125,923.20 $132,225.60 $138,840.00

$80,953.60 $85,009.60 $89,273.60 $93,745.60 $98,446.40
$40.89 $42.94 $45.09 $47.35 $49.72
Data Analyst MC05 $7,087.60 $7,442.94 $7,815.60 $8,207.34 $8,618.14 $85,051.20 $89,315.20 $93,787.20 $98,488.00 $103,417.60 $54.59 $57.32 $60.19 $63.20 $66.36
Database Administrator MC14 $9,462.27 $9,935.47 $10,432.94 $10,954.67 $11,502.40 $113,547.20 $119,225.60 $125,195.20 $131,456.00 $138,028.80 $46.82 $49.17 $51.63 $54.22 $56.94
Deputy City Clerk MC95 $8,115.47 $8,522.80 $8,949.20 $9,398.14 $9,869.60 $97,385.60 $102,273.60 $107,390.40 $112,777.60 $118,435.20

$38.92 $40.87 $42.92 $45.07 $47.33
MC12 $6,746.14 $7,084.14 $7,439.47 $7,812.14 $8,203.87

$62.52 $65.65 $68.94 $72.39 $76.01
MC94 $10,836.80 $11,379.34 $11,949.60 $12,547.60 $13,175.07

$49.45 $51.93 $54.53 $57.26 $60.13
MC64 $8,571.34 $9,001.20 $9,451.87 $9,925.07 $10,422.54

132

CITY OF FONTANA

MANAGEMENT/CONFIDENTIAL EMPLOYEES

HOURLY/MONTHLY/ANNUAL PAY SCHEDULE
Effective 02/08/2025

Exhibit B

TITLE RANGE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5

$75.44

$79.22

$83.19

$87.35

$91.72

Hourly
Deputy Finance Officer MC86 $13,076.27 $13,731.47 $14,419.60 $15,140.67 $15,898.14 Monthly $156,915.20 $164,777.60 $173,035.20 $181,688.00 $190,777.60 Annual $50.22 $52.74 $55.38 $58.15 $61.06
Dispatch Manager MC37 $8,704.80 $9,141.60 $9,599.20 $10,079.34 $10,583.74 $104,457.60 $109,699.20 $115,190.40 $120,952.00 $127,004.80 $39.42 $41.40 $43.47 $45.65 $47.94
Dispatch Supervisor MC38 $6,832.80 $7,176.00 $7,534.80 $7,912.67 $8,309.60 $81,993.60 $86,112.00 $90,417.60 $94,952.00 $99,715.20
Economic Development $44.76 $47.00 $49.35 $51.82 $54.42 Analyst MC76 $7,758.40 $8,146.67 $8,554.00 $8,982.14 $9,432.80 $93,100.80 $97,760.00 $102,648.00 $107,785.60 $113,193.60 Emergency Services $44.95 $47.20 $49.56 $52.04 $54.65
Coordinator MC93 $7,791.34 $8,181.34 $8,590.40 $9,020.27 $9,472.67 $93,496.00 $98,176.00 $103,084.80 $108,243.20 $113,672.00 $66.96 $70.31 $73.83 $77.53 $81.41
Engineering Manager MC16 $11,606.40 $12,187.07 $12,797.20 $13,438.54 $14,111.07 $139,276.80 $146,244.80 $153,566.40 $161,262.40 $169,332.80 Environmental Compliance $49.45 $51.93 $54.53 $57.26 $60.13 Supervisor MC17 $8,571.34 $9,001.20 $9,451.87 $9,925.07 $10,422.54 $102,856.00 $108,014.40 $113,422.40 $119,100.80 $125,070.40 Equipment Mechanic $41.94 $44.04 $46.25 $48.57 $51.00
Supervisor MC21 $7,269.60 $7,633.60 $8,016.67 $8,418.80 $8,840.00 $87,235.20 $91,603.20 $96,200.00 $101,025.60 $106,080.00 $31.84 $33.44 $35.12 $36.88 $38.73
Executive Assistant MC53 $5,518.94 $5,796.27 $6,087.47 $6,392.54 $6,713.20 $66,227.20 $69,555.20 $73,049.60 $76,710.40 $80,558.40
Executive Assistant to City $43.67 $45.86 $48.16 $50.57 $53.10 Manager MC18 $7,569.47 $7,949.07 $8,347.74 $8,765.47 $9,204.00 $90,833.60 $95,388.80 $100,172.80 $105,185.60 $110,448.00 Facilities Maintenance $41.94 $44.04 $46.25 $48.57 $51.00 Supervisor MC19 $7,269.60 $7,633.60 $8,016.67 $8,418.80 $8,840.00 $87,235.20 $91,603.20 $96,200.00 $101,025.60 $106,080.00 $62.52 $65.65 $68.94 $72.39 $76.01
Finance Manager MC20 $10,836.80 $11,379.34 $11,949.60 $12,547.60 $13,175.07 $130,041.60 $136,552.00 $143,395.20 $150,571.20 $158,100.80 $54.59 $57.32 $60.19 $63.20 $66.36
GIS Supervisor MC22 $9,462.27 $9,935.47 $10,432.94 $10,954.67 $11,502.40 $113,547.20 $119,225.60 $125,195.20 $131,456.00 $138,028.80 $53.53 $56.21 $59.03 $61.99 $65.09
Homeless Solutions Manager MC87 $9,278.54 $9,743.07 $10,231.87 $10,744.94 $11,282.27 $111,342.40 $116,916.80 $122,782.40 $128,939.20 $135,387.20 $57.71 $60.60 $63.63 $66.82 $70.17
Housing Manager MC23 $10,003.07 $10,504.00 $11,029.20 $11,582.14 $12,162.80 $120,036.80 $126,048.00 $132,350.40 $138,985.60 $145,953.60 $42.69 $44.83 $47.08 $49.44 $51.92
Human Resources Analyst MC24 $7,399.60 $7,770.54 $8,160.54 $8,569.60 $8,999.47 $88,795.20 $93,246.40 $97,926.40 $102,835.20 $107,993.60 133

CITY OF FONTANA

MANAGEMENT/CONFIDENTIAL EMPLOYEES

HOURLY/MONTHLY/ANNUAL PAY SCHEDULE
Effective 02/08/2025

Exhibit B

TITLE RANGE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5

$23.86

$25.06

$26.32

$27.64

$29.03

Hourly
Human Resources Clerk MC25 $4,135.74 $4,343.74 $4,562.14 $4,790.94 $5,031.87 Monthly $49,628.80 $52,124.80 $54,745.60 $57,491.20 $60,382.40 Annual $35.24 $37.01 $38.87 $40.82 $42.87
Human Resources Specialist MC26 $6,108.27 $6,415.07 $6,737.47 $7,075.47 $7,430.80 $73,299.20 $76,980.80 $80,849.60 $84,905.60 $89,169.60
$29.89 $31.39 $32.96 $34.61 $36.35
Human Resources Technician MC27 $5,180.94 $5,440.94 $5,713.07 $5,999.07 $6,300.67 $62,171.20 $65,291.20 $68,556.80 $71,988.80 $75,608.00
$54.59 $57.32 $60.19 $63.20 $66.36
Internal Auditor MC58 $9,462.27 $9,935.47 $10,432.94 $10,954.67 $11,502.40 $113,547.20 $119,225.60 $125,195.20 $131,456.00 $138,028.80 $57.33 $60.20 $63.21 $66.38 $69.70
IT Customer Service Manager MC91 $9,937.20 $10,434.67 $10,956.40 $11,505.87 $12,081.34 $119,246.40 $125,216.00 $131,476.80 $138,070.40 $144,976.00 $61.55 $64.63 $67.87 $71.27 $74.84
IT Manager MC28 $10,668.67 $11,202.54 $11,764.14 $12,353.47 $12,972.27 $128,024.00 $134,430.40 $141,169.60 $148,241.60 $155,667.20 $41.11 $43.17 $45.33 $47.60 $49.98
IT Systems Analyst MC71 $7,125.74 $7,482.80 $7,857.20 $8,250.67 $8,663.20 $85,508.80 $89,793.60 $94,286.40 $99,008.00 $103,958.40 $60.38 $63.40 $66.57 $69.90 $73.40
IT Systems Supervisor MC29 $10,465.87 $10,989.34 $11,538.80 $12,116.00 $12,722.67 $125,590.40 $131,872.00 $138,465.60 $145,392.00 $152,672.00 $39.68 $41.67 $43.76 $45.95 $48.25
Management Analyst I MC80 $6,877.87 $7,222.80 $7,585.07 $7,964.67 $8,363.34 $82,534.40 $86,673.60 $91,020.80 $95,576.00 $100,360.00 $45.66 $47.95 $50.35 $52.87 $55.52
Management Analyst II MC81 $7,914.40 $8,311.34 $8,727.34 $9,164.14 $9,623.47 $94,972.80 $99,736.00 $104,728.00 $109,969.60 $115,481.60 $34.72
Management Trainee MC78 $6,018.14 "Step 1 Only"

Marketing & Economic
Development Manager

Office Manager

Parks & Landscape
Supervisor

Payroll Coordinator

Payroll Technician
$72,217.60
$54.60 $57.33 $60.20 $63.21 $66.38
MC09 $9,464.00 $9,937.20 $10,434.67 $10,956.40 $11,505.87 $113,568.00 $119,246.40 $125,216.00 $131,476.80 $138,070.40 $40.32 $42.34 $44.46 $46.69 $49.03
MC13 $6,988.80 $7,338.94 $7,706.40 $8,092.94 $8,498.54
$83,865.60 $88,067.20 $92,476.80 $97,115.20 $101,982.40 $41.94 $44.04 $46.25 $48.57 $51.00
MC31 $7,269.60 $7,633.60 $8,016.67 $8,418.80 $8,840.00
$87,235.20 $91,603.20 $96,200.00 $101,025.60 $106,080.00 $36.69 $38.53 $40.46 $42.49 $44.62
MC33 $6,359.60 $6,678.54 $7,013.07 $7,364.94 $7,734.14
$76,315.20 $80,142.40 $84,156.80 $88,379.20 $92,809.60
$30.04 $31.55 $33.13 $34.79 $36.53
MC34 $5,206.94 $5,468.67 $5,742.54 $6,030.27 $6,331.87
$62,483.20 $65,624.00 $68,910.40 $72,363.20 $75,982.40

134

CITY OF FONTANA

MANAGEMENT/CONFIDENTIAL EMPLOYEES

HOURLY/MONTHLY/ANNUAL PAY SCHEDULE
Effective 02/08/2025

Exhibit B

TITLE RANGE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5

$49.45

$51.93

$54.53

$57.26

$60.13

Hourly
Permit Supervisor MC15 $8,571.34 $9,001.20 $9,451.87 $9,925.07 $10,422.54 Monthly $102,856.00 $108,014.40 $113,422.40 $119,100.80 $125,070.40 Annual $58.55 $61.48 $64.56 $67.79 $71.18
Planning Manager MC83 $10,148.67 $10,656.54 $11,190.40 $11,750.27 $12,337.87 $121,784.00 $127,878.40 $134,284.80 $141,003.20 $148,054.40 $51.08 $53.64 $56.33 $59.15 $62.11
Plans Examiner Supervisor MC75 $8,853.87 $9,297.60 $9,763.87 $10,252.67 $10,765.74 $106,246.40 $111,571.20 $117,166.40 $123,032.00 $129,188.80 $36.86 $38.71 $40.65 $42.69 $44.83
Police Property Supervisor MC40 $6,389.07 $6,709.74 $7,046.00 $7,399.60 $7,770.54 $76,668.80 $80,516.80 $84,552.00 $88,795.20 $93,246.40
$48.03 $50.44 $52.97 $55.62 $58.41
Police Records Manager MC41 $8,325.20 $8,742.94 $9,181.47 $9,640.80 $10,124.40 $99,902.40 $104,915.20 $110,177.60 $115,689.60 $121,492.80 $32.04 $33.65 $35.34 $37.11 $38.97
Police Records Supervisor MC39 $5,553.60 $5,832.67 $6,125.60 $6,432.40 $6,754.80 $66,643.20 $69,992.00 $73,507.20 $77,188.80 $81,057.60

Police Support Services
Administrator

Public Works Inspection
Supervisor $104,769.60 $110,011.20 $115,523.20 $121,305.60 $127,379.20 $57.71 $60.60 $63.63 $66.82 $70.17
Public Works Manager MC45 $10,003.07 $10,504.00 $11,029.20 $11,582.14 $12,162.80 $120,036.80 $126,048.00 $132,350.40 $138,985.60 $145,953.60 $41.94 $44.04 $46.25 $48.57 $51.00
Public Works Supervisor MC73 $7,269.60 $7,633.60 $8,016.67 $8,418.80 $8,840.00 $87,235.20 $91,603.20 $96,200.00 $101,025.60 $106,080.00 $52.39 $55.01 $57.77 $60.66 $63.70
Purchasing Manager MC88 $9,080.94 $9,535.07 $10,013.47 $10,514.40 $11,041.34 $108,971.20 $114,420.80 $120,161.60 $126,172.80 $132,496.00 $35.83 $37.63 $39.52 $41.50 $43.58
Purchasing Specialist MC46 $6,210.54 $6,522.54 $6,850.14 $7,193.34 $7,553.87 $74,526.40 $78,270.40 $82,201.60 $86,320.00 $90,646.40
$43.75 $45.94 $48.24 $50.66 $53.20
Purchasing Supervisor MC47 $7,583.34 $7,962.94 $8,361.60 $8,781.07 $9,221.34 $91,000.00 $95,555.20 $100,339.20 $105,372.80 $110,656.00 $31.91 $33.51 $35.19 $36.95 $38.80
Records Coordinator MC77 $5,531.07 $5,808.40 $6,099.60 $6,404.67 $6,725.34 $66,372.80 $69,700.80 $73,195.20 $76,856.00 $80,704.00
$49.45 $51.93 $54.53 $57.26 $60.13
Resource Budget Officer MC49 $8,571.34 $9,001.20 $9,451.87 $9,925.07 $10,422.54 $102,856.00 $108,014.40 $113,422.40 $119,100.80 $125,070.40 $48.28 $50.70 $53.24 $55.91 $58.71
Revenue Operations Manager MC89 $8,368.54 $8,788.00 $9,228.27 $9,691.07 $10,176.40 $100,422.40 $105,456.00 $110,739.20 $116,292.80 $122,116.80

$58.09 $61.00 $64.05 $67.26 $70.63
MC36 $10,068.94 $10,573.34 $11,102.00 $11,658.40 $12,242.54 $120,827.20 $126,880.00 $133,224.00 $139,900.80 $146,910.40 $50.37 $52.89 $55.54 $58.32 $61.24
MC44 $8,730.80 $9,167.60 $9,626.94 $10,108.80 $10,614.94

135

CITY OF FONTANA

MANAGEMENT/CONFIDENTIAL EMPLOYEES

HOURLY/MONTHLY/ANNUAL PAY SCHEDULE
Effective 02/08/2025

Exhibit B

TITLE RANGE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5

$47.49

$49.87

$52.37

$54.99

$57.74

Hourly
Risk Management Analyst MC96 $8,231.60 $8,644.14 $9,077.47 $9,531.60 $10,008.27 Monthly $98,779.20 $103,729.60 $108,929.60 $114,379.20 $120,099.20 Annual $59.90 $62.90 $66.05 $69.36 $72.83
Risk Manager MC90 $10,382.67 $10,902.67 $11,448.67 $12,022.40 $12,623.87 $124,592.00 $130,832.00 $137,384.00 $144,268.80 $151,486.40 $42.99 $45.14 $47.40 $49.77 $52.26
Senior Accountant MC50 $7,451.60 $7,824.27 $8,216.00 $8,626.80 $9,058.40 $89,419.20 $93,891.20 $98,592.00 $103,521.60 $108,700.80 $46.82 $49.17 $51.63 $54.22 $56.94
Senior Administrative Analyst MC52 $8,115.47 $8,522.80 $8,949.20 $9,398.14 $9,869.60 $97,385.60 $102,273.60 $107,390.40 $112,777.60 $118,435.20 Senior Administrative $28.94 $30.39 $31.91 $33.51 $35.19 Assistant - Confidential MC02 $5,016.27 $5,267.60 $5,531.07 $5,808.40 $6,099.60 $60,195.20 $63,211.20 $66,372.80 $69,700.80 $73,195.20
Senior Administrative $33.43 $35.11 $36.87 $38.72 $40.66 Technician MC51 $5,794.54 $6,085.74 $6,390.80 $6,711.47 $7,047.74 $69,534.40 $73,028.80 $76,689.60 $80,537.60 $84,572.80
Senior Business Systems $48.21 $50.63 $53.17 $55.83 $58.63 Analyst MC54 $8,356.40 $8,775.87 $9,216.14 $9,677.20 $10,162.54 $100,276.80 $105,310.40 $110,593.60 $116,126.40 $121,950.40 $57.67 $60.56 $63.59 $66.77 $70.11
Senior Civil Engineer MC55 $9,996.14 $10,497.07 $11,022.27 $11,573.47 $12,152.40 $119,953.60 $125,964.80 $132,267.20 $138,881.60 $145,828.80 $54.92 $57.67 $60.56 $63.59 $66.77
Senior Engineer MC56 $9,519.47 $9,996.14 $10,497.07 $11,022.27 $11,573.47 $114,233.60 $119,953.60 $125,964.80 $132,267.20 $138,881.60 Senior Human Resources $49.06 $51.52 $54.10 $56.81 $59.66 Analyst MC57 $8,503.74 $8,930.14 $9,377.34 $9,847.07 $10,341.07 $102,044.80 $107,161.60 $112,528.00 $118,164.80 $124,092.80 $50.43 $52.96 $55.61 $58.40 $61.32
Senior IT Systems Analyst MC70 $8,741.20 $9,179.74 $9,639.07 $10,122.67 $10,628.80 $104,894.40 $110,156.80 $115,668.80 $121,472.00 $127,545.60 $47.93 $50.33 $52.85 $55.50 $58.28
Senior Landscape Planner MC92 $8,307.87 $8,723.87 $9,160.67 $9,620.00 $10,101.87 $99,694.40 $104,686.40 $109,928.00 $115,440.00 $121,222.40 $54.68 $57.42 $60.30 $63.32 $66.49
Senior Management Analyst MC82 $9,477.87 $9,952.80 $10,452.00 $10,975.47 $11,524.94 $113,734.40 $119,433.60 $125,424.00 $131,705.60 $138,299.20 $48.65 $51.09 $53.65 $56.34 $59.16
Senior Planner MC59 $8,432.67 $8,855.60 $9,299.34 $9,765.60 $10,254.40 $101,192.00 $106,267.20 $111,592.00 $117,187.20 $123,052.80 Senior Public Safety Systems $54.59 $57.32 $60.19 $63.20 $66.36 Analyst MC84 $9,462.27 $9,935.47 $10,432.94 $10,954.67 $11,502.40 $113,547.20 $119,225.60 $125,195.20 $131,456.00 $138,028.80 $57.50 $60.38 $63.40 $66.57 $69.90
Senior Traffic Engineer MC74 $9,966.67 $10,465.87 $10,989.34 $11,538.80 $12,116.00 $119,600.00 $125,590.40 $131,872.00 $138,465.60 $145,392.00 136

CITY OF FONTANA

MANAGEMENT/CONFIDENTIAL EMPLOYEES

HOURLY/MONTHLY/ANNUAL PAY SCHEDULE
Effective 02/08/2025

Exhibit B

TITLE RANGE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5
Software Development

$55.36

$58.13

$61.04

$64.10

$67.31

Hourly
Engineer MC60 $9,595.74 $10,075.87 $10,580.27 $11,110.67 $11,667.07 Monthly $115,148.80 $120,910.40 $126,963.20 $133,328.00 $140,004.80 Annual Supervising Animal Services $33.15 $34.81 $36.56 $38.39 $40.31 Officer MC63 $5,746.00 $6,033.74 $6,337.07 $6,654.27 $6,987.07 $68,952.00 $72,404.80 $76,044.80 $79,851.20 $83,844.80
Traffic Signal Maintenance $46.66 $49.00 $51.45 $54.03 $56.74 Supervisor MC68 $8,087.74 $8,493.34 $8,918.00 $9,365.20 $9,834.94 $97,052.80 $101,920.00 $107,016.00 $112,382.40 $118,019.20

137
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0006 Agenda Date: 1/28/2025
Agenda #: G. Category: Consent Calendar
FROM:

Human Resources
SUBJECT:

Adopt Resolutions Amending and Restating the Executive Management Benefits Schedule for the Executive Management Team and the Compensation Plan for Management/Confidential Employees RECOMMENDATION:

Adopt Resolution No. 2025-002, a Resolution of the City Council of the City of Fontana, California, Amending and Restating the Executive Management Benefits Schedule for the Executive Management Team
Adopt Resolution No. 2025-003, a Resolution of the City Council of the City of Fontana, California, Amending and Restating the Compensation Plan for Management/Confidential Employees COUNCIL GOALS:
· Operate in a businesslike manner by ensuring that the public debate is based on accurate information.
· Practice sound fiscal management by producing timely and accurate financial information. · Practice sound fiscal management by living within our means while investing in the future. · Create and maintain a dynamic team by promoting stability and predictability by providing consistent policy direction.
· Create and maintain a dynamic team by communicating Goals and Objectives to all commissions and employees.
· Create and maintain a dynamic team by emphasizing staff development.

DISCUSSION:

Executive Management Benefits Schedule
The Executive Management Benefits Schedule was adopted by the Fontana City Council on July 26, 2022. Since that time, several benefit programs and policies have been reviewed to ensure alignment with the City’sobjectives, industry standards, and legal requirements. This review highlighted the need to update the Executive Management Benefits Schedule to incorporate changes that have occurred since the last update.

The proposed Executive Management Benefits Schedule includes amendments to existing provisions concerning salary adjustments, benefits, and other terms of employment. Key changes include:
· One-time, $2,000 payment for each employee as of December 10, 2024. · On February 8, 2025, an additional 1.0% base salary increase (3.0% was applied as of July 13, 2024), resulting in a net base salary increase of 4.0% for Year 1 (FY 2024-2025). · On July 12, 2025, a 4.0% base salary increase.

City of Fontana Printed on 1/23/2025Page 1 of 2
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138
File #: 25-0006 Agenda Date: 1/28/2025
Agenda #: G. Category: Consent Calendar
· On July 11, 2026, a 3.0% base salary increase.
· Increase to Floating Holidays, including the value of the Day after Thanksgiving and one (1) additional Floating Holiday.

These updates ensure the City continues to offer a comprehensive, competitive, and equitable benefits package to its Executive Management team.

Management/Confidential Employees
The City of Fontana has previously set forth the terms and conditions of employment for certain unrepresented management and confidential employees through a series of Confirmations of Understanding.

Going forward, the City proposes to set forth those terms and conditions of employment via a resolution passed by the City Council instead of in a Confirmation of Understanding. Such a resolution would better reflect the unrepresented nature of this group of employees.

In the past, the City has also met and consulted with impacted management and confidential employees with prior to finalizing the previous Confirmations of Understanding. The City has continued that practice with regard to the terms and conditions of employment contained in the proposed resolution. The proposed resolution is the result of those discussions, and will be effective retroactive to July 1, 2024.

In particular and as presented at the December 10, 2024 City Council meeting, this resolution will memorialize the following:
· One-time, $2,000 payment for each employee as of December 10, 2024. · On February 8, 2025, an additional 1.0% base salary increase (3.0% was applied as of July 13, 2024), resulting in a net base salary increase of 4.0% for Year 1 (FY 2024-2025). · On July 12, 2025, a 4.0% base salary increase.
· On July 11, 2026, a 3.0% base salary increase.
· Increase to Floating Holidays, including the value of the Day after Thanksgiving and one (1) additional Floating Holiday.

These updates ensure the City continues to offer a comprehensive, competitive, and equitable benefits package to Management/Confidential employees.

FISCAL IMPACT:

As presented at the January 28, 2025, City Council meeting, File #25-005, the total estimated budgetary financial impact associated with the approval of the Management Confidential contract is $2,026,530, plus an additional $215,080 related to the one-time, $2,000 payment for each employee.

The additional 1.0% base salary for Executives is $41,260 and it has been included as part of the FY24-25 Supplemental Budget. The total amount for the one-time payment for Executives is $26,380.

MOTION:

Approve staff’s recommendation.

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139
RESOLUTION NO. 2025-002

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

CALIFORNIA, AMENDING AND RESTATING THE EXECUTIVE
BENEFITS SCHEDULE FOR THE EXECUTIVE MANAGEMENT TEAM.

WHEREAS, Resolution No. 2022 -080 was approved and adopted by the City Council on July 26, 2022, which centralized benefits for the Executive Management Team; and

WHEREAS, the City Manager seeks to ensure that the Executive Management Team’s working conditions, benefits, and compensation levels are up-to-date, consistent, and property tailored to meet the needs to the City.

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

Section 1. Resolution No. 2022-080, approved and adopted on July 26, 2022, is hereby repealed.

Section 2. Amend and restate the Executive Benefits Schedule for the Executive Management Team, effective July 1, 2024 (Exhibit A).

EFFECTIVE DATE: July 1, 2024
APPROVED AND ADOPTED this 28th day of January, 2025.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney

I, Germaine McClellan Key, City Clerk of the City of Fontana, and Ex-Officio Clerk of the City Council, do hereby certify that the foregoing Resolution is the actual Resolution duly and regularly adopted by the City Council of said City at a regular meeting thereof, held on the 28th day of January 2025, by the following vote to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:
140
Resolution No. 2025-002

City Clerk of the City of Fontana

Mayor of the City of Fontana

ATTEST:

City Clerk

2 of 2
141

EXECUTIVE MANAGEMEMT

BENEFITS SCHEDULE
Effective July 2, 2022
Last Updated: July 1, 2024

The positions of Executive Management Team can be found in the current Classification and Salary Schedule – Executive Classifications. Excerpts from relevant State statutes, Council Resolutions, and Administrative Policies are found in this document, and are organized alphabetically by subject matter.

ADMINISTRATIVE LEAVE:

Each fiscal year thereafter, employee will be allotted eighty (80) hours of Administrative Leave away from the office to be scheduled and used throughout the year. New employees will receive their Administrative L eave hours upon hire, and annually thereafter as outlined above. These days off do not accrue, are not subject to carry over, are not subject to any cash-out option, and will not be paid out upon separation of service.

Current employees who promote into an Executive classification will only receive the difference between the Administrative Leave hours they have already received in the current fiscal year under their previous classification and the eighty (80) hours allotted for the Executive classification.

AUTOMOBILE ALLOWANCE:

Employee shall be responsible for providing all necessary liability insurance for the use of their personal vehicle for City business and shall provide proof of such insurance to the City upon request. Employee shall also be responsible for all maintenance, repair, and replacement costs associated with the use of their personal vehicle. Finally, Employee shall comply with all vehicle laws and City policies related to safe operation of a motor vehicle when operating their vehicle for a business-related purpose.

The City shall provide the Employee with an automobile allowance of three hundred dollars ($300.00) per pay period (to be paid in each of the 24 pay periods within a calendar year) to cover all official travel within San Bernardino, Riverside, Orange, and Los Angeles Counties, with the exception of travel covered under the City’s Travel Policy.

Travel outside of these areas will be reimbursed at the rate paid per mile to other City employees, except in no case shall the mileage reimbursement for any one trip exceed the cost of round-trip coach airfare between the Ontario Airport and the destination.

OR

With the commencement of the City Manager’s approval, an automobile can be elected for use while conducting official City business and responding to City emergencies and urgent matters during non -business hours as needed. Employee understands that the vehicle shall be used for official City business and may be used for incidental personal use. Further, said vehicle shall not be operated by persons other than Employee. The City shall be responsible for providing liability insurance (bodily injury and property

Exhibit A
142

EXECUTIVE MANAGEMEMT

BENEFITS SCHEDULE
Last Updated: July 1, 2024