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Agenda packet

Fontana City Council
April 22, 2025

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Agenda packet
Meeting
April 22, 2025
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Fontana City Council
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10
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Text extracted from the city's file for reading and search. Open the original on fontana.legistar.com. That file is the official record.

Tuesday, April 22, 2025
2:00 PM
City of Fontana
8353 Sierra Avenue
Fontana, CA 92335
Revised Agenda
Ord. No.1968 Reso. No. 2025-021
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 April 22, 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 LABOR NEGOTIATOR PURSUANT
TO GOVERNMENT CODE SECTION 54957.6 City Negotiator:

John Bakhit, Labor Counsel. Employee Organization( s):

Police Officers Association.

2. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED

LITIGATION
(Government Code section 54956.9(d)(4))
Initiation of litigation: One Potential Case
25-0149

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2 City Council Meeting Revised Agenda April 22, 2025
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. 1. Mayor Warren and City Council to recognize, Officers Dustin Mullins, Andrew O ’Brien, Samuel Saenz and
Dominic Galvan and Administrative Analyst I Justice
Montgomery as February 2025 Employees of the Month
(Captain Brian Binks to present).

2. Measure T, CIP Program Presentation
25-0157
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.

Approve Consent Calendar Items as recommended by staff.

A. Approval of Minutes 25-0159
Approve the minutes of the April 8, 2025, Regular City Council Meeting.

Attachment 1 - City Council Meeting Minutes 04-08-2025.pdfAttachments:

B. Second Reading and Adoption of Ordinance No. 1966,
Approving Municipal Code Amendment No, 24-006 to
Amend Section 30-467 of the Fontana Municipal Code,
25-0166

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3 City Council Meeting Revised Agenda April 22, 2025
Pursuant to a Statutory Exemption from CEQA Under
Public Resources Code § 21080.17 and Directing Staff to File a Notice of Exemption.

Adopt Ordinance No. 1966 (Second Reading), Approving Municipal Code Amendment No, 24-006 to Amend Section 30-467 of the Fontana Municipal Code, Pursuant to a Statutory Exemption from CEQA Under Public Resources Code § 21080.17 and Directing Staff to File a Notice of Exemption.

Attachment No. 1- Ord 1966.docxAttachments:

C. Authorize the Renewal of VMware Software Licensing and Dell VxRail Hardware Maintenance
25-0122

1. Authorize the Purchasing Office to procure software licensing and maintenance support utilizing the Purchasing Policy and Procedure Manual 3.1.5 Non-Competitive Proposal - Purchase by Another Agency.

2. Authorize Purchasing Division to use the National Association of State Procurement Officials (NASPO) ValuePoint contract 7-17-70-40-05 to purchase 3 Year VMware /Broadcom vSAN software licensing ( $119,380 per year) and 1 Year Dell VxRail hardware maintenance and support ($152,619.45) from authorized reseller SidePath of Laguna Hills, CA.

Attachment No. 1- CA_Amendment_2.pdf
Attachment No. 2 - QUOTE-SIDQ52434.pdf
Attachment No. 3.- QUOTE-SIDQ52698.pdf
Attachments:

D. Award a Construction Contract for the 2024/25 Citywide Pavement Rehabilitation Project (DE-25-102-SB)
25-0133

1. Award bid and authorize the City Manager to execute a construction contract with Matich Corporation for the construction of the 2024/25 Citywide Pavement Rehabilitation Project, in the amount of $4,476,528.27 and authorize a 10% contingency in the amount of $447,652.83 (DE-25- 102-SB).

2. Approve and authorize the City Manager to execute any and all utility agreements, utility easements, and subsequent agreements on behalf of the City of Fontana for the 2024/25 Citywide Pavement Rehabilitation Project.

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4 City Council Meeting Revised Agenda April 22, 2025
Attachment No. 1 - Bid Results 24-25 Citywide Pavement
Rehab.pdf
Attachment No. 2 - BidResultDetail.pdf
Attachment No. 3 - Grid Map 47 Pavement Map.pdf
Attachment No. 4 - Marygold Ave Sierra to Maple Map.pdf Attachment No. 5 - Merrill Ave Alder to Maple Map.pdf
Attachment No. 6- Sierra Ave Baseline to Highland Map.pdf Attachment No. 7 - Sierra Ave Summit to Sierra Lake
Map.pdf
Attachments:

E. Final Acceptance of the Rose Avenue Pavement
Rehabilitation Project (DE-24-86-SB)
25-0134
Accept as complete the work performed by Dash Construction Company, Inc. for the Rose Avenue Pavement Rehabilitation Project.

Attachment No. 1- 23-11-10 Rose Avenue Rehab Plans
FINAL.pdf
Attachments:

F. Award a Construction Contract for the Active
Transportation Program (ATP) Date Elementary School
Street Improvements Project Federal ID No .

ATPSB1L-5307(032), (Bid No. DE-24-248-SB)
25-0138

1. Award bid and authorize the City Manager to execute a construction contract with Universal Construction and Engineering for the construction of the Active Transportation Program (ATP) Date Elementary School Street Improvements Project Federal ID No. ATPSB1L-5307(032), in the amount of $1,531,066.25 and authorize a 10% contingency in the amount of $153,106.63 (Bid No. DE-24-248-SB).

2. Approve and authorize the City Manager to execute any and all utility agreements, utility easements, and subsequent agreements on behalf of the City of Fontana for the Active Transportation Program (ATP) Date Elementary School Street Improvements Project Federal ID No.

ATPSB1L-5307(032), (Bid No. DE-24-248-SB).

Attachment No. 1 - Vicinity Map
Attachment No. 2- Bid Results
Attachment No. 3- Bid Detail
Attachments:

G. Adoption of a Resolution Accepting, Pursuant to the
Certified Southridge Village Specific Plan Environmental Impact Report No. 81-3 (SCH No. 81052210) and Adopted
Addendum, the Conveyance of that Certain Property
Located at Live Oak Avenue, West of Old Live Oak Avenue, from the Fontana Public Financing Authority, Declaring a Portion of the Property a Right-of-Way and Establishing 25-0143

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5 City Council Meeting Revised Agenda April 22, 2025
Conditions for Final Acceptance of Related Roadway
Improvements

1. Adopt Resolution No. 2025-021, accepting, pursuant to the certified Southridge Village Specific Plan Environmental Impact Report No. 81-3 (SCH No. 81052210) and Adopted Addendum, the conveyance of that certain property located at Live Oak Avenue, west of Old Live Oak Avenue, from the Fontana Public Financing Authority, declaring a portion of the property a right-of-way, and establishing conditions for final acceptance of related roadway improvements and directing staff to file a Notice of Determination.

2. Provide the City Manager with the authority to take all necessary actions to ensure the successful execution and completion of the conveyance of that certain real property located at Live Oak Avenue, west of Old Live Oak Avenue in the City of Fontana, from the Fontana Public Financing Authority to the City of Fontana.

Attachment No. 1 - Resolution of CC Accepting Grant of
Property from FPFA--c1-c1.docx
Attachment No. 2 - Exhibit A - Resolution 2023-085.pdf
Attachment No. 3 - Exhibit B - Fontana Public Financing Authority Grant Deed to City-c1.docx
Attachment No. 4 - Exhibit C - Legal Description.pdf
Attachment No. 5 - Exhibit D - Plat.pdf
Attachments:

H. Accept Donation from Burrtec Waste Industries, Inc. ( 2025 Fontana Days Run)
25-0146
Accept donation from Burrtec Waste Industries, Inc. in the amount of $1,000 for use towards the 2025 Fontana Days Run
Attachment No. 1 - Burrtec Waste Industries, Inc (2025 Fontana Days Run).pdf
Attachments:

I. Accept Donation from Bel-Air Swap-Meet, Inc. ( 2025
Fontana Days Run)
25-0147
Accept donation from Bel-Air Swap-Meet, Inc. in the amount of $10,000 for use towards the 2025 Fontana Days Run.

Attachment No. 1 - Bel-Air Swap-Meet, Inc. (2025 Fontana Days Run).pdf
Attachments:

J. Accept Donation from Les Schwab Tire Center ( 2025
Fontana Car Show)
25-0148
Accept donation from Les Schwab Tire Center in the amount of $1,000 for use towards the 2025 Fontana Car Show.

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6 City Council Meeting Revised Agenda April 22, 2025
Attachment No. 1 - Les Schwab Tire Center (2025 Fontana Car Show).pdf
Attachments:

K. Award a Construction Contract for the Southridge Dog Parks (East and West) Project (Bid No. DE-25-97-SB)
25-0151

1. Award bid and authorize the City Manager to execute a construction contract with Zeco, Inc. for the construction of the Southridge Dog Parks (East and West) Project, in the amount of $541,326.50 and authorize a 10% contingency in the amount of $54,132.65 (Bid No. DE-25-97-SB).

2. Approve and authorize the City Manager to execute any and all utility agreements, utility easements, and subsequent agreements on behalf of the City of Fontana for the Southridge Dog Parks (East and West) Project (Bid No. DE-25-97-SB).

Attachment No. 1 - Vicinity Map
Attachment No. 2 - Bid Results
Attachmetn No. 3 - Bid Detail
Attachments:

L. Approve Amendment No. 2 to the Professional Services Agreement for Architectural Design Services for the City Hall Renovation Project - Phase II (City Hall) (DE-24-147-SP) 25-0153
Approve and authorize the City Manager to execute Amendment No. 2 to the Professional Services Agreement with Sillman Wright Architects for Architectural Design Services for the City Hall Renovation Project - Phase II (DE-24-147-SP), in the amount of $766,670.00 for a total contract amount of $1,956,160.00.

Attachment No. 1 - Vicinity Map.pdf
Attachment No. 2 - [DRAFT] SILLMAN Amendment No. 2
(DE-24-147-SP; 2025-3-31).pdf
Attachments:

M. Police Department Monthly Information Update 25-0155 Accept the Police Department monthly information update for February 2025.

Attachment No. 1- Febuary 2025 Report for City Council
Rev.pptx
Attachments:

N. Annual Update on Military Equipment Usage 25-0156
Adopt the “2024 Fontana Police Department Annual Military Equipment Use Inventory Report” in accordance with Ordinance No. 1892 of the Fontana Municipal Code, Governing Military Equipment Usage.

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7 City Council Meeting Revised Agenda April 22, 2025
Attachment No. 1 - Fontana AB 481 Ordinance-c1-c1-c1.pdf Attachment No. 2 - 709 Military_Equipment-c1.pdf
Attachment No. 3 - Fontana PD - AB 481 2024-2025 Annual Report on Military Equipment Usage [BBK 2.26.25]-c1.docx Attachment No. 4 - 2025 FONTANA POLICE MILITARY
EQUIPMENT INVENTORY 2024-c1.docx
Attachments:

NEW BUSINESS:

A. New Business
A. Introduction and First Reading of Ordinance No. 1968, adding Article VII to Fontana Municipal Code Chapter 16 regarding Camping in the City.
25-0154
Introduce and conduct the first reading, by title only, for Ordinance No. 1968, an Ordinance adding Article VII entitled “Camping” to Chapter 16 of the Fontana Municipal Code, establishing procedures for the handling of camping and associated matters.

Attachment No. 1 - Fontana - Ordinance Adding Article VII of Chapter 16 for Prohibition Unlawful Camping-c1.pdf
Attachment No. 2 - Chapter 16 Article VII DRAFT v2
Clean.pdf
Attachment No. 3 - PostedNotice DRAFT.pdf
Attachments:

B. Annual Comprehensive Financial Report for Fiscal Year Ended June 30, 2024.
25-0158
Receive and File the City of Fontana’s Annual Comprehensive Financial Report (ACFR) for Fiscal Year ended June 30, 2024.

Attachment No. 1- 6.30.2024 ACFRAttachments:

CITY MANAGER COMMUNICATIONS:

A. City Manager Communications
ELECTED OFFICIALS COMMUNICATIONS/REPORTS:

A. Elected Officials Communications/Reports
ADJOURNMENT:

A. Adjournment
Adjourn to the next Regular City Council Meeting on May 13, 2025 at 2:00 p.m. in the Grover W. Taylor Council Chambers located at 8353 Sierra Avenue, Fontana, California.

Page 7 of 7 ends

8 City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0149 Agenda Date: 4/22/2025
Agenda #: A. Category: Closed Session
Closed Session
Tuesday, April 22, 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 4/9/2025Page 1 of 1
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9 City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0157 Agenda Date: 4/22/2025
Agenda #: A. Category: Special Presentation
Special Presentation
Tuesday, April 22, 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 4/9/2025Page 1 of 2
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10 File #: 25-0157 Agenda Date: 4/22/2025
Agenda #: A. Category: Special Presentation
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11 City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0159 Agenda Date: 4/22/2025
Agenda #: A. Category: Consent Calendar
FROM:

City Clerk
SUBJECT:

Approval of Minutes
RECOMMENDATION:

Approve the minutes of the April 8, 2025, 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 April 8, 2025, Regular City Council Meeting. The draft minutes are attached to this report for Council review and approval.

FISCAL IMPACT:

None.

MOTION:

Approve staff recommendation.

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City of Fontana

8353 Sierra Avenue
Fontana, CA 92335

Minutes

Tuesday, April 8, 2025

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

13

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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, April 8, 2025.

Mayor Warren called the Regular City Council Meeting to order at 2:00 p.m.

ROLL CALL:

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

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

ABSENT: Mayor Pro Tem Garcia

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 Council Member Cothran.

SPECIAL PRESENTATIONS:

A. Mayor Warren and the City Council to recognize awards received from California Parks and Recreation Society (Community Services Supervisor, Bianca Morales and California Parks and Recreation Society (CPRS) President, Kyla Brown to present).

Mayor Warren and the City Council introduced Community Services Supervisor and CPRS District 11 President-Elect Bianca Morales who presented the following awards:

• CPRS District 11 - Community Champion Award- Project Boon – Eat and Be Well Event
• CPRS District 11 - Community Champion Award- Foundation of Hope – (Jack Long's Family) – Over 5 million dollars to Various groups and City programs.

CPRS District 11 President-Elect Morales also presented CPRS District Scholarships for professional development to the following City employees:

• Diana Escobar, Community Services Coordinator, Special Events • Jasmine Saradias, Community Services Coordinator, Healthy Fontana 14

Page 3 of 6 ends

• Benjamin Galaz, Senior Community Services Assistant

Mayor Warren and the City Council introduced 2024 CPRS President Kayla Brown who presented the following awards:

• 2024 CPRS Award of Excellence recipient for Fontana Activities Brochure in the Marketing & Communications Award of Excellence category. • 2024 CPRS Award of Excellence recipient for the Fontana Senior Paint Night in the Creating Community Aquatic Section Award of Excellence category. • 2024 CPRS Aquatic Section Health and Wellness Award for the City of Fontana Fresh, Fit, and Fun Fair.

PUBLIC COMMUNICATIONS:

The following individuals spoke under public communications:

Karen Hooper , representing the Inland Empire Ronald McDonald House, invited the community to take part in the upcoming Walk for Kids event on April 27 at Fontana Park. She also shared information about the vital services provided by the Ronald McDonald House and expressed gratitude to the Mayor and City Council for their continued support.

Thomas Franke, also from the Inland Empire Ronald McDonald House, encouraged the community to attend the Walk for Kids Kickoff Event on April 9 at 5 p.m. at the Foundation of Hope.

CONSENT CALENDAR:

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

A. Approval of Minutes 25-0141
Approve the minutes of the March 25, 2025, Regular City Council Meeting.

B. Adoption of Ordinance No. 1967 (Second Reading), Amending 25-0142 Chapters 16, 17, and 19 of the Fontana Municipal Code to make sections more intuitive and to incorporate current best practices.

Second Reading/Adopt Ordinance No. 1967, Amending Chapters 16, 17, and 19 of the Fontana Municipal Code to make sections more intuitive and to incorporate current best practices.

15

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C. Approve Reimbursement Agreement with HDO4, LLC for 25-0152 Construction of Traffic Signals at Duncan Canyon Road/Citrus Avenue and Duncan Canyon Road/John Previti Avenue

1. Approve and authorize the City Manager to execute a Reimbursement Agreement with HDO4, LLC for the construction of traffic signals at Duncan Canyon Road/Citrus Avenue and Duncan Canyon Road/John Previti Avenue, in an amount not to exceed $ 2,398,531.00.

2. Approve appropriation and allocate the amount of $ 2,398,531.00 from Fund 604 Measure T.

PUBLIC HEARINGS:

A. Master Case (MCN) No. 24-0073 and Municipal Code 25-0145 Amendment (MCA) No. 24-0006: Fontana Municipal Code Amendments to Chapter 30 (Zoning and Development Code) to modify Section No. 30 -467 pertaining to accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) to comply with State of California law.

Based on the information in the staff report, staff recommends that the City Council introduce Ordinance No. 1966; and,

1. Determine that the proposed ordinance is statutorily exempt from the California Environmental Quality Act (“CEQA”) pursuant to California Public Resources Code section 21080.17 as CEQA does not apply to the adoption of an ordinance by a city or county implementing the provisions of Article 2 of Chapter 13 of Division 1 of Title 7 of the California Government Code, Which is California’s ADU law and which also regulates JADUs, as defined by section 66313; and,

2. Adopt an Ordinance for Municipal Code Amendment (MCA) No. 24-0006 to amend Chapter 30 of the Municipal Code.

Mayor Warren opened the Public Hearing.

City Clerk Key stated no written communications were received.

Associate Planner Cecily Session-Goins provided the staff report.

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 Council Member Sandoval, and passed unanimously by a vote of 4 -0 to approve staff recommendation on Public Hearing Item “A.” The motion carried by the following vote: AYES: Warren , Cothran, Roberts, and Sandoval; NOES: None; ABSTAIN: None; ABSENT: Garcia

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CITY MANAGER COMMUNICATIONS:

A. City Manager Communications

City Manager Matt Ballantyne had no comments.

ELECTED OFFICIALS COMMUNICATIONS/REPORTS:

A. Elected Officials Communications/Reports

City Treasurer Koehler-Brooks had no comments.

City Clerk Key extended Easter greetings to all.

Council Member Sandoval offered condolences to the families and individuals in whose memory the meeting was adjourned.

Council Member Roberts also wished everyone a happy Easter.

Council Member Cothran had no comments.

Mayor Warren expressed appreciation to those who helped organize the recent Fontana Car Show, noting its success and encouraging the community to attend future events.

ADJOURNMENT:

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

1. Benjamin Adame

2. Grace Thr asher

Mayor Warren adjourned the meeting at 2:33 p.m. to the Regular City Council Meeting on Tuesday, April 22, 2025, at 2:00 p.m. in the Grover W. Taylor Council Chambers located at 8353 Sierra Avenue, Fontana, California.

_____________________
Christina Rudsell, CMC
Chief Deputy City Clerk

17

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THE FOREGOING MINUTES WERE ADOPTED AND APPROVED BY THE FONTANA CITY COUNCIL ON APRIL 22, 2025.

_______________________
Germaine Key
City Clerk

18 City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0166 Agenda Date: 4/22/2025
Agenda #: B. Category: Consent Calendar
FROM:

Planning
SUBJECT:

Second Reading and Adoption of Ordinance No. 1966, Approving Municipal Code Amendment No, 24-006 to Amend Section 30-467 of the Fontana Municipal Code, Pursuant to a Statutory Exemption from CEQA Under Public Resources Code § 21080.17 and Directing Staff to File a Notice of Exemption.

RECOMMENDATION:

Adopt Ordinance No. 1966 (Second Reading), Approving Municipal Code Amendment No, 24-006 to Amend Section 30-467 of the Fontana Municipal Code, Pursuant to a Statutory Exemption from CEQA Under Public Resources Code § 21080.17 and Directing Staff to File a Notice of Exemption.

COUNCIL GOALS:
· Provide a diverse range of housing types and levels of affordability while addressing homelessness in the community by construction of affordable high-quality multi-family housing.

DISCUSSION:

Ordinance No. 1966 was introduced by a vote of 4-0 at the April 8, 2025, Regular City Council Meeting.

FISCAL IMPACT:

None.

MOTION:

Approve staff recommendation.

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ATTACHMENT NO. 1

ORDINANCE NO. 1966

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FONTANA, CALIFORNIA, APPROVING MUNICIPAL CODE AMENDMENT NO. 24-
006 TO AMEND SECTION 30 -467 OF THE FONTANA MUNI CIPAL

CODE, PURSUANT TO A STATUTORY EXEMPTION FROM CEQA
UNDER PUBLIC RESOURCES CODE § 21080.17 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. 24-006; 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 -467. – Accessory dwelling units and junior accessory dwelling units. is amended to align with state law; 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. 24-006 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. 24-006 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. 24-006 are attached here to as Exhibit “A” and incorporated herein by reference, will not be detrimental to the public health, 20 Ordinance No. 1966

Page 2 of 4 ends

safety and general welfare, nor will it adversely affect the orderly development of property; and
WHEREAS, the amendments in MCA No. 24-006 will better express the City’s policies and will generally promote good land use planning and regulation; and WHEREAS, on January 21, 2025, the Planning Commission held a public meeting on MCA No. 24 -006 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 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 January 21, 2025, and approved Resolution No. 2025-002 to recommend that the City Council approve the modifications to the Zoning and Development Code; and
WHEREAS, on April 8, 2025, the City Council held a public hearing on MCA No. 24-006 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 January 21, 2025; and
WHEREAS, the City Council carefully considered all information pertaining to MCA No. 24-006 that was presented at its public hearing on April 8, 2025; and WHEREAS, all other legal prerequisites to the adoption of this Ordinance have occurred.

THE CITY COUNCIL OF THE CITY OF FONTANA DOES ORDAIN 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 under California Public Resources Code section 21080.17, the California Environmental Quality Act (“CEQA”) does not apply to the adoption of an ordinance by a city or county implementing the provisions of Article 2 of Chapter 13 of Division 1 of Title 7 of the California Government Code, which is California’s ADU law, and which also regulates JADUs, as defined by 21 Ordinance No. 1966

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section 66313. Therefore, adoption of the proposed ordinance is statutorily exempt from CEQA in that it implements state ADU law.

Section 3. Development Code Amendment Findings . The City Council hereby makes the following findings for Municipal Code Amendment No. 24-006 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 or when modification is viewed as appropriate in the context of generally accepted planning principles, surrounding land uses, and the General Plan.

Findings of Fact: The Municipal Code Amendment permanently codifies the previously approved urgency ordinance. The Municipal Code Amendm ent aligns the municipal code with State of California law as it pertains to accessory dwelling units and junior accessory units. As such, the amendment will promote the General Plan goal of adequate housing to meet the needs of all residents in Fontana.

Section 4. Development Code Amendment Approval. Based on the foregoing, the City Council hereby approves the amendments as set forth in MCA No. 24-006, 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.

22 Ordinance No. 1966

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APPROVED AND ADOPTED this 22nd day of April, 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 8th day of April 2025, and was finally passed and adopted not less than five days thereafter on the 22nd day of April 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

23 “EXHIBIT A”

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

Sec. 30-467. Accessory dwelling units and junior accessory dwelling units. (a) Purpose; Application.
(1) Purpose. The purpose of this section is to allow and regulate accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) in compliance with Chapter 13 of Division 1 of Title 7 of the California Government Code. (2) Application. This section applies to all ADUs and JADUs for which a complete application is submitted on or after January 1, 2023 2025. If a complete ADU or JADU application is submitted prior to that date, the applicant may elect in writing to proceed under the City's ADU regulations that were in effect at submittal; otherwise, this section governs. For purposes of this paragraph, a complete application includes an application that is deemed complete under state law. (b) Effect of Conforming. An ADU or JADU that conforms to the standards in this section will not be:
(1) Deemed to be inconsistent with the city's general plan and zoning designation for the lot on which the ADU or JADU is located.
(2) Deemed to exceed the allowable density for the lot on which the ADU or JADU is located.
(3) Considered in the application of any local ordinance, policy, or program to limit residential growth.
(4) Required to correct a nonconforming zoning condition, as defined in subsection (c)(8) be low. This does not prevent the city from enforcing compliance with applicable building standards in accordance with Health and Safety Code § 17980.12.
(c) Definitions. As used in this section, terms are defined as follows:
(1) Accessory dwelling unit or ADU means an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. An accessory dwelling unit also includes the following:
a. An efficiency unit, as defined by California Health and Safety Code § 17958.1; and
b. A manufactured home, as defined by California Health and Safety Code § 18007.
(2) Accessory structure means a structure that is accessory and incidental t o a dwelling located on the same lot.
(3) Attached accessory dwelling unit means an ADU that is connected via a permanent wall, ceiling, or floor to a primary dwelling on the same lot. "Attached accessory dwelling unit" does not include an ADU that is only attached to a primary dwelling via a patio structure, overhang, breezeway, or similar structure. Reserved. 24 (4) Complete independent living facilities means permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as t he single-family or multi-family dwelling is or will be situated.
(5) Efficiency kitchen means a kitchen that includes all of the following:
a. A cooking facility with appliances.
b. A food preparation counter and storage cabinets that are of a reasonab le size in relation to the size of the JADU.
(6) "Junior accessory dwelling unit" or "JADU" means a residential unit that satisfies all of the following:
a. It is no more than 500 square feet in size.
b. It is contained entirely within an existing or proposed single-family structure. An enclosed use within the residence, such as an attached garage, is considered to be a part of and contained within the single-family structure. c. It includes its own separate sanitation facilities or shares sanitation fa cilities with the existing or proposed single-family structure.
d. If the unit does not include its own separate bathroom, then it contains an interior entrance to the main living area of the existing or proposed single-family structure in addition to an exterior entrance that is separate from the main entrance to the primary dwelling.
e. It includes an efficiency kitchen, as defined in subsection (c)(5) above. (7) “Livable space” means a space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation. (8) Living area means the interior habitable area of a dwelling unit a space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation, including basements and attics, but does not include a garage or any accessory structure.
(8) Nonconforming zoning condition means a physical improvement on a property that does not conform with current zoning standards.
(9) Passageway means a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the ADU or JADU.
(10) Proposed dwelling means a dwelling that is the subject of a permit application and that meets the requirements for permitting. (11) Public transit means a location, including, but not limited to, a bus stop or train station, where the public may access buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public.
(12) Tandem parking means that two or more aut omobiles are parked on a driveway or in any other location on a lot, lined up behind one another. (13) Total floor area means the total floor area of the ADU or JADU, inclusive of all habitable and non-habitable areas of the structure, including, but not limited to stairways, hallways, basements, attics, garages, storage areas, restrooms. (d) Approvals. The following approvals apply to ADUs and JADUs under this section:
(1) Building-permit only. If an ADU or JADU complies with each of the general requirements in subsection (e) below, it is allowed with only a building permit in the following scenarios:
25 a. Converted on lot with single-family. One ADU as described in this subsection (d)(1)(a) and one JADU on a lot with a proposed or existing single -family dwelling on it, where the ADU or JADU:

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

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

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

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

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

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

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

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

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

3. If the lot has existing multi-family dwellings, the quantity of detached ADUs does not exceed the number of primary dwelling units on the lot. (2) ADU permit.
a. Except as allowed under subsection (d)(1) above, no ADU may be created without a building permit and an ADU permit in compliance with the standards set forth in subsections (e) and (f) below.
26 b. The city may charge a fee to reimburse it for costs incurred in processing ADU permits, including the costs of adopting or amending the city's ADU ordinance.

The ADU-permit processing fee is determined by the Director of Planning and approved by the city council by resolution.
(3) Process and Timing.
a. An ADU permit is considered and approved ministerially, without discretionary review or a hearing.
b. The city must approve or deny an application to create an ADU or JADU within 60 days from the date that the city receives a completed application. If the city has not approved or denied the completed application within 60 days, the application is deemed approved unless either:

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

2. When an application to create an ADU or JADU is submitted with a permit application to create a new single-family or multi-family dwelling on the lot, the city may delay acting on the permit application for the ADU or JADU until the city acts on the permit application to create the new single -family or multi-family dwelling, but the application to create the ADU or JADU will still be considered ministerially without discretionary review or a hearing. c. If the city denies an application to create an ADU or JADU, the city must provide the applicant with comments that include, among other things, a list of all the defective or deficient items and a description of how the application may be remedied by the applicant. Notice of the denial and corresponding comments must be provided to the applicant within the 60-day time period established by subsection (d)(3)(b) above.
d. A demolition permit for a detached garage that is to be replaced with an ADU is reviewed with the application for the ADU and issued at the same time. (e) General ADU and JADU requirements. The following requirements apply to all ADUs and JADUs that are approved under subsection (d)(1) or (d)(2) above:
(1) Zoning.
a. An ADU or JADU subject only to a building permit under subsection (d)(1) above may be created on a lot in a residential or mixed-use zone. b. An ADU or JADU subject to an ADU permit under subsection (d)(2) above may be created on a lot that is zoned to allow single-family dwelling residential use or multi-family dwelling residential use.
c. In accordance with Government Code section 66333(a), a JADU may only be created on a lot zoned for single-family residences.
(2) Height.
a. Except as otherwise provided by subsections (e)(2)(b) and (e)(2)(c) below, a detached ADU created on a lot with an existing or proposed single -family or multi-family dwelling unit may not exceed 16 feet in height. b. A detached ADU may be up to 18 feet in height if it is created on a lot with an existing or proposed single -family or multi -family dwelling unit that is located within one-half mile walking distance of a major transit stop or a high quality transit corridor, as those terms are defined in Public Resources Code § 21155, and the ADU may be up to two additional feet in height (for a maximum of 20 27 feet) if necessary to accommodate a roof pitch on the ADU that is aligned with the roof pitch of the primary dwelling unit.
c. A detached ADU created on a lot with an existing or proposed multi -family dwelling that has more than one story above grade may not exceed 18 feet in height.
d. An ADU that is attached to the primary dwelling may not exceed 25 feet in height or the height limitation imposed by the underlying zone that applies to the primary dwelling, whichever is lower. Notwithstanding the foregoing, ADUs subject to this subsection (e)(2)(d) may not exceed two stories. e. For purposes of this subsection (e)(2) , height is measured from existing legal grade to the peak of the structure.
(3) Fire sprinklers.

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

2.b. The construction of an ADU does not trigger a requirement for fire sprinklers to be installed in the existing primary dwelling.
(4) Rental term. No ADU or JADU may be rented for a term that is shorter than 30 days. This prohibition applies regardless of when the ADU or JADU was created. (5) No separate conv eyance. An ADU or JADU may be rented but, except as otherwise provided in Government Code § 66340 et seq., no ADU or JADU may be sold or otherwise conveyed separately from the lot and the primary dwelling (in the case of a single-family lot) or from the lo t and all of the dwellings (in the case of a multi-family lot).
(6) Septic system. If the ADU or JADU will connect to an onsite wastewater-treatment system, include with the application a percolation test completed within the last five years or, if the percolation test has been recertified, within the last ten years. (7) Owner occupancy. As required by state law, all JADUs are subject to an owner occupancy requirement. A natural person with legal or equitable title to the property must reside on the property, in either the primary dwelling or JADU, as the person's legal domicile and perman ent residence. However. the owner -occupancy requirement in this subsection (e)(7)(c) does not apply if the property is entirely owned by another governmental agency. land trust. or housing organization. a. ADUs created under this section on or after January 1, 2020 are not subject to an owner-occupancy requirement.
b. As required by state law, all JADUs are subject to an owner -occupancy requirement. A natural person with legal or equitable title to the property must reside on the property, in either the primary dwelling or JADU, as the person’s legal domicile and permanent residence. However, the owner - occupancy requirement in this subsection 0 does not apply if the property is entirely owned by another governmental agency, land trust, or housing organization.
(8) Deed restriction. Prior to issuance of a building permit for a JADU, a deed restriction must be recorded against the title of the prop erty in the County Recorder's office and a copy filed with the Director Planning Department. The deed restriction must run with the land and bind all future owners. The form of the deed restriction will be provided by the city and must provide that:
28 a. Except as otherwise provided in Government Code § 65852.26 section 66341, the JADU may not be sold separately from the primary dwelling. b. The JADU is restricted to the approved size and to other attributes allowed by this section.
c. The deed restriction runs with the land and may be enforced against future property owners.
d. The deed restriction may be removed if the owner eliminates the JADU, as evidenced by, for example, removal of the kitchen facilities. To remove the deed restriction, an owner may make a written request of the Director, providing evidence that the JADU has in fact been eliminated. The Director may then determine whether the evidence supports the claim that the JADU has been eliminated. Appeal may be taken from the Director's determi nation consistent with other provisions of this Code. If the JADU is not entirely physically removed but is only eliminated by virtue of having a necessary component of an JADU removed, the remaining structure and improvements must otherwise comply with applicable provisions of this Code.
e. The deed restriction is enforceable by the director or his or her designee for the benefit of the city. Failure of the property owner to comply with the deed restriction may result in legal action against the property owner, and the city is authorized to obtain any remedy available to it at law or equity, including, but not limited to, obtaining an injunction enjoining the use of the JADU in violation of the recorded restrictions or abatement of the illegal unit. (9) Reserved. Income reporting. In order to facilitate the city's obligation to identify adequate sites for housing in accordance with Government Code §§ 65583.1 and 65852.2, the following requirements must be satisfied:
a. With the building-permit application, the applicant must provide the city with an estimate of the projected annualized rent that will be charged for the ADU or JADU.
b. Within 90 days after each yearly anniversary of the issuance of the building permit, the owner must report the actual ren t charged for the ADU or JADU during the prior year. If the city does not receive the report within the 90 -day period, the owner is in violation of this Code, and the city may send the owner a notice of violation and allow the owner another 30 days to subm it the report.

If the owner fails to submit the report within the 30 -day period, the city may enforce this provision in accordance with applicable law. (10) Building and safety.
a. Must comply with building code. Subject to subsection (e)(10)(b) below, al l ADUs and JADUs must comply with all local building code requirements. b. No change of occupancy. Construction of an ADU does not constitute a Group R occupancy change under the local building code, as described in California Building Code § 310, unless the building official or Code Compliance Department makes a written finding based on substantial evidence in the record that the construction of the ADU could have a specific, adverse impact on public health and safety. Nothing in this subsection (e)(10)(b) prevents the city from changing the occupancy code of a space that was uni nhabitable 29 space or that was only permitted for non-residential use and was subsequently converted for residential use in accordance with this section. (f) Specific ADU requirements. The following requirements apply only to ADUs that require an ADU permit under subsection (d)(2) above.
(1) Maximum size.
a. The maximum size of a detached or attached ADU subject to this subsection (f) is 1,200 square feet.
b. An attached ADU that is c reated on a lot with an existing primary dwelling is further limited to 50 percent of the floor area of the existing primary dwelling. c. Application of other development standards in this subsection (f), such as lot coverage, might further limit the size of the ADU, but no application of the percent-based size limit in subsection (f)(1)(b) above or of an FAR, front setback, lot coverage limit, or open-space requirement may require the ADU to be less than 800 square feet.
(2) Setbacks.
d.a. An ADU that is subject to this subsection (f) must conform to an 18 -foot front-yard setback, subject to subsection (f)(1)(c) above. e.b. An ADU that is subject to this subsection (f) must conform to four-foot side- and rear-yard setbacks.
f.c. No setback is require d for an ADU that is subject to this subsection (f) if the ADU is constructed in the same location and to the same dimensions as a legal existing structure.
(2) (3) Lot coverage. No ADU subject to this subsection (f) may cause the total lot coverage of the lot to exceed 50 percent, subject to subsection (f)(1)(c) above. (3) (4) Passageway. No passageway, as defined by subsection (c)(9) above, is required for an ADU.
(4) (5) Parking.
a. Generally. One off-street parking space is required for each ADU. The parking space may be provided in setback areas or as tandem parking, as defined by subsection (c)(12) above.
b. Exceptions. No parking under subsection (f)(4)(a) is required in the following situations:

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

2. The ADU is located within an architecturally and historically significant historic district.

3. The ADU is part of the proposed or existing primary residence or an accessory structure under subsection (d)(1)(a) above.

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

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

6. When the permit application to create an ADU is submitted with an application to create a new single-family or new multi-family dwelling on the 30 same lot, provided that the ADU or the lot satisfies any other criteria listed in subsections (f)(4)(b)(1) through (5) above.
c. No replacemen t. When a garage, carport, or covered parking structure , or uncovered parking space is demolished in conjunction with the construction of an ADU or converted to an ADU, those off -street parking spaces are not required to be replaced.
(5) (6) Architectural requirements.
a. The materials and colors of the exterior walls, roof, and windows and doors must match the appearance and architectural design of those of the primary dwelling.
b. The roof slope must match that of the dominant roof slope of the primary dwelling. The dominant roof slope is the slope shared by the largest portion of the roof.
c. The exterior lighting must be limited to down-lights or as otherwise required by the building or fire code.
d. The ADU must have an independent exterior entrance, apart from that of the primary dwelling.
e. The interior horizontal dimensions of an ADU must be at least ten feet wide in every direction, with a minimum interior wall height of seven feet. f. Windows and doors of the ADU may not have a direct line of sight to an adjoining residential property. Fencing, landscaping, or privacy glass may be used to provide screening and prevent a direct line of sight. g. All windows and doors in an ADU are less than 30 feet from a property line that is not a public right-of-way line must either be (for windows) clerestory with the bottom of the glass at least six feet above the finished floor, or (for windows and for doors) utilize frosted or obscure glass.
(6) (7) Landscape requirements. Evergreen landscape screening must be planted and maintained between the ADU, and adjacent parcels as follows:
a. At least one 15 -gallon size plant shall be provided for every five linear feet of exterior wall. Alternatively, at least one 24-inch box size plant shall be provided for every ten linear feet of exterior wall.
b. Plant specimens must be at least six feet tall when installed. As an alternative, a solid fence of at least six feet in height may be installed. c. All landscaping must be drought tolerant.
(7) (8) Historical protections. An ADU that is on or within 600 feet of real property that is listed in the California Register of Historic Resources must be located so as to not be visible from any public right-of-way.
(9) Allowed Stories. No ADU subject to this subsection (f) may hav e more than one story, except that an ADU that is attached to the primary dwelling may have the stories allowed under subparagraph (e)(2)(D) of this section. (g) Fees. The following requirements apply to all ADUs that are approved under subsections (d)(1) or (d)(2) above.
(1) Impact fees.
a. No impact fee is required for an ADU that is less than 750 square feet in size.

For purposes of this subsection (g)(1), "impact fee" means a "fee" under the Mitigation Fee Act (Government Code § 66000(b)) and a fee under the Quimby 31 Act (Government Code § 66477). "Impact fee" here does not include any connection fee or capacity charge for water or sewer service. b. Any impact fee that is required for an ADU that is 750 square feet or larger in size must be charged prop ortionately in relation to the square footage of the primary dwelling unit. (E.g., the floor area of the ADU, divided by the floor area of the primary dwelling, times the typical fee amount charged for a new dwelling.)
(2) Utility fees.
a. If an ADU is co nstructed with a new single -family home, a separate utility connection directly between the ADU and the utility and payment of the normal connection fee and capacity charge for a new dwelling are required. b. Except as described in subsection (g)(2)(a), converted ADUs on a single-family lot that are created under subsection (d)(1)(a) above are not required to have a new or separate utility connection directly between the ADU and the utility.

Nor is a connection fee or capacity charge required.
c. Except as described in subsection (g)(2)(a), all ADUs that are not covered by subsection (g)(2)(b) require a new, separate utility connection directly between the ADU and the utility for any utility that is provided by the city. All utilities that are not provided by the city are subject to the connection and fee requirements of the utility provider.

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

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

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

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

1. Notwithstanding subsection (h)(2)(a) above, the city may deny a permit to legalize an existing, but unpermitted ADU or JADU that was constructed before January 1, 2018 2020, if the city makes a finding that correcting a violation is necessary to protect the health and safety of the public or of occupants of the structure to comply with the standards specified in Health and Safety Code section 17920.3.
32 2. Subsection (h)(2)(a) above does not apply to a building that is deemed to be substandard in accordance with California Health and Safety Code § 17920.3.

33 City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0122 Agenda Date: 4/22/2025
Agenda #: C. Category: Consent Calendar
FROM:

Innovation & Technology
SUBJECT:

Authorize the Renewal of VMware Software Licensing and Dell VxRail Hardware Maintenance RECOMMENDATION:

1. Authorize the Purchasing Office to procure software licensing and maintenance support utilizing the Purchasing Policy and Procedure Manual 3.1.5 Non-Competitive Proposal - Purchase by Another Agency.

2. Authorize Purchasing Division to use the National Association of State Procurement Officials (NASPO) ValuePoint contract 7-17-70-40-05 to purchase 3 Year VMware/Broadcom vSAN software licensing ($119,380 per year) and 1 Year Dell VxRail hardware maintenance and support ($152,619.45) from authorized reseller SidePath of Laguna Hills, CA.

COUNCIL GOALS:
· Operate in a businesslike manner by improving services through the effective use of technology.
· Invest in the City’s infrastructure (streets, sewers, parks, etc.) by maintaining and improving the city's existing infrastructure.

DISCUSSION:

In 2020, the Innovation and Technology Department purchased three Dell VxRail server systems from Sidepath, Inc. along with a five-year VMware vSAN software licensing and Dell hardware support agreement. These three VxRail server systems run the majority of the City of Fontana’s infrastructure, hosting essential services such as the City’sdocument management system, business license system, the Police Department’spublic safety systems, and critical databases. The initial five- year licensing and support agreement is set to expire in April 2025.

Renewing the VMware vSAN licensing and Dell VxRail support is essential to ensure that the City’s IT infrastructure remains functional, secure, and stable. Replacing the VxRail server systems would cost the City more than extending the support contract, as the systems are still viable and serviceable.

Per the City’sPurchasing Policies and Procedures Manual, Section 3.1.5 Non-Competitive Proposal may be used when a product is being purchased when the product being required was awarded a bid by another agency at the same price offered to the City of Fontana.

City of Fontana Printed on 4/15/2025Page 1 of 2
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34 File #: 25-0122 Agenda Date: 4/22/2025
Agenda #: C. Category: Consent Calendar
FISCAL IMPACT:

Funds for these purchases have been allocated from the IT Department’s Hardware Replacement Program project 02621003.

MOTION:

Approve staff recommendation.

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35 STATE OF CALIFORNIA
PARTICIPATING ADDENDUM NUMBER 7-17-70-40-05
AMENDMENT 2
Cloud Solutions
Utah NASPO ValuePoint Master Agreement Number AR2472
Carahsoft Technology Corp. (Contractor)

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The parties mutually agree to amend Participating Addendum 7-17-70-40-05 as follows:
1) Section 3. TERMS AND CONDITIONS/INCORPORATION OF DOCUMENTS is updated to read as follows:

A. Terms and conditions listed below are hereby incorporated by reference and made a part of this Participating Addendum as if attached herein and shall apply to the purchase of goods or services made under this Participating Addendum.

Terms can be viewed on the DGS Procurement Division website (https://www.dgs.ca.gov/PD/Resources/Page-Content/Procurement-Division- Resources-List-Folder/Model-Contract-Language).
i. General Provisions – Information Technology (GSPD-401IT) effective 9/5/2014.
ii. Cloud Computing Software as a Service (SaaS) General Provisions effective 6/7/2019.
iii. Cloud Computing Special Provisions for Software as a Service (SaaS) effective 03/15/18.
iv. Cloud Computing Special Provisions for Infrastructure as a Service (IaaS) & Platform as a Service (PaaS), effective 05/11/16.
2) Section 5. AVAILABLE PRODUCTS AND SERVICES is updated to read as follows:

A. The following service offerings from the Utah NASPO ValuePoint Master Agreement Number AR2472 are allowed under this Participating Addendum:
1) Software as a Service (SaaS)
2) Infrastructure as a Service (IaaS)
3) Platform as a Service (PaaS)

3) Section 6. RESTRICTIONS/DISALLOWED PRODUCTS AND SERVICES (STATE AGENCIES ONLY) is updated to read as follows:

A. The following product/service offerings are disallowed for state agencies under this Participating Addendum:
1) Value Added Services, including Additional Value Added Services such as Maintenance Services; Deployment Services; Consulting/Advisory Services; Architectural Design Services; Statement of Work Services; Partner Services, and Training Deployment Services
36 Participating Addendum 7-17-70-40-05
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B. Product and service categories that are available on mandatory California statewide contracts cannot be purchased from this Participating Addendum by State agencies without an exemption. Prior to issuing a purchase order, State agencies are responsible for obtaining an exemption from DGS, and/or California Department of Technology (CDT).

C. State agencies must first obtain approval by the California Department of Technology (CDT) to use this Participating Addendum for Infrastructure as a Service (IaaS) and/or Platform as a Service (PaaS) purchases in accordance with Technology Letter 17-06 (www.cdt.ca.gov/wp-content/uploads/2017/08/TL- 17-06.pdf).
4) Section 14. CONTRACT MANAGEMENT subpart A is updated to read as follows:

A. The primary Contractor Contract Manager for this Participating Addendum shall be as follows:

Contractor: Carahsoft Technology Corp.

Name: Alex Cord
Phone: 703-871-8500
E-Mail: [email protected]
Address: 11493 Sunset Hills Road, Suite 100
Reston, VA 20190

5) Section 9 FULFILLMENT PARTNERS/AUTHORIZED RESELLERS is updated to read as follows:

A. Contractor may use State-approved Authorized Resellers under this Participating Addendum for sales and service functions as defined herein. 1) Orders may be placed with the Contractor or Authorized Resellers. 2) Authorized Resellers must accept purchase orders and accept payment from ordering agencies for products and services offered under this Participating Addendum.
3) Authorized Resellers are responsible for sending a copy of all purchase orders and invoices to the Contractor for compliance with quarterly usage reporting and administrative fee requirements.
4) All purchase documents to Authorized Resellers shall reference the Participating Addendum Number and Contractor Name.
37 Participating Addendum 7-17-70-40-05
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B. Contractor shall be responsible for successful performance and compliance with all requirements in accordance with the terms and conditions under this Participating Addendum, even if work is performed by Authorized Resellers. All State policies, guidelines, and requirements shall apply to Authorized Resellers.

C. Contractor will be the sole point of contact with regard to Participating Addendum contractual matters, reporting, and administrative fee requirements.

D. Subject to the approval of the State, Authorized Resellers may be added on a quarterly basis during the term of the contract. Contractors shall notify the State of any deleted Authorized Resellers or changes to current Authorized Resellers’ contact information in writing at any time during the contract term.

E. Contractor will be required to submit Authorized Reseller requests, in a format specified by the State, to the State Contract Administrator for approval.

F. State
-approved Authorized Resellers will be posted on the State’s Cal eProcure website.

All other terms and conditions of the Participating Addendum shall remain in full force and effect.

IN WITNESS WHEREOF, the parties have executed this Amendment as of the date of execution by both parties below.

STATE OF CALIFORNIA
Department of General Services

CONTRACTOR
Carahsoft Technology Corp.

Agency Name Contractor Name

Authorized Signature Date Signed Authorized Signature Date Signed

Printed Name/Title of Person Signing Printed Name/Title of Person Signing 707 Third Street
West Sacramento, CA 95605

11493 Sunset Hills Road, Suite 100
Reston, VA 20190
Address Address

8/11/2021
Kristina Smith - Director of Contracts
August 11, 2021
Stephanne Lim, MAU2 Supervisor
38 Quotation
Date:02/11/2522892 Mill Creek DriveLaguna Hills, CA 92653 Quotation #:SIDQ52434Phone (949) 748-8700; Fax (949) 748-8706www.sidepath.com Valid Until:03/04/25Prepared By:Jessica DentisProject ID:SIDPROJECT49184 Ship To:Bill To:City of Fontana City of FontanaChris Beck Attn:Chris BeckAttn:8353 Sierra AveFontana, CA 92335-3528 8353 Sierra AveFontana, CA 92335-3528Phone:(909) 350-6791 Phone:(909) 350-6791Email:[email protected] Email:[email protected] Part Number Description Unit Price TotalVxRailThe Current Support Agreement for the EMC VxRail items listed below expires on 3/5/2025.The Support Renewal will cover from 3/6/2025 to 3/5/2026. $2,802.51 $2,802.51Serial #: DE300201104136 - ProSupport Plus HW Support. 1SYSE5601SVENTF VXRAIL 14G E560 1U1N 1S VSAN ENT AF 11S8HPFANE560165GR VXRAIL-500 1S 8 HIGH PERF FAN 165W/GRT 11SE560HSKDM165OL VXRAIL-500 1S E560 165WL HTK DIMM BLNK 1CACHESSD400GB VXR 400GB CACHE SSD 2.5IN 3CAPSSDSATA1.92TBF VXR 1.92TB CAPACITY SATA 2.5IN SSD F 1INSTLCTRYUSAFR640F VXRAIL-500 USA SHIPMOD F 1PS1100WPSF VXRAIL-500 DUAL HOTPLG 1100W PS F 2PWR200VRACK C13-C14 PDU RACK PWR CRD 2M N. AM 1RDIMM2933INFO VXRAIL FACTORYORD RQ 2933MHZ RDIMM 1RISER640CNFG4SNGL VXRAIL-500 RISER R640 CONFIG4 LP 1RRAILKIT1U1NCMAAF VXRAIL-500 A7 RRAILS II WITH CMA 1U1N AF 1TPM1.2MODULEAF VXRAIL-500 TPM 1.2 MODULE AF 1456-111-959 RECOVERPOINT FOR VM FOR 1-NODE HCIA =IB - ProSupport Plus MCSoftware Support. (Serial #: 24603793) 3VXRS1.92SATAF VXR HCI SYSTEM SOFTWRE(CAP 1.92 SATA)=CF - ProSupport Plus 4HR/MC SWSupp VXRL 1VXROSGDPROCSF VXRAIL HCI SYSTEM SOFTWARE(G F)=IG - ProSupport Plus 4HR/MC SW SuppVXRL $2,802.51 $2,802.51Serial #: DE300201104137 - ProSupport Plus HW Support 1SYSE5601SVENTF VXRAIL 14G E560 1U1N 1S VSAN ENT AF 11S8HPFANE560165GR VXRAIL-500 1S 8 HIGH PERF FAN 165W/GRT 11SE560HSKDM165OL VXRAIL-500 1S E560 165WL HTK DIMM BLNK 1CACHESSD400GB VXR 400GB CACHE SSD 2.5IN 3CAPSSDSATA1.92TBF VXR 1.92TB CAPACITY SATA 2.5IN SSD F 1INSTLCTRYUSAFR640F VXRAIL-500 USA SHIPMOD F 1PS1100WPSF VXRAIL-500 DUAL HOTPLG 1100W PS F 2PWR200VRACK C13-C14 PDU RACK PWR CRD 2M N. AM

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Qty Part Number Description Unit Price Total 1RDIMM2933INFO VXRAIL FACTORYORD RQ 2933MHZ RDIMM 1RISER640CNFG4SNGL VXRAIL-500 RISER R640 CONFIG4 LP 1RRAILKIT1U1NCMAAF VXRAIL-500 A7 RRAILS II WITH CMA 1U1N AF 1TPM1.2MODULEAF VXRAIL-500 TPM 1.2 MODULE AF 1456-111-959 RECOVERPOINT FOR VM FOR 1-NODE HCIA =IB - ProSupport Plus MCSoftware Support(Serial #: 24603806) 1VXROSGDPROCSF VXRAIL HCI SYSTEM SOFTWARE(G F)=IG - ProSupport Plus 4HR/MC SW SuppVXRL 3VXRS1.92SATAF VXR HCI SYSTEM SOFTWRE(CAP 1.92 SATA)=CF - ProSupport Plus 4HR/MC SWSupp VXRL $2,802.51 $2,802.51Serial #: DE300201104143 - ProSupport Plus HW Support 1SYSE5601SVENTF VXRAIL 14G E560 1U1N 1S VSAN ENT AF 11S8HPFANE560165GR VXRAIL-500 1S 8 HIGH PERF FAN 165W/GRT 11SE560HSKDM165OL VXRAIL-500 1S E560 165WL HTK DIMM BLNK 1CACHESSD400GB VXR 400GB CACHE SSD 2.5IN 3CAPSSDSATA1.92TBF VXR 1.92TB CAPACITY SATA 2.5IN SSD F 1INSTLCTRYUSAFR640F VXRAIL-500 USA SHIPMOD F 1PS1100WPSF VXRAIL-500 DUAL HOTPLG 1100W PS F 2PWR200VRACK C13-C14 PDU RACK PWR CRD 2M N. AM 1RDIMM2933INFO VXRAIL FACTORYORD RQ 2933MHZ RDIMM 1RISER640CNFG4SNGL VXRAIL-500 RISER R640 CONFIG4 LP 1RRAILKIT1U1NCMAAF VXRAIL-500 A7 RRAILS II WITH CMA 1U1N AF 1TPM1.2MODULEAF VXRAIL-500 TPM 1.2 MODULE AF 1456-111-959 RECOVERPOINT FOR VM FOR 1-NODE HCIA =IB - ProSupport Plus MCSoftware Support. (Serial #: 24603796) 3VXRS1.92SATAF VXR HCI SYSTEM SOFTWRE(CAP 1.92 SATA)=CF - ProSupport Plus 4HR/MC SWSupp VXRL 1VXROSGDPROCSF VXRAIL HCI SYSTEM SOFTWARE(G F)=IG - ProSupport Plus 4HR/MC SW SuppVXRLThe Current Support Agreement for the EMC VxRail items listed below expires on 3/5/2025.The Support Renewal will cover from 3/6/2025 to 3/4/2026. $9,456.89 $9,456.89Serial #: DE300201205040 - ProSupport Plus HW Support(Service Tag #: 172J333) 1SYSP5702SVENTF VXRAIL 14G P570 2U1N 2S NVME ENT AF 12SP570HSDM125GR VXRAIL-500 2SP570 125GR CHASSIS,FAN,HSK 2CACHESSD800GB VXR 800GB CACHE SSD 2.5IN 7CAPSSDSATA3.84TBF VXR 3.84TB CAPACITY SATA 2.5IN SSD F 1HBA330CTRL2SF VXRAIL-500 PERCHBA330+RAIDCTR12GB 2SLP F 1INSTGR13USAR740 VXRAIL-500 USA SHIPMOD GR1300 1INSTLKITSFP28F VXRAIL-500 INSTALL KIT SFP28 25GB F 16MEM32GB2933MTF VXRAIL MEMORY 32GB 2933MT RDIMM F 1NDCSFP28DP25GF VXRAIL-500 NDC SFP28 DP 25GB F 1PROGD62381SF VXR INTEL CPU GD 6238 2.1G 22C/44T 1S F 1PROGD62382SF VXR INTEL CPU GD 6238 2.1G 22C/44T 2S F

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Qty Part Number Description Unit Price Total 1PS1600W-250VACF VXRAIL-500 DUALHOTPLG 1600W PS-250VAC F 2PWR200VRACK C13-C14 PDU RACK PWR CRD 2M N. AM 1RDIMM2933INFO VXRAIL FACTORYORD RQ 2933MHZ RDIMM 1RISER740CNFG6DUAL VXRAIL-500 RISER R740CNFG6 AND BOSS CTR 1RRAILKIT2U1NCMAAF VXRAIL-500 B6 READYRAILS II W/CMA 2U1NAF 1TPM1.2MODULEAF VXRAIL-500 TPM 1.2 MODULE AF 1456-111-959 RECOVERPOINT FOR VM FOR 1-NODE HCIA =IB - ProSupport Plus MCSoftware Support. (Serial #: 24603799) 7VXRO3.84SATAF VXR HCI SYSTEM SOFTWRE(CAP 3.84 SATA)=CF - ProSupport Plus 4HR/MC SWSupp VXRL 2VXROSGDPROCSF VXRAIL HCI SYSTEM SOFTWARE(G F)=IG - ProSupport Plus 4HR/MC SW SuppVXRL $11,271.14 $11,271.14Serial #: DE300201205041 - ProSupport Plus HW Support(Service Tag #: 172K333) 1SYSP5702SVENTF VXRAIL 14G P570 2U1N 2S NVME ENT AF 12SP570HSDM125GR VXRAIL-500 2SP570 125GR CHASSIS,FAN,HSK 2CACHESSD800GB VXR 800GB CACHE SSD 2.5IN 7CAPSSDSATA3.84TBF VXR 3.84TB CAPACITY SATA 2.5IN SSD F 1HBA330CTRL2SF VXRAIL-500 PERCHBA330+RAIDCTR12GB 2SLP F 1INSTGR13USAR740 VXRAIL-500 USA SHIPMOD GR1300 1INSTLKITSFP28F VXRAIL-500 INSTALL KIT SFP28 25GB F 16MEM32GB2933MTF VXRAIL MEMORY 32GB 2933MT RDIMM F 1NDCSFP28DP25GF VXRAIL-500 NDC SFP28 DP 25GB F 1PROGD62381SF VXR INTEL CPU GD 6238 2.1G 22C/44T 1S F 1PROGD62382SF VXR INTEL CPU GD 6238 2.1G 22C/44T 2S F 1PS1600W-250VACF VXRAIL-500 DUALHOTPLG 1600W PS-250VAC F 2PWR200VRACK C13-C14 PDU RACK PWR CRD 2M N. AM 1RDIMM2933INFO VXRAIL FACTORYORD RQ 2933MHZ RDIMM 1RISER740CNFG6DUAL VXRAIL-500 RISER R740CNFG6 AND BOSS CTR 1RRAILKIT2U1NCMAAF VXRAIL-500 B6 READYRAILS II W/CMA 2U1NAF 1TPM1.2MODULEAF VXRAIL-500 TPM 1.2 MODULE AF 1456-111-959 RECOVERPOINT FOR VM FOR 1-NODE HCIA =IB - ProSupport Plus MCSoftware Support. (Serial #: 24603802) 2VXROSGDPROCSF VXRAIL HCI SYSTEM SOFTWARE(G F)=IG - ProSupport Plus 4HR/MC SW SuppVXRL 7VXRO3.84SATAF VXR HCI SYSTEM SOFTWRE(CAP 3.84 SATA)=CF - ProSupport Plus 4HR/MC SWSupp VXRL $8,404.73 $8,404.73Serial #: DE300201205042 - ProSupport Plus HW Support(Service Tag #: 172L333) 1SYSP5702SVENTF VXRAIL 14G P570 2U1N 2S NVME ENT AF 12SP570HSDM125GR VXRAIL-500 2SP570 125GR CHASSIS,FAN,HSK 2CACHESSD800GB VXR 800GB CACHE SSD 2.5IN 7CAPSSDSATA3.84TBF VXR 3.84TB CAPACITY SATA 2.5IN SSD F 1HBA330CTRL2SF VXRAIL-500 PERCHBA330+RAIDCTR12GB 2SLP F 1INSTGR13USAR740 VXRAIL-500 USA SHIPMOD GR1300

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Qty Part Number Description Unit Price Total 1INSTLKITSFP28F VXRAIL-500 INSTALL KIT SFP28 25GB F 16MEM32GB2933MTF VXRAIL MEMORY 32GB 2933MT RDIMM F 1NDCSFP28DP25GF VXRAIL-500 NDC SFP28 DP 25GB F 1PROGD62381SF VXR INTEL CPU GD 6238 2.1G 22C/44T 1S F 1PROGD62382SF VXR INTEL CPU GD 6238 2.1G 22C/44T 2S F 1PS1600W-250VACF VXRAIL-500 DUALHOTPLG 1600W PS-250VAC F 2PWR200VRACK C13-C14 PDU RACK PWR CRD 2M N. AM 1RDIMM2933INFO VXRAIL FACTORYORD RQ 2933MHZ RDIMM 1RISER740CNFG6DUAL VXRAIL-500 RISER R740CNFG6 AND BOSS CTR 1RRAILKIT2U1NCMAAF VXRAIL-500 B6 READYRAILS II W/CMA 2U1NAF 1TPM1.2MODULEAF VXRAIL-500 TPM 1.2 MODULE AF 1456-111-959 RECOVERPOINT FOR VM FOR 1-NODE HCIA =IB - ProSupport Plus MCSoftware Support. (Serial #: 24603809) 7VXRO3.84SATAF VXR HCI SYSTEM SOFTWRE(CAP 3.84 SATA)=CF - ProSupport Plus 4HR/MC SWSupp VXRL 2VXROSGDPROCSF VXRAIL HCI SYSTEM SOFTWARE(G F)=IG - ProSupport Plus 4HR/MC SW SuppVXRL $8,404.73 $8,404.73Serial #: DE300201205043 - ProSupport Plus HW Support(Service Tag #: 173J333) 1SYSP5702SVENTF VXRAIL 14G P570 2U1N 2S NVME ENT AF 12SP570HSDM125GR VXRAIL-500 2SP570 125GR CHASSIS,FAN,HSK 2CACHESSD800GB VXR 800GB CACHE SSD 2.5IN 7CAPSSDSATA3.84TBF VXR 3.84TB CAPACITY SATA 2.5IN SSD F 1HBA330CTRL2SF VXRAIL-500 PERCHBA330+RAIDCTR12GB 2SLP F 1INSTGR13USAR740 VXRAIL-500 USA SHIPMOD GR1300 1INSTLKITSFP28F VXRAIL-500 INSTALL KIT SFP28 25GB F 16MEM32GB2933MTF VXRAIL MEMORY 32GB 2933MT RDIMM F 1NDCSFP28DP25GF VXRAIL-500 NDC SFP28 DP 25GB F 1PROGD62381SF VXR INTEL CPU GD 6238 2.1G 22C/44T 1S F 1PROGD62382SF VXR INTEL CPU GD 6238 2.1G 22C/44T 2S F 1PS1600W-250VACF VXRAIL-500 DUALHOTPLG 1600W PS-250VAC F 2PWR200VRACK C13-C14 PDU RACK PWR CRD 2M N. AM 1RDIMM2933INFO VXRAIL FACTORYORD RQ 2933MHZ RDIMM 1RISER740CNFG6DUAL VXRAIL-500 RISER R740CNFG6 AND BOSS CTR 1RRAILKIT2U1NCMAAF VXRAIL-500 B6 READYRAILS II W/CMA 2U1NAF 1TPM1.2MODULEAF VXRAIL-500 TPM 1.2 MODULE AF 1456-111-959 RECOVERPOINT FOR VM FOR 1-NODE HCIA =IB - ProSupport Plus MCSoftware Support. (Serial #: 24603812) 7VXRO3.84SATAF VXR HCI SYSTEM SOFTWRE(CAP 3.84 SATA)=CF - ProSupport Plus 4HR/MC SWSupp VXRL 2VXROSGDPROCSF VXRAIL HCI SYSTEM SOFTWARE(G F)=IG - ProSupport Plus 4HR/MC SW SuppVXRL $8,404.73 $8,404.73Serial #: DE300201205044 - ProSupport Plus HW Support(Service Tag #: 173K333) 1SYSP5702SVENTF VXRAIL 14G P570 2U1N 2S NVME ENT AF

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Qty Part Number Description Unit Price Total 12SP570HSDM125GR VXRAIL-500 2SP570 125GR CHASSIS,FAN,HSK 2CACHESSD800GB VXR 800GB CACHE SSD 2.5IN 7CAPSSDSATA3.84TBF VXR 3.84TB CAPACITY SATA 2.5IN SSD F 1HBA330CTRL2SF VXRAIL-500 PERCHBA330+RAIDCTR12GB 2SLP F 1INSTGR13USAR740 VXRAIL-500 USA SHIPMOD GR1300 1INSTLKITSFP28F VXRAIL-500 INSTALL KIT SFP28 25GB F 16MEM32GB2933MTF VXRAIL MEMORY 32GB 2933MT RDIMM F 1NDCSFP28DP25GF VXRAIL-500 NDC SFP28 DP 25GB F 1PROGD62381SF VXR INTEL CPU GD 6238 2.1G 22C/44T 1S F 1PROGD62382SF VXR INTEL CPU GD 6238 2.1G 22C/44T 2S F 1PS1600W-250VACF VXRAIL-500 DUALHOTPLG 1600W PS-250VAC F 2PWR200VRACK C13-C14 PDU RACK PWR CRD 2M N. AM 1RDIMM2933INFO VXRAIL FACTORYORD RQ 2933MHZ RDIMM 1RISER740CNFG6DUAL VXRAIL-500 RISER R740CNFG6 AND BOSS CTR 1RRAILKIT2U1NCMAAF VXRAIL-500 B6 READYRAILS II W/CMA 2U1NAF 1TPM1.2MODULEAF VXRAIL-500 TPM 1.2 MODULE AF 1456-111-959 RECOVERPOINT FOR VM FOR 1-NODE HCIA =IB - ProSupport Plus MCSoftware Support. (Serial #: 24603815) 2VXROSGDPROCSF VXRAIL HCI SYSTEM SOFTWARE(G F)=IG - ProSupport Plus 4HR/MC SW SuppVXRL 7VXRO3.84SATAF VXR HCI SYSTEM SOFTWRE(CAP 3.84 SATA)=CF - ProSupport Plus 4HR/MC SWSupp VXRLThe Current Support Agreement for the EMC VxRail items listed below expires on 3/4/2025.The Support Renewal will cover from 3/5/2025 to 3/4/2026. $19,347.85 $19,347.85Serial #: DE300201508347 - ProSupport 4HR(Service Tag #: 5D7ZD33) 1SYSP5702SVENTF VXRAIL 14G P570 2U1N 2S NVME ENT AF 12SP570HSDM125GR VXRAIL-500 2SP570 125GR CHASSIS,FAN,HSK 2CACHESSD800GB VXR 800GB CACHE SSD 2.5IN 7CAPSSDSATA3.84TBF VXR 3.84TB CAPACITY SATA 2.5IN SSD F 1INSTGR13USAR740 VXRAIL-500 USA SHIPMOD GR1300 1INSTLKITSFP28F VXRAIL-500 INSTALL KIT SFP28 25GB F 16MEM32GB2933MTF VXRAIL MEMORY 32GB 2933MT RDIMM F 1NDCSFP28DP25GF VXRAIL-500 NDC SFP28 DP 25GB F 1PS1600W-250VACF VXRAIL-500 DUALHOTPLG 1600W PS-250VAC F 2PWR200VRACK C13-C14 PDU RACK PWR CRD 2M N. AM 1RDIMM2933INFO VXRAIL FACTORYORD RQ 2933MHZ RDIMM 1RISER740CNFG6DUAL VXRAIL-500 RISER R740CNFG6 AND BOSS CTR 1RRAILKIT2U1NCMAAF VXRAIL-500 B6 READYRAILS II W/CMA 2U1NAF 1TPM1.2MODULEAF VXRAIL-500 TPM 1.2 MODULE AF 1456-111-959 RECOVERPOINT FOR VM FOR 1-NODE HCIA =IB - ProSupport Plus MCSoftware Support. (Serial #: 24589764) 7VXRO3.84SATAF VXR HCI SYSTEM SOFTWRE(CAP 3.84 SATA)=CF - ProSupport SoftwareSupport - VxRail

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Qty Part Number Description Unit Price Total 2VXROSGDPROCSF VXRAIL HCI SYSTEM SOFTWARE(G F)=IG - ProSupport Software Support -VxRail $19,347.85 $19,347.85Serial #: DE300201508348 - ProSupport 4HR ELA/TLA Hardware Support(Service Tag #: 5D7YD33) 1SYSP5702SVENTF VXRAIL 14G P570 2U1N 2S NVME ENT AF 12SP570HSDM125GR VXRAIL-500 2SP570 125GR CHASSIS,FAN,HSK 2CACHESSD800GB VXR 800GB CACHE SSD 2.5IN 7CAPSSDSATA3.84TBF VXR 3.84TB CAPACITY SATA 2.5IN SSD F 1INSTGR13USAR740 VXRAIL-500 USA SHIPMOD GR1300 1INSTLKITSFP28F VXRAIL-500 INSTALL KIT SFP28 25GB F 16MEM32GB2933MTF VXRAIL MEMORY 32GB 2933MT RDIMM F 1NDCSFP28DP25GF VXRAIL-500 NDC SFP28 DP 25GB F 1PS1600W-250VACF VXRAIL-500 DUALHOTPLG 1600W PS-250VAC F 2PWR200VRACK C13-C14 PDU RACK PWR CRD 2M N. AM 1RDIMM2933INFO VXRAIL FACTORYORD RQ 2933MHZ RDIMM 1RISER740CNFG6DUAL VXRAIL-500 RISER R740CNFG6 AND BOSS CTR 1RRAILKIT2U1NCMAAF VXRAIL-500 B6 READYRAILS II W/CMA 2U1NAF 1TPM1.2MODULEAF VXRAIL-500 TPM 1.2 MODULE AF 1456-111-959 RECOVERPOINT FOR VM FOR 1-NODE HCIA =IB - ProSupport Plus MCSoftware Support. (Serial #: 24589765) 7VXRO3.84SATAF VXR HCI SYSTEM SOFTWRE(CAP 3.84 SATA)=CF - ProSupport SoftwareSupport - VxRail 2VXROSGDPROCSF VXRAIL HCI SYSTEM SOFTWARE(G F)=IG - ProSupport Software Support -VxRail $19,347.85 $19,347.85Serial #: DE300201508349 - ProSupport 4HR ELA/TLA Hardware Support(Service Tag #: 5D7XD33) 1SYSP5702SVENTF VXRAIL 14G P570 2U1N 2S NVME ENT AF 12SP570HSDM125GR VXRAIL-500 2SP570 125GR CHASSIS,FAN,HSK 2CACHESSD800GB VXR 800GB CACHE SSD 2.5IN 7CAPSSDSATA3.84TBF VXR 3.84TB CAPACITY SATA 2.5IN SSD F 1INSTGR13USAR740 VXRAIL-500 USA SHIPMOD GR1300 1INSTLKITSFP28F VXRAIL-500 INSTALL KIT SFP28 25GB F 16MEM32GB2933MTF VXRAIL MEMORY 32GB 2933MT RDIMM F 1NDCSFP28DP25GF VXRAIL-500 NDC SFP28 DP 25GB F 1PS1600W-250VACF VXRAIL-500 DUALHOTPLG 1600W PS-250VAC F 2PWR200VRACK C13-C14 PDU RACK PWR CRD 2M N. AM 1RDIMM2933INFO VXRAIL FACTORYORD RQ 2933MHZ RDIMM 1RISER740CNFG6DUAL VXRAIL-500 RISER R740CNFG6 AND BOSS CTR 1RRAILKIT2U1NCMAAF VXRAIL-500 B6 READYRAILS II W/CMA 2U1NAF 1TPM1.2MODULEAF VXRAIL-500 TPM 1.2 MODULE AF 1456-111-959 RECOVERPOINT FOR VM FOR 1-NODE HCIA =IB - ProSupport Plus MCSoftware Support. (Serial #: 24589766) 7VXRO3.84SATAF VXR HCI SYSTEM SOFTWRE(CAP 3.84 SATA)=CF - ProSupport SoftwareSupport - VxRail

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Qty Part Number Description Unit Price Total 2VXROSGDPROCSF VXRAIL HCI SYSTEM SOFTWARE(G F)=IG - ProSupport Software Support -VxRail $19,347.85 $19,347.85Serial #: DE300201508350 - ProSupport 4HR ELA/TLA Hardware Support(Service Tag #: 5D7WD33) 1SYSP5702SVENTF VXRAIL 14G P570 2U1N 2S NVME ENT AF 12SP570HSDM125GR VXRAIL-500 2SP570 125GR CHASSIS,FAN,HSK 2CACHESSD800GB VXR 800GB CACHE SSD 2.5IN 7CAPSSDSATA3.84TBF VXR 3.84TB CAPACITY SATA 2.5IN SSD F 1INSTGR13USAR740 VXRAIL-500 USA SHIPMOD GR1300 1INSTLKITSFP28F VXRAIL-500 INSTALL KIT SFP28 25GB F 16MEM32GB2933MTF VXRAIL MEMORY 32GB 2933MT RDIMM F 1NDCSFP28DP25GF VXRAIL-500 NDC SFP28 DP 25GB F 1PS1600W-250VACF VXRAIL-500 DUALHOTPLG 1600W PS-250VAC F 2PWR200VRACK C13-C14 PDU RACK PWR CRD 2M N. AM 1RDIMM2933INFO VXRAIL FACTORYORD RQ 2933MHZ RDIMM 1RISER740CNFG6DUAL VXRAIL-500 RISER R740CNFG6 AND BOSS CTR 1RRAILKIT2U1NCMAAF VXRAIL-500 B6 READYRAILS II W/CMA 2U1NAF 1TPM1.2MODULEAF VXRAIL-500 TPM 1.2 MODULE AF 1456-111-959 RECOVERPOINT FOR VM FOR 1-NODE HCIA =IB - ProSupport Plus MCSoftware Support. (Serial #: 24589767) 7VXRO3.84SATAF VXR HCI SYSTEM SOFTWRE(CAP 3.84 SATA)=CF - ProSupport SoftwareSupport - VxRail 2VXROSGDPROCSF VXRAIL HCI SYSTEM SOFTWARE(G F)=IG - ProSupport Software Support -VxRail $4,837.18 $4,837.18Serial #: DE300201508359 - ProSupport 4HR ELA/TLA Hardware Support(Service Tag #: 5D7VD33) 1SYSP5702SVENTF VXRAIL 14G P570 2U1N 2S NVME ENT AF 12SP570HSDM125GR VXRAIL-500 2SP570 125GR CHASSIS,FAN,HSK 2CACHESSD800GB VXR 800GB CACHE SSD 2.5IN 7CAPSSDSATA3.84TBF VXR 3.84TB CAPACITY SATA 2.5IN SSD F 1HBA330CTRL2SF VXRAIL-500 PERCHBA330+RAIDCTR12GB 2SLP F 1INSTGR13USAR740 VXRAIL-500 USA SHIPMOD GR1300 16MEM32GB2933MTF VXRAIL MEMORY 32GB 2933MT RDIMM F 1NDCSFP28DP25GF VXRAIL-500 NDC SFP28 DP 25GB F 1PS1600W-250VACF VXRAIL-500 DUALHOTPLG 1600W PS-250VAC F 2PWR200VRACK C13-C14 PDU RACK PWR CRD 2M N. AM 1RDIMM2933INFO VXRAIL FACTORYORD RQ 2933MHZ RDIMM 1RISER740CNFG6DUAL VXRAIL-500 RISER R740CNFG6 AND BOSS CTR 1RRAILKIT2U1NCMAAF VXRAIL-500 B6 READYRAILS II W/CMA 2U1NAF 1TPM1.2MODULEAF VXRAIL-500 TPM 1.2 MODULE AF 1456-111-959 RECOVERPOINT FOR VM FOR 1-NODE HCIA =IB - ProSupport Plus MCSoftware Support. (Serial #: 24589768) 7VXRO3.84SATAF VXR HCI SYSTEM SOFTWRE(CAP 3.84 SATA)=CF - ProSupport SoftwareSupport - VxRail

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Qty Part Number Description Unit Price Total 2VXROSGDPROCSF VXRAIL HCI SYSTEM SOFTWARE(G F)=IG - ProSupport Software Support -VxRailThe Current Support Agreement for the EMC VxRail items listed below expires on 6/9/2025.The Support Renewal will cover from 6/10/2025 to 3/4/2026. $2,361.66 $2,361.66Serial #: DE300202513719 - ProSupport Plus HW Supp ELA/TLA VXRL(Service Tag #: B7Q8S33) 1SYSE5601SVENTF VXRAIL 14G E560 1U1N 1S VSAN ENT AF 11S8HPFANE560165GR VXRAIL-500 1S 8 HIGH PERF FAN 165W/GRT 11SE560HSKDM165OL VXRAIL-500 1S E560 165WL HTK DIMM BLNK 1CACHESSD400GB VXR 400GB CACHE SSD 2.5IN 3CAPSSDSATA1.92TBF VXR 1.92TB CAPACITY SATA 2.5IN SSD F 1INSTLCTRYUSAFR640F VXRAIL-500 USA SHIPMOD F 1INSTLKITSFP28F VXRAIL-500 INSTALL KIT SFP28 25GB F 6MEM16GB2933MTF VXRAIL MEMORY 16GB 2933MT RDIMM F 1NDCSFP28DP25GF VXRAIL-500 NDC SFP28 DP 25GB F 1PROGD62381SF VXR INTEL CPU GD 6238 2.1G 22C/44T 1S F 1PS1100WPSF VXRAIL-500 DUAL HOTPLG 1100W PS F 2PWR200VRACK C13-C14 PDU RACK PWR CRD 2M N. AM 1RDIMM2933INFO VXRAIL FACTORYORD RQ 2933MHZ RDIMM 1RISER640CNFG4SNGL VXRAIL-500 RISER R640 CONFIG4 LP 1RRAILKIT1U1NCMAAF VXRAIL-500 A7 RRAILS II WITH CMA 1U1N AF 1TPM1.2MODULEAF VXRAIL-500 TPM 1.2 MODULE AF 1456-111-959 RECOVERPOINT FOR VM FOR 1-NODE HCIA =IB - ProSupport Plus MCSoftware Support. (Serial #: 25093070) 1VXROSGDPROCSF VXRAIL HCI SYSTEM SOFTWARE(G F)=IG - ProSupport Plus 4HR/MC SW SuppVXRL 3VXRS1.92SATAF VXRAIL HCI SYSTEM SOFTWARE(G F)=IG - ProSupport Plus 4HR/MC SW SuppVXRL $2,360.25 $2,360.25Serial #: DE300202513734 - ProSupport Plus HW Supp ELA/TLA VXRL(Service Tag #: B7Q9243) 1SYSE5601SVENTF VXRAIL 14G E560 1U1N 1S VSAN ENT AF 11S8HPFANE560165GR VXRAIL-500 1S 8 HIGH PERF FAN 165W/GRT 11SE560HSKDM165OL VXRAIL-500 1S E560 165WL HTK DIMM BLNK 1CACHESSD400GB VXR 400GB CACHE SSD 2.5IN 3CAPSSDSATA1.92TBF VXR 1.92TB CAPACITY SATA 2.5IN SSD F 1INSTLCTRYUSAFR640F VXRAIL-500 USA SHIPMOD F 6MEM16GB2933MTF VXRAIL MEMORY 16GB 2933MT RDIMM F 1NDCSFP28DP25GF VXRAIL-500 NDC SFP28 DP 25GB F 1PROGD62381SF VXR INTEL CPU GD 6238 2.1G 22C/44T 1S F 1PS1100WPSF VXRAIL-500 DUAL HOTPLG 1100W PS F 2PWR200VRACK C13-C14 PDU RACK PWR CRD 2M N. AM 1RDIMM2933INFO VXRAIL FACTORYORD RQ 2933MHZ RDIMM 1RISER640CNFG4SNGL VXRAIL-500 RISER R640 CONFIG4 LP 1RRAILKIT1U1NCMAAF VXRAIL-500 A7 RRAILS II WITH CMA 1U1N AF

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Qty Part Number Description Unit Price Total 1TPM1.2MODULEAF VXRAIL-500 TPM 1.2 MODULE AF 1456-111-959 RECOVERPOINT FOR VM FOR 1-NODE HCIA =IB - ProSupport Plus MCSoftware Support. (Serial #: 25093071) 3VXRS1.92SATAF VXR HCI SYSTEM SOFTWRE(CAP 1.92 SATA)=CF - ProSupport Plus 4HR/MC SWSupp VXRL 1VXROSGDPROCSF VXRAIL HCI SYSTEM SOFTWARE(G F)=IG - ProSupport Plus 4HR/MC SW SuppVXRL $2,360.25 $2,360.25Serial #: DE300202513737 - ProSupport Plus HW Supp ELA/TLA VXRL(Service Tag #: B7Q9S33) 1SYSE5601SVENTF VXRAIL 14G E560 1U1N 1S VSAN ENT AF 11S8HPFANE560165GR VXRAIL-500 1S 8 HIGH PERF FAN 165W/GRT 11SE560HSKDM165OL VXRAIL-500 1S E560 165WL HTK DIMM BLNK 1CACHESSD400GB VXR 400GB CACHE SSD 2.5IN 3CAPSSDSATA1.92TBF VXR 1.92TB CAPACITY SATA 2.5IN SSD F 1INSTLCTRYUSAFR640F VXRAIL-500 USA SHIPMOD F 6MEM16GB2933MTF VXRAIL MEMORY 16GB 2933MT RDIMM F 1NDCSFP28DP25GF VXRAIL-500 NDC SFP28 DP 25GB F 1PROGD62381SF VXR INTEL CPU GD 6238 2.1G 22C/44T 1S F 1PS1100WPSF VXRAIL-500 DUAL HOTPLG 1100W PS F 2PWR200VRACK C13-C14 PDU RACK PWR CRD 2M N. AM 1RDIMM2933INFO VXRAIL FACTORYORD RQ 2933MHZ RDIMM 1RISER640CNFG4SNGL VXRAIL-500 RISER R640 CONFIG4 LP 1RRAILKIT1U1NCMAAF VXRAIL-500 A7 RRAILS II WITH CMA 1U1N AF 1TPM1.2MODULEAF VXRAIL-500 TPM 1.2 MODULE AF 1456-111-959 RECOVERPOINT FOR VM FOR 1-NODE HCIA =IB - ProSupport Plus MCSoftware Support. (Serial #: 25093072) 3VXRS1.92SATAF VXR HCI SYSTEM SOFTWRE(CAP 1.92 SATA)=CF - ProSupport Plus 4HR/MC SWSupp VXRL 1VXROSGDPROCSF VXRAIL HCI SYSTEM SOFTWARE(G F)=IG - ProSupport Plus 4HR/MC SW SuppVXRL Dell Switches The Current Support for the Dell items listed below expires on differing dates.The Support Renewal will cover for 1 year. $911.60 $1,823.20 2Dell Switch S5212F Dell Switch S5212F - ProSupport:Next Business Day Onsite Service AfterProblem Diagnosis with ProSupport:7x24 HW/SW Technical Support andAssistance.(Service Tag #s: 7BWD9Z2, 7BRB9Z2)The Current Support expires on 4/1/2025. The Support Renewal covers from4/2/2025 to 4/1/2026. $1,783.94 $3,567.88 2Dell Switch S5212F Dell Switch S5212F - ProSupport 4-Hour 7x24 Onsite Service, ProSupport4-Hour 7x24 Technical Support and Assistance and ProSupport OS10Enterprise Software Support-Maintenance.(Service Tag #s: 7FNB9Z2, 7FHD9Z2)The Current Support expires on 5/1/2025. The Support Renewal covers from5/2/2025 to 5/1/2026.

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Qty Part Number Description Unit Price Total $1,783.94 $1,783.94 1Dell Switch S5212F Dell Switch S5212F - ProSupport 4-Hour 7x24 Onsite Service, ProSupport4-Hour 7x24 Technical Support and Assistance and ProSupport OS10Enterprise Software Support-Maintenance.(Service Tag #: 4RBRY03)The Current Support expires on 6/7/2025. The Support Renewal covers from6/8/2025 to 6/7/2026. $1,783.94 $1,783.94 1Dell Switch S5212F Dell Switch S5212F - ProSupport 4-Hour 7x24 Onsite Service, ProSupport4-Hour 7x24 Technical Support and Assistance and ProSupport OS10Enterprise Software Support-Maintenance.(Service Tag #: 3RBRY03)The Current Support expires on 7/23/2025. The Support Renewal covers from7/24/2025 to 7/23/2026. SubTotal $152,619.45 Grand Total $152,619.45Terms and Conditions are identical to those currently in force.Payment Terms from Ship Date/Order Placement Date:Net 30 If you have any questions regarding this quotation, please contact: Krunal Patel(949) [email protected] THANK YOU FOR YOUR BUSINESS!

Page 10 of 10 ends

Quotation
Date:02/26/2522892 Mill Creek DriveLaguna Hills, CA 92653 Quotation #:SIDQ52698Phone (949)748-8700; Fax (949)748-8706www.sidepath.com Valid Until:03/28/25Prepared By:Kristen NoremProject ID:SIDPROJECT49433 Ship To:Bill To:City of Fontana City of FontanaChris Beck Attn:Chris BeckAttn:8353 Sierra AveFontana, CA 92335-3528 8353 Sierra AveFontana, CA 92335-3528Phone:(909) 350-6791 Phone:(909) 350-6791Email:[email protected] Email:[email protected] Qty Item Code Description Unit Price Ext. PriceNASPO State of California Participating Addendum 7-17-70-40-05 Contract AR2472 VMWare VCF 3 Year Commit - AnnualizedYear 1 - 04/08/2025 - 04/07/2026 508 $235.00 $119,380.00VCF-CLD-FND-5 VMWARE CLOUD FOUNDATION 5 - Year 1 - 02/04/2025 -02/03/2026Year 2 - 04/08/2026 - 04/07/2027 508 $235.00 $119,380.00VCF-CLD-FND-5 VMWARE CLOUD FOUNDATION 5 - Year 2 - 02/04/2026 -02/03/2027Year 3 - 04/08/2027 - 04/07/2028 508 $235.00 $119,380.00VCF-CLD-FND-5 VMWARE CLOUD FOUNDATION 5 - Year 3 - 02/04/2027 -02/03/2028Payment Terms from Ship Date: NET 30Pricing does not include Sales Tax or Shipping/Handling unless specifically stated in quote. Product Total $358,140.00CA Shipments: CA Electronic Waste Recycling (eWaste) Fee will apply to monitors, laptops or tablets. Taxes $0.00Shipping $0.00Grand Total $358,140.00Unless you have a separate written agreement that specifically applies to this order, your order will be subject to and governed by Sidepath's Purchasing Terms and Conditions,which are located at: www.sidepath.com/terms. The Purchasing Terms and Conditions are incorporated herein by reference and available in hard copy upon your request.Note: Sidepath will collect sales tax for orders shipped to these six states: AZ, CA, MA, NV, TX and WA. For orders shipped outside of these six states, it will be the customer'sresponsibility to report the tax as Sales & Use Tax.Please contact me if I can be of further assistance.

THANK YOU FOR YOUR BUSINESS!
Accepted by:_________________________________ Title:_______________________________ Date:___________ PO:_______________________ If you have any questions regarding this quotation, please contact:Krunal Patel | (949) 396-3743 | [email protected] document is proprietary and confidential and is intended solely for the recipient. No part of this document may be disclosed in any manner to a third party who is not affiliated with the recipient. Page 1 of 1Sidepath -508c VCF - 3y Annual 49 City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0133 Agenda Date: 4/22/2025
Agenda #: D. Category: Consent Calendar
FROM:

Engineering
SUBJECT:

Award a Construction Contract for the 2024/25 Citywide Pavement Rehabilitation Project (DE-25-102 -SB)
RECOMMENDATION:

1. Award bid and authorize the City Manager to execute a construction contract with Matich Corporation for the construction of the 2024/25 Citywide Pavement Rehabilitation Project, in the amount of $4,476,528.27 and authorize a 10% contingency in the amount of $447,652.83 (DE-25- 102-SB).

2. Approve and authorize the City Manager to execute any and all utility agreements, utility easements, and subsequent agreements on behalf of the City of Fontana for the 2024/25 Citywide Pavement Rehabilitation Project.

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

DISCUSSION:

The City of Fontana’s 7 Year Pavement Management Plan includes the streets associated with the 2024/25 Citywide Pavement Rehabilitation Project. The proposed improvements include the rehabilitation of existing asphalt pavement and the reconstruction of ADA compliant curb ramps. The project will improve ride quality, increase pavement service life, and enhance the safety of both vehicular and pedestrian traffic.

On March 13, 2025, bids for this project were opened. A total of six (6) bids were received, ranging from $4,476,528.27 to $6,878,123.94. The engineer’s estimate was $6,677,357.00. After reviewing the proposed bid documents and performing reference checks, Engineering staff has determined Matich Corporation to be the lowest and responsible bidder in the amount of $4,476,528.27.

City of Fontana Printed on 4/15/2025Page 1 of 2
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50 File #: 25-0133 Agenda Date: 4/22/2025
Agenda #: D. Category: Consent Calendar
FISCAL IMPACT:

The fiscal impact associated with the approval of this item is $4,476,528.27 with a $447,652.83 contingency, for a total of $4,924,181.10 and is included in the 2024/25 budget in the Pavement Rehabilitation Projects #37600018, #37600077, #37600027, and #37600028.

MOTION:

Approve staff recommendation.

City of Fontana Printed on 4/15/2025Page 2 of 2
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51 Bid Results
FY 2024-2025 Citywide Pavement Rehabilitation Project
DE-25-102-SB

1. Matich Corporation $4,476,528.27
Redlands, CA

2. Vance Corporation $4,515,285.90
Beaumont, CA

3. Onyx Paving Company, Inc. $5,369,000.00
Anaheim, CA

4. Calmex Engineering, Inc. $5,526,172.54
Bloomington, CA

5. All American Asphalt $6,168,545.17
Corona, CA

6. R.J. Noble Company $6,878,123.94
Orange, CA

52 City of Fontana
FY 2024-2025 Citywide Pavement Rehabilitation Project (DE-25-102-SB), bidding on 03/13/2025 2:00 PM (PDT)

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PlanetBids
53 City of Fontana
FY 2024-2025 Citywide Pavement Rehabilitation Project (DE-25-102-SB), bidding on 03/13/2025 2:00 PM (PDT)

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PlanetBids
54 City of Fontana
FY 2024-2025 Citywide Pavement Rehabilitation Project (DE-25-102-SB), bidding on 03/13/2025 2:00 PM (PDT)

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PlanetBids
55 City of Fontana
FY 2024-2025 Citywide Pavement Rehabilitation Project (DE-25-102-SB), bidding on 03/13/2025 2:00 PM (PDT)

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PlanetBids
56 City of Fontana
FY 2024-2025 Citywide Pavement Rehabilitation Project (DE-25-102-SB), bidding on 03/13/2025 2:00 PM (PDT)

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Printed 03/19/2025
PlanetBids
57 City of Fontana
FY 2024-2025 Citywide Pavement Rehabilitation Project (DE-25-102-SB), bidding on 03/13/2025 2:00 PM (PDT)

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Printed 03/19/2025
PlanetBids
58 SANTA ANA AVE

NUEVO CTALISO DR

SANTA ANA AVECTSHELLYNUEVO DRBENNETT DR

SIERRA AVE

ASH DRJUNIPER AVE

CYPRESS AVE

OLEANDER AVE

ALISO DR
PEPPER

TARRAGONMINT LEAF

SUGARLNCAYENNE WAYSTALISODRJAGGERY

LEMON GRASS AVE

PARSLEYLNSAFFRON STCORIANDER PLMANILADRBAYLEAF

CILANTRO CT

NUTMEGCIRWAYDRLN

WAYMANILA CT
N

NINDEX MAP

VICINITY MAP
SHEET 4SHEET 5
SHEET 6
SHEET 7

CITRUS AVE

SIERRA AVE

SIERRA AVE

CITRUS AVE

JURUPA AVEJURUPA AVE
I-10 HWY
59 BLANCHARD AVE

IRIS DRTANGELO AVELOMBARDY AVEMARYGOLD AVELOMBARDY

MANGO DRMARYGOLD AVE

CTPLEL MOLINOTULLOCKEL MOLINO STTULLOCK ST

ENCINA AVETAMARIND AVEMALLORY

SAN BERNARDINO AVELOMBARDY AVETANGELO AVE

TULLOCK STKAISER CTBLANCHARD AVETULLOCK ST

MANGO AVEMANGO LNKEMPSTER AVEMANGO AVE
I-10 FREEWAY

VALLEY BLVDVALLEY BLVD

ALDER AVE

PALMETTO AVE

SIERRA AVE

SAN BERNARDINO AVEDEODAR AVEBOXWOOD AVELOMBARDY AVETANGELO AVE

ALDER AVE

TAMARIND AVEDEODAR AVEKAISER CTKEMPSTER AVE

ACACIA AVEEMERALD AVE

PALMETTO AVE

MANGO AVE

SIERRA AVE
LNDR

INDEX MAPN

VICINITY MAPN

VALLEY AVE
SHEET 5SHEET 4SHEET 5

SIERRA AVE

SIERRA AVE

VALLEY AVEMARYGOLD AVEMARYGOLD AVEPALMETTO AVE

PALMETTO AVE

ALDER AVE

ALDER AVESAN BERNARDINO AVESAN BERNARDINO AVE
60 DIANTHUS AVE

HIBISCUS DR

PALM LNPINE AVE

BUCKEYE CT

DORSEY WAY

DIANTHUS AVE

MAPLE AVE

LOCUST AVE

ALDER AVE

LOCUST AVE

ALDER AVE

MERRILL AVE

ATHOL ST

CROCE DRDUMOND DRWILLIAMS CTSPOHN CTBONNIE LN

MAPLE AVE

FERNDALE AVE

FRANKFORT AVEBUCKEYE DRGRACE STHIBISCUS STATHOL STBUCKEYE DRPINE AVELAUREL AVE

ATHOL STEVERGREEN CTAMBER CT

PALM LNROSECREST DRORCHID AVEGRANADA AVE

WILLIAMS RD

AVECERES AVE

ORANGE WAYDUMOND DRSPOHN DR

BOXWOOD AVEHIBISCUS CT

PINE AVETANGELO AVEHIBISCUS STORCHID DRGRANADA AVEGRANADA AVE

PINEDALE AVECTCTCRISS AVEORANGE WAYFRANKFORT STWAY

CITRONFRANKFORT AVEBUCKEYE DR

WAYGRACE ST

GRACE STMERRILL AVE

DORSEYORANGEDORSEY STDORSEY STORANGE CTCITRON AVECERES AVELAUREL AVECITRON AVEBOXWOODTANGELO AVECTCERES AVEANASTASIA CT

GRANADA AVE

BOXWOOD AVE

EVERGREEN AVE

TANGELO CTMERRILL AVEGRANADA AVEGRANADA AVE

TANGELOLOMBARDYCT

CERES AVEBAYBERRYMETROLINK

INDEX MAP

VICINITY MAPN
N
SHEET 4SHEET 5

ALDER AVEALDER AVELOCUST AVELOCUST AVEMERRILL AVEMERRILL AVERANDALL AVERANDALL AVE

ARROW BLVDARROW BLVD

LAUREL AVELAUREL AVE
61 SOUTH HIGHLAND AVE

BASELINE AVE

SIERRA AVEWALNUT STSIERRA AVE

MICALLEF ST

BASELINE AVE

WALNUT VILLAGE PKWY

MICALLEF STSIERRA AVE

INDEX MAPN
SHEET 4
SHEET 5
SHEET 6

VICINITY MAPN

SIERRA AVE

SIERRA AVE

S HIGHLAND AVEWALNUT STWALNUT VILLAGE PKWY

BASELINE AVEBASELINE AVE

JUNIPER AVE

JUNIPER AVEMANGO AVE

MANGO AVESIERRA AVE
62 SIERRA LAKES PKWY

SUMMIT AVE

SIERRA AVESIERRA AVE

SUMMIT AVE

INDEX MAP
VICINITY MAPSHEET 4
SHEET 5
N
N
SIERRA AVEI-210 FWYI-210 FWY

SIERRA AVECITRUS AVE

CITRUS AVE

SUMMIT AVESUMMIT AVE

SIERRALAKESPKWYCLUBHOUSE DR
63 City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0134 Agenda Date: 4/22/2025
Agenda #: E. Category: Consent Calendar
FROM:

Engineering
SUBJECT:

Final Acceptance of the Rose Avenue Pavement Rehabilitation Project (DE-24-86-SB) RECOMMENDATION:

Accept as complete the work performed by Dash Construction Company, Inc. for the Rose Avenue Pavement Rehabilitation Project.

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

DISCUSSION:

On February 27, 2024, the City Council authorized the award of a construction contract to the lowest responsive and responsible bidder (Dash Construction Company, Inc.) in the amount of $217,777.00 with a 10% contingency of $21,777.70 for the Rose Avenue Pavement Rehabilitation Project (PN37600013). The proposed improvements for the Rose Avenue Pavement Rehabilitation Project consisted of the full depth removal and replacement of the existing asphalt pavement, drive approach and cross gutter repair, and curb and gutter replacement.

Dash Construction Company, Inc. completed the project on February 13, 2025. The project was successfully completed for the final amount of $239,374.00, an increase of 9.9% from the original contract amount of $217,777.00 and $180.70 under the total authorized budget. All work has been completed to the satisfaction of the City of Fontana.

FISCAL IMPACT:

As part of the action to accept the construction of the Rose Avenue Pavement Rehabilitation Project as complete, the City will take over the operation and maintenance of this public infrastructure.

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

MOTION:

Approve staff recommendation.

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64 NO.DATE123456

REVISIONS
DRAWN BY:DESIGNED BY:CHECKED BY:

DATEDATEDATET.R.T.R.

NOV -2023W.B. CITY OF FONTANA, CALIFORNIA
W.B.T.R.T.R.NOV -2023NOV -2023

INDEX MAP
VICINITY MAPSHEET INDEX:

SHEET 3
65 City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0138 Agenda Date: 4/22/2025
Agenda #: F. Category: Consent Calendar
FROM:

Engineering
SUBJECT:

Award a Construction Contract for the Active Transportation Program (ATP) Date Elementary School Street Improvements Project Federal ID No. ATPSB1L-5307(032), (Bid No. DE-24-248-SB) RECOMMENDATION:

1. Award bid and authorize the City Manager to execute a construction contract with Universal Construction and Engineering for the construction of the Active Transportation Program (ATP) Date Elementary School Street Improvements Project Federal ID No. ATPSB1L-5307(032), in the amount of $1,531,066.25 and authorize a 10% contingency in the amount of $153,106.63 (Bid No. DE-24-248-SB).

2. Approve and authorize the City Manager to execute any and all utility agreements, utility easements, and subsequent agreements on behalf of the City of Fontana for the Active Transportation Program (ATP) Date Elementary School Street Improvements Project Federal ID No. ATPSB1L-5307(032), (Bid No. DE-24-248-SB).

COUNCIL GOALS:
· To enhance the local environment for future generations and create a healthy economic and environmental future by creating neighborhoods that are attractive, safe and convenient for walkers and bicyclists.
· To invest in the City’s infrastructure (streets, sewers, parks, etc.) by maintaining and improving the city's existing infrastructure.
· To invest in the City’s infrastructure (streets, sewers, parks, etc.) by providing for the development of new infrastructure.
· To invest in the City’s infrastructure (streets, sewers, parks, etc.) by focusing on relief of traffic congestion.
· To invest in the City’s infrastructure (streets, sewers, parks, etc.) by utilizing Measure-I Funds wisely.

DISCUSSION:

On May 10, 2022, the City Council accepted an Active Transportation Program Grant in the amount of $1,808,000.00 to fund the design and construction of a street improvements project around Date Elementary that would construct missing sidewalks, ADA compliant curb ramps, high visibility crosswalks, and Class II bike lanes. The project limits are along Fontana Avenue between Athol City of Fontana Printed on 4/15/2025Page 1 of 2
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Agenda #: F. Category: Consent Calendar
Street and Merrill/Oleander Avenues within the vicinity of Date Elementary School.

On March 20, 2025, at 2:00 p.m., the bids for this contract were opened. A total of twelve (12) bids were received ranging from $1,531,066.25 to $2,348,408.00. Universal Construction and Engineering is the lowest bidder in the amount of $1,531,066.25. The Engineer’s Estimate was $1,897,173.98.

After reviewing the proposed bid documents, Purchasing and Engineering staff have determined Universal Construction and Engineering to be the lowest responsive and responsible bidder.

FISCAL IMPACT:

The fiscal impact associated with the approval of this item is $1,684,172.88 for the full term of the construction contract. Budget adjustments will be included in the next FY 2024-25 quarterly budget report to increase revenues and allocate the ATP grant construction phase award in the amount of $1,609,000 into grant fund 37600029-301-D.

MOTION:

Approve staff recommendation.

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PROJECT LOCATIONDATE ELEMENTARY SCHOOLSTREET IMPROVEMENTS PROJECT 68 Bid Results

DATE ELEMENTARY SCHOOL STREET IMPROVEMENTS PROJECT
[Federal ID No. ATPSB1L-5307(032)]
(DE-24-248-SB)

1. Universal Construction and Engineering $1,531,066.25 Palm Desert, CA

2. Hillcrest Contracting, Inc $1,561,088.98
Corona, CA

3. Zeco, Inc. $1,599,387.25
Yorba Linda, CA

4. Gentry General Engineering, Inc. $ 1,692,413.00
Colton, CA

5. Aneen Construction, Inc $1,711,474.40
Riverside, CA

6. Alfaro Communications Construction, Inc $1,761,755.62 Compton, CA

7. CT&T Concrete Paving, Inc $1,829,260.40
Diamond Bar, CA

8. JT Construction Group, Inc $1,856,887.00
Duarte, CA

9. Dash Construction Company, Inc $1,885,460.00
Woodland Hills, CA

10. Roadway Engineering & Construction Corp. $1,890,900.00 Perris, CA

11. Venture Construction & Management $2,178,248.00
Corona, CA

12. Addison-Miller, Inc $2,348,408.00
Orange, CA
69 City of Fontana
Date Elementary Safe Routes to School Project: Federal ID No. ATPSB1L-5307(032) (DE-24-248-SB), bidding on 03/20/2025 2:00 PM (PDT)

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Date Elementary Safe Routes to School Project: Federal ID No. ATPSB1L-5307(032) (DE-24-248-SB), bidding on 03/20/2025 2:00 PM (PDT)

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73 City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0143 Agenda Date: 4/22/2025
Agenda #: G. Category: Consent Calendar
FROM:

Engineering
SUBJECT:

Adoption of a Resolution Accepting, Pursuant to the Certified Southridge Village Specific Plan Environmental Impact Report No. 81-3 (SCH No. 81052210) and Adopted Addendum, the Conveyance of that Certain Property Located at Live Oak Avenue, West of Old Live Oak Avenue, from the Fontana Public Financing Authority, Declaring a Portion of the Property a Right-of-Way and Establishing Conditions for Final Acceptance of Related Roadway Improvements RECOMMENDATION:

1. Adopt Resolution No. 2025-021, accepting, pursuant to the certified Southridge Village Specific Plan Environmental Impact Report No. 81-3 (SCH No. 81052210) and Adopted Addendum, the conveyance of that certain property located at Live Oak Avenue, west of Old Live Oak Avenue, from the Fontana Public Financing Authority, declaring a portion of the property a right-of-way, and establishing conditions for final acceptance of related roadway improvements and directing staff to file a Notice of Determination.

2. Provide the City Manager with the authority to take all necessary actions to ensure the successful execution and completion of the conveyance of that certain real property located at Live Oak Avenue, west of Old Live Oak Avenue in the City of Fontana, from the Fontana Public Financing Authority to the City of Fontana.

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

DISCUSSION:

In December 1981, the Fontana City Council certified the Southridge Village Specific Plan Environmental Impact Report No. 81-3 (SCH No. 81052210) (“Southridge EIR”).

On June 20, 2023, the City’s Planning Commission adopted a resolution approving General Plan Amendment No. 22-008, Specific Plan Amendment No. 22-004, Tentative Parcel Map 20565, Tentative Tract Map 20568, Design Review No. 22-043 and Administrative Site Plan No. 23-014 for the Heights at Southridge project (“Project”).

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Guidelines and Section 8.06 of the City of Fontana’s 2019 Local CEQA Guidelines on July 25, 2023, the City Council adopted an Addendum to the Southridge EIR.

On July 25, 2023, the City Council adopted resolution 2023-085 approving the General Plan and Specific Plan amendments, Tentative Parcel and Tract Maps, Design Review and Administrative Site Plan for the Project. The tract map includes a condition of approval that requires right-of-way to be dedicated to the City based on the new configuration of Old Live Oak Avenue, which traverses the northwest corner of Southridge Park.

Southridge Park consists of several lots, some of which are owned by the Fontana Public Financing Authority (“FPFA”). The subject right-of-way is over one of the lots owned by the Fontana Public Financing Authority. To proceed with construction of the improved right-of-way, the City must obtain title to the lot and declare a portion of it a public right-of-way to allow for the construction of a new public roadway, provide public utility access to the property, and, pursuant to the Streets and Highways Code Section 1806, to accept the realigned Old Live Oak Avenue into the City’s street system when construction is complete and complies with City standards (“Proposed Project”).

Accepting the Fontana Public Financing Authority’s conveyance of the parcel would allow the City to proceed with the aforementioned course of action.

Based on the Southridge Village Specific Plan FEIR and Addendum, and pursuant to State CEQA Section 15164, staff recommends that preparation of a subsequent or supplemental EIR is not required for the Proposed Project as all environmental impacts of the Proposed Project have been addressed within the Southridge Village Specific Plan FEIR and the Addendum, there are no new or additional mitigation measures or alternatives are required, and there is no substantial evidence in the administrative record supporting a fair argument that the Proposed Project may result in any significant environmental impacts beyond those analyzed in the Southridge Village Specific Plan FEIR and Addendum.

FISCAL IMPACT:

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

MOTION:

Approve staff recommendation.

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RESOLUTION NO. 2025-021

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

CALIFORNIA FOR THE ACCEPTANCE OF , PURSUANT TO THE

CERTIFIED SOUTHRIDGE VILLAGE SPECIFIC PLAN
ENVIRONMENTAL IMPACT REPORT NO. 81 -3 (SCH NO. 81052210)

AND ADOPTED ADDENDUM, THE CONVEYANCE OF THAT CERTAIN

REAL PROPERTY LOCATED AT LIVE OAK AVENUE WEST OF OLD

LIVE OAK AVENUE, IN THE CITY OF FONTANA, FROM THE FONTANA

PUBLIC FINANCING AUTHORITY , DECLARING A PORTION OF THE

PROPERTY A RIGHT OF WAY, AND ESTABLISHING CONDITIONS

FOR FINAL ACCEPTANCE OF RELATED ROADWAY
IMPROVEMENTS.

WHEREAS, the Fontana Public Financing Authority (“FPFA”) is the owner of that certain real property located within the City of Fontana, identified as Assessor Parcel Number 0237-212-25 (“Parcel”); and

WHEREAS, in December 1981, the Fontana City Council (“City Council”) certified the Southridge Village Specific Plan Environmental Impact Report No. 81 -3 (SCH No. 81052210) (“Southridge EIR”) and, pursuant to Sections 15162 and 15164 of the California Environmental Quality Act (“CEQA”) Guidelines and Section 8.06 of the City of Fontana’s 2019 Local CEQA Guidelines on July 25, 2023, the City Council adopted an Addendum to the Southridge EIR; and

WHEREAS, on July 25, 2023, the City Council adopted Resolution Number 2023- 085, attached hereto as Exhibit A and incorporated herein, approving general plan and specific plan amendments, a tentative parcel, tentative tract maps, a design review and an administrative site plan for the Southridge Project; and

WHEREAS, Resolution Number 2023 -085 included a condition of approval that required an improved right-of-way be dedicated to the City of Fontana (“City”) based on the new configuration of Old Live Oak Avenue which traverses the northwest corner of Southridge Park (“Project”); and

WHEREAS, in accord ance with Resolution Number 2023-085, KB Home (“Developer”) is constructing the right-of-way for road and utility purposes (“Roadway”), which intersects with the Parcel; and

WHEREAS, on April 22, 2025, FPFA dedicated in fee simple to the City the Parcel, as described in the attached grant deed (“Grant Deed”), attached hereto as Exhibit B and incorporated herein; and

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WHEREAS, the City Council finds that accepting the Parcel is in the public interest and will assist in facilitating the development of the Roadway on a portion of the Parcel ; and
WHEREAS, the City desires to accept FPFA’s conveyance of the Parcel and desires to declare a portion of the Parcel a right-of-way for road and utility purposes as more particularly described in Exhibit C and reflected in Exhibit D, both of which are attached hereto and incorporated herein by this reference (“Right-of-Way”); and

WHEREAS, the City’s acceptance of the entirety of the Roadway, including improvements within the Parcel is contingent upon the Developer’s completion of construction of the Roadway to City standards and the City’s inspection and acceptance of the completed Roadway.

NOW, THEREFORE, BE IT RESOLVED , determined and ordered by the City Council of the City of Fontana:

Section 1. Incorporation of Recitals . The City Council hereby finds and determines that the Recitals of this Resolution are true and correct and are hereby incorporated into this Resolution as though fully set forth herein.

Section 2. CEQA. Compliance with California Environmental Quality Act . As the decision-making body for the Project, the City Council has reviewed and considered the Southridge Village Specific Plan FEIR and adopted Addend um, any oral or written comments received, and the administrative record prior to making any decision on the Proposed Project. The City Council finds that the adopted Addendum and Southridge Village Specific Plan FEIR contain a complete and accurate report ing of all of the environmental impacts associated with the Proposed Project.

Section 3. Findings on the Necessity for a Subsequent or Supplemental Environmental Impact Report. Based on the substantial evidence set forth in the record, including but not limited to, the Southridge Village Specific Plan FEIR, the adopted Addendum, and all related information presented to the City Council, the Commission finds, pursuant to State CEQA section 15164 and Section 8.06 of the City of Fontana’s 2019 Local Guid elines for Implementing CEQA, that the adopted Addendum to the Southridge Village Specific Plan FEIR is the appropriate document for the Proposed Project. The City Council further finds that the preparation of a subsequent or supplemental EIR is not required for the Proposed Project.

Section 4. Findings on Environmental Impacts. Having considered the Addendum, the administrative record, the Southridge Village Specific Plan FEIR and all written and oral evidence presented to the City Council, the Council finds that all environmental impacts of the Proposed Project have been address ed within the Southridge Village Specific Plan FEIR and the Addendum, that no new or additional mitigation measures or alternatives are required, and that there is no substantial evidence in the administrative record supporting that the Proposed Project ma y result in any significant environmental impacts beyond those analyzed in the Southridge Village 77 Resolution No. 2025-021
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Specific Plan FEIR. The City Council finds that the adopted Addendum and Southridge Village Specific Plan FEIR contains a complete, objective, and accurate re porting of the environmental impacts associated with the Proposed Project and reflects the independent judgment and analysis of the City Council.

Section 5. Acceptance of Parcel. The City Council hereby acknowledges and accepts the conveyance of the Parcel from FPFA in fee simple, as described in the Grant Deed, and directs staff to file a Notice of Determination.

Section 6. Declaration of Right -of-Way. The City Counc il hereby declares a portion of the Parcel a right-of-way for road and utility purposes as described in Exhibit C and reflected in Exhibit D.

Section 7. Acceptance of Roadway. The City’s acceptance of the entirety of the Roadway, including the improvements within the Parcel, is contingent upon the Developer’s completion of construction of the Roadway to City standards, and subject to the subsequent approval of the City Council.

Section 8. Effective Date. This Resolution shall become effective immediately.

Section 9. Severability. If any provision of this Resolution or the application of any such provision to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The City Council declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution.

Section 10. Certification. The City Clerk shall certify to the adoption of this Resolution.

Section 11. Custodian of Records. The documents and materials that constitute the record of proceedings on which this Resolution is based are located at the City Clerk’s office located at 8353 Sierra Avenue, Fontana, CA 92335. The custodian of records is the City Clerk.

APPROVED AND ADOPTED this 22nd day of April, 2025.

READ AND APPROVED AS TO LEGAL FORM:

________________________________
City Attorney

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

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RECORDING REQUESTED BY
City of Fontana
5353 Sierra Avenue
Fontana, CA 92335

WHEN RECORDED MAIL TO
City of Fontana
Attn: City Clerk
5353 Sierra Avenue
Fontana, CA 92335

APN: 0237-212-25 Exempt from Recording Fees per Govt. Code §27383 Exempt from Documentary Transfer Tax per Calif. Rev. & Tax. Code §11922

GRANT DEED
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, Fontana Public Financing Authorty, a California joint powers agency, hereby GRANTS, CONVEYS, and TRANSFERS in fee simple to City of Fontana, a California municipal corporation, all right, title, and interest in and to that certain real property situated in the City of Fontana, County of San Bernardino, California as described in Exhibit A, attached hereto and incorporated herein by this reference for street and utility right-of-way purposes.

Date: ___________________ Name:__________________________ By: Matthew Ballantyne
Its: Executive Director

145

EXHIBIT A TO

GRANT DEED

LEGAL DESCRIPTION

LOT 28 OF TRACT NO. 12064 -2, IN THE CITY OF FONTANA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 176 OF MAPS, PAGES 78 TO 97, INCLUSIVE, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

EXCEPTING THEREFROM ALL OIL, GAS, PETROLUEM, ALL KINDRED

SUBSTANCES, PRECIOUS METALS, ORES, ASPHALTUM, MINERALS, WHETHER

KNOWN OR UNKNOWN, AND ANY OTHER HYDROCARBON SUBSTANCES LYING BELOW A DEPTH OF FIVE HUNDRED (500) FEET , MEASURED VERTICALLY FROM

THE SURFACE OF THE LAND, BUT WITHOUT ANY RIGHT OF SURFACE ENTRY TO TAKE OR RECOVER SAME, BY DEED RECORDED JANUARY 10, 1983, AS INSTRUMENT NO. 83-5299.

FURTHER EXCEPTING THEREFROM ALL MINERALS AND MINERAL ORES OF

EVERY KIND OF CH ARACTERS, INCLUDING PETROLEUM AND OTHER

HYDROCARBON SUBSTANCE OR OTHER MINERAL DEPOSITS, BUT WITHOUT THE

RIGHT OF SURFACE ENTRY OVER THE WEST ONE-HALF OF THE NORTHEAST ONE- QUARTER OF SECTION 35, TOWNSHIP 1S, RANGE 6W SBBM, BY DEED RECORDED MAY 16, 1960 IN BOOK 5137, PAGE 1 OF OFFICIAL RECORDS.

FURTHER EXCEPTING THEREFROM ALL OIL, GAS, OR OTHER HYDROCARBON

SUBSTANCES OR OTHER MINERAL DEPOSITS, BUT WITHOUT THE RIGHT OF SURFACE ENTRY, BY DEED RECORDED FEBRUARY 3, 1959 IN BOOK 4721, PAGE 447 OF OFFICIAL RECORDS.
146

CITY OF FONTANA

CERTIFICATE OF ACCEPTANCE OF

GRANT DEED
[APN: 0237-212-25 ]

This Certificate of Acceptance pertains to the interest in certain real property conveyed by the Grant Deed dated _______________, 2025 to which this Certificate of Acceptance is attached,

from: FONTANA PUBIC FINANCING AUTHORITY, a California joint powers agency (“Grantor”)

to: CITY OF FONTANA, a California municipal corporation ("Grantee")

Said Grant Deed is hereby accepted by the undersigned officer on behalf of Grantee pursuant to authority conferred by the Grantee's governing board, and Grantee hereby consents to recordation of said Grant Deed.

Dated: ________________________ CITY OF FONTANA,
a California municipal corporation

By: ____________________________________
Matthew Ballentyne
Its: City Manager

ATTEST:

______________________________
City Clerk

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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0146 Agenda Date: 4/22/2025
Agenda #: H. Category: Consent Calendar
FROM:

Community Services
SUBJECT:

Accept Donation from Burrtec Waste Industries, Inc. (2025 Fontana Days Run) RECOMMENDATION:

Accept donation from Burrtec Waste Industries, Inc. in the amount of $1,000 for use towards the 2025 Fontana Days Run
COUNCIL GOALS:
· Operate in a businesslike manner by creating a memorable customer experience with every interaction.
· Increase citizen involvement by seeking community input. · Invest in the City’s infrastructure (streets, sewers, parks, etc.) by creating and promoting community through people, parks, and programs.

DISCUSSION:

The Community Services Department receives donations and sponsorships from many local companies to help support and enhance various programs, activities, and events. Burrtec Waste Industries, Inc donated $1,000 towards the 2025 Fontana Days Run and is recognized as a Presenting Title Sponsor of this event.

FISCAL IMPACT:

The $1,000 was deposited into account 101.3510 to enhance the 2025 Fontana Days Run event amenities and details.

MOTION:

Approve staff recommendation
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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0147 Agenda Date: 4/22/2025
Agenda #: I. Category: Consent Calendar
FROM:

Community Services
SUBJECT:

Accept Donation from Bel-Air Swap-Meet, Inc. (2025 Fontana Days Run) RECOMMENDATION:

Accept donation from Bel-Air Swap-Meet, Inc. in the amount of $10,000 for use towards the 2025 Fontana Days Run.

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

DISCUSSION:

The Community Services Department receives donations and sponsorships from many local companies to help support and enhance various programs, activities, and events. Bel-Air Swap-Meet, Inc. donated $10,000 towards the 2025 Fontana Days Run and is recognized as a Presenting Title Sponsor of this event.

FISCAL IMPACT:

The $10,000 was deposited into account 101.3510 to enhance the 2025 Fontana Days Run event amenities and details.

MOTION:

Approve staff recommendation
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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0148 Agenda Date: 4/22/2025
Agenda #: J. Category: Consent Calendar
FROM:

Community Services
SUBJECT:

Accept Donation from Les Schwab Tire Center (2025 Fontana Car Show) RECOMMENDATION:

Accept donation from Les Schwab Tire Center in the amount of $1,000 for use towards the 2025 Fontana Car Show.

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

DISCUSSION:

The Community Services Department receives donations and sponsorships from many local companies to help support and enhance various programs, activities, and events. Les Schwab Tire Center donated $1,000 towards the 2025 Fontana Car Show and is recognized as a Presenting Title Sponsor of this event.

FISCAL IMPACT:

The $1,000 was deposited into account 10124310.5531 to enhance the 2025 Fontana Car Show series amenities and details.

MOTION:

Approve staff recommendation
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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0151 Agenda Date: 4/22/2025
Agenda #: K. Category: Consent Calendar
FROM:

Engineering
SUBJECT:

Award a Construction Contract for the Southridge Dog Parks (East and West) Project (Bid No. DE-25 -97-SB)
RECOMMENDATION:

1. Award bid and authorize the City Manager to execute a construction contract with Zeco, Inc. for the construction of the Southridge Dog Parks (East and West) Project, in the amount of $541,326.50 and authorize a 10% contingency in the amount of $54,132.65 (Bid No. DE-25-97- SB).

2. Approve and authorize the City Manager to execute any and all utility agreements, utility easements, and subsequent agreements on behalf of the City of Fontana for the Southridge Dog Parks (East and West) Project (Bid No. DE-25-97-SB).

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

DISCUSSION:

The Southridge Dog Parks (East and West) Project will consist of the construction of two (2) separate dog parks within the Southridge community of the City. The East Park is located along Citrus Avenue, south of Jurupa Avenue. The West Park is located along Village Drive, east of Live Oak Avenue, south of Jurupa Avenue. Both parks are located within the existing Southern California Edison easement open space areas.

The Capital Improvement Program (CIP) Division is coordinating this project with the Parks and Landscape Division. The scope of work within this contract will consist of grading the two (2) park sites and constructing all concrete and asphalt concrete (AC) pavement improvements. This will include the construction of curbs and/or gutters, concrete ramps, commercial driveways, AC dikes, AC parking lots, concrete sidewalks, and water quality BMP’s. Upon completion of Engineering’s contract improvements, the Parks and Landscape Division will follow with improvements that include fencing, landscape and irrigation, and other final improvements related to the parks.

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File #: 25-0151 Agenda Date: 4/22/2025
Agenda #: K. Category: Consent Calendar
On March 24, 2025 at 2 p.m., the bids for this contract were opened. A total of fifteen (15) bids were received ranging from $541,326.50 to $1,179,071.50. Zeco, Inc. is the lowest bidder in the amount of $541,326.50. The Engineer’s estimate was $556,600.00. After reviewing the proposed bid documents, Purchasing and Engineering staff have determined Zeco, Inc. to be the lowest responsive and responsible bidder.

FISCAL IMPACT:

The fiscal impact associated with the approval of this item is $595,459.15 for the full term of the construction contract and is included in the FY 2024-2025 budget in the Southridge Dog Park Projects #37200008-635-A and 37200009-635-A.

MOTION:

Approve staff recommendation.

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SOUTHRIDGE DOG PARK EAST PROJECT
0SCALE 1:6001200600

PROJECT LOCATION
N
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SOUTHRIDGE DOG PARK WEST PROJECT
0SCALE 1:6001200600

PROJECT LOCATION
N
168
Bid Results

SOUTHRIDGE DOG PARKS (EAST AND WEST)
(DE-25-97-SB)

1. Zeco, Inc $541,326.50
Yorba Linda, CA

2. Wheeler Paving, Inc $697,492.90
Riverside, CA

3. Aneen Construction, Inc. $713,345.00
Riverside, CA

4. Roadway Engineering & Construction Corp. $742,172.50 Perris, CA

5. Metrocell Construction, Inc $744,710.38
Ontario, CA

6. Gentry General Engineering, Inc $759,264.25
Colton, CA

7. Oppenheimer National $777,149.78
San Juan Capistrano, CA

8. Gerald Miller Construction dba Miller Blades $818,834.88 Riverside, CA

9. Addison-Miller, Inc $867,738.00
Orange, CA

10. RE Chaffee Construction, Inc $899,408.00
Wrightwood, CA

11. CT&T Concrete Paving, Inc $921,542.21
Diamond Bar, CA

12. RG General Engineering, Inc $929,726.00
Norco, CA

169

13. Deark E&C, Inc $934,548.00
Fullerton, CA

14. KNC Construction, Inc $1,083,928.23
Apple Valley, CA

15. Asphalt Fabric & Engineering $1,179,071.50
Signal Hill, CA
170
City of Fontana
Southridge Dog Parks East & West Project (DE-25-97-SB), bidding on 03/24/2025 2:00 PM (PDT)

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City of Fontana
Southridge Dog Parks East & West Project (DE-25-97-SB), bidding on 03/24/2025 2:00 PM (PDT)

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City of Fontana
Southridge Dog Parks East & West Project (DE-25-97-SB), bidding on 03/24/2025 2:00 PM (PDT)

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City of Fontana
Southridge Dog Parks East & West Project (DE-25-97-SB), bidding on 03/24/2025 2:00 PM (PDT)

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City of Fontana
Southridge Dog Parks East & West Project (DE-25-97-SB), bidding on 03/24/2025 2:00 PM (PDT)

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City of Fontana
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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0153 Agenda Date: 4/22/2025
Agenda #: L. Category: Consent Calendar
FROM:

Engineering
SUBJECT:

Approve Amendment No. 2 to the Professional Services Agreement for Architectural Design Services for the City Hall Renovation Project - Phase II (City Hall) (DE-24-147-SP) RECOMMENDATION:

Approve and authorize the City Manager to execute Amendment No. 2 to the Professional Services Agreement with Sillman Wright Architects for Architectural Design Services for the City Hall Renovation Project - Phase II (DE-24-147-SP), in the amount of $766,670.00 for a total contract amount of $1,956,160.00.

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

DISCUSSION:

The City Hall Renovation Project - Phase II (City Hall) is a proposed project to be constructed in place of the existing City Hall Building located at 8353 Sierra Avenue, Fontana, CA 92335 (Reference Exhibit “A” Vicinity Map), and consists of demolishing the existing one-story building and constructing a two-story municipal building occupying a building footprint of approximately 35,000 square feet.

The first tier will include parking spaces, a City Council Chamber of approximately 3,500 square feet, public access services space and office space with some of the first floor containing volume ceiling, and the second floor solely comprised as office spaces. The intent of the building is to serve as office space for City staff, provide public and employee parking on the Civic Campus, and serve as the primary public interface for residents and businesses within the City.

A Request for Proposal (RFP) was issued for Design Services for City Hall Renovation Project - Phase II in March 2024. The City received sixteen (16) proposals and the evaluation committee selected Sillman Wright Architects as the overall best value on the criteria outlined in the RFP. On July 25, 2024, the City and Sillman Wright Architects executed a Professional Services Agreement in the amount of $99,000.00. The original agreement only covered the preliminary design work, with a mutual understanding that additional amendments were to be executed for full scope of work. On September 10, 2024, the City Council approved Amendment No. 1 in the amount of $1,090,490.00.

Amendment No. 1 included Schematic Plan, Design Development, and 50% Working Drawings and Specifications.

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File #: 25-0153 Agenda Date: 4/22/2025
Agenda #: L. Category: Consent Calendar
The proposed Amendment No. 2 includes Final Working Drawings & Specifications, Construction Contract Documents, and Bid Phase to the scope of work. The agreed amount of the Amendment No. 2 is $766,670.00.

FISCAL IMPACT:

The fiscal impact associated with the approval of this item is $766,670.00 for the full term of the agreement and is included in the 2024-2025 budget in project 37600012-601-A-8113, Fund 601 - Capital Reinvestment.

MOTION:

Approve staff recommendation.

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N01 inch = 600 feet1200600

PROJECT LOCATIONCITY HALL RENOVATION PROJECTPHASE II (CITY HALL) 179

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16498.00150\32127016.1
AMENDMENT NO. 2

TO THE DESIGN SERVICES AGREEMENT
DE-24-147-SP

BETWEEN

THE CITY OF FONTANA

AND

SILLMAN WRIGHT ARCHITECTS

1. Parties and Date.

This Amendment No. 2 to the Design Services Agreement DE-24-147-SP is made and entered into as of this 23rd day of April 2025, by and between the City of Fontana (“City”) and Sillman Wright Architects, a Corporation with its principal place of business at 31045 Temecula Parkway, Suite 202, Temecula, California 92592 (Consultant). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties.”

2. Recitals.

2.1 Consultant. The City and Consultant have entered into an agreement entitled Professional Services Agreement” dated July 25, 2024 (“Agreement”) for the purpose of retaining the services of Consultant to provide Architectural Design services.

2.2 Amendment Purpose . The City and Consultant desire to amend the Agreement to revise the scope of services and increase the not -to-exceed compensation amount. The Parties have therefore entered into that Amendment No. 1 dated September 11, 2024.

2.3 Amendment Authority. This Amendment No. 2 is authorized pursuant to Section 3 of the Agreement.

3. Terms.

3.1 Amendment. Section 1 of the Agreement is hereby amended in its entirety to read as follows:

1. Services. Consultant shall provide the City with the services described in the Scope of Services attached hereto as Exhibit “A”.

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

2. Compensation.
180

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16498.00150\32127016.1
a. Subject to paragraph 2(b) below, the City shall pay for such services in accordance with the Schedule of Charges set forth in Exhibit “B”.

b. Amendment No. 2 is authorized in the amount of $ 766,670.00. In no event, shall the total amount paid for services by Consultant under this Agreement exceed the sum of $1,956,160.00. This amount is to cover all printing related costs, and the City will not pay any additional fees for printing expenses. Periodic payments shall be made within 30 days of receipt of an invoice which includes a detailed description of the work performed. Pa yments to Consultant for work performed will be made on a monthly billing basis.

3.3 Continuing Effect of Agreement . Except as amended by this Amendment No. 2, all other provisions of the Agreement remain in full force and effect and shall govern the a ctions of the parties under this Amendment No. 2. From and after the date of this Amendment No. 2, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 2.

3.4 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 2.

3.5 Severability. If any portion of this Amendment No. 2 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

[Signatures on Next Page]

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16498.00150\32127016.1

SIGNATURE PAGE TO
AMENDMENT NO. 2

DESIGN SERVICES AGREEMENT

CITY OF FONTANA

By: ___
Matthew C. Ballantyne
City Manager

SILLMAN WRIGHT ARCHITECTS

By: ______________________________
Brett Tullis
Principal Architect
Attest:

By: ___________________________
Germaine McClellan Key
City Clerk

By: ___________________________
Phillip Burum
Deputy City Manager

Approved as to form:

_________________________________
Best Best & Krieger LLP
City Attorney

By: ___________________________
Gia Kim
Director of Engineering / City Engineer

IN COMPLIANCE WITH PURCHASING AND CONTRACT ADMINISTRATION POLICIES/PROCEDURES

Jessica Brown
Chief Financial Officer

Sid Lambert
Purchasing Office

182

13 16498.00150\32126437.1

EXHIBIT A
Scope of Services

183

5. Work Plan
184

5. Work Plan
SILLMAN | CITY OF FONTANA | CITY HALL - PHASE TWO | RFP: DE-24-147-SP | MARCH 7, 2024 Trust, open communication, clear project goals, and
experienced planning is the SILLMAN Experience for
creating a great design for the City that is constructible, maximizes project value within budget and schedule,
while also respecting the community values.

We work collaboratively to garner and include City and
User Group input, in order to facilitate discussions about any possible schedule impacts from revisions or changes.

SCOPE OF WORK & DELIVERABLES
We have identified the following deliverables that will allow for a successful project outcome and fulfill all
objectives for the new City Hall:
• Initial Planning
• Schematic Design
• Design Development
• Final Working Documents
• Construction Contract Documents / Permitting
• Bidding
• Construction Administration
• Project Closeout (As-built Drawings / Warranty
Phase)
⊲ INITIAL PLANNING, SCHEMATIC DESIGN, &

ENTITLEMENTS
The Programming and Schematic Design Phase is the
research and collaborative decision-making stage, where we will work closely and collaborate with the City and
its User Groups to define and confirm the new facility’s Programming, Project Criteria, and Schematic Design.

During this stage we will begin to ensure that the
building obtains proper entitlements and approvals
so that there will be no delay during construction. The outcome allows us to:
• Confirm Project Goals
• Understand the Exact Scope of Work
• Prepare Block Plans & Space Plans
• Develop the Project Schedule
• Develop the Project Budget
⊲ BUILDING EARL Y STAKEHOLDER CONSENSUS
In order to design a City Hall which meets the City’s
current and future needs, program verification with all User Groups is vital in building consensus.

We will meet with the City and all other relevant
User Groups to identify and test the viability of several creative project solutions to maximize value, while also meeting the program, schedule, and budget, in order to
solidify a (Conceptual) Schematic Design that exceeds
expectations. We would propose a multi-day Partnering
Workshop for all User Groups to discuss relevant issues, explore ideas, opportunities, and find creative solutions.

Taking place over 2-3 days (virtually or in-person), these Partnering Workshops are focused on:
• Consensus Driven Goals & Fostering Mutual Trust
• Collaboration is the key to our success - open &
honest partnering is essential
• Every Voice Matters: Even with multiple User
Groups, it is important each perspective is heard
• Measuring Wants vs Needs against project goals,
we develop the design based on the most important
items, which fit within the budget & schedule
During this time, we will also coordinate with the
City to address the following items to ensure we are
designing a customized City Hall facility which actually functions as intended:
• Adjacencies & Functionality
• Floorplans, Layouts, Fixtures & Equipment
• Constructability
• Systems Confirmation
• Americans with Disabilities (ADA) Requirements
• Life-Cycle Performance & Minimizing Energy Costs
• Meeting Code Compliance
• Public Agencies & Utility Permit Processing
• Target Value Cost Estimating: Reduce Waste & Add Value • Schedule Confirmation: Identify Long Lead Time Items
• Potential Cost-Saving Alternatives & Options

PROJECT APPROACH

SCOPE OF WORK & DELIVERABLES
185

5. Work Plan
SILLMAN | CITY OF FONTANA | CITY HALL - PHASE TWO | RFP: DE-24-147-SP | MARCH 7, 2024 ⊲ ROBUST QA/QC PROGRAM
Throughout the Design and Construction Phases, a
rigorous QA/QC Program featuring a Design Quality
Control Plan will be implemented by a designated
Design Quality Assurance Manager to ensure the
quality of product and deliverables meets or exceeds
the City’s expectations and goals.

During the Construction Documents Phase , we use
our 3-D BIM capabilities to work at a collaborative
level with the User Groups in defining and developing
all systems, finishes and project parameters for
consideration and approval. These realistic 3-D models
will allow for streamlined decision making and will also help facilitate discussion with the City on any updates, revisions, or potential changes throughout the design
and construction process.
⊲ DEMOLITION PLANS
We will prepare demolition plans and all relevant
public bid documents for the project to include onsite, offsite, WQMP, landscape, in compliance with the City’s landscape ordinance.
⊲ PERMITTING
During the Construction Documents phase, we will
meet with the any and all Authorities Having Jurisdiction (AHJ) to identify, address, and incorporate issues, which will be documented in meeting minutes and distributed.

As part of Permit Processing, issues will be identified and resolved with the City’s involvement and Final
Construction Documents will be issued for construction. ⊲ BIDDING
Our Team will support the City during the Bidding
Process to ensure that the bids received are accurate
and equitable.
⊲ CONSTRUCTION SUPPORT SERVICES
We are committed to supporting the City and the
Contractor throughout the Construction Phase. We will
attend regular site visits and will collaborate with the City and the Contractor to limit revisions by ensuring
that the approved Permit documents are followed.

Successful Project Closeout starts at the beginning
of construction; therefore, our approach to Project
Closeout is proactive and ensures the project is
successfully closed through public contract code,
protecting client interest all relevant public agencies and utility companies. Our team will continue to provide advice to the City during the Warranty Period.

We strongly believe that a good program with clear
project goals leads to a strong design concept , which
are the critical ingredients for the success of this project. ⊲ BUILD IT BEFORE YOU BUILD IT
In order to help the City and its User Groups easily
visualize our proposed designs and ensure everyone
is getting the facility they’ve imagined, our Design
Team will utilize 3-D Building Information Modeling
(BIM) technologies, including Revit and Lumion, starting in Conceptual & Schematic Design and continually
evolving until design is complete.

Before the first shovel is put into the ground, our Design Team will provide the City with detailed 3-D computer
models that will accurately represent all aspects of the proposed facility design.

These realistic 3-D models will allow for streamlined
decision making and will also help facilitate discussion with Access on any updates, revisions, or potential
changes throughout the design and construction
process – keeping the project on schedule and budget.
⊲ DESIGN DEVELOPMENT & CONSTRUCTION

DOCUMENTS
Once the Programming and Schematic Design items
are addressed and incorporated, we will focus on
producing the Construction Documents.

Internal weekly meetings will be held to work together
to resolve issues and confirm project schedule and
budget. The City Review Meetings will be held at
major milestones, including 30%, 50%, and 100%
completion of Construction Documents to review and
discuss the progress.
186

5. Work Plan
SILLMAN | CITY OF FONTANA | CITY HALL - PHASE TWO | RFP: DE-24-147-SP | MARCH 7, 2024 ⊲ OPEN COMMUNICATION
Trust, open communication, clear project goals, and
experienced planning are key to creating a stellar design that is constructible and maximizes project value within the budget and established schedule.

We believe ongoing collaboration and communication
are essential for understanding issues and finding
solutions that lead to project success.
⊲ COMMITTED TO THE CITY’S VISION
We understand the City’s Vision of a modern flexible
facility that will be a cornerstone of the Civic Campus.

This iconic project will set the tone for the City’s future, establishing a higher standard of construction in Fontana and ushering in a feeling of renewal and growth.

The facility will elevate the office environment for the elected officials and City executives, providing a new
vision for what is possible. We will meet the City’s
Project Goals by ensuring all voices are heard through
close collaboration and ongoing User Group input.
⊲ SUSTAINABILITY
We share the City Council’s goal of preserving the
local environment and promoting a healthy economic
and environmental future through sustainable design
principles, passive design strategies, and reduction of carbon footprint in construction.

With 30+ successful LEED and Zero Net Energy
Projects completed by our firm we have the know-how
and the drive to contribute to the City’s goal of becoming the most environmentally conscious city in California.

UNDERSTANDING OF ISSUES & SOLUTIONS
⊲ START WITH CLEAR GOALS
Establishing clear project goals and values is vital to ensure we are designing to the project budget. Once
goals are finalized, they act as a road map to effective decision-making with the City and User Groups to
identify the most important project elements that will
also fit within the established budget and schedule.
⊲ STAY ON BUDGET & MAXIMIZE VALUE
We have an inclusive and collaborative approach
to managing and controlling the project cost, while
utilizing practical design solutions to adapt to the
realities of budget constraints. Our Team will explore
a variety of options for structural; mechanical; building massing; building systems; program; reducing
redundancies and maximizing value.
⊲ PROACTIVE WITH PUBLIC AGENCIES &

UTILITY AGENCIES
SILLMAN has successfully completed dozens of
projects in San Bernardino County which have taught
us to be proactive and meet with the Public & Utility
agencies and other Authorities Having Jurisdiction
(AHJs) as early as possible in the project timeline.

We will reach out and meet with all relevant AHJs,
like the City of Fontana, Southern California Edison,
SoCalGas, Fontana and the Fire Protection District,
which eliminates expensive design changes down the
line due to non-compliant design.
⊲ MAINTAINING SCHEDULE
It is likely that there will be revisions due to code,
constructability, function, or program goals. Our goal
is to work with the City to make design revisions in a
way that minimizes the impact on budget and schedule.

Our experienced Design Team is skilled at discovering
opportunities to save money to allow for potential
revisions in the agreed upon timeframe.
⊲ DESIGN-BID-BUILD EXPERTS
With hundreds of successful Design-Bid-Build
projects under our belt , we understand that making
sure the project is delivered within the established
budget is a top priority. We will provide accurate cost estimates that show the up-to-date costs for materials
and account for recent inflation before and during the
bid phase. We have found through experience that
maintaining early order of long lead time items helps to ensure that the budget and schedule remain on track.

UNDERSTANDING OF ISSUES & SOLUTIONS
187

6. Schedule
188
Months M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A Months Initial Planning Phase 2.25 0.5 1.0 0.75 2.25
Schematic Design Phase 2 0.25 1.0 0.75 2
Design Development Phase 3 1.0 1.0 1.0 3
Final Working Documents Phase 3 1.0 1.0 1.0 3
Construction Contract Documents Phase / Permitting 1 1.0 1 Bid Phase 2 1.0 1.0 2
DESIGN & BID TOTAL 13.25 0
Construction Phase 16 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 16 As-Built Drawings 1 1.0
CONSTRUCTION TOTAL 17 0
Warranty Phase is expected to extend 12 months past
completion of construciton 12 1.0 1.0 12
Deliverable Dates
Schematic Design Package 12/16/24
Entitlement Package early January
Cost estimate 1/25/25
City Council 2/25/25
Fontana City Hall Renovation Phase II (City Hall)

SILLMAN
Conceptual Schedule
UPDATED 12/04/2024
Phase 2024 2025 2026 2027
189

EXHIBIT B
Schedule of Charges/Payments
Reference is made to Phase 3 – Final Working Drawings & Specifications, Construction Contract Documents, and Bid Phase of the attached Cost Proposal. Consultant will invoice City on a monthly cycle. Consultant will include with each invoice a detailed progress report that indicates the amount of budget spent on each task. Consultant will inform City regarding any out-of-scope work being performed by Consultant. This is a time-and-materials contract. 190
Discipline
Final Working
Drawings &
Specifications
Construction
Contract
Documents
Bid Phase Total Construction
Phase
As-Built
Drawings /
Warranty
Period
Total
Architectural 126,000 $ 110,000 $ 30,000 $ 266,000$ 300,000 $ 30,000 $ 330,000$ Structural (Core & Shell) 39,400 $ 10,000 $ 2,000 $ 51,400$ 26,000 $ 6,000 $ 32,000$ Structural (TI) 8,400 $ - $ - $ 8,400$ 4,000 $ - $ 4,000$ Survey - $ - $ - $ -$ - $ - $ -$ Civil 23,190 $ - $ 2,000 $ 25,190$ 28,000 $ 6,000 $ 34,000$ Mechanical 17,400 $ 17,000 $ 3,000 $ 37,400$ 30,000 $ 3,000 $ 33,000$ Plumbing 10,800 $ 11,000 $ 2,000 $ 23,800$ 16,000 $ 2,000 $ 18,000$ Electrical 18,600 $ 19,000 $ 3,000 $ 40,600$ 30,000 $ 3,000 $ 33,000$ Low Voltage (Conduit Only) 2,000 $ 2,000 $ 2,000 $ 6,000$ 6,000 $ 2,000 $ 8,000$ Photo Voltaic (Deferred Approval) 2,000 $ 2,000 $ 2,000 $ 6,000$ 4,000 $ 2,000 $ 6,000$ Fire Alarm (Deferred Approval) 3,000 $ 2,000 $ 2,000 $ 7,000$ 4,000 $ 3,000 $ 7,000$ Fire Sprinkler (Deferred Approval) 7,000 $ 6,500 $ 2,000 $ 15,500$ 6,000 $ 3,000 $ 9,000$ Interior Design & FF&E 9,600 $ 4,000 $ 2,000 $ 15,600$ 5,000 $ 2,000 $ 7,000$ Landscape 4,500 $ 3,800 $ 2,600 $ 10,900$ 5,500 $ 2,600 $ 8,100$ Acoustics (Council Chambers Only) 3,500 $ 4,500 $ 1,000 $ 9,000$ 3,000 $ 1,000 $ 4,000$ Cost Estimate 9,800 $ - $ - $ 9,800$ - $ - $ -$ Sub Total 285,190 $ 191,800 $ 55,600 $ 532,590 $ 467,500 $ 65,600 $ 533,100 $ Additional Service Proposal #1
Survey 5,880 $
Additional Service Proposal #2
DSO New Restroom, Option 1 and
Option 2
Total
Add'l
Serv #2
Architectural 85,000$
Structural 75,000$
Mechanical
Plumbing
Electrical
Low Voltage (Conduit Only)
Frie Alarm (Deferred Approval)
Fire Sprinkler (Deferred Approval)
4,500$
Add'l Service #2 Total 228,200 $
Phase III + Add'l Services 1 & 2 Total 766,670 $
Fontana City Hall Phase 2 A&E Fees Design & Construction Documents

SILLMAN
3/19/2025
63,700 $
Phase III Phase IV
191
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0155 Agenda Date: 4/22/2025
Agenda #: M. Category: Consent Calendar
FROM:

Police Department
SUBJECT:

Police Department Monthly Information Update
RECOMMENDATION:

Accept the Police Department monthly information update for February 2025.

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

DISCUSSION:

The February 2025 monthly information report has been completed. Once the report is accepted by the City Council it will be featured on the Department website.

FISCAL IMPACT:

There is no fiscal impact.

MOTION:

Approve staff recommendation.

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POLICE DEPARTMENT

MONTHLY REPORT
Feburary 2025
193

NOTEWORTHY EVENTS
• Fontana Police participated in annual “Love our Veterans’” event. With support from our community partners, we were able to shop with local veterans at Walmart. • Lieutenant Slusser hosted an Area 1 Commander meeting at Sierra Lakes Elementary School. • COPE visited several schools within the city including Falcon Ridge, DW Long, Solorio, Heritage Intermediate and Fontana High School.
• Three new Fontana police Officers graduated from San Bernardino County Sheriff’s Department Basic Academy.
• Fontana Police conducted several ABC “Decoy” operations to ensure complainace with our local businesses.
• ICAC arrested several individuals for child pornoghraphy.

KA1
194
Slide 2
KA1 Kevin Anderson, 2/9/2021
195
196

CITYWIDE
• Priority 1 response time- 4:18(Emergency calls like subject not breathing, shots fired, and other immediate risk to life/safety)
• Calls for service- 8,780
• Total arrests- 636
• Hispanic- 444, White- 89 , Black- 98, All other races- 5 • Total Group A Offenses- 745
• Crimes Against Persons- 152
• Crimes Against Property- 344
• Crimes Against Society- 249
197
CITYWIDE• Crimes Against Person- 124
• Homicide- 1
• Sex Offenses- 5
• Assault- 106
• Kidnapping- 4
• Other- 8
• Crimes Against Property- 262
• Robbery- 7
• Burglary- 15
• Larceny- 123
• Destruction of Property- 41
• Fraud- 27
• Possession of Stolen Property- 14
• Motor Vehicle Theft- 26
• Other Miscellaneous Property Crimes- 9
• Crimes Against Society- 176
• Drug and Paraphernalia Possession- 162
• Possession of Child Pornography- 2
• Possession of Weapons- 12
• Other Miscellaneous Crimes- 0
198

CRIMES BY BEAT
• Police Department Beat system is NOT
geographically the same as City Council
representation Districts
• Beat 1- All area north of 210 Freeway
• Beat 2- All area south of 210 Freeway and
north of Foothill
• Beat 3- All area south of Foothill and north
of 10 Freeway
• Beat 4- All area south of the 10 Freeway
Area 1
Area 2
Area 3
Area 4
199
BEAT 1

AREA COMMANDER IS LIEUTENANT KYLE SLUSSER
EMAIL- [email protected]
DESK- (909) 350-7716
• Total Group A Offenses- 76
• Crimes Against Persons- 7
• Crimes Against Property- 67
• Crimes Against Society- 2
200
BEAT 2

AREA COMMANDER IS LIEUTENANT MATT KRAUT
EMAIL- [email protected]
DESK- (909) 356-7142
• Total Group A Offenses- 117
• Crimes Against Persons- 37
• Crimes Against Property- 61
• Crimes Against Society- 19
201
BEAT 3

AREA COMMANDER IS LIEUTENANT CHRIS TUSANT
EMAIL – [email protected]
DESK – (909) 350-7706
• Total Group A Offenses- 252
• Crimes Against Persons- 60
• Crimes Against Property- 136
• Crimes Against Society- 56
202
Beat 4

AREA COMMANDER IS LIEUTENANT SCOTT SNYDER
EMAIL – [email protected]
DESK – (909) 350-7707
•Total Group A Offenses- 125
•Crimes Against Persons- 23
•Crimes Against Property- 81
•Crimes Against Society- 21
203

ADDITIONAL USEFUL INFORMATION
• For more information regarding specific geographical crime data, visit www.crimemapping.com and enter your zip code
• Police Department information line- (909) 350-7740
• Police Department Dispatch non-emergency line- (909) 350-7700 • Anonymous crime reporting (909) 356-TIPS to leave a recorded message
• Report Graffiti on City Property- (909) 350-GONE
• Office of the Chief- (909) 350-7702 or [email protected] 204
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0156 Agenda Date: 4/22/2025
Agenda #: N. Category: Consent Calendar
FROM:

Police Department
SUBJECT:

Annual Update on Military Equipment Usage
RECOMMENDATION:

Adopt the “2024 Fontana Police Department Annual Military Equipment Use Inventory Report” in accordance with Ordinance No. 1892 of the Fontana Municipal Code, Governing Military Equipment Usage.

COUNCIL GOALS:
· To create a team by working together to provide stability and consistent policy direction. · To create a team by communicating Goals and Objectives to all sectors of the community. · To operate in a businesslike manner by ensuring that the public debate is based on accurate information.
· To increase citizen involvement by seeking community input.

DISCUSSION:

Assembly Bill 481 (“AB481”),codified at Government Code sections 7070 through 7075, requires the Fontana Police Department (“Department”)to obtain annual approval from City Council of its military equipment use policy (“Policy”)in order to continue the use of previously acquired military equipment.

The term “militaryequipment,”as used in AB 481, does not necessarily indicate equipment used by the military. Items deemed to be “militaryequipment”include, but are not limited to, unmanned aerial or ground vehicles, armored vehicles, command and control vehicles, pepper balls, less lethal shotguns, less lethal 40mm projectile launchers, long range acoustic devices, and flashbangs. The list of items considered “military equipment” by AB 481 are employed by many law enforcement agencies across the country as best practices to enhance citizen and officer safety. Provided as an attachment to this staff report is the updated inventory list of military equipment that the department maintains, in accordance with Government Code section 7072. The use of the military equipment identified on the inventory list is vital to the Department’smission and will continue to be strictly regulated through internal processes and oversight.

On May 10, 2022, the City Council adopted Ordinance No. 1892 adopting a Military Equipment Use Policy, in accordance with AB 481. A copy of the Policy is included as an attachment to this staff report. In order for the Department to continue using the equipment authorized under the Policy, the Department must submit an Annual Report to City Council, that includes the following: 1) A summary of how the military equipment was used and purpose of its use. 2) A summary of any complaints or concerns received concerning the military equipment. 3) The results of any internal audits, any City of Fontana Printed on 4/15/2025Page 1 of 2
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File #: 25-0156 Agenda Date: 4/22/2025
Agenda #: N. Category: Consent Calendar
concerns received concerning the military equipment. 3) The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response. 4) The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the calendar year submission of the annual military equipment report. 5) The quantity possessed for each type of military equipment. 6) If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment.

The Department is committed to utilizing equipment that helps to safeguard the community and reduce the risk of escalating volatile situations that might rise to the level of a lethal encounter.

Ordinance No. 1892 and the adopted Policy provide for safeguards to the public’ssafety, welfare, and civil rights and ensures transparency, oversight, and accountability measures are in place. As examples, the Department will be required to conduct annual audits of the equipment to ensure compliance with the policy, annually report to the City Council the use of this equipment and seek approval prior to acquiring any additional military equipment.

The Fontana Police Department webpage will be utilized for distribution of any updates to the above materials as well as for this Annual Report.

Attachments:

1. 2024 Fontana PD Military Equipment Inventory

2. 2024 Fontana PD Annual Report on Military Equipment Usage

3. Ordinance No. 1892, Adopting Policy 709 Governing Military Equipment Usage

4. Fontana PD Policy 709
FISCAL IMPACT:

There is no fiscal impact.

MOTION:

Approve staff’s recommendation.

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ORDINANCE NO. 1892

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FONTANA, CALIFORNIA ADOPTING POLICE DEPARTMENT POLICY NO. 709, IN ACCORDANCE WITH ASSEMBLY BILL 481

WHEREAS, on September 30, 2021, Governor Newsom signed into law Assembly Bill (“AB”) 481 to address the funding, acquisition, and use of military equipment, as that term is defined by Government Code section 7070(c); and

WHEREAS, AB 481 requires adoption of a military equipment policy (“Policy”) by the City Council before the Fontana Police Department (“Department”) may take action to request military equipment; seek funds (such as grants or in -kind donations) for acquiring military equipment; actually acquire military equipment, either permanently or temporarily by owning, borrowing, or leasing; collaborate with other law enforcement agencies to deploy or use military equipment in the agency’s territorial jurisdiction; use new or existing military equipment in a manner not previously subject to AB 481’s scope; solicit or respond to a proposal for, or enter into an agreement with, any person or entity to seek funds for, apply for, acquire, use, or collaborate in using military equipment; or to acquire military eq uipment through any other means not specifically detailed in the statute; and

WHEREAS, to continue to use military equipment acquired prior to January 1, 2022, the law enforcement agency must commence the process of adopting the Policy no later than May 1, 2022; and

WHEREAS, in accordance with AB 481, the proposed Policy was made available on the website on the Department website at least thirty (30) days prior to the public hearing by the City Council to adopt the Policy; and

WHEREAS, once adopted, the Policy will be made publicly available on the Department website for as long as the covered military equipment is available for use; and
WHEREAS, in accordance with AB 481, the Policy is on the agenda as an open session item at a regular meeting of the City Council, and public comment on the item will be allowed in accordance with the Brown Act; and

WHEREAS, this Ordinance shall be reviewed by the City Council at least annually, and based on an annual military equipment report that will be submitted to the City Council pursuant to AB 481, the City Council shall determine whether each type of military equipment identified in the report has complied with the standards for continued approval.

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Ordinance No. 1892

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FONTANA DOES ORDAIN AS FOLLOWS:

SECTION 1. RECITALS
The City Council finds that all recitals, facts, findings, and conclusions set forth above are true and correct and hereby incorporated by reference.

SECTION 2. FINDINGS
Pursuant to Government Code section 7071(d)(1), as may be amended or renumbered from time to time, the City Council hereby makes the following findings in support of its adoption of the Policy:

A. The military equipment identified in the Policy is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety.

B. The proposed Policy will safeguard the public’s welfare, safety, civil rights, and civil liberties.

C. If the Department purchases military equipment pursuant to the Policy, the equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety.

D. Prior military equipment use complied with the Policy that was in effect at the time, or if prior uses did not comply with the accom panying Policy, corrective action has been taken to remedy nonconforming uses and ensure future compliance.

SECTION 3. ADOPTION OF MILITARY EQUIPMENT POLICY
The City Council her eby adopts the Policy No. 709, Military Equipment Policy, along with any related Attachments, which are all attached hereto as Exhibit “A”.

SECTION 4. CEQA.

The City Council finds that this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.

SECTION 5. EFFECTIVE DATE.

This ordinance shall be effective thirty (30) days from and after its final passage.

SECTION 6. SEVERABILITY.

If any section, subsection, subdivision, sentence, clause, phrase, or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court 208
Ordinance No. 1892

of competent jurisdict ion, then such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Fontana hereby declare they would have adopted this ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions. sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

SECTION 7. PUBLICATION.

The City Clerk is authorized and directed to cause this ordinance to be published within fifteen (15) days after its passage in a newspaper of general circulation and circulated within the City in accordance with Government Code Section 36933(a) or, to cause this ordinance to be publishe d in the manner required by law using the alternative summary and posting procedure authorized under Government Code section 36933(c).

INTRODUCED at the regular meeting of Fontana Council on the 26th day of April 2022.

PASSED, APPROVED AND ADOPTED at the regular meeting of Fontana City Council on the 10th day of May 2022.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney

I, Ashton Arocho, 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 26th day of April, 2022 and was finally passed and adopted not less than five days thereafter on the 10th of May, 2022, by the following wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

City Clerk of the City of Fontana
209

Mayor of the City of Fontana

ATTEST:

City Clerk

210

Exhibit “A”
[insert AB 481 policy]

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Policy
709
Fontana Police Department
Fontana PD Policy Manual
Copyright Lexipol, LLC 2023/07/19, All Rights Reserved.

Published with permission by Fontana Police Department
Military Equipment - 1
Military Equipment
709.1 PURPOSE AND SCOPE
The purpose of this policy is to provide guidelines for the approval, acquisition, and reporting requirements of military equipment (Government Code § 7070; Government Code § 7071; Government Code § 7072).
709.1.1 DEFINITIONS
Definitions related to this policy include those provided in (Government Code § 7070) and as follows:

Governing body – The elected or appointed body that oversees the Department.

Military equipment – Includes but is not limited to the following:
• Unmanned, remotely piloted, powered aerial or ground vehicles. • Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers. • High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. • Tracked armored vehicles that provide ballistic protection to their occupants. • Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units. • Weaponized aircraft, vessels, or vehicles of any kind. • Battering rams, slugs, and breaching apparatuses that are explosive in nature. This does not include a handheld, one-person ram.
• Firearms and ammunition of_.50 caliber or greater, excluding standard-issue shotguns and standard-issue shotgun ammunition.
• Specialized firearms and ammunition of less than_.50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code § 30515, with the exception of standard-issue firearms.
• Any firearm or firearm accessory that is designed to launch explosive projectiles. • Noise-flash diversionary devices and explosive breaching tools. • Munitions containing tear gas or OC, excluding standard, service-issued handheld pepper spray.
• TASER® Shockwave, microwave weapons, water cannons, and long-range acoustic devices (LRADs).
• Kinetic energy weapons and munitions.
• Any other equipment as determined by a governing body or a state agency to require additional oversight.
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Military Equipment - 2
709.2 POLICY
It is the policy of the Fontana Police Department that members of this department comply with the provisions of Government Code § 7071 with respect to the funding, acquisition and use of military equipment.
709.3 MILITARY EQUIPMENT COORDINATOR
The Chief of Police will designate a member of this department to act as the military equipment coordinator. The responsibilities of the military equipment coordinator include but are not limited to:
(a) Acting as liaison to the governing body for matters related to the requirements of this policy.
(b) Identifying department equipment that qualifies as military equipment in the current possession of the Department, or the equipment the Department intends to acquire that requires approval by the governing body.
(c) Conducting an inventory of all military equipment at least annually. (d) Collaborating with any allied agency that may use military equipment within the jurisdiction of Fontana Police Department (Government Code § 7071). (e) Preparing for, scheduling, and coordinating the annual community engagement meeting to include:

1. Publicizing the details of the meeting.

2. Preparing for public questions regarding the department's funding, acquisition, and use of equipment.
(f) Preparing the annual military equipment report for submission to the Chief of Police and ensuring that the report is made available on the department website (Government Code § 7072).
(g) Establishing the procedure for a person to register a complaint or concern, or how that person may submit a question about the use of a type of military equipment, and how the Department will respond in a timely manner.
709.4 MILITARY EQUIPMENT INVENTORY
The following constitutes a list of qualifying equipment for the Department:

See attachment: FONTANA POLICE MILITARY EQUIPMENT INVENTORY.pdf 709.5 APPROVAL
The Chief of Police or the authorized designee shall obtain approval from the governing body by way of an ordinance adopting the military equipment policy. As part of the approval process, the Chief of Police or the authorized designee shall ensure the proposed military equipment policy is submitted to the governing body and is available on the department website at least 30 days prior to any public hearing concerning the military equipment at issue (Government Code § 7071). The military equipment policy must be approved by the governing body prior to engaging in any of the following (Government Code § 7071):
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Military Equipment - 3
(a) Requesting military equipment made available pursuant to 10 USC § 2576a. (b) Seeking funds for military equipment, including but not limited to applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers.
(c) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.
(d) Collaborating with another law enforcement agency in the deployment or other use of military equipment within the jurisdiction of this department. (e) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body.
(f) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of military equipment.
(g) Acquiring military equipment through any means not provided above. 709.6 COORDINATION WITH OTHER JURISDICTIONS
Military equipment used by any member of this jurisdiction shall be approved for use and in accordance with this Department policy. Military equipment used by other jurisdictions that are providing mutual aid to this jurisdiction, or otherwise engaged in law enforcement operations in this jurisdiction, shall comply with their respective military equipment use policies in rendering mutual aid.
709.7 ANNUAL REPORT
Upon approval of a military equipment policy, the Chief of Police or the authorized designee should submit a military equipment report to the governing body for each type of military equipment approved within one year of approval, and annually thereafter for as long as the military equipment is available for use.

The Chief of Police or the authorized designee should also make each annual military equipment report publicly available on the department website for as long as the military equipment is available for use. The report shall include all information required by Government Code § 7072 for the preceding calendar year for each type of military equipment in department inventory. 709.8 COMMUNITY ENGAGEMENT
Within 30 days of submitting and publicly releasing the annual report, the Department shall hold at least one well-publicized and conveniently located community engagement meeting, at which the Department should discuss the report and respond to public questions regarding the funding, acquisition, or use of military equipment.
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Attachments - 4
Attachments
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Attachment
Fontana PD Policy Manual
Copyright Lexipol, LLC 2023/07/19, All Rights Reserved.

Published with permission by Fontana Police Department

FONTANA POLICE MILITARY EQUIPMENT
INVENTORY.pdf - 5

FONTANA POLICE MILITARY
EQUIPMENT INVENTORY.pdf
FONTANA POLICE MILITARY EQUIPMENT INVENTORY.pdf
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FONTANA POLICE MILITARY EQUIPMENT INVENTORY (Attachment)

Unmanned Aircraft System (UAS): An unmanned aircraft along with the associated equipment necessary to control it remotely.
a. Description, quantity, capabilities, and purchase cost of current UAS:

DJI MAVIC MINI, cost: $400 each, quantity: 2.

DJI MAVIC 2, cost: $ 800 each, quantity 3
Instant Eye MK, cost: $30,00 total with training and fleer, quantity 2

b. Purpose
To be deployed when its view would assist officers or incident commanders with the following situations, which include but are not limited to:

1. major collision investigations.

2. search for missing persons.

3. natural disaster management.

4. crime scene photography.

5. SWAT, tactical or other public safety and life preservation missions.

6. In response to specific requests from local, state or federal fire authorities for fire response and/or prevention.

c. Authorized Use

Only assigned operators who have completed the required training shall be permitted to operate the DJI Mavic Mini during approved missions.

d. Expected Life Span
10 years all equipment.

e. Fiscal Impact

One time purchase.

f. Training

Each operator must attend a 40-hour department training and ongoing quarterly training.

g. Legal and Procedural Rules

The Fontana Police Department will utilize UAS only for official law enforcement purposes and in a manner that respects the privacy of our community, pursuant to State and Federal law.
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Robots: Unmanned machine operating on the ground utilized to enhance the safety of the community and officers
a. Description, quantity, capabilities, and purchase cost

ICORE (Rialto PD equipment shared for Inland Valley SWAT) AVATAR

RECON SCOUT

b. Purpose
To be used to remotely gain visual/audio data, deliver HNT phone, open doors, disrupt packages, and clear buildings and make announcements

c. Authorized Use
Only assigned operators who have completed the required training shall be permitted to operate the robots and at the discretion of the Incident or SWAT Commander

d. Expected Life Span
All robots, 10-15 years.

e. Fiscal Impact
Robots are all a one-time purchase.

f. Training
All robot operators are assigned to SWAT and receive on-going training 20 hours a month.

g. Legal and Procedural Rules
It is the policy of the Fontana Police Department to utilize a robot only for official law enforcement purposes, and in a manner that respects the privacy of our community, pursuant to State and Federal law.

218

Armored Vehicles: Commercially produced wheeled armored personnel vehicle utilized for law enforcement purposes

a. Description, quantity, capabilities, and purchase cost LENCO BEARCAT, G2, cost: $315,000.00, quantity: 1. The Lenco Bearcat, G2, is an armored vehicle that seats 10-12 personnel with open floor plan that allows for rescue of down personnel. It can stop various projectiles, which provides greater safety to citizens and officers beyond the protection level of shield and personal body armor
b. Purpose
To be used in response to critical incidents to enhance officer and community safety, improve scene containment and stabilization, and assist in resolving critical incidents.
c. Authorized Use
The use of armored vehicles shall only be authorized by a supervisor, based on the specific circumstances of a given critical incident. d. Lifespan
25 years.
e. Fiscal Impact
One time purchase with general maintenance fees.
f. Training
Armored vehicle uses and training takes place during annual trainings provided by the department. All sworn personnel are trained in the tactics and capabilities of the armored vehicles.
g. Legal and Procedural Rules
It is the policy of the Fontana Police Department to utilize armored vehicles only for official law enforcement purposes, and pursuant to State and Federal law.

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NIJ Level IV Armored Caterpillar (CAT) Multi-Terrain Loader (The ROOK): The ROOK is a custom “armored critical incident vehicle” built on the chassis of a CAT Bulldozer, manufactured by Ring Power.

The ROOK is built to increase job safety, versatility, and mission specific response. The ROOK is equipped with powerful mission specific attachments. The ROOK is capable of being used in tight areas both inside and outside, where traditional armored vehicles may not be able to enter a. Description, quantity, capabilities, and purchase cost ROOK- Modified CAT compact Track Loader chassis, cost: $400,000, quantity: 1.

The ROOK can be utilized by authorized SWAT personnel to identify, discover and locate threats or hazards, to include explosives and ballistic threats. The ROOK may be used to stabilize critical infrastructure and functions to minimize health and safety threats during a terrorist attack. During a terrorist attack, the ROOK will allow for law enforcement protected response.

b. Purpose
To provide a capability for defensive ballistic protection in indoor and outdoor environments, rescue platforms for elevated structure rescue, and rough terrain environments where certain equipment would be limited.

c. Authorized Use
The ROOK shall be used by SWAT team members in a manner consistent with Department training. Furthermore, only SWAT team members who have completed the appropriate training, will operate the ROOK.

d. Lifespan
25 years

e. Fiscal Impact
One time purchase and general fleet maintenance fees.

f. Training
All driver/operators shall attend formalized instruction and be trained in vehicle operations and practical driving instruction as well as normal SWAT bi-weekly training.

g. Legal and Procedural Rules
It is the policy of the Department to utilize armored vehicles only for official law enforcement purposes, and pursuant to State and Federal law.

220
Long Range Acoustic Device (LRAD) Long Range Acoustical Device: (LRAD) is a high intensity directional acoustical array for long-range, crystal-clear hailing, notification, and an unmistakable warning tone. The LRAD is primarily used as a communication device.

a. Description, quantity, capabilities, and purchase cost LRAD 1000x Mag (received on a grant) Self-contained, portable, and featuring an extended voice broadcast range out to 600 meters, the LRAD ensures voice messages are clearly heard and understood. Obtained by Colton Police Department on a military equipment grant program. LRAD is shared by Inland Valley SWAT agencies.
b. Purpose
To be used to issue dispersal orders during crowd and riot control situations or to address the public in the event of civil emergencies, natural disasters, evacuations, and police incidents (e.g., missing persons, perimeters for wanted suspects/ K9 deployments, etc.). The LRAD may also be used to issue a warning tone.

c. Authorized Use
The LRAD shall only be used by officers trained in its deployment d. Lifespan
No life expectancy

e. Fiscal Impact
None

f. Training
All operators receive training prior to operating any of the LRAD’s in the field.

g. Legal and Procedural Rules
It is the policy of the department to utilize the LRAD only for official law enforcement purposes, and pursuant to State and Federal law

221
40 MM Launchers and Rounds: 40MM LMT Launchers are utilized by department personnel as a less lethal tool to launch impact rounds.
a. Description, quantity, capabilities, and purchase cost DEFENSE TECHNOLOGY, 40MM LMT SINGLE SHOT LAUNCHER, cost: $1000, quantity 50. The 40MM Single Launcher is a tactical single shot launcher.

DEFENSE TECHNOLOGY, 40MM EXACT IMPACT SPONGE, #6325, cost: $18, quantity: Fontana PD 206. A less lethal 40mm lightweight plastic and foam projectile fired from a single 40mm launcher with a rifled barrel. The 40mm Exact Impact Sponge Round provides accurate and effective performance when fired from the approved distance.
b. Purpose
To limit the escalation of conflict where employment of lethal force is prohibited or undesirable.

c. Authorized Use
Situations for use of the less lethal weapon systems may include, but are not limited to:

1. Self-destructive, dangerous and/or combative individuals.

2. Riot/crowd control and civil unrest incidents.

3. Circumstances where a tactical advantage can be obtained.

4. Potentially vicious animals.

5. Training exercises or approved demonstrations.
d. Training
Sworn members utilizing 40MM less lethal chemical agents or impact rounds are trained in there use by POST certified less lethal and chemical agent instructors
e. Lifespan
25 years.

f. Fiscal Impact
No annual fiscal impact.

g. Legal and Procedural Rules

It is the policy of the Fontana Police Department to utilize the 40mm only for official law enforcement purposes, and pursuant to State and Federal law, including those regarding the use of force.

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Chemical Agent and Smoke Canisters: Canisters that contain chemical agents that are released when deployed
a. Description, quantity, capabilities, and purchase cost Various Quantities of Chemical agent munitions, which are commonly referred to as “tear gas,” are used by the Fontana Police Department and Inland Valley SWAT team as a non- lethal tool to disperse rioting suspects and on barricaded suspects per Fontana Police Department Policy and applicable law. The Fontana Police Department uses chemical agents which are used by law enforcement across the United States: CS (2 Chlorobenzylidenemalononitrile) and OC (Oleoresin Capsicum). CS is an irritating agent and lachrymator (irritates the eyes and causes tears to flow). CS has been medically tested in the UK and US, specifically by the U.S. Army. There are no known allergic reactions to CS. OC was de-regulated in California in 1996, is endorsed by the FBI, and is available to civilians to legally possess (2.5 oz. or less). OC is an inflammatory agent which causes involuntary closure of eyes (open in 2-5 minutes) and respiratory inflammation (subsides in approximately 2 minutes).

Fontana Police Inventory
Defense Technology Pocket Tactical CS -37
Defense Technology Flameless Tri-Chamber CS -21
Defense Technology Spede Heat CS - 15
Defense Technology 40 mm Warning/Signal 50 meter -14
Defense Technology Riot Control CS - 12
Defense Technology Flameless Tri-Chamber OC - 7
Defense Technology Triple Chaser CS - 4
Defense Technology Direct Impact Marking round - 3
Defense Technology 40 mm Saf-Smoke 100 meters - 2
Defense Technology 40 mm Marking/ Signal Inert - 2
Defense Technology Spede Heat OC - 1

Inland Valley SWAT Inventory
Defense Technology 40 mm Liquid Ferret - 83
Defense Technology Pocket Tactical CS -15
Defense Technology Pocket Tactical Smoke - 11
CTS 5230 Baffle CS - 12
Defense Technology Smoke - 6
Aerosol/OC Vapor - 5
Defense Technology OC Stinger Handball - 2
Defense Technology Triple Chaser Smoke - 3
Defense Technology CS Stinger Handball - 2
Defense Technology Flameless Tri-Chamber CS - 4
Defense Technology Spede Heat CS - 9
Defense Technology Riot Control CS - 2
Defense Technology Triple Chaser CS - 2
Defense Technology Spede Heat CS 40 mm - 14
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b. Purpose
To limit the escalation of conflict where employment of lethal force is prohibited or undesirable. Situations for use of the less lethal weapon systems may include but are not limited to:
i. Self-destructive, dangerous and or combative individuals ii. Riot/crowd control and civil unrest incidents
iii. Circumstances where a tactical advantage can be obtained. iv. Potentially vicious animals
v. Training exercises or approved demonstrations.

c. Authorized Use
Only officers who have received POST certification in the use of chemical agents are authorized to use chemical agents.

d. Training
Sworn members utilizing chemical agent canisters are certified by POST less lethal and chemical agent instructors.
e. Lifespan
5 years from manufacturing dates

f. Fiscal Impact
No annual cost.

g. Legal and Procedural Rules
It is the policy of the Fontana Police Department and Inland Valley SWAT to utilize chemical agents only for official law enforcement purposes, and pursuant to State and Federal Law, including Fontana Police Use of Force policy.

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Less Lethal Shotgun: Less Lethal Shotgun is used to deploy the less lethal 12-gauge Super-Sock Beanbag Round.
a. Description, quantity, capabilities, and purchase cost REMINGTON LESS LETHAL SHOTGUN, cost: $700, quantity: 35. The Remington 870 Less Lethal Shotgun is used to deploy the less lethal 12-gauge Super-Sock Beanbag Round up to a distance of 75 feet. The range of the weapon system helps to maintain space between officers and a suspect reducing the immediacy of the threat which is a principle of De-escalation.
12-GAUGE SUPER-SOCK BEANBAG ROUND, cost: $5, quantity: 2525. A less lethal 2.4- inch 12-gauge shotgun round firing a ballistic fiber bag filled with 40 grams of lead shot at a velocity of 270-290 feet per second (FPS). CTS Super-Sock rounds are discharged from a dedicated 12-gauge shotgun that is distinguishable by an orange butt stock and fore grip. This round provides accurate and effective performance when fired from the approved distance of not fewer than five (5) feet. Effectiveness depends on many variables, such as distance, clothing, stature, and the point where the projectile impacts b. Purpose
To limit the escalation of conflict where employment of lethal force is prohibited or undesirable.
c. Authorized Use

1.Self-destructive, dangerous and/or combative individuals.

2.Riot/crowd control and civil unrest incidents.

3. Circumstances where a tactical advantage can be obtained.

4. Potentially vicious animals.

5. Training exercises or approved demonstrations.
d. Lifespan
No expiration.
e. Fiscal Impact
None
f. Training
All officers are trained in the 12 gauge less lethal shotgun as a less lethal option by in- service training.

225
h. Legal and Procedural Rules
It is the policy of the Fontana Police Department to utilize the less lethal shotgun only for official law enforcement purposes, and pursuant to State and Federal law, including those regarding the use of force.

226
Distraction Devices: A distract device is ideal for distracting dangerous suspects during assaults, hostage rescue, room entry or other high-risk arrest situations. a. Description, quantity, capabilities, and purchase cost Defense Technology, 8933 Low Roll Distraction Device, cost: $50, quantity: 30.

Shared equipment for Inland Valley SWAT. A non-bursting, non-fragmenting, limited rolling device that produces a thunderous bang with an intense bright light. Ideal for distracting dangerous suspects during assaults, hostage rescue, room entry or other high-risk arrest situations
b. Purpose
To produce atmospheric over-pressure and brilliant white light and, as a result, can cause short-term (6 - 8 seconds) physiological/psychological sensory deprivation to give officers a tactical advantage.
c. Authorized Use
Diversionary Devices shall only be used:
• By officers who have been trained in their proper use. • In hostage and barricaded subject situations.
• In high-risk warrant (search/arrest) services where there may be extreme hazards to officers or there is no response from suspects from announcements
• During other high-risk situations where their use would enhance officer safety.
• During training exercises.
d. Lifespan
Until used.
e. Fiscal Impact
No annual maintenance.
f. Training
Prior to use, officers must attend divisionary device training that is conducted by Post certified instructors. SWAT team members consistently train on the use of distraction devices.
g. Legal and Procedural Rules
It is the policy of the Fontana Police Department and Inland Valley SWAT to utilize diversion devices only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force. 227
Explosive Breaching Tools: Tools that are used to conduct an explosive breach. All explosive breaching equipment is shared with the Inland Valley SWAT agencies. a. Description, quantity, capabilities, and purchase cost DETONATING CORD, cost: $1 per foot, quantity: 700 meters. The detonating cord is a thin, flexible plastic tube usually filled with pentaerythritol tetranitrate (PETN, pentrite). With the PETN exploding at a rate of approximately 6400 m/s, any common length of detonation cord appears to explode instantaneously. It is a high-speed fuse which explodes, rather than burns, and is suitable for detonating high explosives.

BLASTING CAP, cost: $12, quantity: 73. A blasting cap is a small sensitive primary explosive device generally used to detonate a larger, more powerful and less sensitive secondary explosive such as TNT, dynamite, or plastic explosive. Blasting caps come in a variety of types, including non-electric caps, electric caps, and fuse caps.
b. Purpose
To safely and quickly gain entry into a structure.
c. Authorized Use
Explosive breaching may only occur after authorization by the Incident Commander or SWAT Commander in the field, and during training exercises. d. Lifespan
Blasting Caps- 10 years
Detonating cord- 10 years
e. Fiscal Impact
One time purchase.
f. Training
All officers who use explosive breaching tools shall attend an approved Tactical Explosive Breacher Course and must additionally receive quarterly training for explosive operations.
g. Legal and Procedural Rules
It is the policy of the Fontana Police Department and Inland Valley SWAT to utilize explosive breaching tools only for official law enforcement purposes, and pursuant to State and Federal law.

228
Rifles: Guns that are fired from shoulder level, thereby have greater accuracy over a long distance. a. Description, quantity, capabilities, and purchase cost Colt LE 6920-5.56mm Patrol
Colt LE 6933-5.56mm Special Ops and Traffic
Colt LE 6946-5.56mm Special Ops and Traffic
Daniel Defense DDM4 5.56mm
Lewis Machine & Tool MWS .308 caliber
b. Purpose
To be used as precision weapons to address a threat with more precision and/or greater distances than a handgun, if present and feasible. c. Authorized Use
Only members that have successfully completed department rifle training are authorized to use a rifle. (Policy 312.13)
d. Lifespan
No expiration
e. Fiscal Impact
None.
f. Training
Prior to using a rifle, officers must be certified by POST instructors in the operation of the rifle. Additionally, all members that operate any rifle are required to pass a range qualification two times a year. g. Legal and Procedural Rules
Use is established under policy 312 of the Fontana Police Department. It is the policy of the Fontana Police Department to utilize rifles only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.

229

230

CITY OF FONTANA
2024 – Annual Military Equipment Report,
Prepared Pursuant to Government Code § 7072
In accordance with Government Code section 7072, the Fontana Police Department hereby submits for City Council review and approval the following annual military equipment report.

1. A summary of how the military equipment was used and the purpose of its use.

All military equipment owned by the Department, which is detailed in the attached Fontana Police Military Equipment Inventory, was used exclusively for the purposes designated by the Department’s Military Equipment Policy (No. 709). In general, those purposes include use of standard patrol rifles and projectiles; use of unmanned aircraft systems for enhanced investigation and community safety; use of unmanned robotic machines operating on the ground to remotely gain visual/audio data, deliver HNT phone, open doors, disrupt packages, clear buildings, and make announcements; use of armored vehicles for transporting officers and supporting personnel during high-risk tactical operations; use of an NIJ Level IV Armored Caterpillar Multi-Terrain Loader to provide capability for defensive ballistic protection, rescue platforms for elevated structures, and use in rough terrain environments where other equipment might be limited; use of long range acoustic devices to issue dispersal orders during crowd and riot control situations, to address the public in the event of civil emergencies, natural disasters, evacuations, or police incidents, and to issue a warning tone; use of explosive breaching tools during tactical entry into a dwelling or other enclosed space when other breaching options have failed or when required; use of distraction devices to produce atmospheric over-pressure and brilliant white light and, as a result, can cause short‐ term (6 ‐ 8 seconds) physiological/psychological sensory deprivation to give officers a tactical advantage; use of chemical agents and smoke canisters (by officers who are properly POST certified) to limit the escalation of conflict where employment of lethal force is prohibited or undesirable; use of projectile launch platforms and associated munitions to limit the escalation of conflict where employment of lethal force is prohibited or undesirable; and use of beanbag rounds and less lethal shotguns to limit conflict escalation and use of lethal force. In 2024, the Department used items from the patrol rifles, unmanned aircraft, and explosive breaching tools categories of the inventory, for the purpose of effectively and safely carrying out its duties. Officers are properly trained and certified to use the equipment in the inventory.

2. A summary of any complaints or concerns received concerning the military equipment.

The Department did not receive any complaints or citizen outreach concerning the Department’s Military Equipment Use Policy or ongoing use of said equipment. 231

3. The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response.

There were no violations of the Policy, and accordingly, no audits or actions took place in response.

4. The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the calendar year following submission of the annual military equipment report.

Costs associated with military equipment in 2024 included the purchase of four (4) Daniel Defense SWAT Rifles, associated ammunition, three (3) Paladin Drone Systems and the training courses for the officers (including overtime costs). These costs were accounted for in the City’s 2024 budget. The Department does not currently have plans to purchase additional military equipment in 2025, but will report back to the City Council next year.

5. The quantity possessed for each type of military equipment.

The quantity for each type of military equipment, including the new equipment purchased in 2024, is listed in the updated Military Equipment Inventory List, available on the City’s website and in person at the Department.

6. If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment.

The Department does not presently have plans to purchase additional military equipment in 2025.
232

2024

FONTANA POLICE DEPARTMENT

MILITARY EQUIPMENT INVENTORY
FOR JANUARY 1
ST
, 2024-DECEMBER 31
ST
, 2024

233

MILITARY EQUIPMENT INVENTORY
The Fontana Police Department utilizes the equipment listed below for law enforcement purposes only, in a manner that is consistent with the equipment's category's description. The Department's use complies with state and federal law, including any licensing or certification requirements, and County and Department policies and procedures. All equipment is used in a manner that protects public and officer safety and the community's civil rights and civil liberties, with the goal of minimizing injury to persons and property, including when exigent circumstances arise that may require a related use not explicitly described below. Deployments are relegated to those who have completed requisite training or qualification, including that from the Department and the Commission on Peace Officer Standards and Training (POST).

234

Unmanned Aircraft System (UAS):

Unmanned Aviation Systems (UAS) are unmanned, remotely controlled aircraft that are equipped with various sensors and are used to minimize injury or death to suspects, safety members, and others, and to avoid property damage. UAS use is often necessary for visual observation of incidents where a danger to life exists and traditional observation methods would be ineffective and more dangerous. Description, quantity, capabilities, and purchase cost of current UAS:

DJI MAVIC MINI, cost: $450 each, quantity- 2
Can be flown indoor or outdoor. Used primarily to search the interior of structures.

DJI MAVIC 2 Air, cost: $ 1,000 each, quantity- 1
Similar to the DJI Mavic Mini but has a better camera and longer battery life.

Harder to maneuver indoors and so it is better suited for outdoor use.

DJI MAVIC 3 Air, cost: $2,300 each, quantity- 1
This is an updated version of the DJI Mavic and has an upgraded camera and battery life.

235
Instant Eye MK, cost: $30,000 total with training, quantity- 2 This drone has advanced performance and features including F.L.I.R. which allows officers to see heat emitted from suspects. This is most valuable when the suspect is in darkness or hiding behind objects.

DJI Matrice 30T, cost: $10,000, total program: cost $200,000, quantity- 3 Integrated Wide, Zoom, and Infrared cameras with a laser Rangefinder sensor. These drones have been purchased and set up for the new Drone as a First Responder Program. The three drones are permanently docked at three separate locations around the city. Pilots will launch the drones from a desk and respond to anywhere within city limits in 90 seconds.

a. Purpose
To be deployed when its view would assist officers or incident commanders with the following situations, which include but are not limited to:

1. major collision investigations.

2. search for missing persons.

3. natural disaster management.

4. crime scene photography.

5. SWAT, tactical or other public safety and life preservation missions.

6. In response to specific requests from local, state or federal fire authorities for fire response and/or prevention.

b. Authorized Use

Only assigned operators who have completed the required training shall be permitted to operate the UAS during approved missions.

c. Expected Life Span
10 years all equipment.

d. Fiscal Impact
236

Drone as a first Responder system will cost approximately $50,000 per year.

The remainder of the drones are a one time cost.

e. Training

Each operator must attend a 40-hour department training and ongoing quarterly training.

f. Legal and Procedural Rules

The Fontana Police Department will utilize UAS only for official law enforcement purposes and in a manner that respects the privacy of our community, pursuant to State and Federal law.

237
Robotics:

Unmanned machine operating on the ground utilized to enhance the safety of the community and officers.
a. Description, quantity, capabilities, and purchase cost:

ICORE (Rialto PD equipment shared for Inland Valley SWAT), cost: $40,000.

Quantity- 1
This robot is equipped with an arm that can move objects or even open doors. There are multiple cameras and
microphones/speakers for remote communication. The tracks allow it to reach areas that are tougher to reach for smaller robotics.

AVATAR, cost: $20,000. Quantity- 1
Equipped with cameras and adjustable tracks. This robot is mainly used for remote observation.

RECON SCOUT (Rialto PD equipment share), cost: $7,000. Quantity- 1 The size and durability of this robot allow it to be thrown places that officers cannot access. The camera allows for remote visual observation.

238

b. Purpose
To be used to remotely gain visual/audio data, deliver HNT phone, open doors, disrupt packages, and clear buildings and make announcements.

c. Authorized Use
Only assigned operators who have completed the required training shall be permitted to operate the robots and at the discretion of the Incident or SWAT Commander.

d. Expected Life Span
All robots, 10-15 years.

e. Fiscal Impact
Robots are all a one-time purchase.

f. Training
All robot operators are assigned to SWAT and receive on-going training 20 hours a month.

g. Legal and Procedural Rules
It is the policy of the Fontana Police Department to utilize a robot only for official law enforcement purposes, and in a manner that respects the privacy of our community, pursuant to State and Federal law.

239

Armored Vehicles:

Commercially produced wheeled armored personnel vehicle utilized for law enforcement purposes.

a. Description, quantity, capabilities, and purchase cost:

LENCO BEARCAT, G2, cost: $315,000.00, quantity: 1.

The Lenco Bearcat, G2, is an armored vehicle that seats 10-12 personnel with an open floor plan that allows for rescue of individuals. It can stop various projectiles, which provides greater safety to citizens and officers beyond the protection level of shield and personal body armor.

b. Purpose
To be used in response to critical incidents to enhance officer and community safety, improve scene containment and stabilization, and assist in resolving critical incidents.
c. Authorized Use
The use of armored vehicles shall only be authorized by a supervisor, based on the specific circumstances of a given critical incident. d. Lifespan
25 years.
e. Fiscal Impact
One time purchase with general maintenance fees ($12,000 annually). f. Training
240
Armored vehicle uses and training takes place during annual trainings provided by the department. All sworn personnel are trained in the tactics and capabilities of the armored vehicles.
g. Legal and Procedural Rules
It is the policy of the Fontana Police Department to utilize armored vehicles only for official law enforcement purposes, and pursuant to State and Federal law.

241

NIJ Level IV Armored Caterpillar (CAT) Multi-Terrain Loader (The ROOK):

The ROOK is a custom “armored critical incident vehicle” built on the chassis of a CAT Bulldozer, manufactured by Ring Power. The ROOK is built to increase job safety, versatility, and mission specific response. The ROOK is equipped with powerful mission specific attachments. The ROOK is capable of being used in tight areas both inside and outside, where traditional armored vehicles may not be able to enter.

a. Description, quantity, capabilities, and purchase cost:

ROOK- Modified CAT compact Track Loader chassis, cost: $400,000, quantity: 1.

The ROOK can be utilized by authorized SWAT personnel to identify, discover and locate threats or hazards, to include explosives and ballistic threats. The ROOK may be used to stabilize critical infrastructure and functions to minimize health and safety threats during a terrorist attack. During a terrorist attack, the ROOK will allow for law enforcement protected response.

b. Purpose
242
To provide a capability for defensive ballistic protection in indoor and outdoor environments, rescue platforms for elevated structure rescue, and rough terrain environments where certain equipment would be limited.

c. Authorized Use
The ROOK shall be used by SWAT team members in a manner consistent with Department training. Furthermore, only SWAT team members who have completed the appropriate training, will operate the ROOK.

d. Lifespan
25 years

e. Fiscal Impact
One time purchase and general fleet maintenance fees ($13,500 annually).

f. Training
All driver/operators shall attend formalized instruction and be trained in vehicle operations and practical driving instruction as well as normal SWAT bi-weekly training.

g. Legal and Procedural Rules
It is the policy of the Department to utilize armored vehicles only for official law enforcement purposes, and pursuant to State and Federal law.

243

Long Range Acoustic Device (LRAD) Long Range Acoustical Device:
(LRAD) is a high intensity directional acoustical array for long-range, crystal-clear hailing, notification, and an unmistakable warning tone. The LRAD is primarily used as a communication device.

a. Description, quantity, capabilities, and purchase cost:

LRAD 1000x Mag (received on a grant) Self-contained, portable, and featuring an extended voice broadcast range out to 600 meters, the LRAD ensures voice messages are clearly heard and understood. Obtained by Colton Police Department on a military equipment grant program. LRAD is shared by Inland Valley SWAT agencies.
b. Purpose
To be used to issue dispersal orders during crowd and riot control situations or to address the public in the event of civil emergencies, natural disasters, evacuations, and police incidents (e.g., missing persons, perimeters for wanted suspects/ K9 deployments, etc.). The LRAD may also be used to issue a warning tone.

c. Authorized Use
244
The LRAD shall only be used by officers trained in its deployment. d. Lifespan
No life expectancy.

e. Fiscal Impact
None.

f. Training
All operators receive training prior to operating any of the LRAD’s in the field.

g. Legal and Procedural Rules
It is the policy of the department to utilize the LRAD only for official law enforcement purposes, and pursuant to State and Federal law.

245

40 MM Launchers and Rounds:
40MM LMT Launchers are utilized by department personnel as a less lethal tool to launch impact rounds.
a. Description, quantity, capabilities, and purchase cost:

DEFENSE TECHNOLOGY, 40MM LMT SINGLE SHOT LAUNCHER,
cost: $1000, quantity 50.

The 40MM Single Launcher is a tactical single shot launcher.

DEFENSE TECHNOLOGY, 40MM EXACT IMPACT SPONGE, #6325,
Cost: $18, quantity: 350.

A less lethal 40mm lightweight plastic and foam projectile fired from a single 40mm launcher with a rifled barrel. The 40mm Exact Impact Sponge Round provides accurate and effective performance when fired from the approved distance.

b. Purpose
To limit the escalation of conflict where employment of lethal force is prohibited or undesirable.

c. Authorized Use
Situations for use of the less lethal weapon systems may include, but are not limited to:

1. Self-destructive, dangerous and/or combative individuals.

2. Riot/crowd control and civil unrest incidents.

3. Circumstances where a tactical advantage can be obtained.

4. Potentially vicious animals.

5. Training exercises or approved demonstrations.
d. Training
246
Sworn members utilizing 40MM less lethal chemical agents or impact rounds are trained in there use by POST certified less lethal and chemical agent instructors.
e. Lifespan
25 years.

f. Fiscal Impact
No annual fiscal impact.

g. Legal and Procedural Rules

It is the policy of the Fontana Police Department to utilize the 40mm only for official law enforcement purposes, and pursuant to State and Federal law, including those regarding the use of force.

247
Chemical Agent and Smoke Canisters:

Canisters that contain chemical agents that are released when deployed.

a. Description, quantity, capabilities, and purchase cost:

Various Quantities of Chemical agent munitions, which are commonly referred to as “tear gas,” are used by the Fontana Police Department and Inland Valley SWAT team as a non- lethal tool to disperse rioting suspects and on barricaded suspects per Fontana Police Department Policy and applicable law. The Fontana Police Department uses chemical agents which are used by law enforcement across the United States: CS (2 Chlorobenzylidenemalononitrile) and OC (Oleoresin Capsicum). CS is an irritating agent and lachrymator (irritates the eyes and causes tears to flow). CS has been medically tested in the UK and US, specifically by the U.S. Army. There are no known allergic reactions to CS. OC was de-regulated in California in 1996, is endorsed by the FBI, and is available to civilians to legally possess (2.5 oz. or less). OC is an inflammatory agent which causes involuntary closure of eyes (open in 2-5 minutes) and respiratory inflammation (subsides in approximately 2 minutes).

Fontana Police Inventory
Defense Technology Pocket Tactical CS -35

Defense Technology pocket tactical safe smoke - 5

Defense Technology Flameless Tri-Chamber CS -15
Defense Technology Spede Heat CS - 21
Defense Technology 40 mm Warning/Signal 50 meter -17
Defense Technology Riot Control CS - 13
Defense Technology Flameless Tri-Chamber OC - 11
Defense Technology Triple Chaser CS - 6
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Defense Technology Direct Impact Marking round - 6
Defense Technology 40 mm Saf-Smoke 100 meters – 2
Defense Technology 40MM Marking/ Signaling – 2
Defense Technology 40 mm Ferret CS - 39
Defense Technology Spede Heat OC – 1
Defense Technology Aerosol OC Vapor- 2
Defense Technology Triple Chaser OC – 1
Defense Technology Triple Chaser Safe Smoke- 1
Defense Technology Flameless Tri-Chamber Safe Smoke - 1 Defense Technology 5230 Baffled Tactical CS Smoke – 11

Inland Valley SWAT Inventory
Defense Technology 40 mm Liquid Ferret - 50
Defense Technology Pocket Tactical CS -14
Defense Technology Pocket Tactical Smoke - 3
Defense Technology CTS 5230 Baffle CS - 1
Defense Technology Smoke - 3
Defense Technology Aerosol/OC Vapor - 10
Defense Technology OC Stinger Handball - 20
Defense Technology Triple Chaser Smoke - 3
Defense Technology CS Stinger Handball - 20
Defense Technology Flameless Tri-Chamber CS - 4
Defense Technology Spede Heat CS - 16
Defense Technology Riot Control CS - 10
Defense Technology Triple Chaser CS - 6
Defense Technology Spede Heat CS 40 mm – 15
Defense Technology Launcher Spede Heat – 15
Defense Technology Triple Chaser Smoke- 3
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Defense Technology 5230 Baffled CS Smoke- 30
Defense Technology Riot Control OC – 7
Defense Technology Packet Tactical OC – 1
Defense Technology Spede Heat OC – 9
Defense Technology Flameless Tri-Chamber OC - 2

b. Purpose
To limit the escalation of conflict where employment of lethal force is prohibited or undesirable. Situations for use of the less lethal weapon systems may include but are not limited to:
i. Self-destructive, dangerous and or combative individuals ii. Riot/crowd control and civil unrest incidents
iii. Circumstances where a tactical advantage can be obtained. iv. Potentially vicious animals
v. Training exercises or approved demonstrations.

c. Authorized Use
Only officers who have received POST certification in the use of chemical agents are authorized to use chemical agents.

d. Training
Sworn members utilizing chemical agent canisters are certified by POST less lethal and chemical agent instructors.
e. Lifespan
5 years from manufacturing dates.

f. Fiscal Impact
No annual cost.

g. Legal and Procedural Rules
It is the policy of the Fontana Police Department and Inland Valley SWAT to utilize chemical agents only for official law enforcement purposes, and pursuant to State and Federal Law, including Fontana Police Use of Force policy.

250
Less Lethal Shotgun:

Less Lethal Shotguns are used to deploy the less lethal 12-gauge Super-Sock Beanbag Round. a. Description, quantity, capabilities, and purchase cost:

REMINGTON LESS LETHAL SHOTGUN, cost: $700, quantity: 21.

The Remington 870 Less Lethal Shotgun is used to deploy the less lethal 12 -gauge Super-Sock Beanbag Round up to a distance of 75 feet. The range of the weapon system helps to maintain space between officers and a suspect reducing the immediacy of the threat which is a principle of De-escalation.

12-GAUGE SUPER-SOCK BEANBAG ROUND, cost: $5, quantity:
1800.

A less lethal 2.4-inch 12-gauge shotgun round firing a ballistic fiber bag filled with 40 grams of lead shot at a velocity of 270-290 feet per second (FPS). CTS Super-Sock rounds are discharged from a dedicated 12-gauge shotgun that is distinguishable by an orange butt stock and fore grip. This round provides accurate and effective performance when fired from the approved distance of not fewer than five (5) feet. Effectiveness depends on many variables, such as distance, clothing, stature, and the point where the projectile impacts.

b. Purpose
To limit the escalation of conflict where employment of lethal force is prohibited or undesirable.
c. Authorized Use

1.Self-destructive, dangerous and/or combative individuals.

2.Riot/crowd control and civil unrest incidents.
251

3. Circumstances where a tactical advantage can be obtained.

4. Potentially vicious animals.

5. Training exercises or approved demonstrations.
d. Lifespan
No expiration.
e. Fiscal Impact
None.
f. Training
All officers are trained in the 12 gauge less lethal shotgun as a less lethal option by in- service training.

h. Legal and Procedural Rules
It is the policy of the Fontana Police Department to utilize the less lethal shotgun only for official law enforcement purposes, and pursuant to State and Federal law, including those regarding the use of force.

252

Distraction Devices:

A distract device is ideal for distracting dangerous suspects during assaults, hostage rescue, room entry or other high-risk arrest situations.
a. Description, quantity, capabilities, and purchase cost:

Defense Technology, 8933 Low Roll Distraction Device, cost: $50, quantity: 2.

CTS single bang, cost: $55 each. Quantity 50.

CTS double-bang, cost: $65 each. Quantity 10.

Def-Tech bang, cost: $65 each. Quantity 1.

CTS Five-Bang, cost: $85 each. Quantity 3.

CTS Nine-Bang, cost: $115 each. Quantity 4.

A non-bursting, non-fragmenting, limited rolling device that produces a thunderous bang with an intense bright light. Ideal for distracting dangerous suspects during assaults, hostage rescue, room entry or other high-risk arrest situations.

b. Purpose
To produce atmospheric over-pressure and brilliant white light and, as a result, can cause short-term (6 - 8 seconds) physiological/psychological sensory deprivation to give officers a tactical advantage.
c. Authorized Use
Diversionary Devices shall only be used:
 By officers who have been trained in their proper use.  In hostage and barricaded subject situations.
 In high-risk warrant (search/arrest) services where there may be extreme hazards to officers or there is no response from suspects from announcements.
 During other high-risk situations where their use would enhance officer safety.
 During training exercises.
d. Lifespan
Until used.
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e. Fiscal Impact
No annual maintenance.
f. Training
Prior to use, officers must attend divisionary device training that is conducted by Post certified instructors. SWAT team members consistently train on the use of distraction devices.
g. Legal and Procedural Rules
It is the policy of the Fontana Police Department and Inland Valley SWAT to utilize diversion devices only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.

254

Explosive Breaching Tools:

Tools that are used to conduct an explosive breach. All explosive breaching equipment is shared with the Inland Valley SWAT agencies.
a. Description, quantity, capabilities, and purchase cost:

DETONATING CORD, cost: $1 per foot, quantity: 1400 ft./ 437 meters.

The detonating cord is a thin, flexible plastic tube usually filled with pentaerythritol tetranitrate (PETN, pentrite). With the PETN exploding at a rate of approximately 6400 m/s, any common length of detonation cord appears to explode instantaneously. It is a high-speed fuse which explodes, rather than burns, and is suitable for detonating high explosives.

BLASTING CAP, cost: $12, quantity: 60.

A blasting cap is a small sensitive primary explosive device generally used to detonate a larger, more powerful and less sensitive secondary explosive such as TNT, dynamite, or plastic explosive. Blasting caps come in a variety of types, including non -electric caps, electric caps, and fuse caps.

b. Purpose
To safely and quickly gain entry into a structure.
c. Authorized Use
255
Explosive breaching may only occur after authorization by the Incident Commander or SWAT Commander in the field, and during training exercises. d. Lifespan
Blasting Caps- 10 years.

Detonating cord- 10 years.
e. Fiscal Impact
One time purchase.
f. Training
All officers who use explosive breaching tools shall attend an approved Tactical Explosive Breacher Course and must additionally receive quarterly training for explosive operations.
g. Legal and Procedural Rules
It is the policy of the Fontana Police Department and Inland Valley SWAT to utilize explosive breaching tools only for official law enforcement purposes, and pursuant to State and Federal law.

256

Rifles:

Guns that are fired from shoulder level, thereby have greater accuracy over a long distance. a. Description, quantity, capabilities, and purchase cost:

Colt LE 6920-5.56mm Patrol, cost: $1,000. Quantity 47.

Colt LE 6933-5.56mm Special Ops and Traffic, cost: $1,000. Quantity 52.

Colt LE 6946-5.56mm Special Ops and Traffic, cost: $1,000. Quantity 12.

Daniel Defense DDM4 5.56mm, cost: $1,450. Quantity 25.

Lewis Machine & Tool MWS .308 caliber, cost: $1,200. Quantity 2.

Colt Commandos, cost: $1,000. Quantity 2.

b. Purpose
To be used as precision weapons to address a threat with more precision and/or greater distances than a handgun, if present and feasible. c. Authorized Use
Only members that have successfully completed department rifle training are authorized to use a rifle. (Policy 312.13)
d. Lifespan
No expiration.
e. Fiscal Impact
257
None.
f. Training
Prior to using a rifle, officers must be certified by POST instructors in the operation of the rifle. Additionally, all members that operate any rifle are required to pass a range qualification two times a year. g. Legal and Procedural Rules
Use is established under policy 312 of the Fontana Police Department. It is the policy of the Fontana Police Department to utilize rifles only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.

258
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0154 Agenda Date: 4/22/2025
Agenda #: A. Category: New Business
FROM:

Administrative Services
SUBJECT:

Introduction and First Reading of Ordinance No. 1968, adding Article VII to Fontana Municipal Code Chapter 16 regarding Camping in the City.

RECOMMENDATION:

Introduce and conduct the first reading, by title only, for Ordinance No. 1968, an Ordinance adding Article VII entitled “Camping” to Chapter 16 of the Fontana Municipal Code, establishing procedures for the handling of camping and associated matters.

COUNCIL GOALS:
· Operate in a businesslike manner by correcting problems immediately. · Enhance the local environment for future generations and create a healthy economic and environmental future by encouraging conservation, waste reduction, and recycling in the community.
· Enhance the local environment for future generations and create a healthy economic and environmental future by creating neighborhoods that are attractive, safe and convenient for walkers and bicyclists.

DISCUSSION:

The City of Fontana continues to strive for a safe, clean and healthy environment, walkways, streets, parks, and public spaces. These areas are sometimes used by some members of the public to set up sleeping and camping spaces which can include tents, bedding, personal property, and pets. Some of these encampments are made of even more permanent materials. These encampments are often unsanitary, left with abandoned personal property, and can impact the public use and enjoyment of these areas.

In 2018, in the case of Martin v Boise, the U.S. Court of Appeals for the Ninth Circuit prohibited a municipality from enforcing its “camping” laws unless the municipality could provide a bed for the person to sleep. This restriction was rooted in the Eighth Amendment to the US Constitution preventing Cruel and Unusual Punishment.

In June 2024, in the case City of Grants Pass v. Johnson, the US Supreme Court ruled that cities can enact a ban on camping on public property, even if there is no bed or shelter space available, while not violating the Eighth Amendment.

Therefore, staff was directed to draft an amendment to the Fontana Municipal Code banning camping on public property in the City of Fontana and establishing rules for noticing campers that camping on City of Fontana Printed on 4/15/2025Page 1 of 2
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File #: 25-0154 Agenda Date: 4/22/2025
Agenda #: A. Category: New Business
public property in Fontana is prohibited, the potential removal for personal property, the penalties for camping on public property and how those penalties will be implemented.

Additionally, the safety of the public as well as the safety of staff who may be called upon to removal personal property is paramount. The amendment provides options for immediate disposal of personal property if that property is deemed to constitute a public health risk.

FISCAL IMPACT:

The fiscal impact is undetermined at this time but could include the cost to store personal property, as well as staff time to patrol for camping and clear out camping sites.

MOTION:

Approve staff’s recommendation
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ORDINANCE NO. 1968

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FONTANA, CALIFORNIA, ADDING ARTICLE VII ENTITLED “CAMPING” TO
CHAPTER 16 OF THE FONTANA MUNICIPAL CODE TO ESTABLISH

PROCEDURES FOR THE HANDLING OF CAMPING AND ASSOCIATED
MATTERS.

WHEREAS, the City of Fontana, California (“City”) is a general law city, duly organized under the California Constitution and laws of the State of California; and WHEREAS, pursuant to Article XI, Section 7 of the California Constitution, the City may adopt and enforce ordinances and regulations not in conflict with general laws to protect and promote the public health, safety, and welfare of its citizens; and WHEREAS, the City desires to add Article VII (“Camping”) to Chapter 16 of the Fontana Municipal Code (“FMC”) to establish procedures for the handling of camping and associated matters to promote and protect the health and safety of the public.

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

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

Section 2. CEQA. The City Council finds that this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.

Section 3. Municipal Code Amendments . Article VII of Chapter 16 is hereby added, as shown in Exhibit A, which is attached hereto and incorporated herein by this reference.

Section 4. Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this ordinance, or any part thereof, is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, c lause or phrase be declared unconstitutional. If for any reason any portion of this ordinance is found to be invalid by a court of competent jurisdiction, the balance of this ordinance shall not be affected.

Section 5. 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 of 261
Ordinance No. 1968
2 of 2

these records is the City Clerk.

Section 6. Effective Date. This Ordinance shall be effective thirty (30) days following its adoption.

Section 7. Publication. The City Clerk shall certify to the adoption of this Ordinance. Not later than fifteen (15) days following the passage of this Ordinance, the Ordinance, or a summary thereof, along with the names of the City Council members voting for and against the Ordinance, shall be published in a newspaper of general circulation in the City of Fontana.

APPROVED AND ADOPTED this 13th day of May, 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 on the 22nd day of April, 2025 and was finally passed and adopted not less than five days thereafter on the 13th day of May, 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

262

EXHIBIT A

Chapter 16 – MISCELLANEOUS PROVISIONS AND OFFENSES

ARTICLE VII.– CAMPING.

Sec. 16-152. - Purpose.

The purpose of this Chapter is to maintain streets, parks, and other public and private areas within the City in a clean, sanitary, and accessible condition and to adequately protect the health, safety, and welfare of the public. Nothing in this Chapter is intended to interfere with otherwise lawful and ordinary uses of public or private property, or to criminalize or regulate the status of being homeless.

Sec. 16-153. - Definitions.

Unless the particular provisions or the context otherwise requires, the definitions contained in this section shall govern the construction, meaning, and application of words and phrases used in this chapter.
"Abandoned personal property" means personal property that the owner surrenders, relinquishes, or disclaims. Personal property left unattended on public property for more than one hour shall be deemed abandoned. Personal property may also be deemed abandoned based on the indicia of abandonment and totality of the circumstances.

Abandonment does not require express surrender, relinquishment, nor disclaimer by the owner. Indicia of abandoned personal property include, but are not limited to, personal property found where nobody in the immediate vicinity claims ownership; and personal property left on private real property for any period of time without the permission of the real property owner or current tenant. "Camp" means to place, pitch, or occupy camp facilities; to live temporarily in a camp facility or outdoors; or to use camp paraphernalia for the purpose of temporary or permanent human habitation.
"Camp facilities" include, but are not limited to, tents, huts, vehicles, vehicle camping outfits, temporary shelter, bivouacs, sleeping bags, tarpaulins, ground cover, and similar facilities. "Camp paraphernalia" includes, but is not limited to, bedrolls, tarpaulins, cots, beds, sleeping bags, hammocks, cooking facilities, and similar equipment.
"Establish" means setting up or moving equipment, supplies, materials, or camp paraphernalia onto public or private property to camp or operate camp facilities. "Maintain" means keeping or permitting equipment, supplies, or materials to remain on public or private property.
"Operate" means participating or assisting in establishing or maintaining a camp or camp facility. "Personal property" means any and all tangible items including, but not limited to, goods, materials, merchandize, camp paraphernalia, luggage, backpacks, books, clothing, documents, household goods, medication, and animals. "Private property" means all privately owned property.
"Public property" means all property owned, possessed, controlled, or operated by a public agency, including, but not limited to, public rights-of-way, streets, sidewalks, alleys, trails, bike paths, waterways, easements, parks, unimproved land, government buildings, schools, libraries, etcetera.
"Store" means to put aside or accumulate for use when needed, to put for safekeeping, or to place or leave in a location.
263

EXHIBIT A

Sec. 16-154. - Unlawful camping.

A. It is unlawful and a public nuisance for any person to camp; establish, maintain, allow, operate, or occupy camp facilities; or use camp paraphernalia, in the following areas:

1. On any public property unless expressly permitted by the City;

2. Any public or private street or right-of-way, including sidewalks, bus stops, and public landscaping;

3. Any parking lot, yard, building setback, vacant land, open space, park, or any other area open to, accessible to, or controlled by the public, improved or unimproved;

4. In, on, under, or adjacent to any structure not intended for human occupancy;

5. In, on, under, or adjacent to a parked vehicle on any public or private property including, but not limited to, an automobile, bus, truck, camper, trailer, or recreational vehicle. For purposes of this section, "recreational vehicle" shall have the same meaning as provided in Section 30-12 of this Code;

6. On private property without consent of the property owner;

7. On private property within view of a public right-of-way;

8. On private property where such use violates any provision of this Code or State law; or

9. On private property in a manner that causes a public nuisance.

B. The prohibition on camping in this section shall not apply to the following:

1. Camping on residential private property with consent of the property owner, and where such use does not violate any provision of this Code or State law, does not create or permit a public nuisance, and where such use is not within view of the public right-of-way;

2. Camping where specifically permitted within City-approved campgrounds or facilities; or

3. Camping in connection with a special event as authorized by the City through issuance of a permit pursuant to Section 17-5 of this Code.

C. The exceptions contained in Subdivision B do not apply where camping:

1. Is conducted in such a manner as to create inadequate sanitation or any other public nuisance;

2. Violates any law;

3. Is of such frequency, intensity, or duration as to constitute a use of land prohibited by zoning regulations;

4. Is prohibited under any other provision of this Code concerning the use of mobile homes; or

5. Requires any fee, charge, or other monetary consideration for the privilege of camping, for any services, or for the use of any facilities related thereto, other than at City-approved campgrounds or facilities. 264

EXHIBIT A

D. Nothing in this chapter is intended to prohibit or make unlawful activities of a property owner or lawful tenant of private property that are incidental to the lawful and authorized use of private property for residential or other approved and legal purposes. Nothing herein is intended to prohibit or make unlawful activities of a property owner or other lawful tenant if such activities are expressly authorized by the City's zoning ordinance, other ordinances, or regulations.

Sec. 16-155. - Storage of personal property.

A. It is unlawful and a public nuisance for any person to store personal property in any of the following areas, except as otherwise approved by the city manager or designee or as permitted by this Code or State law:

1. Any public property;

2. Any public or private right-of-way, including streets, sidewalks, alleys, trails, bike paths, bus stops, and public landscaping; or

3. Any parking lot, yard, building setback, vacant land, open space, park, or any other area open to, accessible to, or controlled by the public, improved or unimproved.

B. Personal property stored in violation of this section shall be deemed abandoned and shall be subject to impoundment and/or disposal pursuant to procedures established in Sections 16-157 through 16-161.

C. No person may obstruct any public or private right-of-way either with their person or with their personal property, or otherwise interfere with the use and enjoyment of public parks, facilities, public rights of way, or other public property.

Upon notice by any enforcement officer of the City, any such person shall immediately remove the obstruction. Failure to remove the obstruction shall be unlawful and shall constitute a public nuisance. Any personal property that is creating an obstruction as described in this Subsection that is not removed following notice may be impounded as provided in this Chapter.

D. Animals seized by the City pursuant to this Chapter, including service animals, shall be taken to the local animal shelter and held for sixty days. In the event that the animal is not claimed within those sixty days, the owner is deemed to have abandoned the animal. Abandoned animals shall be disposed of pursuant to the animal shelter’s policy for abandoned animals.

Sec. 16-156. - Receiving personal property.

The chief of police or designee shall make provisions for safekeeping personal property received by the City. In the event the personal property is delivered to the city by a person, a receipt shall be issued to that person, unless the property was found in the course of employment by an employee or agent of the City.

Sec. 16-157. - Notice.

A. No Notice for Abandoned, Dangerous, or Perishable Property, Contraband, or Waste. Unlawfully stored personal property that is believed in good faith to be abandoned, which presents an immediate threat to public health or safety, that is perishable, that is contraband, which clearly constitutes waste or trash as defined 265

EXHIBIT A

by this Code, or that is left unattended for more than one hour on public property, may be disposed of without any notice.

B. No Notice for Evidence in Criminal Case. Unlawfully stored personal property that constitutes evidence in a criminal investigation may be impounded without notice.

C. Attended Property Notice. The custodian of attended personal property being unlawfully stored on public property shall be given one hour notice to remove the violating personal property. Any personal property left on public property after that one-hour notice has expired shall be deemed abandoned.

D. Notice Upon Impoundment. The City may impound any personal property unlawfully stored on public property. Except as exempted in Subdivisions A, B, and C, the city shallprovide a written notice in a conspicuous place at or near where the personal property was located, advising where the personal property is being kept and when and where it may be claimed by the owner.

E. Signs. The City may erect signs in commonly affected areas to provide the notices required by this Section.

Sec. 16-158. - Failure to remove attended personal property.

It is unlawful and a public nuisance to fail to remove attended personal property within one hour of receiving notice requiring removal. Moving personal property to another location where storage is prohibited by this Chapter shall not constitute compliance with removal.

Sec. 16-159. - Holding of personal property; repossession by owner.

A. Personal property coming into possession of the City pursuant to this Chapter shall be deposited in a safe place for a period of at least sixty days. In the event such personal property is not claimed within those sixty days, it shall be deemed abandoned personal property and shall be subject to disposition as provided in this Chapter or as otherwise permitted by law.

B. The owner of the personal property may repossess the personal property upon submitting satisfactory proof of ownership during the sixty-day holding period. A person may establish ownership by, among other methods, describing the location where the personal property was found and providing a specific and detailed description of the personal property. If ownership cannot be determined to the satisfaction of the Chief of Police or designee, he or she may refuse to return the personal property until ordered to do so by a court of competent jurisdiction; however, the City shall continue to hold the personal property until such a determination is made if the City is given notice of the court action within the sixty-day holding period.

C. If ownership is determined, the owner shall be required to pay the reasonable costs incurred by the city in impoundment and storage prior to the return of the personal property, unless a financial hardship waiver is submitted to the city by the owner on forms authorized by the city and such waiver is approved by the chief of police or designee.
266

EXHIBIT A

Sec. 16-160. - Evidence in a criminal case.

Notwithstanding Section 16-159, where personal property is impounded for use as evidence in a criminal case, such property shall be held until the final disposition of any pending charges, including appeals, or the lapse of time for filing an appeal, unless a court orders otherwise, in accordance with California Penal Code section 1417 et seq.

Sec. 16-161. - Disposition after holding period.

Upon the expiration of any holding period for received personal property pursuant to Sections 16-159 or 16-160, any remaining personal property not claimed by or returned to the owner may be appropriated to the City upon order of the city manager or designee that the personal property is needed for a public use. Any personal property not appropriated to the City may be sold at a public auction or disposed of in such a manner as deemed appropriate by the city manager ordesignee. If personal property constitutes money, such money shall be deposited into the City's general fund.

Sec. 16-162. - Use of vehicle for human habitation.

It is unlawful for any person to use any motor vehicle or recreational vehicle, as defined by Section 30-12 of this Code, for human habitation on or in any public or private street, alley, parking lot, or any public or privately owned property which is held open for public use. For purposes of this Section, evidence of "human habitation" shall include but not be limited to, observations that the vehicle is being used for living, sleeping, cooking, or bathing purposes. Sleeping in or occupying a parked vehicle for longer than thirty minutes, consecutively or in the aggregate, between the hours of 11:00 p.m. and 5:00 a.m. shall constitute prima facie evidence the vehicle is being used for human habitation.

Sec. 16-163. - Urination or defecation in public view.

It shall be unlawful for any person to urinate or defecate or dump any fecal matter on public or private property in an area exposed to the public view or on any public right-of- way, street, sidewalk, alley, park, or any other space except in a restroom or other facility designed for such purpose.

Sec. 16-164. - Enforcement.

A. Any violation of this Chapter is hereby declared to be unlawful, a public nuisance, and a misdemeanor punishable by a fine of up to $1,000 and imprisonment up to six months.

B. Each person shall be deemed guilty of a separate offense for each and every day, or portion thereof, during which any violation of or failure to comply with any of the provisions of this Chapter is committed, maintained, continued, or permitted by such person, and each instance shall be deemed punishable.

C. The provisions of this Chapter shall not be construed as permitting conduct not proscribed herein and shall not affect the enforceability of any other applicable provisions of law.

D. The City may enforce any violation of this Chapter by any and all means available by law, including, but not limited to, a restraining order, preliminary 267

EXHIBIT A

or permanent injunction, and criminal or administrative enforcement.

E. These remedies are intended to be cumulative and may be used in conjunction with or in lieu of each other remedy.

F. Violations of this Chapter involving a person who willfully resists, delays, or obstructs an authorized City agent from enforcing any provision of this Chapter shall be in violation of this Chapter and subject to arrest and the penalties set forth in this Section.

G. If a person in control of a vehicle is arrested pursuant to this Chapter resulting in that vehicle being left unattended, then that vehicle may be removed by the City in accordance with applicable State lawS such as Vehicle Code sections 22650 through 22711.
268
Chapter 16 – Article VII - CAMPING

Sec. 16-152. - Purpose.

The purpose of this Chapter is to maintain streets, parks, and other public and private areas within the City in a clean, sanitary, and accessible condition and to adequately protect the health, safety, and welfare of the public. Nothing in this Chapter is intended to interfere with otherwise lawful and ordinary uses of public or private property, or to criminalize or regulate the status of being homeless.

Sec. 16-153. - Definitions.

Unless the particular provisions or the context otherwise requires, the definitions contained in this section shall govern the construction, meaning, and application of words and phrases used in this chapter.
"Abandoned personal property" means personal property that the owner surrenders, relinquishes, or disclaims. Personal property left unattended on public property for more than one hour shall be deemed abandoned. Personal property may also be deemed abandoned based on the indicia of abandonment and totality of the circumstances. Abandonment does not require express surrender, relinquishment, nor disclaimer by the owner. Indicia of abandoned personal property include, but are not limited to, personal property found where nobody in the immediate vicinity claims ownership; and personal property left on private real property for any period of time without the permission of the real property owner or current tenant.
"Camp" means to place, pitch, or occupy camp facilities; to live temporarily in a camp facility or outdoors; or to use camp paraphernalia for the purpose of temporary or permanent human habitation. "Camp facilities" include, but are not limited to, tents, huts, vehicles, vehicle camping outfits, temporary shelter, bivouacs, sleeping bags, tarpaulins, ground cover, and similar facilities. "Camp paraphernalia" includes, but is not limited to, bedrolls, tarpaulins, cots, beds, sleeping bags, hammocks, cooking facilities, and similar equipment.
"Establish" means setting up or moving equipment, supplies, materials, or camp paraphernalia onto public or private property to camp or operate camp facilities. "Maintain" means keeping or permitting equipment, supplies, or materials to remain on public or private property.
"Operate" means participating or assisting in establishing or maintaining a camp or camp facility. "Personal property" means any and all tangible items including, but not limited to, goods, materials, merchandize, camp paraphernalia, luggage, backpacks, books, clothing, documents, household goods, medication, and animals.
"Private property" means all privately owned property.
269
"Public property" means all property owned, possessed, controlled, or operated by a public agency, including, but not limited to, public rights-of-way, streets, sidewalks, alleys, trails, bike paths, waterways, easements, parks, unimproved land, government buildings, schools, libraries, etcetera. "Store" means to put aside or accumulate for use when needed, to put for safekeeping, or to place or leave in a location.

Sec. 16-154. - Unlawful camping.

A. It is unlawful and a public nuisance for any person to camp; establish, maintain, allow, operate, or occupy camp facilities; or use camp paraphernalia, in the following areas:

1. On any public property unless expressly permitted by the City;

2. Any public or private street or right-of-way, including sidewalks, bus stops, and public landscaping;

3. Any parking lot, yard, building setback, vacant land, open space, park, or any other area open to, accessible to, or controlled by the public, improved or unimproved;

4. In, on, under, or adjacent to any structure not intended for human occupancy;

5. In, on, under, or adjacent to a parked vehicle on any public or private property including, but not limited to, an automobile, bus, truck, camper, trailer, or recreational vehicle. For purposes of this section, "recreational vehicle" shall have the same meaning as provided in Section 30-12 of this Code;

6. On private property without consent of the property owner;

7. On private property within view of a public right-of-way;

8. On private property where such use violates any provision of this Code or State law; or

9. On private property in a manner that causes a public nuisance.

B. The prohibition on camping in this section shall not apply to the following:

1. Camping on residential private property with consent of the property owner, and where such use does not violate any provision of this Code or State law, does not create or permit a public nuisance, and where such use is not within view of the public right-of- way;

2. Camping where specifically permitted within City-approved campgrounds or facilities; or

3. Camping in connection with a special event as authorized by the City through issuance of a permit pursuant to Section 17-5 of this Code.

C. The exceptions contained in Subdivision B do not apply where camping:

1. Is conducted in such a manner as to create inadequate sanitation or any other public nuisance;

2. Violates any law;

3. Is of such frequency, intensity, or duration as to constitute a use of land prohibited by zoning regulations;

4. Is prohibited under any other provision of this Code concerning the use of mobile homes; or

5. Requires any fee, charge, or other monetary consideration for the privilege of camping, for any services, or for the use of any facilities related thereto, other than at City- approved campgrounds or facilities.

D. Nothing in this chapter is intended to prohibit or make unlawful activities of a property owner or lawful tenant of private property that are incidental to the lawful and authorized use of private 270
property for residential or other approved and legal purposes. Nothing herein is intended to prohibit or make unlawful activities of a property owner or other lawful tenant if such activities are expressly authorized by the City's zoning ordinance, other ordinances, or regulations.

Sec. 16-155. - Storage of personal property.

A. It is unlawful and a public nuisance for any person to store personal property in any of the following areas, except as otherwise approved by the city manager or designee or as permitted by this Code or State law:

1. Any public property;

2. Any public or private right-of-way, including streets, sidewalks, alleys, trails, bike paths, bus stops, and public landscaping; or

3. Any parking lot, yard, building setback, vacant land, open space, park, or any other area open to, accessible to, or controlled by the public, improved or unimproved.

B. Personal property stored in violation of this section shall be deemed abandoned and shall be subject to impoundment and/or disposal pursuant to procedures established in Sections 16-157 through 16-161.

C. No person may obstruct any public or private right-of-way either with their person or with their personal property, or otherwise interfere with the use and enjoyment of public parks, facilities, public rights of way, or other public property. Upon notice by any enforcement officer of the City, any such person shall immediately remove the obstruction. Failure to remove the obstruction shall be unlawful and shall constitute a public nuisance. Any personal property that is creating an obstruction as described in this Subsection that is not removed following notice may be impounded as provided in this Chapter.

D. Animals seized by the City pursuant to this Chapter, including service animals, shall be taken to the local animal shelter and held for sixty days. In the event that the animal is not claimed within those sixty days, the owner is deemed to have abandoned the animal. Abandoned animals shall be disposed of pursuant to the animal shelter’s policy for abandoned animals.

Sec. 16-156. - Receiving personal property.

The chief of police or designee shall make provisions for safekeeping personal property received by the City. In the event the personal property is delivered to the city by a person, a receipt shall be issued to that person, unless the property was found in the course of employment by an employee or agent of the City.

Sec. 16-157. - Notice.

A. No Notice for Abandoned, Dangerous, or Perishable Property, Contraband, or Waste. Unlawfully stored personal property that is believed in good faith to be abandoned, which presents an immediate threat to public health or safety, that is perishable, that is contraband, which clearly constitutes waste or trash as defined by this Code, or that is left unattended for more than one hour on public property, may be disposed of without any notice.

B. No Notice for Evidence in Criminal Case. Unlawfully stored personal property that constitutes evidence in a criminal investigation may be impounded without notice.

C. Attended Property Notice. The custodian of attended personal property being unlawfully stored on public property shall be given one hour notice to remove the violating personal property. Any 271
personal property left on public property after that one-hour notice has expired shall be deemed abandoned.

D. Notice Upon Impoundment. The City may impound any personal property unlawfully stored on public property. Except as exempted in Subdivisions A, B, and C, the city shall provide a written notice in a conspicuous place at or near where the personal property was located, advising where the personal property is being kept and when and where it may be claimed by the owner.

E. Signs. The City may erect signs in commonly affected areas to provide the notices required by this Section.

Sec. 16-158. - Failure to remove attended personal property.

It is unlawful and a public nuisance to fail to remove attended personal property within one hour of receiving notice requiring removal. Moving personal property to another location where storage is prohibited by this Chapter shall not constitute compliance with removal.

Sec. 16-159. - Holding of personal property; repossession by owner.

A. Personal property coming into possession of the City pursuant to this Chapter shall be deposited in a safe place for a period of at least sixty days. In the event such personal property is not claimed within those sixty days, it shall be deemed abandoned personal property and shall be subject to disposition as provided in this Chapter or as otherwise permitted by law.

B. The owner of the personal property may repossess the personal property upon submitting satisfactory proof of ownership during the sixty-day holding period. A person may establish ownership by, among other methods, describing the location where the personal property was found and providing a specific and detailed description of the personal property. If ownership cannot be determined to the satisfaction of the Chief of Police or designee, he or she may refuse to return the personal property until ordered to do so by a court of competent jurisdiction; however, the City shall continue to hold the personal property until such a determination is made if the City is given notice of the court action within the sixty-day holding period.

C. If ownership is determined, the owner shall be required to pay the reasonable costs incurred by the city in impoundment and storage prior to the return of the personal property, unless a financial hardship waiver is submitted to the city by the owner on forms authorized by the city and such waiver is approved by the chief of police or designee.

Sec. 16-160. - Evidence in a criminal case.

Notwithstanding Section 16-159, where personal property is impounded for use as evidence in a criminal case, such property shall be held until the final disposition of any pending charges, including appeals, or the lapse of time for filing an appeal, unless a court orders otherwise, in accordance with California Penal Code section 1417 et seq.

Sec. 16-161. - Disposition after holding period.

Upon the expiration of any holding period for received personal property pursuant to Sections 16-159 or 16-160, any remaining personal property not claimed by or returned to the owner may be appropriated to the City upon order of the city manager or designee that the personal property is needed for a public use. Any personal property not appropriated to the City may be sold at a public auction or disposed of in 272
such a manner as deemed appropriate by the city manager or designee. If personal property constitutes money, such money shall be deposited into the City's general fund.

Sec. 16-162. - Use of vehicle for human habitation.

It is unlawful for any person to use any motor vehicle or recreational vehicle, as defined by Section 30-12 of this Code, for human habitation on or in any public or private street, alley, parking lot, or any public or privately owned property which is held open for public use. For purposes of this Section, evidence of "human habitation" shall include but not be limited to, observations that the vehicle is being used for living, sleeping, cooking, or bathing purposes. Sleeping in or occupying a parked vehicle for longer than thirty minutes, consecutively or in the aggregate, between the hours of 11:00 p.m. and 5:00 a.m. shall constitute prima facie evidence the vehicle is being used for human habitation.

Sec. 16-163. - Urination or defecation in public view.

It shall be unlawful for any person to urinate or defecate or dump any fecal matter on public or private property in an area exposed to the public view or on any public right-of-way, street, sidewalk, alley, park, or any other space except in a restroom or other facility designed for such purpose.

Sec. 16-164. - Enforcement.

A. Any violation of this Chapter is hereby declared to be unlawful, a public nuisance, and a misdemeanor punishable by a fine of up to $1,000 and imprisonment up to six months.

B. Each person shall be deemed guilty of a separate offense for each and every day, or portion thereof, during which any violation of or failure to comply with any of the provisions of this Chapter is committed, maintained, continued, or permitted by such person, and each instance shall be deemed punishable.

C. The provisions of this Chapter shall not be construed as permitting conduct not proscribed herein and shall not affect the enforceability of any other applicable provisions of law.

D. The City may enforce any violation of this Chapter by any and all means available by law, including, but not limited to, a restraining order, preliminary or permanent injunction, and criminal or administrative enforcement.

E. These remedies are intended to be cumulative and may be used in conjunction with or in lieu of each other remedy.

F. Violations of this Chapter involving a person who willfully resists, delays, or obstructs an authorized City agent from enforcing any provision of this Chapter shall be in violation of this Chapter and subject to arrest and the penalties set forth in this Section.

G. If a person in control of a vehicle is arrested pursuant to this Chapter resulting in that vehicle being left unattended, then that vehicle may be removed by the City in accordance with applicable State laws such as Vehicle Code sections 22650 through 22711. 273

NOTICE CONCERNING PERSONAL PROPERTY
1 HOUR NOTICE
Please be advised that pursuant to Fontana Municipal Code (“FMC”) Chapter 16 Section 16- 155 Storage of personal property is prohibited at this location. You are hereby put on notice that you may not leave your personal belongings on any public property, or on private property without the express permission of the property owner.

Pursuant to FMC Section 16-157, any personal property that is not removed from this location by the date and time listed below will be subject to impoundment and/or disposal by the City. Information will be provided advising how the property may be claimed.

Items that are not removed and determined to be waste and/or a hazard will be discarded. Hazardous items or waste may include, but is not limited to: building materials (e.g. wood, scrap metal, etc.); unreasonably large or bulky items, flammable items (e.g. lighters, butane, etc.); consumables; toxic items; wet items; soiled items (e.g. feces, urine, etc.); moldy items; recyclable waste; items with a foul odor; items that can be used as bedding material; items that could be infested with insects; items belonging to someone suspected of having contagious skin disease; and/or other property which the City reasonably believes presents a health and safety danger to City employees and/or the public.

You are notified that failure to remove your property by the date and time listed may result in your arrest and criminal prosecution.

Fontana Municipal Code
Sec. 16-155. - Storage of personal property.

It is unlawful and a public nuisance for any person to store personal property in any of the following areas, except as otherwise approved by the city manager, or designee, or as permitted by this Code or State law:
• Any public or private street or right-of-way, including sidewalks, bus stops, and public landscaping; or • Any parking lot, yard, building setback, vacant land, open space, park, or any other area open to, accessible to, or controlled by the public, improved or unimproved.

Sec. 16-158. - Failure to remove attended personal property.

It is unlawful and a public nuisance to fail to remove attended personal property within one hour of receiving written notice requiring removal. Moving personal property to another location where storage is prohibited by this chapter shall not constitute compliance with removal.

Location:________________________________________________________________________________

_________________ _________________ __________________ _________________ Date Issued Time Issued Officer Name/ID # Event #

________________________________________________________________________________________ _________ Names/DOB at location (if applicable)
If you have questions, please call the Fontana Police Department at 909-350-7740

REMOVE ALL PROPERTY YOU WISH TO KEEP
Date:____________________________ Time:______________________________ 274
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0158 Agenda Date: 4/22/2025
Agenda #: B. Category: New Business
FROM:

Finance
SUBJECT:

Annual Comprehensive Financial Report for Fiscal Year Ended June 30, 2024.

RECOMMENDATION:

Receive and File the City of Fontana’sAnnual Comprehensive Financial Report (ACFR) for Fiscal Year ended June 30, 2024.

COUNCIL GOALS:
· Practice sound fiscal management by producing timely and accurate financial information.

DISCUSSION:

The City of Fontana is required by Fontana Municipal Code Section 10-8 to have the City’sannual financial records audited by an independent audit firm. Section 10-8 states, “The books, accounts, and funds of the City Finance Department, City Treasurer and all special agencies shall be audited by a registered and licensed public accountant at least once a year…” Accordingly, this year’saudit for the City was completed by the accounting firm Eide Bailly LLP.

The primary objectives of a financial audit are: (1) to express an opinion on the fairness of the financial statements in conformity with generally accepted accounting principles; and (2) to determine whether the City has complied with applicable legal requirements in obtaining and expending public funds.

The audit for Fiscal Year 2023-24 was performed in accordance with generally accepted auditing standards. These standards are required to obtain reasonable assurances that the general-purpose financial statements are free from material misstatements.

Eide Bailly LLP has issued an unmodified ("clean") opinion, the highest opinion given for financial statements, to the City for the fiscal year ended June 30, 2024. This opinion states that the general- purpose financial statements present fairly, in all material respects, the financial position of the City of Fontana, as of June 30, 2024, and the results of the City’soperations are in conformity with generally accepted accounting principles.

FISCAL IMPACT:

None.

MOTION:

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File #: 25-0158 Agenda Date: 4/22/2025
Agenda #: B. Category: New Business
Approve staff recommendation.

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ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
City of Fontana
California
Acquanetta Warren, Mayor
Peter Garcia, Mayor Pro Tem
Phillip W. Cothran, Council Member
John B. Roberts, Council Member
Jesus “Jesse” Sandoval, Council Member
Matthew C. Ballantyne, City Manager

PREPARED BY THE CITY OF FONTANA FINANCE DEPARTMENT
Jessica Brown, Chief Financial Officer
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City of Fontana, California
Table of Contents
June 30, 2024

Introductory Section
Letter of Transmittal ................................................................................................................................................ i GFOA Certificate of Achievement for Excellence in Financial Reporting .............................................................. ix List of Principal Officials.......................................................................................................................................... x Organizational Chart .............................................................................................................................................. xi Financial Section
Independent Auditor’s Report .................................................................................................................................. 1 Management’s Discussion and Analysis .................................................................................................................... 5 Government Wide Financial Statements
Statement of Net Position ................................................................................................................................... 19 Statement of Activities ........................................................................................................................................ 20 Government Fund Financial Statements
Balance Sheet ...................................................................................................................................................... 22 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ....................... 24 Statement of Revenues, Expenditures, and Changes in Fund Balances .............................................................. 25 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ........................................................................................... 27 Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual:

General Fund .............................................................................................................................................. 28 Fire Protection District ............................................................................................................................... 29 Housing Authority Low/Mod Housing Fund ............................................................................................... 30 Economic Stimulus ..................................................................................................................................... 31 Grants Fund ................................................................................................................................................ 32 Traffic Congestion Relief ............................................................................................................................ 33 Proprietary Fund Financial Statements
Statement of Net Position ................................................................................................................................... 34 Statement of Revenues, Expenses and Changes in Fund Net Position ............................................................... 35 Statement of Cash Flows ..................................................................................................................................... 36 Fiduciary Fund Financial Statements
Statement of Fiduciary Net Position ................................................................................................................... 37 Statement of Changes in Fiduciary Net Position ................................................................................................. 38 Notes Financial Statements ..................................................................................................................................... 39 Required Supplementary Information
Schedule of Changes in Net Position Liability and Related Ratios During the Measurement Period – Safety Plan ........................................................................................................................................................... 97 Schedule of Changes in Net Position Liability and Related Ratios During the Measurement Period – Miscellaneous Plan .............................................................................................................................................. 98 Schedule of Plan Contributions – Safety Plan .................................................................................. ................... 99
Schedule of Plan Contributions – Miscellaneous Plan ...................................................................................... 100 Schedule of Changes in Net OPEB Liability and Related Ratios ......................................................................... 101 Other Post Employment Benefit Plan Schedule of Investment Returns ........................................................... 102 281
City of Fontana, California
Table of Contents
June 30, 2024
Supplem
entary Information
Non-Major Governmental Funds
Combining Balance Sheet .................................................................................................................................. 107 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .......................................... 119 Governmental Funds
Budgetary Comparison Schedules ..................................................................................................................... 131 Enterprise Funds
Combining Statement of Proprietary Net Position ........................................................................................... 154 Combining Statement of Changes in Proprietary Net Position ......................................................................... 155 Combining Statement of Cash Flows in Proprietary Net Position ..................................................................... 156 Custodial Funds
Combining Statement of Fiduciary Net Position ............................................................................................... 159 Combining Statement of Changes in Fiduciary Net Position ............................................................................. 161 Statistical Section
Net Position by Component .............................................................................................................................. 166 Changes in Net Position ..................................................................................................................................... 167 Fund Balances – Governmental Funds .............................................................................................................. 169 Changes in Fund Balances of Governmental Funds .......................................................................................... 170 Assessed Value and Estimated Actual Value of Taxable Property .................................................................... 172 Direct and Overlapping Property Tax Rates ...................................................................................................... 173 Principal Property Taxpayers ............................................................................................................................. 174 Property Tax Levies and Collections .................................................................................................................. 175 Ratio of Outstanding Debt by Type ................................................................................................................... 176 Ratio of General Bonded Debt Outstanding ...................................................................................................... 177 Direct and Overlapping Bonded Debt ............................................................................................................... 178 Legal Debt Margin Information ......................................................................................................................... 179 Demographic and Economic Statistics .............................................................................................................. 180 Principal Employers ........................................................................................................................................... 181 Full-Time City Government Employees by Function ......................................................................................... 182 Operating Indicators by Function/Program ...................................................................................................... 183 Capital Asset Statistics by Function/Program .................................................................................................... 184 Miscellaneous Statistical Information ............................................................................................................... 185 282
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March 3
1, 2025
The Honorable Mayor, Members of the City Council and Citizens of the City of Fontana State law requires that all general-purpose local governments publish a complete set of financial statements presented in conformity wi th generally accepted accounting principles (GAAP) and audited in accordan ce with generally accepted au diting standards by a firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue the annual comprehensive annual financial report of the City of Fontana for the fiscal year ended June 30, 2024.

This report consists of management’s representations concerning the finances of the City of Fontana. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Fontana has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse, and to compile sufficient reliable information for the preparation of the City of Font ana’s financial statements in conformity with GAAP. Because the cost of internal controls should not ou tweigh their benefits, the City of Fontana’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement.

As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

The City of Fontana’s financial statements have been audited by Eide Bailly LLP, a firm of licensed certified public accountants. The go al of the independent audit was to provide reasonable assurance that the financial statements of the City of Fontana for the fiscal year ended June 30, 2024, are free of material mi sstatement. The indepe ndent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principl es used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Fontana’s financial statements for the fiscal year ended June 30, 2024, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report.

City of Fontana

C A L I F O R N I A
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The independent audit of the financial statements of the City of Fontana was part of a broader, federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements requ ire the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requir ements involving the administration of federal awards. These reports are available in the City of Fontana’s separately issued Single Audit Report.

GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City of Fontana’s MD&A can be found immediately following the report of the independent auditors.

Profile of the Government

The City of Fontana is located about 50 mile s east of Los Angeles. The City spans approximately 42.4 square miles and has an estimated population of 215,465. The City was first developed as an organized rural community through the vision of Mr. A. B. Miller.

Although self-sufficient, the farming community was abruptly reshaped to accommodate the industrial revolution in 1942 with the transformation of Mr. Miller ’s farm into a steel mill by Henry J. Kaiser. The area became Southern California’s leading producer of steel and steel- related products. The steel industry dominated the City’s economy until 1984 when the steel mill closed. Today, Fontana has emerged as an affordable suburb, attracting both residents and businesses.

The City was incorporated on June 25, 1952, un der the laws of the State of California and enjoys all the rights and privileges applicable to a general law city. The City is governed by a five member City Council under the Council-Manager form of government. Policy-making and legislative authority are vested in a governing council consisting of the mayor and four other members. The council is elected on a non-partisan basis. Council members serve four- year staggered terms, with two council members elected every two years. The mayor is elected to serve a four-year term. The mayor is elected at large and the four council members are elected by district. The governing council is responsible for, among other things, passing ordinances, adopting the budget, appointing committees, and hiring both the City Manager and City Attorney. The City Manager is responsible for carrying out the policies and ordinances of the governing council, for overseeing the day-to-day operations of the government, and for appointing the heads of the various departments.

The City of Fontana employs approximately 650 full-time empl oyees. Services provided include police protection; cont ract for fire services; the construction and maintenance of highways, streets, and other infrastructure ; wastewater and sanitation services; and recreational activities and cultural events. In addition to general government activities, the City Council also serves as the Board of Directors of the Fontana Industrial Development Authority, the Fontana Public Financing Authority, the Fontana Public Facilities Financing Authority, the Fontana Housing Authority, the Fontana Community Foundation, the Fontana Fire Protection District as well as th e Successor Agency for the Former Fontana Redevelopment Agency. Therefore, these activities have been included as an integral part of the City of Fontana’s financial statements. Additional information on these entities can be found in Note 1 in the notes to the financial statements.

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The annual budget serves as the foundation for the City of Fontana’s financial planning and control. Each year the City Council reviews budget development guidelines for use in preparing the next year’s budget. These guidelines are structured to reflect the City Council’s goals and objectives and to provide the framework in which the Operating Budget is prepared.

The Finance Department is responsible for compiling the estimated revenues and appropriations for the City Manager. Prior to the beginning of the new fiscal year, the City Council adopts the annual Operating Budget at a public meeting.

The City’s budget policy is that all appropriations lapse at fiscal year-end. Outstanding encumbrance balances at fiscal year-end require re-approval by the City Council at the First Quarterly Budget Review. The City Council ma y amend the budget at any time during the fiscal year. Budget reports are presented to th e City Council and the public on a quarterly basis. They include appropriation adjustment s and revised revenue pr ojections as needed.

The legal level of budgetary control is set at the department level. Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriate annual budget has been adopted.

Factors Affecting Financial Condition

The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of Fontana operates.

Local economy. The Inland Empire’s economy continues to exhibit a complex mix of resilience and emerging challenges. Key economic indicators point to stable employment levels despite national uncertainty, the housing market stabilizing alongside steady new home construction, moderate consumer spending, and a recovering retail sector led by grocery and discount stores, though challenges like high mortgage rates and housing affordability persist.

These trends suggest a cautiously optimistic outlook.

Balanced Growth. Fontana’s labor market has sh own steady improvement, with unemployment holding relatively low despite br oader economic pressures. After a modest increase from 4.2% in February 2023 to ap proximately 4.5% by June 2024, employment levels remain stable and reflect the Inland Empire’s broader trend of balanced economic growth. The region continues to expand gradually, supported by key sectors like logistics, healthcare, and local government, with no indi cators pointing to a significant economic slowdown.

Retail Sales Are Decreasing. Taxable sales remain a vital revenue source for the City of Fontana. While the City experienced a 4% year-over-year increase in sales tax revenue from June 2022 to June 2023, FY 2023-24 saw a 5.4% decline in taxable sales compared to the prior year. This shift reflects a normalization of consumer spending following post-pandemic surges, rather than a sign of economic weak ness. This moderation is part of a broader economic balancing, not a downturn, as the Inland Empire continues to show underlying strength and stability in its core economic sectors.

The City has offered tax abatement programs to businesses as an incentive, which in return promotes economic growth, attracts investment, and fosters job creation. By reducing certain tax obligations, these programs encourage businesses to expand, relocate, or reinvest in our community, and ultimately strengthening local economy in the long-term.

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Housing Market Stable Prices, Steady Demand. The Inland Empire’s housing market remains steady, with limited inventory and persistent demand contributing to modest price growth across the region. In San Bernar dino County, home prices rose by 1% from June 2022 to June 2023, reflecting the market’s stability rather than volatility. Affordability continues to be a key strength in the Inland Empire, particular ly compared to coastal Southern California, where only 24–27% of households can afford a median-priced home—driving migration inland where 43–54% of buyers can still purchase homes at attainable prices.

In the City of Fontana, the housing market showed consistent growth in FY 2023-24, with median prices for existing homes rising 2.52% to an average of $630,658. Fontana maintains a competitive advantage as the westernmost Inland Empire city with land available for both residential and industrial development. This strategic positioning, along with more accessible housing and labor costs, continues to attract both residents and businesses. Over the past three years, Fontana has maintained a strong pace of new housing, a trend expected to continue over the next decade due to on going land availability and redevelopment opportunities. These conditions point to a we ll-balanced and resilient housing market with long-term growth potential.

The center of San Bernardino
County’s growth is moving west
into Fontana. The population has
grown 5.5 percent over the past
ten years and, at 215,465 Fontana
is the second largest city in San
Bernardino County, the third
largest in the Inland Empire, and
twentieth in the State.

With the ever-increasing demand
for housing and ongoing addition of
new residential units in the City, it
is expected that the City’s
population will exceed 280,900 by the year 2040.

The City of Fontana continued to see a number of significant events during the past year.

Significant Events of FY 2023-24
■ Downtown Parking Structure: The City will construct a parking structure within the existing parking lot of the City’s Human Resources Department Building located at 8491 Sierra Avenue, Fontana, CA 92335 which shall consist of a 4-tier parking structure allowing for approximately 320 parking spaces and two elevators. The project will also include various onsite and offsite improvements to include driveway approaches, RV parking and pull through area, landscaping, and other improvements. The intent of the structure is to serve as both public and employee parking fo r the civic campus as well as the planned downtown area which is to be revitalized. The estimated completion date is March 2025.

■ Energy Services Project (Parks): The city completed the energy services project a $3.6 million in FY 2023 that included upgrading and replacing lighting at 30 different parks with new Light Emitting Diode (LED) fixtures.

0%
1%
2%
3%
4%
5%
70,000
100,000
130,000
160,000
190,000
220,000
2015201620172018201920202021202220232024

GROWTH RATE

POPULATION
Population Growth
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■ 9/11 M
emorial Monument: City Council identified funds for the 9/11 memorial monument
project. The actual steel beam recovered from the World Trade Center site will be used as a main piece of the monument. The 18’ long beam will be resurrected to its upright position as it once stood at the Wo rld Trade Center. The upright position of the beam speaks to resilience, perseverance, and strength against tragedy. The concep tual desig
n has been approved and the detailed design is currently underway. The projec t desig
n has been completed. Construction is projected to begin in FY 2024-2025. ■ Fire St
ation #81:

As part of the Fire Master
Plan and
in an effort to meet
a less than five-minute
response time within the
Distri
ct 90% of the time,
Fire S
tation #81 is
completed at the northern
end of the City limits.

Construction began in
March 2022 and is
completed in FY2023/24.
■ American Rescue Plan Act (ARPA) Grant: To aid the
country in the recovery from the
gover
nment imposed COVID-19 lockdown, th e U.S. Treasury issued the $350 billio n American R
escue Plan Act (ARPA). The City of Fontana was allocated $50.3 million which incl
udes various spending categories such as: support public health expenditures; address negative economic impacts; serve the hardest-hit communities and families; replace lost public sector revenue; provide premium pay fo r essential workers; and invest in water, sewer, and broadband infrastructure. The Ci ty Council has approved various eligible projects within these categories.
■ Pavement
Rehabilitation Program: Based on the new Citywide 7-Year Pavement Management Plan, several pavement projects are expected to be completed in 2024/25 using various funds, including Road Maintenance and Rehabilitation Act (RMRA) funding. ■ City Hall Renovation Project - Phase I (Fire Annex): The City will demolish the existing Fir
e administration Building located at 17001 Upland Avenue, Fontana, CA 92335 and shall construct a two-story municipal buil ding with first tier parking structure and second ti
er office spaces. Each tier will ha ve a footprint of approximately 30,000 square fee
t with one vehicle entrance and exit located on Upland Ave. just west of Wheeler Ave.

The City anticipates 65 parking spaces to be within the parking structure portion of the building. The intent of the building is to serve as office space for city staff as well as both publi
c and employee parking for the civic campus. The estimated completion date is July 2025.
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Financial Challenges Ahead
The following is a summary of challenges that the City may face over the next few years.  Inflation. After decades of relatively low inflation, the prices of many goods and services experienced rapid increases beginning in 202 1. The Riverside-San Bernardino-Ontario Metropolitan Statistical Area (MSA) Consumer Price Index for All Urban Consumers (CPI- U) saw decreases of 7.3% and 2.9% in 2023 and 2024 respectively. Although opinio ns diff
er with respect to the forecasted inflation, the consensus is a general cooling of inflation over the next year.
 State Budget. The Governor has released proposed 2025/26 budget projecting a small surplus of $
363 million after two years of deficits. The administration anticipates moderate e
conomic growth but warns that federal policies on tariffs, international trade, and budget cut could
threaten the st ate economy. California’s recovery in total jobs as well as its unemployment rate continue to lag the nati on. According to the U.S. Bureau of Labor Statistics and the California Employment Development Department, as of June 2024 the golden s
tate has an unemployment rate of 5.3% or 1.04 million people. California is listed in t
he top 10% of highest unemployment in the country. The state is facing a labo r sho
rtage as employers struggle to hire qualified candidates.  California Public Employees Retirement System (CalPERS). At the July 2021 board meeting, CalPERS further reduced the discount rate assumption from 7.15% to 6.9% due to th
e Funding Risk Mitigation Policy, requiring the reduction of the discount rate in years of high investment returns. CalPERS also adopted new actuarial a ssumptions which incl
uded longer life expectancies and earlier retirement ages. the City’s PERS Rate Stability Reserve has a balance of $12.2 million.
 Hou
sing Market & Interest Rates. Housing prices increased dramatically at th e beginning
of the pandemic by 41% from Fe bruary 2020 to April 2022. However, higher prices coupled with higher mortgage rates caused the demand for home purchases to dramaticall
y decrease to nearly 40% below pre-pandemic levels while house prices remain 27% above their pre-pandemic levels. These factors all contribute to a forecasted decrease in home prices through 2023.
 Un
funded Liability. The City’s CalPERS net pension and OPEB liabilities are $210.4 million and $21.3 million, resp ectively, as of June 30, 2024. The Annual re quired contrib
ution to fund the City’s retiree health program for both current and future retiree has
been calculated to be $2.6 million (excludes implicit subsidy amount). The retir ee health prog
ram has been closed to new hires since 1990.
 Prop
erty Value Reassessments. The annual Consumer Price Index (CPI) adjustment which provides the basis for changes in asse ssed valuations state-wide continues at th e 2%
level, although properties that have enjoyed Prop 8 valuation reductions are not subject to this limit.
 Capital Reinvestment Program. Since 1996/1997, the City Council has been investing a portion of the annual General Fund Budget back into the community in the form of capital projects including streets and sidewalks, with a goal of 10%. Amounts allocated in the FY 2023/24 and 2024/25 Operating Budgets from variou s funds to this critical area total of $13.8 million and $11.8 million, resp
ectively.
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 Proposition 218. On November 5, 1996, the California electorate approved Proposition 218 affecting a change to the California State Constitution by making numerous changes to local
government finance law. This measure impacts the generation and use of many fundamental revenue sources including fees , charges, assessments, and taxes. This proposition also changes the methods by which certain assessments and taxes ar e challenged
by the electorate. Both the FY 2023/24 and the FY 2024/25 Operating Budget fully comp
ly with the provisions of Proposition 218.
 Services
and Growth. The City of Fontana has experienced significant growth over the past s
everal years. With this growth comes the need to service a growing community.

The funding sources for these additional services are revenue growth and the Muni cipal Se
rvices Fiscal Impact Fee Program (MSFIF). In addition, the City is anticipating growth following the successful passage of Measure T, a ballot approved by voters to increase the local sales tax by once-cent or 1
%. This measure, which takes effect on April 1, 2025, is exp
ected to generate an additional $40 million in annual sales tax revenue.

Financial Information. Management of the City is responsible for establishing and maintaining internal control designed to ensure that the assets of the government are protected from loss, theft, or misuse, and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with U.S. generally accepted accounting principles. Internal control is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurances recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management.

This report consists of management’s representations concerning the finances of the City. As a result, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. Management asserts that, to the best of their knowledge and belief, this financial report is complete and reliable in all material respects.

Budgetary controls. The City maintains budgetary controls, the objective of which is to ensure compliance with legal provisions em bodied in the annual appropriated budget approved by the City Council. Activities of the General Fund, special revenue funds, debt service funds, capital project funds, and all the proprietary funds are included in the annual appropriated budget. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the department level. The City also maintains an encumbrance accountin g system as one technique of accomplishing budgetary control. Encumbrances generally are re-appropriated as part of the following year’s budget.

Regarding long-term financial planning, the City Council adopted the City’s biennial budget for fiscal years 2023-2024 and 2024-2025. Additi onally, as a companion to approving the budget plan, a seven-year Capital Improvement Plan was presented to the City Council. The seven-year plan links anticipated expenditures for infrastructure development with community needs and desires and provides a citywide perspective of recommended projects and proposed funding sources. The Capital Improvement Plan was finalized in June 2021 and totaled $806.8 million for the seven-year fiscal period ending June 30, 2028. The seven-year Capital Improvement Plan has been submitted and annually updated, in its present form, since 1991, for effective long-range planning purp oses. It is City Management’s belief that these two plans give City Council members an expanded opportunity to set policy and provide direction for implementation, resulting in im proved management efficiency and improved financial results.
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endent Auditor’s Report
To the Members of the City Council
City of Fontana, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Fontana, California (the City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Fontana, as of June 30, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund, Fire Protection District Fund, Housing Authority Fund, Economic Stimulus Fund, Grants Fund and the Traffic Congestion Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Correction of Errors
As discussed in Note 19 to the financial statements, certain errors resulting in a misstatement of amounts previously reported as of June 30, 2023, were discovered by management of the City during the current year. Accordingly, a restatement has been made to the Governmental Activities net position, Housing Authority fund balance, Home Program fund balance, and the Other Postemployment Benefit Trust Fund net position as of July 1, 2023, to correct the errors. Our opinions are not modified with respect to that matter.
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2 Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we

 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

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3 Required Supplementary Information
Accoun
ting principles generally accepted in the United States of America require that the management’s discussion and analysis, schedule of changes in net position liability and related ratios during the measurement period for the safety and miscellaneous plan, schedule of plan contributions for the safety and miscellaneous plan, schedule of changes in net OPEB liability and related ratios, and other post- employment benefit plan schedule of investment return, be presented to supplement the basic financial statements. Such information is the responsibility of management and although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining non-major governmental funds financial statements and budgetary schedules, the combining proprietary fund financial statements, and the combining fiduciary fund financial statements, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the supplementary information identified above is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 297
4 Other
Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 31, 2025, on our consideration of the City‘s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters.

The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Rancho Cucamonga, California
March 31, 2025
298
5 MANAGEMENT’S DISCUSSION AND ANALYSIS
This narrative overview and analysis of the City of Font ana’s financial activities for the fiscal year ended June 30, 2024 is presented by the management of the City of Font ana to readers of the City’s financial statements.

Management encourages readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the introductory section of this report and the City’s basic financial statements in the financial section of this report.

FINANCIAL HIGHLIGHTS
 The City’s governmental and business-type activities resulted in total assets and deferred outflows of resou
rces exceeding its liabilities and deferred inflows of resources by $1,248.1 million as of June 30, 2024 (“current fiscal year”). Of this amount, $270.3 million represents the portion for restricted uses as specified by entities outside of the City gov ernment, the amount for unrestricted uses in accordance with finance- related legal requirements as reflected in the City’s fund structure is in a positive position at $176.7 million, and $801.1 million accounts for investments in capital assets in excess of related debt. 
The City’s total net position increased $86.7 million during the current fiscal year. The increase is primarily due to the
$12.1 million increase in property taxes, $3.6 million increase in business license taxes, and $16.7 million increase in operation contributions and grants. 
As of the fiscal year end, the City’s Government al Funds ending fund balances were $593.5 million, an increa
se of approximately $18.3 million or 3.19% from the prior fiscal year. Of this balance, $35.7 million is in nonspend
able, $283.8 million restricted for use set by various legal requirements, $47. 2 million is committed fo
r economic uncertainty and $226.8 mill ion is either assigned or unassigned base d on the nature of the
funding source.

The General Fund’s fund balance at the close of the current fiscal year was $104.0 million, a decrease of approximately $13.2 million or 11.3% from the previous year. The General Fund’s fund balance consists of $23.1 milli
on in nonspendable and $1.8 million in restricted fund balance, $47.2 million in committed for the purp
oses of Economic uncertainty, and $31.9 million in assigned and unassigned fund balances. See note 15 for further discussion.

The City’s business-type activities yielded operating revenues of $28.9 million, while operating expenses amounted to of $27.1 million.

General Fund revenues were $4.9 million more than the final budget, and expenditures were $16.1 million less than the final budget.
 During the current fiscal year, the City determined t hat reported amounts in the prior fiscal year financial statements were not accurate, resulting in a restatem ent of the beginning net position and fund balan ce.

The restate
ment was due to several factors which incl uded additional insight on the City’s reporting of it’s OPEB plan and staff turnover. For additional informat ion, see Note 19 of the Notes to the Financial Statements section of Annual Comprehensive Financial Report. 299
6 OVERVIEW OF THE BASIC FINANCIAL STATEMENTS
Management’s Discussion and Analysis is intended to se rve a s an introduction to the City’s basic financial statements. The City’s basic financial statements include three components: government-wide financial statements; fund financial statements; and notes to the basic financial statements.

Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business.

The statement of net position presents information on all of the City’s assets plus deferred outflow of resources and liabilities plus deferred inflows of resources, with the differ ence between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

The statement of activities presents information showing how the gov ernment’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).

Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues ( governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public works, community development, community services and engineering. The business-type activities of the City include sewer, water operations, and other enterprise activity.

Component units are included in the basic financial statements and consist of legally separate entities for which the City is financially accountable and that have the same governing board as the City. The blended component units include the Successor Agency of t he Former Fontana Redevelopment Agen cy, the Fontana Public Financing Authority, the Fontana Public Facilities Financing Authority, the Fontana Housing Authority, the Fontana Industrial Development Authority, the Fontana Community Foundation and the Fontana Fire Protection District. The 300

7 redevelopment agency was dissolved as of January 31, 2012 through the California Supreme Court decision on Assembly Bill 1X26. See Note 17 of the notes to the financial statements for more information on the dissolution.

The government-wide financial statements can be found on pages 19-21 of this report.

Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activiti es or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

All the funds of the City can be divided into three categorie s: governmental funds, proprietary funds and fiduciary funds.

Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statement s. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the City’s near-term financing requirements.

Because the focus of governmental funds is narrower than t hat of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balance provide a reconciliation to the government-wide financial statements in order to facilitate this comparison between governmental funds and governmental activities.

The City maintains 55 individual governmental funds for financial reporting purposes. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balance for the General Fund, the Fire Protection District Special Revenue Fund, the Housing Authority Special Revenue Fund, the Econom ic Stimulus Special Revenue Fund, the Grants Special Revenue Fund, the Traffic Congestion Relief Special Revenue Fund, the Sewer Expansion Capital Projects Fund, the Community Facility Districts Capital Projects Fund, and the Traffic Mitigation Capital Project Fund, which are considered to be major funds. Data for the other 46 governmental funds are combined in a single, aggregated presentation. Individual fund data for each of these non- major governmental funds is provided in the non-major funds supplementary section of this report.

The City adopts an annual appropriated budget for its general fund, special revenue funds, debt service funds, and capital project funds. A budgetary comparison statem ent has been provided for the General Fund, the Fire Protection District Special Revenue Fund, the Housi ng Authority Low/Mod Housing Special Revenue Fund, the Economic Stimulus Special Revenue Fund, Grants Spec ial Revenue Fund, and the Traffic Congestion Relief Special Revenue Fund in the basic financial statements and for the remaining special revenue funds, the debt service funds, and the capital project funds in the supplementary information.

The governmental fund financial statements can be found on pages 22-26 of this report.

301
8 Proprietary funds. The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its Sewer, Water, and Theater Operations. Internal Service Funds are an accounting device used to accumulate and allocate costs in ternally among the City’s various functions. The City uses an internal service fund to account for its fleet of vehicles; because this service predominantly benefits governmental rather than business-type f unctions, it has been included with governmental activities in the government-wide financial statements.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements can be found on pages 34-36 of this report.

Fiduciary funds. Fiduciary funds are used to account for resour ces held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs . The accounting used for fiduciary funds is much like that used for proprietary funds.

The basic fiduciary fund financial statements can be found on page 37-38 of this report.

Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 39-96 of this report.

Government-wide Financial Analysis
Invested in capital
assets, net of related
debt 64%
Restricted:

Community
development 10%
Restricted: Public
safety 4%
Restricted: Public
works 3%
Pension Trust 1%
Restricted: Capital
projects 5%
Unrestricted 13%
Net Position by Type
302

9 As noted earlier, net position may serve over time as a usef ul indicator of a government’s financial position. The City’s net position is comprised of Net Investment in Capital Assets, Restricted Net Position, and Unrestricted Net Position. As of June 30, 2024, assets exceeded liabilities by $1,248.1 million.

The City’s net investment in capital assets (land, bu ildings, infrastructure, machinery, equipment, and vehicles), less any related debt used to acquire those assets that is still outstanding, is $801.1 million. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending.

Although the City’s investment in its capital assets is reported net of related deb t, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liab ilities. An additional portion of the City’s net position ($270.3 million) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position $176.7 million may be used to meet the government’s ongoing obligations to citizens and creditors, unrestricted net position is in a positive position at the end of the fiscal year.

Net Position
(000 omitted)

303
10 Changes in Net Position
(000 omitted)
2024 2023 2024 2023 2024 2023
(as restated) (as restated)
Revenues:

Program Revenues:

Charges for services 74,877$ 73,478$ 29,025$ 27,542$ 103,902$ 101,020$ Operating grants and contributions 67,765 51,038 67,765 51,038 Capital grants and contributions 20,126 22,714 1,415 7,630 21,541 30,344 General Revenues:

Property taxes 107,809 95,731 107,809 95,731 Sales tax 55,887 59,102 55,887 59,102
Franchise taxes 11,208 11,118 11,208 11,118 Business license taxes 11,943 8,396 11,943 8,396 Transient occupancy taxes 1,145 1,303 1,145 1,303 Motor vehicle in lieu 759 301 759 301
Investment earnings 25,833 9,229 1,054 270 26,887 9,499 Other 7,559 4,275 8 118 7,567 4,393 Contributions not restricted to specific programs 6,680 17,104 6,680 17,104 Total revenues 391,591 353,789 31,502 35,560 423,093 389,349 Expenses:

General Government 59,447 32,753 59,447 32,753 Public Safety 129,566 120,025 129,566 120,025 Public Works / Engineering 76,017 75,399 76,017 75,399 Community Development 20,058 24,285 20,058 24,285 Community Services 22,000 10,394 22,000 10,394 Interest on long-term debt 2,132 2,134 2,132 2,134 Sewer and other enterprise funds 27,212 26,360 27,212 26,360 Total expenses 309,220 264,988 27,212 26,360 336,432 291,349 Change in net position before transfers 82,371 88,801 4,290 9,200 86,661 98,000 Transfers 2,383 3,659 (2,383) (3,659) 0-
Change in net position 84,754 92,460 1,907 5,541 86,660 98,001 Net Position - beginning of year as restated 1,080,989 988,529 80,436 74,895 1,161,425 1,063,424 Net Position - end of year 1,165,742$ 1,080,988$ 82,343$ 80,436$ 1,248,085$ 1,161,425$ Governmental Activities Business-Type Activities Total
304
11 Governmental activities
The mo
st significant revenues of the governmental activities are general taxes (48.0%), which include property taxes (27.5%), sales and use taxes (14.3%), and various other taxes (6.2%), and general revenues (10.4%), which include various other revenues (3.9%) and investment earni ngs (6.6%). Program revenues are 41.6% of the total revenues of the governmental activities, which include charges for services (19.1%), operating grants and contributions (17.3%), and capital grants and contributions (5.2%).

Property taxes, 27.5%
Sales taxes, 14.3%Franchise taxes, 2.9%
Business license taxes,

3.0%
Transient Occupancy
Taxes, 0.3%
Investment earnings,

6.6%
Other, 3.9%
Charges for services,

19.1%
Operating
contributions and
grants, 17.3%
Capital contributions
and grants, 5.1%

REVENUES BY SOURCE -

GOVERNMENTAL ACTIVITIES
-
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
Program Revenues 2024 Expenses

EXPENSES AND PROGRAM REVENUES -

GOVERNMENTAL ACTIVITIES
305

12 Public safety (police and fire) is the most significant ( 41.9%) of all governmental acti vities’ expenses, followed by Public works & Engineering (24.5%), General governm ent (19.3%), Community services (7.1%), Community development (6.5%), and interest on long-term debt (0.7%) . Included in these amounts is depreciation expense, which is 13.1% of the total expenses for governmental activities.

Governmental activities revenues incr eased by $37.8 million (10. 7%) in the current fiscal year. The changes in revenues are a result of the following:
 General tax revenues increased by $12.3 million (7.0%) which is primarily due to increase in property tax revenue by $12.1 million as a higher property valuat ion in FY 2024. Additionally, business license tax revenues increased by $3.5 million due to payments received from delinquent business licenses.  General revenues (not including general taxes) increased by $9.9 million in FY 2024. This is primarily due to the $16.6 million increase in our investment earnings as the City purchased more treasury securities at a higher yield interest rate and the Federal Reserve has put a pause on the rising interest. This increase is offset by $6.7 million decrease in donation of Community Facilities District infrastructure by developer.  Charges for services increased by $1.4 million (1.9%) which is in alignment with the city projection.  Operating contributions and grants increased by $16.7 million due to the increase of $3.9 million in Traffic Congestion Relief projects and $9.0 million in grants for Homelessness Prevention program.  Capital contributions and grants decreased by $2.6 million due to the decrease in capital grants received by the city.

Governmental activities expenses increased by $44.2 million (16.7%) in the current fiscal year. The most significant changes in governmental expenses were:

 General Government and Public Safety, which were increased by $36.2 million in total. The increase is mainly due to a reduction in OPEB expense in prior fiscal year, whic h made the current year’s expense appear to be higher by $26 million. Additionally, current year’s expenses include $5.7 million in payments for lawsuit settlements, a one-time payment of $4.7 million to PERS for unfunded liability, and a $4.4 million increase in subscription-based information technology services.

Business-type activities

Business-type activities net position increased by $1.9 million (2.4 percent) Business-type activities revenues for current year is showing a decrease of $4.1 million.  Investment earnings increased by $0.7 million as a result of the Federal Reserve Board pause the rise in interest rate and the City bought some of the treasury securities at a higher interest rate yield.  Charges for services increased by $1.5 million primarily due to an increase in rates charged by other entities such as IEUA and City of Rialto that are collected by the city and passed through to the proper entities.
 Capital contributions decreased by $6.2 million due to the prior year received a one-time donation of the sewer system by the CFD developer.

Total expenses increased by $0.9 million is due to the increase in EDU (Equivalent Dwelling Unit) charge fees compared to prior year.
306

13 Financial Analysis of the City’s Funds

The City of Fontana employs Fund Accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is usef ul in assessing the City’s financing requirements. In particular, assigned and unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

Investment
earnings
3%
Charges for
services
92%
Capital
contributions and
grants
5%

REVENUES BY SOURCE -

BUSINESS-TYPE ACTIVITIES
-
10,000,000
20,000,000
30,000,000
Sewer Other
Program Revenues
Expenses

EXPENSES AND PROGRAM REVENUES -

BUSINESS-TYPE ACTIVITIES
307

14 As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $593.5 million, an increase of $18.5 million (3.2%) from the previous year. Of this total amount, $226.8 million constitutes assigned or unassigned fund balance, which is available for spending at the government’s discretion.

The remainder of fund balance is either nonspendable ( $35.7 million), restricted ($283.8 million) or committed ($47.2 million) and is not available for new spending. The nonspendable fund balance consists of 1) land held for resale of $11.6 million, 2) deposits on account of $0.2 million, 3) inventories held ($1.4 million), and 4) loan receivables ($22.5 million). Restricted fund balance includes amounts t hat are constrained on the use of the resources by outside parties and committed fund balance includes amounts that are constrained on the use of the resources pursuant to City Council formal action. For additional details of the City’s fund balances, please refer to Note 15 in the Notes to the Basic Financial Statements.

The general fund is the chief operating fund of the City. At the end of the current fiscal year, the assigned fund balance of the general fund was $6.4 million, while total fund balance reached $104. 0 million, which was $13.2 million or 11.3% lower than the prior year. The City’s management assigns fund balance to a particular function, project or activity and may also be assigned for purposes beyond the current year. However, assigned fund balance is available for appropriation at any time. The General Fund has committed fund balance of $47.2 million for economic uncertainty.

General fund revenues increased by $6.3 million (4.1%) from the previous fi scal year; this incr ease is primarily due to:
 Property Tax in Lieu of VLF was in creased by $3.2 million due to the increase in assessed valuation and continued growth in the city.
 Investment earnings increased by $2.2 million due to Federal Reserve Board put a pause on the rise of the interest rate and the city was able to purchase treasury securities that has a much higher interest yield resulting an increase in unrealized gain.

General fund expenditures increased by $29.4 million (20.8%) compared to the previous fiscal year, the increased costs were primarily due to:
 The $5.7 million payments for lawsuit settlements, a one-time $4.7 million payment to PERS for unfunded liability, and a $4.4 million increase in subscription-based information technology services.

The Fire Protection District special revenue fund has a fund balance of $26.1 million. The Fire Protection District accounts for all of the operating activities of the Fire District. The fund balance decreased by $0.4 million during the current fiscal year. Revenues increased $8.4 million (13.9%) primarily as a result of a higher property valuation assessment. Expenditures increased $3.4 million (7.9%) prim arily as a result in increa sed contract costs with the San Bernardino County Fire Department for fire protection services due to inflation. Transfers out decreased by $6.8 million during the year primarily due to the increase in prior fiscal year one time transfer for t he fire annex project in the amount of $8 million.

The Housing Authority special revenue fund has a fund balance of $87.3 million. The fund balance increased by $1.4 million during the fiscal year is mainly due to $0.6 million in restatement, and an increase of $0.6 million in investment earnings as the federal reserve put a pause on the interest rate hike and the City was able to purchase treasury securities at much higher interest rate.

The Traffic Congestion Relief fund has a total fund balan ce of $6.7 million. The fund balance decreased by $7.6 million during the current fiscal year due to an increase of $7.6 million ex penditures on str eets and highway maintenance that are pending to be reimbursed by other government. 308

15 The Grants fund has a total deficit fund balance of $7.8 million. The fund balance decreased by $6.7 million during the current fiscal year due to City’s advance of $4.0 million for Homelessness Prevention program and $1.7 million for storm drain and sewer infrastructure at the affordable housing site. These amounts are expected to be reimbursed in fiscal year 2024/25.

The Sewer Expansion Fund has a total fund balance of $1.6 million. The fund balance increased by $1.2 million during the current fiscal year due to an increase in invest ment earnings as the federal reserve put a pause on the interest rate hike and the City was able to purchase treasury securities at much higher interest rate.

The Community Facility Districts Fund has a total fund bal ance of $36.4 million. The fund balance increased by $3.9 million during the current fiscal year mainly due to an increase of $1.6 million in contribution from property owners as a result of higher property valuation assessment.

The Traffic Mitigation capital project fund has a fund bal ance of $23.6 million. The fund balance increased during the current fiscal year by $1.8 million as a result of increased investment earning as the federal reserve put a pause on the interest rate hike and the City was able to purchase treasury securities at much higher interest rate.

Proprietary funds. The City’s proprietary funds provide the same type of information found in the government- wide financial statements, but in more detail. Unrestricted net position of the Sewer Operations, Water Operations, and Theater Operations at the end of the year amounted to $21.1 million. The total increase in net position was $1.8 million, which is in aligned with the City expectations.

General Fund Budgetary Highlights

Over the course of the year, the City Council revised the City’s budget on a quarterly basis. The Council approves supplemental appropriations throughout the year based on individual items that are brought forward by various departments.

Revenues:

During the year, the original General Fund revenue budget was amended to increase revenues by $3.6 million. The increase is primarily due to:
 an increase in business license of $2.1 million, because of payme nts received from delinquent business licenses.
 an increase in Charge for Services of $0.6 million due to increase in recreations revenues for sports field and courts rentals as well as classes registration. Additionally, an increase in recycled water revenue.

General Fund actual revenues of $157.8 million were $4.9 million more than the final budget of $152.9 million. The positive variance to the final budget was primarily due to:
 higher than expected tax revenues ($1.2 million) co mpared to the final budget, which was increased by $2.1 million from the adopted budget as a result of higher business license tax.  higher than expected investment earnings ($3.6 million) compared to the final budget due to Federal Reserve putting a pause on the rising interest rate and the city was able to purchase more treasury securities at a higher interest rate thus resulting a higher investment unrealized gain.  higher than expected licenses and permit ($0.3 million)  higher than expected intergover nmental revenue ($0.2 million)  lower than expected charges for services ($0.8 million)

309
16 Expenditures:

During the year, the original General Fund expenditure budget was amended to increase appropriations by $27.3 million, the increase in appropriations was due to various requests throughout the fiscal year such as:
 increase of $13.0 million for human resources mainly due to $5.7 increase in various settlement cl aims, $4.7 million in
PERS for unfunded liability, and other professional services. 
increase of $4.5 million for inform ation technology department for variou s subscription-based information techn
ology services and increase in other professional services.  increase of $3.6 million for public works/engineering for additional capital acquisition and other professional ser
vices.

General Fund expenditures were less than budgeted. Of the total appropri ations of $187.2 million, approximately

8.6%, or $16.1 million were unspent. The budgetary sa vings included IT department personnel cost, computer hardware cost, application cost, other professional serv ice cost (total $2.3 million) , personnel cost and other professional services cost in the City administration department (total $1.3 million), personnel cost and capital cost in the police department (total $5.4 million), capital cost and other professional services cost in the public works/engineering department (total $1.8 million), personnel cost in the community development (total $2.4 million), and HR admin cost and risk management cost (total $1.8 million). The aforementioned savings will be carried over to next fiscal year.

Capital Asset and Debt Administration
Capital assets. The City’s investment in capital assets for governmental and business-type activities as of June 30, 2024, amounts to $853.1 million (net of accumulated depreciation). This investment in capital assets includes land, buildings and improvements, machinery and equipment, vehicles and infrastructure (roads, highways, sewer and storm drain systems). The total change in the City’s investment in capital assets net of accumulated depreciation for the current fiscal year was an increase of $42.2 million (5.2%). Major capital asset events during the current fiscal year included the following:
 There was an increase in building and improvements activities mainly due to new property acquisition located at 17133 Valley Blvd. ($12.4 million), Fire St ation #81 ($9.0 million), and Stage Red renovation s ($4.2 million).

There was an increase in activities in various CIP projects such as Homelessness prevention resources and care ($14.7 million), downtown parking structure ($5.0 million) and pavement rehabilitation ($5.0 million).
 The City had a onetime purchase of various new lands in the amount of $7.5 million. 
Accumulated depreciation at year-end is $41.0 million higher than prior year. 310

17 Capital Assets
(Net of depreciation)
(000 omitted)

Additional information on the City’s capital assets can be found in Note 6 in the footnote disclosure.

Long-term liabilities. At the end of the current fiscal year, the City’s total long- term liabilities outstanding is $323.6 million. This amount is comprised of $210.4 million net pension liability, $21.3 million other post-employment benefits liability, $49.4 million of lease revenue bonds which are secured by future revenue sources from the lease of City property and $42.5 million of various other loans and obligations payable.

Outstanding Debt
(000 omitted)

Additional information on the City’s long-term liabilities can be found in Note 8 in the footnote disclosure.

311

18 Economic Factors and Next Year’s Budget and Rates

In preparing the budget for Fiscal Year 2024-25, management ’s goal was to produce an operating budget that adhered to City Council goals and objectives with an em phasis on cost containment. Expansion of the City’s economic base continues to be a City Council priority.

The Operating Budget for Fiscal Year 2024-25 is financially balanced and includes:
- General Fund designation of fund balance for c ontingencies of 25% of recurring appropriations. - A net increase in budgeted revenues of $3.2 million (o r +2.2%) in the General Fund as compared to the prior year’s final budget is primarily attributed to the following:
 An increase in sale tax revenue of $1.2 million reflecting continuing post-pandemic recovery.  An increase in property tax revenue of $1.2 m illion assuming an anticipated growth of 3 percent in assessed valuations.
 An increase in recreation revenue of $0.1 milli on projecting facilities and programs will be open all year.
- A net decrease in budgeted expenditures of $1.0 milli on or (+0.8%) in the General Fund as compared to the prior year’s final budget is primarily attribute to contractual obligations related to full-time City staff and the return of part-time staff as facilities reopen and programs resume.

Requests for Information

This financial report is designed to provide our citizens , taxpayers, customers, investors, and creditors with a general overview of the City of Fontana’s finances and to show the City’s accountability for the money it receives.

Questions concerning any of the information provided in this report or requests for additional information should be addressed to the City’s Finance Department at the City of Fontana, 8353 Sierra Avenue, Fontana, CA 92335. 312

Basic Financial Statements
313
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314
See No
tes to Financial Statements 19
City of Fontana, California
Statement of Net Position
June 30, 2024
Governmental Business-Type
Activities Activities Total
Assets
Cash and investments 520,310,599 $ 25,012,060$ 545,322,659$ Receivables
Accounts 5,279,955 1,430,955 6,710,910
Assessments 420,669 - 420,669
Interest 8,481,062 172,614 8,653,676
Loans 83,365,979 3,172,012 86,537,991
Loans
to Successor Agency 22,555,864 3,305,829 25,861,693
Al
lowance for doubtful accounts (101,795) (3,305,829) (3,407,624) Leases 15,933,396 - 15,933,396
Prepaid exp
enses 1,200 234,506 235,706
Internal balances (2,016,415) 2,016,415 -
Due from other governments 39,255,897 11,125 39,267,022 Inventories 1,436,933 66,628 1,503,561
Deposits 226,591 - 226,591
Land held for resale 11,565,365 - 11,565,365
Rest
ricted assets
Cash with fiscal agent 71,030,552 - 71,030,552
Ca
pital assets not being depreciated 273,785,061 1,050,254 274,835,315 Ca
pital assets, net of depreciation 516,191,653 62,076,190 578,267,843 Tot
al assets 1,567,722,566 95,242,759 1,662,965,325
Deferred Outflows of Resources
Deferred outflows of resources - pension related 65,692,268 1,609,520 67,301,788 Deferred outflows of resources - OPEB related 18,609,882 608,516 19,218,398 Total deferred outflows of resources 84,302,150 2,218,036 86,520,186 Liabilities
Accounts payable 35,479,485 3,167,395 38,646,880
Deposits payable 7,269,312 806,509 8,075,821
Interest payable 559,167 25,768 584,935
Due to other governments 45,831,234 - 45,831,234
Unear
ned revenue 28,263,303 - 28,263,303
Retenti
ons payable 2,742,478 23,825 2,766,303
Advances from other funds - 500,000
500,000
Noncurrent liabilities
Due within one year 17,468,187 1,093,882 18,562,069
Due in more than one year
Net pension liability 205,693,159 4,717,855 210,411,014 OPEB liability 20,658,400 675,499
21,333,899
Other 76,072,340 3,075,142 79,147,482
Total liabilities 440,037,065 14,085,875 454,122,940 Deferred Inflows of Resources
Deferred inflows of resources - pension related 472,889 27,055 499,944 Deferred inflows of resources - OPEB related 30,744,845 1,005,311 31,750,156 Deferred inflows of resources - Leases 15,028,063 - 15,028,063 Tot
al deferred inflows of resources 46,245,797 1,032,366 47,278,163 Net Position
Net investment in capital assets 741,903,826 59,154,883 801,058,709 Restricted for
Community development 121,961,290 - 121,961,290
Publ
ic safety 44,144,312 - 44,144,312
Publ
ic works 32,030,138 - 32,030,138
Pensi
on trust 12,204,822 - 12,204,822
Capi
tal projects 60,011,144 - 60,011,144
Unrest
ricted 153,486,322 23,187,671 176,673,993
Tot
al net position 1,165,741,854$ 82,342,554$ 1,248,084,408$ 315

See Notes to Financial Statements 20
City of Fontana, California
Statement of Activities
Year Ended June 30, 2024

Operating Capital
Charges for Contributions Contributions
Functions/Programs Expenses Services and Grants and Grants Total Governmental Activities
General government
City council and commissions 1,420,099$ - $ - $ - $ - $ City administration 7,540,936 - 98,795 - 98,795 Management services 11,055,898 1,803,828 5,045,682 - 6,849,510 Information technology 15,895,585 - - - - Human resources 23,534,274 8,836,789 - - 8,836,789 Public safety
Police 82,262,622 844,435 6,197,325 - 7,041,760 Fire 47,303,550 1,274,120 - - 1,274,120 Public works / engineering 76,016,743 45,123,710 41,358,998 18,034,673 104,517,381 Community development 20,058,225 12,752,239 7,332,335 2,091,045 22,175,619 Community services 22,000,117 4,241,880 7,731,468 - 11,973,348 Interest on long-term debt 2,132,683 - - - - Total governmental activities 309,220,732 74,877,001 67,764,603 20,125,718 162,767,322 Business-type Activities
Sewer 26,898,880 29,024,699 - 1,415,195 30,439,894 Stage Red 228,160 - - - - Interest on long-term debt 85,584 - - - - Total business-type activities 27,212,624 29,024,699 - 1,415,195 30,439,894 Total functions/programs 336,433,356$ 103,901,700 $ 67,764,603 $ 21,540,913 $ 193,207,216 $ General Revenues
Taxes:

Property taxes, levied for general purpose
Sales taxes
Franchise taxes
Business license taxes
Transient occupancy taxes
Total taxes
Intergovernmental, unrestriced
Motor vehicle in lieu
Investment earnings
Other
Contributions not restricted to specific programs
Transfers
Total general revenues and transfers
Change in Net Position
Net Position- Beginning of Year, as Previously Presented Restatements
Net Position- Beginning of Year, as Restated
Net Position at End of Year
Program Revenues

316

See Notes to Financial Statements 21
City of Fontana, California
Statement of Activities
Year Ended June 30, 2024

Governmental Business-type
Activities Activities Total
(1,420,099)$ - $ (1,420,099)$ (7,442,141) - (7,442,141) (4,206,388) - (4,206,388) (15,895,585) - (15,895,585) (14,697,485) - (14,697,485) (75,220,862) - (75,220,862) (46,029,430) - (46,029,430) 28,500,638 - 28,500,638 2,117,394 - 2,117,394 (10,026,769) - (10,026,769) (2,132,683) - (2,132,683) (146,453,410) - (146,453,410) - 3,541,014 3,541,014 - (228,160) (228,160) - (85,584) (85,584) - 3,227,270 3,227,270 (146,453,410) 3,227,270 (143,226,140)
107,808,356 - 107,808,356
55,887,448 - 55,887,448
11,208,531 - 11,208,531
11,943,284 - 11,943,284
1,144,605 - 1,144,605
187,992,224 - 187,992,224 759,269 - 759,269
25,832,592 1,054,017 26,886,609
7,558,825 8,368 7,567,193
6,680,574 - 6,680,574
2,382,950 (2,382,950) -
231,206,434 (1,320,565) 229,885,869
84,753,024 1,906,705 86,659,729
1,091,572,382 80,435,849 1,172,008,231
(10,583,552) - (10,583,552) 1,080,988,830 80,435,849 1,161,424,679
1,165,741,854$ 82,342,554 $ 1,248,084,408 $
Net (Expense) Revenue and Changes in Net Position

317

See Notes to Financial Statements 22
City of Fontana, California
Balance Sheet
Governmental Funds
June 30, 2024

Fire Traffic
Protection Housing Economic Congestion
General District Authority Stimulus Grants Relief
Assets
Cash and investments 46,225,376 $ 25,922,043 $ 15,679,071 $ 22,795,727 $ 7,109,250 $ 20,839,405 $ Receivables
Accounts 4,694,548 116,624 55,792 - - - Assessments - - - - - - Interest 434,814 151,208 4,577,600 - - 121,541 Loans - - 72,367,298 - - - Loans to Successor Agency 22,555,864 - - - - - Allowance for doubtful accounts - - - - - - Leases 9,264,282 - - - - - Prepaid expenses - - - - - - Deposits 44,090 - - - 78,453 - Due from other funds 25,526,416 - - - - - Due from other governments 9,982,515 285,838 - - 7,855,460 11,564,947 Inventories 512,764 - - - - - Land held for resale - - - - - - Advances to other funds - - - - - - Restricted assets
Cash with fiscal agent 12,712,521 - 12,120 109,808 - 374,944 Total assets 131,953,190 $ 26,475,713 $ 92,691,881 $ 22,905,535 $ 15,043,163 $ 32,900,837 $ Liabilities, Deferred Inflows and Fund Balances
Liabilities
Accounts payable 8,885,217 $ 287,199 $ 25,407 $ 2,412,148 $ 3,355,424 $ 5,426,010 $ Deposits payable 7,219,058 - - - - - Retentions payable 52,587 - - 562,796 143,441 577,049 Due to other funds - - - - 4,487,807 9,585,239 Due to other governments - - - - - - Unearned revenue 111,831 - - 19,815,192 7,059,687 - Advances from other funds - - - - - - Total liabilities 16,268,693 287,199 25,407 22,790,136 15,046,359 15,588,298 Deferred Inflows of Resources
Unavailable revenues 2,936,954 116,624 5,372,333 - 7,843,231 10,582,448 Leases 8,698,516 - - - - - Total deferred inflows of resources 11,635,470 116,624 5,372,333 - 7,843,231 10,582,448 Fund Balances
Nonspendable 23,112,718 - - - 78,453 - Restricted 1,832,888 26,071,890 87,294,141 115,399 - 6,730,091 Committed 47,182,993 - - - - - Assigned 6,428,514 - - - - - Unassigned 25,491,914 - - - (7,924,880) - Total fund balances 104,049,027 26,071,890 87,294,141 115,399 (7,846,427) 6,730,091 Total liabilities, deferred inflows of
resources and fund balances 131,953,190$ 26,475,713 $ 92,691,881 $ 22,905,535 $ 15,043,163 $ 32,900,837 $ Special Revenue

318

See Notes to Financial Statements 23
City of Fontana, California
Balance Sheet
Governmental Funds
June 30, 2024

Community Other Total
Sewer Facilities Traffic Governmental Governmental
Expansion Districts Mitigation Funds Funds
37,517,498$ 29,769 $ 50,625,436$ 273,765,889 $ 500,509,464 $ 110,773 - - 158,340 5,136,077 - - - 420,669 420,669 218,847 - 295,309 2,566,239 8,365,558 - - - 10,998,681 83,365,979 - - - - 22,555,864 - - - (101,795) (101,795) - - - 6,669,114 15,933,396 1,200 1,200
- - - 104,048 226,591 - - - - 25,526,416 - - - 9,567,137 39,255,897 - - - 849,705 1,362,469 - - - 11,565,365 11,565,365 - - - 28,408,911 28,408,911 - 42,885,149 154,756 14,781,254 71,030,552 37,847,118$ 42,914,918 $ 51,075,501 $ 359,754,757 $ 813,562,613 $ -$ - $ 660,240$ 13,495,745 $ 34,547,390 $ - - - 50,254 7,269,312 - - 158,790 1,247,815 2,742,478 - 6,468,703 - 4,980,241 25,521,990 36,271,528 - - 9,559,706 45,831,234 - - - 1,276,593 28,263,303 - - 26,691,542 1,717,369 28,408,911 36,271,528 6,468,703 27,510,572 32,327,723 172,584,618 - - - 5,604,279 32,455,869 - - - 6,329,547 15,028,063 - - - 11,933,826 47,483,932 - - - 12,519,118 35,710,289 - 36,446,215 23,564,929 101,790,287 283,845,840 - - - - 47,182,993 1,575,590 - - 204,740,916 212,745,020 - - - (3,557,113) 14,009,921 1,575,590 36,446,215 23,564,929 315,493,208 593,494,063 37,847,118$ 42,914,918 $ 51,075,501 $ 359,754,757 $ 813,562,613 $ Capital Projects

319
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320

See Notes to Financial Statements 24
City of Fontana, California
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2024

Fund Balances of Governmental Funds 593,494,063 $
Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets, net of depreciation, have not been included as financial resources in governmental fund activity (excluding internal service funds). 778,723,907 Deferred outflows of resources related to pensions and other postemployment benefits are applicable to future reporting periods and, therefore, are not reported in the funds. 84,302,150
Long-term liabilities, including net pension liability, OPEB liability and compensated absences, are not due and payable in the current period and, therefore, is not recognized in the funds. (319,892,086) Accrued interest payable from the current portion of interest due on long-term debt has not been reported in the governmental funds. (559,167) Deferred inflows of resources related to pensions and other postemployment benefits are applicable to future reporting periods and, therefore, are not reported in the funds. (31,217,734)
An Internal Service Fund is used by management to charge the costs of fleet management to individual funds. The assets and liabilities of the Internal Service Fund must be added to the Statement of Net Position. 28,434,852 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. 32,455,869 Net Position of Governmental Activities 1,165,741,854 $

321

See Notes to Financial Statements 25
City of Fontana, California
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
Year Ended June 30, 2024

Fire Traffic
Protection Housing Economic Congestion
General District Authority Stimulus Grants Relief
Revenues
Taxes 121,079,308 $ 66,442,841 $ - $ - $ - $ - $ Licenses and permits 5,799,129 1,274,736 - - - - Intergovernmental 1,042,245 - - 17,332,838 8,846,597 5,596,744 Charges for services 18,353,240 - - - - - Fines and forfeitures 702,670 - - - - - Special assessments - - - - - - Investment earnings (loss) 6,544,409 1,167,535 756,961 - - 895,702 Contribution from property owners - - - - - - Other revenue 4,280,869 1,000 424,564 - - - Total revenues 157,801,870 68,886,112 1,181,525 17,332,838 8,846,597 6,492,446 Expenditures
Current
General government
City council and commissions 1,217,194 - - - - - City administration 5,226,815 - - - 80,345 - Management services 5,270,108 - 282,986 5,046,110 - - Information technology 13,601,739 - - - - - Human resources 24,219,245 - - - - - Public safety
Police 74,862,832 - - - 590,538 - Fire - 46,341,850 - - - - Public works / engineering 22,402,452 - - 12,286,728 12,751,651 13,615,596 Community development 9,640,724 - 36,391 - 2,194,474 - Community services 13,703,338 - - - - - Debt service
Principal 979,425 - - - - - Interest 19,958 - - - - - Total expenditures 171,143,830 46,341,850 319,377 17,332,838 15,617,008 13,615,596 Excess (deficiency) of revenues
over (under) expenditures (13,341,960) 22,544,262 862,148 - (6,770,411) (7,123,150) Other Financing Sources (Uses)
Transfers in 22,819,661 1,206,100 - - 105,363 - Transfers out (25,319,815) (24,110,671) (4,887) - (59,161) (450,220) Leases issued (as lessee) 161,022 - - - - - Other financing sources- SBITA 2,459,222 - - - - - Sale of capital assets 9,513 - - - - - Total other financing sources (uses) 129,603 (22,904,571) (4,887) - 46,202 (450,220) Net Change in Fund Balances (13,212,357) (360,309) 857,261 - (6,724,209) (7,573,370) Fund Balances, Beginning of Year, as Previously
Presented 117,261,384 26,432,199 85,876,784 115,399 - - Adjustments - - 560,096 - (1,122,218) 14,303,461 Fund Balances, Beginning of Year, as Adjusted 117,261,384 26,432,199 86,436,880 115,399 (1,122,218) 14,303,461 Fund Balances, End of Fiscal Year 104,049,027 $ 26,071,890 $ 87,294,141 $ 115,399 $ (7,846,427) $ 6,730,091 $ Special Revenue

322

See Notes to Financial Statements 26
City of Fontana, California
Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds
Year Ended June 30, 2024

Community Future Other
Sewer Facility Traffic Capital Capital Governmental
Expansion Districts Mitigation Re investment Projects Funds Totals -$ - $ - $ 544,170 $ 188,066,319$ - - - 10,703,061 17,776,926 - - 849,568 33,000,498 66,668,490 - - 7,015,618 8,934,020 34,302,878 - - - 69,290 771,960 - - - 19,227,946 19,227,946 1,263,794 1,125,087 2,074,831 11,237,507 25,065,826 - 12,437,929 - - 12,437,929 - - - 1,634,349 6,340,782 1,263,794 13,563,016 9,940,017 85,350,841 370,659,056 - - - 200,109 1,417,303 - - - 952,712 6,259,872 - - 407,402 23,427 11,030,033 - - - 51,760 13,653,499 - - - 12,078 24,231,323 - - - 6,084,498 81,537,868 - - - 1,262 46,343,112 14,380 - 7,695,311 55,653,710 124,419,828 - 499,171 - 11,263,015 23,633,775 - - - 7,373,993 21,077,331 - - - 1,830,000 2,809,425 - - - 2,164,025 2,183,983 14,380 499,171 8,102,713 85,610,589 358,597,352 1,249,414 13,063,845 1,837,304 (259,748) 12,061,704 - 62,556 - 55,381,641 79,575,321 (19,280) (9,189,418) (73,880) (20,625,919) (79,853,251) - - - - 161,022 - - - - 2,459,222 - - - 4,107,021 4,116,534 (19,280) (9,126,862) (73,880) 38,862,743 6,458,848 1,230,134 3,936,983 1,763,424 38,602,995 18,520,552 345,456 32,509,232 21,801,505 25,960,317 42,037,977 222,830,244 575,170,497 - - - (25,960,317) (42,037,977) 54,059,969 (196,986) 345,456 32,509,232 21,801,505 - - 276,890,213 574,973,511 1,575,590$ 36,446,215 $ 23,564,929 $ 315,493,208 $ 593,494,063 $ Capital Projects

323

See Notes to Financial Statements 27
City of Fontana, California
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities
Year Ended June 30, 2024

Net Change in Fund Balances - Total Governmental Funds 18,520,552 $ Amounts reported for governmental activities in the Statement of Activities are different because:

Governmental funds report capital outlay as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation/amortization expense.

This is the amount by which capital outlays exceeded depreciation/amortization expense in the current period. Activies are net of deletions and transfers.

Depreciation/amortization expense (35,689,908)
$
Capital outlays 83,086,578
47,396,670
Donations of capital assets increase net position in the Statement of Activities, but do not appear in the governmental funds because they are not financial resources. 6,680,574
In the Statement of Activities, only the gain/loss on the sale of capital assets is reported. However, in the governmental funds, the proceeds from the sale increase financial resources. Thus, the change in net position differs from the change in fund balance by the cost of the capital assets sold. (1,893,748) Revenues in the Statement of Activities that do not provide current financial resources are not reported as unavailable revenues in the funds. 10,967,758 The issuance of long-term debt provides current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of long-term liabilities is an expenditure in governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position. This is the net effect of long-term liability increases and payments. 1,093,192 Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as (936,178) expenditures in governmental funds.

The Internal Service Fund is used by management to charge the costs of fleet management to individual funds. The net gain of the Internal Service Fund is reported with governmental activities. 4,923,518 Adjustments made to the OPEB liability do not use current financial resources and, therefore, are not recognized in the funds. 3,950,803 Adjustments made to the Net Pension Liability do not use current financial resources and, therefore, are not recognized in the funds. (5,950,117) Change in Net Position of Governmental Activities 84,753,024 $

324
See No
tes to Financial Statements 28
City of Fontana, California
Statement of Revenues, Expenditure and Changes in Fund Balances – Budget and Actual General Fund
Year Ended June 30, 2024
Variance with
Actual Final Budget -
Original Final Amounts Positive (Negative)
Revenues
Taxes 117,217,290 $ 119,877,473$ 121,079,308$ 1,201,835$ Licenses and permits 5,538,530 5,544,930 5,799,129 254,199 Intergovernmental 720,000 870,200 1,042,245 172,045 Charges for services 18,529,520 19,147,259 18,353,240 (794,019) Fines and forfeitures 558,110 627,510 702,670 75,160 Investment earnings (loss) 2,907,850 2,907,850 6,544,409 3,636,559 Other revenue 3,838,800 3,939,282 4,280,869 341,587 Total revenues 149,310,100 152,914,504 157,801,870 4,887,366 Expenditures
Current
General government
City council and commissions 1,212,060 1,254,490 1,217,194 37,296 City administration 4,352,950 6,539,237 5,226,815 1,312,422 Management services 4,665,300 5,833,427 5,270,108 563,319 Information technology 11,324,350 15,868,884 13,601,739 2,267,145 Human resources 13,017,640 26,007,610 24,219,245 1,788,365 Public safety
Police 80,173,660 80,292,104 74,862,832 5,429,272 Public works / engineering 20,529,960 24,197,718 22,402,452 1,795,266 Community development 9,362,950 12,018,096 9,640,724 2,377,372 Community services 15,298,940 15,127,000 13,703,338 1,423,662 Debt service
Principal -
77,418
979,425 (902,007)
Interest -
- 19,958 (19,958)
Total expenditures 159,937,810 187,215,984 171,143,830 16,072,154 Excess (deficit) of revenues
over expend
itures (10,627,710) (34,301,480) (13,341,960) 20,959,520 Other Financing Sources (Uses)
Transfers in 41,091,370 50,380,267 22,819,661 (27,560,606) Transfers out (29,149,870) (51,424,867) (25,319,815) 26,105,052 Leases issued (as lessee) - - 161,022
Other financing sources- SBITA - - 2,459,222 2,459,222 Sale of capital assets - - 9,513 9,513
Total other financing
sources (uses) 11,941,500 (1,044,600) 129,603 1,013,181 Net Change in Fund Balances 1,313,790 (35,346,080) (13,212,357) 22,133,723 Fund Balances - Beginning 117,261,384 117,261,384 117,261,384 - Fund Balances - Ending 118,575,174$ 81,915,304$ 104,049,027$ 22,133,723$ Budget Amounts
325

See Notes to Financial Statements 29
City of Fontana, California
Statement of Revenues, Expenditure and Changes in Fund Balances – Budget and Actual Fire Protection District – Special Revenue
Year Ended June 30, 2024

Variance with
Actual Final Budget -
Original Final Amounts Positive (Negative)
Revenues
Taxes 60,457,620 $ 60,457,620 $ 66,442,841 $ 5,985,221 $ Licenses and permits 1 ,245,700 1,245,700 1,274,736 29,036 Investment earnings (loss) - - 1,167,535 1,167,535 Other revenue - - 1,000 1,000 Total revenues 61,703,320 61,703,320 68,886,112 7,182,792 Expenditures
Public safety
Fire 48,293,230 49,464,718 46,341,850 3,122,868
Total expenditures 48,293,230 49,464,718 46,341,850 3,122,868 Excess (deficit) of revenues
over expenditures 13,410,090 12,238,602 22,544,262 10,305,660 Other Financing Sources (Uses)
Transfers in 1,206,100 1,206,100 1,206,100 -
Transfers out (23,943,700) (24,026,966) (24,110,671) (83,705) Total other financing
sources (uses) (22,737,600) (22,820,866) (22,904,571) (83,705) Net Change in Fund Balances (9,327,510) (10,582,264) (360,309) 10,221,955 Fund Balances - Beginning 26,432,199 26,432,199 26,432,199 - Fund Balances - Ending 17,104,689 $ 15,849,935 $ 26,071,890 $ 10,221,955 $ Budget Amounts

326

See Notes to Financial Statements 30
City of Fontana, California
Statement of Revenues, Expenditure and Changes in Fund Balances – Budget and Actual Housing Authority Low/Mod Housing Fund – Special Revenue Year Ended June 30, 2024

Variance with
Actual Final Budget -
Original Final Amounts Positive (Negative)
Revenues
Investment earnings (loss) 250,000 $ 250,000 $ 756,961 $ 506,961 $ Other revenue 126,000 126,000 424,564 298,564 Total revenues 376,000 376,000 1,181,525 805,525 Expenditures
Current
General government
City administration - 250,024 - 250,024 Management services 244,350 432,383 282,986 149,397 Community development 23,350 63,350 36,391 26,959 Total expenditures 1,245,100 2,475,289 319,377 2,155,912 Excess (deficit) of revenues
over expenditures (869,100) (2,099,289) 862,148 2,961,437 Other Financing Sources (Uses)
Transfers out - - (4,887) (4,887) Net Change in Fund Balances (869,100) (2,099,289) 857,261 2,956,550 Fund Balances - Beginning 86,436,880 86,436,880 86,436,880 - Fund Balances - Ending 85,567,780 $ 84,337,591 $ 87,294,141 $ 2,956,550 $ Budget Amounts

327

See Notes to Financial Statements 31
City of Fontana, California
Statement of Revenues, Expenditure and Changes in Fund Balances – Budget and Actual Economic Stimulus – Special Revenue
Year Ended June 30, 2024

Variance with
Actual Final Budget -
Original Final Amounts Positive (Negative)
Revenues
Intergovernmental - $ - $ 17,332,838$ 17,332,838 $ Expenditures
Current
General government
Management services - 5,379,370 5,046,110 333,260 Public works / engineering - 31,768,659 12,286,728 19,481,931 Total expenditures - 37,148,029 17,332,838 19,815,191 Excess (deficit) of revenues
over expenditures - (37,148,029) - 37,148,029 Net Change in Fund Balances - (37,148,029) - 37,148,029 Fund Balances - Beginning 115,399 115,399 115,399 - Fund Balances - Ending 115,399 $ (37,032,630)$ 115,399 $ 37,148,029 $ Budget Amounts

328

See Notes to Financial Statements 32
City of Fontana, California
Statement of Revenues, Expenditure and Changes in Fund Balances – Budget and Actual Grants Fund – Special Revenue
Year Ended June 30, 2024

Variance with
Actual Final Budget -
Original Final Amounts Positive (Negative)
Revenues
Intergovernmental 352,540 $ 40,061,990 $ 8,846,597 $ (31,215,393) $ Other revenue - 400,000 - (400,000) Total revenues 352,540 40,461,990 8,846,597 (31,615,393) Expenditures
Current
General government
City administration - 162,113 80,345 81,768 Public safety -
Police - 924,454 590,538 333,916 Public works / engineering 268,560 29,249,991 12,751,651 16,498,340 Community development 399,100 8,972,044 2,194,474 6,777,570 Total expenditures 667,660 39,308,602 15,617,008 23,691,594 Excess (deficit) of revenues
over expenditures (315,120) 1,153,388 (6,770,411) (7,923,799) Other Financing Sources (Uses)
Transfers in - 4,887 105,363 100,476 Transfers out - - (59,161) (59,161) Total other financing
sources (uses) - 4,887 46,202 41,315 Net Change in Fund Balances (315,120) 1,158,275 (6,724,209) (7,882,484) Fund Balances - Beginning 115,399 115,399 (1,122,218) - Fund Balances - Ending (199,721) $ 1,273,674 $ (7,846,427) $ (7,882,484) $ Budget Amounts

329

See Notes to Financial Statements 33
City of Fontana, California
Statement of Revenues, Expenditure and Changes in Fund Balances – Budget and Actual Traffic Congestion Relief – Special Revenue
Year Ended June 30, 2024

Variance with
Actual Final Budget -
Original Final Amounts Positive (Negative)
Revenues
Intergovernmental 5,524,500 $ 30,035,264 $ 5,596,744 $ (24,438,520) $ Investment earnings (loss) - - 895,702 895,702 Total revenues 5,524,500 30,035,264 6,492,446 (23,542,818) Expenditures
Current
Public works / engineering 2,309,580 42,891,507 13,615,596 29,275,911 Total expenditures 2,309,580 42,891,507 13,615,596 29,275,911 Excess (deficit) of revenues
over expenditures 3,214,920 (12,856,243) (7,123,150) 5,733,093 Other Financing Sources (Uses)
Transfers out (450,220) (450,220) (450,220) - Total other financing
sources (uses) (450,220) (450,220) (450,220) - Net Change in Fund Balances 2,764,700 (13,306,463) (7,573,370) 5,733,093 Fund Balances - Beginning 14,303,461 14,303,461 14,303,461 - Fund Balances - Ending 17,068,161 $ 996,998 $ 6,730,091 $ 5,733,093 $ Budget Amounts

330

See Notes to Financial Statements 34
City of Fontana, California
Statement of Net Position
Proprietary Funds
June 30, 2024

Governmental
Activities
Internal Service
Fund -
Sewer Total Nonmajor Fleet
Operations Enterprise Funds Totals Operations
Assets
Current Assets
Cash and investments 24,021,589 $ 990,471 $ 25,012,060 $ 19,801,135 $ Accounts receivables 1,408,015 22,940 1,430,955 143,878 Interest receivable 167,656 4,958 172,614 115,504 Loans receivable 2,081,888 1,090,124 3,172,012 - Loans to Successor Agency 3,305,829 - 3,305,829 - Allowance for doubtful accounts (3,305,829) - (3,305,829) - Prepaid expenses - 234,506 234,506 - Due from other governments 11,125 - 11,125 - Inventories 22,816 43,812 66,628 74,464 Total current assets 27,713,089 2,386,811 30,099,900 20,134,981 Noncurrent Assets
Capital assets, not being depreciated 1,050,254 - 1,050,254 1,079,813 Capital assets, net of depreciation 62,076,190 - 62,076,190 10,172,994 Total noncurrent assets 63,126,444 - 63,126,444 11,252,807 Total assets 90,839,533 2,386,811 93,226,344 31,387,788 Deferred Outflows of Resources
Deferred outflows of resources - pension related 1,609,520 - 1,609,520 - Deferred outflows of resources - OPEB related 608,516 - 608,516 - Total deferred outflows of resources 2,218,036 - 2,218,036 - Liabilities
Current Liabilities
Accounts payable 3,040,239 127,156 3,167,395 932,095 Due to other funds - 4,426 4,426 Deposits payable 806,509 - 806,509 - Interest payable 25,768 - 25,768 - Retentions payable 23,825 - 23,825 - Compensated absences payable - current 183,338 - 183,338 - Advances from other funds - 500,000 500,000 Loans payable - current 910,544 - 910,544 - Total current liabilities 4,990,223 631,582 5,621,805 932,095 Noncurrent Liabilities
Compensated absences payable 37,950 - 37,950 - Loans payable 3,037,192 - 3,037,192 - Net pension liability 4,717,855 - 4,717,855 - Net OPEB liability 675,499 - 675,499 - Total noncurrent liabilities 8,468,496 - 8,468,496 - Total liabilities 13,458,719 631,582 14,090,301 932,095 Deferred Inflows of Resources
Deferred inflows of resources - pension related 27,055 - 27,055 - Deferred inflows of resources - OPEB related 1,005,311 - 1,005,311 - Total deferred inflows of resources 1,032,366 - 1,032,366 - Net Position
Net investment in capital assets 59,178,708 - 59,178,708 11,252,807 Unrestricted 19,387,776 1,755,229 21,143,005 19,202,886 Total net position 78,566,484 $ 1,755,229 $ 80,321,713 $ 30,455,693 $ Reconciliation of Net Position to the Statement of Net Position Net Position per Statement of Net Position - Proprietary Funds 80,321,713 $ Accumulated adjustment to reflect the consolidation of of internal service fund activities related to enterprise funds 2,020,841
Net position per Statement of Net Position 82,342,554$
Enterprise Funds
Business-type Activities

331

See Notes to Financial Statements 35
City of Fontana, California
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
Year Ended June 30, 2024

Governmental
Activities
Internal Service
Fund -
Sewer Total Nonmajor Fleet
Operations Enterprise Funds Totals Operations
Operating Revenues
Charges for services 28,912,946 $ - $ 28,912,946$ 8,207,590 $ Total revenues 28,912,946 - 28,912,946 8,207,590 Operating Expenses
Personnel costs 2,370,736 - 2,370,736 1,367,794 Operating costs 1,619,682 2,111 1,621,793 2,296,336 Contractual 19,994,540 226,049 20,220,589 957,925 Depreciation 2,913,922 - 2,913,922 2,382,478 Total operating expenses 26,898,880 228,160 27,127,040 7,004,533 Operating income (loss) 2,014,066 (228,160) 1,785,906 1,203,057 Non-Operating Revenues (Expenses)
Investment earnings 1,020,234 33,783 1,054,017 766,230 Interest expense (85,584) - (85,584) - Other revenue (expenses) (30,003) 38,371 8,368 33,136 Gain (loss) on sale of capital assets - - - 371,968 Total non-operating revenues (expenses) 904,647 72,154 976,801 1,171,334 Income (loss) before contributions
and transfers 2,918,713 (156,006) 2,762,707 2,374,391 Capital contributions - connection fees 552,195 - 552,195 - Contributions from property owners 863,000 - 863,000 - Transfers in - - - 2,803,440 Transfers out (2,382,950) - (2,382,950) (142,560) Change in Net Position 1,950,958 (156,006) 1,794,952 5,035,271 Net Position, Beginning of Fiscal Year 76,615,526 1,911,235 78,526,761 25,420,422 Net Position, End of Year 78,566,484 $ 1,755,229 $ 80,321,713 $ 30,455,693 $ Reconciliation of Changes in Net Position to the Statement of Activities Changes in Net Position, per the Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds 1,794,952 $ Adjustment to reflect the consolidation of internal service activities to enterprise funds 111,753 Changes in Net Position of Business-Type Activities per Statement of Activities 1,906,705 $ Business-type Activities
Enterprise Funds

332

See Notes to Financial Statements 36
City of Fontana, California
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2024

Governmental
Activities
Internal Service
Total Fund -
Sewer Nonmajor Fleet
Operations Enterprise Funds Totals Operations
Operating Activities
Cash received from customers 28,863,524 $ 15,431 $ 28,878,955 $ 8,101,496 $ Cash payments to suppliers of goods and services (22,923,968) (374,896) (23,298,864) (2,742,016) Cash payments to employees for services (2,819,943) - (2,819,943) (1,367,794) Net Cash Provided by (Used For) Operating Activities 3,119,613 (359,465) 2,760,148 3,991,686 Noncapital Financing Activities
Advances from other funds - 500,000 500,000 - Transfers received - - - 2,803,440 Transfers paid (2,382,950) - (2,382,950) (142,560) Net Cash Provided by (Used For) Noncapital Financing Activities (2,382,950) 500,000 (1,882,950) 2,660,880 Capital and Related Financing Activities
Payments for debt service - principal payments (894,466) - (894,466) - Payments for debt service - interest payments (90,354) - (90,354) - Capital contributions 1,415,195 - 1,415,195 - Sale of capital assets - - - 371,968 Acquisition and construction of capital assets (1,609,747) - (1,609,747) (4,252,585) Net Cash Provided by (Used For) Capital and Related Financing Activities (1,179,372) - (1,179,372) (3,880,617) Investing Activities
Investment earnings 1,690,294 108,632 1,798,926 732,930 Net Cash Provided by Investing Activities 1,690,294 108,632 1,798,926 732,930 Net Increase (Decrease) in Cash and Cash Equivalents 1,247,585 249,167 1,496,752 3,504,879 Cash and Cash Equivalents - Beginning of Year 22,774,003 741,304 23,515,307 16,296,256 Cash and Cash Equivalents - End of Year 24,021,588 $ 990,471 $ 25,012,059 $ 19,801,135 $ Reconciliation of Operating Income to Net Cash
Provided by (Used for) Operating Activities:

Operating Income (Loss) 2,014,066 $ (228,160) $ 1,785,906 1,203,057 $ Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities
Depreciation 2,913,922 - 2,913,922 2,382,478 Other revenue (expenses) (30,003) 38,371 8,368 33,136 Changes in Assets and Liabilities
Accounts receivable (175,771) (22,940) (198,711) (141,193) Prepaid expenses 3,888 (234,506) (230,618) - Due from other governments 126,349 - 126,349 1,963 Inventories 8,137 (43,812) (35,675) 68,859 Deferred outflows - pension related 235,123 - 235,123 - Deferred outflows - OPEB related (159,454) - (159,454) - Accounts payable (1,273,360) 127,156 (1,146,204) 443,386 Due to other funds - 4,426 4,426 - Retentions payable (19,786) - (19,786) - Deposits payable 1,378 - 1,378 - Accrued compensated absences (15,839) - (15,839) - Deferred inflows - pension related 17,732 - 17,732 - Deferred inflows - OPEB related (47,027) - (47,027) - Net pension liability (557,036) - (557,036) - Net OPEB liability 77,294 - 77,294 - Net Cash Provided by (Used For) Operating Activities 3,119,613 $ (359,465) $ 2,760,148 $ 3,991,686 $ There were no non-cash investing, capital or financing activities for the year ended June 30, 2024.

Business-type Activities
Enterprise Funds

333
See No
tes to Financial Statements 37
City of Fontana, California
Statement of Fiduciary Net Position
June 30, 2024
Other Private Purpose
Postemployment Trust Fund
Custodial Benefits (OPEB) Successor Agency
Funds Trust of the Former RDA
Assets
Cash 27,454,285 $ 235,800$ 778,183$
Investments
Exchange Traded Funds - 11,761,372 -
Asset- backed securities - 795,671 -
Mutual Funds- Bonds 9,975,501
Mutual Funds- Equity - 3,535,982 -
Receivables (net)
Assessments 242,575 - -
Interest - - 1,125,390
Loans receivable - - 2,233,105
Allowance for doubtful accounts - - (1,971,279) Restricted assets
Cash and investments with fiscal agent 16,869,448 - 19,713,721 Total assets 44,566,308 26,304,326 21,879,120 Liabilities
Interest payable - - 1,870,885
Due to other governments 41,325 - -
Unearned revenue - - 125,000
Long-term liabilities
Due in one year - - 17,659,151
Due in more than one year - - 396,135,073 Total liabilities 41,325 - 415,790,109
Net
Position
Held for other organizations 11,029,129 - - Restricted for debt service 33,495,854 - (393,910,989) Restricted for other postemployment benefits - 26,304,326 - Total net position (deficit) 44,524,983$ 26,304,326$ (393,910,989)$ 334

See Notes to Financial Statements 38
City of Fontana, California
Statement of Changes in Fiduciary Net Position
Year Ended June 30, 2024

Other Private Purpose
Postemployment Trust Fund
Custodial Benefits (OPEB) Successor Agency
Funds Trust of the Former RDA
Additions
Contributions from property owners 18,215,972 $ - $ 35,224,588$ Employer Contributions - 3,524,890 - Net investment income 255,371 3,645,250 600,892 Increase in deposits held 8,427,638 - - Other revenue - - 1,050,521 Total additions 26,898,981 7,170,140 36,876,001 Deductions
Benefits paid to participants or beneficiaries - 3,524,890 - Contractual services - - 434,483 Administrative expense 862,984 36,018 6,000 Interest expense 7,207,347 - 14,106,841 Contributions to other funds - - 250,000 Principal payments 6,835,000 - - Decrease in deposits held 4,886,093 - - Total deductions 19,791,424 3,560,908 14,797,324 Changes in Net Position 7,107,557 3,609,232 22,078,677 Net Position (Deficit)- Beginning of Year,
As Previously Presented 37,417,426 - (415,989,666) Restatements - 22,695,094 - Net Position (Deficit)- Beginning of Year, as Restated 37,417,426 22,695,094 (415,989,666) Net Position (Deficit)- End of Year 44,524,983 $ 26,304,326 $ (393,910,989)$

335

39 City of Fontana, California
Notes to Financial Statements
June 30, 2024

Note 1 - Organization and Summary of Significant Accounting Policies

A. Description of the Reporting Entity

The City of Fontana was incorporated on June 25, 1952, under the laws of the State of California and enjoys all the rights and privileges applicable to a General Law City. It is governed by an elected five-member board. As required by generally accepted accounting principles, these financial statements present the City of Fontana (the primary government) and its component units. The City operates under a Council-Manager form of government, and currently provides a wide variety of services to its citizens, including police, public services, community development, general administrative and other services.

The inclusion of an organization within the scope of the reporting entity of the City of Fontana is based on the provisions of GASB Statement No. 14 and amended with GASB Statement No. 61. The blended component units discussed below, although legally separate entities, are in substance part of the government operation and so data from these component units has been combined herein. The following criteria were used in the determination of the blended component unit:

1. The members of the City Council also act as the governing body of the Fontana Industrial Development Authority, the Fontana Public Financing Authority, the Fontana Housing Authority (Housing Authority), the Fontana Community Foundation, the Fontana Fire Protection District (Fire District) and the Fontana Public Facilities Financing Authority.

2. The Fontana Industrial Development Authority, the Fontana Public Financing Authority, the Fontana Housing Authority, the Fontana Community Foundation, the Fontana Fire Protection District and the Fontana Public Facilities Financing Authority are managed by employees of the City. A portion of the City’s general overhead costs is allocated to the Fire District and the Housing Authority.

3. The City, the Fontana Industrial Development Authority, the Fontana Public Financing Authority, the Housing Authority, the Fontana Community Foundation, the Fire District and the Fontana Public Facilities Financing Authority are financially interdependent. They provide financial benefit/burden to the City.

Blended Component Units:

The Fontana Industrial Development Authority was established February 3, 1981, pursuant to Government Code Section 91500 of the State of California for the purpose of encouraging and financing industrial development within areas of the City of Fontana. There was no activity for the year being reported therefore the Fontana Industrial Development Authority is not presented in this report.

The Fontana Public Financing Authority was established on May 2, 1989, pursuant to Government Code Section 6500 of the State of California (Joint Exercise of Powers). Its purpose is to assist in the financing of capital improvements and working capital requirements of the City, the Former Redevelopment Agency and any other eligible local agencies. Separate financial statements are not available for the Public Financing Authority.

336

City of Fontana, California
Notes to Financial Statements
June 30, 2024

40 The Fontana Housing Authority was established May 3, 1994, pursuant to Government Code Section 34240 of the State of California for the purpose of rehabilitating and increasing the low- and moderate-income housing stock in the City of Fontana. Separate financials statements are not available for the Housing Authority.

The Fontana Community Foundation was established on April 27, 2005, pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986 for the purpose of aiding and assisting in the implementation, improvement and maintenance of public services that preserve and promote the health and welfare and education of local citizenry of the City of Fontana. Separate financials statements are not available for the Foundation.

The Fontana Fire Protection District was established on July 1, 2008, pursuant to the State of California Health and Safety Code Section 13800 for the purpose of providing fire suppression, emergency medical, fire prevention and education services within the city limits and the unincorporated area within the District’s Sphere of Influence. Separate financials statements are not available for the District.

The Fontana Public Facilities Financing Authority was established on September 9, 2014, pursuant to Government Code Section 6500 of the State of California (Joint Exercise of Powers). Its purpose is to assist in the financing of capital improvements and working capital requirements of the City, the Fontana Fire Protection District and any other eligible local agencies. Separate financial statements are not available for the Public Facilities Financing Authority.

B. Government-Wide and Fund Financial Statements

The government-wide financial statements include a statement of net position and a statement of activities.

These statements present summaries of governmental and business-type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements. For the most part, the effect of interfund activities has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

337

City of Fontana, California
Notes to Financial Statements
June 30, 2024

41 C. Measurement Focus, Basis of Accounting and Financial Statement Presentation

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.

Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period or 180 days for intergovernmental revenues. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

The City’s fiduciary funds consist of custodial funds, an Other Post Employment Benefits (OPEB) Trust fund, and a private purpose trust fund. Custodial funds account for assets held by the City for other governments or individuals. Fiduciary funds are accounted for using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenue of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City.

The City reports the following major governmental funds:

The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund.

The Fire Protection District Special Revenue Fund accounts for revenues received as part of property taxes, permits, and fees, that are to be used for fire suppression, emergency medical, fire prevention and education services incurred by the District within the City’s Sphere of Influence.

The Housing Authority Special Revenue Fund accounts for the assets and activities transferred from the Former Fontana Redevelopment Agency that will be monies to be used to increase and improve the community's supply of low and moderate income housing.

The Economic Stimulus Fund accounts for federal funds received due to COVID-19 to assist in the economic recovery of the City.

338

City of Fontana, California
Notes to Financial Statements
June 30, 2024

42 Grants Fund – To account for miscellaneous federal, state and county grants requiring segregated fund accounting.

Traffic Congestion Relief – To account for the receipt of voter-approved (Measure I) tax revenue relating to the relief of traffic congestion through maintenance and upkeep of streets and highways.

The Sewer Expansion Fund accounts for revenues received from development impact fees which, in turn, are reported to the Inland Empire Utilities Agency (IEUA) for capital expansion.

The Community Facilities Districts Funds account for activities related to the maintenance of City landscaped areas.

The Traffic Mitigation Capital Project Fund accounts for the revenues received from development impact fees which, in turn, are expended for traffic studies, planning and construction of traffic flow improvements.

The City reports the following major proprietary fund:

The Sewer Operations Fund is used to account for the operation of the City’s sewer utility system, a self- supporting activity which renders services on a user charge basis to residences and businesses located in the City.

Additionally, the City reports the following fund types:

Governmental Fund Types

Special Revenue Funds – to account for the proceeds of specific revenue resources (other than major capital projects) that are legally restricted to expenditures for specific purposes.

Debt Service Funds – to account for the accumulation of resources for, and the payment of, long-term debt obligation principal, interest and related costs.

Capital Project Funds – to account for financial resources to be used for the acquisition or construction of major capital facilities.

Proprietary Fund Types

Enterprise Funds – to account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the City Council is that the costs (including depreciation) of providing goods and services to the general public on a continuing basis be financed or recovered primarily through user charges.

Internal Service Fund – to account for financial transactions related to replacement of City-owned vehicles and equipment. These services are provided to other departments or agencies of the City, on a cost reimbursement basis.

339

City of Fontana, California
Notes to Financial Statements
June 30, 2024

43 Fiduciary Fund Types

Custodial Funds – to account for assets held by the City for other governments or individuals. These funds include debt service transactions on Community Facilities Districts bonds for which the City is not obligated.

Other Postemployment Benefits (OPEB) Trust - accounts for the assets of the OPEB Trust.

Private Purpose Trust Fund – accounts for the assets and liabilities of the former redevelopment agency and is allocated revenue to pay estimated installment payments of enforceable obligations until obligations of the former redevelopment agency are paid in full and assets have been liquidated.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the City’s sewer function and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the enterprise funds and the internal service fund are charges to customers for sales and services. Operating expenses for enterprise funds and internal service fund include the costs of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non- operating revenues and expenses.

When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed.

D. Assets, Liabilities and Net Position or Fund Balance

Deposits and Investments

The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition.

Investments for the City are reported at fair value. The City’s policy is generally to hold investments until maturity or until fair value equal or exceed cost. The State Treasurer’s Investment Pool operates in accordance with appropriate State laws and regulations. The reported value of the pool is the same as the fair value of the pool shares.

340

City of Fontana, California
Notes to Financial Statements
June 30, 2024

44 Fair Value Measurements

Certain assets and liabilities are required to be reported at fair value. The fair value framework provides a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of fair value hierarchy are described as follows:

Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly and fair value is determined through the use of models or other valuation methodologies including:

 Quoted prices for similar assets or liabilities in active markets;  Quoted prices for identical or similar assets or liabilities in markets that are inactive;  Inputs other than quoted prices that are observable for the asset or liability;  Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

These unobservable inputs reflect the City’s own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk). These unobservable inputs are developed based on the best information available in the circumstances and may include the City’s own data.

Receivables and Payables

Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (current portion of interfund loans) or “advances to/from other funds” (the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances”.

Advances between funds, as reported in the fund financial statements, are offset by a non-spendable fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources.

341

City of Fontana, California
Notes to Financial Statements
June 30, 2024

45 The City has elected, by ordinance, that the duties of assessing and collecting property taxes be performed by the San Bernardino County Assessor and Tax Collector, respectively. Tax levies cover the period from July 1 to June 30 of each year. All tax liens attach annually on January 1 preceding the fiscal year for which the taxes are levied. Taxes are levied on both real and personal property as of January 1. Secured property taxes are levied against real property and are due and payable in two equal installments. The first installment is due on November 1 and becomes delinquent if not paid by December 10. The second installment is due on February 1 and becomes delinquent if not paid by April 10. Unsecured personal property taxes are due on July 1 each year and become delinquent if not paid by August 31.

Functional Classifications

Expenditures of the Governmental funds are classified by function. Functional classifications are defined as follows:

General Government includes legislative activities which have a primary objective of providing legal and policy guidelines for the City. Also included in this classification are those activities which provide management or support services across more than one functional area.

Public Safety includes those activities which involve the protection of people and property.

Public Works / Engineering includes those activities which provide specialized skills and knowledge in support of the operation of government, involve the maintenance and improvement of City streets, roads and park department development and maintenance.

Community Development includes those activities which enhance the general quality of life and for protective inspections except those related to fire.

Community Services includes those activities which provide all cultural and recreational programs and facilities.

Inventories, Prepaids and Land Held for Resale

All inventories are valued at cost using the first-in, first-out (FIFO) method. Inventories consist of expendable supplies held for consumption. Inventory costs are recorded as expenditures when used.

The General Fund inventory is accounted for using the consumption method and is offset by a reservation of fund balance in the fund-level statements, which indicates that it does not constitute “available spendable resources.”

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaids in both the government-wide and fund financial statements.

Land purchased for resale is capitalized as inventory at acquisition cost or net realizable value, if lower.

342

City of Fontana, California
Notes to Financial Statements
June 30, 2024

46 Leases

At the commencement of the lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflows of resources are recognized as revenue over the life of the lease term. For additional information, refer to the disclosures in Note 4.

Key estimates and judgments include how the City determines the discount rate it uses to discount the expected lease receipts to present value, lease term and lease receipts.

The City used the estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease receipts included the measurement of the lease receivable is composed of fixed payments from the lessee.

The City monitors changes in circumstances that would require a remeasurement of its leases and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

Restricted Assets

Restricted assets represent unexpended bond proceeds, interest earnings thereon and reserve amounts of certificates of participation, tax allocation bonds, and special assessment bonds. Under the related resolutions and indentures, the remaining proceeds are restricted for the use of future construction of improvements to the respective projects, for debt service or for reserve requirements. The majority of these assets are held by trustees and fiscal agents.

Capital Assets

Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 ($50,000 for intangibles and $100,000 for infrastructure) and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation.

In accordance with GASB 34, the City has reported general infrastructure assets acquired in prior and current years. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.

343
City of Fontana, California
Notes to Financial Statements
June 30, 2024
47 Property, pla
nt and equipment of the primary government is depreciated using the straight-line method over the following estimated useful lives:

Years
Buildings and improvements 40-55 years
Machinery and equipment 3-20 years
Vehicles 5-20 years
Infrastructure 20-30 years
Right to use asset Shorter of useful life or lease term Asset
Right to
use lease assets are recognized at the lease commencement date and represent the City’s right to use an underlying asset for the lease term. Right to use lease assets are measured at the initial value of the lease liability plus any payments made to the lessor before commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term, plus any initial direct costs necessary to place the lease asset into service. Right to use lease assets are amortized over the shorter of the lease term or useful lives of the underlying asset using the straight-line method. The amortization period varies.

Right to use subscription IT assets are recognized at the subscription commencement date and represent the City’s right to use an underlying IT asset for the subscription term. Right to use subscription IT assets are measured at the initial value of the subscription liability plus any payments made to the vendor at or before the commencement of the subscription term, plus any capitalizable initial implementation costs necessary to place the subscription asset into service. Right to use subscription IT assets are amortized over the shorter of the subscription term or useful life of the underlying asset using the straight-line method. The amortization period varies.

Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, are transactions that represent a consumption of net position that applies to a future period(s) and are not considered assets. The government has two items that qualify for reporting in this category, deferred outflows related to pensions and OPEB.

In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and are not considered to be liabilities. The government has four items that qualify for reporting in this category:

1. Unavailable revenue is reported only in the governmental funds balance sheet. The governmental f unds
report unavailable revenues for revenues that are measurable bu t are not collected within 60 days of
the
end of the current fiscal period or 180 days for certain intergovernmental revenues. These amounts are deferred
and recognized as an inflow of resources in the period that the amounts become available. 344

City of Fontana, California
Notes to Financial Statements
June 30, 2024

48 2. Pension related deferred inflows, is reported only on the Statement of Net Position. The government reports deferred inflows of resources related to pensions arising from certain changes in the collective net pension liability.

3. OPEB related deferred inflows, is reported only on the Statement of Net Position. The government reports deferred inflows of resources related to pensions arising from certain changes in the collective OPEB liability.

4. Lease related deferred inflows, is reported on the governmental balance sheet and the Statement of Net Position. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.

Compensated Absences

It is the City’s policy to permit employees to accumulate earned but unused personal leave which includes both vacation and sick pay benefits. All personal leave is accrued when incurred in the government-wide, proprietary, and fiduciary fund financial statements. The General Fund and the Sewer Operations Fund are typically used to liquidate these obligations. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements.

Long-Term Obligations

In the government-wide financial statements, and proprietary fund types in the fund financial statements, long- term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financial sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

The City is subject to a legal bonded indebtedness limit of 15 percent of the assessed value of all real and personal property in the City, excluding any bonded indebtedness of the Successor Agency. At June 30, 2024, the City had bonded indebtedness of $49,425,000 against its debt limit of $4,525,921,237, which is 1.09 percent of the total limit.

345

City of Fontana, California
Notes to Financial Statements
June 30, 2024

49 Pensions

For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

Generally accepted accounting principles requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

Valuation Date (VD) June 30, 2022
Measurement Date (MD) June 30, 2023
Measurement Period (MP) July 1, 2022, to June 30, 2023

Other Postemployment Benefits (OPEB)

For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and the OPEB expense, information about the fiduciary net position of the City’s plan OPEB plan (OPEB Plan), and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

Generally accepted accounting principles require that the reported results must pertain to liability information within certain defined timeframes. For this report, the following timeframes are used:

Valuation Date (VD) June 30, 2022
Measurement Date (MD) June 30, 2023
Measurement Period (MP) July 1, 2022, to June 30, 2023

Net Position Flow Assumption

Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied.

346

City of Fontana, California
Notes to Financial Statements
June 30, 2024

50 Fund Balance Flow Assumptions

Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance.

Unassigned fund balance is applied last.

E. Adoption of New Accounting Standard

As of July 1, 2023, the City adopted GASB Statement No. 100, Accounting Changes and Error Corrections. The implementation of this standard requires additional presentation and disclosure requirements for accounting changes and error corrections. The financial statements have been updated to the presentation requirements related to the error correction and change within the financial reporting entity in the financial statements for the year ended June 30, 2024. The additional disclosures required by the standard are included in Note 19.

F. Reconciliation of Government-Wide and Fund Financial Statements

Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government-Wide Statement of Net Position

The governmental fund balance sheet includes a reconciliation between fund balance of governmental funds and net position of governmental activities as reported in the government-wide statement of net position. One element of that reconciliation explains that “long-term liabilities are not due and payable in the current period and, therefore, are not recognized in the funds.” The detail of this $319,892,086 long-term liabilities difference is as follows:

Lease revenue bonds payable 49,425,000 $
Loan payables 2,037,010
Claims and judgments 22,333,344
Compensated absences 12,149,286
Lease liability 164,865
SBITA liability 1,562,310
Other postemployment benefits liability 20,658,400
Net pension liability 205,693,159
Bond premium to be amortized 5,868,712
Net adjustment to reduce fund balances of governmental
funds to arrive at net position of governmental activities 319,892,086$

347

City of Fontana, California
Notes to Financial Statements
June 30, 2024

51 Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government-Wide Statement of Activities

The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances – total governmental funds and changes in net position of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation states that “the issuance of long-term debt provides current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position. Repayment of long-term liabilities is an expenditure in governmental funds, but the repayment reduces long-term liabilities in the statement of net position.” The detail of this $1,093,192 difference is as follows:

Principal repayments:

Lease revenue bonds (1,830,000) $
SANBAG loan payable (407,402)
Amortization of bond premium (244,977)
Net change in claims and judgments (251,632)
Net change in lease liability 78,509
Net change in SBITA liability 1,562,310
Net adjustment to increase net changes in fund balances of governmental funds to arrive at changes in
net position of governmental activities (1,093,192)$

Another element of that reconciliation states that “some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds.” The details of this $936,178 is as follows:

Compensated absences (936,178) $
Net adjustment to increase net changes in fund balances of governmental funds to arrive at changes in net position of governmental activities (936,178)$

348

City of Fontana, California
Notes to Financial Statements
June 30, 2024

52 Note 2 - Stewardship, Compliance and Accountability

Budgetary Information

Annual budgets for governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP).

The City uses the following procedures in establishing the budgetary data reflected in the financial statements.

After January 1, department heads prepare estimates for required appropriations for the fiscal year commencing the following July 1. The proposed budget includes estimated expenditures and forecasted revenues for the fiscal year. The data is presented to the City Manager for review. Prior to June 1, the City Manager submits to the City Council a proposed operating budget for the upcoming fiscal year. The operating budget includes a summary of the proposed expenditures and financial resources of the City, as well as historical data for the preceding five fiscal periods. Public meetings are conducted at the civic center to obtain taxpayer comments. The City Council adopts the budget by June 30 through passage of an adopting resolution. Budgets were legally adopted for the General, special revenue, debt service and all capital project funds during the fiscal year ended June 30, 2024. This appropriated budget covers substantially all City expenditures. All appropriated amounts shown are as originally adopted or as amended by the City Council. During the year, supplementary appropriations in the Governmental Funds were approved in the amount of $345,811,539. Additionally, amounts representing projects that were not completed were unappropriated at the end of the year, and reappropriated in the following year. Unexpended appropriations lapse at the year end.

The legal level of control is at the department level. Department heads are authorized to transfer budgeted amounts within their departments, within the same funds, with the approval of the City Manager. Transfers of appropriations between departments and between funds may be made only by authority of the City Council.

Formal budgetary integration is employed as a management control device during the fiscal year for all governmental funds.

Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders, contracts) outstanding at year end do not constitute expenditures or liabilities because the commitments will be reappropriated and honored during the subsequent year.

349

City of Fontana, California
Notes to Financial Statements
June 30, 2024

53 All funds with expenditures exceeding appropriations are reviewed by the City as part of its regular quarterly budget report to ensure that adequate revenues and/or other sources are available to cover these expenditures.

In the event that revenues and other sources are not sufficient to fund the following year’s planned expenditures, the budget for the following fiscal year may be adjusted to ensure that there are no fund balance deficits in any funds. Excess of expenditures over appropriations at the fund level for the fiscal year ending June 30, 2024, are as follows:

Expenditures Appropriations Excess
General Fund- Debt Service 999,383 $ 77,418 $ (921,965) $ Special Revenue Funds
Traffic Safety Fund- Public Works & Engineering 65,379 44,190 (21,189) Capital Reinvestments - Community Development 7,907,545 65,112 (7,842,433) Capital Reinvestments - Community Services 22,858 - (22,858)

A budgetary comparison schedule is not presented for the Down Payment Assistance, Opioid Settlement, Underground Utilities, Prop 1B, and TDA / Article 3 special revenue funds as it did not have a legally adopted annual budget. Budgetary schedules for all other governmental funds are presented in the fund financial statements or the combining and individual fund statements and schedules.

Deficit Fund Balance

As of June 30, 2024, the following funds had deficit fund balances:

Special Revenue Funds
Grants 7,846,427 $
TDA 67,690
Housing and Community Development Block Grant 51,048
Community Services Reimbursements 1,086,988
ASES ELO-P 1,596,711
Permanent Local Housing Allocation 47,316
ARPA County 707,360
Fiduciary Funds
Successor Agency 393,910,989

These deficit fund balances will be addressed through future year revenues and transfers.

350

City of Fontana, California
Notes to Financial Statements
June 30, 2024

54 Note 3 - Cash and Investments

The City follows the practice of pooling cash and investments of all funds except for restricted funds generally held by outside custodians and funds in its employees’ deferred compensation plans. Each fund’s portion of total cash and investments is summarized by fund type in the combined balance sheet as equity in pooled cash and investments. Amounts in the City’s deferred compensation plan are no longer reported on the City’s balance sheet as they are held in trust.

Interest income earned on pooled cash and investments is allocated to those funds which are required by law, local ordinance, administrative action or agreements to receive interest. Such allocation is made annually, at a minimum, based on the weighted average cash balances in each fund receiving interest. Interest income from cash and investments, which are restricted, is credited directly to the related fund.

Restricted Assets
Cash and Cash and Investments
Investments with Fiscal Agent Total
Governmental activities 520,310,599 $ 71,030,552 $ 591,341,151 $ Business- type activities 25,012,060 - 25,012,060 Fiduciary funds 54,536,794 36,583,169 91,119,963 599,859,453$ 107,613,721 $ 707,473,174 $

Cash and investments as of June 30, 2024 consisted of the following:

Cash on hand 50,000$
Deposits with financial institutions 197,013,082
Investments 510,410,092
707,473,174$

Investments and Interest Receivable – Restricted

Restricted assets represent unexpended financing proceeds, interest earnings thereon and reserved amounts of certificates of participation, tax allocation bonds, and special assessment bonds. Under the related resolutions and indentures, the remaining proceeds are restricted for the use of future construction or improvement to the respective projects, for debt service or for reserve requirements. The majority of these assets are held by trustees and fiscal agents.

351

City of Fontana, California
Notes to Financial Statements
June 30, 2024

55 Authorized Investments

Under the provisions of the City’s investment policy and in accordance with Section 53601 of the California Government Code, the City may invest in the following types of investments:

State Treasurer’s Local Agency Investment Fund (LAIF) Mortgage or A sset-Backed Securities Corporate Obligations (medium-term notes and bonds) Commercial Paper U.S. Government Securities Certificates of Deposit
Mutual Funds Negotiable Certificates of Deposit
Bankers’ Acceptances Investment Contracts

It is the City’s policy not to invest in Small Business Administration Obligations (SBAs), Repurchase Agreements, Reverse Repurchase Agreements, or Financial Futures and Financial Option Contracts.

Investments Authorized by the City’s Section 115 Trusts

Investments of the Pension Trust and the OPEB Plan Trust are governed by the provisions of the separate Trust Agreements, rather than the general provisions of the California Government Code or the City’s investment policy. Investments authorized for funds held in the Section 115 Trusts include U.S. and foreign equity, commodities, real estate investment trusts, and bonds. The strategic range for Equity and Fixed Income investments is 40-60% and 38-58%, respectively. There are no limitations on the maximum amount that can be invested in one issuer or the maximum maturity of an investment. For the year ended June 30, 2024, the annual money-weighted rate of return on investments, net of investment expense, was 16.07%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested.

Local Agency Investment Fund (LAIF)

The LAIF is a special fund of the California State Treasury, secured by the full faith and credit of the State of California, through which local governments may pool investments. Each city may invest up to $75,000,000 in LAIF for each entity. Investments in LAIF are highly liquid as deposits can be converted to cash within twenty- four (24) hours without loss of interest earned to such date.

LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The State Treasurer’s Office audits the fund annually. The fair value of the position in the State pool is the same as the value of the pool shares. LAIF is not registered with the Securities and Exchange Commission (SEC) and is not rated.

Deposits

At June 30, 2024, the carrying amount of the City’s deposits was $186,606,896 and the bank balance was $189,082,503. The $2,475,607 difference represents outstanding checks and other reconciling items.

352

City of Fontana, California
Notes to Financial Statements
June 30, 2024

56 Disclosures Relating to Credit Risk

The City’s investment policy limits investments in medium term notes (MTNs) and federal securities to those in a rating category of “A” or its equivalent or better by Moody’s or Standard and Poor’s rating service. As of June 30, 2024, the City’s investments consisted of the following:

Amount AAA - Aaa AA+ - AA- A - A+ A- - BBB+ Not Rated
U.S Government Securities 20,640,587$ 2,373,052 $ 18,267,535 $ $ - - $ $ - Federal Agency Securities 12,774,514 - - - - 12,774,514 Asset- Backed Securities 28,578,131 28,578,131 - - - - Corporate 76,581,840 7,933,065 8,975,045 48,379,923 11,293,807 - Municipal Bonds 79,665 - 79,665 - - - U.S Treasuries 148,929,589 148,929,589 - - - - State Investment Pool (LAIF) 82,880,496 - - - - 82,880,496 Money Market Funds 8,590,468 - - - - 8,590,468 Section 115 Trust- Pension 12,093,159 - - - - 12,093,159 Section 115 Trust- OPEB 26,068,526 - - - - 26,068,526 Held by fiscal agents:

Money Market Funds 93,193,117 - - - - 93,193,117 510,410,092$ 187,813,837 $ 27,322,245 $ 48,379,923 $ 11,293,807 $ 235,600,280 $ Ratings as of Year End
Investment Type

The City holds investments in Corporate Bonds with various issuers that were downgraded to A- / BBB+, by S&P's Investor Services based on current credit standards. Although the credit ratings were downgraded, the City intends to hold these investments until maturity, presuming that they will either increase in value or hold their current value.

Custodial Credit Risk

The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party.

The California Government Code requires California banks and savings and loan associations to secure an Entity’s deposits by pledging government securities with a value of 110% of an Entity’s deposits. California law also allows financial institutions to secure Entity deposits by pledging first trust deed mortgage notes having a value of 150% of an Entity’s total deposits.

The City Treasurer may waive the collateral requirement for deposits which are fully insured up to $250,000 by the FDIC. The collateral for deposits in federal and state-chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California, as an Agent of Depository. These securities are physically held in an undivided pool for all California public agency depositors. Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an “Agent of Depository” has the effect of perfecting the security interest in the name of the local governmental agency. Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the local government agency.

353
City of Fontana, California
Notes to Financial Statements
June 30, 2024
57 As of June 30
, 2023, the City’s deposits with financial institutions were covered by FDIC up to $250,000, and the remaining amounts of $188,832,530 were collateralized as described above.

Concentration of Credit Risk
The City’s investment policy imposes restrictions for certain types of investments with any one issuer.

Maximum %
Maximum of Pool Government Code
Maturity Allowed Section
State Treasurer’s Local Agency 5 years 75 million/account 16429.1 Investment Fund (LAIF)
U.S. Government Securities 5 years None 53601(b) 53601(f) California State, California Local
Government Agencies, and other 5 years 20% 53601(c) 53601(d) United States State Bonds 53601(e)
Bankers Acceptances 180 days 40% 53601(g)
Commercial Paper 270 days 10% 53601(h)
Negotiable Certificates of Deposit 5 years 30% 53601( i) Medium-Term Notes 5 years 10% 53601(k)
Pass- Through Securities 5 years 20% 53601(o)
Supranational Obligations 5 years 30% 53601(q)
Certificates of Deposit 5 years None 53635
Investment Type
With respect to concentration risk, as of June 30, 2024, the City is in compliance with the restrictions of the investment policy.

Investments guaranteed by the U.S. Government and investments in mutual funds and external investment pools are excluded from this requirement.

Interest Rate Risk
The City’s investment policy limits investment maturity as a means of managing its exposure to fair value losses arising from increasing interest rates. The City’s investment policy states that at least 10% of the City’s portfolio shall mature in one year or less. The only exception to this maturity limit shall be the investment of the gross proceeds of tax-exempt bonds. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk.
354

City of Fontana, California
Notes to Financial Statements
June 30, 2024

58 As of June 30, 2024, the City had the following investments and maturities:

6 months 6 months 1 to 3 3 to 5 6 years Total
or less to 1 year years yea rs or more Fair Value
U.S Government Securities 11,190,971$ 601,948 $ 8,847,668 $ - $ - $ 20,640,587$ Corporate Obligations 5,986,813 6,817,320 54,250,303 9,527,404 - 76,581,840 State Investment Pool 82,880,496 - - - - 82,880,496 Treasury Notes - - 148,929,589 - - 148,929,589 Municipal Bonds 79,665 - - - - 79,665 Asset- Backed Securities - - 3,715,252 12,051,667 12,811,212 28,578,131 Federal Agency Securities - - - - 12,774,514 12,774,514 Money Market Mutual Funds 8,590,468 - - - - 8,590,468 Section 115 Trust - Pension
Asset- Backed Securities 331,000 - - - - 331,000 Exchange Traded Funds 6,617,855 - - - - 6,617,855 Mutual Funds - Bonds 3,680,513 - - - - 3,680,513 Mutual Funds - Equity 1,463,791 - - - - 1,463,791 Section 115 Trust - OPEB
Exchange Traded Funds 11,761,372 - - - - 11,761,372 Asset- Backed Securities 795,671 - - - - 795,671 Mutual Funds - Bonds 9,975,501 - - - - 9,975,501 Mutual Funds- Equity 3,535,982 - - - - 3,535,982 Held by fiscal agents:

Money Market Funds 93,193,117 - - - - 93,193,117 240,083,215$ 7,419,268 $ 215,742,812 $ 21,579,071 $ 25,585,726 $ 510,410,092 $ Investment Maturities

355

City of Fontana, California
Notes to Financial Statements
June 30, 2024

59 Fair Value Measurement

The City categorizes its fair value investments within the fair value hierarchy established by generally accepted accounting principles. The City has the following recurring fair value measurements as of June 30, 2024:

Level 1 Level 2 Level 3 Total Fair Value
Investments Measured at Fair Value
U.S Government Securities - $ 20,640,587$ - $ 20,640,587$ Corporate Obligations - 76,581,840 - 76,581,840 Treasury Notes 148,929,589 - - 148,929,589 Municipal Bonds - 79,665 - 79,665 Asset- Backed Securities - 28,578,131 - 28,578,131 Federal Agency Securities - 12,774,514 - 12,774,514 Section 115 Trust - Pension
Asset- Backed Securities - 331,000 331,000 Exchange Traded Funds - 6,617,855 6,617,855 Mutual Funds - Bonds - 3,680,513 3,680,513 Mutual Funds - Equity - 1,463,791 1,463,791 Section 115 Trust - OPEB
Exchange Traded Funds - 11,761,372 - 11,761,372 Asset- Backed Securities - 795,671 - 795,671 Mutual Funds - Bonds - 9,975,501 - 9,975,501 Mutual Funds - Equity - 3,535,982 - 3,535,982 Total investments measured at fair value 148,929,589$ 176,816,422 $ - $ 325,746,011$ Investments Not Reported in Fair Value Hierarchy
Money Market Mutual Funds 101,783,585$
State Investment Pool (LAIF) 82,880,496
Total investments not reported in fair value 184,664,081 Total investments held 510,410,092$
Fair Value Hierarchy

Note 4 - Leases

The City is a lessor in noncancellable leases for use of City property for cell towers. The leases are for five years and are required to make fixed monthly payments per month. The leases interest rates range from .31% to

1.70%. Additionally, the City is a lessor in a 55-year noncancellable lease for an apartment unit complex with fixed monthly rent payments starting at $1,667 per month with annual increase of 2%. The City recognized $1,039,681 in lease revenue and $380,980 in interest revenue during the current fiscal year related to these agreements. As of June 30, 2024, the lease receivable is $15,933,396 and deferred inflows of resources is $15,028,063.

The City is a lessee in a noncancellable lease for the City’s use of vehicles. For further information on the City’s lease liability see Note 8.

356

City of Fontana, California
Notes to Financial Statements
June 30, 2024

60 Note 5 - Receivables

Receivables as of June 30, 2024, for the City’s individual major funds and non-major, proprietary major and non- major, and fiduciary funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows:

Fire Protection Housing Traffic Congestion Sewer Traffic General District Authority Relie f Expansion Mitigation Accounts 4,694,548 $ 116,624 $ 55,792 $ - $ 110,773$ - $ Interest 434,814 151,208 4,577,600 121,541 218,847 295,309 Loans - - 72,367,298 - - - Loans to Successor Agency 22,555,864 - - - - - 27,685,226 267,832 77,000,690 121,541 329,620 295,309 Less allowance for
doubtful accounts - - - - - - 27,685,226$ 267,832 $ 77,000,690 $ 121,541 $ 329,620 $ 295,309 $ Nonmajor Nonmajor Internal
Governmental Sewer Enterprise Service Fiduciary
Funds Operations Fund Funds Funds Total
Accounts 158,340
$ 1,408,015 $ 22,940 $ 143,878 $ - $ 6,710,910$ Assessments 420,669 - - 242,575 663,244 Interest 2,566,239 167,656 4,958 115,504 1,125,390 9,779,066 Loans 10,998,681 2,081,888 1,090,124 - 2,233,105 88,771,096 Loans to Successor Agency - 3,305,829 - - - 25,861,693 14,143,929 6,963,388 1,118,022 259,382 3,601,070 131,786,009 Less allowance for
doubtful accounts 101,795 3,305,829 - - 1,971,279 5,378,903 14,042,134$ 3,657,559 $ 1,118,022 $ 259,382 $ 1,629,791 $ 126,407,106 $ Capital ProjectsSpecial Revenue

Due to the uncollectability of the loans to the Successor Agency, an allowance for doubtful accounts has been recorded at June 30, 2024 for the loans that are pending approval by the State Department of Finance as enforceable obligations. An allowance has been recorded for these loans in the amount $3,305,829 in Sewer Operations funds. This allowance will remain in place until the State Department of Finance makes further determinations regarding the probability of collection on the loan balances. Several loans have been approved by the State Department of Finance; thus, an allowance has not been recorded for the loans in the amounts of $22,555,864 in the General Fund.

357

City of Fontana, California
Notes to Financial Statements
June 30, 2024

61 Note 6 - Capital Assets

Capital asset activity for the year ended June 30, 2024, was as follows:

Beginning Restated
Balance Balance Balance
June 30, 2023 Adjustments June 30, 2023 Transfers Increases Decreases June 30, 2024 Governmental Activities
Capital assets, not being depreciated
Land 175,066,016 $ - $ 175,066,016$ 3,230,187 $ 5,786,231 $ (1,559,818) $ 182,522,616 $ Construction in progress 61,819,427 (10,364,383) 51,455,044 (38,474,880) 71,803,137 (872) 84,782,429 Easements 6,339,512 - 6,339,512 140,504 - - 6,480,016 Total capital assets,
not being depreciated 243,224,955 (10,364,383) 232,860,572 (35,104,189) 77,589,368 (1,560,690) 273,785,061 Capital assets, being depreciated
Buildings and improvements 337,481,931 - 337,481,931 29,013,084 5,628,572 (218,093) 371,905,494 Machinery and equipment 28,502,744 - 28,502,744 2,745,792 1,178,452 (131,479) 32,295,509 Vehicles 38,426,518 - 38,426,518 1,280,832 3,706,763 (2,586,348) 40,827,765 Infrastructure 878,830,400 - 878,830,400 2,064,481 4,130,917 - 885,025,798 Intangible assets
Subscription assets - - - 4,040,606 - 4,040,606 Lease assets- vehicles 108,141 - 108,141 - 210,520 - 318,661 Other intangibles 5,384,870 - 5,384,870 - - - 5,384,870 1,288,734,604 - 1,288,734,604 35,104,189 18,895,830 (2,935,920) 1,339,798,703 Less accumulated depreciation for
Buildings and improvements (165,979,608) - (165,979,608) - (12,934,759) 30,291 (178,884,076) Machinery and equipment (24,011,912) - (24,011,912) - (1,489,232) 131,479 (25,369,665) Vehicles (23,984,465) - (23,984,465) - (3,230,733) 2,418,652 (24,796,546) Infrastructure (569,014,140) - (569,014,140) - (21,500,845) - (590,514,985) Intangible assets
Subscription assets - - - - (1,344,580) - (1,344,580) Lease assets- vehicles (1,825) (22,185) (24,010) - (87,805) - (111,815) Other intangibles (2,520,529) - (2,520,529) - (64,854) - (2,585,383) (785,512,479) (22,185) (785,534,664) - (40,652,808) 2,580,422 (823,607,050) Total capital assets,
being depreciated, net 503,222,125 503,222,125 35,104,189 (21,756,978) (355,498) 516,191,653 -
Governmental activities capital assets, net 746,447,080$ (10,386,568) 736,060,512 - $ 55,832,390$ (1,916,188) $ 789,976,714 $

Beginning Adjusted
Balance Balance Balance
June 30, 2023 Adjustments June 30, 2023 Transfers Increases Decreases June 30, 2024 Business Type Activities
Capital assets, not being depreciated -
Construction in progress 1,513,666 $ - $ 1,513,666 (1,138,436) $ 675,024 $ - $ 1,050,254$ Total capital assets, -
not being depreciated 1,513,666 - 1,513,666 (1,138,436) 675,024 - 1,050,254 Capital assets, being depreciated
Buildings and improvements 1,798,150 - 1,798,150 - - - 1,798,150 Machinery and equipment 613,549 - 613,549 - 71,723 - 685,272 Infrastructure 123,043,623 - 123,043,623 1,138,436 863,000 - 125,045,059 Intangibles 64,698 - 64,698 - - - 64,698 125,520,020 125,520,020 1,138,436 934,723 - 127,593,179 - Less accumulated depreciation for:

Buildings and improvements (738,391) - (738,391) - (46,244) - (784,635) Machinery and equipment (600,602) - (600,602) - (7,031) - (607,633) Infrastructure (61,199,376) - (61,199,376) - (2,860,647) - (64,060,023) Intangibles (64,698) - (64,698) - - - (64,698) (62,603,067) (62,603,067) - (2,913,922) - (65,516,989) Total capital assets,
being depreciated, net 62,916,953 62,916,953 1,138,436 (1,979,199) - 62,076,190 Business- type activities capital assets, net 64,430,619$ 64,430,619 - $ (1,304,175)$ - $ 63,126,444$

358

City of Fontana, California
Notes to Financial Statements
June 30, 2024

62 Depreciation and amortization expense was charged to functions/programs of the primary government as follows:

Government Activities
General government 4,379,469$
Public safety 3,052,083
Community development 1,444,572
Community services 785,936
Public works and engineering 28,608,270
Total depreciation / amortization charged to functions 38,270,330 Charged to Internal Service Fund 2,382,478
Total Governmental Activities 40,652,808$
Business-type Activities
Sewer Operations 2,913,922$

The following material construction commitments existed at June 30, 2024:

Expenditures
Contract to date as of Remaining
Amount June 30, 2024 Commitments
City Hall Renovation Project, PH 1 25,946,529 $ 7,138,993 $ 18,807,536 $ Downtown Parking Structure 18,000,000 38,358 17,961,642 Fire Station No. 81 12,090,967 9,946,395 2,144,572 Arrow/Tokay TS 1,712,000 224,583 1,487,417 Arrow/Cypress TS 2,325,000 308,938 2,016,062 Foothill: Hemlock-Alameda Arterial 4,230,000 1,411,957 2,818,043 Project Name

359

City of Fontana, California
Notes to Financial Statements
June 30, 2024

63 Note 7 - Interfund Receivables, Payables and Transfers

The composition of interfund balances as of June 30, 2024, is as follows: Due to/from other funds:

Due to/from other funds

Amount
General Fund Major Governmental Funds
Community Facilities Districts 6,468,703 $
Grants 4,487,807
Traffic Congestion Relief 9,585,239
Non-major Governmental Funds
Permanent Local Housing Allocation 41,018
TDA 192,500
Community Facilities Districts 15,736
Housing and Community Development Block Grant 777,489
Community Services Reimbursements 1,774,149
ASES ELO-P 1,504,350
ARPA County 674,999
Non-major Enterprise Funds
Stage Red 4,426
Total 25,526,416 $
Receivable Fund Payable Fund

The amounts due to the General Fund are the result of negative cash balances at the end of the year.

Advance to/from other funds

Amount
Non-major Governmental Funds Major Governmental Funds
Future Capital Projects Traffic Mitigation 26,691,542 $ Non-major Governmental Funds
Capital Improvements 1,717,369
Total 28,408,911 $
Receivable Fund Payable Fund

The advances from Future Capital Projects to the Capital Improvements fund are representative of a cooperative agreement entered into with the City of Ontario for the Etiwanda Avenue and Slover Avenue / Airport Drive Intersection Project. The City has agreed to pay for the City of Ontario’s DIF share of the project. The City of Ontario will reimburse the City three years after the project construction has been accepted.

The advances from Future Capital Projects to the Traffic Mitigation fund are representative of cooperative agreements entered into with San Bernardino Associated Governments (SANBAG) for various transportation projects throughout the City. SANBAG will repay the amounts owed to the Measure I 2010-2040 fund over a thirty-year period, as Measure I funds are collected. As part of the cooperative agreement, the City was required to fund a certain percentage of each project with Development Impact Fees (DIF) collected in the Traffic Mitigation fund. In order to complete these projects now rather than over a thirty-year period, various funds advanced the SANBAG share and DIF share of each project. There is no repayment schedule for these advances as the amounts will be repaid as collections are received. 360

City of Fontana, California
Notes to Financial Statements
June 30, 2024

64 Interfund transfers:

Interfund transfers primarily consist of allocation of administrative costs, transfer of funding to capital project funds, and transfer of funding to general debt service fund.

Fire Communitiy Nonmajor
Protection Facilities Governmental Internal
General District Districts Gr ants Funds Service Fund Total Transfers out
General - $ 200,000$ 62,556 $ - $ 22,432,909$ 2,624,350 $ 25,319,815 $ Fire Protection District 10,467,963 - - - 13,642,708 - 24,110,671 Housing Authority - - - - 4,887 - 4,887 Grants 59,161 - - - - - 59,161 Traffic Congestion Relief 450,220 - - - - - 450,220 Sewer Expansion 19,280 - - - - - 19,280 Community Facilities Districts - - - - 9,189,418 - 9,189,418 Traffic Mitigation 73,880 - - - - - 73,880 Nonmajor Governmental Funds 9,223,647 1,006,100 - 105,363 10,111,719 179,090 20,625,919 Sewer Operations 2,382,950 - - - - - 2,382,950 Internal Service Fund 142,560 - - - - - 142,560 22,819,661$ 1,206,100 $ 62,556 $ 105,363 $ 55,381,641 $ 2,803,440 $ 82,378,761 $ Transfers In

Note 8 - Long-Term Liabilities

Long-term liabilities activity for the year ended June 30, 2024, was as follows:

Beginning Ending Amounts Amounts
Balance Balance Due Within Due in More
June 30, 2023 Additions Retirements Ju ne 30, 2024 One Year Than One Year Governmental Activities
Lease Revenue Bonds 51,255,000 $ - $ 1,830,000$ 49,425,000 $ 1,915,000 $ 47,510,000 $ Claims and judgments 22,584,976 7,258,966 7,510,598 22,333,344 6,190,443 16,142,901 Compensated absences 11,213,108 8,678,060 7,741,882 12,149,286 7,741,882 4,407,404 Loan payable - SANBAG 2,444,412 - 407,402 2,037,010 407,402 1,629,608 SBITA liability - 2,459,222 896,912 1,562,310 912,594 649,716 Lease liability 86,356 161,022 82,513 164,865 55,889 108,976 Total governmental activities
long-term liabilities 87,583,852$ 18,557,270 $ 18,469,307 $ 87,671,815 17,223,210 70,448,605 Unamortized bond premium 5,868,712 244,977 5,623,735 93,540,527$ 17,468,187 $ 76,072,340 $
Business- Type Activities
Compensated absences 237,127 $ 167,499 $ 183,338 $ 221,288 $ 183,338 $ $37,950 Loans payable 4,842,202 - 894,466 3,947,736 910,544 3,037,192 Total business- type activity
long- term liabilities 5,079,329$ 167,499 $ 1,077,804 $ 4,169,024 $ 1,093,882 $ 3,075,142 $

361

City of Fontana, California
Notes to Financial Statements
June 30, 2024

65 Lease Revenue Bonds

2014 Lease Revenue Bonds
In November 2014, the Fontana Public Facilities Financing Authority issued $37,675,000 of Lease Revenue Bonds. The proceeds of the issue were used to refinance 2007 Lease Revenue Bonds with an outstanding balance of $29,890,000. The bonds pay interest semi-annually at rates ranging from 3.875% to 5.00% and mature from September 2015 through September 2037. Principal and interest payments are made from the lease income for certain real property and the improvements thereon.

Fiscal Year
Ending Principal Interest Total
2025 1,410,000 $ 1,199,050 $ 2,609,050 $
2026 1,480,000 1,126,800 2,606,800
2027 1,555,000 1,050,925 2,605,925
2028 1,630,000 971,300 2,601,300
2029 1,715,000 893,300 2,608,300
2030-2034 9,880,000 3,103,975 12,983,975 2035-2038 9,595,000 785,900 10,380,900 Totals 27,265,000$ 9,131,250 $ 36,396,250 $
2014 Lease Revenue Bonds

2021 Lease Revenue Bonds
In November 2021, the Fontana Public Facilities Financing Authority issued $23,125,000 of Lease Revenue Bonds. The proceeds of the issue were used to refinance 2010 Lease Revenue Bonds with an outstanding balance of $5,075,000, finance the acquisition, construction and installation of certain public capital improvements and pay the costs of issuing the Lease Revenue bonds Series 2021A Bonds. The bonds pay interest semi-annually at rates of 4.00% and mature from November 2022 through November 2048. Principal and interest payments are made from the lease income for certain real property and the improvements thereon.

Fiscal Year
Ending Principal Interest Total
2025 505,000 $ 886,400 $ 1,391,400 $
2026 525,000 866,200 1,391,200
2027 545,000 845,200 1,390,200
2028 565,000 823,400 1,388,400
2029 590,000 800,800 1,390,800
2030-2034 3,310,000 3,631,400 6,941,400 2035-2039 4,025,000 2,914,800 6,939,800 2040-2044 4,630,000 2,041,600 6,671,600 2045-2049 4,390,000 1,155,600 5,545,600 2050-2052 3,075,000 249,200 3,324,200 Totals 22,160,000$ 14,214,600 $ 36,374,600 $
2021 Lease Revenue Bonds

362
City of Fontana, California
Notes to Financial Statements
June 30, 2024
66 SANBAG Loan Payable

The City entered into an agreement with San Bernardino Associated Governments “SANBAG” for the I-15 Duncan Canyon Interchange Project. Under the agreements, SANBAG contributed $12.0 million of State Proposition 1B Corridor Mobility Improvement funds to the project. A portion of the SANBAG loan is required to be paid back, totaling $4,074,021. The City has seven years to pay back the amount without interest.

Fiscal Year
Ending Principal Interest Total
2025 407,402$ -$ 407,402$
2026 407,402 -
407,402
2027 407,402 -
407,402
2028 407,402 -
407,402
2029 407,402 -
407,402
Totals 2,037,010$ -$
2,037,010$

SANDBAG
Subscripti
on Based Information Technology Arrangements (SBITAS)
The City has entered into ten SBITA contracts for the use of various software platforms. The City is required to make principal and interest payments through June 2027. The SBITA liability was valued using discount rates between 2.180% and 3.631% based on the City's incremental borrowing rate at the inception of the SBITAs. The total amount of right to use subscription assets, and the related accumulated amortization on right to use subscription assets was $4,040,606 and $1,344,580, as of June 30, 2024, respectively.

Remaining principal and interest on SBITAS are as follows:

Fiscal Year
Ending Principal Interest Total
2025 912,594
$ 35,094$ 947,688$
2026 561,239 14,166 575,405
2027 88,477 1,546 90,023 Totals 1,562,310 $ 50,806 $ 1,613,116 $ SBITAS
Leas
e Liability
The City is a lessee in a noncancellable lease for the City’s use of vehicles. The lease terms are in five-year terms.

The lease liability was valued using discount rates ranging from .6320% to 3.445% based on the City’s incremental borrowing rate at the inception of the lease. The total amount of the right to use asset and the related accumulated amortization on the right to use asset was $318,661 and $111,815, respectively. 363

City of Fontana, California
Notes to Financial Statements
June 30, 2024

67 Future principal and interest payments on the lease liability is as follows:

Fiscal Year
Ending Principal Interest Total
2025 55,889 $ 3,209 $ 59,098 $ 2026 57,218 1,880 59,098 2027 49,848 612 50,460 2028 1,910 6 1,916 Totals 164,865 $ 5,707 $ 170,572 $ Lease Liability

Loan Payable-San Bernardino Trunk Sewer Loans

In March 2007, the City received approval from the State of California Water Resources Control Board for the San Bernardino Trunk Sewer Project. The Project was funded by the State Revolving Fund on a reimbursement basis for construction costs incurred in relation to the project. The project was done in three phases, with each of the three phases being funded by a separate loan from the State Revolving Fund. The loans will be repaid in annual installments. As of June 30, 2024, the loan payable is $3,947,736.

Fiscal Year
Ending Principal Interest Principal Interest Principal Interest Principal Interest Total 2025 466,999 $ 35,241 $ 192,827 $ 20,350 $ 250,718 $ 18,683 $ 910,544 $ 74,274 $ 984,818 $ 2026 475,571 26,670 196,078 17,098 255,264 14,138 926,913 57,906 984,819 2027 484,300 17,941 199,385 13,792 259,892 9,510 943,577 41,243 984,820 2028 493,187 9,053 202,747 10,430 264,603 4,798 960,537 24,281 984,818 2029 - - 206,165 7,011 - - 206,165 7,011 213,176 Totals 1,920,057$ 88,905 $ 997,202 $ 68,681 $ 1,030,477 $ 47,129 $ 3,947,736 $ 204,715 $ 4,152,451 $ Combined LoansTrunk Sewer Phase Lift Statio n Phase Force Main Phase San Bernardino Trunk Sewer - State Revolving Fund Loans

Mello-Roos Community Facilities Districts

Between 1988 and 2024, twenty- two Community Facilities Districts have issued Special Tax Bonds. The bonds are authorized pursuant to the Mello- Roos Community Facilities Act of 1982 and are secured by and payable solely from the revenues of an annual special assessment tax levied against land within the Districts. The bonds are not backed by the full faith and credit or taxing power of the City and do not constitute indebtedness of the City. The City is not liable for the bonds, but acts as an agent for the bondholders in collecting the assessments from property owners, forwarding the collections to bondholders and initiating foreclosure proceedings if necessary.

364

City of Fontana, California
Notes to Financial Statements
June 30, 2024

68 The transactions occurring as a result of the City acting in an agent capacity are being accounted for in a custodial fund. As the bonds are financing the construction and installation of certain public improvements, the transactions relating to the construction of the improvements are being accounted for in capital project funds.

The bonds are not reflected as an indebtedness of the City at June 30, 2024.

Outstanding
Original Issue Amount at
Date of Issue Amount June 30, 2024
CFD # 7 Series B (Sierra Lakes) July 2021 1,445,000 $ 1,080,000 $ CFD # 11 (Heritage West End) July 2021 2,995,000 2,225,000 CFD # 12 Series A (Sierra Lakes) July 2021 9,950,000 8,060,000 CFD # 22 (Sierra Hills South) June 2014 31,260,000 20,325,000 CFD # 31 (Citrus Heights North) July 2018 18,485,000 14,625,000 CFD # 31 (Citrus Heights North) October 2021 8,025,000 7,585,000 CFD # 37 (Montelago) July 2021 2,135,000 1,900,000 CFD # 70 (Avellino) July 2021 1,975,000 1,860,000 CFD # 71 (Sierra Crest) July 2016 5,915,000 4,855,000 CFD #74B (Citrus/ Summit) June 2019 4,045,000 3,720,000 CFD # 80 (Bella Strada) August 2017 11,125,000 9,755,000 CFD # 81 (Gabriella) March 2018 7,180,000 6,425,000 CFD #86 (Etiwanda Ridge) February 2020 5,025,000 4,600,000 CFD #85 (The Meadows) October 2020 22,640,000 21,195,000 CFD #88 (Sierra Crest II) October 2020 6,510,000 6,255,000 CFD #89 (Belrose) November 2020 5,725,000 5,315,000 CFD #90 (Summit @ Rosena I) June 2021 22,260,000 21,405,000 CFD #87 (El Paseo) July 2021 5,325,000 5,115,000 CFD #95 (Summit @ Rosena 2) May 2022 9,305,000 8,925,000 CFD #106 (Mountainview) August 2022 6,940,000 6,830,000 CFD #99 (The Retreat) May 2023 4,630,000 4,630,000 CFD #100 (Victoria) October 2023 5,310,000 5,310,000 CFD #111 (Monterado) May 2024 7,595,000 7,595,000 Total Special Tax Bonds 205,800,000$ 179,590,000 $
Special Tax Bonds

Note 9 - Risk Management

The City established risk management programs for workers’ compensation in 1978-79 and for general liability in 1983-84. The programs are accounted for within the General Fund and are supported by contributions from the other principal City funds.

Effective with an excess coverage insurance policy on July 1, 1992, the workers’ compensation program provides for self-insurance up to a maximum of $1,000,000 per incident. The claims which exceed the limit are insured up to a maximum per incident of $45,000,000.

Under the City’s excess insurance policy for general liability, all claims incurred after October 1, 1992, are self- insured up to a maximum of $1,000,000 per incident. The claims which exceed the limit are insured up to maximum per incident of $25,000,000. The City is self-insured for general liability claims incurred prior to October 1, 1992.
365

City of Fontana, California
Notes to Financial Statements
June 30, 2024

69 There have been no significant changes in insurance coverage in the last four years. The amount of settlements has not exceeded the amount of insurance coverage for each of the past three fiscal years.

Liabilities under the City’s self-insurance programs are accrued and charged to expenses when claims are reasonably determinable and when the existence of the City’s liability is probable. The accrued liabilities for general liability include an estimate of incurred but not reported claims. The following is a summary of the changes in the claims liability over the past two fiscal years:

Claims payable, June 30, 2022 20,654,000 $
Claims incurred (including IBNRs) 6,946,328
Claims paid/ dismissed (5,015,352)
Claims payable, June 30, 2023 22,584,976
Claims incurred (including IBNRs) 7,258,966
Claims paid/ dismissed (7,510,598)
Claims payable, June 30, 2024 22,333,344 $

There are several other legal actions pending against the City which management considers incidental to normal operations. These actions are not covered by insurance. All liabilities to be accrued are included in the claims and judgments amount stated above.

Note 10 - Litigation

The City of Fontana has been named as a defendant in numerous lawsuits and claims arising in the course of operations. In the aggregate, these claims seek monetary damages in significant amounts. To the extent the outcome of such litigation has been determined to result in probable financial loss to the City, such loss has been accrued in the accompanying financial statements.

Note 11 - Jointly Governed Organization

I.R.N.E.T.

The City of Fontana is a member of Inland Regional Narcotics Enforcement Team (I.R.N.E.T.), a joint powers authority of the police departments of ten cities in San Bernardino and Riverside Counties, and participating county, federal and state law enforcement agencies. The organization was formed September 18, 1989, with the mission to promote coordinated law enforcement efforts and to address emerging criminal justice issues, mainly in the areas of drug trafficking and money laundering. The executive council consists of police chiefs of the cities and resident agents in charge of the federal and state law enforcement agencies. All financial decisions were made by the executive council. The members received monetary distributions from the asset seizures based on their respective contribution to the effort. Financial information for I.R.N.E.T. is not available. 366

City of Fontana, California
Notes to Financial Statements
June 30, 2024

70 Note 12 - Other Post-Employment Benefits Liability

Plan Description

In addition to the pension benefits described in Note 13, the City administers a single employer defined-benefit post-employment healthcare plan (the Plan). Dependents are eligible to enroll, and benefits continue to surviving spouses. Eligibility for lifetime retiree health benefits requires retirement from the City on or after reaching age 50 (age 52 for PEPRA New Hires) with at least five years of PERS-credited service. The City subsidizes the benefit depending on the date of hire and years of services with the City at retirement. Retirees are responsible for the cost of coverage above the City subsidy. Spousal coverage is offered at retirement. No City-subsidized vision or life insurance benefit is offered. Additional requirements are set forth in the individual contracts for executive positions or in the Memorandum of Understanding (MOUs) for the five bargaining units operating within the City. The amount the City provides on the behalf of retirees is dictated in the contracts or MOUs.

Employees Covered

As of the June 30, 2023, measurement date, the following current and former employees were covered by the benefit terms under the OPEB Plan:

Active employees 572
Inactive employees or beneficiaries currently receiving benefits 234 Inactive employees entitled to, but not yet receiving benefits - Total 806

Contributions

The required contribution is based on projected pay-as-you-go financing requirements. For the fiscal year ending June 30, 2024, the City’s cash contributions were $2,355,211 in the form of current premiums, which is funded through the General Fund, and the estimated implied subsidy was $679,629 resulting in total payments of $3,034,840.

367

City of Fontana, California
Notes to Financial Statements
June 30, 2024

71 OPEB Liability

The City’s OPEB liability was measured as of June 30, 2023, and was determined by an actuarial valuation based on the following actuarial methods and assumptions:

Actuarial Cost Method Entry Age Normal
Actuarial Assumptions
Discount Rate 6.00%
Inflation 2.30%
Salary Increases 2.80% per annum, in aggregate
Mortality Rate Derived using CalPERS’ Membership Data
for all funds
Pre- Retirement Turnover Derived using CalPERS’ Membership Data for all funds
Based on 2021 Getzen model that reflects
actual premium increases through 2023
Healthcare Trend Rate followed by 7.40% Pre- Medicare/ 4.2% Medicare, gradually decreasing to an
ultimate rate of 4.14% in 2075.

Discount Rate

The discount rate used to measure the total OPEB liability was 6.00 percent. GASB 75 allows the use of a discount rate that is up to the expected long-term rate of return on the assets in the trust set aside to pay benefits, if the plan sponsor makes regular contributions to the trust, such that the assets are not depleted at any point in the future. The OPEB plan assets are expected to be invested using a strategy to achieve the long- term rate of return.

Changes in the OPEB Liability

The changes in the OPEB liability for the OPEB Plan are as follows:

Increase (Decrease)
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
Balance at June 30, 2023
(Measurement Date June 30, 2022) 40,446,261$ 21,553,499 $ 18,892,762 $ Changes recognized for the measurement period:

Service cost 349,468 - 349,468 Interest 2,356,699 - 2,356,699 Differences between expected and actual experience 7,102,941 - 7,102,941 Changes of assumptions (3,191,536) - (3,191,536) Contributions - Employer- City Contributions - 2,355,211 (2,355,211) Contributions - Employer- Implicit Subsidy - 679,629 (679,629) Benefit Payments (2,355,211) (2,355,211) - Implicit Subsidy Credit (679,629) (679,629) - Net investment income - 1,149,795 (1,149,795) Administrative expense - (8,200) 8,200 Net Changes 3,582,732 1,141,595 2,441,137 Balance at June 30, 2024
(Measurement Date June 30, 2022) 44,028,993$ 22,695,094 $ 21,333,899 $

368

City of Fontana, California
Notes to Financial Statements
June 30, 2024

72 Sensitivity of the Net OPEB Liability to Changes in the Discount Rate

The following presents the OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2023:

Current
1% Decrease Discount Rate 1% Increase
(5.00%) (6.00%) (7.00%)
OPEB Liabiliity 25,678,178 $ 21,333,899 $ 17,610,131 $

Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates

The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2023:

Current Healthcare
1% Decrease Cost Trend Rates 1% Increase
(6.40% decreasing (7.40% decreasing (8.40% decreasing
to 3.14%) to 4.14%) to 5.14%)
Net OPEB Liabiliity 17,457,588 $ 21,333,899 $ 25,860,300 $

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB

For the fiscal year ended June 30, 2024, the City recognized OPEB expense of $555,099. As of fiscal year ended June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
OPEB contributions subsequent to measurement date 3,524,890 $ - $ Changes of assumptions 7,529,782 20,685,607
Net difference between projected and actual earnings
on OPEB plan investments 1,886,709 -
Differences between expected and actual experience 6,277,017 11,064,549 Total 19,218,398 $ 31,750,156 $

The $3,524,890 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2023, measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2025.

369

City of Fontana, California
Notes to Financial Statements
June 30, 2024

73 Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as OPEB expense as follows:

Deferred
Outflows/(Inflows)
of Resources
2024 (1,976,502) $
2025 (1,976,502)
2026 (1,976,500)
2027 (2,567,227)
2028 (2,595,860)
Thereafter (4,964,057)
Ended June 30,
Measurement Period

OPEB Fiduciary Plan- GASB 74

The following information is provided for the OPEB plan in accordance with GASB 74. The OPEB Fiduciary Plan is the same Plan as reported above, however, the Scope of GASB 74 includes the OPEB Fiduciary Trust. In addition, the reporting periods differ and, as such, the financial information is different. Certain information requiring footnote disclosure is repetitive.

The OPEB Plan is administered by the City and is presented in the statements of fiduciary net position and change in fiduciary net position. The net OPEB plan liability and asset information is reported within certain defined timeframes as listed below:

Valuation Date: June 30, 2023
Measurement Date: June 30, 2024
Report Date: June 30, 2024

At June 30, 2023 (census date), the benefits terms covered the following employees:

Active employees 572
Inactive employees, spouses, or beneficiaries currently receiving benefit payments 234 Total 806

370

City of Fontana, California
Notes to Financial Statements
June 30, 2024

74 Actuarial Assumptions

The total OPEB liability in the June 30, 2024 actuarial valuation was determined using the following actuarial assumptions:

Discount Rate 6.00%
Investment Rate of Return 6.00%
Inflation 2.30%
Salary Increases 2.80%
Mortality Rate Based on CalPERS Tables
Healthcare Trend Rate
Pre-Medicare 6.80%*
Medicare 4.17%*
* Trending down to 4.14% over 51 years. Applies to Calendar years.

Experience studies come from the CalPERS Pension Assumption Model, effective November 17, 2021.

Discount Rate

The discount rate used to measure the total OPEB liability was 6.00 percent. GASB 75 allows the use of a discount rate that is up to the expected long-term rate of return on the assets in the trust set aside to pay benefits, if the plan sponsor makes regular contributions to the trust, such that the assets are not depleted at any point in the future. The OPEB plan assets are expected to be invested using a strategy to achieve the long- term rate of return.

Long Term Expected Rate of Return

The expected long-term real rate of return of the OPEB Trust is 6.00% as of June 30, 2023 as provided by the Plan Sponsor’s investment advisor. This rate of return was determined using a building-block method in which best-estimate ranges of expected future real rates of return net of investment expense are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future rates of return by the target allocation percentage. The Plan Sponsor’s expected future real rates of return by asset class is shown below:

Target Expected Long-Term
Allocation Real Rates of Return
U.S. Large Cap Equitites 26.00% 5.40%
Emerging Large Cap Equities 4.00% 7.70%
Global ex-U.S. Large Cap Equities 18.50% 6.50%
U.S. Small Cap Equities 1.50% 4.40%
U.S. Aggregate Bonds 43.50% 1.10%
U.S. Inflation-Linked Govt Bonds 6.50% 1.60%
Total 100.00%
1 An expected inflation of 2.30% used for this period.

Asset Class 1

The Plan’s expected return is weighted by the Plan’s expected cash flow. 371

City of Fontana, California
Notes to Financial Statements
June 30, 2024

75 Net OPEB Liability of the City

The components of the net OPEB liability of the City at June 30, 2024, were as follows:

Increase (Decrease)
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
Balance at June 30, 2023 44,028,993 $ 22,695,094 $ 21,333,899 $ Changes for the year
Service cost 420,907 - 420,907 Interest 2,561,247 - 2,561,247 Contributions - Employer- City's Contribution - 2,590,890 (2,590,890) Contributions - Employer- Implicit Subsidy - 934,000 (934,000) Net investment income - 3,645,250 (3,645,250) Benefit Payments (2,590,890) (2,590,890) - Implicit Subsidy Credit (934,000) (934,000) - Administrative expense - (36,018) 36,018 Net Changes (542,736) 3,609,232 (4,151,968) Balance at June 30, 2024 43,486,257 $ 26,304,326 $ 17,181,931 $

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost Trend Rates

The net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it was calculated using a discount rate that is one percentage point lower (5.00%) or one percentage point higher (7.00%) follows:

Current
1% Decrease Discount Rate 1% Increase
(5.00%) (6.00%) (7.00%)
Net OPEB liability 21,412,258 $ 17,181,931 $ 13,544,182 $

The net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it was calculated using a healthcare cost trend rate that is one percentage point lower (5.80%) or one percentage point higher (7.80%) follows:

Current
1% Decrease Discount Rate 1% Increase
(5.80%) (6.80%) (7.80%)
Net OPEB liability 13,005,703 $ 17,181,931 $ 22,063,778 $

372
City of Fontana, California
Notes to Financial Statements
June 30, 2024
76 Note 13 - Pensions
As of and for
the year ended June 30, 2024, the City’s pension plan had the following balances reported in the government-wide financial statements.

Safety Miscellaneous
Plan Plan Total
Net pension liability 134,002,270 $ 76,408,744$ 210,411,014$ Pension expense 21,061,913 13,975,274 35,037,187 Deferred outflows of resources 41,234,561 26,067,227 67,301,788 Deferred inflows of resources 61,772 438,172 499,944 P
lan Description
All qualified permanent and probationary employees are eligible to participate in the Local Government’s separate Safety (police and fire) and Miscellaneous (all other) Plans, an agent multiple employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). A full description of the pension plan regarding number of employees covered, benefit provisions, assumptions (for funding, but not accounting purposes), and membership information are listed in the Plan’s June 30, 2022, Annual Actuarial Valuation Report (funding valuation). Details of the benefits provided can be obtained in Appendix B of the actuarial valuation report. This report and CalPERS’ audited financial statements are publicly available reports that can be obtained at CalPERS’ website.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. The Plans’ provisions and benefits in effect at June 30, 2024, are summarized as follows:

Tier I Tier II Tier III
Prior to On or after After Prior to On or after
Hire Date July 1, 2011 July 1, 2011 January 1, 2011 July 1, 2011 July 1, 2011 Benefit formula 3% @ 50 3% @ 55 2.7% @ 57 2.5% @ 55 2% @ 62 Final Average Compensation Period Highest 1-year salary Final 3-year average Final 3-year average Highest 1-year salary Final 3-year average Benefit vesting schedule 5 yrs credited service 5 yrs credited service 5 yrs credited service 5 yrs credited service 5 yrs credited service Benefit payments Monthly Monthly Monthly Monthly Monthly Retirement age 50 and above 50 and above 50 and above 55 and above 55 and above Monthly benefit basis Benefit factor, years of Benefit factor, ye ars of Benefit factor, years of Benefit factor, years of Benefit fa ctor, years of service and final service and final service and final service and final service and final compensation compensation compensation compensation compensation Safety Miscellaneous
373

City of Fontana, California
Notes to Financial Statements
June 30, 2024

77 Employees Covered

As of the June 30, 2023, measurement date, the following employees were covered by the benefit terms for each Plan:

Safety Miscellaneous
Inactive employees or beneficiaries
currently receiving benefits 208 557
Inactive employees entitled to but
not yet receiving benefits 73 1013
Active employees 189 502
Total 470 2072

Contribution Description

Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions; payments made by the employer are paid from the General Fund of the City.

Actuarial Methods and Assumptions used to determine Total Pension Liability

The June 30, 2022, valuation was used to determine the June 30, 2023, total pension liability, based on the following actuarial methods and assumptions:

Actuarial Cost Method
Actuarial Assumptions
Discount Rate 6.90%
Inflation 2.30%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table1 Derived using CalPERS’ Membership Data for all funds Post Retirement Benefit Increase The lesser of contract COLA or 2.30% until Purchasing Power Protection
Allowance floor on purchasing power applies,

2.30% thereafter
Entry Age Actuarial Cost Method

1 The mortality table used was developed based on CalPERS’ specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post- retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021. The Experience Study report may be accessed on the CalPERS website at www.calpers.ca.gov under Forms and Publications. 374

City of Fontana, California
Notes to Financial Statements
June 30, 2024

78 Change of Assumptions

There were no assumption changes in 2023. Effective with the June 30, 2021, valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long- term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.

Discount Rate

The discount rate used to measure the total pension liability was 6.90 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Long-term Expected Rate of Return

The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points. The expected real rates of return by asset class are as follows:

Assumed Asset Real
Asset Class 1 Allocation Return 1, 2
Global Equity - Cap weighted 30.0% 4.54%
Global Equity - Non-Cap weighted 12.0 3.84
Private Equity 13.0 7.28
Treasury 5.0 0.27
Mortgage-backed Securities 5.0 0.5
Investment Grade Corporates 10.0 1.56
High Yield 5.0 2.27
Emerging Market Debt 5.0 2.48
Private Debt 5.0 3.57
Real Assets 15.0 3.21
Leverage (5.0) (0.59)
1 An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021 Asset Liability Management study.

375

City of Fontana, California
Notes to Financial Statements
June 30, 2024

79 Pension Plan Fiduciary Net Position

The plan fiduciary net position (assets) disclosed in the GASB report may differ from the plan assets reported in the actuarial valuation report due to several reasons. First, CalPERS must keep Reserves for Deficiencies and Fiduciary Self Insurance. These amounts are excluded for rate setting purposes in the actuarial valuation report while required to be included for GASB reporting purposes. In addition, differences may result from early ACFR closing and final reconciled reserves.

Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. These reports are publicly available reports that can be obtained at https://www.calpers.ca.gov/page/investments/about-investment-office/investment-financial- reports.

Liability, Expense and Deferred Outflows/Inflows

The components of the net pension liability at June 30, 2024, are as follows:

Total Pension Liability 644,425,967 $
Plan's Fiduciary Net Position 434,014,953
Net Pension Liability 210,411,014 $
Plan Fiduciary Net Position as a
Percentage of Total Pension Liability 67.35%

Pension Expense
At June 30, 2024, the City recognized pension expense for CalPERS of $35,037,187.

376

City of Fontana, California
Notes to Financial Statements
June 30, 2024

80 Changes in Net Pension Liability

The following table shows the changes in net pension liability recognized over the measurement period for the Safety plan:

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (c) = (a) - (b)
Balance at: 6/30/2022 (VD) 347,319,078 $ 215,438,515 $ 131,880,563 $ Changes Recognized for the Measurement Period
Service Cost 7,548,406 - 7,548,406 Interest on the Total Pension Liability 23,827,606 - 23,827,606 Changes of Benefit Terms 95,168 - 95,168 Differences between Expected and Actual Experience 1,753,953 - 1,753,953 Changes of Assumptions - - - Net Plan to Plan Resource Movement - - - Contributions from the Employer - 14,437,567 (14,437,567) Contributions from Employees - 3,243,260 (3,243,260) Net Investment Income - 13,581,022 (13,581,022) Benefit Payments, including Refunds of
Employee Contributions (15,229,563) (15,229,563) - Administrative Expense - (158,423) 158,423 Net Changes during 2022-23 17,995,570 15,873,863 2,121,707 Balance at: 6/30/2023 (MD) 365,314,648 $ 231,312,378 $ 134,002,270 $ Increase (Decrease)
The following table shows the changes in net pension liability recognized over the measurement period for the Miscellaneous plan:

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (c) = (a) - (b)
Balance at: 6/30/2022 (VD) 264,392,779 $ 191,847,509 $ 72,545,270 $ Changes Recognized for the Measurement Period
Service Cost 5,514,443 - 5,514,443 Interest on the Total Pension Liability 18,237,572 - 18,237,572 Differences between Expected and Actual Experience 3,021,811 - 3,021,811 Changes of Benefit Terms 336,962 - 336,962 Contributions from the Employer - 8,953,284 (8,953,284) Contributions from Employees - 2,532,144 (2,532,144) Net Investment Income - 11,902,962 (11,902,962) Benefit Payments, including Refunds of
Employee Contributions (12,392,248) (12,392,248) - Administrative Expense - (141,076) 141,076 Net Changes during 2022-23 14,718,540 10,855,066 3,863,474 Balance at: 6/30/2023 (MD) 279,111,319 $ 202,702,575 $ 76,408,744 $ Increase (Decrease)
377

City of Fontana, California
Notes to Financial Statements
June 30, 2024

81 Sensitivity of the Net Pension Liability to Changes in the Discount Rate

The following presents the net pension liability of the Plan as of the Measurement Date, calculated using the discount rate of 6.90 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is one percentage-point lower (5.90 percent) or one percentage-point higher (7.90 percent) than the current rate:

Discount Rate - 1% Current Discount Rate Discount Rate + 1% (5.90%) (6.90%) (7.90%)
Plan’s Net Pension Liability
Safety 187,272,573 $ 134,002,270 $ 90,676,816 $ Plan’s Net Pension Liability
Miscellaneous 116,810,263 $ 76,408,744 $ 43,510,074 $

Amortization of Deferred Outflows and Deferred Inflows of Resources

Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.

The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred inflows and deferred outflows to be recognized in future pension expense.

The amortization period differs depending on the source of the gain or loss:

Difference between projected 5 ye ar straight-line amortization and actual earnings
All other amounts Straight-line amortization over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired as of the beginning of the measurement period).

The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired).

The EARSL for the Safety Plan for the measurement period ending June 30, 2023, was 5.2 years, which was obtained by dividing the total service years of 2,444 (the sum of remaining service lifetimes of the active employees) by 470 (the total number of participants: active, inactive, and retired). Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

The EARSL for the Miscellaneous Plan for the measurement period ending June 30, 2023, was 3.0 years, which was obtained by the total service years of 6,132 (the sum of remaining service lifetimes of the active employees) by 2,072 (the total number of participants: active, inactive, and retired). Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund. 378

City of Fontana, California
Notes to Financial Statements
June 30, 2024

82 Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions

For the measurement period ending June 30, 2023 (the measurement date), the City of Fontana recognized a pension expense of $21,061,913 for the Safety Plan.

As of June 30, 2024, the City of Fontana reports other amounts for the Safety Plan as deferred outflow and deferred inflow of resources related to pensions as follows:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to
measurement date 18,083,424 $ - $
Differences between Expected and Actual
Experience 4,079,554 (61,772)
Changes of assumptions 8,790,089 -
Net difference between projected and actual earnings
on pensions plan investments 10,281,494 -
Total 41,234,561 $ (61,772) $

Employer contributions of $18,083,424 were made after the measurement date of the net pension liability but before the end of the fiscal year; these contributions are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2025.

Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Deferred
Outflows/(Inflows)
of Resources
2024 6,800,020 $
2025 4,769,029
2026 10,050,637
2027 1,402,221
2028 67,458
Thereafter -
Measurement Period
Ended June 30,

For the measurement period ending June 30, 2023 (the measurement date), the City of Fontana recognized a pension expense of $13,975,274 for the Miscellaneous Plan. 379

City of Fontana, California
Notes to Financial Statements
June 30, 2024

83 As of June 30, 2024, the City of Fontana reports other amounts for the Miscellaneous Plan as deferred outflow and deferred inflow of resources related to pensions as follows:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to
measurement date 11,412,285 $ - $
Differences between Expected and Actual
Experience 2,014,541 (438,172)
Changes of assumptions 3,531,044 -
Net difference between projected and actual earnings
on pensions plan investments 9,109,357 -
Total 26,067,227 $ (438,172) $

Employer contributions of $11,412,285, were made after the measurement date of the net pension liability but before the end of the fiscal year; these contributions are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2025.

Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Deferred
Outflows/(Inflows)
of Resources
2024 5,434,139 $
2025 2,245,775
2026 6,280,522
2027 256,334
2028 -
Thereafter -
Measurement Period
Ended June 30,

Note 14 - Public Agency Retirement Services

For some City employees (regular-part-time employees) that do not qualify for inclusion in the CalPERS pension plans administered by the City, the City offers an alternative plan, the Public Agency Retirement Services Alternate Retirement System Plan (PARS ARS). Employees are enrolled, on a voluntary basis, in this defined contribution plan; the plan requires a minimum contribution of 7.5% of the employee wages and are paid by the employees only. There is no annual expense to the City for this benefit.

380

City of Fontana, California
Notes to Financial Statements
June 30, 2024

84 Note 15 - Classification of Fund Balances

In the fund financial statements, government funds report the following fund balance classification:

Nonspendable include amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.

Restricted include amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors, or laws or regulations of other governments or (b) by law through constitutional provisions or enabling legislation.

Committed include amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest authority, the City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is resolution.

Assigned include amounts that are constrained by the government’s intent to be used for specific purposes but are neither restricted nor committed. The Chief Finance Officer is authorized to assign amounts to a specific purpose, which was established by the governing body in Administrative Policy # 20-32.

Unassigned include the residual amounts that have not been restricted, committed, or assigned to specific purposes.

The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount. In governmental funds other than the General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

An individual governmental fund could include nonspendable resources and amounts that are restricted or unrestricted (committed, assigned, or unassigned) or any combination of those classifications. Restricted amounts are to be considered spent when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available and committed, assigned, then unassigned amounts are considered to have been spent when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications can be used.

381

City of Fontana, California
Notes to Financial Statements
June 30, 2024

85 The details of the fund balances as of June 30, 2024, are presented below:

Fire Traffic Community Other
Protection Housing Economic Congestion Sewer Facilities Traffic Governmental General District Authority Stimulus Grants Relie f Expansion Districts Mitigation Funds Fund Balances
Nonspendable
Deposits 44,090 $ - $ - $ - $ 78,453$ - $ - $ - $ - $ 104,048$ Inventories 512,764 - - - - - - - - 849,705 Land held for resale - - - - - - - - - 11,565,365 Loan receivables 22,555,864 - - - - - - - - - Total nonspendable 23,112,718 - - - 78,453 - - - - 12,519,118 Restricted
Community facilities districts - - - - - - - 36,446,215 - 30,423,149 Community services - - - - - - - - - 482,252 Government-access channel 1,832,888 - - - - - - - - - Housing & community development - - 87,294,141 115,399 - - - - - 3,639,541

Lighting and landscaping - - - - - - - - - 4,758,702 Municipal Services Impact - - - - - - - - - 24,663,772 Public safety - 26,071,890 - - - - - - - 21,164,093 Transportation - - - - - 6,730,091 - - - - Traffic Mitigation and Safety - - - - - - - - 23,564,929 79,573 Solid waste mitigation - - - - - - - - - 6,640,556 Highway and Road Safety and Maintenance - - - - - - - - - 8,951,799 Air qualtiy - - - - - - - - - 986,850 Total restricted 1,832,888 26,071,890 87,294,141 115,399 - 6,730,091 - 36,446,215 23,564,929 101,790,287 Committed
Contingency Reserve 33,087,836 - - - - - - - - - Operating Contingency 3,000,000 - - - - - - - - - PERS Reserve 11,095,157 - - - - - - - - - Total committed 47,182,993 - - - - - - - - - Assigned
Capital projects 1,292,256 - - - - - 1,575,590 - - 204,728,925 Retiree benefit 2,430,775 - - - - - - - - - Animal Shelter JPA 800,000 - - - - - - - - - Future projects and commitments 750,000 - - - - - - - - - GASB 31 Gain 1,155,483 - - - - - - - - - Debt Service - - - - - - - - - 11,991 Total assigned 6,428,514 - - - - - 1,575,590 - - 204,740,916 Unassigned 25,491,914 - - - (7,924,880) - - - (3,557,113) Total fund balances 104,049,027 $ 26,071,890 $ 87,294,141 $ 115,399 $ (7,846,427) $ 6,730,091 $ 1,575,590 $ 36,446,215 $ 23,564,929 $ 315,493,208 $ Special Revenue Capital Project

Adequate reserve levels are a necessary component of the City’s overall financial management strategy and to provide for the orderly provision of services to the citizens of the City of Fontana. Those necessary components are as follows:

 Local disasters and other hardships or downturns in the local economy  Contingencies for unforeseen operating or capital needs

The balance of these components as of June 30, 2024, is $33,087,836 and is included in the committed fund balance in the General Fund.

382

City of Fontana, California
Notes to Financial Statements
June 30, 2024

86 Note 16 - Fontana Fire Protection District

The Fontana Fire Protection District (the District) was formed on July 1, 2008 pursuant to the State of California Health and Safety Code commencing with Section 13800, for the purpose of providing fire protection services.

The District is a component unit of the City of Fontana; the City of Fontana has oversight responsibility of the District determined by criteria such as financial interdependency, selection of governing authority and designation of management, budget control, ability to significantly influence operations, etc.

The accounts of the District have been included within the scope of the basic financial statement of the City because the City Council has financial accountability over the operations of the District. The following information is relative only to the District as a component unit, which is an integral part of the total reporting entity.

The District reports the following governmental funds:

The Fire Protection District Special Revenue Fund accounts for the cost of fire suppression, emergency medical, fire prevention and education services incurred by the District within the City’s Sphere of Influence.

The Fire Protection District CFD Special Revenue Fund accounts for the special taxes levied on property developed after January 2, 2001, to finance fire protection and suppression services within the Community Facilities District.

The Fire Protection District Capital Project Fund accounts for the money expended on capital improvements and equipment replacement for the District.

A. Cash and investments

As of June 30, 2024, the District reported $58,812,168 as cash and investments.

The District’s funds are pooled with the City of Fontana’s cash and investments in order to generate optimum interest income. Each fund’s share of the pooled cash account is separately accounted for, and investment income is allocated to all participating funds based on the relationship of their average daily cash balances to the total of the pooled cash and investments. Information regarding the authorized types of deposits and investments, the type of risks (i.e. credit, interest rate, custodial, etc.) and other disclosures associated with the City’s pooled cash and investment is included in Note 3.

383

City of Fontana, California
Notes to Financial Statements
June 30, 2024

87 B. Capital Assets

An analysis of capital assets as of June 30, 2024, follows:

Balance Balance
June 30, 2023 Increases Decreases June 30, 2024
Capital assets, not being depreciated
Land 1,122,000 $ 952,979 $ - $ 2,074,979$ Total capital assets, not being depreciated 1,122,000 952,979 - 2,074,979 Capital assets, being depreciated
Buildings and improvements 16,427,503 10,738,459 - 27,165,962 Machinery and equipment 3,045,224 77,032 - 3,122,256 Vehicles 12,340,122 741,358 - 13,081,480 Infrastructure 1,012,418 - - 1,012,418 32,825,267 11,556,849 - 44,382,116 Less accumulated depreciation for
Buildings and improvements (5,162,287) (603,881) - (5,766,168) Machinery and equipment (1,645,568) (250,617) - (1,896,185) Vehicles (8,447,440) (544,673) - (8,992,113) Infrastructure (306,428) (33,823) - (340,251) (15,561,723) (1,432,994) - (16,994,717) Total capital assets, being depreciated, net 17,263,544 10,123,855 - 27,387,399 Total Capital assets, net 18,385,544 $ 11,076,834 $ - $ 29,462,378$

Depreciation expense was charged to functions/programs of the primary government as follows: Governmental Activities:

Governmental Activities
Public safety - fire protection 1,432,994 $

C. Long-Term Debt

The District does not have any outstanding debt as of June 30, 2024.

384

City of Fontana, California
Notes to Financial Statements
June 30, 2024

88 D. Fund Balance

The district reports fund balances in accordance with the classifications consistent with the City, see Note 15 for more information on the types and descriptions of the fund balance classifications. The details of the fund balances as of June 30, 2024, are presented below:

Capital Project
Fire Fire Fire
Protection Protection Protection
District District CFD District Totals
Fund Balances
Restricted
Public safety 26,071,890 $ 4,913,899 $ - $ 30,985,789$ Assigned
Equipment replacement - - $37,904,324 37,904,324 Total fund balances 26,071,890 4,913,899 37,904,324 68,890,113 Special Revenue

E. Fire Protection Services Agreement

The District entered into a fire protection services agreement with the San Bernardino County Fire Protection District (County) effective July 1, 2018 for a period of twenty (20) years. The agreement calls for the County to provide to the District fire prevention, fire investigation, fire suppression, advance life support services, ambulance transportation service, hazardous materials, and rescue services. The District paid $42,903,405 to the County for these services during the fiscal year ending June 30, 2024. The County also provides various administrative duties including billing and collecting of advanced life support and ambulance transportation fees for the District. The District leased its real property, furniture and fixtures, and fire apparatus and equipment to the County for one dollar for the life of the contract. The agreement calls for the County to maintain insurance for workers compensation, comprehensive general and automobile.

The details of the contract expenses for the fiscal year ending June 30, 2024, are as follows:

Salaries and benefits 35,147,960 $
Services and supplies 4,594,001
Station expenses 1,760,804
Fire Prevention services 311,290
County contract management fee 1,524,291
CPI-U Adj (434,941)
Total contract expenses 42,903,405 $

385

City of Fontana, California
Notes to Financial Statements
June 30, 2024

89 Note 17 - Successor Agency Trust for Assets of Former Redevelopment Agency

On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provided for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Fontana that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit. In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012.

The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 10, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 2012- 001.

After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).

In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.

The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill. This review was completed October 2014 and identified $7,124,646 in unallowable transfers. The City has contended all unallowable transfers; however, the State Controller upholds its initial finding and has instructed the City to return the assets to the Successor Agency in a timely manner. As of June 30, 2024, the assets have not yet been returned to the State Controller.

Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to the City are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill. The City’s position on this issue is not a position of settled law and there is considerable legal uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would resolve this issue unfavorably to the City.

386

City of Fontana, California
Notes to Financial Statements
June 30, 2024

90 As of June 30, 2024, there is one obligation that has been denied by the State Department of Finance that is currently being contested through the California court system. The Jurupa Hills Owner Participation Agreement (OPA) has been disallowed due to insufficient documentation to support the outstanding obligation, inability to ever repay the entire debt and the opinion that the agreement appears contrary to public policy. In July 2016, the Courts ruled in favor of the Successor Agency; the State Department of Finance has filed an appeal to the ruling.

After the date of dissolution, the assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City.

Cash and investments

Cash and investments reported in the accompanying financial statements consisted of the following:

Cash and investments pooled with the City 778,183 $
Cash and investments with fiscal agent 19,713,721
20,491,904$

Loans Receivable

Loans receivable reported in the accompanying financial statements consist of the following:

1. A loan was issued for the Oleander Storm Drain on March 2003 in the amount of $850,429. The balance of the loan at June 30, 2024, was $850,429. The purpose of the loan was to assist the developer with infrastructure improvements. There is no set repayment schedule for this loan.

2. A loan was issued for the Chaffey College in February 2005 in the amount of $4,000,000. The balance of the loan at June 30, 2024, was $1,340,000. The purpose of the loan was to assist with the costs of expanding the campus located within the City of Fontana. This loan is scheduled to be repaid over a term of 30 years.

3. Various loans were issued for the San Gabriel Valley Water Company in 1988-1989 in the amount of $330,756. The balance at the loan at June 30, 2024, was $42,676. The loan represents the reimbursement of costs incurred by the Agency for construction of water infrastructure. This loan is scheduled to be repaid over a forty-year period.

387

City of Fontana, California
Notes to Financial Statements
June 30, 2024

91 Long-Term Debt

A description of long-term debt outstanding (excluding defeased debt) of the Successor Agency as of June 30, 2024, follows:

Amounts Amounts
Balance Balance Due Within Due in More
Fiduciary Activities June 30, 2023 Additions Retirements J une 30, 2024 One Year Than One Year Tax Allocation Bonds and Notes
2017 Tax Allocation Refunding Bonds 150,000,000$ - $ 11,770,000$ 138,230,000 $ 12,275,000 $ 125,955,000 $ 2018 Tax Allocation Refunding Bonds 19,235,000 - 3,480,000 15,755,000 3,655,000 12,100,000 Other Redevelopment Agency
Advances from City 26,905,578 - 1,543,885 25,361,693 1,729,151 23,632,542 Owner participation agreements 207,742,894 425,558 - 208,170,780 - 208,170,780 Total Redevelopment Agency 403,883,472$ 425,558 $ 16,793,885 $ 387,517,473 $ 17,659,151 $ 369,858,322 $ Unamortized bond premium 26,276,751 26,276,751
413,794,224$ 396,135,073 $

Tax Allocation Bonds

The Former Fontana Redevelopment Agency has issued the following Tax Allocation Bonds which are special obligations of the Successor Agency secured by pledged property tax revenues. The bonds are not a debt of the City and are not payable out of any funds or properties other than those of the Successor Agency.

2017 Tax Allocation Refunding Bonds

$208,125,000 of 2017 Tax Allocation Refunding Bonds were issued in November 2017. The bonds pay interest semi-annually at rates ranging from 1.50% to 3.00% and mature from October 2018 to October 2036. The proceeds were used to refinance various tax allocation bonds previously issued by the Former Redevelopment Agency of the City of Fontana.

Fiscal Year
Ending Principal Interest Total
2025 12,275,000$ 6,399,006 $ 18,674,006 $
2026 12,755,000 5,793,138 18,548,138
2027 13,380,000 5,158,500 18,538,500
2028 14,030,000 4,491,450 18,521,450
2029 13,945,000 3,801,325 17,746,325
2030-2034 63,620,000 9,909,000 73,529,000 2035-2037 8,225,000 792,750 9,017,750 Totals 138,230,000$ 36,345,169 $ 174,575,169 $
2017 Tax Allocation Refunding Bonds

388

City of Fontana, California
Notes to Financial Statements
June 30, 2024

92 2018 Tax Allocation Refunding Bonds

$31,580,000 of 2018 Tax Allocation Refunding Bonds were issued in July 2018. The bonds mature October 1, 2027, with an interest yield of 5.00 percent. The proceeds from the bonds will be used to refinance various tax allocation bonds previously issued by the Former Redevelopment Agency of the City of Fontana for the Jurupa Hills Project Area.

Fiscal Year
Ending Principal Interest Total
2024 3,655,000
$ 696,375 $ 4,351,375 $
2025 3,840,000 509,000 4,349,000
2026 4,030,000 312,250 4,342,250
2027 4,230,000 105,750 4,335,750
Totals 15,755,000$ 1,623,375 $ 17,378,375 $
2018 Tax Allocation Refunding Bonds

Long-Term Payables to the City of Fontana

The advances between the City and the Former Redevelopment Agency include the following:

1. A loan between the Agency and the City which resulted from the amendment to the 1991 Junior Lien Tax Allocation Bonds.

2. Advances between the City and the Agency for administrative and other costs.

Payable Under Jurupa Hills Owner Participation Agreement

The Agency has entered into an owner participation agreement (OPA) with Ten-Ninety, Ltd., a private land development partnership (the Participating Owner), relating to the Jurupa Hills Project Area. The OPA requires, among other things, the reimbursement by the Agency to the Participating Owner of costs incurred for certain infrastructure and other improvements. Costs advanced, which accrue interest at 15.5%, are reimbursed from, and limited to: (i) the tax increment revenue generated in the Southridge Village portion of the Jurupa Hills Project Area and (ii) certain fees and assessments collected from benefited property owners.

In January 1992, the City, Agency and Participating Owner entered into two agreements in further implementation of the development of Southridge Village; a Facilitation Agreement and an Amendment No. 3 to OPA and Composite OPA. On March 31, 1992, a judgment was entered by the San Bernardino County Superior Court validating the provisions of these two agreements and declaring them to be legally binding upon the parties.

The Facilitation Agreement provides for specific allocations of costs and responsibilities between the City and Participating Owner with respect to certain public works items and for the discharge of the Participating Owner’s obligations and responsibilities with respect to the infrastructure items for Phase I, II and III of Southridge Village.

389
City of Fontana, California
Notes to Financial Statements
June 30, 2024
93 Amendment No.
3 to OPA includes acknowledgment that the Participating Owner has completed its infrastructure obligations relating to the development of Southridge Village and provides for certain payments by the Participating Owner to the Agency and City, in order to mitigate certain negative fiscal impacts imposed by the development and continued existence of Southridge Village. As described in the agreements, the payments to the City and Agency will be in amounts equal to 35% of the residual tax increments and 50% of the assessments and other reimbursements to be paid to the Participating Owner as reimbursement for public infrastructure improvements installed by the Participating Owner.

The balance at June 30, 2024 does not include $792,082,611 of accumulated unpaid interest that is subject to the same limitations of reimbursement from tax increment revenue, fees and assessments as is the case for costs of construction advanced. The total reimbursement costs of the project are $208,168,452. This obligation has been disallowed by the State Department of Finance due to insufficient documentation to support the outstanding obligation, inability to ever repay the entire debt and the opinion that the agreement appears contrary to public policy. This determination is currently being challenged in the California court system by the Successor Agency. A hearing was held in July 2016, in which the courts ruled in favor of the Successor Agency.

Pledged Revenue
The Successor Agency pledged, as security for bonds issued, either directly or through the Financing Authority, a portion of tax increment revenue (including Low- and Moderate-Income Housing set-aside and pass through allocations) that it receives. The bonds issued were to provide financing for various capital projects, accomplish Low- and Moderate-Income Housing projects and to defease previously issued bonds. Assembly Bill 1X 26 provided that upon dissolution of the Redevelopment Agency, property taxes allocated to redevelopment agencies no longer are deemed tax increment but rather property tax revenues and will be allocated first to successor agencies to make payments on the indebtedness incurred by the dissolved redevelopment agency.

Total principal and interest remaining on the debt is $189,872,344 with annual debt service requirements as indicated above. For the current year, the total property tax revenue recognized by the Successor Agency for the payment of indebtedness incurred by the dissolved redevelopment agency was $35,224,588 and the debt service obligation on the bonds was $23,104,475.

Insurance
The Successor Agency is covered under the City of Fontana’s insurance policies. Therefore, the limitation and self-insured retentions applicable to the City also apply to the Successor Agency. Additional information as to coverage and self-insured retentions can be found in Note 9.

Commitments and Contingencies
At June 30, 2024, the Successor Agency was involved as a defendant in several lawsuits arising out of the ordinary conduct of its affairs. It is the opinion of management that settlements of these lawsuits, including losses for claims that are incurred but not reported, if any, will not have a material effect on the financial position of the Successor Agency.
390

City of Fontana, California
Notes to Financial Statements
June 30, 2024

94 Note 18 - Tax Abatement

The City occasionally enters into Operating Covenant Agreements (OCA) with local businesses as a mechanism to promote economic development in the City, retain business and create jobs. The City currently has the following OCA’s in which the City is granting a portion of sales tax revenues generated back to the retailer as an incentive to continue operating their business in the City:

An operating covenant agreement with a retailer of consumer products to retain their distribution center within the City for a period of no less than 20 years commencing December 15, 2015. The retention of the distribution center will generate substantial revenue, retain and create new jobs, revitalize the City and result in community and public improvements. The City agreed to refund, on a quarterly basis, 50% of sales tax revenues attributable to taxable sales above the first $50,000 in sales tax revenue received by the City within said quarter.

An operating covenant agreement with an automotive dealership to continue to operate their automobile sales business within the City for a period of up to 12 years or until $1,800,000 in sales tax revenue is refunded to the dealership commencing January 29, 2020. The operation of business has been determined to result in substantial benefits to the City and its citizens including the creation of new jobs, property tax revenues, sales tax revenues, etc. The City agreed to refund 50% of all sales tax revenue up to a maximum amount of $1,800,000 with an additional bonus payment of $240,000 for the dealership’s commencement of operations.

An operating covenant agreement with an automotive dealership to continue to operate their automobile sales business within the City for a period of up to 12 years or until $2,400,000 in sales tax revenue is refunded commencing September 15, 2021. The City has determined the continued operation of the business will result in significant new employment opportunities, property tax and sales tax revenues. The City agreed to refund 50% of all sales tax revenue per year up to a maximum amount of $2,400,000.

Note 19 - Restatements

Change within the Reporting Entity
During the fiscal year 2024, there was a change within the financial reporting entity which resulted in the Capital Reinvestment Fund and the Future Capital Projects Fund being reported as a non-major funds instead of as a major fund. Additionally, the Grants Fund and Traffic Congestion Relief Fund are being reported as major funds instead of a non-major funds. As such, beginning fund balance was reclassified between major and non-major funds. The effect of the changes to beginning fund balance are shown in the table below.

391

City of Fontana, California
Notes to Financial Statements
June 30, 2024

95 Correction of Error in Previously Issued Financial Statements During fiscal year 2024, the City determined that there were certain errors in amounts previously reported in the fiscal year 2023 financial statements resulting in a restatement of the beginning net position and fund balance. The corrections consist of the following:

(a) The City identified that there were assets within the City’s CIP balance that were not properly reported.

Accordingly, capital assets as of June 30, 2023, were overstated by $10,386,566, as shown in column (a) in the table below. The effect of the adjustment to Governmental Activities net position, as of July 1, 2023, is a decrease of $10,386,566.

(b) The City identified that there were rental revenues incorrectly recognized in the prior year of $196,985 and cash incorrectly recorded in the amount of $757,082 within the City’s Housing Authority Fund that required correction. Accordingly, fund balance as of June 30, 2023, was understated by $560,096, as shown in column (b) in the table below. The effect of the adjustment to Governmental Activities net position, as of July 1, 2023, is an increase of $560,096. The effect of the adjustment to the Housing Authority fund balance, as of July 1, 2023, is an increase of $560,096.

(c) The City identified that there was cash incorrectly recorded within the City’s Home Program Fund (Nonmajor Fund) that required correction. Accordingly, fund balance as of June 30, 2023 was overstated by $757,082, as shown in column (c) in the table below. The effect of the adjustment to Governmental Activities net position, as of July 1, 2023, is a decrease of $757,082. The effect of the adjustment to the Home Program fund balance, as of July 1, 2023, is a decrease of $757,082.

(d) The City identified that the City’s OPEB Trust was not recorded in accordance with GASB Statement No. 74 – Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. Accordingly, the OPEB Trust Fund activities were added to the fiduciary activities as of July 1, 2023 which resulted in a restatement of $22,695,094. The prior year was missing amounts related to cash and investments.

During fiscal year 2024, the changes within the reporting entity and corrections of error resulted in adjustments to and restatement of beginning net position and fund balance as follows:

Change within
July 1, 2023, Financial
As Previously Error Error Erro r Error Reporting July 1, 2023, Reported Correction (a) Correction (b) Corre ction (c) Correction (d) Entity As restated Government-Wide
Governmental Activities 1,091,572,382 $ (10,386,566) $ 560,096 $ (757,082) $ - $ - $ 1,080,988,830$ Governmental Funds
Housing Authority 85,876,784 $ - $ 560,096$ - $ - $ - $ 86,436,880$ Grants - New major fund - - - - - (1,122,218) (1,122,218) Traffic Congestion Relief- New major fund - - - - - 14,303,461 14,303,461 Nonmajor Funds 222,830,244 - - (757,082) - 54,817,051 276,890,213 Previously major fund- Capital Reinvestment 25,960,317 - - - - (25,960,317) - Previously major fund- Future Capital
Projects 42,037,977 - - - - (42,037,977) - Fiduciary Activities - Other Post-Employment
Benefits (OPEB) Trust - $ - $ - $ - $ 22,695,094$ - $ 22,695,094$

392

City of Fontana, California
Notes to Financial Statements
June 30, 2024

96 If these amounts had been properly recorded in the prior year, the change in net position and change in fund balance would have been adjusted as follows for the year ended June 30, 2023:

June 30, 2023,
As Previously Error Error Error Error June 30, 2023,
Reported Correction (a) Correction (b) C orrection (c) Correction (d) As restated Government-Wide
Governmental Activities 103,042,717 $ (31,718) $ 560,096 $ (757,082) $ - $ 102,814,013$ Governmental Funds
Housing Authority (283,161) $ - $ 560,096$ - $ - $ 276,935$ Nonmajor Fund- Home Program (79,870) - - (757,082) - (836,952) Fiduciary Activities -
Other Postemployment Benefits (OPEB) Trust - $ - $ - $ - $ 1,141,595$ 1,141,595 $

Note 20 - Subsequent Events

Issuance of Special Tax Bonds

After the fiscal year ended June 30, 2024, the City facilitated the issuance of three new Special Tax Bonds under the Mello-Roos Community Facilities District (CFD) program:

1. CFD 107: On July 25, 2024, Special Tax Bonds, Series 2024 were issued in the amount of $3,595,000 for Community Facilities District No. 107 (Highland) in order to provide financing for the public facilities development.

2. CFD 109: On October 24, 2024, Special Tax Bonds, Series 2024 were issued in the amount of $36,220,000 for Community Facilities District No. 109 (Narra Hills) in order to provide financing for the public facilities development.

3. CFD 112: On November 21, 2024, Special Tax Bonds, Series 2024 were issued in the amount of $30,790,000 for Community Facilities District No. 112 (The Gardens Phase One) in order to provide financing for the public facilities development.

The bonds are authorized pursuant to the MelloRoos Community Facilities Act of 1982 and are secured by and payable solely from the revenues of an annual special assessment tax levied against land within the Districts.

The bonds are not backed by the full faith and credit or taxing power of the City and do not constitute indebtedness of the City. The City is not liable for the bonds, but acts as an agent for the bondholders in collecting the assessments from property owners, forwarding the collections to bondholders and initiating foreclosure proceedings if necessary.

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394

Required Supplementary Information

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396

97 City of Fontana, California
Schedule of Changes in Net Position Liability and Related Ratios During the Measurement Period – Safety Plan
Last 10 Years

Measurement Period 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Total Pension Liability
Service Cost 7,548,406 $ 7,533,954 $ 6,559,973 $ 6,574,765 $ 6,391,012 $ 6,252,517 $ 6,181,410 $ 5,464,647 $ 5,255,619 $ 5,261,265 $ Interest 23,827,606 22,633,582 21,409,558 20,347,932 18,942,663 17,568,272 16,583,112 15,674,983 14,718,880 13,833,230 Changes of Benefit Terms 95,168 - - - - - - - - - Difference between Expected and Actual Experience 1,753,953 (99,208) 1,072,506 6,367,568 6,274,697 1,250,890 (544,846) 773,988 463,048 - Changes of Assumptions - 14,117,417 - - - (445,464) 15,075,525 - (3,940,129) - Benefit Payments, Including Refunds of Employee Contributions (15,229,563) (14,208,832) (13,563,503) (12,716,297) (11,561,706) (10,323,275) (9,330,793) (8,666,808) (8,043,006) (7,265,033) Net Change in Total Pension Liability 17,995,570 29,976,913 15,478,534 20,573,968 20,046,666 14,302,940 27,964,408 13,246,810 8,454,412 11,829,462 Total Pension Liability - Beginning 347,319,078 317,342,165 301,863,631 281,289,663 261,242,997 246,940,057 218,975,649 205,728,839 197,274,427 185,444,965 Total Pension Liability - Ending (a) 365,314,648 $ 347,319,078 $ 317,342,165 $ 301,863,631 $ 281,289,663 $ 261,242,997 $ 246,940,057 $ 218,975,649 $ 205,728,839 $ 197,274,427 $ Plan Fiduciary Net Position
Contributions - Employer 14,437,567 $ 13,170,539 $ 11,820,068 $ 10,500,692 $ 9,196,355 $ 8,215,736 $ 7,706,792 $ 6,985,270 $ 6,756,772 $ 6,213,039 $ Contributions - Employee 3,243,260 2,815,197 2,877,842 2,720,062 2,639,928 2,577,060 2,509,352 2,505,888 2,177,122 1,764,545 Net Investment Income 13,581,022 (17,840,625) 43,154,767 8,990,686 11,157,517 13,214,512 15,449,532 710,225 2,956,715 19,674,310 Benefit Payments, Including Refunds of Employee Contributions (15,229,563) (14,208,832) (13,563,503) (12,716,297) (11,561,706) (10,323,275) (9,330,793) (8,666,808) (8,043,006) (7,265,033) Other Changes in Net Fiduciary Position (158,423) (144,302) (187,346) (251,361) (118,778) (696,076) (203,553) (83,139) (153,538) - Net Change in Fiduciary Net Position 15,873,863 (16,208,023) 44,101,828 9,243,782 11,313,316 12,987,957 16,131,330 1,451,436 3,694,065 20,386,861 Plan Fiduciary Net Position - Beginning 215,438,515 231,646,538 187,544,710 178,300,928 166,987,612 153,999,655 137,868,325 136,416,889 132,722,824 112,335,963 Plan Fiduciary Net Position - Ending (b) 231,312,378 215,438,515 231,646,538 187,544,710 178,300,928 166,987,612 153,999,655 137,868,325 136,416,889 132,722,824 Plan Net Pension Liability - Ending (a) - (b) 134,002,270 $ 131,880,563 $ 85,695,627 $ 114,318,921 $ 102,988,735 $ 94,255,385 $ 92,940,402 $ 81,107,324 $ 69,311,950 $ 64,551,603 $ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 63.32% 62.03% 73.00% 62.13% 63.39% 63.92% 62.36% 62.96% 66.31 % 67.28% Covered Payroll 25,478,199 24,976,011 23,795,599 23,158,734 22,436,218 21,782,736 21,411,929 21,176,697 20,121,052 19,360,681 Plan Net Pension Liability as a Percentage of Covered Payroll 525.95% 528.03% 360.13% 493.63% 459.03% 432.71% 434.06% 383.00% 344.47% 333 .42% Notes to Schedule:

Benefit Changes: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on or after July 1, 2023. The impact, if any, is included in the changes of benefit terms.

Changes of Assumptions: There were no assumption changes in 2023. Effective with the June 30, 2021 valuation date (June 30, 2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through June 30, 2016, and 7.50% for measurement date June 30, 2014.

397

98 City of Fontana, California
Schedule of Changes in Net Position Liability and Related Ratios During the Measurement Period – Miscellaneous Plan
Last 10 Years

Measurement Period 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Total Pension Liability
Service Cost 5,514,443 $ 5,312,666 $ 4,943,305 $ 5,099,318 $ 5,057,352 $ 4,814,030 $ 4,788,249 $ 4,194,877 $ 4,254,965 $ 4,004,767 $ Interest 18,237,572 17,253,263 16,462,337 15,725,500 14,869,142 13,725,324 13,067,481 12,382,291 11,767,900 11,147,316 Changes of Benefit Terms 336,962 - - - - - - - - - Difference between Expected and Actual Experience 3,021,811 (1,093,834) (800,611) 629,230 5,210,993 (556,946) (1,186,594) (1,811,514) (1,027,499) - Changes of Assumptions - 9,951,124 - - - (972,809) 11,708,939 - (3,097,256) - Benefit Payments, Including Refunds of Employee Contributions (12,392,248) (11,128,218) (10,157,377) (9,124,186) (8,075,186) (7,673,900) (6,602,614) (6,385,882) (5,914,227) (5,994,855) Net Change in Total Pension Liability 14,718,540 20,295,001 10,447,654 12,329,862 17,062,301 9,335,699 21,775,461 8,379,772 5,983,883 9,157,228 Total Pension Liability - Beginning 264,392,779 244,097,778 233,650,124 221,320,262 204,257,961 194,922,262 173,146,801 164,767,029 158,783,146 149,625,918 Total Pension Liability - Ending (a) 279,111,319 $ 264,392,779 $ 244,097,778 $ 233,650,124 $ 221,320,262 $ 204,257,961 $ 194,922,262 $ 173,146,801 $ 164,767,029 $ 158,783,146 $ Plan Fiduciary Net Position
Net Plan to Plan Resource Movement - $ - $ - $ - $ - $ (354)$ 13,206 $ - $ - $ - $ Contributions - Employer 8,953,284 7,805,249 7,329,666 6,606,745 5,841,667 5,081,435 4,478,806 4,452,429 3,868,104 3,657,678 Contributions - Employee 2,532,144 2,123,002 2,383,713 2,313,683 2,369,932 2,238,093 2,148,688 2,157,198 2,068,784 2,016,250 Net Investment Income 11,902,962 (15,769,024) 38,806,647 8,280,112 10,133,426 12,059,314 14,325,541 622,155 2,781,662 18,466,862 Benefit Payments, Including Refunds of Employee Contributions (12,392,248) (11,128,218) (10,157,377) (9,124,186) (8,075,186) (7,673,900) (6,602,614) (6,385,882) (5,914,227) (5,994,855) Other Changes in Net Fiduciary Position (141,076) (130,161) (170,573) (229,660) (108,649) (640,045) (188,255) (77,240) (142,590) - Net Change in Fiduciary Net Position 10,855,066 (17,099,152) 38,192,076 7,846,694 10,161,190 11,064,543 14,175,372 768,660 2,661,733 18,145,935 Plan Fiduciary Net Position - Beginning 191,847,509 208,946,661 170,754,585 162,907,891 152,746,701 141,682,158 127,506,786 126,738,126 124,076,393 105,930,458 Plan Fiduciary Net Position - Ending (b) 202,702,575 191,847,509 208,946,661 170,754,585 162,907,891 152,746,701 141,682,158 127,506,786 126,738,126 124,076,393 Plan Net Pension Liability - Ending (a) - (b) 76,408,744 $ 72,545,270 $ 35,151,117 $ 62,895,539 $ 58,412,371 $ 51,511,260 $ 53,240,104 $ 45,640,015 $ 38,028,903 $ 34,706,753 $ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 72.62% 72.56% 85.60% 73.08% 73.61% 74.78% 72.69% 73.64% 76.92 % 78.14% Covered Payroll 34,201,914 31,672,556 32,584,261 31,712,176 30,080,386 29,204,258 28,947,762 28,347,600 28,221,562 25,050,147 Plan Net Pension Liability as a Percentage of Covered Payroll 223.40% 229.05% 107.88% 198.33% 194. 19% 176.38% 183.92% 161.00% 134.75% 138 .55% the total service years of 6,132 (the sum of remaining service lifetimes of the active employees) by 2,072 (the total number of participants: active, inactive, and retired).

Notes to Schedule:

Benefit Changes: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on or after July 1, 2023. The impact, if any, is included in the changes of benefit terms. accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term marke accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through June 30, 2016, and 7.50% for measurement date June 30, 2014.

398
99 City of Fontana, California
Schedule of Plan Contributions – Safety Plan
Last 10 Years
Fiscal Year 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Actuarially Determined Contribution 15,754,270$ 14,423,033$ 13,332,172$ 11,820,068$ 10,500,692$ 9,196,355$ 8,215,736$ 7,706,792$ 6,985,270$ 6,756,772$ Contributions in Relation to the
Actuarially Determined Contribution (18,083,424) (14,423,033) (13,332,172) (11,820,068) (10,500,692) (9,132,884) (8,215,736) (7,706,792) (6,985,270) (6,756,772) Contribution Deficiency (Excess) (2,329,154)$ -$ -$ -$ -$ 63,471$
-$ -$
-$
-$

Covered Payroll 22,955,821$ 25,478,199$ 24,976,011$ 23,795,599$ 23,158,734$ 22,436,218$ 21,782,736$ 21,411,929$ 21,176,697$ 20,121,052$ Contributions as a Percentage of
Covered Payroll 68.63% 56.61% 53.38% 49.67 % 45.34% 40.99% 37.72% 35.99% 32.99% 33.58% Notes to Schedule:

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were from the June 30, 2020 public agency valuations.

Actuarial Cost Method Entry Age Actuarial Cost Method
Amortization Method/Period For details, see June 30, 2020 Funding Valuation Report Asset Valuation Method Actuarial Value of Assets. For details, see June 30, 2020 Funding Valuation Report.

Inflation 2.50%
Salary Increases Varies by Entry Age and Service
Payroll Growth 2.75%
Investment Rate of Return 7.00% Net of Pension Plan Investment Expenses, including Inflation.

Retirement Age The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

Mortality The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality using 90% of Scale MP-2016 published by the Society of Actuaries. 399

100
City of Fontana, California
Schedule of Plan Contributions – Miscellaneous Plan
Last 10 Years

Fiscal Year 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Actuarially Determined Contribution 9,859,516$ 8,960,523 $ 7,920,425 $ 7,329,666 $ 6,606,745 $ 5,841,667 $ 5,081,435 $ 4,478,806 $ 4,452,429 $ 3,868,104 $ Contributions in Relation to the
Actuarially Determined Contribution (11,412,285) (8,960,523) (7,920,425) (7,329,666) (6,606,745) (5,841,667) (5,081,435) (4,478,806) (4,452,429) (3,868,104) Contribution Deficiency (Excess) (1,552,769)$ - $ - $ - $ - $ - $ - $ - $ - $ - $ Covered Payroll 37,365,047 34,201,914 31,672,556 32,584,261 31,712,176 30,080,386 29,204,258 28,947,762 28,347,600 28,221,562 Contributions as a Percentage of 26.39% 26. 20% 25.01% 22.49% 20.83% 19.42% 17.40% 15.47% 15.71% 13.71% Covered Payroll
Notes to Schedule:

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were from the June 30, 2020 public agency valuations.

Actuarial Cost Method Entry Age Actuarial Cost Method
Amortization Method/Period F or details, see June 30, 2020 Funding Valuation Report Asset Valuation Method Actuarial Value of Assets. For details, see June 30, 2020 Funding Valuation Report.

Inflation 2.50%
Salary Increases Varies by Entry Age and Service
Payroll Growth 2.75%
Investment Rate of Return 7.00% Net of Pension Plan Investment Expenses, including Inflation.

Retirement Age The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

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