Agenda packet — Fontana City Council, March 10, 2026 (part 2 of 2)

RESOLUTION NO. 2026-012

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

CALIFORNIA OF INTENTION TO ESTABLISH A COMMUNITY

FACILITIES DISTRICT PROPOSED TO BE NAMED CITY OF FONTANA COMMUNITY FACILITIES DISTRICT NO. 117 (SOUTHRIDGE) AND TO

AUTHORIZE THE LEVY OF A SPECIAL TAX THEREIN
WHEREAS, Section 53318 of the Mello -Roos Community Facilit ies Act of 1982 (the “Act”) provides that proceedings for the establishment of a community facilities district shall be instituted by a legislative body of a local agency when a petition requesting the institution of the proceedings signed by the owners of not less than 10% of the area of land proposed to be included within the community facilities district and not proposed to be exempt from the special tax, describing the boundaries of the territory that is proposed for inclusion in the area and specifying the type or types of facilities and services to be financed by the community facilities district is filed with the clerk of the legislative body;
WHEREAS, Section 53318 of the Act further provides that such a petition may not be acted upon until the payme nt of a fee in an amount that the legislative body determines, within 45 days of receiving such petition, is sufficient to compensate the legislative body for all costs incurred in conducting proceedings to create a community facilities district pursuant to the Act;
WHEREAS, the City Council (the “City Council”) of the City of Fontana (the “City”) has received from KB HOME Cal Management Services LLC (the “Landowner”), a written petition (the “Petition”), requesting the City Council to institute proceedings pursuant to the Act to establish a community facilities district (the “Community Facilities District”) and to authorize the Community Facilities District to levy a special tax within the Community Facilities District, describing the boundaries of the terr itory that is proposed for inclusion in the Community Facilities District and specifying the types of facilities and services to be financed by the Community Facilities District; WHEREAS, in connection with such request to institute proceedings to establis h the Community Facilities District, the Landowner paid a fee in an amount that the City Council has determined is sufficient to compensate the City Council for all cost incurred in conducting proceedings to create the Community Facilities District pursuan t to the Act;
WHEREAS, the Landowner has represented and warranted to the City Council that the Landowner is the owner of 100% of the area of land proposed to be included within the Community Facilities District and not proposed to be exempt from the special tax;
WHEREAS, Section 53314.9 of the Act provides that, at any time either before or after the formation of a community facilities district, the legislative body may accept 153

Resolution No. 2026-012

Page 2 of 6 ends

advances of funds from an y source, including, but not limited to, private persons or private entities and may provide, by resolution, for the use of those funds for any authorized purpose, including, but not limited to, paying any cost incurred by the local agency in creating a community facilities district;
WHEREAS, Section 53314.9 of the Act further provides that the legislative body may enter into an agreement, by resolution, with the person or entity advancing the funds, to repay all or a portion of the funds advanced, as determined by the legislative body, with or without interest, under all the following conditions: (a) the proposal to repay the funds is included in both the resolution of intention to establish a community facilities district adopted pursuant to Section 5 3321 of the Act and in the resolution of formation to establish a community facilities district pursuant to Section 53325.1 of the Act, (b) any proposed special tax is approved by the qualified electors of the community facilities district pursuant to the Act, and (c) any agreement shall specify that if the qualified electors of the community facilities district do not approve the proposed special tax, the local agency shall return any funds which have not been committed for any authorized purpose by the ti me of the election to the person or entity advancing the funds;
WHEREAS, the City and the Landowner have entered into the Deposit and Reimbursement Agreement, dated as of January 1, 2025 (the “Deposit Agreement”), which provides for the advancement of fund s by the Landowner to be used to pay costs incurred in creating the Community Facilities District and the incurrence of bonded indebtedness thereby, and provides for the repayment to the Landowner of such funds advanced, without interest, from the proceeds of any such bonded indebtedness incurred by the Community Facilities District; and
WHEREAS, the City desires to include in this Resolution, in accordance with Section 53314.9 of the Act, the proposal to repay funds pursuant to the Deposit Agreement;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fontana, California as follows:

Section 1. The foregoing recitals are true and correct, and the City Council so finds and determines.

Section 2. The City Council hereby finds that the Petiti on is signed by the landowners owning the requisite area of land proposed to be included within the Community Facilities District and not proposed to be exempt from the Special Tax.

Section 3. The City Council proposes to establish the Community Facilities District under the terms of the Act. The boundaries of the territory proposed for inclusion in the Community Facilities District are described in the map showing the proposed Community Facilities District (the “Boundary Map”) on file in the office of the City Clerk of the City (the “City Clerk”), a copy of which is attached hereto as Exhibit A, which boundaries are hereby preliminarily approved and to which map reference is hereby 154

Resolution No. 2026-012

Page 3 of 6 ends

made for further particulars. The City Clerk is hereby directed to sign the original Boundary Map and record, or cause to be recorded, the Boundary Map with all proper endorsements thereon in the office of the San Bernardino County Recorder within 15 days of the date of adoption of this Resolution, all as required by Section 3111 of the California Streets and Highways Code.

Section 4. The name proposed for the Community Facilities District is “City of Fontana Community Facilities District No. 117 (Southridge)”.

Section 5. The public facilities (the “Facilities”) proposed to be fina nced by the Community Facilities District pursuant to the Act are described under the caption “Facilities” on Exhibit B hereto, which is by this reference incorporated herein. Those Facilities proposed to be purchased as completed public facilities are identified under the caption “Facilities to be Purchased” on Exhibit B hereto. The services (the “Services”) proposed to be financed by the Community Facilities District pursuant to the Act are described under the caption “Services” on Exhibit B hereto. Th e incidental expenses proposed to be incurred are identified under the caption “Incidental Expenses” on Exhibit B hereto. All or any portion of the Facilities may be financed through a financing plan, including, but not limited to, a lease, lease -purchase or installment-purchase arrangement.

Section 6. The City Council proposes that, except where funds are otherwise available, the Community Facilities District be authorized to annually levy within the Community Facilities District a special tax (the “Special Tax”) sufficient to pay for all Facilities and Services, secured by recordation of a continuing lien against all nonexempt real property in the Community Facilities District. The rate, method of apportionment and manner of collection of the Specia l Tax in sufficient detail to allow each landowner or resident within the proposed Community Facilities District to estimate the maximum amount that he or she will have to pay, is specified in the Rate and Method of Apportionment of Special Tax (the “Rate and Method”) attached hereto as Exhibit C, which is by this reference incorporated herein. The conditions under which the obligation to pay the Special Tax to be levied to pay for Facilities may be prepaid and permanently satisfied are specified in the Rate and Method. The Special Tax will be collected in the same manner as ordinary ad valorem property taxes or in such other manner as the City Council shall determine, including direct billing of the affected property owners.

Section 7. The Special Tax may only finance the Services to the extent that they are in addition to those provided in the territory of the Community Facilities District before the Community Facilities District is created. The Services may not supplant services already available within th at territory when the Community Facilities District is created. Bonds of the Community Facilities District may not be issued to fund any of the Services.

Section 8. The tax year after which no further Special Tax to pay for Facilities shall be levied again st any parcel used for private residential purposes is specified in the Rate and Method. Under no circumstances shall the Special Tax to pay for Facilities 155

Resolution No. 2026-012

Page 4 of 6 ends

in any fiscal year against any parcel used for private residential purposes be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the Community Facilities District by more than 10% above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults. For purposes of this paragraph, a parcel shall be considered “used for private residential purposes” not later than the date on which an occupancy permit for private residential use is issued. The Special Tax to pay for Services will be levied in perpetuity, as provided in the Rate and Method.

Section 9. Pursuant to Section 53344.1 of the Act, the City Council hereby reserves to itself the right and authority to allow any interested owner of property within the Community Facilities District, subje ct to the provisions of said Section 53344.1 and to those conditions as it may impose, and any applicable prepayment penalties as prescribed in the bond indenture or comparable instrument or document, to tender to the Community Facilities District treasure r in full payment or part payment of any installment of the Special Tax or the interest or penalties thereon that may be due or delinquent, but for which a bill has been received, any bond or other obligation secured thereby, the bond or other obligation to be taken at par and credit to be given for the accrued interest shown thereby computed to the date of tender.

Section 10. The City Council hereby fixes Tuesday, April 14, 2026, at 2:00 p.m., or as soon thereafter as the City Council may reach the matter , at 8437 Sierra Avenue, Fontana, California, as the time and place when and where the City Council will conduct a public hearing on the establishment of the Community Facilities District; provided, that, in the event the April 14, 2026 City Council meeting is held via teleconference and/or videoconference only, the means by which the public may observe such public hearing and offer public comment shall be prescribed in the notice and agenda for such City Council meeting.

Section 11. The City Clerk is hereby directed to publish, or cause to be published, a notice of said public hearing one time in a newspaper of general circulation published in the area of the proposed Community Facilities District. Publication of said notice shall be completed at leas t seven days prior to the date herein fixed for said public hearing. Said notice shall contain all of the information prescribed by Section 53322 of the Act.

Section 12. The authorization to levy the Special Tax shall be submitted to the qualified electors of the Community Facilities District at a special election. The proposed voting procedure shall be a vote by the landowners in the Community Facilities District conducted by mail or hand -delivered ballots, with each owner having one vote for each acre or portion of an acre such owner owns in the Community Facilities District.

Section 13. Each officer of the City who is or will be responsible for providing one or more of the proposed types of Facilities or Services is hereby directed to study, or cause to be studied, the proposed Community Facilities District and, at or before said public hearing, file a report with the City Council containing a brief description of the Facilities and Services by type that will in his or her opinion be required to adequately 156

Resolution No. 2026-012

Page 5 of 6 ends

meet the needs of the Community Facilities District, and his or her estimate of the cost of providing the Facilities and Services. Such officers are hereby also directed to estimate the fair and reasonable cost of the Facilities proposed to be purchased a s completed public facilities and of the incidental expenses proposed to be paid. Such report shall be made a part of the record of said public hearing.

Section 14. The Landowner has heretofore advanced certain funds, and may advance additional funds, that have been or may be used to pay costs incurred in connection with the creation of the Community Facilities District and the incurrence of bonded indebtedness thereby. The City Council proposes to repay all or a portion of such funds so advanced, without i nterest, solely from the proceeds of such bonded indebtedness, pursuant to the Deposit Agreement. The Deposit Agreement is hereby incorporated herein as though set forth in full herein.

Section 15. All actions heretofore taken by the officers, employees and agents of the City with respect to the establishment of the Community Facilities District, or in connection with or related to any of the matters referred to herein, are hereby approved, confirmed and ratified.

Section 16. The officers, employees and agents of the City are hereby authorized and directed to take all actions and do all things that they, or any of them, may deem necessary desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof.

Section 17. This Resolution shall take effect immediately upon its adoption.

APPROVED AND ADOPTED this 10th day of March, 2026.

READ AND APPROVED AS TO LEGAL FORM:

____________________________________
City Attorney

157

Resolution No. 2026-012

Page 6 of 6 ends

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 of said City at a regular meeting thereof, held on the 10th day of March 2026, 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

158

A-1
4138-7201-1870.3

EXHIBIT A

BOUNDARY MAP

159
160

B-1
4138-7201-1870.3

EXHIBIT B

FACILITIES, SERVICES AND INCIDENTAL EXPENSES
Facilities
The types of public facilities to be financed by the Comm unity Facilities District are streets, including grading, paving, curbs and gutters, sidewalks, st reet signalization and signage, street lights and parkway and landscaping rela ted thereto, sewers, stor m drains, flood control facilities, fire protection facilities, police faci lities, public facilities, library facilities, water distribution, treatment and storag e facilities, dry utilities incl uding natural gas electricity and telecommunications, and park and recreation facili ties including trails and pathways, and land, landscaping, rights-of-way and ea sements necessary for any of su ch facilities and incidental expenses.

Facilities to be Purchased
The types of public facilities to be purchased as completed facilities are streets, including grading, paving, curbs and gutters, sidewalks, str eet signalization and signa ge, street lights and parkway and landscaping re lated thereto, sewers, st orm drains, water dist ribution, treatment and storage facilities, dry utilities including natural gas electricity and telecommunications, and park and recreation facilities includ ing trails and pathways, and land, landscaping, rights-of-way and easements necessary for any of such facilities and incidental expenses.

Services
The types of City services to be financed by the Community Facilities District are fire protection and suppression services , maintenance and lighting of pa rks, parkways, streets, roads and open space, flood and storm protection services and maintenance and operation of any real property or other tangible property with an estimated useful life of five or more years that is owned by the City.

Incidental Expenses
The incidental expenses proposed to be incurred include the following:
(a) the cost of planning and designing public facilities to be financed, including the cost of environmental evaluations of those facilities; (b) the costs associated with the creation of the Community Facilities District, issuance of bonds, determination of the amount of taxes, coll ection of taxes, payment of taxes, or costs otherwise incurred in order to carry out the authorized purposes of the Community Facilities District; and
(c) any other expenses incidental to the construction, completion, and inspection of the authorized work.
161

C-1
4138-7201-1870.3

EXHIBIT C

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX

162

City of Fontana January 30, 2026
Community Facilities District No. 117 (Southridge) Page 1

RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 117 (SOUTHRIDGE)

CITY OF FONTANA, COUNTY OF SAN BERNARDINO

STATE OF CALIFONIA

A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels of Taxable Property in City of Fontana Community Facilities District No . 117 (Southridge) ("CFD No. 117") and collected each Fiscal Year commencing in Fiscal Yea r 2026-2027, in an amount determined by the City Council of the City of Fontana, through th e application of the Rate and Method of Apportionment as described below. All of the real property in CFD No. 117, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre" or "Acreage" means the land area expressed in acres of an Asses sor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded County map or the land area calculated to the reaso nable satisfaction of the CFD Administrator using the boundaries set forth on such map or plan. For residential dwelling units within a condominium plan, the Acres applicable to each resi dential dwelling unit shall be determined by dividing (i) the Acres of the underlying lot or par cel on which the residential dwelling unit is constructed or to be constructed, by (ii) the total number of residential dwelling units constructed or to be constructed on such lot or parcel. The sq uare footage of an Assessor’s Parcel is equal to the Acreage of such parcel multiplied by 43,560.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 (commencing with Section 53311) of the California Government Code. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 117, including but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecti ng the Special Taxes (whether by the County or otherwise); the costs of remitting the Special Taxe s to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of t he duties required of it under the Indenture; the costs to the City, CFD No. 117 or any designee ther eof of complying with arbitrage rebate requirements with respect to the Special Tax and CFD No. 117 Bonds; the costs to the City, CFD No. 117 or any designee thereof of complying with disclosure requirements of the City, CFD No. 117 or obligated persons associated with applicable federal and state securities laws and the Act; the costs associated with preparing Special Tax dis closure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 117, or any designee thereof related to the reduction of the Assigned Facilities Special Tax and Backup Facilities Special Tax in accordance with Section C.1 herein; the costs of the City, CFD No. 117 or any designee thereof related to an appeal of the Special Tax; and the Ci ty’s annual administration fees and third party expenses related to CFD No. 117 Bonds. Administrat ive Expenses shall also include amounts estimated or advanced by the City or CFD No. 117 fo r any other administrative purposes of CFD 163

City of Fontana January 30, 2026
Community Facilities District No. 117 (Southridge) Page 2 No. 117, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Assessor" means the Assessor of the County.
"Assessor's Parcel" means a lot or parcel to which an Assessor’s parce l number is assigned as determined from an Assessor’s Parcel Map or the applicable assessment roll. "Assessor's Parcel Map" means an official map of the Assessor designating parcels by Assessor’s Parcel number.
"Assigned Facilities Special Tax" means the applicable Facilities Special Tax for (i) Residential Property as determined in accordance with Section C .1.a.(2) herein, and (ii) Non-Residential Property as determined in accordance with Section C.1.a.(3) herein. "Authorized Facilities" means those facilities eligible to be funded by CFD No. 117. "Authorized Services" means those services eligible to be funded by CFD No. 117 in accordance with the Act, namely, fire protection and suppression services, maintenance and lighting of parks, parkways, streets, roads and open space, flood and storm protection services and maintenance and operation of any real property or other tangible pr operty with an estimated useful life of five or more years that is owned by the City.
"Backup Facilities Special Tax" means the Facilities Special Tax applicable to eac h Assessor's Parcel of Developed Property, as determined in accordance with Section C.1.a.(4) herein. "Buildout" means, for CFD No. 117, that all expected building permits for residential dwelling units and/or non-residential development to be constructed within CFD No. 117 have been issued, as determined by the CFD Administrator.
"CFD Administrator" means an official of the City, or designee thereof , responsible for determining the Special Tax Requirement for Facilit ies and the Special Tax Requirement for Services, providing for the levy and collection of the Special Taxes, and performing other duties as set forth herein.
"CFD No. 117" means City of Fontana Community Facilities District No. 117 (Southridge). "CFD No. 117 Bonds" means any bonds or other debt (as defined in Section 53317(d) of the Act), whether in one or more series, issued by CFD No. 11 7 and secured by the Facilities Special Tax levy on property within the boundaries of CFD No. 117 under the Act. "City" means the City of Fontana, California.
"Contractual Impositions" means (a) a voluntary contractual assessment established and levied on an Assessor’s Parcel pursuant to Chapter 29 of P art 3 of Division 7 of the California Streets and Highways Code (commencing with Section 5898.10 et seq. ), as amended from time to time, (b) a special tax established and levied on an Assessor’s Parcel pursuant to Section 53328.1 of the California Government Code and related provisions of the Act, as amended from time to time, and (c) any other fee, charge, tax or assessment establ ished and levied on an individual Assessor’s Parcel pursuant to a contractual agreement or other voluntary consent by the owner thereof. "Council" means the City Council of the City acting as the legislative body of CFD No. 117. "County" means the County of San Bernardino.
164

City of Fontana January 30, 2026
Community Facilities District No. 117 (Southridge) Page 3 "Developed Property" means, for each Fiscal Year, (i) with respect to the Facilities Special Tax, all Taxable Property, exclusive of Taxable Public P roperty and Taxable Property Owner Association Property, for which a building permit for new construction, other than the construction of a garage, parking lot, or parking structure, was issued after January 1, 2026 and on or before May 1 of the Fiscal Year preceding the Fiscal Year for which the Facilities Special Taxes are being levied, and (ii) with respect to the Services Special Tax, all Taxable Property, exclusive of Taxable Public Property and Taxable Property Owner Associat ion Property, (a) for which the Final Residential Subdivision was recorded prior to the Fiscal Year for which the Services Special Taxes are being levied, or (b) for which a building permit has been issued with respect to Non-Residential Property on or before May 1 of the Fiscal Year prec eding the Fiscal Year for which the Services Special Taxes are being levied.
"Facilities Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property within CFD No. 117 to fund the Special Tax Requirement for Facilities, as set forth in Section C.1 herein.
"Final Residential Subdivision" means a Final Subdivision that creates individual lots for which building permits may be issued for residential dwel ling units without further subdivision of such property.
"Final Subdivision" means (i) a subdivision of property by recordation of a final map, parcel map, or lot line adjustment approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq. ) that creates individual lots or parcels for which building permits may be issued, or (ii) for condominiums, a final map approved by the City and a condominium plan recorded pursuant to California Ci vil Code Section 4285 that creates an individual lot(s) for which a building permit(s) ma y be issued without further subdivision. The term "Final Subdivision" shall not include any Asse ssor’s Parcel Map or subdivision map or portion thereof that does not create individual lot s for which a building permit may be issued, including Assessor’s Parcels that are designated as remainder parcels. Notwithstanding the above, a condominium plan for which one or more building p ermits have been issued, but no individual lots have been created for such building permits, s hall be considered a Final Subdivision, and the portion of the condominium plan for which build ing permits have been issued shall be defined as Developed Property.
"Fiscal Year" means the period starting July 1 and ending on the following June 30. "Indenture" means the indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which CFD No. 117 Bonds are issued, as modified, amended and/or supplemented from time to time.
"Land Use Class" means any of the classes listed in Table 1 or Table 2 herein. "Lower Income Households Welfare Exemption Property " means, for each Fiscal Year, an Assessor’s Parcel within the boundaries of CFD No. 117 that is subject to a welfare exemption under subdivision (g) of Section 214 of the Califor nia Revenue and Taxation Code (or any successor statute), as indicated in the County’s as sessment roll finalized as of the last preceding January 1.
"Maximum Facilities Special Tax" means the maximum Facilities Special Tax, determin ed in accordance with Section C.1 herein, that can be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
165

City of Fontana January 30, 2026
Community Facilities District No. 117 (Southridge) Page 4 "Maximum Services Special Tax" means the maximum Services Special Tax, determined in accordance with Section C.2 herein, that can be levied in any Fiscal Year on any Assessor’s Parcel of Developed Property.
"Minimum Sale Price" means the minimum price at which any parcel in a given Land Use Class has sold or is expected to be sold in a normal mark eting environment and shall not include prices for such parcels that are sold at a discount to exp ected sales prices for the purpose of stimulating the initial sales activity with respect to such Land Use Class. "Non-Residential Property" means all Assessor’s Parcels of Developed Property for which a building permit(s) has been issued by the City perm itting the construction of one or more non- residential structures or facilities.
"Outstanding Bonds" means all CFD No. 117 Bonds which are outstanding under the Indenture. "Price Point Consultant" means any consultant or firm of such consultants selected by CFD No. 117 that (a) has substantial experience in performi ng price point studies for residential dwelling units within community facilities districts or othe rwise estimating or confirming pricing for residential dwelling units in community facilities districts, (b) has recognized expertise in analyzing economic and real estate data that relate s to the pricing of residential dwelling units in community facilities districts, (c) is in fact independent and not under the control of CFD No. 117 or the City, (d) does not have any substantial inte rest, direct or indirect, with or in (i) CFD No. 117, (ii) the City, (iii) any owner of real property in CFD No. 117, or (iv) any real property in CFD No. 117, and (e) is not connected with CFD No. 117 or the City as an officer or employee thereof, but who may be regularly retained to make reports to CFD No. 117 or the City. "Price Point Study" means a price point study or a letter updating a p revious price point study prepared by the Price Point Consultant pursuant to Section C herein. "Property Owner Association Property" means, for each Fiscal Year, (i) any property with in the boundaries of CFD No. 117 for which the owner o f record, as determined from the County’s assessment roll for the Fiscal Year in which the Special Tax is being levied, is a property owner’s association, including any master or sub-associatio n, or (ii) any property located in a Final Subdivision that was recorded as of the January 1 p receding the Fiscal Year in which the Special Tax is being levied and which, as determined from such Final Subdivision, is or will be open space, a common area recreation facility, or a private street. Notwithstanding the foregoing, any property previously classified as Developed Property and sub sequently owned in fee or by easement, or dedicated to, a property owner association, includi ng any master or sub-association, shall remain classified as Developed Property.
"Proportionately" means that the ratio of the actual Facilities Speci al Tax levy to the Assigned Facilities Special Tax is equal for all Assessor’s Parcels of Developed Property, and that the ratio of the actual Services Special Tax levy to the Maxi mum Services Special Tax is equal for all Assessor’s Parcels of Developed Property. For Unde veloped Property, "Proportionately" means that the ratio of the actual Facilities Special Tax levy per Acre to the Maximum Facilities Special Tax per Acre is equal for all Assessor’s Parcels of Undeveloped Property. The term "Proportionately" shall similarly be applied to oth er categories of Taxable Property as listed in Section D herein.
"Public Property" means, for each Fiscal Year, any property within t he boundaries of CFD No. 117 that is (i) owned by, irrevocably offered or dedicated to the federal government, the State, the 166

City of Fontana January 30, 2026
Community Facilities District No. 117 (Southridge) Page 5 County, the City, or any local government or other public agency, provided, however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use; or (ii) encumbered by a public utility easement making impractical its use for any purpose other than that set forth in the easement. "Rate and Method of Apportionment" means this Rate and Method of Apportionment for CFD No. 117.
"Residential Floor Area" means all of the square footage of living area wit hin the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Residential Floor Area for an Assessor’s Parcel shall be as set forth in the building permit(s) issued for such Assessor’s Parcel and/or as set forth in the appropriate records kept by the Building and Safety Department of the City, or other applicable City department, as determined by the CFD Administrator. "Residential Property" means all Assessor’s Parcels of Developed Property for which a building permit(s) has been issued by the City permitting the construction thereon of one or more residential dwelling units.
"Services Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Developed Property within CFD No. 117 to fund the Special Tax Requirement for Services, as set forth in Section C.2 herein.
"Special Tax" or "Special Taxes" means the Facilities Special Tax and/or Services Special Tax, as applicable.
"Special Tax Requirement for Facilities" means, for any Fiscal Year, that amount required, after taking into account available amounts held in the f unds and accounts under the Indenture, for the following items: (i) debt service on all Outstandin g Bonds due in the calendar year commencing in such Fiscal Year; (ii) periodic costs with respe ct to the CFD No. 117 Bonds, including but not limited to, costs of credit enhancement and federal rebate payments due in the calendar year commencing in such Fiscal Year; (iii) pay all or a portion of Administrative Expenses; (iv) any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; (v) without duplicating any amounts described in clause (iv), a bove, reasonably anticipated Facilities Special Tax delinquencies based on the delinquency rate for the Facilities Special Tax in the previous Fiscal Year, as said levy for delinquencies shall be limited by the Act; and (vi) pay directly for the acquisition or construction of Authorized Facilitie s, provided that the inclusion of such amount does not increase the Facilities Special Tax levy beyond the first step in Section D.1 herein. "Special Tax Requirement for Services" means that amount required in any Fiscal Year for CFD No. 117 to (i) pay directly for the Authorized Serv ices; (ii) pay Administrative Expenses not funded through the Special Tax Requirement for Faci lities as determined by the CFD Administrator; (iii) pay for reasonably anticipated Services Special Tax delinquencies based on the delinquency rate for the Services Special Tax levy in the previous Fiscal Year; less (iv) a credit for funds available to reduce the annual Services S pecial Tax levy, as determined by the CFD Administrator, so long as the amount required is not less than zero. "State" means the State of California.
"Taxable Property" means all of the Assessor's Parcels within the bou ndaries of CFD No. 117 which are not exempt from the Special Tax pursuant to applicable law or Section E herein. 167

City of Fontana January 30, 2026
Community Facilities District No. 117 (Southridge) Page 6 "Taxable Property Owner Association Property" means all Assessor’s Parcels of Property Owner Association Property that are not exempt pursuant to Section E herein. "Taxable Public Property" means all Assessor’s Parcels of Public Property th at are not exempt pursuant to Section E herein.
"Total Tax Burden" means, for a parcel of residential property within a Land Use Class, for the Fiscal Year in which Total Tax Burden is being calc ulated, the sum of (a) the Assigned Facilities Special Tax for such Fiscal Year, plus (b) the Maximum Services Special Tax for such Fiscal Year, plus (c) the ad valorem property taxes, special assessments, special taxes for any overlapping community facilities districts, and any other governmental fees, charges (other than fees or charges for services such as sewer and trash), taxes and assessments (which, for purposes of clarity, do not include Contractual Impositions) collected by the County on ad valorem tax bills and that the CFD Administrator estimates would be levied or imposed on such residential property in such Fiscal Year if the residential dwelling unit thereon or th erein had been completed and sold, and was subject to such fees, charges, taxes and assessments in such Fiscal Year. "Trustee" means the trustee or fiscal agent under the Indenture. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Taxable Public Property or Taxable Property Owner Association Property.

Please refer to additional definitions in Section H herein relating to the Prepayment of Facilities Special Tax.

B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, commencing with Fiscal Year 2026-2027, all Taxable Property within CFD No. 117 shall be classified as Developed Property, Undeveloped Property, Taxable Public Property or Taxable Property Owner Association Property, and shall be subject to Special Taxes in accordance with this Rate and Method of Apportionment determined pursuant to Sections C and D herein.

C. MAXIMUM SPECIAL TAX RATE

1. Facilities Special Tax
At least 30 days prior to the issuance of the first series of CFD No. 117 Bonds, the Assigned Facilities Special Tax for Residential Property (se t forth in Table 1 below) shall be analyzed in accordance with and subject to the conditions set f orth in this Section C. At such time, the CFD Administrator shall request the Price Point Consultant to prepare a Price Point Study setting forth the Minimum Sale Price of residential property with in each Land Use Class. If based upon such Price Point Study the CFD Administrator calculates that the Total Tax Burden applicable to one or more Land Use Classes of residential property constructed or to be constructed within CFD No. 117 shall exceed 1.95% of the Minimum Sale Price of such residential property constructed or to be constructed within CFD No. 117, the CFD Administ rator shall reduce the Assigned Facilities Special Tax to the extent necessary to cause the To tal Tax Burden that shall apply to residential property within such Land Use Class(es) to not exceed 1.95% of the Minimum Sale Price of such residential property. Each Assigned Facilities Spe cial Tax reduction for a Land Use Class shall be calculated separately, and it shall not be requi red that such reduction be proportionate among Land Use Classes. In connection with any reduction in the Assigned Facilities Special Tax for Residential Property, the CFD Administrator shall also reduce the Assigned Facilities Special Tax for Non-Residential in accordance with Section C.1.a.(3) herein, and the Backup Facilities Special Tax in accordance with Section C.1.a.(4) herein. U pon determining the reductions, if any, in the 168

City of Fontana January 30, 2026
Community Facilities District No. 117 (Southridge) Page 7 Assigned Facilities Special Tax and Backup Faciliti es Special Tax required pursuant to this Section C, the CFD Administrator shall complete the Certificate to Amend Facilities Special Tax substantially in the form attached hereto as Exhibi t A (the “Certificate to Amend”) and shall execute such completed Certificate to Amend and shall deliver such Certificate to Amend to CFD No. 117. Upon receipt thereof, if in satisfactory form, CFD No. 117 shall execute such Certificate to Amend. The reduced Assigned Facilities Special T ax and Backup Facilities Special Tax specified in such Certificate to Amend shall become effective upon the execution of such Certificate to Amend by CFD No. 117. The Assigned Facilities Special Tax and Backup Facilities Special Tax reductions permitted pursuant to this Section C shall be reflected in an amended notice of Special Tax lien which CFD No. 117 shall cause to be recorded with the San Bernardino County Recorder as soon as practicable after execution of the Certificate to Amend by CFD No. 117. If based upon such Price Point Study the CFD Administr ator calculates that the Total Tax Burden applicable to each Land Use Class of residential pr operty constructed or to be constructed within CFD No. 117 does not exceed 1.95% of the Minimum Sa le Price of each such Land Use Class of residential property constructed or to be construct ed within CFD No. 117, then there shall be no reduction in the Assigned Facilities Special Tax, n or shall there be a reduction in the Backup Facilities Special Tax.
a. Developed Property
(1). Maximum Facilities Special Tax
The Maximum Facilities Special Tax for each Assesso r's Parcel classified as Developed Property shall be the greater of (i) the amount der ived by application of the Assigned Facilities Special Tax or (ii) the amount derived b y application of the Backup Facilities Special Tax.
(2). Assigned Facilities Special Tax for Residenti al Property Residential Property shall be assigned to Land Use Classes 1 through 5 as listed in Table 1 below based on the Residential Floor Area associated with each such residential dwelling unit. The Assigned Facilities Special Tax that sha ll be levied in any Fiscal Year for each Land Use Class is shown below in Table 1 and shall not be subject to escalation.

Table 1
Assigned Facilities Special Tax for Residential Property City of Fontana CFD No. 117 (Southridge)

Land
Use
Class Description
Residential Floor
Area (square feet)
Assigned
Facilities
Special Tax
1 Residential Property 2,175 or greater $3,706 per unit 2 Residential Property 2,025 to less than 2,175 $3,435 per unit 3 Residential Property 1,875 to less than 2,025 $3,382 per unit 4 Residential Property 1,725 to less than 1,875 $3,184 per unit 5 Residential Property Less than 1,725 $3,107 per unit
(3). Assigned Facilities Special Tax for Non-Resid ential Property The Assigned Facilities Special Tax for an Assessor’s Parcel of Non-Residential Property shall equal the lesser of (a) $42,665 per Acre, or (b) in connection with any reduction in 169

City of Fontana January 30, 2026
Community Facilities District No. 117 (Southridge) Page 8 the Assigned Facilities Special Tax as set forth in Section C.1 herein, the amount per Acre calculated pursuant to the formula below:

RAFST = AFST  ATP
These terms have the following meaning:

RAFST = the reduced Assigned Facilities Special Tax for Non-Residential Property AFST = The total estimated Assigned Facilities Special Tax levy for CFD No. 117 based on the reduced Assigned Facilities Special Ta xes for Developed Property permitted pursuant to Section C.1 herein which coul d be levied on all expected development assuming Buildout of CFD No. 117.

ATP = The sum of the Acreage of all Taxable Property within a Final Subdivision (assuming Buildout) within CFD No. 117 (after exclu ding Public Property and Property Owner Association Property as set forth in Section E.1 herein). (4). Backup Facilities Special Tax
The Backup Facilities Special Tax for an Assessor’s Parcel of Developed Property shall equal the lesser of (a) $50,190 per Acre, or (b) in connection with any reduction in the Assigned Facilities Special Tax as set forth in Sec tion C.1 herein, the amount per Acre calculated pursuant to the formula below:

BFST = AFST  ATP
These terms have the following meaning:

BFST = the reduced Backup Facilities Special Tax
AFST = The total estimated Assigned Facilities Special Tax levy for CFD No. 117 based on the reduced Assigned Facilities Special Ta xes for Developed Property permitted pursuant to Section C.1 herein which coul d be levied on all expected development assuming Buildout of CFD No. 117.

Furthermore, all Assessors’ Parcels within CFD No. 117 shall be relieved simultaneously and permanently from the obligation to pay and disclose the Backup Facilities Special Tax if the CFD Administrator calculates that (i) the an nual debt service required for the Outstanding Bonds, when compared to the Assigned Fa cilities Special Tax that shall be levied against all Assessors’ Parcels of Developed Property in CFD No. 117 results in 110% debt service coverage (i.e., the Assigned Faci lities Special Tax that shall be levied against all Developed Property in CFD No. 117 in ea ch remaining Fiscal Year based on the then existing development is at least equal to the sum of (a) 1.10 times the debt service necessary to support the remaining Outstanding Bonds in each corresponding Fiscal Year, and (b) Administrative Expenses), and (ii) all authorized CFD No. 117 Bonds have already been issued or the Council has covenanted that it s hall not issue any additional CFD No. 117 Bonds (except refunding bonds) to be supported by the Facilities Special Tax in CFD No. 117.
170

City of Fontana January 30, 2026
Community Facilities District No. 117 (Southridge) Page 9 (5). Multiple Land Uses
In some instances an Assessor’s Parcel may contain both Developed Property and Undeveloped Property. In such cases, the Acreage o f the Assessor’s Parcel shall be allocated between Developed Property and Undeveloped Property based on the portion of the Assessor’s Parcel for which building permits ha d been issued prior to May 1 of the prior Fiscal Year and the portion of the Assessor’s Parcel for which building permits had not been issued prior to May 1 of the prior Fiscal Year.

Furthermore, Developed Property may contain more th an one Land Use Class. In such cases, the Acreage that is considered Developed Pro perty shall be allocated between Residential Property and Non-Residential Property b ased on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Maximum Facilities Special Tax that can be levied on such Assessor’s Parcel shall be the sum of the Maximum Facilities Special Tax that can be levied on each type of property located on that Assessor’s Parcel.

The CFD Administrator’s allocation to each type of property shall be final. b. Undeveloped Property, Taxable Public Property, a nd Taxable Property Owner Association Property
The Maximum Facilities Special Tax for each Assessor’s Parcel of Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property shall be $50,190 per Acre and shall not be subject to escalation and shall therefore remain the same in every Fiscal Year.

2. Services Special Tax
For purposes of the Services Special Tax, an Assess or(s) Parcel of Developed Property within a Final Residential Subdivision shall be assigned to Land Use Class 1, as identified in Table 2 below.

Non-Residential Property shall be assigned to Land Use Class 2. Furthermore, the Services Special Tax levied against each Assessor’s Parcel w ithin a Final Residential Subdivision shall be based on the number of residential dwelling units f or which building permits have been issued or are expected to be issued for such Assessor’s Parce l, as determined by the CFD Administrator based on such Final Residential Subdivision or other available documents. a. Maximum Services Special Tax
The Fiscal Year 2026-2027 Maximum Services Special Tax for each Land Use Class of Developed Property is shown below in Table 2.

Table 2
Maximum Services Special Tax for Developed Property
City of Fontana CFD No. 117 (Southridge)

Land Use
Class

Description

Fiscal Year 2026-2027
Maximum Services Special Tax
1 Final Residential Subdivision $1,080.45 per unit
2 Non-Residential Property $13,765.00 per Acre
b. Increase in the Maximum Services Special Tax
171

City of Fontana January 30, 2026
Community Facilities District No. 117 (Southridge) Page 10 The Maximum Services Special Tax in Table 2 above s hall be applicable for Fiscal Year 2026-2027, and shall increase thereafter, commencing on July 1, 2027, and on each July 1 thereafter by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.
c. Multiple Land Uses
In some instances an Assessor’s Parcel of Developed Property may contain more than one Land Use Class. In such cases, the Acreage of Deve loped Property shall be allocated between Residential Property and Non-Residential Pr operty based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Maximum Services Special Tax that can be levied on such Assessor’s Parcel shall be the sum of the Maximum Services Special Tax that can be levied on each type of property located on that Assessor’s Parcel. The CFD Administrator’s allocation to each type of property shall be final.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX

1. Facilities Special Tax
Commencing with Fiscal Year 2026-2027, and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement for Facilities and shall provide for the levy of the Facilities Special Tax each Fiscal Year as follows:

First: The Facilities Special Tax shall be levied on each Assessor’s Parcel of Developed Property in an amount equal to 100% of the applicable Assigned Facilities Special Tax; Second: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first step has been completed, the Facilities Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property at up to 100% of the Maximum Facilities Special Tax for Undeveloped Property;
Third: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first two steps have been completed, then the l evy of the Facilities Special Tax on each Assessor's Parcel of Developed Property whose Maxim um Facilities Special Tax is determined through the application of the Backup Facilities Special Tax shall be increased in equal percentages from the Assigned Facilities Special Tax up to the Maximum Facilities Special Tax for each such Assessor's Parcel;
Fourth: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first three steps have been completed, then the Facilities Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Public Property and Taxable Property Owner Association Property at up to 100% of the Maximum F acilities Special Tax for Taxable Public Property and Taxable Property Owner Association Pro perty, as needed to satisfy the Special Tax Requirement for Facilities.

Notwithstanding the above, the CFD Administrator sh all, in any Fiscal Year, calculate a levy Proportionately less than 100% of the Assigned Faci lities Special Tax in step one (above), when (i) the CFD Administrator is no longer required to provide for the levy of the Facilities Special Tax pursuant to steps two through four above in ord er to meet the Special Tax Requirement for Facilities; and (ii) all authorized CFD No. 117 Bonds have already been issued or the Council has covenanted that it shall not issue any additional C FD No. 117 Bonds (except refunding bonds) to be supported by the Facilities Special Tax.
172

City of Fontana January 30, 2026
Community Facilities District No. 117 (Southridge) Page 11 Further notwithstanding the above, under no circumstances shall the Facilities Special Tax levied in any Fiscal Year against any Assessor’s Parcel of Residential Property for which an occupancy permit for private residential use has been issued (in accordance with Section 53321(d)(3) of the California Government Code), be increased as a cons equence of delinquency or default by the owner of any other Assessor’s Parcel within CFD No. 117 by more than ten percent above the amount that would have been levied in that Fiscal Y ear had there never been any such delinquencies or defaults. To the extent that the levy of the Facilities Special Tax on Residential Property is limited by the provision in the previous sentence, the levy of the Facilities Special Tax on each Assessor’s Parcel of Non-Residential Proper ty shall continue in equal percentages up to 100% of the applicable Maximum Facilities Special Tax.

2. Services Special Tax
Commencing with Fiscal Year 2026-2027, and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requi rement for Services and shall levy the Services Special Tax Proportionately on each Assess or’s Parcel of Developed Property at up to 100% of the applicable Maximum Services Special Tax as needed to satisfy the Special Tax Requirement for Services;
E. EXEMPTIONS

1. Facilities Special Tax
No Facilities Special Tax shall be levied on up to 12.22 Acres of Public Property and/or Property Owner Association Property in CFD No. 117. Tax-exe mpt status shall be assigned by the CFD Administrator in the chronological order in which p roperty in CFD No. 117 becomes Public Property or Property Owner Association Property. H owever, should an Assessor’s Parcel no longer be classified as Public Property or Property Owner Association Property, it shall, from that point forward, be subject to the Facilities Special Tax.

Notwithstanding the above, an Assessor’s Parcel in CFD No. 117 that is transferred to a public agency or property owner’s association prior to the issuance of the first series of CFD No. 117 Bonds that causes the Acreage of Public Property an d Property Owner Association Property to exceed the 12.22 Acreage limit that can be designat ed by the CFD Administrator under this Section E.1 shall also be exempted from paying the Facilities Special Tax.

Public Property or Property Owner Association Prope rty that is not exempt from the Facilities Special Tax under this Section E.1 shall be subject to the levy of the Facilities Special Tax and shall be taxed Proportionately as part of the fourt h step in Section D herein, at up to 100% of the applicable Maximum Facilities Special Tax for Taxab le Public Property and Taxable Property Owner Association Property.

In addition, no Facilities Special Tax shall be lev ied on Lower Income Households Welfare Exemption Property, provided that if, in any Fiscal Year, applicable law does not require that an Assessor’s Parcel that is Lower Income Households Welfare Exemption Property be exempt from the Facilities Special Tax, then the Facilities Special Tax shall be levied on such Assessor’s Parcel in accordance with this Rate and Method of Apportionment as if such Assessor’s Parcel were not classified as Lower Income Households Welfare Exemption Property.

2. Services Special Tax
173

City of Fontana January 30, 2026
Community Facilities District No. 117 (Southridge) Page 12 No Services Special Tax shall be levied on Undevelo ped Property, Taxable Public Property, Taxable Property Owner Association Property, Public Property, or Property Owner Association Property.

In addition, no Services Special Tax shall be levie d on Lower Income Households Welfare Exemption Property, provided that if, in any Fiscal Year, applicable law does not require that an Assessor’s Parcel that is Lower Income Households Welfare Exemption Property be exempt from the Services Special Tax, then the Services Special Tax shall be levied on such Assessor’s Parcel in accordance with this Rate and Method of Apportionment as if such Assessor’s Parcel were not classified as Lower Income Households Welfare Exemption Property.

F. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 117 may directly bill the Special Tax, and/or may collect Special Taxes at a different time or in a different manner if necessary to meet financial obligations, and, to the extent of the Facilities S pecial Tax, may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels.

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

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

H. PREPAYMENT OF FACILITIES SPECIAL TAX
Under this Rate and Method of Apportionment, an Ass essor’s Parcel within CFD No. 117 is permitted to prepay the Facilities Special Tax. The obligation of the Assessor’s Parcel to pay the Facilities Special Tax may be fully prepaid and per manently satisfied or partially prepaid as described herein, provided that a prepayment may be made only for Assessor’s Parcels of Developed Property, or for an Assessor’s Parcel of Undeveloped Property for which a building permit has been issued after January 1, 2026, and o nly if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Facilities Special Tax obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount for such Assessor's Parcel. The 174

City of Fontana January 30, 2026
Community Facilities District No. 117 (Southridge) Page 13 CFD Administrator may charge such owner a reasonabl e fee for providing this service. If there are Outstanding Bonds, prepayment must be made not less than 30 days prior to a date that notice of redemption of CFD No. 117 Bonds from the proceeds of such prepayment may be given by the Trustee pursuant to the Indenture that is specified in the report of the Facilities Special Tax Prepayment Amount (defined below).

The following additional definitions apply to this Section H:
"CFD Public Facilities Costs" means either $9,463,900 in 2026 dollars, which shall increase by the Construction Inflation Index on July 1, 2027, a nd on each July 1 thereafter, or such lower number as (i) shall be determined by the CFD Admini strator as sufficient to provide funding for the Authorized Facilities under the authorized bond ing program for CFD No. 117, or (ii) shall be determined by the Council concurrently with a covenant that it shall not issue any more CFD No. 117 Bonds (except refunding bonds) to be supported by the Facilities Special Tax levy under this Rate and Method of Apportionment.
"Construction Inflation Index" means the annual percentage change in the Engineer ing News Record Building Cost Index for the City of Los Ange les, measured as of the month of December in the calendar year which ends in the previous Fis cal Year. In the event this index ceases to be published, the Construction Inflation Index shall b e another index as determined by the CFD Administrator that is reasonably comparable to the Engineering News Record Building Cost Index for the City of Los Angeles.
"Future Facilities Costs" means the CFD Public Facilities Costs minus (i) co sts of Authorized Facilities previously paid from the Improvement Fun d, (ii) moneys currently on deposit in the Improvement Fund available to pay costs of Authoriz ed Facilities, and (iii) the amount the CFD Administrator reasonably expects to derive from the reinvestment of these funds. "Improvement Fund" means a fund or account specifically identified in the Indenture (or prior to the issuance of the first series of CFD No. 117 Bonds a fund or account held by the City) to hold funds which are currently available for expenditure to acquire or construct Authorized Facilities. "Previously Issued Bonds" means, for any Fiscal Year, all Outstanding Bonds that are outstanding under the Indenture after the first interest and/or principal payment date following the current Fiscal Year.

1. Prepayment in Full
The Facilities Special Tax Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below):

Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
Total: equals Facilities Special Tax Prepayment Amo unt As of the proposed date of prepayment, the Faciliti es Special Tax Prepayment Amount shall be calculated according to the following paragraphs:

1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel. 175

City of Fontana January 30, 2026
Community Facilities District No. 117 (Southridge) Page 14

2. For Assessor’s Parcels of Developed Property, compu te the Assigned Facilities Special Tax and Backup Facilities Special Tax for the Asses sor’s Parcel to be prepaid. For Assessor’s Parcels of Undeveloped Property for whic h a building permit has been issued after January 1, 2026, compute the Assigned Facilit ies Special Tax and Backup Facilities Special Tax for that Assessor’s Parcel as though it was already designated as Developed Property, based upon the building permit which has already been issued for such Assessor’s Parcel.

3. (a) Divide the Assigned Facilities Special Tax comp uted pursuant to paragraph 2 by the total estimated Assigned Facilities Special Tax lev y for CFD No. 117 based on the Assigned Facilities Special Taxes for Developed Pro perty which could be levied on all expected development assuming Buildout of CFD No. 1 17, excluding any Assessor’s Parcels which have been prepaid, and
(b) Divide the Backup Facilities Special Tax computed pursuant to paragraph 2 by the total estimated Backup Facilities Special Taxes at Buildo ut for the entire CFD No. 117, excluding any Assessor’s Parcels which have been prepaid.

4. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the Previously Issued Bonds to compute the amount of Previously Is sued Bonds to be redeemed (the "Bond Redemption Amount").

5. Multiply the Bond Redemption Amount computed pursua nt to paragraph 4 by the applicable redemption premium (e.g., the redemption price minus 100%) set forth in the Indenture, if any, on the Previously Issued Bonds t o be redeemed (the "Redemption Premium").

6. Compute the current Future Facilities Costs.

7. Multiply the larger quotient computed pursuant to p aragraph 3(a) or 3(b) by the amount determined pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be prepaid (the "Future Facilities Amount").

8. Compute the amount needed to pay interest on the Bo nd Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the redemption date for the Previously Issued Bonds spe cified in the report of the Facilities Special Tax Prepayment Amount.

9. Determine the Facilities Special Tax levied on the Assessor’s Parcel in the current Fiscal Year which has not yet been paid.

10. Compute the minimum amount the CFD Administrator re asonably expects to derive from the reinvestment of the Facilities Special Tax Prep ayment Amount, less any interest earnings attributed to the Future Facilities Amount, and less any interest earnings attributed to the Administrative Fees and Expenses (defined below) from the date of prepayment until the redemption date for the Previously Issued Bonds to be redeemed with the prepayment.

11. Add the amounts computed pursuant to paragraphs 8 a nd 9 and subtract the amount computed pursuant to paragraph 10 (the "Defeasance Amount").

12. The administrative fees and expenses of CFD No. 117 are as calculated by the CFD Administrator and include the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming CFD No. 117 Bonds, and the costs of 176

City of Fontana January 30, 2026
Community Facilities District No. 117 (Southridge) Page 15 recording any notices to evidence the prepayment and the redemption (the "Administrative Fees and Expenses").

13. The reserve fund credit (the "Reserve Fund Credit") shall equal the lesser of: (a) the expected reduction in the reserve requirement (as d efined in the Indenture), if any, associated with the redemption of Previously Issued Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new re serve requirement (as defined in the Indenture) in effect after the redemption of Previo usly Issued Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero. No Reserve Fund Credit shall be granted if the amount then on deposit in the reserve fund for the Previou sly Issued Bonds is below 100% of the reserve requirement (as defined in the Indenture).

14. If any capitalized interest for the Previously Issued Bonds will not have been expended as of the date immediately following the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the larger quotient computed pursuant to paragraph 3(a) or 3(b ) by the expected balance in the capitalized interest fund or account under the Inde nture after such first interest and/or principal payment date (the "Capitalized Interest Credit").

15. The Facilities Special Tax prepayment is equal to t he sum of the amounts computed pursuant to paragraphs 4, 5, 7, 11 and 12, less the amounts computed pursuant to paragraphs 13 and 14 (the "Facilities Special Tax Prepayment Amount").

2. Prepayment in Part
The amount of the prepayment shall be calculated as in Section H.1; except that a partial prepayment shall be calculated according to the following formula:

PP = [(PE – A) x F] + A
These terms have the following meaning:

PP = the partial prepayment.

PE = the Facilities Special Tax Prepayment Amount calculated according to Section H.1.

F = the percentage, expressed as a decimal, by which the owner of the Assessor’s Parcel is partially prepaying the Facilities Special Tax.

A = the Administrative Fees and Expenses calculated according to Section H.1.

3. General Provisions Applicable to the Prepayment of Facilities Special Tax (a). Use of the Facilities Special Tax Prepayment Amount The Facilities Special Tax Prepayment Amount, less the Administrative Fees and Expenses calculated according to Section H.1 which shall be retained by CFD No. 117, and less the Future Facilities Amount calculated according to Section H.1 which shall be deposited into the Improvement Fund, shall be deposited into speci fic funds established under the Indenture, to fully or partially redeem as many Out standing Bonds as possible, and, if amounts are less than $5,000, to make debt service payments on the Outstanding Bonds. (b). Full Prepayment of Facilities Special Tax
Upon confirmation of the payment of the current Fiscal Year’s entire Facilities Special Tax obligation, the CFD Administrator shall remove the current Fiscal Year’s Facilities Special 177

City of Fontana January 30, 2026
Community Facilities District No. 117 (Southridge) Page 16 Tax levy for such Assessor’s Parcel from the County tax rolls. With respect to any Assessor’s Parcel that is prepaid in accordance wit h Section H.1, the CFD Administrator shall cause a suitable notice to be recorded in com pliance with the Act, to indicate the prepayment of the Facilities Special Tax and the re lease of the Facilities Special Tax lien on such Assessor’s Parcel, and the obligation of such Assessor’s Parcel to pay the Facilities Special Tax shall cease.
(c). Partial Prepayment of Facilities Special Tax
With respect to any Assessor’s Parcel that is partially prepaid, the CFD Administrator shall (i) distribute or cause to be distributed the funds remitted to it according to Section H.3.(a) and (ii) indicate in the records of CFD No. 117 that there has been a partial prepayment of the Facilities Special Tax and that a portion of th e Facilities Special Tax with respect to such Assessor’s parcel, equal to the outstanding pe rcentage (1.00 – F) of the remaining Maximum Facilities Special Tax, shall continue to b e levied on such Assessor’s Parcel pursuant to Section D herein.
(d). Debt Service Coverage
Notwithstanding the foregoing, no prepayment of the Facilities Special Tax shall be allowed unless the amount of Facilities Special Tax that may be levied on Taxable Property (assuming Buildout) within CFD No. 117 in each future Fiscal Year (after excluding Public Property and Property Owner Association Property as set forth in Section E.1 herein), after the proposed prepayment, is at least equal to the s um of (i) 1.10 times the debt service necessary to support the remaining Outstanding Bonds in each corresponding Fiscal Year, and (ii) Administrative Expenses.

I. TERM OF SPECIAL TAX
The Facilities Special Tax shall be levied for a pe riod not to exceed fifty years commencing with Fiscal Year 2026-2027. The Services Special Tax shall be levied in perpetuity to fund the Special Tax Requirement for Services.
178

EXHIBIT A

CERTIFICATE TO AMEND FACILITIES SPECIAL TAX

CFD NO. 117 CERTIFICATE

1. Pursuant to Section C.1 of the Rate and Method o f Apportionment (the "Rate and Method") for City of Fontana Community Facilities District No. 117 (Southridge) ("CFD No. 117"), the Assigned Facilities Special Tax and the Backup Facilities Special Tax for Developed Property within CFD No. 117 has been reduced as described herein.

(a) The information in Table 1 of the Rate and Method r elating to the Assigned Facilities Special Tax for Residential Property within CFD No. 117 shall be modified as follows:

Land
Use
Class Description
Residential Floor
Area (square feet)
Original
Assigned
Facilities
Special Tax
Reduced

Assigned
Facilities
Special Tax
1 Residential Property 2,175 or greater $3,706 per unit $[_____] per unit 2 Residential Property 2,025 to less than 2,175 $3, 435 per unit $[_____] per unit 3 Residential Property 1,875 to less than 2,025 $3,382 per unit $[_____] per unit 4 Residential Property 1,725 to less than 1,875 $3,184 per unit $[_____] per unit 5 Residential Property Less than 1,725 $3,107 per unit $[_____] per unit

(b) The Assigned Facilities Special Tax for Non-Residential Property, as stated in Section C.1.a.(3) of the Rate and Method, shall be reduced from $42,665 per Acre to $[_____] per Acre.

(c) The Backup Facilities Special Tax for Developed Pro perty, as stated in Section C.1.a.(4) of the Rate and Method, shall be reduced from $50,190 per Acre to $[_____] per Acre.

2. The Assigned Facilities Special Tax and the Backup Facilities Special Tax for Developed Property may only be reduced prior to the first issuance of CFD No. 117 Bonds.

3. Upon execution of the certificate by CFD No. 117, CFD No. 117 shall cause an amended notice of Special Tax lien for CFD No. 117 to be recorded reflecting the reductions set forth herein.

All capitalized terms used herein shall have the meanings set forth in the Rate and Method.

By:___________________________ Date:______________ ________ CFD Administrator

By execution hereof, the undersigned acknowledge, o n behalf of CFD No. 117, receipt of this certificate and modification of the Rate and Method as set forth in this certificate.

CITY OF FONTANA COMMUNITY FACILITIES DISTRICT NO. 117 (SOUTHRIDGE)

By:___________________________ Date:______________ _______

179

4138-7201-1870.3

I, Germaine Key, City Clerk of the City of Fontana, Califo rnia, and Ex-Officio Clerk of the City Council, do hereby certi fy that the foregoing Resoluti on is the actual Resolution duly and regularly adopted by the City Council of said City at a regular meet ing thereof, held on March 10, 2026, by the following vote to-wit:

AYES:

NOES:

ABSENT:

City Clerk

Mayor
ATTEST:

City Clerk
180

Page 1 of 2 ends

RESOLUTION NO. 2026-013

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

CALIFORNIA DECLARING IT NECESSARY FOR CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 117 (SOUTHRIDGE) TO INCUR

BONDED INDEBTEDNESS
WHEREAS, the City Council (the “City Council”) of the City of Fontana (the “City”), pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), has this date adopted a resolution entitled “A Resolution of the City Council of the City of Fontana of Intention to Establish a Community Facilities District Proposed to be Named City of Fontana Community Facilities District No. 117 (Southridge) and to Authorize the Levy of a Special Tax Therein,” stating its intention to establish City of Fontana Community Facilities District No. 117 (Southridge) (the “Community Facilities District”) and to authorize the Community Facilities District to levy a special tax within the Community Facilities District for the purpose of financing certain public facilities (the “Facilities”) and services; and
WHEREAS, the City Council deems it necessary for the Community Facilities District to incur bonded indebtedness;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fontana, California as follows:

Section 1. The foregoing recitals are true and correct, and the City Council so finds and determines.

Section 2. The City Council declares it necessary for the Community Facilities District to incur bonded indebtedness.

Section 3. The proposed debt will be incurred for the purpose of financing the costs of the Facilities, including all costs and estimated costs incidental to, or connected with, the accomplishment of said purpose, including, but not limited to, such costs and estimated costs as are described in Section 53345.3 of the Act.

Section 4. The maximum amount of the proposed debt is $14,000,000.

Section 5. The City Council hereby fixes Tuesday, April 14, 2026, at 2:00 p.m., or as soon thereafter as the City Council may reach the matter, at 8437 Sierra Avenue, Fontana, California, as the time and place when and where the City Council will conduct a public hearing on the proposed debt authorization; provided, that, in the event the April 14, 2026 City Council meeting is h eld via teleconference and/or videoconference only, the means by which the public may observe such public hearing and offer public comment shall be prescribed in the notice and agenda for such City Council meeting.

Section 6. The City Clerk of the City is hereby directed to publish, or cause to be published, a notice of said public hearing one time in a newspaper of general circulation published in the area of the proposed Community Facilities District.

Publication of said notice shall be completed at least seven days prior to the date 181

Resolution No. 2026-013

Page 2 of 2 ends

herein fixed for said public hearing. Said notice shall contain all of the information prescribed by Section 53346 of the Act.

Section 7. All actions heretofore taken by the officers, employees and agents of the City with respect to the incurrence of bonded indebtedness by the Community Facilities District, or in connection with or related to any of the matters referred to herein, are hereby approved, confirmed and ratified.

Section 8. The offic ers, employees and agents of the City are hereby authorized and directed to take all actions and do all things that they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof.

Section 9. This Resolution shall take effect immediately upon its adoption.

APPROVED AND ADOPTED this 10th day of March, 2026.

READ AND APPROVED AS TO LEGAL FORM:

____________________________________
City Attorney

AYES:

NOES:

ABSENT:

ABSTAIN:

____________________________________
City Clerk of the City of Fontana

____________________________________
Mayor of the City of Fontana

ATTEST:

____________________________________
City Clerk
182
183
City of Fontana
Action Report
City Council Meeting
8437 Sierra Avenue
Fontana, CA 92335
File #: 26-0849 Agenda Date: 3/10/2026
Agenda #: H. Category: Consent Calendar
FROM:

Planning Department
SUBJECT:

Prohousing Designation Program Application
RECOMMENDATION:

1. Adopt Resolution No. 2026-014, a Resolution of the City Council of the City of Fontana authorizing application submittal, and participation in, the Prohousing Designation Program.

2. Authorize the City Manager to execute any documents necessary or appropriate as required for the application and participation in the program.

COUNCIL GOALS:
· Practice sound fiscal management by living within our means while investing in the future. · Concentrate on Inter-governmental relations by pursuing financial participation from county, state and federal governments.
· Concentrate on Inter-governmental relations by advocating Fontana's position in regional, state, and federal organizations.

DISCUSSION:

Background
The City Council previously adopted Resolution No. 2025-094 to authorize the reapplication for the Prohousing Designation. However, language confirming the city’scompliance with state practices related to sustainability communities and principles related to treatment of unhoused persons is required to be added to meet program requirements. Therefore, an amended resolution is required and attached.

Purpose
The Prohousing Designation Program provides incentives to cities and counties in the form of additional points or other preference in the scoring of competitive housing, community development and infrastructure programs. Prohousing communities are prioritized for funding by the Transit and Intercity Rail Capital Program (TIRCP), Affordable Housing and Sustainable Communities (AHSC), Infill Infrastructure Grant (IIG), and Transformative Climate Communities (TCC) programs.

In 2024, the City’sHousing department received a grant in the amount of $1,090,000.00 from the state’s ProHousing Incentive program, which required that any applicant hold the ProHousing designation in order to be eligible to apply.

City of Fontana Printed on 3/3/2026Page 1 of 2
powered by Legistar™
184
File #: 26-0849 Agenda Date: 3/10/2026
Agenda #: H. Category: Consent Calendar
The City of Fontana was originally awarded the Prohousing Designation in November 2022 and was one of the first seven cities to receive this designation. The two-year duration of the designation concluded in November 2024 and staff intends to reapply for a second Prohousing Designation.

Analysis
Awarding of the designation is considered “over the counter” and is not a competitive process. Any jurisdiction that meets the threshold criteria could potentially be awarded the Prohousing Designation.

Applicants are required to demonstrate that policies that significantly contribute to the acceleration of housing production have been enacted or are proposed to be enacted. The scoring criteria are separated into four (4) categories:

1. Favorable Zoning and Land Use

2. Acceleration of Housing Production Timeframes

3. Reduction of Construction and Development Costs

4. Providing Financial Subsidies
Applicants are required to score points in each of the four (4) categories. Points may be awarded for existing prohousing policies or policies that are proposed to be enacted during the two-year designation period. The City of Fontana’sexisting policies contribute to the majority of the points staff will seek in the application. Proposed policies will contribute to the reduction of review times for residential development and an increase in the level of customer service provided to the development community.

FISCAL IMPACT:

The city has previously been awarded over $1,000,000.00 from the state stemming from its participation in the ProHousing program. Should the ProHousing Designation be awarded, funding opportunities may be pursued in the future.

MOTION:

Accept staff’s recommendation.

City of Fontana Printed on 3/3/2026Page 2 of 2
powered by Legistar™
185

Page 1 of 3 ends

RESOLUTION NO. 2026-014

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

CALIFORNIA AUTHORIZING REAPPLICATION TO , AND

PARTICIPATION IN, THE PROHOUSING DESIGNATION PROGRAM

WHEREAS, Government Code section 65589.9 established the Prohousing Designation Program (“PDP” or “Program”), which creates incentives for jurisdictions that are compliant with state housing element requirements and that have enacted Prohousing local policies; and

WHEREAS, such jurisdictions will be designated Prohousing, and, as such, will receive additional points or other preference during the scoring of their competitive applications for specified housing and infrastructure funding; and

WHEREAS, the D epartment of Housing and Community Development (“Department”) has adopted emergency regulations (Cal. Code Regs., tit. 25, § 6600 et seq.) to implement the Program (“Program Regulations”), as authorized by Government Code section 65589.9, subdivision (d); and

WHEREAS, the City Council of the City of Fontana (“Applicant”) desires to submit an application for a Prohousing Designation (“Application”).

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

Section 1. The City Manager and/or Deputy City Manager is hereby authorized and directed to submit an Application to the Department.

Section 2. In connection with the Program, i f the Application is approved, Applicant is hereby authorized and directed to enter into, execute, and deliver all documents required or deemed necessary or appropriate to participate in the Program, and all amendments thereto (the “Program Documents”).

Section 3. Applicant acknowledges and confirms that it is currently in compliance with applicable state housing law.

Section 4. The A pplicant acknowledges and confirms that it will continue to comply with applicable housing laws and to refrain from enacting laws, developing policies, or taking other local governmental actions that may or do inhibit or constrain housing production. Examples of such local laws, policies, and action include moratoriums on development; local voter approval requirements related to housing production; downzoning; and unduly restrictive or onerous zoning regu lations, development standards, or permit procedures. Applicant further acknowledges and confirms that it commits itself to affirmatively furthering fair housing pursuant to Government Code section 8899.50 and 65583. Applicant further acknowledges and 186
Resolution No. 2026-014

Page 2 of 3 ends

confirms that its general plan is in alignment with an adopted sustainable communities strategy pursuant to Public Resources Code section 21155 - 21155.4. Applicant further acknowledges and confirms that its policies for the treatment of homeless encampments on public property comply with and will continue to comply with the Constitution and that it has enacted best practices in its jurisdiction that are consistent with the United States Interagency Council on Homelessness’ “7 Principles for Addressing Encampments” (June 17, 2022, update).

Section 5. Applicant acknowledges and agrees that it shall be subject to the Application; the terms and conditions specified in the Program Documents; the Program Regulations; and any and all other applicable law.

Section 6. The City Manager and/or the Deputy City Manager are authorized to execute and deliver the Application and the Program Documents on behalf of the Applicant for participation in the Program.

APPROVED AND ADOPTED this 10th day of March 2026.

READ AND APPROVED AS TO LEGAL FORM:

________________________________
City Attorney

I, Germaine Key, City Clerk of the City of Fontana, and Ex-Officio Clerk of the City Council, do hereby certify that the foregoing resolution is the actual resolution duly and re gularly adopted by the City Council at a regular meeting held on the 10th day of March, 2026, by the following vote to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

________________________________
City Clerk of the City of Fontana

________________________________
Mayor of the City of Fontana

187
Resolution No. 2026-014

Page 3 of 3 ends

ATTEST:

________________________________
City Clerk

188
City of Fontana
Action Report
City Council Meeting
8437 Sierra Avenue
Fontana, CA 92335
File #: 26-0854 Agenda Date: 3/10/2026
Agenda #: I. Category: Consent Calendar
FROM:

Development Services
SUBJECT:

Resolution Approving the First Amendment to Commercial Lease Agreements for Fire Station 71, Fire Station 73, Fire Station 74, Fire Station 77, Fire Station 78, Fire Station 79, and Fire Station 81.

RECOMMENDATION:

Adopt Resolution No. 2026-015, approving the First Amendment to the Commercial Lease Agreements between the City of Fontana and the Fontana Fire Protection District for Fire Stations 71, 73, 74, 77, 78, 79, and 81, and authorizing the City Manager to enter into the amendment on behalf of the city.

COUNCIL GOALS:
· Improve public safety by increasing operational efficiency, visibility; and, · Practice sound fiscal management by living within our means while investing in the future. · Practice sound fiscal management by developing long-term funding and debt management plans.

DISCUSSION:

The City of Fontana owns seven separate properties improved with Fire Stations and other improvements. These Properties are known as Fire Station No. 71 (APN 192-042-26), Fire Station No. 73 (APN 0230-041-01), Fire Station No. 74 (APN 0237-201-27), Fire Station No. 77 (APN 0256- 011-22), Fire Station No. 78 (APN 0228-233-01), Fire Station No. 79 (APN 1107-262-58) and Fire Station No. 81(APN 1118-371-37). In December 2022, the City Council approved six Commercial Lease Agreements between the City of Fontana and the Fontana Fire Protection District for Fire Stations 71, 73, 74, 77, 78, and 79. The Commercial Lease Agreement for Fire Station 81 between the City of Fontana and the Fontana Fire Protection District was approved in Spring 2024.

Staff is now requesting approval of a First Amendment to each of the seven (7) Commercial Leases Agreements to adjust rent and to clarity certain maintenance and insurance provisions.

The proposed First Amendment to each Commercial Lease Agreement would include the following changes:
· Rent Adjustment
Increase rent by ten percent (10%) effective March 1, 2026, resulting in a rate of $1.05 per square foot per month. Monthly and six-month rent amounts will be calculated based on the square footage of each facility, as set forth in the applicable First Amendment. All other rent terms, including the City of Fontana Printed on 3/5/2026Page 1 of 2
powered by Legistar™
189
File #: 26-0854 Agenda Date: 3/10/2026
Agenda #: I. Category: Consent Calendar
of each facility, as set forth in the applicable First Amendment. All other rent terms, including the annual rent increases in Section 4(c) of each Commercial Lease Agreement will remain unchanged. · Maintenance Clarification
Clarify the maintenance provision in Section 11 (a) of each Commercial Lease Agreement by adding omitted language to confirm that the City should have a reasonable period of time to complete repairs.
· Insurance Clarification
Correct a typographical error in the liability insurance in Section 16 (b) of each Lease Commercial Agreement to clarify the required coverage limits of not less than $2,000,000 per occurrence and $4,000,000 in the aggregate.

FISCAL IMPACT:

With approval of the First Amendment to the seven (7) Lease Agreements, the Fontana Fire Protection District will pay approximately $534,277.80 per month in total rent for Fire Stations No. 71, 73, 74, 77, 78, 79, and 81, commencing March 1, 2026. Lease payments will continue to be made on a bi-annual basis in January and July, and will reflect the amount due for the upcoming six-month period. The estimated payment for each six-month period following the rent increase will be approximately $3,205,666.80,subject to annual rent adjustments in accordance with the lease agreements. Rental income will be deposited in Fund 115.

MOTION:

Approve staff recommendation.

City of Fontana Printed on 3/5/2026Page 2 of 2
powered by Legistar™
190

Page 1 of 2 ends

RESOLUTION NO. 2026-015

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

COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,

APPROVING A FIRST AMENDMENT TO SEVEN COMMERCIAL LEASE

AGREEMENTS WITH THE FONTANA FIRE PROTECTION DISTRICT
FOR CITY-OWNED FIRE STATION FACILITIES.

WHEREAS, the City of Fontana (“City”) owns certain real property improved with fire station facilities used by the Fontana Fire Protection District (“District”) for fire protection and emergency services within the City; and

WHEREAS, on December 13, 2022, the City Council approved Commercial Lease Agreements between the City and the District for Fire Stations No. 71,73,74,77,78, and 79; and

WHEREAS, on January 23, 2024, the City Council approved a Commercial Lease Agreement between the City and the District for Fire Station 81; and

WHEREAS, the Commercial Lease Agreements for Fire Station No. 71,73,74,77,78, 79 and 81 are collectively referred to herein as (“Leases”); and

WHEREAS, the City and the District desire to amend the Leases to adjust rent and to clarify certain maintenance and insurance provisions; and

WHEREAS, the proposed First Amendment to the Leases would (i) increase rent to $1.05 per square foot per month effective March 1 , 2026, (ii) clarify the notice requirements applicable to certain landlord maintenance obliga tions, and (iii) correct a typographical error in the liability insurance requirements; and

WHEREAS, except as expressly provided in the proposed First Amendment, all terms, conditions, and rights under the Leases remain unchanged and subject to all required approvals; and

WHEREAS the City Council finds that approval of the First Amendment is in the best interests of the City and supports sound fiscal management and continued provision of public safety services.

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

Section 1. Recitals. The City Council hereby finds and determines that the above recitals are true and correct and are incorporated herein by this reference. 191

Page 2 of 2 ends

Section 2. Authorization. The City Council hereby authorizes the City Manager to execute the First Amendment on behalf of the City.

Section 3. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid by a court of competent jurisdiction, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable.

Section 4. Effective Date. This Resolution shall become effective immediately upon its adoption.

APPROVED AND ADOPTED this 10th day of March, 2026.

READ AND APPROVED AS TO LEGAL FORM:

____________________________________
City Attorney

AYES:

NOES:

ABSENT:

ABSTAIN:

____________________________________
City Clerk of the City of Fontana

____________________________________
Mayor of the City of Fontana

ATTEST:

____________________________________
City Clerk
192
16498.00372\44601783.2

1 FONTANA FIRES STATION NO. 71

FIRST AMENDMENT TO COMMERCIAL LEASE AGREEMENT
This First Amendment to the Commercial Lease Agreement (“First Amendment”) is made as of March 1, 2026, (Effective Date) by and between the CITY OF FONTANA , a municipal corporation (“Landlord”) and FONTANA FIRE PROTECTION DISTRICT, a subsidiary district of the City of Fontana (“Tenant”); collectively, the “Parties.”

1. Background. Landlord and Tenant entered into a Commercial Lease Agreement dated [INSERT DATE] (the “Lease”) for the purpose of leasing commercial property located at 16980 Arrow Blvd., Fontana, California, 92335, in the City of Fontana California (APN 192-042-26) (the “Property”). The Property is improved with Fire Station No. 71 and other improvements. The Parties desire to amend certain provisions of the Lease as provided herein. Capitalized terms used in this First Amendment without definition shall have the same meaning given to such terms in the Lease. To the extent of any inconsistency, this First Amendment shall rule over the provisions of the Lease.

2. Lease Modifications:
(a) Section 4 of the Lease titled “Rent” is hereby amended as follows:

Effective as of March 1, 2026, the annual rent set forth in Section 4 of the Lease is increased by ten percent (10%). From and after such date, the annual rent shall be $1.05 per square foot per month, or $62,527.50 per month, and $375,165.00 for each six-month period.

Except as expressly modified herein, all other terms and conditions of Section 4 of the Lease, including the annual rent increases set forth in Section 4(d) of the Lease, shall remain unchanged and in full force and effect.
(b) Section 11 (a) of the Lease titled “ Landlord’s Repair and Maintenance” is hereby amended so that the last sentence of that subsection reads as follows (with the added words shown in bold):

“Landlord shall not be required to make any repairs to the roof, structural foundation, or exterior walls unless and until Tenant has notified Landlord in writing of the need for such repairs and Landlord shall have had a reasonable period thereafter to co mmence and complete the repairs.”
(c) Section 16 (b) of the Lease titled “Liability Insurance” is hereby amended so that the insurance limits stated therein are clarified and corrected. The first sentence of Section 16 (b) shall read as follows:
“A policy of commercial general liability insurance (occurrence form) having a combined single limit of not less than Two Million Dollars ($2,000,000) per occurrence, Four Million Dollars ($4,000,000) in aggregate, providing coverage for, among other things, blanket contractual liability…”
193
16498.00372\44601783.2

2 3. Option to Renew.

The parties acknowledge that the Lease includes an option to renew as set forth in Section 3(c) of the Lease. As of the effective date of this First Amendment, there is no change in the status of the option to renew, and no action has been taken to exercise or approve the option. Other than as expressly stated in this First Amendment, nothing herein is intended to affect or change the option to renew, which remains subject to the terms of the Lease and any required approvals.

4. Back Rent; Separate Agreement.

The parties acknowledge that Section 4(a) of the Lease addresses back rent for Tenant’s prior occupancy of the Property beginning on or about July 1, 2015. As of the effective date of this First Amendment, the total amount in back rent owed is $71,157.13. The Lease further provides that a separate agreement between the parties governs the terms of payment of such back rent. The parties acknowledge that the separate agreement remains in effect. Except as expressly stated in this First Amendment, nothing herein is intended to modify the amount of back rent or the terms governing its payment, which shall continue to be governed by the separate agreement.

5. Ratification; Miscellaneous.
(a) This First Amendment contains the entire agreement between the parties concerning the subject matter hereof, and except as modified by this First Amendment, in all other respects the Lease is remains in full force and effect. (b) This First Amendment may be executed in one or more counterparts. All terms of the Lease and its Addendums (including this First Amendment) shall remain current, valid and in force upon full execution of this First Amendment.
(c) Subject to the provisions of the Lease prohibiting or limiting the Tenant’s right to assign the Lease, otherwise transfer any inter est in the Lease, sublease the p remises or otherwise allow any other person to occupy or use the leased premises , the provisi ons of this First Amendment shall be binding upon and inure to the benefit of the parties to this First Amendment and their successors in interest.
[SIGNATURES ON FOLLOWING PAGE]

194
16498.00372\44601783.2

3 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment as of the date last written below.

LANDLORD TENANT

CITY OF FONTANA,
a municipal corporation
By:

Name:

Its:

Dated: _________________________

FONTANA FIRE PROTECTION DISTRICT,
a subsidiary district of the City of Fontana
By:

Name:

Its:

Dated: _________________________
APPROVED AS TO FORM:

BEST BEST & KRIEGER LLP
By: _______________________________

195
16498.00372\44602197.2

1 FONTANA FIRE STATION NO. 73

1. Background. Landlord and Tenant entered into a Commercial Lease Agreement dated [INSERT DATE] (the “Lease”) for the purpose of leasing commercial property located at 8143 Banana Ave., Fontana, California, 92335 , in the City of Fontana California (APN 0230-041-01) (the “Property”). The Property is improved with Fire Station No. 73 and other improvements .

The Parties desire to amend certain provisions of the Lease as provided herein. Capitalized terms used in this First Amendment without definition shall have the same meaning given to such terms in the Lease. To the extent of any inconsistency, this First Amendment shall rule over the provisions of the Lease.

2. Lease Modifications:
(a) Section 4 of the Lease titled “Rent” is hereby amended as follows:

Effective as of March 1, 2026, the annual rent set forth in Section 4 of the Lease is increased by ten percent (10%). From and after such date, the annual rent shall be $1.05 per square foot per month, or 83,042.40 per month, and $498,254.40 for each six-month period.

Except as expressly modified herein, all other terms and conditions of Section 4 of the Lease, including the annual rent increases set forth in Section 4(d) of the Lease, shall remain unchanged and in full force and effect.
(b) Section 11(a) of the Lease titled “ Landlord’s Repair and Maintenance” is hereby amended so that the last sentence of that subsection reads as follows (with the added words shown in bold):

2 3. Option to Renew.

4. Back Rent; Separate Agreement.

The parties acknowledge that Section 4(a) of the Lease addresses back rent for Tenant’s prior occupancy of the Property beginning on or about July 1, 2015. As of the effective date of this First Amendment, the total amount in back rent owed is $ 94,503.36. The Lease further provides that a separate agreement between the parties governs the terms of payment of such back rent. The parties acknowledge that the separate agreement remains in effect. Except as expressly stated in this First Amendment, nothing herein is intended to modify the amount of back rent or the terms governing its payment, which shall continue to be governed by the separate agreement.

5. Ratification; Miscellaneous.
(a) This First Amendment contains the entire agreement between the parties concerning the subject matter hereof, and except as modified by this First Amendment, in all other respects the Lease is remains in full force and effect. (b) This First Amendment may be executed in one or more counterparts. All terms of the Lease and its Addendums (including this First Amendment) shall remain current, valid and in force upon full execution of this First Amendment.
(c) Subject to the provisions of the Lease prohibiting or lim iting the Tenant’s right to assign the Lease, otherwise transfer any inter est in the Lease, sublease the p remises or otherwise allow any other person to occupy or use the leased premises , the provisions of this First Amendment shall be binding upon and inure to the benefit of the parties to this First Amendment and their successors in interest.
[SIGNATURES ON FOLLOWING PAGE]

197
16498.00372\44602197.2

3 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment as of the date last written below.

LANDLORD TENANT

CITY OF FONTANA,
a municipal corporation
By:

Name:

Its:

Dated: _________________________

FONTANA FIRE PROTECTION DISTRICT,
a subsidiary district of the City of Fontana
By:

Name:

Its:

Dated: _________________________
APPROVED AS TO FORM:

BEST BEST & KRIEGER LLP
By: _______________________________

198
16498.00372\44602605.2

1 FONTANA FIRE STATION NO. 74

1. Background. Landlord and Tenant entered into a Commercial Lease Agreement dated [INSERT DATE] (the “Lease”) for the purpose of leasing commercial property located at 11500 Live Oak Ave., Fontana, California, 92335, in the City of Fontana California (APN 0237-201-27) (the “Property”). The Property is improved with Fire Station No. 74 and other improvements .

2. Lease Modifications:
(a) Section 4 of the Lease titled “Rent” is hereby amended as follows:

Effective as of March 1, 2026, the annual rent set forth in Section 4 of the Lease is increased by ten percent (10%). From and after such date, the annual rent shall be $1.05 per square foot per month, or $68,607.00 per month, and $411,642.00 for each six-month period.

Except as exp ressly modified herein, all other terms and conditions of Section 4 of the Lease, including the annual rent increases set forth in Section 4(d) of the Lease, shall remain unchanged and in full force and effect.
(b) Section 11(a) of the Lease titled “ Landlord’s Repair and Maintenance” is hereby amended so that the last sentence of that subsection reads as follows (with the added words shown in bold):

“Landlord shall not be required to make any repairs to the roof, structural foundation, or exterior walls unless and until Tenant has notified Landlord in writing of the need for such repairs and Landlord shall have had a reasonable period thereafter to co mmence and complete the repairs.”
(c) Section 16(b) of the Lease titled “Liability Insurance” is hereby amended so that the insurance limits stated therein are clarified and corrected. The first sentence of Section 16(b) shall read as follows:
“A policy of commercial general liability insurance (occurrence form) having a combined single limit of not less than Two Million Dollars ($2,000,000) per occurrence, Four Million Dollars ($4,000,000) in aggregate, providing coverage for, among other things, blanket contractual liability…”
199
16498.00372\44602605.2

2 3. Option to Renew.

4. Back Rent; Separate Agreement.

The parties acknowledge that Section 4(a) of the Lease addresses bac k rent for Tenant’s prior occupancy of the Property beginning on or about July 1, 2015. As of the effective date of this First Amendment, the total amount in back rent owed is $ 78,075.68. The Lease further provides that a separate agreement between the parties governs the terms of payment of such back rent. The parties acknowledge that the separate agreement remains in effect. Except as expressly stated in this First Amendment, nothing herein is intended to modify the amount of back rent or the terms governing its payment, which shall continue to be governed by the separate agreement.

5. Ratification; Miscellaneous.
(a) This First Amendment contains the entire agreement between the parties concerning the subject matter hereof, and except as modified by this First Amendment, in all other respects the Lease is remains in full force and effect. (b) This First Amendment may be executed in one or more counterparts. All terms of the Lease and its Addendums (including this First Amendment) shall remain current, valid and in force upon full execution of this First Amendment.
(c) Subject to the provisions of the Lease prohibiting or limiting the Tenant’s right to assign the Lease, otherwise transfer any inter est in the Lease, sublease the p remises or otherwise allow any other person to occupy or use the leased premises , the provisions of this First Amendment shall be binding upon and inure to the benefit of the parties to this First Amendment and their successors in interest.
[SIGNATURES ON FOLLOWING PAGE]

200
16498.00372\44602605.2

3 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment as of the date last written below.

LANDLORD TENANT

CITY OF FONTANA,
a municipal corporation
By:

Name:

Its:

Dated: _________________________

FONTANA FIRE PROTECTION DISTRICT,
a subsidiary district of the City of Fontana
By:

Name:

Its:

Dated: _________________________
APPROVED AS TO FORM:

BEST BEST & KRIEGER LLP
By: _______________________________

201
16498.00372\44602824.2

1 FONTANA FIRE STATION NO. 77

1. Background. Landlord and Tenant entered into a Commercial Lease Agreement dated [INSERT DATE] (the “Lease”) for the purpose of leasing commercial property located at 17459 Slover Ave., Fontana, California, 92335 , in the City of Fontana California (APN 0256-011-22) (the “Property”). The Property is improved with Fire Station No. 77 and other improvements .

2. Lease Modifications:
(a) Section 4 of the Lease titled “Rent” is hereby amended as follows:

Effective as of March 1, 2026, the annual rent set forth in Section 4 of the Lease is increased by ten percent (10%). From and after such date, the annual rent shall be $1.05 per square foot per month, or $91,932.75 per month, and $551,596.50 for each six-month period.

Except as expressly modified herein, all other terms and conditions of Section 4 of the Lease, including the annual rent increases set forth in Section 4(d) of the Lease, shall remain unchanged and in full force and effect.
(b) Section 11(a) of the Lease titled “ Landlord’s Repair and Maintenance” is hereby amended so that the last sentence of that subsection reads as follows (with the added words shown in bold):

“Landlord shall not be required to make any repairs to the roof, structural foundation, or exterior walls unless and until Tenant has notified Landlord in writing of the need for such repairs and Landlord shall have had a reasonable period thereafter to co mmence and complete the repairs.”
(c) Section 16(b) of the Lease titled “Liability Insurance” is hereby amended so that the insurance limits stated therein are clarified and corrected. The first sentence of Section 16(b) shall read as follows:
“A policy of commercial general liability insurance (occurrence form) having a combined single limit of not less than Two Million Dollars ($2,000,000) per occurrence, Four Million Dollars ($4,000,000) in aggregate, providing coverage for, among other things, blanket contractual liability…”
202
16498.00372\44602824.2

2 3. Option to Renew.

4. Back Rent; Separate Agreement.

The parties acknowledge that Section 4(a) of the Lease addresses back rent for Tenant’s prior occupancy of the Property beginning on or about July 1, 2015. As of the effective date of this First Amendment, the total amount in back rent owed is $104,620.70. The Lease further provides that a separate agreement between the parties governs the terms of payment of such back rent. The parties acknowledge that the separate agreement remains in effect. Except as expressly stated in this First Amendment, nothing herein is intended to modify the amount of back rent or the terms governing its payment, which shall continue to be governed by the separate agreement.

5. Ratification; Miscellaneous.
(a) This First Amendment contains the entire agreement between the parties concerning the subject matter hereof, and except as modified by this First Amendment, in all other respects the Lease is remains in full force and effect. (b) This First Amendment may be executed in one or more counterparts. All terms of the Lease and its Addendums (including this First Amendment) shall remain current, valid and in force upon full execution of this First Amendment.
(c) Subject to the provisions of the Lease prohibiting or limiting the Tenant’s right to assign the Lease, otherwise transfer any inter est in the Lease, sublease the p remises or otherwise allow any other person to occupy or use the leased premises , the provisions of this First Amendment shall be binding upon and inure to the benefit of the parties to this First Amendment and their successors in interest.
[SIGNATURES ON FOLLOWING PAGE]

203
16498.00372\44602824.2

3 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment as of the date last written below.

LANDLORD TENANT

CITY OF FONTANA,
a municipal corporation
By:

Name:

Its:

Dated: _________________________

FONTANA FIRE PROTECTION DISTRICT,
a subsidiary district of the City of Fontana
By:

Name:

Its:

Dated: _________________________
APPROVED AS TO FORM:

BEST BEST & KRIEGER LLP
By: _______________________________

204
16498.00372\44603567.2

1 FONTANA FIRE STATION NO. 78

1. Background. Landlord and Tenant entered into a Commercial Lease Agreement dated [INSERT DATE] (the “Lease”) for the purpose of leasing commercial property located at 7110 Citrus Ave., Fontana, California, 92335, in the City of Fontana California (APN 0228-233-01) (the “Property”). The Property is improved with Fire Station No. 78 and other improvements. The Parties desire to amend certain provisions of the Lease as provided herein. Capitalized terms used in this First Amendment without definition shall have the same meaning given to such terms in the Lease. To the extent of any inconsistency, this First Amendment shall rule over the provisions of the Lease.

2. Lease Modifications:
(a) Section 4 of the Lease titled “Rent” is hereby amended as follows:

Effective as of March 1, 2026, the annual rent set forth in Section 4 of the Lease is increased by ten percent (10%). From and after such date, the annual rent shall be $1.05 per square foot per month, or $75, 552.75 per month, and $453,316.50 for each six-month period.

Except as expressly modified herein, all other terms and conditions of Section 4 of the Lease, including the annual rent increases set forth in Section 4(d) of the Lease, shall remain unchanged and in full force and effect.
(b) Section 11(a) of the Lease titled “ Landlord’s Repair and Maintenance” is hereby amended so that the last sentence of that subsection reads as follows (with the added words shown in bold):

“Landlord shall not be required to make any repairs to the roof, structural foundation, or exterior walls unless and until Tenant has notified Landlord in writing of the need for such repairs and Landlord shall have had a reasonable period thereafter to commence and complete the repairs.”
(c) Section 16(b) of the Lease titled “Liability Insurance” is hereby amended so that the insurance limits stated therein are clarified and corrected. The first sentence of Section 16(b) shall read as follows:
“A policy of commercial general liability insurance (occurrence form) having a combined single limit of not less than Two Million Dollars ($2,000,000) per occurrence, Four Million Dollars ($4,000,000) in aggregate, providing coverage for, among other things, blanket contractual liability…”
205
16498.00372\44603567.2

2 3. Option to Renew.

4. Back Rent; Separate Agreement.

The parties acknowledge that Section 4(a) of the Lease addresses back rent for Tenant’s prior occupancy of the Property beginning on or about July 1, 2015. As of the effective date of this First Amendment, the total amount in back rent owed is $ 85,980.04. The Lease further provides that a separate agreement between the parties governs the terms of payment of such back rent. The parties acknowledge that the separate agreement remains in effect. Except as expressly stated in this First Amendment, nothing herein is intended to modify the amount of back rent or the terms governing its payment, which shall continue to be governed by the separate agreement.

5. Ratification; Miscellaneous.
(a) This First Amendment contains the entire agreement between the parties concerning the subject matter hereof, and except as modified by this First Amendment, in all other respects the Lease is remains in full force and effect. (b) This First Amendment may be executed in one or more counterparts. All terms of the Lease and its Addendums (including this First Amendment) shall remain current, valid and in force upon full execution of this First Amendment.
(c) Subject to the provisions of the Lease prohibiting or limiting the Tenant’s right to assign the Lease, otherwise transfer any inter est in the Lease, sublease the p remises or otherwise allow any other person to occupy or use the leased premises , the provisions of this First Amendment shall be binding upon and inure to the benefit of the parties to this First Amendment and their successors in interest.
[SIGNATURES ON FOLLOWING PAGE]

206
16498.00372\44603567.2

3 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment as of the date last written below.

LANDLORD TENANT

CITY OF FONTANA,
a municipal corporation
By:

Name:

Its:

Dated: _________________________

FONTANA FIRE PROTECTION DISTRICT,
a subsidiary district of the City of Fontana
By:

Name:

Its:

Dated: _________________________
APPROVED AS TO FORM:

BEST BEST & KRIEGER LLP
By: _______________________________

207
16498.00372\44603684.2

1 FONTANA FIRE STATION NO. 79

1. Background. Landlord and Tenant entered into a Commercial Lease Agreement dated [INSERT DATE] (the “Lease”) for the purpose of leasing commercial property located at 5075 Coyote Canyon Rd., Fontana, California, 92335 , in the City of Fontana California (APN 1107- 262-58) (the “ Property”). The Property is improved with Fire Station No. 79 and other improvements. The Parties desire to amend certain provisions of the Lease as provided herein .

Capitalized terms used in this First Amendment without definition shall have the same meaning given to such terms in the Lease. To the extent of any inconsistency, this First Amendment shall rule over the provisions of the Lease.

2. Lease Modifications:
(a) Section 4 of the Lease titled “Rent” is hereby amended as follows:

Effective as of March 1 , 2026, the annual rent set forth in Section 4 of the Lease is increased by ten percent (10%). From and after such date, the annual rent shall be $1.05 per square foot per month, or $91,534.80 per month, and $549,208.80 for each six-month period.

Except as expressly modified herein, all other terms and conditions of Section 4 of the Lease, including the annual rent increases set forth in Section 4(d) of the Lease, shall remain unchanged and in full force and effect.
(b) Section 11(a) of the Lease titled “ Landlord’s Repair and Maintenance” is hereby amended so that the last sentence of that subsection reads as follows (with the added words shown in bold):

“Landlord shall not be required to make any repairs to the roof, structural foundation, or exterior walls unless and until Tenant has notified Landlord in writing of the need for such repairs and Landlord shall have had a reasonable period thereafter to co mmence and complete the repairs.”
(c) Section 16(b) of the Lease titled “Liability Insurance” is hereby amended so that the insurance limits stated therein are clarified and corrected. The first sentence of Section 16(b) shall read as follows:
“A policy of commercial general liability insurance (occurrence form) having a combined single limit of not less than Two Million Dollars ($2,000,000) per occurrence, Four Million Dollars ($4,000,000) in aggregate, providing coverage for, among other things, blanket contractual liability…”
208
16498.00372\44603684.2

2 3. Option to Renew.

4. Back Rent; Separate Agreement.

The parties acknowledge that Section 4(a) of the Lease addresses bac k rent for Tenant’s prior occupancy of the Property beginning on or about July 1, 2015. As of the effective date of this First Amendment, the total amount in back rent owed is $104,167.82. The Lease further provides that a separate agreement between the parties governs the terms of payment of such back rent. The parties acknowledge that the separate agreement remains in effect. Except as expressly stated in this First Amendment, nothing herein is intended to modify the amount of back rent or the terms governing its payment, which shall continue to be governed by the separate agreement.

5. Ratification; Miscellaneous.
(a) This First Amendment contains the entire agreement between the parties concerning the subject matter hereof, and except as modified by this First Amendment, in all other respects the Lease is remains in full force and effect. (b) This First Amendment may be executed in one or more counterparts. All terms of the Lease and its Addendums (including this First Amendment) shall remain current, valid and in force upon full execution of this First Amendment.
(c) Subject to the provisions of the Lease prohibiting or limiting the Tenant’s right to assign the Lease, otherwise transfer any inter est in the Lease, sublease the p remises or otherwise allow any other person to occupy or use the leased premises , the provisions of this First Amendment shall be binding upon and inure to the benefit of the parties to this First Amendment and their successors in interest.
[SIGNATURES ON FOLLOWING PAGE]

209
16498.00372\44603684.2

3 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment as of the date last written below.

LANDLORD TENANT

CITY OF FONTANA,
a municipal corporation
By:

Name:

Its:

Dated: _________________________

FONTANA FIRE PROTECTION DISTRICT,
a subsidiary district of the City of Fontana
By:

Name:

Its:

Dated: _________________________
APPROVED AS TO FORM:

BEST BEST & KRIEGER LLP
By: _______________________________

210
16498.00372\44601770.2

1 FONTANA FIRE STATION NO. 81

FIRST AMENDMENT TO COMMERCIAL LEASE AGREEMENT
This First Amendment to the Lease Agreement (“First Amendment”) is made as of March 1, 2026 , (Effective Date) by and between the CITY OF FONTANA , a municipal corporation (“Landlord”) and FONTANA FIRE PROTECTION DISTRICT, a subsidiary district of the City of Fontana (“Tenant”); collectively, the “Parties.”

1. Background. Landlord and Tenant entered into a Commercial Lease Agreement dated [INSERT DATE] (the “Lease”) for the purpose of leasing commercial property located at 16615 Casa Grande Avenue, Fontana, California, 92335 , in the City of Fontana California (APN 1118- 371-37) (the “ Property”). The Property is improved with Fire Station No. 81 and other improvements. The Parties desire to amend certain provisions of the Lease as provided herein .

2. Lease Modifications:
(a) Section 4 of the Lease titled “Rent” is hereby amended as follows:

Effective as of March 1, 2026, the annual rent set forth in Section 4 of the Lease is increased by ten percent (10%). From and after such date, the annual rent shall be $1.05 per square foot per month, or $61,080.60 per month, and $366,483.60 for each six-month period.

Except as exp ressly modified herein, all other terms and conditions of Section 4 of the Lease, including the annual rent increases set forth in Section 4(c) of the Lease, shall remain unchanged and in full force and effect.
(b) Section 11(a) of the Lease titled “ Landlord’s Repair and Maintenance” is hereby amended so that the last sentence of that subsection reads as follows (with the added words shown in bold):

“Landlord shall not be required to make any repairs to the roof, structural foundation, or exterior walls unless and until Tenant has notified Landlord in writing of the need for such repairs and Landlord shall have had a reasonable period thereafter to co mmence and complete the repairs.”
(c) Section 16(b) of the Lease titled “Liability Insurance” is hereby amended so that the insurance limits stated therein are clarified and corrected. The first sentence of Section 16 (b) shall read as follows:
“A policy of commercial general liability insurance (occurrence form) having a combined single limit of not less than Two Million Dollars ($2,000,000) per occurrence, Four Million Dollars ($4,000,000) in aggregate, providing coverage for, among other things, blanket contractual liability…”
211
16498.00372\44601770.2

2 3. Option to Renew.

4. Ratification; Miscellaneous.
(a) This First Amendment contains the entire agreement between the parties concerning the subject matter hereof, and except as modified by this First Amendment, in all other respects the Lease is remains in full force and effect. (b) This First Amendment may be executed in one or more counterparts. All terms of the Lease and its Addendums (including this First Amendment) shall remain current, valid and in force upon full execution of this First Amendment.
(c) Subject to the provisions of the Lease prohibiting or limiting the Tenant’s right to assign the Lease, otherwise transfer any inter est in the Lease, sublease the premises or otherwise allow any other person to occupy or use the leased premises , the provisions of this First Amendment shall be binding upon and inure to the benefit of the parties to this First Amendment and their successors in interest.
[SIGNATURES ON FOLLOWING PAGE]

212
16498.00372\44601770.2

3 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment as of the date last written below.

LANDLORD TENANT

CITY OF FONTANA,
a municipal corporation
By:

Name:

Its:

Dated: _________________________

FONTANA FIRE PROTECTION DISTRICT,
a subsidiary district of the City of Fontana
By:

Name:

Its:

Dated: _________________________
APPROVED AS TO FORM:

BEST BEST & KRIEGER LLP
By: _______________________________

213
City of Fontana
Action Report
City Council Meeting
8437 Sierra Avenue
Fontana, CA 92335
File #: 26-0860 Agenda Date: 3/10/2026
Agenda #: J. Category: Consent Calendar
FROM:

City Manager's Office
SUBJECT:

A Resolution of the City Council of the City of Fontana Approving Measure I Continuation Expenditure Plan developed by the Board of Directors of the San Bernardino Council Transportation Authority (SBCTA).

RECOMMENDATION:

Adopt Resolution No. 2026-016, Approving Measure I Continuation of the Transportation Expenditure Plan developed by the Board of Directors of the San Bernardino County Transportation Authority (Exhibit A).

COUNCIL GOALS:
· Practice sound fiscal management by living within our means while investing in the future. · Practice sound fiscal management by developing long-term funding and debt management plans.
· Concentrate on Inter-governmental relations by working cooperatively with neighboring jurisdictions.
· Concentrate on Inter-governmental relations by establishing partnerships and positive working relationships with other public agencies providing services to residents and local businesses. · Concentrate on Inter-governmental relations by pursuing financial participation from county, state and federal governments.
· Invest in the City’s infrastructure (streets, sewers, parks, etc.) by utilizing Measure-I Funds wisely.

DISCUSSION:

Measure I is San Bernardino County’shalf-cent sales tax dedicated to transportation improvements, first approved by voters in 1989 and extended in 2004. Administered by the San Bernardino County Transportation Authority (SBCTA), Measure I ensures that funds are reinvested locally through a “return-to-source” policy, meaning each region benefits directly from the revenue it generates.

Measure I has funded a wide range of projects, from freeway expansion and interchange upgrades to public transit enhancements and local road repairs. The one-half of one percent transactions and use tax is set to expire in 2040. SBCTA has prepared an Expenditure Plan for the revenues expected to be derived from the proposed continuation of Measure I, which is anticipated to be placed on the November 3, 2026, ballot.

If approved by the voters, the continuation of Measure I would not institute a new tax, but continue City of Fontana Printed on 3/5/2026Page 1 of 2
powered by Legistar™
214
File #: 26-0860 Agenda Date: 3/10/2026
Agenda #: J. Category: Consent Calendar
If approved by the voters, the continuation of Measure I would not institute a new tax, but continue the existing one-half of one percent sales tax for transportation after April 1, 2040.

FISCAL IMPACT:

If passed, it would generate an estimated $7.5 billion for the region in its first 30 years for local transportation projects.

MOTION:

Approve staff recommendation.

City of Fontana Printed on 3/5/2026Page 2 of 2
powered by Legistar™
215

Page 1 of 2 ends

RESOLUTION NO. 2026-016

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

CALIFORNIA, APPROVING THE EXPENDITURE PLAN FOR THE

EXPENDITURE OF REVENUES IN SAN BERNARDINO COUNTY

EXPECTED TO BE DERIVED FROM THE PROPOSED CONTINUATION
OF MEASURE I.

WHEREAS, the voters of San Bernardino County passed Measure I in November 1989 and renewed it in 2004, authorizing San Bernardino Associated Governments, acting as the San Bernardino Coun ty Transportation Authority, to impose a one -half of one percent transactions and use tax for transportation improvements, applicable in the incorporated and unincorporated territory of the County of San Bernardino, through April 1, 2040, and

WHEREAS, Measure I has provided funding for numerous transportation projects, including freeways, local roads, major streets, interchanges, the Metrolink commuter train system, public buses, traffic signals, and more; and

WHEREAS, the imposition of the one-half of one percent transactions and use tax is set to expire in 2040, and

WHEREAS, San Bernardino County Transportation Authority, after engagement with private sector stakeholders and city and County representatives, has prepared an Expenditure Plan for the revenues expected to be derived from the proposed continuation of Measure I, which is anticipated to be placed on the November 3, 2026, ballot, and

WHEREAS, the proposed Expenditure Plan for the continuation of Measure I is attached hereto as Exhibit A, and

WHEREAS, if approved by the voters, the continuation of Measure I would authorize the collection of a one-half of one percent sales tax and generate an estimated $7.5 billion in its first 30 years for local transportation projects, and

WHEREAS, if approved by the voters, the continuation of Measure I would not institute a new tax, but continue the existing one -half of one percent sales tax for transportation after April 1, 2040, and

WHEREAS, revenues raised from the continuation of Measure I would rem ain in San Bernardino County and could not be allocated by the state or federal government, and
WHEREAS, Measure I would provide a long -term funding source to help fight traffic congestion; improve local streets, major roads and highways; and enhance San Bernardino County’s economy by providing construction-related jobs, manufacturing jobs, and an effective transportation system to meet the needs of residents and the business community, and
216

Page 2 of 2 ends

Resolution No. 2026-016

WHEREAS, Public Utilities Code section 180206 requires that the Measure I Continuation Expenditure Plan be approved by the County Board of Supervisors and a majority of the cities representing a majority of the population residing in incorporated areas,

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fontana, California, hereby approves the Measure I Continuation Expenditure Plan developed by the Board of Directors of the San Bernardino County Transportation Authority (Exhibit A).

APPROVED AND ADOPTED this 10th day of March, 2026.

READ AND APPROVED AS TO LEGAL FORM:

____________________________________
City Attorney

AYES:

NOES:

ABSENT:

ABSTAIN:

____________________________________
City Clerk of the City of Fontana

____________________________________
Mayor of the City of Fontana

ATTEST:

____________________________________
City Clerk

217

Exhibit A
Transportation Expenditure Plan
Revenue Estimates and Distribution. Allocation of revenue authorized by Ordinance No. 26-1 is established within this Expenditure Plan. Funds shall be allocated by percentage of the actual revenue received. An estimate of revenues and allocation among categories for the first 30 years is $7.5 billion. The estimated revenue is based upon 2026 value of money and is not binding or controlling.

Return to Source. After deduction of required CDTFA fees, funds dedicated for the Interregional Mobility Expenditure Plan and authorized administrative costs, revenues generated from each specified Subarea within San Bernardino County will be expended on projects of direct benefit to that Subarea.

Revenues will be accounted for separately for each Subarea and then allocated to specified project categories. Decisions on how revenues for certain project categories are expended within the Subareas will be made by the Authority Board of Directors, based upon recommendation of local representatives.

Subarea Identification. The San Bernardino Valley Subarea will include the cities of Chino, Chino Hills, Colton, Fontana, Grand Terrace, Highland, Loma Linda, Montclair, Ontario, Rancho Cucamonga, Redlands, Rialto, San Bernardino, Upland and Yucaipa and unincorporated areas in the east and west portions of the San Bernardino valley urbanized area. The Mountain/Desert area will include the following subareas: (1) The North Desert Subarea, which includes the City of Barstow and surrounding unincorporated areas; (2) The Colorado River Subarea, which includes the City of Needles and the surrounding unincorporated areas of the East Desert; (3) The Morongo Basin Subarea, which includes the City of Twentynine Palms, Town of Yucca Valley, and surrounding unincorporated areas; (4) The Mountain Subarea, which includes the City of Big Bear Lake and surrounding unincorporated areas of the San Bernardino Mountains; and (5) the Victor Valley Subarea, which includes the Cities of Adelanto, Hesperia, and Victorville; the Town of Apple Valley; and surrounding unincorporated areas including Wrightwood.

Contribution from New Development. No revenue generated from the tax shall be used to replace the fair share contributions required from new development as further described in Section 8 of the Ordinance.

Requirement for Annual Financial and Compliance Audits of Measure Funds. The San Bernardino County Transportation Authority shall undergo a biennial financial audit, and each local jurisdiction receiving an allocation of Measure revenue authorized in this Expenditure Plan shall undergo an annual financial audit, with all audits to be performed in accordance with generally accepted auditing standards and government auditing standards issued by the Comptroller General of the United States. Compliance audits also shall be conducted to ensure that each agency is expending funds in accordance with the provisions and guidelines established for Measure revenue including compliance with Maintenance of Effort provisions

The Interregional Mobility Expenditure Plan. Upon initial collection of revenue, 3% of the revenue generated across all San Bernardino County subareas will be reserved in advance of other allocations specified in this plan, in an account for the Interregional Mobility Expenditure Plan. The Interregional Mobility Expenditure Plan will provide resources for the planning and implementation of projects and programs that provide critical infrastructure to communities impacted by regional motorist, tourism, interregional travel, and goods movement. This program will help plan and deliver critical infrastructure improvements, such as enhancements in the Cajon Pass and other key corridors, that address congestion, 218

enhance mobility, improve safety, and strengthen resilience. It will also support evacuation planning, bolster emergency response capabilities, improve primary evacuation routes, and fund transit-related evacuation needs. In addition, the program will be available to address unexpected infrastructure damage resulting from natural or human-caused disasters, ensuring rapid recovery and the restoration of essential interregional mobility.

San Bernardino Valley Subarea Expenditure Plan. In that area described as the San Bernardino Valley Subarea, and referred to herein as the Valley Subarea, project categories shall be established as specified below. The San Bernardino Valley Subarea Expenditure Plan is illustrated in Figure A.

A. State and Federal Transportation Funds. A proportional share of projected state and federal transportation funds shall be reserved for use solely within the Valley Subarea.

B. Local Mobility 25%. Local priorities that focus on local roadway, bikeway, and sidewalk construction, repair, and maintenance for improved localized movement. Includes pass through for local priorities such as: local street widening & rehabilitation, potholes, grade separations, sidewalks, bike lanes, streetlights, and quiet zones. Allocations to local jurisdictions shall be on a per capita basis using the most recent State Department of Finance population estimates for January 1, with the County's portion based upon unincorporated population in the Valley Subarea. Estimates of unincorporated population within the Valley Subarea shall be determined by the County Planning Department, reconciled with the State Department of Finance population estimate for January 1 of each year.

Upon initial collection of revenue, each local jurisdiction shall reserve 5% of allocated revenue in a special account to be expended on active transportation projects. Eligible active transportation projects may include, at the discretion of the local jurisdiction, bicycle and pedestrian projects and costs for associated studies or plans. If, after at least ten years of revenue collection, the local jurisdiction’s governing body makes a finding that the reserve for active transportation projects is no longer necessary, and the Authority Board of Directors subsequently approves the finding, then all Local Mobility funds allocated to the local jurisdiction may be used for any eligible purpose.

Local Mobility projects are defined as local street and road construction, repair, and maintenance and other eligible local transportation priorities. Except as set forth herein, Local Mobility funds can be used flexibly for any eligible transportation purpose determined to be a local priority, including local streets, major highways, state highway improvements, transit, and other improvements/programs to maximize use of transportation facilities. Expenditure of Local Mobility funds shall be based upon a Five-Year Plan adopted annually by the governing body of each local jurisdiction after being made available for public review and comment. Local Mobility funds shall be disbursed to local jurisdictions upon receipt of the annually adopted Five-Year Plan. The locally adopted Five-Year Plan shall be consistent with local, regional, and state transportation plans.

C. Regional Mobility 50%. Regional priorities that focus on goods movement, transit, managed lanes, congestion management, and emerging transportation technologies to enhance regional movement and include: highway improvements, bus and passenger rail (capital and rehabilitation), corridors, interchanges, environmental mitigation, traffic management systems (freeway service patrol and air quality strategies), quiet zones, planning and project development, and emerging transportation technology.

Regional Mobility projects are defined as congestion relief and safety improvements to corridors that connect communities, serve major destinations, and provide freeway access. Decisions on how Regional Mobility funds are expended will be made by the Authority Board of Directors, based upon recommendation of local jurisdiction representatives. Funding priorities shall be given to improving roadway safety, relieving congestion, and street improvements at rail crossings and shall take into 219

account equitable geographic distribution over the life of the program. Eligible projects also include, but are not limited to, signal synchronization, systems to improve traffic flow, commuter assistance programs, freeway service patrol, and projects that contribute to environmental enhancement associated with transportation facilities.

D. Operations 25%. Resourcing the operational costs for providing mobility services via rail, transit, senior and specialized services, first/last mile connections, ridesharing, and safety support functions.

Decisions on how Operations funds are expended will be made by the Authority Board of Directors, based upon recommendations of local jurisdiction representatives. Funding priorities shall be given to maintaining core services across all modes of mobility.

Mountain/Desert Expenditure Plan. In that area described as the Mountain/Desert area, the following Expenditure Plan requirements shall apply. The Mountain/Desert Subarea Expenditure Plan is illustrated in Figure B.

A. State and Federal Transportation Funds. A proportional share of projected state and federal transportation funds shall be reserved for use solely within the Mountain/Desert Subareas.

B. Local Mobility 70%. Local priorities that focus on local roadway, bikeway, and sidewalk construction, repair, and maintenance for improved localized movement. Includes pass through for local priorities such as: local street widening & rehabilitation, potholes, grade separations, sidewalks, bike lanes, and streetlights. Allocations to local jurisdictions shall be based upon population (50 percent) and tax generation (50 percent). Population calculations shall be based upon the most current State Department of Finance estimates for January 1 of each year. Estimates of unincorporated population within each Subarea shall be determined by the County Planning Department, reconciled with the State Department of Finance population estimate. Tax generation calculations shall be based upon CDTFA data.

Upon initial collection of revenue, each local jurisdiction shall reserve 5% of allocated revenue in a special account to be expended on active transportation projects. Eligible active transportation projects may include, at the discretion of the local jurisdiction, but are not limited to, bicycle and pedestrian projects and costs for associated studies or plans. If, after at least ten years of revenue collection, the local jurisdiction’s governing body makes a finding that the reserve for active transportation projects is no longer necessary, and the Authority Board of Directors subsequently approves the finding, then all Local Mobility funds allocated to the jurisdiction may be used for any eligible purpose.

Local Mobility projects are defined as local street and road construction, repair, and maintenance and other eligible local transportation priorities. Except as set forth herein, Local Mobility funds can be used flexibly for any eligible transportation purpose determined to be a local priority, including local roads, major streets, state highway improvements, transit, including but not limited to, fare subsidies and service enhancements for seniors and persons with disabilities, and other improvements/programs to maximize use of transportation facilities. Expenditure of Local Mobility funds shall be based upon a Five-Year Plan adopted annually by the governing body of each local jurisdiction after being made available for public review and comment. Local Mobility funds shall be disbursed to local jurisdictions upon receipt of the annually adopted Five-Year Plan. The locally adopted Five-Year Plans shall be consistent with other local, regional, and state transportation plans.

C. Regional Mobility 20%. Regional priorities that focus on goods movement, transit, managed lanes, congestion management, and emerging transportation technologies to enhance regional movement and include: highway improvements, bus and passenger rail (capital and rehabilitation), corridors, interchanges, environmental mitigation, traffic management systems (freeway service patrol and air quality strategies), planning and project development, and emerging transportation technology. 220

Revenue collected within each Subarea shall be reserved in a special account to be expended on Regional Mobility projects of benefit to the Subarea. Regional Mobility projects are defined as major streets and highways serving as primary routes of travel within the Subarea, which may include State highways and freeways, where appropriate. Regional Mobility Projects funds can be used to leverage state and federal funds for transportation projects and to perform advance planning/project reports.

Expenditure of Regional Mobility funds shall be approved by the Authority Board of Directors, based upon a recommendation of Subarea representatives and the Mountain/Desert Policy Committee. If, after five years of revenue collection and every five years thereafter, the local representatives and the Mountain/Desert Policy Committee make a finding that Regional Mobility funds are not required for improvements of benefit to the Subarea, then revenue in the Regional Mobility category may be returned to local jurisdictions within the Subarea. Such return shall be allocated and expended based upon the formula and requirements established in the Local Mobility category.

D. Operations 10%. Resourcing the operational costs for providing mobility services via rail, transit, senior and specialized services, first/last mile connections, ridesharing, and safety support functions.

Decisions on how Operations funds are expended will be made by the Authority Board of Directors, based upon recommendation of Subarea representatives and the Mountain/Desert Policy Committee and/or Transit Committee. Funding priorities shall be given to maintaining core services across all modes of mobility services.

The Authority Board of Directors, based upon recommendation of Subarea representatives and the Mountain/Desert Policy Committee, may provide additional funding beyond 10% upon a finding that such increase is required to address unmet transit needs of the Subarea. All increases above the 10% initial revenue collected for the Operations category shall come from the Local Mobility category of the Subarea.

E. Mountain/Desert Policy Committee. The Mountain/Desert Policy Committee of the Authority shall remain in effect and provide oversight of the implementation of the Mountain/Desert Expenditure Plan.

221

Measure “I”
Transportation Expenditure Plan

FIGURE A
San Bernardino Valley Subarea Expenditure Plan
222

14 FIGURE B
Mountain Desert Expenditure Plan

223

Exhibit “B”
Independent Taxpayer Oversight Committee (ITOC)
ITOC Goal and Function. Voter approval of this Measure shall result in the continuation of the existing Independent Taxpayer and Oversight Committee (ITOC) as follows:

The ITOC shall provide citizen review to ensure that all Measure funds are spent by the San Bernardino County Transportation Authority (hereby referred to as the Authority) in accordance with provisions of the Expenditure Plan and Ordinance No. 26-1, Measure I and the Measure I Expenditure Plan.

Audit Requirement. A bi-annual fiscal and compliance audit shall be performed in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. The audit shall review the basic financial statements of the Authority as defined by the Governmental Accounting Standards Board and the financial and compliance audits of the member jurisdictions.

Role of Financial and Compliance Audit and the ITOC. The ITOC shall review the annual audits of the Authority; report findings based on the audits to the Authority; and recommend any additional audits for consideration that the ITOC believes may improve the financial operation and integrity of program implementation.

The Authority shall hold a publicly noticed meeting, which may or may not be included on the agenda of a regularly scheduled Authority Board of Directors meeting, with the participation of the ITOC to consider the findings and recommendations of the audits.

Membership and Selection Process. The Authority shall have an open process to select five committee members, which shall include solicitation of trade and other organizations to suggest potential nominees to the committee. The committee members shall possess one of the following credentials:

• Professional in the field of municipal audit, finance and/or budgeting with a minimum of five years in a relevant and senior decision-making position in the public or private sector.

• Licensed civil engineer or trained transportation planner with at least five years of demonstrated experience in the fields of transportation and/or urban design in government and/or the private sector. No member shall be a recipient or sub-recipient of Measure funding.

• Three public members who possess knowledge and skills that will be helpful to the work of the ITOC.
224

The Chair and the Executive Director of the Authority shall serve as ex-officio members of the ITOC.

Terms and Conditions for Committee. Committee members shall serve staggered four-year terms. In no case shall any voting committee member serve more than twelve years on the ITOC.

 Committee members shall serve without compensation, except they shall be reimbursed for authorized travel and other expenses directly related to the work of the ITOC.  Committee members cannot be a current local elected official in the County or a full-time staff member of any city/town, the County government, local transit operator, or state transportation agency.
 Non-voting ex-officio committee members shall serve only as long as they remain incumbents in their respective positions and shall be automatically replaced by their successors in those positions.
 If vacancies on the ITOC occur, for any reason, Authority staff will collaborate with Authority Board members to find an appropriate replacement, within 90 days of the vacancy or as soon thereafter as possible, to fill the remainder of the term.  When more than one application is received for a vacancy, the General Policy Committee will make a recommendation to the Authority Board of Directors to appoint an applicant to the ITOC.
 When only one application is received, the Board President will recommend to the Board the applicant’s appointment to the ITOC.

ITOC Operation Protocols.
 The ITOC shall continue as long as Measure revenues are collected.  Authority Board of Directors and staff shall fully cooperate with and provide necessary support to ensure the ITOC successfully carries out its duties and obligations.

Conflict of Interest. ITOC voting members shall have no legal action pending against the Authority and are prohibited from acting in any commercial activity directly or indirectly involving the Authority, such as being a consultant during their tenure on the ITOC. ITOC voting members shall not have direct commercial interest or employment with any public or private entity that receives the transportation tax funds authorized by the voters in this Ordinance.

Exhibit C (Ballot Question)

Measure “I” Local Transportation Improvement Program

San Bernardino County Road Repair/Traffic Relief Extension Without raising tax rates, shall an ordinance to fund repairing potholes; keeping local roads in good condition; completing freeway/highway projects to improve traffic flow/safety, reduce traffic bottlenecks; 225

upgrading aging bridges/overpasses; creating local jobs; keeping student/senior/disabled/veteran transit fares low be adopted, extending the ½¢ voter-approved transportation sales tax, providing approximately $250,000,000 annually until ended by voters, requiring audits, oversight, spending disclosure, local control?

226

Fontana City CouncilMarch 10, 2026

Fontana City Council
March 10, 2026