Fontana City Council
June 23, 2026

Tuesday, June 23, 2026
2:00 PM
City of Fontana
8437 Sierra Avenue
Fontana, CA 92335
Regular Agenda
Ord. No.1993 Reso. No. 2026-054
Steelworkers' Auditorium
8437 Sierra Avenue
Fontana, Ca. 92335
City Council Meeting
Acquanetta Warren - Mayor
Peter A. Garcia - Mayor Pro Tem
John B. Roberts - Council Member
Jesus "Jesse" Sandoval - Council Member
Phillip Cothran - Council Member
Germaine Key - City Clerk
Janet Koehler-Brooks, City Treasurer
1 City Council Meeting Regular Agenda June 23, 2026
Welcome to a meeting of the Fontana City Council.

Welcome to a meeting of the Fontana City Council. Meetings are held at the Steelworker's Auditorium 8437 Sierra Avenue, Fontana, CA 92335. To address the Council, please fill out a card located at the entrance to the right indicating your desire to speak on either a specific agenda item or under Public Communications and give it to the City Clerk. Your name will be called when it is your turn to speak. In compliance with Americans with Disabilities Act of 1990 (42 USC § 12132), the Steelworker's Auditorium is wheelchair accessible, and a portable microphone is available. Upon request, this agenda will be made available in appropriate alternative forms to persons with disabilities, as required by Section 12132 of the Americans with Disabilities Act of 1990. Any person with a disability who requires accommodation to participate in a meeting should direct such a request to the City Clerk ’s Office at ( 909) 350-7602 at least 48 hours before the meeting, if possible. Any public record, relating to an open session agenda item, that is distributed within 72 hours prior to the meeting is available for public inspection at the City Clerk’s Office.

The City provides automated live translation services during City Council meetings. To request additional language assistance, please contact the City Clerk's Office at (909) 350-7602.

La Ciudad ofrece servicios automatizados de traducci ón en vivo durante las reuniones del Concejo Municipal. Para solicitar asistencia adicional en otros idiomas, comuníquese con la Oficina, “City Clerk” al (909) 350-7602.

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

A. Call To Order/Roll Call:

INVOCATION/PLEDGE OF ALLEGIANCE:

A. Invocation/Pledge of Allegiance:

CEREMONIAL/ SPECIAL PRESENTATIONS:

A. Ceremonial/ Special Presentations
A. Mayor Warren and City Council to recognize Corporal
Dustin Mullins, Officers Nicholas Straka, Gavin Rivers & Jon Gearhart, and Lead Property Technician Yvonne
Jimenez, Property Technicians Jeana Grantley, Roxana
Ramirez, & Adriana Barajas and Community Service Officer 26-1084

2 City Council Meeting Regular Agenda June 23, 2026
David Martinez as April 2026 Employees of the month.

B. Mayor Warren and City Council to recognize Dispatch Call Taker Joslynn Perez as May 2026 Employee of the month.
26-1085
C. Clean California Presentation 26-1096
PUBLIC COMMUNICATIONS:

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

A. Public Communications
CONSENT CALENDAR:

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

Approve Consent Calendar Items as recommended by staff.

A. Approval of Minutes 26-1083
Approve the minutes of June 9, 2026, Regular City Council Meeting.

Attachment No. 1- City Council Meeting Minutes
06-09-2026.pdf
Attachments:

B. Authorizing Sole Source Purchasing Practices of Econolite Traffic Equipment for the Highway Safety Improvement
Program (HSIP) TMS Signal Intersection Improvements
(HSIPSL-5307(037))
26-0991

1. Authorize Engineering Department to procure Econolite Traffic Equipment for the Highway Safety Improvement Program (HSIP) TMS Signal Intersection Improvements (HSIPSL-5307(037)), in the amount of $1,171,480.00 and authorize a 10% contingency in the amount of $117,148.00, utilizing the Purchasing Policy and Procedure Manual Section 3.1.5 Non-Competitive Proposal - Sole Source.

2. Approve and authorize the City Manager to enter into any and all utility agreements, utility easements, installation, and subsequent agreements on behalf of the City for the Highway Safety Improvement Program (HSIP) TMS Signal Intersection Improvements HSIPSL-5307(037).

3 City Council Meeting Regular Agenda June 23, 2026
Attachment No. 1 - Vicinity Map
Attachment No. 2 - Econolite's Equipment and Installation Quote.pdf
Attachment No. 3 - Econolite - TBD.pdf
Attachments:

C. Final Acceptance for the Demolition of 16756 and 16766 Arrow Blvd Project (PW-26-14-CC)
26-1001
Accept as complete the work performed by Interior Demolition Inc. for the Demolition Project (PW-26-14-CC) of 16756 and 16766 Arrow Blvd and approve the final amount of $218,101.70.

D. Adopt a Resolution Updating and Renewing Authorization for Participation in the CalRecycle Tire Cleanup (TCU)
Grant Program
26-1015
Adopt Resolution No. 2026-054, Authorizing the submittal of any and all payment program applications offered by CalRecycle.

Attachment No. 1- TCU20 Resolution.docxAttachments:

E. Approve a Development Impact Fee Credit Agreement for Parcel Map No. 20215
26-1041
Approve and authorize the City Manager to enter into a Development Impact Fee Credit Agreement with CIVF VI - CA1W02, LLC, a Delaware limited liability company, for the construction of Sewer, Storm Drain, and Circulation for Parcel Map No. 20215.

Attachment No. 1- Vicinity Map.pdf
Attachment No. 2- Parcel Map No. 20215-Development
Impact Fee Credit Agreement.pdf
Attachments:

F. Final Acceptance of Street and Sewer Improvements on Valencia Avenue for Tract No. 20546
26-1044

1. Accept as complete the street and sewer improvements for Tract No. 20546, located along Valencia Avenue between Oleander Avenue and Cypress Avenue.

2. Adopt Resolution No. 2026-055, accepting sewer on Valencia Avenue for Tract No. 20546 as part of the City sewer system.

Attachment No. 1 -SEWER ACCEPTANCE
RESOLUTION.docx
Attachment No. 2 - Vicinity Map.pdf
Attachment No. 3 - Subdivision Improvement Agreement.pdf Attachment No. 4 - Recorded Tract Map 20546.pdf
Attachments:

4 City Council Meeting Regular Agenda June 23, 2026
G. Award a Construction Contract for the City Sidewalk
Reconstruction #3 Project (DE-26-167-SB)
26-1045

1. Award bid and authorize the City Manager to enter into a construction contract with DT Stellar General Engineering for the construction of the City Sidewalk Reconstruction #3 Project in the amount of $808,161.00 and authorize a 25% contingency in the amount of $202,040.25 (DE-26- 167-SB).

2. Approve and authorize the City Manager to enter into any and all utility agreements, utility easements, and subsequent agreements on behalf of the City of Fontana for City Sidewalk Reconstruction #3 Project.

Attachment No. 1- Sidewalk Project Map #3.pdf
Attachment No. 2- Bid Results - City Sidewalk
Reconstruction #3.pdf
Attachment No. 3- Summary.pdf
Attachments:

H. 2026-27 Statement of Investment Policy 26-1053
Adopt the City of Fontana Statement of Investment Policy for Fiscal Year 2026-27.

Attachment No. 1- Fontana 2026-27 Investment Policy.docx Attachment No. 2- Fontana 2026-2027 Investment Policy
(Updated with WAL redline - 6.3.26).docx
Attachments:

I. Acceptance of Final Map for Tract No. 18973 26-1058

1. Approve the Final Map for Tract No. 18973, located on the west side of Date Street and north of Randall Avenue.

2. Accept dedication of a public easement.

3. Authorize the City Manager to enter into a Subdivision Agreement with the subdivider.

Attachment No. 1- TR 18973 VICINITY MAP.pdf
Attachment No. 2- TR 18973 Subdivision Improvement
Agreement.pdf
Attachment No. 3- TR 18973.pdf
Attachments:

J. Approve Task Order for Engineering Design Services with HR Green Pacific, Inc. for the SCE Undergrounding Acosta & Firebird Circuits Project (DE-24-195-SQ-14)
26-1064

1. Approve and authorize the City Manager to enter into a Task Order in a not-to exceed amount of $607,710.00 with HR Green Pacific, Inc. for engineering design services for the SCE Undergrounding Acosta & Firebird Circuits Project (DE-24-195-SQ-14).

2. Approve and authorize the City Manager to enter into any future

5 City Council Meeting Regular Agenda June 23, 2026
amendments to the Task Order in a not-to-exceed amount of $100,000.00.

3. Authorize the City Manager to enter into any and all utility agreements, utility easements, and any related items on behalf of the City of Fontana for the SCE Undergrounding Acosta & Firebird Circuits Project (DE-24- 195-SQ-14).

Attachment 1 - Vicinity Map
Attachment 2 - HR Green Pacific, Inc. Proposal
Attachments:

K. A Resolution of the City Council of the City of Fontana Approving a Development Impact Fee Deferral Agreement
Between the City of Fontana and SA Golden Investments
Inc. for a Multi-Family Residential Apartment Complex
Project and Authorizing the City Manager to Enter into the Agreement and Take Certain Actions to Complete the
Transaction.
26-1066
Adopt Resolution No. 2026-056, approving a Development Impact Fee Deferral Agreement between the City of Fontana and SA Golden Investments Inc. for a multi-family residential apartment complex project, and authorizing the City Manager to enter into the agreement and take certain actions to complete the transaction.

Attachment No. 1- BLD 801&802 Resolution.docx
Attachment No. 2- BLD 801&802 Dev. Impact Fee
Agreement.docx
Attachments:

L. Approve a Purchase and Sale Agreement between the City of Fontana and VRP, Inc ., a California Corporation, for the real property along Oleander Avenue
26-1073

1. Approve a Purchase and Sale Agreement between the City of Fontana and VRP, Inc., a California Corporation, for the sale of a small portion of real property along Oleander Avenue.

2. Authorize the City Manager to enter into a Purchase and Sale Agreement with VRP, Inc., a California Corporation.

Attachment No. 1- Purchase and Sale Agreement.pdf
Attachment No. 2- Vicinity Map - Oleander.pdf
Attachment No. 3- Resolution No. 2024-001 - Executed.pdf Attachment No. 4- Exhibit A - Caltrans Relinquishment - Oleander - 5702.pdf
Attachment No. 5- Appraisal - Oleander Ave.pdf
Attachments:

M. Fontana Police Helicopter Service Contract 26-1075

1. Approve a Service Agreement with HeliSafe, Inc. utilizing Purchasing

6 City Council Meeting Regular Agenda June 23, 2026
Policy and Procedure Manual 3.1.5 Non-Competitive Proposal - Single/Sole Source for the Fontana Police Department Air Support Unit Helicopters.

2. Authorize the City Manager (or his designee) to enter into a Service Agreement, all related documentation, and any amendments to continue this cooperative agreement as long as it is in the best interest of the City of Fontana.

Attachment No. 1- COMPLETED FPD HeliSafe PSA
PD-26-185-MS.docx
Attachments:

N. Levy of a Special Tax in Community Facilities Districts (Maintenance) for Fiscal Year 2026-2027.
26-1078
Adopt Resolution No. 2026-057, Authorizing the Levy of a Special Tax within Community Facilities Districts (Maintenance) for Fiscal Year 2026-2027.

Attachment No. 1 - Resolution
Attachment No. 2 - Exhibit A
Attachments:

O. Levy of a Special Tax in Community Facilities District No. 1 (Southridge Village) for Fiscal Year 2026-2027.
26-1079
Adopt Resolution No. 2026-058, Authorizing the Levy of a Special Tax in Community Facilities District No. 1 (Southridge) for Fiscal Year 2026-2027.

Attachment No. 1- Resolution
Attachment No. 2- Exhibit A
Attachments:

P. Levy of a Special Taxes for Fiscal Year 2026-27 with respect to Community Facilities Districts of City of
Fontana.
26-1080
Adopt Resolution No. 2026-059, of the City Council of the City of Fontana, California, authorizing the Levy of a Special Tax for the City of Fontana’s Community Facilities Districts for Fiscal Year 2026-2027.

Attachment No. 1 - Resolution
Attachment No. 2 - Exhibit A
Attachment No. 3 - Exhibit B
Attachments:

Q. Amendment No. 9 to the Waste Disposal Agreement with the County of San Bernardino
26-1082
Approve Amendment No. 9 to the Waste Disposal Agreement (WDA) with the County of San Bernardino

7 City Council Meeting Regular Agenda June 23, 2026
Attachment 1 - 1998 Waste Disposal Agreement.pdf
Attachment 2 - Amendment No. 9 to the Waste Disposal
Agreement
Attachments:

R. Recharge Recycled Water Contract with Fontana Water
Company
26-1091

1. Approve an Agreement regarding the transfer of recycled water recharged by the Inland Empire Utilities Agency for the City and transferred to the Fontana Water Company.

2. Authorize the City Manager to enter into the Agreement with the Fontana Water Company regarding the transfer of recycled water recharged.

Attachment No. 1-
COF.FWC.6.16.26_Recyecled_Water_Agreement.pdf
Attachments:

S. Acceptance of Final Parcel Map No. 20910 for the
Development of a 595 Multi-Family Unit Project on the
Southwest Corner of Citrus Avenue and Summit Avenue,
and the Abandonment of Easements on Said Map
26-1092

1. Approve Final Parcel Map No. 20910 for the development on the southwest corner of Citrus Avenue and Summit Avenue.

2. Accept dedication of public streets and easements.

3. Authorize the Mayor and City Clerk to certify the abandonment of the street right-of-way easements for portions of Joe Avenue and Edward Avenue as shown on the parcel map.

Attachment No. 1 - VICINITY MAP.pdf
Attachment No. 2 - PARCEL MAP 20910.pdf
Attachment No. 3 - LAND IMPROVEMENT
AGREEMENT.pdf
Attachment No. 4 - ABANDONMENT EXHIBIT.pdf
Attachments:

T. Appointment to Fill Vacancy on the Planning Commission (Term Ending December 9, 2026)
26-1095
It is recommended that the City Council confirm the appointment of Commissioner Gilbert Roldan to the Planning Commission to fill the remainder of the unexpired term ending December 9, 2026.

PUBLIC HEARINGS:

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

8 City Council Meeting Regular Agenda June 23, 2026
record at the appropriate time during the meeting. If you challenge in court any action taken concerning a Public Hearing item, you may be limited to raising only those issues you or someone else raised at the Public Hearing described in this notice or in written correspondence delivered to the City at, or prior to, the Public Hearing.

All Public Hearings will be conducted following this format:
(a) hearing opened (e) oral - favor
(b) written communication (f) oral - opposition
(c) council/staff comments (g) hearing closed
(d) applicant comments (applicant not limited to 5 minutes) A. Appeal No. 26-0001: Request to overturn the Planning Commission’s March 17, 2026 decision adopting a
Categorical Exemption per Section 15332 (Class No. 32)
and approving Tentative Parcel Map No. 18-000005 (TPM
No. 19950), and Design Review No. 18-000010 - a request to split one ( 1) parcel into two ( 2) and for site and
architectural approval for the development of two ( 2) new industrial commerce center buildings of 41,218 square feet and 30,767 square feet with associated site improvements on 3.98 acres located north of Hilton Drive and west of Hemlock Avenue, and identified as Assessor Parcel
Numbers 1110-151-03.
26-1027
Deny Appeal No. 26-0001, thereby upholding the Planning Commission’s decision on March 17, 2026, approving, pursuant to a categorical exemption under California Environmental Quality Act (CEQA) Section No. 15332 (Class No. 32. Infill Development), Tentative Parcel Map No. 18-000005 (TPM No. 19950) and Design Review No. 18-000010 to split one (1) parcel into two (2) and for site and architectural approval for the development of two (2) new industrial commerce center buildings of 41,218 square feet and 30,767 square feet, with associated site improvements, on 3.98 acres located north of Hilton Drive and west of Hemlock Avenue, and identified as Assessor Parcel Numbers 1110-151-03.

9 City Council Meeting Regular Agenda June 23, 2026
Attachment No. 1 - Vicinity Map
Attachment No. 2 - Appellant Letter
Attachment No. 3 - Response to Appellant Letter
Attachment No. 4 - Justification Memo with Appendices
Attachment No. 5 - Appellant Letter May 11, 2026
Attachment No. 6 - Response to Appellant Letter May 22, 2026
Attachment No. 7 - PC Staff Report Package
Attachment No. 8 - PC Minutes of March 17 2026
Attachment No. 9 - Clerk of Board Fee Receipt and NOE
Attachment No. 10 - Public Hearing Notice
Attachments:

B. Quarterly Lien Action for Delinquent Sewer, Solid Waste and Weed Abatement Accounts
26-1074

1. Authorize staff to complete and record lien against real property for those sewer accounts sixty days or more delinquent, solid waste accounts more than ninety days delinquent, and for properties with delinquent weed abatement charges outstanding as described in attached resolutions and written reports and to direct staff to file for the recording of liens for such properties.

2. Adopt Resolution No. 2026-060, of the City Council of the City of Fontana authorizing the collection of certain annual wastewater and solid waste service charges, including delinquent charges for each service, on the County property tax rolls and determining and record liens against current delinquent parcels.

3. Adopt Resolution No. 2026-061 of the City Council of the City of Fontana adopting the statement of unpaid expenses for weed abatement and imposing a lien against real property for payment thereof.

Attachment No. 1- Resolution Authorizing Placing liens on Solid Waste and Sewer Fees -c1.doc
Attachment No. 2- Weed Abatement Resolution.docx
Attachments:

C. Public Hearing to Establish Fiscal Year 2026-2027
Assessment Rates for Landscape and Lighting
Maintenance Districts
26-1081

1. Adopt Resolution No. 2026-062 , of the City Council of the City of Fontana, California, Confirming a Diagram and Assessment, and Levying the Assessment for Landscape Maintenance District No. 1 (“LMD #1” throughout the City) for Fiscal Year 2026-2027.

2. Adopt Resolution No. 2026-063 , of the City Council of the City of Fontana, California, Confirming a Diagram and Assessment, and Levying

10 City Council Meeting Regular Agenda June 23, 2026
the Assessment for Landscape Maintenance District No. 2 (“LMD #2” Village of Heritage) for Fiscal Year 2026-2027.

3. Adopt Resolution No. 2026-064 , of the City Council of the City of Fontana, California, Confirming a Diagram and Assessment, and Levying the Assessment for Landscape Maintenance District No. 3 (“LMD #3” Hunter’s Ridge) for Fiscal Year 2026-2027.

4. Adopt Resolution No. 2026-065 , of the City Council of the City of Fontana, California, Confirming a Diagram and Assessment, and Levying the Assessment for Landscape Maintenance District No. 3- 1 (“LMD #3-1” Empire Center) for Fiscal Year 2026-2027.

5. Adopt Resolution No. 2026-066 , of the City Council of the City of Fontana, California, Confirming a Diagram and Assessment, and Levying the Assessment for Local Lighting Maintenance District No. 3 (“LLMD #3” Hunter’s Ridge) for Fiscal Year 2026-2027.

Attachment No. 1 - LMD 1 Resolution Confirming
Attachment No. 2 - LMD 2 Resolution Confirming
Attachment No. 3 - LMD 3 Resolution Confirming
Attachment No. 4 - LMD 3-1 Resolution Confirming
Attachment No. 5 - LLMD 3 Resolution Confirming
Attachments:

D. Conduct a Public Hearing and Consider Resolutions and Ordinance Adopting sewer rate adjustment for Fiscal Years 2026-27 through 2030-31
26-1101

1. Approve Resolution No. 2026-067, adopting findings and determinations regarding exhaustion of administrative remedies and to proceed with public hearing;

2. Conduct a public hearing;

3. Approve Resolution No. 2026-068, adopting proposed adjustments to the City’s sewer rates; and

4. Approve Ordinance No. 1993, authorizing adoption of new or increased sewer services fees by Resolution, and taking certain other actions relating thereto.

11 City Council Meeting Regular Agenda June 23, 2026
Attachment No. 1- Resolution Making Findings re AB 2257 and Sewer Services Rates (2026)-c1.doc
Attachment No. 2- Resolution Adopting Increases to Sewer Services Rates (2026)-c1.doc
Attachment No. 3- Ordinance Authorizing Adoption of
Future Sewer Service Rates by Resolution (2026)-c1.docx Attachment No. 4- Raftelis Wastewater Rate Study.pdf
Attachment No. 5- Prop 218 Public Hearing Notice.pdf
Attachment No. 6- Sewer Rate Study Presentation [April 28, 2026 Meeting].pdf
Attachment No. 7- Proof of Publication - Fontana Herald News 06.12.2026.pdf
Attachments:

CITY MANAGER COMMUNICATIONS:

A. City Manager Communications
ELECTED OFFICIALS COMMUNICATIONS/REPORTS:

A. Elected Officials Communications/Reports
ADJOURNMENT:

A. Adjournment
Adjourn to the next Regular City Council Meeting on July 14, 2026 at 2:00 p.m. in the Steelworkers' Auditorium located at 8437 Sierra Avenue, Fontana, California.

12 City of Fontana
Action Report
City Council Meeting
8437 Sierra Avenue
Fontana, CA 92335
File #: 26-1084 Agenda Date: 6/23/2026
Agenda #: A. Category: Special Presentation
Ceremonial Items
Tuesday, June 23, 2026
2:00 P.M.

Steelworkers’ Auditorium
City Council
Acquanetta Warren, Mayor
Peter Garcia, Mayor Pro Tem
John Roberts, Council Member
Jesus “Jesse” Sandoval, Council Member
Phillip W. Cothran., Council Member
City of Fontana Printed on 6/15/2026Page 1 of 1
powered by Legistar™
13 City of Fontana
Action Report
City Council Meeting
8437 Sierra Avenue
Fontana, CA 92335
File #: 26-1085 Agenda Date: 6/23/2026
Agenda #: B. Category: Special Presentation
Ceremonial Items
Tuesday, June 23, 2026
2:00 P.M.

Steelworkers’ Auditorium
City Council
Acquanetta Warren, Mayor
Peter Garcia, Mayor Pro Tem
John Roberts, Council Member
Jesus “Jesse” Sandoval, Council Member
Phillip W. Cothran., Council Member
City of Fontana Printed on 6/15/2026Page 1 of 1
powered by Legistar™
14 City of Fontana
Action Report
City Council Meeting
8437 Sierra Avenue
Fontana, CA 92335
File #: 26-1096 Agenda Date: 6/23/2026
Agenda #: C. Category: Special Presentation
Presentation
Tuesday, June 23, 2026
2:00 P.M.

Steelworkers’ Auditorium
City Council
Acquanetta Warren, Mayor
Peter Garcia, Mayor Pro Tem
John Roberts, Council Member
Jesus “Jesse” Sandoval, Council Member
Phillip W. Cothran., Council Member
City of Fontana Printed on 6/18/2026Page 1 of 1
powered by Legistar™
15 City of Fontana
Action Report
City Council Meeting
8437 Sierra Avenue
Fontana, CA 92335
File #: 26-1083 Agenda Date: 6/23/2026
Agenda #: A. Category: Consent Calendar
FROM:

City Clerk
SUBJECT:

Approval of Minutes
RECOMMENDATION:

Approve the minutes of June 9, 2026, Regular City Council Meeting.

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

DISCUSSION:

The City Council will consider approval of the minutes of June 9, 2026, Regular City Council Meeting.

The draft minutes are attached to this report for Council review and approval.

FISCAL IMPACT:

None.

MOTION:

Approve staff recommendation.

City of Fontana Printed on 6/18/2026Page 1 of 1
powered by Legistar™
16

City of Fontana

8437 Sierra Avenue
Fontana, CA 92335

Minutes

Tuesday, June 9, 2026

2:00 PM

Steelworkers' Auditorium
8437 Sierra Avenue
Fontana, Ca. 92335
City Council Meeting

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

17

CALL TO ORDER/ROLL CALL:

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

The Regular Meeting of the Fontana City Council was held in the Steelworkers’ Auditorium , 8437 Sierra Avenue, Fontana, CA 92335, on Tuesday, June 9, 2026.

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

ROLL CALL:

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

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

ABSENT: Council Member Cothran

INVOCATION/PLEDGE OF ALLEGIANCE:

The invocation was given by Council Member Roberts, followed by the pledge of allegiance led by Council Member Sandoval.

CEREMONIAL ITEMS/PRESENTATIONS:

A. Mayor Warren and City Council to recognize Outgoing Planning 26 -1069 Commissioner Idilio Sanchez.

Mayor Warren and the City Council recognized outgoing Planning Commissioner Idilio Sanchez for twelve years of service on the Planning Commission.

B. Mayor Warren and the City Council to accept the 2026 26-1055 San Bernardino’s Best Readers’ Choice Award, presented to Fontana Arts by the San Bernardino Sun Newspaper.

Mayor Warren and the City Council accepted the 2026 San Bernardino's Best Readers' Choice Award, presented to Fontana Arts by the San Bernardino Sun Newspaper.

PUBLIC COMMUNICATIONS:

The following individuals spoke under public communications:

Adrian Hernandez, a Fontana resident and student, expressed concerns about the limited employment opportunities available to teenagers and encouraged the City to explore additional job and internship opportunities for local youth.

Jeff Larson expressed concerns regarding gang activity, graffiti, and illegal dumping in his 18

neighborhood and requested additional measures to improve enforcement and neighborhood safety, including the potential expansion of surveillance camera systems. He thanked the Fontana Police Department for its assistance and stated his commitment to helping improve the community.

John Pedroza called for the removal of a Parks, Community and Human Services Commissioner, citing alleged misconduct during a police- involved incident resulting in a death, and referenced ongoing investigations and legal action related to the case.

Joz Sida spoke regarding public participation in municipal elections and expressed concerns that increasing candidate statement costs could create barriers for residents seeking elected office. She also commented on civic engagement, First Amendment rights, and h er commitment to the Fontana community.

Grace expressed concerns regarding candidate statement fees and requested that the City ensure compliance with state law relating to indigent candidate waivers and candidate information.

Isabel Rios called for the removal of a Parks, Community and Human Services Commissioner, citing alleged misconduct during a police-involved incident resulting in a death, and referenced ongoing investigations and legal action related to the case.

Victor Rios called for the removal of a Parks, Community and Human Services Commissioner, citing alleged misconduct during a police-involved incident resulting in a death, and referenced ongoing investigations and legal action related to the case.

Roux called for the removal of a Parks, Community and Human Services Commissioner, citing alleged misconduct during a police- involved incident resulting in a death, and referenced ongoing investigations and legal action related to the case.

Maria Andino expressed concerns regarding neighborhood safety, including vandalism and other nuisance activities, and requested additional enforcement and assistance to address ongoing issues in the area.

Giovanni Tovar expressed concerns regarding public participation, candidate statement costs, housing policy, and the City's handling of certain community issues. He advocated for policy changes to promote transparency, equitable access to public services, and increased investment in housing and community well-being.

Marlen opposed Resolution No. 2026- 048 regarding candidate statement costs, expressing concern that it could create barriers for future candidates and limit voter access to information.

CONSENT CALENDAR:

Prior to the motion, Mayor Warren announced Item O would be pulled for discussion.

Item O:

City Manager Matt Ballantyne c larified that the candidate statement fees referenced are 19

consistent with prior elections and reflect County -established costs due to election consolidation. He stated the City is not changing the fee structure, is acting as a pass -through for County fees, and noted that candidates may apply for hardship considerations through the City Clerk’s Office.

Council Member Sandoval raised concerns regarding candidate statement fees and a $1,000 deposit, questioning its justification and requesting clearer requirements for campaign sign removal timelines and associated costs. He also requested information on how the County calculates and structures candidate statement fees.

City Manager Ballantyne clarified that the candidate statement fees were established by the County in connection with election administration costs and that the $1,000 deposit appl ies only to City election -related processes. He noted the deposit is not required if a candidate demonstrates financial hardship or chooses not to post campaign signage, and that an exception process is available through established eligibility criteria.

Mayor Pro Tem Garcia explained that the sign deposit was created to address ongoing issues with post -election sign removal and city cleanup costs, and is refundable once signs are removed, with hardship exceptions available. He also noted that election- related fees are set by the County based on actual costs.

ACTION: Motion was made by Council Member Roberts , seconded by Mayor Pro Tem Garcia, and passed by a vote of 4-0 to approve Consent Calendar Items “A -O” with Council Member Sandoval voting No on Items “D, E, F, L, and O.” The motion carried by the following vote: AYES: Warren, Garcia, Roberts, and Sandoval ; NOES: None; ABSTAIN: None; ABSENT: Cothran

A. Approval of Minutes 26-1052
Approve the minutes of May 26, 2026, Regular City Council Meeting.

B. Adoption of Ordinance No. 1988 (Second Reading), Amending 26-1047 Article XV Pertaining To Provisions Of The No Net Loss Program Including Sections 30-966 Through 30-969 And Sections 30-971 And 30-972, Pursuant To A Categorical Exemption In Accordance With CEQA Guidelines Sections 15060(C), 15061(B)(3), And Section 15378, And Directing Staff To File A Notice Of Exemption.

Conduct a second reading by title only and adopt, Ordinance No. 1988, Amending Multiple Sections Of The Fontana Municipal Code, Including Amendments To Article XV Pertaining To Provisions Of The No Net Loss Program Including Sections 30-966 Through 30-969 And Sections 30-971 And 30-972, Pursuant To A Categorical Exemption In Accordance With CEQA Guidelines Sections 15060(C), 15061(B)(3), And Section 15378, And Directing Staff To File A Notice Of Exemption.

C. Adoption of Ordinance No. 1989 (Second Reading), Amending 26-1048 Multiple Sections Of The Fontana Municipal Code, Including Amendments To Sec. 30-12 Pertaining To The Definition Of Accessory Use, Principal/Primary Use, Vehicle And Truck Storage 20

And Vehicle And Truck Parking; Sec. 30-21 Pertaining To The Expiration Of Entitlement Applications; Sec. 30-360 Pertaining To Outdoor Dining In The Public Right-Of-Way In The Downtown Core; Sec. 30-371.2 Pertaining To Parking Requirements For Retail, Entertainment And Restaurant Uses In The Downtown Core; Sec. 30-390 To Correct Section References, Pursuant To A Categorical Exemption In Accordance With CEQA Guidelines Sections 15060(C), 15061(B)(3), And Section 15378, And Directing Staff To File A Notice Of Exemption.

Conduct a second reading by title only and adopt, Ordinance No. 1989, Amending Multiple Sections Of The Fontana Municipal Code, Including Amendments To Sec. 30-12 Pertaining To The Definition Of Accessory Use, Principal/Primary Use, Vehicle And Truck Storage And Vehicle And Truck Parking; Sec. 30-21 Pertaining To The Expiration Of Entitlement Applications; Sec. 30-360 Pertaining To Outdoor Dining In The Public Right-Of-Way In The Downtown Core; Sec. 30-371.2 Pertaining To Parking Requirements For Retail, Entertainment And Restaurant Uses In The Downtown Core; And Sec. 30-390 To Correct Section References, Pursuant To A Categorical Exemption In Accordance With CEQA Guidelines Sections 15060(C), 15061(B)(3), And Section 15378, And Directing Staff To File A Notice Of Exemption.

D. Adoption of Ordinance No. 1990 (Second Reading), Approving 26-1049 Development Agreement No 19-000002R1 for Assessor’s Parcel Numbers: 0255-091-20, -23, -63, -64, and -65
Conduct a second reading by title only and adopt, Ordinance No. 1990, Approving Development Agreement No 19-000002R1 for Assessor’s Parcel Numbers: 0255-091-20, -23, -63, -64, and -65.

E. Adoption of Ordinance No. 1991 (Second Reading), Approving 26-1050 Development Agreement No 23-0085R1, as to Assessor’s Parcel Number 0255-021-17
Conduct a second reading by title only and adopt, Ordinance No. 1991, Approving Development Agreement No 23-0085R1, as to Assessor’s Parcel Number 0255-021-17

F. Adoption of Ordinance No. 1992 (Second Reading), Approving 26-1051 Development Agreement No 23-0085R2, as to Assessor’s Parcel Numbers 0255-011-13, 0255-011-14, 0255-011-18, 0255-011-19 AND 0255-011-25 thru 0255-011-32...End
Conduct a second reading by title only and adopt, Ordinance No. 1992, Approving Development Agreement No 23-0085R2, as to Assessor’s Parcel Numbers 0255-011-13, 0255-011-14, 0255-011-18, 0255-011-19 AND 0255-011-25 thru 0255-011-32

G. Award a Construction Contract for the Baseline Avenue at 26-0996 Palmetto Avenue Traffic Signal Project (Bid No. DE-26-161-SB)

1. Award bid and authorize City Manager to enter into a construction contract with California Professional Engineering, Inc. for the Baseline Avenue at Palmetto Avenue Traffic Signal Project in the amount of $1,094,777.92 and 21

authorize a 10% contingency in the amount of $109,477.79 (Bid No. DE-26- 161-SB).

2. Approve and authorize the City Manager to enter into any and all utility agreements, utility easements, and subsequent agreements on behalf of the City of Fontana for the Baseline Avenue at Palmetto Avenue Traffic Signal Project (Bid No. DE-26-161-SB).

H. Initiation and Intention to Levy Assessments for 2026-27 for 26-1042 Landscape and Lighting Maintenance Districts

1. Adopt Resolution No. 2026-032, of the City of Fontana, California, Initiating Proceedings to Levy and Collect Assessment Within Landscape Maintenance District No. 1 for 2026-27 and Ordering the Preparation of the Engineer’s Report Therefore.

2. Adopt Resolution No. 2026-033, of the City of Fontana, California, Declaring its Intention to Levy and Collect Assessments within Landscape Maintenance District No. 1 ("LMD #1") for 2026- 27 and Giving Notice of and Setting the Time and Place of the Hearing on the Levy of the Proposed Assessment.

3. Adopt Resolution No. 2026-034, of the City of Fontana, California, Initiating Proceedings to Levy and Collect Assessment Within Landscape Maintenance District No. 2 for 2026-27 and Ordering the Preparation of the Engineer’s Report Therefore.

4. Adopt Resolution No. 2026-035, of the City of Fontana, California, Declaring its Intention to Levy and Collect Assessments within Landscape Maintenance District No. 2 ("LMD # 2") for 2026- 27 and Giving Notice of and Setting the Time and Place of the Hearing on the Levy of the Proposed Assessment.

5. Adopt Resolution No. 2026-036, of the City of Fontana, California, Initiating Proceedings to Levy and Collect Assessment Within Landscape Maintenance District No. 3 for 2026-27 and Ordering the Preparation of the Engineer’s Report Therefore.

6. Adopt Resolution No. 2026-037 of the City of Fontana, California, Declaring its Intention to Levy and Collect Assessments within Landscape Maintenance District No. 3 ("LMD # 3") for 2026- 27 and Giving Notice of and Setting the Time and Place of the Hearing on the Levy of the Proposed Assessment.

7. Adopt Resolution No. 2026-038, of the City of Fontana, California, Initiating Proceedings to Levy and Collect Assessment Within Landscape Maintenance District No. 3-1 for 2026-27 and Ordering the Preparation of the Engineer’s Report Therefore.

8. Adopt Resolution No. 2026-039, of the City of Fontana, California, Declaring its Intention to Levy and Collect Assessments within Landscape Maintenance District No. 3 -1 ("LMD # 3-1") for 2026-27 and Giving Notice of and Setting the Time and Place of the Hearing on the Levy of the Proposed Assessment. 22

9. Adopt Resolution No. 2026-040, of the City of Fontana, California, Initiating Proceedings to Levy and Collect Assessment Within Local Lighting Maintenance District No. 3 for 2026- 27 and Ordering the Preparation of the Engineer’s Report Therefore.

10. Adopt Resolution No. 2026-041, of the City of Fontana, California, Declaring its Intention to Levy and Collect Assessments within Local Lighting Maintenance District No. 3 ("LLMD # 3") for 2026-27 and Giving Notice of and Setting the Time and Place of the Hearing on the Levy of the Proposed Assessment.

I. Final Acceptance of Street, Storm Drain, Sewer, Landscape, and 26-1014 Signing & Striping Improvements on the northeast corner of Summit Avenue and Citrus Avenue for Tract No. 18825

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

2. Adopt Resolution No. 2026-042, accepting sewers in Tract No. 18825 as part of the City sewer system.

J. Final Acceptance of Street, Storm Drain, Sewer, Landscape, and Signing & Striping Improvements on the northeast corner of Summit Avenue and Citrus Avenue for Tract No. 18915 (Taylor Morrison) 26-1016

1. Accept as complete the street, storm drain, sewer, landscape, and signing & striping improvements for Tract No. 18915, located on the northeast corner of Summit Avenue and Citrus Avenue.

2. Adopt Resolution No. 2026-043, accepting sewers in Tract No. 18915 as part of the City sewer system.

K. Adopt a Resolution of the City Council of the City of Fontana, 26-1018 California, Approving a Right -of-Way Use Agreement with Arcadian Infracom 2, LLC for the Installation, Operation, and Maintenance of Telecommunication Facilities, Pursuant to CEQA Guidelines Sections 15303 and in the Alternative 15301, and Authorizing Filing of a Notice of Exemption

1. Adopt Resolution No. 2026-044, approving a Right-of-Way Use Agreement with Arcadian Infracom 2, LLC for the installation, operation, and maintenance of Telecommunication Facilities Pursuant to CEQA Guidelines Section 15303 and in the Alternative 15301, and authorizing filing of a Notice of Exemption.

2. Authorize the City Manager, or designee, to enter into the Agreement.

L. Consideration of Release Agreement (“Release Agreement”) by 26-1021 and between the City of Fontana and HDO4, LLC to release certain 23

property from the land subject to that certain Disposition Agreement entered into by the City of Fontana and HDO4, LLC approved by the City on July 2, 2020 (“Disposition Agreement”) in furtherance of promoting buildout of the Ventana at Duncan Canyon Specific Plan (“Specific Plan”), pursuant to an exemption from CEQA in accordance with CEQA Guidelines Sections
15060(c)(2), 15064(d), and 15378.

Adopt Resolution No. 2026-045, a resolution of the city council of the City of Fontana, California, approving a release agreement releasing certain real property from the obligations, conditions, and restrictions of that certain disposition agreement approved by the city council of the City of Fontana on July 2,2020 by and between the city of Fontana and hdo4, LLC and determining that the action is exempt from the California environmental quality act in accordance with CEQA guidelines sections 15060(c)(2), 15064(d), and 15378.

M. Approve an Agreement and Permit to enter with Fontana 26-1040 Courtplace I Housing L.P. related to certain real property located at 11196 Sierra Avenue, in Fontana, California

1. Determine the approval of the Agreement and Permit to Enter authorizing temporary access and use of an existing property area for construction staging purposes is categorically exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15301 (Existing Facilities) and directs staff to file the notice of exemption.

2. Approve the Agreement and Permit to Enter with Fontana Courtplace I Housing L.P. Related to Certain Real Property Located at 11196 Sierra Ave, In Fontana, California; and

3. Authorize the City Manager, or designee, to execute the Agreement and any non-substantive revisions necessary to implement the Agreement.

N. Co-Sponsorship Application Cycle One (1) FY 2026/2027 26-1060

1. Review, and approve the sixteen (16) Co-Sponsorship Applications for the 2026/2027 fiscal year (July 2026 through June 2027) totaling an amount of $71,235.00 as recommended by the Parks, Community, and Human Services Commission.

2. Consider a budget adjustment for a total of $100,000 for the co-sponsorship program to be included in the 2026/2027 first-quarter requests.

O. Calling of the November 3, 2026, General Municipal Election; 26-1056 Requesting Consolidation with the Statewide General Election to be conducted by the San Bernardino County Registrar of Voters; and Providing Regulations for Candidates

1. Adopt Resolution No. 2026-046, a Resolution of the City Council of the City of Fontana, California, Calling And Giving Notice of a General Municipal Election to be held in the City of Fontana on Tuesday, November 3, 2026, for the Election of Certain Officers of the City as Required By the Provisions of 24

the Laws of The State of California Relating To General Law Cities;

2. Adopt Resolution No. 2026-047, a Resolution of the City Council of the City of Fontana, California, Requesting the Board of Supervisors of the County of San Bernardino to Consolidate a General Municipal Election to be held on November 3, 2026, with the Statewide General Election to be held on the date Pursuant To § 10403 of the Elections Code;

3. Adopt Resolution No. 2026-048, a Resolution of the City Council of the City of Fontana, California, Adopting Regulations for Candidates for Elective Office Pertaining to Candidates Statements Submitted to the Voters at a General Municipal Election to be held on Tuesday, November 3, 2026.

PUBLIC HEARINGS:

A. Conduct a Public Hearing on the City Workforce Vacancies, 26-1012 Recruitment, and Retention Trends Pursuant to Assembly Bill 2561 (AB 2561)
Adopt Resolution No. 2026-050 a Resolution of the City Council of the City of Fontana, California, affirming that a public hearing and presentation on the status of the City’s vacancies, recruitment and retention efforts was conducted in accordance with Assembly Bill 2561.

Mayor Warren opened the public hearing.

City Clerk Key stated that no written public communications were received.

Human Resources Analyst Melvin Alegado provided the staff report.

With no requests to speak in favor or opposition, Mayor Warren closed the public hearing.

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

B. Adopt a Resolution Vacating a Public Right-of-Way Easement 26-1030 on Highland Avenue and Oleander Avenue and Reserving any other Public Utility Easements
Adopt Resolution No. 2026-049, a Resolution of the City Council of the City of Fontana, California, declaring that the Public Right-of-Way Easement over Highland Avenue and Oleander Avenue is unnecessary for present or prospective public use, and vacating the same pursuant to Streets and Highway Code Section 8320 et seq., and reserving an easement for public utility purposes.

Mayor Warren opened the public hearing.
25

City Clerk Key stated no written communications were received.

Public Works Director/City Engineer Gia Kim provided the staff report.

With no requests to speak in favor or opposition, Mayor Warren closed the public hearing.

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

NEW BUSINESS:

A. Adoption of Disruption of Telephonic or Internet Service During 26-1029 Meetings Policy.

Adopt Resolution No. 2026-051, approving the proposed Disruption of Telephonic or Internet Service During Meetings policy so that the city can be in compliance with the recent SB 707 changes to the Brown Act.

Chief Deputy City Clerk Christina Rudsell provided the staff report.

ACTION: Motion was made by Council Member Roberts , seconded by Mayor Pro Tem Garcia, and passed by vote of 4 -0 to approve New Business Item “ A.” The motion carried by the following vote: AYES: Warren, Garcia, Roberts, and Sandoval ; NOES:

None; ABSTAIN: None; ABSENT: Cothran

B. Fiscal Year 2026/27 Supplemental Budget Report - City of 26-1033 Fontana

1. Approve the recommended Fiscal Year 2026/27 Supplemental Budget adjustments

2. Adopt Resolution No. 2026-052, of the City Council of the City of Fontana establishing a General Fund Appropriations limit of $419,975,336 pursuant to Article XIII (B) of the California Constitution for Fiscal Year 2026/2027.

3. Authorize the carryforward of available budget at fiscal yearend to the following fiscal year for all capital improvement projects and one-time funded initiative, and adjust supplemental fund balances.

4. Adopt Resolution No. 2026-053, of the City Council of the City of Fontana reassigning the Purchasing Specialist Classification to the Teamsters Local 1932 City Hall Unit, and approving the updated salary table for the Executive Employees, Fontana Police Benefit Association, Fontana Police Officers’ Association, Fontana Police Management Association, Management/Confidential Employees, Teamsters Local 1932 26

City Hall Unit, Teamsters Local 1932 Public Works Unit for Fiscal Year 2026/2027.

5. Approve the recommended Fiscal Year 2026/2027 Hourly Billing Rate Schedule.

Chief Financial Officer Jessica Brown provided the staff report.

City Attorney Duran read the proposed Executive Salary Table into the record.

ACTION: Motion was made by Mayor Pro Tem Garcia , seconded by Council Member Roberts, and passed by vote of 4 -0 to approve New Business Item “ B.” The motion carried by the following vote: AYES: Warren, Garcia, Roberts, and Sandoval ; NOES:

None; ABSTAIN: None; ABSENT: Cothran

CITY MANAGER COMMUNICATIONS:

City Manager Ballantyne highlighted several actions approved on the Consent Calendar, including an amended development agreement to advance construction of 106 affordable housing units, funding for improvements to the Baseline and Palmetto traffic signal, and in- kind services for community nonprofit events. He also thanked City staff for their efforts in hosting a successful Fontana Days Run and preparing the supplemental budget for the second year of the City's two-year budget cycle.

ELECTED OFFICIALS COMMUNICATIONS/REPORTS:

A. Discussion and Possible Action Regarding Appointment 26- 1065 to the Planning Commission to Fill an Unscheduled Vacancy for the Unexpired Term Ending December 9, 2026

Mayor Warren stated that, due to the unscheduled Planning Commission vacancy created by the resignation of Idilio Sanchez, the City Council would make an interim appointment pursuant to Government Code Section 54974(b). She noted that a final appointment would be considered at the June 23, 2026, City Council meeting following completion of the required 10-working-day vacancy notice period, which commenced with the posting of the notice on June 4, 2026.

Mayor Warren nominated Gilbert Roldan for appointment to fill an unscheduled vacancy on the Planning Commission for the unexpired term ending December 9, 2026.

Council Member Sandoval expressed concern about maintaining a quorum for the Parks , Community, and Human Services Commission and suggested delaying the appointment until existing vacancies on that commission were filled. Mayor Warren acknowledged the concern and stated that, if the appointment were approved, the resulting vacancy would be posted and filled, and she did not anticipate an issue with maintaining a quorum.

27

ACTION: Motion was made by Mayor Pro Tem Garcia , seconded by Council Member Roberts, and passed by vote of 3 -1 to appoint Gilbert Roldan as Planning Commissioner. The motion carried by the following vote: AYES: Warren, Garcia, Roberts; NOES: Sandoval; ABSTAIN: None; ABSENT: Cothran

City Clerk Key congratulated former Planning Commissioner Idilio Sanchez for his 12 years of service, congratulated Parks Commissioner Gilbert Roldan on his temporary appointment to the Planning Commission and recognized the Community Services Department for its well-deserved recognition and the success of the Fontana Days Run.

City Treasurer Koehler -Brooks thanked Chief Financial Officer Brown and staff for her excellent presentation of the supplemental budget and commended the success of the Fontana Days Run and festival.

Council Member Roberts congratulated Idilio Sanchez on his 12 years of service on the Planning Commission, recognizing his contributions to numerous City projects in Fontana. He also commended the success of the Fontana Days Run and thanked staff for their efforts in supporting the event and concluded by wishing Mayor Pro Tem Garcia a happy birthday.

Council Member Sandoval requested that the City reinstate or clarify procedures for providing translation services during public meetings, expressing concern that members of the public may not fully understand comments made in other languages. He suggested ensuring a translator is available either on staff or on call, noting the City’s diverse population and the importance of equitable access to public participation.

City Manager Ballantyne explained that the City uses the Wordly AI translation system, which can translate approximately 80 languages and has been in use for over a year, with test results showing it to be more consistent than live translation services. He noted that the system supports both Council viewing and public accessibility, with translations displayed on screen and available upon request when speaker cards are submitted. He also stated he would review the meeting agenda preamble to ensure the language regarding translation accommodations is included.

Mayor Pro Tem Garcia recognized Idilio Sanchez for his 12 years of service on the Planning Commission, noting him as the longest -serving commissioner in the City’s history, and also acknowledged former Commissioner Larry M eyers for his 11 years of service. He congratulated Gilbert Roldan on his appointment to the Planning Commission and expressed confidence in his service. Mayor Pro Tem Garcia also congratulated newly elected County officials, including Supervisor Jesse Armendarez, Assessor -Recorder-Clerk Jos ie Gonzales , and Auditor-Controller-Treasurer-Tax Collector Ryan Hutchinson, and expressed his intent to work collaboratively with them on behalf of the City.

Council Member Sandoval requested accessibility improvements for meetings, including written agenda materials and repositioning of monitors to improve visibility of agenda items, noting difficulty viewing the current screen layout. City Manager Ballantyne acknowledged the request and indicated it would be addressed.

Council Member Sandoval exited the meeting at 4:02 p.m.

28

Mayor Warren congratulated Idilio Sanchez for his longtime service on the Planning Commission and welcomed Gil bert Roldan to the Commission. Sh e announced that Burrtec would not implement its annual CPI -related residential rate increase this year and encouraged residents to properly sort waste to help control future costs. Mayor Warren also recognized approved nonprofit sponsorships, congratulated recently elected county officials, thanked Council Member Roberts and Mayor Pro Tem Garcia for supporting the election resolutions, and commended staff and community partners for the success of the Fontana Days Festival and Run. She further highlighted downtown beautification efforts, including new public art installations, and reported on h er attendance at the U.S. Conference of Mayors, noting the value of public-private partnerships in advancing community development.

ADJOURNMENT:

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

1. Carinetha Bonner - Dawson.

2. San Bernardino County Fire Engineer Robert “ BJ” Myers

Mayor Warren adjourned the meeting at 4:07 p.m. to the Regular City Council Meeting on Tuesday, June 23, 2026, at 2:00 p.m. in the Steelworkers’ Auditorium located at 8437 Sierra Avenue, Fontana, California.

_______________________
Christina Rudsell, CMC
Chief Deputy City Clerk

THE FOREGOING MINUTES WERE ADOPTED AND APPROVED BY THE FONTANA CITY COUNCIL ON JUNE 23, 2026.

_______________________
Germaine Key
City Clerk

29 City of Fontana
Action Report
City Council Meeting
8437 Sierra Avenue
Fontana, CA 92335
File #: 26-0991 Agenda Date: 6/23/2026
Agenda #: B. Category: Consent Calendar
FROM:

Engineering
SUBJECT:

Authorizing Sole Source Purchasing Practices of Econolite Traffic Equipment for the Highway Safety Improvement Program (HSIP) TMS Signal Intersection Improvements (HSIPSL-5307(037)) RECOMMENDATION:

1. Authorize Engineering Department to procure Econolite Traffic Equipment for the Highway Safety Improvement Program (HSIP) TMS Signal Intersection Improvements (HSIPSL-5307 (037)), in the amount of $1,171,480.00 and authorize a 10% contingency in the amount of $117,148.00, utilizing the Purchasing Policy and Procedure Manual Section 3.1.5 Non- Competitive Proposal - Sole Source.

2. Approve and authorize the City Manager to enter into any and all utility agreements, utility easements, installation, and subsequent agreements on behalf of the City for the Highway Safety Improvement Program (HSIP) TMS Signal Intersection Improvements HSIPSL-5307(037).

COUNCIL GOALS:
· To operate in a businesslike manner by improving services through the effective use of technology.
· To invest in the City’s infrastructure (streets, sewers, parks, etc.) by maintaining and improving the city's existing infrastructure.
· To invest in the City’s infrastructure (streets, sewers, parks, etc.) by focusing on relief of traffic congestion.

DISCUSSION:

On March 9, 2023, the Highway Safety Improvement Program (HSIP) approved state funding in the amount of $665,900.00 for the TMS Signal Intersection Improvements Project (HSIPSL-5307(037)).

The TMS Signal Intersection Improvements HSIP Project (HSIPSL-5307(037)) consists of upgrading and improving 118 traffic signal controllers, detection devices, and communication infrastructure that must integrate directly with the City’s existing Econolite-based Traffic Management System. The installation and configuration of these components involve proprietary programming tools, calibration procedures, and communication protocols that are specific to the manufacturer. These tasks must be performed in a manner consistent with the City’s established system architecture to maintain corridor coordination, operational reliability, and long-term maintainability.

City of Fontana Printed on 6/18/2026Page 1 of 2
powered by Legistar™
30 File #: 26-0991 Agenda Date: 6/23/2026
Agenda #: B. Category: Consent Calendar
On April 15, 2003, the City Council approved a City Council Action Report establishing the City’s practice of standardizing Econolite equipment to ensure compatibility, maintain reliable system operations, and support efficient maintenance. Since then, all signalized intersections have continued to operate on this platform, forming a fully integrated system dependent on uniform hardware, firmware, and communication standards. The City has continued to build and operate its Traffic Management System around Econolite hardware, firmware, communications architecture, and cabinet configurations. As a result, the City’s network functions as an integrated system in which timing plans, detection devices, communication links, and field equipment operate under uniform manufacturer specifications developed over two decades of deployment.

Engaging Econolite directly to supply and install the equipment ensures full compatibility with the City’s existing system, avoids the added cost and complexity of subcontracted proprietary work under a competitive bid, and supports consistent implementation across all upgraded locations. Without this manufacturer-level knowledge, the risk of communication failures, misconfigured timing plans, and extended troubleshooting increases significantly in which it directly affects the system’s safety and performance. Access to the necessary software tools and technical procedures is limited to the manufacturer, and the work requires specialized expertise that general contractors do not maintain.

This approach maintains the City’s long-standing practice of system standardization, supports reliable corridor operations, and aligns the HSIP Project with the City’s established technical framework for traffic signal infrastructure.

FISCAL IMPACT:

The fiscal impact associated with the approval of this item is $1,288,628.00 for the full term of the construction contract. Funds are included on the Fiscal Year 2025-26 budget in 37600064-301-D- 8330 and 37600064-246-D-8330; funded by the HSIP grant and available funds in Measure I-Local Fund 246.

MOTION:

Approve staff recommendation.

City of Fontana Printed on 6/18/2026Page 2 of 2
powered by Legistar™
31 HSIP - SIGNALIZED INTERSECTION IMPROVEMENT PROJECTNN.T.S. 32 HSIP - SIGNALIZED INTERSECTION IMPROVEMENT PROJECTPROJECT LOCATIONS1.ALDER AVE/ARROW BLVD2.ALDER AVE/MERRILL AVE3.ALDER AVE/RANDALL AVE4.ALDER AVE/SAN BERNARDINO AVE5.ARROW BLVD/CITRUS AVE6.ARROW BLVD/OLEANDER AVE7.ARROW BLVD/JUNIPER AVE8.ARROW BLVD/LIBRARY WAY9.ARROW BLVD/MANGO AVE10.ARROW BLVD/PALMETTO AVE11.ARROW BLVD/TAMARIND AVE12.BASELINE AVE/CITRUS AVE13.BASELINE AVE/OLEANDER AVE14.BASELINE AVE/CYPRESS AVE15.BASELINE AVE/JUNIPER AVE16.BASELINE AVE/SIERRA AVE17.BASELINE AVE/MANGO AVE18.BEECH AVE/S. HIGHLAND AVE19.BEECH AVE/SIERRA LAKES PKWY20.BEECH AVE/CURTIS AVE21.BEECH AVE/SUMMIT AVE22.BEECH AVE/FALCON RIDGE CENTER23.CHERRY AVE/MEYER CANYON DR24.CHERRY AVE/VALLEY BLVD25.CHERRY AVE/SLOVER AVE26.CHERRY AVE/SANTA ANA AVE27.CHERRY AVE/JURUPA AVE28.CITRUS AVE/DUNCAN CANYON RD29.CITRUS AVE/SUMMIT AVE30.CITRUS AVE/MUIRFIELD LN31.CITRUS AVE/CURTIS AVE32.CITRUS AVE/SIERRA LAKES PKWY33.CITRUS AVE/S. HIGHLAND AVE34.CITRUS AVE/WALNUT ST35.CITRUS AVE/FOOTHILL BLVD36.CITRUS AVE/PACIFIC ELECTRIC TRAIL37.CITRUS AVE/CERES AVE38.CITRUS AVE/MERRILL AVE39.CITRUS AVE/FONTANA AVE40.CITRUS AVE/RANDALL AVE41.CITRUS AVE/SAN BERNARDINO AVE42.CITRUS AVE/VALLEY BLVD43.CITRUS AVE/SLOVER AVE44.CITRUS AVE/SANTA ANA AVE45.CITRUS AVE/JURUPA AVE46.CYPRESS AVE/VALLEY BLVD47.CYPRESS AVE/SLOVER AVE48.FOOTHILL BLVD/SULTANA AVE49.FOOTHILL BLVD/ALMERIA AVE50.FOOTHILL BLVD/TOKAY AVE51.FOOTHILL BLVD/OLEANDER AVE52.FOOTHILL BLVD/CYPRESS AVE53.FOOTHILL BLVD/JUNIPER AVE54.FOOTHILL BLVD/SIERRA AVE55.FOOTHILL BLVD/MANGO AVE56.FOOTHILL BLVD/FONTANA SQUARE57.FOOTHILL BLVD/PALMETTO AVE58.FOOTHILL BLVD/TAMARIND AVE59.FOOTHILL BLVD/LAUREL AVE

60.FOOTHILL BLVD/LOCUST AVE61.FOOTHILL BLVD/MAPLE AVE62.JURUPA AVE/MULBERRY AVE63.JURUPA AVE/BANANA AVE64.JURUPA AVE/ALMOND AVE65.JURUPA AVE/LIVE OAK AVE66.JURUPA AVE/BEECH AVE67.JURUPA AVE/POPLAR AVE68.JURUPA AVE/LOGISTICS WAY69.JURUPA AVE/OLEANDER AVE70.JURUPA AVE/CYPRESS AVE71.JURUPA AVE/JUNIPER AVE72.JURUPA AVE/SIERRA AVE73.MERRILL AVE/JUNIPER AVE74.MULBERRY AVE/SLOVER AVE75.MULBERRY AVE/SANTA ANA AVE76.MULBERRY AVE/MARLAY AVE77.MULBERRY AVE/CHERRY AVE78.MULBERRY AVE/PHILADELPHIA AVE79.SANTA ANA AVE/OLEANDER AVE80.SANTA ANA AVE/CYPRESS AVE81.SIERRA AVE/ TERRA VISTA DR82.SIERRA AVE/DUNCAN CANYON RD83.SIERRA AVE/SUMMIT AVE84.SIERRA AVE/CLUBHOUSE DR85.SIERRA AVE/SIERRA LAKES PKWY86.SIERRA AVE/S. HIGHLAND AVE87.SIERRA AVE/WALNUT ST88.SIERRA AVE/MICALLEF ST89.SIERRA AVE/MILLER AVE90.SIERRA AVE REED ST91.SIERRA AVE/SLOVER AVE92.SIERRA AVE/TECHNOLOGY ST93.SIERRA AVE/SANTA ANA AVE94.SIERRA AVE/UNDERWOOD DR95.SIERRA LAKES PKWY/AUGUSTA DR. WEST96.SIERRA LAKES PKWY/CYPRESS AVE97.SIERRA LAKES PKWY/TIBURON WAY98.SIERRA LAKES PKWY/AUGUSTA DR. EAST99.S. HIGHLAND AVE/OLEANDER AVE100.S. HIGHLAND AVE/CYPRESS AVE101.S. HIGHLAND AVE/HIGHLAND VILLAGE CENTER102.S. HIGHLAND AVE/MANGO AVE103.SUMMIT AVE/ANTELOPE LN104.SUMMIT AVE/BOULDER WAY105.SUMMIT AVE/LYTLE CREEK RD106.SUMMIT AVE/KNOX AVE107.VALLEY BLVD/ALMOND AVE108.VALLEY BLVD/POPLAR AVE109.VALLEY BLVD/CATAWBA AVE110.VALLEY BLVD/OLEANDER AVE111.VALLEY BLVD/JUNIPER AVE112.VALLEY BLVD/INLAND EMPIRE CENTER113.VALLEY BLVD/VINEYARD VALLEY114.VALLEY BLVD/PALMETTO AVE115.VALLEY BLVD/BELAIR SWAP MEET116.CASA GRANDE AVE/CITRUS AVE117.CASA GRANDE AVE/CYPRESS AVE118.CASA GRANDE AVE/SIERRA AVE 33 Econolite Systems

Fontana, California

Equipment Quote

March 16, 2026

Econolite Systems, Inc. is pleased to offer you the following quotes at the prices and terms set forth in this letter and subject to agreement on terms in any resultant contract/agreement. 34 Fontana, California
Equipment
Quote

2 ITEM # Item Description Unit Qty Unit Price Total
Equipment and Materials
1 Cobalt G Series Controller EA 118 $4,870 $574,660

Included: Econolite Systems quote includes pricing to supply the following items. • Cobalt G Series Controller (COB21120110000).
• Programming and turn-on support using timing sheets provided by the Agency.

2 Network Switch EA 118 $1,730 $204,140
Included: Econolite Systems quote includes pricing to supply the following items. • Moxa EDS-510E-3GTXSFP-T Layer 2 Network Switch.

3 Power Supply EA 118 $112 $13,216

Included: Econolite Systems quote includes pricing to supply the following items. • Omron Model S8VK-G03024 or MW HDR-60-24 Switching Power Supply.

4 SFP Modules EA 236 $341 $80,476
Included: Econolite Systems quote includes pricing to supply the following items. • Moxa SFP-1GLXLC-T SFP Module.
5 Ethernet Cable EA 118 $3.00 $354
Included: Econolite Systems quote includes pricing to supply the following items. • Cat5E Patch Cable, 2-foot.
6 Fiber Patch Cable EA 236 $10.25 $2,419
Included: Econolite Systems quote includes pricing to supply the following items. • STLC-SM-1M-ENT Duplex Yellow 1 Meter Fiber Patch Cable. 7 Field Integration EA 118 $1,500 $177,000

Included: Econolite Systems quote includes pricing to supply the following items. • Controller database conversion.
• Controller installation in cabinet.
• Ethernet switch installation in cabinet.
• Integration of Controller, Switch, SFP Modules, Switching Power Supply, Cat5E Patch Cable, and Fiber Patch Cables.

Assumptions:
• Pricing does not include any fiber splicing or other fiber-related activities that may be included.
8 Centracs Integration EA 118 $250 $29,500

Included: Econolite Systems quote includes pricing to supply the following items. • Centracs graphics development.
• Configure intersection parameters in Centracs.
• Verify Centracs is communicating with intersection.
35 Fontana, California
Equipment
Quote

3 ITEM # Item Description Unit Qty Unit Price Total
Subtotal $1,081,765
Sales Tax (8.75%) $76,586
Shipping $13,129
Total Price $1,171,480
General Terms & Conditions

1. Payment shall be in accordance with the mutually agreed upon contract.

2. All physical installations will be performed under the C-10 License and with Electricians under Prevailing Wage.

3. Price quotes is valid through July 31, 2026.

Special Conditions

1. Please examine explanation below each bid item carefully for inclusions and exclusions.

Quote Date: March 16, 2026
Quoted by: Brian M. Garrett
Associate Vice President
[email protected]

Contact: (346) 376-3565 Signature

36 CITY OF FONTANA

NON-COMPETITIVE SOURCE SELECTION JUSTIFICATION
Contract/Req. No.: Amendment No.: Requestor: Date:

Pre-Tax Amount: $ Tax: $ Freight: $ Total Amount: $
Vendor Name:

FUNDING SOURCE AND AUTHORIZATION (check as applicable)
City Resources Gov’t Grant Other
Certifications: Debarment4 Anti-Lobby5
Certificate(s)
Attached
Not
Applicable
Fund: Org Account:

Equipment Screening6: Yes Not Applicable Title Vests: - Purchase Description:

1. Source Selection - Competition is impracticable (Check appropriate box):

UNAVAILABLE FROM ANY OTHER SOURCE. No competitive advantage would be gained from competitive pricing, such as when equipment, goods, materials, supplies, personal property, or services are unique and are only available from one source. (Explain below. Include all contacts made to verify the sole source or single source situation.) COOPERATIVE PURCHASING AGREEMENT. This product or service required is being purchased under a cooperative purchasing agreement. (Explain below).

SAME PRICE PURCHASED BY ANOTHER PUBLIC AGENCY. The product or service required was awarded a bid by another public agency that has purchasing procedures substantially similar to those that the city would have been required to use, and the vendor offers the same price(s) to the city that it offered to the other agency.

EMERGENCY. This product or service required is due to an emergency, determined by the City Manager, which could not have been anticipated and critical need precludes any form of competition. (Purchases more than $100,000 must be presented at the next regular City Council Meeting for ratification by the City Council. Please attach supporting documentation and approval from City Manager).

OTHER REASON(S). (Explain below).

Detail information to support above justification(s):
4 Applies to purchases under a Federal Grant equal to or more than $25,000 5 Applies to purchases under a Federal Grant equal to or more than $100,000 6 Applies to
equipment purchases under a Federal Grant equal to or more than $10,000 37 City of Fontana
Action Report
City Council Meeting
8437 Sierra Avenue
Fontana, CA 92335
File #: 26-1001 Agenda Date: 6/23/2026
Agenda #: C. Category: Consent Calendar
FROM:

Public Works
SUBJECT:

Final Acceptance for the Demolition of 16756 and 16766 Arrow Blvd Project (PW-26-14-CC).

RECOMMENDATION:

Accept as complete the work performed by Interior Demolition Inc. for the Demolition Project (PW-26- 14-CC) of 16756 and 16766 Arrow Blvd and approve the final amount of $218,101.70.

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

DISCUSSION:

On December 9, 2025, the City awarded the demolition contract to Interior Demolition Inc. in the amount of $208,168.00 for the demolition of 16756 and 16766 Arrow Blvd Project (PW-26-14-CC).

There were two (2) contract change orders for this project for the removal and disposal of an underground septic tank and to backfill with slurry a seepage pit that was discovered onsite totaling $9,933.70. Interior Demolition Inc. completed the project on April 27, 2026. All work has been completed to the satisfaction of the City for the final amount of $218,101.70.

The retention money will be released to the contractor thirty-five (35) days after the filing of the Notice of Completion with the County recorder’s Office.

FISCAL IMPACT:

There is no fiscal impact associated with the approval of this item, the total cost of the demolition is $218,101.70 and the funds were budgeted in FY 2025/2026 in the Professional Services Budget 60230000-8310.

MOTION:

Approve staff recommendation
City of Fontana Printed on 6/15/2026Page 1 of 1
powered by Legistar™
38 City of Fontana
Action Report
City Council Meeting
8437 Sierra Avenue
Fontana, CA 92335
File #: 26-1015 Agenda Date: 6/23/2026
Agenda #: D. Category: Consent Calendar
FROM:

Public Works
SUBJECT:

Adopt a Resolution Updating and Renewing Authorization for Participation in the CalRecycle Tire Cleanup (TCU) Grant Program..End
Adopt a Resolution Updating and Renewing Authorization for Participation in the CalRecycle Tire Cleanup (TCU) Grant Program..End RECOMMENDATION:

Adopt Resolution No. 2026-054, Authorizing the submittal of any and all payment program applications offered by CalRecycle.

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.
· Enhance the local environment for future generations and create a healthy economic and environmental future by encouraging conservation, waste reduction, and recycling in the community.

DISCUSSION:

The proposed Resolution updates and renews the City of Fontana’s existing authorization to participate in the Tire Cleanup (TCU) Grant Program, which supports ongoing efforts to address illegal dumping of waste tires throughout the community. This action does not represent a new grant application, but rather ensures continuity of the City’s eligibility to receive reimbursement funding for eligible activities.

Illegal tire disposal continues to present environmental, public health, and safety concerns, including fire hazards. City staff routinely respond to and remediate illegal dumping sites; therefore, maintaining an active and current resolution is necessary to support uninterrupted program participation and funding reimbursement.

Through adoption of this Resolution, the City reaffirms its authorization to utilize available funds for essential program-related expenses, including personal protective equipment (PPE) such as high- visibility vests/jackets, safety glasses, gloves, and steel-toed footwear. These resources are critical to ensuring compliance with workplace safety standards and protecting staff from hazards encountered during cleanup operations.

Renewal of this Resolution allows the City to continue these services without disruption. Additionally, continued participation aligns with the City’s goals of maintaining clean and safe public spaces, City of Fontana Printed on 6/18/2026Page 1 of 2
powered by Legistar™
39 File #: 26-1015 Agenda Date: 6/23/2026
Agenda #: D. Category: Consent Calendar
improving environmental quality, and reducing illegal dumping through proactive public works and code enforcement efforts.

FISCAL IMPACT:

No fiscal impact for approval of the resolution.

MOTION:

Approve staff recommendation
City of Fontana Printed on 6/18/2026Page 2 of 2
powered by Legistar™
40 1 of 2

RESOLUTION NO. 2026-054

RESOLUTION OF THE CITY OF FONTANA , CALIFORNIA

AUTHORIZING THE SUBMITTAL OF GRANT APPLICATIONS FOR ALL

CALRECYCLE GRANTS FOR WHICH THE CITY OF FONTANA IS

ELIGIBLE AND AUTHORIZING ACCEPTANCE AND EXECUTION OF

THESES GRANTS

WHEREAS, Public Resources Code Section 40000 et seq. authorize the Department of Resources Recycling and Recovery (CalRecycle), to administer various grant programs (grants) in furtherance of the State of California's (State) efforts to reduce, recycle and reuse solid waste generated in the state thereby preserving landfill capacity and protecting public health and safety and the environment; and

WHEREAS, in furtherance of this authority CalRecycle is required to establish procedures governing the application, awarding, and management of the grants; and

WHEREAS, CalRecycle grant application procedures require, among other things, an applicant's governing body to declare by resolution certain authorizations related to the administration of CalRecycle grants; and.

WHEREAS, citizens and businesses spend significant amounts for energy, it makes economic sense and good public policy to encourage energy efficiency in Fontana and our community.

NOW, THEREFORE, BE IT RESOLVED , that the City Council of the City of Fontana, California, authorizes the submittal of application(s) to CalRecycle for all grants for which the City of Fontana is eligible.

BE IT FURTHER RESOLVED that the City Manager, or his/her designee (Public Works Director) is hereby authorized and empowered to execute in the name of the City of Fontana all grant documents, including but not limited to, applications, agreements, amendments, and requests for payment, necessary to secure grant funds and implement the approved grant project; and

BE IT FURTHER RES OLVED that these authorizations are effective for five (5) years from the date of adoption of this resolution; June 23, 2026 to June 23, 2031.

APPROVED AND ADOPTED this 23rd day of June, 2026.

READ AND APPROVED AS TO LEGAL FORM:

City Attorney
41 Resolution No. 2026-054

2 of 2

I, Germaine Key, City Clerk of the City of Fontana, California, and Ex-Officio Clerk of the City Council, do hereby certify that the foregoing resolution is the actual resolution duly and regularly adopted by the City Council at a regular meeting thereof, held on the 23rd day of June, 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 of the City of Fontana

42 City of Fontana
Action Report
City Council Meeting
8437 Sierra Avenue
Fontana, CA 92335
File #: 26-1041 Agenda Date: 6/23/2026
Agenda #: E. Category: Consent Calendar
FROM:

Engineering
SUBJECT:

Approve a Development Impact Fee Credit Agreement for Parcel Map No. 20215 RECOMMENDATION:

Approve and authorize the City Manager to enter into a Development Impact Fee Credit Agreement with CIVF VI - CA1W02, LLC, a Delaware limited liability company, for the construction of Sewer, Storm Drain, and Circulation for Parcel Map No. 20215.

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

DISCUSSION:

On January 19, 2021, the Planning Commission approved Tentative Parcel Map No. 20215 (TPM No. 20-000008) and Design Review No. 20-000010. The Developer is developing an 87,890 square foot warehouse building (84,444 square foot warehouse and 3,446 square foot mezzanine) on the property more particularly described as Parcel Map No. 20215, located at the northwest corner of Oleander Avenue and Boyle Avenue.

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

This Development Impact Fee Credit Agreement will provide fee credits toward the applicant's development impact fee obligations for the construction of Sewer, Storm Drain, and Circulation at Oleander Avenue and Slover Avenue.

The revised infrastructure fees are identified as follows:

City of Fontana Printed on 6/18/2026Page 1 of 2
powered by Legistar™
43 File #: 26-1041 Agenda Date: 6/23/2026
Agenda #: E. Category: Consent Calendar
FISCAL IMPACT:

The approval of the Development Impact Fee Credit Agreement results in a reduction of the Developer's Sewer (Connection), Storm Drain, and Circulation fees for the project. This is possible since the Developer will be constructing improvements valued at $556,745.49, which exceeds the fee obligation of $401,033.66. The Developer is still obligated to pay the remaining Storm Drain fee of $54,888.67 and Circulation fee of $6,511.69.

MOTION:

Approve staff recommendation.

City of Fontana Printed on 6/18/2026Page 2 of 2
powered by Legistar™
44 CITY OF FONTANA DEPARTMENT OF ENGINEERING

PARCEL MAP NO. 20215
(16288 Boyle Avenue, Fontana, CA 92337)

CIVF VI - CA1W02, LLC,
a Delaware limited liability company
18300 Von Karman Avenue, Suite 750
Irvine, CA 92612

45 16498.00001\9162190.1

PARCEL MAP NO. 20215

DEVELOPMENT IMPACT FEE CREDIT AGREEMENT

between

CITY OF FONTANA,
a California municipal corporation

and

CIVF VI – CA1W02, LLC,
a Delaware limited liability company
46 16498.00001\9162190.1

DEVELOPMENT IMPACT FEE CREDIT AGREEMENT

1. PARTIES AND DATE

This Development Impact Fee Credit Agreement (“Agreement”) is made this _______ day of ___________________, 2026 for reference purposes only, between: The City of Fontana (“City”), a California municipal corporation and CIVF VI – CA1W02, LLC, a Delaware limited liability company (“Developer”). The term “Developer” includes Developer and its successors to all or any portion of the Property. This Agreement will not become effective until the date (“Effective Date”) on which all of the following are true:

(i) This Agreement has been approved and executed by the appropriate authorities of the Developer, as defined in this Section 1, and this Agreement has been delivered to the City;
(ii) Following all legally required notices and hearings, this Agreement has been approved by the City’s City Council; and
(iii) This Agreement has been executed by the appropriate authorities of the City and delivered to Developer.

2. RECITALS

2.1 Developer owns certain real property located in the City of Fontana, San Bernardino County, State of California, and shall be referred to herein as the “Property”. The Property is more particularly shown in Exhibit “A” attached hereto and incorporated by reference herein, and consists of approximately 4.342 gross acres and 3.816 net acres.

2.2 The Developer is developing a total of 87,890 square foot warehouse building (84,444 square foot warehouse and 3,446 square foot mezzanine) on the property more particularly described as Parcel Map No. 20215/ Design Review No. 20-000010 (“Project”).

2.3 The City has imposed certain conditions of approval on the Project in connection with the City’s issuance of a building permit for the Project, which conditions, among other things, require the payment of, among others, certain Circulation, Sewer (Connection), and Storm Drain development impact fees (“Subject Development Fees”) as follows:

Fee Type Subject Development
Fee Obligation
Construction In-Lieu
Amount
Net Development Fee
Obligation
Sewer (Connection) $1,647.85 $218,760.04 $0.00
Storm Drain $88,997.67 $34,089.00 $54,888.67
Circulation $310,408.14 $303,896.45 $6,511.69
Total $401,033.66 $556,745.49 $61,400.36

Such fees are set based upon the City’s determination as to the square footage of the warehouse attributable to the Project as more particularly set forth in Exhibit “B” attached hereto and incorporated by reference herein.

47 -1-
16498.00001\9162190.1

2.4 In satisfaction of the Subject Development Fee Obligation as identified in Recital 2.3 above, Developer shall, at its sole cost, expense and liability, construct and dedicate to the City certain public improvements as more particularly set forth in this Agreement.

3. TERMS

3.1 Payment of Subject Development Fees

3.1.1 Payment of Subject Development Fees. Developer would, in the absence of this Agreement, be obligated to pay the Subject Development Fees described in Recital 2.3 in accordance with the City’s normal fee payment schedule, as a condition to the issuance of a building permit for the Project. Such amount would total four hundred one thousand thirty-three and 66/100 dollars ($401,033.66) (“Subject Development Fee Obligation”). However, Developer shall construct and dedicate the Subject Improvements as set forth in Section 3.2 below, at a cost to Developer of approximately five hundred fifty -six thousand seven hundred forty -five and 49/100 dollars ($556,745.49). Therefore, upon payment of the Net Development Fee Obligation of sixty -one thousand four hundred and 36/100 dollars ($61,400.36) and the Developer’s dedication to City and City’s acceptance of the Subject Improvements, as defined and set forth in Section 3.2.1, below, Developer shall be deemed to have satisfied its Subject Development Fee Obligation. Developer shall thereafter be entitled to no further payment, reimbursement or refund arising out of or related to the Subject Development Impact Fee Obligation.

3.1.2 Full Satisfaction of Subject Development Fees. The Subject Development Fee Obligation shall be satisfied for the Project in consideration of Developer’s construction and dedication, and the City’s acceptance, of those Subject Improvements, as defined and set forth in Section 3.2.1, below, in accordance with this Agreement.

3.2 Construction and Dedication of Subject Improvements.

3.2.1 Construction and Dedication of Subject Improvements. In satisfaction of the Subject Development Fees for the Project as set forth in Recital 2.3, Developer shall, at its sole cost, expense and liability, develop and dedicate to the City those certain public Circulation and Sewer improvements (“Subject Improvements”) described in Exhibit “C” attached hereto and incorporated by reference herein. Developer shall develop the Subject Improvements in accordance with plans and specifications to be approved by the City, in accordance with the current City public works standards and policies. The Subject Improvements shall be dedicated to the City as provided in Section 3.2.6. Developer hereby warrants and guarantees all Subject Improvements against any defective work or labor done, or defective materials furnished in the performance of this Agreement, including the maintenance of all landscaping within the Property in a vigorous and thriving condition reasonably acceptable to City, for a period of one (1) year following completion of the work and acceptance by City ( “Warranty”). During the Warranty, Developer shall repair, replace, or reconstruct any defective or otherwise unsatisfactory portion of the Subject Improvements, in accordance with the current ordinances, resolutions, regulations, codes, standards, or other requirements of City, and to the approval of the City Engineer. All repairs, replacements, or reconstruction during the Warranty shall be at the sole cost, expense, and liability of Developer and its surety. As to any Subject Improvements that have been repaired, replaced, or reconstructed 48 -2-
16498.00001\9162190.1

during the Warranty, Developer and its surety hereby agree to extend the Warranty for an additional one (1) year period following City’s acceptance of the repaired, replaced, or reconstructed Subject Improvements. Nothing herein shall relieve Developer from any other liability it may have under federal, state, or local law to repair, replace, or reconstruct any Subject Improvement following expiration of the Warranty or any extension thereof. Developer ’s warranty obligation under this section shall survive the expiration or termination of this Agreement.

3.2.2 Subdivision Improvement Agreements . Developer and City have heretofore entered into one or more subdivision improvement agreements for the Project, pursuant to Government Code section 66462 (“Improvement Agreement”). All work required to be completed by Developer under this Agreement shall be subject to the provisions of the Improvement Agreement, including, without limitation, the security, insurance, prevailing wage, and indemnification provisions thereof.

3.2.3 Meaning of “Dedicate.” The term “dedicate,” as used in this Agreement, means to acquire all necessary land or rights -of-way and to construct thereon the Subject Improvements required by this Agreement, and thereafter to offer to convey such land/rights-of-way and improvements to the City at no cost to the City. Developer shall offer the land/rights -of-way and Subject Improvements at the time required by the City Engineer in the exercise of his or her reasonable discretion. The satisfaction of Developer’s obligations with respect to the dedication of the Subject Improvements described in this Section 3.2 shall be contingent upon the City Council’s acceptance of said improvements, which acceptance shall occur in a manner consistent with the City’s standard policies and standards for the acceptance of dedicated improvements.

3.3 Not a Statutory Development Agreement. This Agreement is not a statutory development agreement as described by Government Code section 65864, et seq. This Agreement confers no vested entitlements with respect to the development of the Project. This Agreement does not limit, in any way whatsoever, any authority the City may have to lawfully increase Impact Fees, change land use regulations, or otherwise lawfully exercise all powers available to the City pursuant to its police power, statutes, and judicial decision. Likewise, nothing in this Agreement shall limit, in any way, any right or remedy Developer may have to protest or challenge any unlawful increase in the Impact Fees . Except where subject to partial or total satisfaction as provided in this Agreement, Developer shall pay all Impact Fees, as they may be adjusted by the City during construction of the Project. Without limiting the generality of the foregoing paragraph, if the City at any time increases its Impact Fees, and such increases can otherwise be lawfully imposed against the Project, then Developer (or its successors, as applicable) shall pay the increased Impact Fees for only those portions of the Project (units or acreage, as applicable) for which the prior, lower Impact Fees have not yet been paid in full at the time provided for in this Agreement. If the City increases any Subject Development Fee, and such increase results in the value (as established by the applicable fee program) of the Subject Improvements being less than Developer’s increased Subject Development Fees for only those portions of the Project for which the prior, lower Impact Fees have not yet been paid in full, then Developer shall pay the amount of the difference between the Subject Improvement’s value and the increased amount of the Subject Development Fees.

3.4 City’s Remedies Upon Default. Subject to Section 3.2, if the Developer fails to complete and offer for dedication a particular public improvement described in Section 3.2 in the 49 -3-
16498.00001\9162190.1

manner required by this Agreement then the City may, upon fifteen (15) days’ prior written notice to the Developer, exercise any one or more of the following remedies, independently or conjunctively:
(i) The City may terminate this Agreement in its entirety and shall have no obligation to reduce the Developer the Subject Fee Obligation as set forth in Section 3.1; provided, however, that the City shall either (1) reimburse the Developer for the Developer ’s actual third -party costs (without interest) incurred with respect to any public improvements satisfactorily completed and dedicated to the City prior to termination, or (2) reimburse the Developer’s Impact Fee obligation in a particular category in an amount equal to the Developer’s actual third-party costs (without interest) incurred with respect to the public improvements related to that category that are satisfactorily completed and dedicated to the City prior to termination; provided, however, that the maximum amount of the reimbursement paid or credit given pursuant to (1) or (2) above shall not exceed the cost for the public improvements satisfactorily completed and dedicated prior to termination as set forth in the applicable fee program or study upon which the applicable Impact Fee is based; or
(ii) The City may terminate this Agreement in its entirety and shall have no obligation to credit to Developer the Subject Impact Fee reduction as set forth in Section 3.1; provided, however, that the City shall either (1) reimburse the Developer for the value ( “Incomplete Value”), as determined in the City Engineer’s reasonable discretion, of any public improvements that are not satisfactorily completed and dedicated to the City prior to termination; or (iii) The City may exercise any other right or remedy available to it at law or in equity.

3.5 No Waiver. Developer’s or the City’s failure to insist on performance of any of the terms or conditions of this Agreement or to exercise any right, remedy or privilege, or Developer’s or the City’s waiver of any breach hereunder, shall not thereafter be deemed a subsequent waiver of any other terms, conditions, or rights, remedies or privileges, whether of the same or similar type.

No party will be deemed to have waived any rights under this Agreement unless the waiver is made in writing and signed by the waiving party’s duly authorized representative. All rights and remedies provided for under this Agreement are cumulative.

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

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

50 -4-
16498.00001\9162190.1

3.8 No Agency. Each party acknowledges that it is not the agent or fiduciary of the other.

3.9 No Assignment. This Agreement, including, without limitation, the parties ’ obligations under Section 3.2, is not assignable, in whole or in part, by Developer, without the prior written consent of the City, and any attempt to make such assignment shall be void and shall constitute an incurable material default under this Agreement.

3.10 Attorneys’ Fees. In the event that any action or proceeding is commenced to regarding any term of this Agreement, the prevailing party in such action or proceeding, in addition to all other relief to which it may be entitled, shall be entitled to recover from the other party the prevailing party’s costs of suit and reasonable attorneys ’ fees. The prevailing party shall be as determined by the court in accordance with Code of Civil Procedure section 1032. The attorneys’ costs and expert fees recoverable pursuant to this Section 3.10 include, without limitation, attorneys’ costs and expert fees incurred on appeal and those incurred in enforcing any judgment rendered.

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

3.11 Notices. All notices, demands or other communications (collectively, “Notices”) required or allowed by this Agreement shall be in writing and shall be considered given: (i) when delivered in person to the recipient named below; or (ii) three (3) business days after deposit in the United States mail, postage prepaid, addressed to the recipient named below; or (iii) on the date of delivery by facsimile transmission to the recipient named below. All Notices shall be addressed as follows:

If to the City: City of Fontana
8353 Sierra Avenue
Fontana, CA 92335
Attn: City Manager

With copies to: Best Best & Krieger LLP
2855 E. Guasti Road, Suite 400
Ontario, CA 91767
Attn: Ruben Duran

If to Developer: CIVF VI – CA1W02, LLC
18300 Von Karman Avenue, Ste 750
Irvine, CA 92612
Attn: Adam Schmid

With copies to: CIVF VI – CA1W02, LLC
One Beacon Street, Suite 2800
Boston, MA 02108
Attn: Asset Management

Any party may, by notice given at any time, require subsequent Notices to be given to another 51 -5-
16498.00001\9162190.1

person or entity, whether a party or an officer or representative of a party, or to a different address, or both. Notices given before actual receipt of Notice of change shall not be invalidated by the change.

3.12 Governing Law. This Agreement and its provisions shall in all respects be interpreted, construed, enforced and governed by and under the laws of the State of California, without regard to its conflict of laws principles.

3.13 Consent to Jurisdiction, Venue and Service. Any action or proceeding brought respecting this Agreement shall be instituted and maintained in the appropriate court in the County of San Bernardino, California. Developer hereby forgoes and waives any provision of State or Federal law or judicial decision providing for a change of venue from such court on the grounds that the City is or may be a party to any such action or proceeding, including, without limitation, California Code of Civil Procedure section 394. Each party hereby irrevocably consents to the personal jurisdiction of the court. Service of process may be made in any manner provided by law.

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

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

3.16 Rules of Construction. The language in all parts of this Agreement shall in all cases be construed as a whole according to its fair meaning, and not strictly for or against, either the City or Developer. Section headings in this Agreement are for convenience only and are not to be considered as a part of this Agreement or in any way limiting or amplifying the provisions hereof.

All provisions and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural, as the identification of the person or persons, firm or firms, corporation or corporations may require. This Agreement is the product of mutual negotiation and drafting efforts.

Accordingly, the judicial rule of construction that ambiguities in a document are to be construed against the drafter of that document shall have no application to the interpretation or enforcement of this Agreement. In any action or proceeding to interpret or enforce this Agreement, the finder of fact may refer to such extrinsic evidence not directly in conflict with the express terms hereof to ascertain and give effect to the intent of the parties to this Agreement.

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

52 -6-
16498.00001\9162190.1

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

[Signatures on Following Pages]
53 16498.00001\9162190.1

SIGNATURE PAGE
TO

DEVELOPMENT IMPACT FEE CREDIT AGREEMENT

CITY OF FONTANA,
a California municipal corporation

By: ________________________________
Matthew C. Ballantyne
City Manager

CIVF VI – CA1W02, LLC,
a Delaware limited liability company

By:_________________________________
Adam Schmid, Director

Attest:

By: _______________________________
Germaine Key, City Clerk

Approved as to form:

Best Best & Krieger LLP
City Attorney

By: _______________________________
Phillip Burum, Deputy City Manager
Development Services Organization

By: _______________________________
Gia Kim
Public Works Director/City Engineer

IN COMPLIANCE WITH INSURANCE ADMINISTRATION POLICIES/PROCEDURES

By: ______________________________
Rakesha Thomas, Director of
Human Resources and Risk Management

54 Exhibit A
16498.00001\9162190.1

EXHIBIT A
TO

DEVELOPMENT IMPACT FEE CREDIT AGREEMENT

Depiction of Property

[Attached]
55 56
6/8/2026
Exhibit B
16498.00001\9162190.1

EXHIBIT B
TO

DEVELOPMENT IMPACT FEE CREDIT AGREEMENT

Subject Development Fees

[Attached]

57 18300 Von Karman Ave, Ste 750
Irvine, CA 92612

QUANTITY UNIT FEE TOTAL
Industrial
16288 Boyle Ave - Sewer Connection Impact Fee1.8798 EDU's $876.61 $1,647.85 $1,647.85
Total Sewer Construction Cost $218,760.04
Total Sewer Connection Master Fee Obligation $0.00
1 LS $7,317.30 $7,317.30
1 LS $6,450.00 $6,450.00
865 LF $115.00 $99,475.00
4 EA $5,000.00 $20,000.00
25 LF $105.00 $2,625.00
1 EA $2,500.00 $2,500.00
2670 SF $8.00 $21,360.00
3 EA $500.00 $1,500.00
1 LS $4,500.00 $4,500.00
$165,727.30
$16,572.73
$182,300.03
$36,460.01
$218,760.04
Mobilization
Construction Staking

SUB-TOTAL
10% Contingency

SUB-TOTAL
8" VCP Sewer
Soft Costs 20% (10% design, 10% Construction Management)

TOTAL SEWER CONSTRUCTION COST
48" Sewer Manhole
6" SDR 26 Sewer Lateral
Connect w/mahole - 18" sewer in Calabash
Sawcut, remove, replace existing improvements
Plug end of pipe
Traffic Control

SEWER CONNECTION IMPACT FEE

SEWER CONNECTION IMPACT FEE
Total Eligible Sewer Connection Fees

SEWER CONSTRUCTION COST
DATE: May 26, 2026

EXHIBIT B

CITY OF FONTANA

IMPACT FEE AGREEMENT EXHIBIT
16288 Boyle Avenue, Fontana, CA 92337
CIVF VI – CA1W02, LLC, a Delaware limited liability company 58 18300 Von Karman Ave, Ste 750
Irvine, CA 92612

QUANTITY UNIT FEE TOTAL

INDUSTRIAL
16288 Boyle Ave - Storm Drain Impact Fee 3.816 Net AC $23,317.00 $88,977.67 $34,089.00
Construction Cost in Excess of Fees ($54,888.67)
Total Obligation - Remaining Fees Due $54,888.67
MOBILIZATION 1 LS $825.00 $825.00
30" RCP 50 L.F. $140.00 $7,000.00
REMOVE CATCH BASIN W=7' 1 EA $1,500.00 $1,500.00
CATCH BASIN W=7' 1 EA $6,500.00 $6,500.00
LOCAL DEPRESSION 1 EA $1,500.00 $1,500.00
CONNECT TO EXISTING STORM DRAIN 1 EA $5,500.00 $5,500.00 PATCH BACK, REPLACE WITH TEMP AC 250 SF $12.00 $3,000.00 $25,825.00
$2,582.50
$28,407.50
Soft Costs 20% (10% design, 10% Construction Management) $5,681.50 $34,089.00

EXHIBIT B

STORM DRAINAGE CONSTRUCTION COST

STORM DRAIN IMPACT FEE

SUB-TOTAL

CITY OF FONTANA

IMPACT FEE AGREEMENT EXHIBIT
16288 Boyle Avenue, Fontana, CA 92337
CIVF VI – CA1W02, LLC, a Delaware limited liability company DATE: May 26, 2026

STORM DRAINAGE - DECLEZ NORTH FEE
Total - Storm Drain Construction Cost
10% Contingency
Total Storm Drainage Construction Cost

SUB-TOTAL
59 18300 Von Karman Ave, Ste 750
Irvine, CA 92612

QUANTITY UNIT FEE TOTAL

INDUSTRIAL
16288 Boyle Ave - Circulation Impact Fee (Warehouse)84,444 S.F. $3.5090 296,314.00$ 16288 Boyle Ave - Circulation Impact Fee (Mezzanine)3,446 S.F. $4.0900 14,094.14$ Subtotal 87,890 S.F. 310,408.14$
303,896.45$
Construction Cost in Excess of Fees (6,511.69)$
Total Obligation - Remaining Fees Due $6,511.69
Mobilization 1 LS $10,963.08 10,963.08$
1 LS $6,600 6,600.00$
1 LS $38,014 38,014.00$
1 LS $56,250 56,250.00$
1 LS $10,680 10,680.00$
Construct 8" curb 105 LF $30.00 3,150.00$
Concrete Sidewalk 675 SF $5.00 3,375.00$
Construct 6.6" min. A.C. over 12" compacted native16452 SF $4.82 79,340.00$ Coldmill & place 0.17" A.C. pavement 5121 SF $2.50 12,802.50$ Construct access ramps per City Std. 1003 1 EA $1,550.00 1,550.00$ Traffic Control 1 LS $7,500.00 7,500.00$
230,224.58$
23,022.46$
253,247.04$
Soft Costs 20% (10% design, 10% Construction Management) 50,649.41$ 303,896.45$
10% Contingency

SUB-TOTAL
Total Circulation Construction Cost
Surveying
Demolition & Grading
New traffic signal
Signing and Striping

SUB-TOTAL

CIRCULATION IMPACT FEE

CIRCULATION IMPACT FEE
Total Circulation Construction Cost

SLOVER/OLEANDER INTERSECTION IMPROVEMENTS
DATE: May 26, 2026

EXHIBIT B

CITY OF FONTANA

IMPACT FEE AGREEMENT EXHIBIT
16288 Boyle Avenue, Fontana, CA 92337
CIVF VI – CA1W02, LLC, a Delaware limited liability company 60 Exhibit C
16498.00001\9162190.1

EXHIBIT C
TO

DEVELOPMENT IMPACT FEE CREDIT AGREEMENT

Subject Improvements

[Attached]

61 EXHIBIT C
62 EXHIBIT C
63 EXHIBIT C
64 City of Fontana
Action Report
City Council Meeting
8437 Sierra Avenue
Fontana, CA 92335
File #: 26-1044 Agenda Date: 6/23/2026
Agenda #: F. Category: Consent Calendar
FROM:

Engineering
SUBJECT:

Final Acceptance of Street and Sewer Improvements on Valencia Avenue for Tract No. 20546 RECOMMENDATION:

1. Accept as complete the street and sewer improvements for Tract No. 20546, located along Valencia Avenue between Oleander Avenue and Cypress Avenue.

2. Adopt Resolution No. 2026-055, accepting sewer on Valencia Avenue for Tract No. 20546 as part of the City sewer system.

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

DISCUSSION:

Cyrus Opportunity Zone Fund II, LP constructed street and sewer improvements on Valencia Avenue, a street that provides access to Tract No. 20546. The subdivision is located along Valencia Avenue between Oleander Avenue and Cypress Avenue.

The street and sewer improvements on Valencia Avenue are now complete and acceptance by the City Council is required pursuant to Fontana Municipal Code, Section 26-184(b). Tract No. 20546 is a private community and the internal improvements are not a part of this action.

The street and sewer improvements have been completed to the satisfaction of the Department of Public Works/Engineering. By accepting the improvements as complete, the City will be taking over the maintenance of these improvements.

This action will also authorize the release of the cash deposit, which was posted in lieu of bonds to guarantee performance of the Subdivision Agreement. The applicable portions of the cash deposit will be released as follows: the performance portion upon approval, the labor and materials portion after six (6) months, and the warranty portion after twelve (12) months, less the total of any claims received. The street and sewer improvements have met all Conditions of Approval and the improvements were inspected by the Department of Engineering.

City of Fontana Printed on 6/18/2026Page 1 of 2
powered by Legistar™
65 File #: 26-1044 Agenda Date: 6/23/2026
Agenda #: F. Category: Consent Calendar
FISCAL IMPACT:

As part of the action to accept as complete the street and sewer improvements on Valencia Avenue for Tract No. 20546, these improvements will be deemed complete and the City will take over operation and maintenance of this public infrastructure. Appropriate funding for the maintenance work is included in the FY 2025-26 revised budget under the Public Works & Engineering Department, Utilities & Streets Division.

MOTION:

Approve staff recommendation.

City of Fontana Printed on 6/18/2026Page 2 of 2
powered by Legistar™
66 1 of 2

RESOLUTION NO. 2026-055

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

CALIFORNIA ACCEPTING THE SEWER SYSTEM ALONG VALENCIA
AVE FOR TRACT NO. 20546 AS PART OF THE CITY’S SEWER
SYSTEM.

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

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

WHEREAS, City Council intends to accept the sewer system for Tract No. 2 0546 as apart of the City of Fontana sewer system; and

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

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

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

Section 2. The City Council hereby accepts the sewer system for Tract N o. 20546 as apart of the City of Fontana’s sewer system.

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

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

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

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

67 Resolution No. 2026-055
2 of 2

APPROVED AND ADOPTED this 23rd day of June, 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 regularly adopted by the Cit y Council at a regular meeting held on the 23rd day of June, 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

68 WQMP21-000021
Exhibit B
(Map / Illustration)

EXHIBIT "B"
69 Revised – RP -09/22/2022

SUBDIVISION IMPROVEMENT AGREEMENT

Tract Map No.:

THIS AGREEMENT is between the City of Fontana, a municipal corporation, County of San Bernardino, State of California ("City") and
("Subdivider" ):

WHEREAS, the application for tentative Tract Map No. , was conditionally approved on ; and

WHEREAS, Subdivider is the owner of that certain parcel of land defined by the Final Map and Subdivider proposes to do and perform certain work of improvement thereon as set forth in this agreement; and

WHEREAS, City desires to assure that the proposed improvements will be done in a good workmanlike manner and in accordance with the laws and standards now in force and effect in the City, the terms and conditions of which are incorporated herein by reference; and

WHEREAS, Subdivider declares acknowledgement the pertinent regulations contained in the City Code and in the Subdivision Map Act (Government Code Sections 66410 to 66500) and agrees to comply therewith; and

WHEREAS, a Fi nal Map of the subdivision, prepared in accordance with the City's Subdivision Ordinance, has been filed by Subdivider with City for approval by the City Council;

NOW THEREFORE, in consideration of the approval and acceptance of the Final Map by the City Council and the acceptance of easements therein offered for dedication for street, utility, and other public purposes and the covenants herein contained, the parties hereto mutually covenant and agree as follows:

1. General requirements:

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

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

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

The estimated cost of construction set forth in Exhibit “A” is for estimation purposes only, and for calculation of the amount of securities 20546
Cyrus Opportunity Zone Fund II, LP
20546
June 7th, 2022
Nine Thousand Three Hundred and Eighty Nine Dollars
9389.00
70 Revised – RP -09/22/2022

required pursuant to the provisions of section (2), below. Subdivider’s obligation to complete the improvements, or any portion of them, is not limited in any way by the estimated cost of construction, and the obligation of Subdivider’s surety in connection with the securities required pursuant to the provisions of section (2), below.

2. Security:

Subdivider shall, at all times, guarantee its performance of this agreement by furnishing to City and maintaining good and sufficient security as required by the State Subdivision Map Act on forms approved by City for the purposes and in the amounts as follows:

a. To ensure a faithful performance of this agreement in regard to the improvements in the amount of 100% of the estimated cost of construction of the improvements; and

b. To secure payment to any contractor, sub- contractor, pers ons renting equipment or furnishing labor or materials for the improvements required to be constructed or installed pursuant to this agreement in the additional amount of 100% of the estimated cost of construction of the improvements; and

c. To guarantee or warranty the work done pur suant to this agreement for a period of one (1) year following acceptance thereof by City Council of the City of Fontana against any defective work or labor done or defective materials furnished in the amount of 20% of the esti mated cost of construction of the improvements; and

d. To warranty the setting of required subdivision monuments within one - year following recordation of the Final Map in the amount of 100% of the estimated cost of setting subdivision monuments as shown in Exhibit "A".

e. To guarant ee the landscape maintenance of all landscape improvements for a period of one year (1) year following acceptance of thereof by the City.

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

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

The security, which guarantees performance, can be released upon acceptance of the improvements by the City Council. The security which guarantees payment to contractor, sub- contractors and to persons furnishing labor, materials or equipment will be released 6 months after acceptance of the improvements by the 71 Revised – RP -09/22/2022

City Council, less the total of all claims to which the City has been given proper notice.

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

3. Time of Completion:

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

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

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

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

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

4. Effective Date of Agreement:

This Agreement shall not become effective unless and until the Subdivision Ma p has been approved by the City Council of the City of Fontana and also accepted 72 Revised – RP -09/22/2022

the Final Map for reco rdation by the County Recorder of the County of San Bernardino.

5. Utility Deposits - Statements:

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

6. Permits - Compliance with Law:

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

7. Definition and Ownership of Improvements:

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

8. Obligations of Subdivider:

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

73 Revised – RP -09/22/2022

9. Superintendence by Subdivider:

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

10. Repair and Replacements:

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

11. Inspection by City:

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

12. Approval by City Engineer.

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

13. Liability for Performance Injury or Damage:

Neither the City nor any of its officers or agents shall be liable to Subdivider or its contractors for any error or omission arising out of or in connection with any work to be performed under this contract. Additionally, the City shall not be liable to the Subdivider or to any other person, firm, or corporation whatsoever, for any injury or damage that may result to any person or property by or from any 74 Revised – RP -09/22/2022

cause whatsoever in, on, or about the subdivision of said land covered by this Agreement, or any part thereof.

14. Indemnification and Release:

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

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

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

15. Liability of Subdivider:

The Subdivider agrees that the use for any purpose and by any person of any and all of the streets, easements and improvements herein specified shall be at the sole and exclusive risk of the Subdivider at all times prior to final acceptance by the City of the completed street and other improvements thereon and therein; provided that acceptance by the City shall in no way eliminate or lessen any of Subdivider's obligations or undertakings contained in this Agreement. The issuance of any occupancy permits (if granted) by the City for buildings located within the subdivision shall not be construed in any manner to constitute an 75 Revised – RP -09/22/2022

acceptance and approval of any or all of the required improvements in said subdivision.

16. Relationship of Contractors:

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

17. Repair or Reconstruction of Defective Work:

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

18. Warranty:

Without limiting the foregoing, Subdivider warrants and guarantees: materials used and workmanship performed on said work for a period of one (1) year after completion and accep tance thereof by the City, and t he setting of all required Final Map monuments.

19. Assignment:

This agreement shall not be assignable by Subdivider without written consent of City.

76 Revised – RP -09/22/2022

IN WITNESS WHEREOF, this agreement shall for all purposes be deemed an original thereof, having been duly executed by the Subdivider herein named on the day of , 20 being duly signed by its undersigned representative(s) pursuant to authority of its governing body.

SUBDIVIDER CITY OF FONTANA

By: By:

City Manager

Name ___________________________ Print Name

Title

By: Attest:

City Clerk
______________________________
Name _____________________________ Print Name

Title

APPROVED AS TO FORM:

By:

Best Best & Krieger LLP
City Attorney

Print Name

APPROVED AS TO CONTENT:

By:

City Engineer

_____________________________
Print Name
Rick Fujimoto
Managing Partner
Matthew C. Ballantyne
Germaine Key
Ruben Duran
Gia Kim
77 Revised – RP -09/22/2022

Attachments: (1) Exhibit "A" – Cost Estimate
(2) Exhibit "B" – Time Extension
(3) Securities

78 1

STAFF USE ONLY
ENGINEERING PC NO.
__________________

CITY OF FONTANA

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

STREET IMPROVEMENTS
UNIT

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

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

OR LESS L.F. 40.00 ________
BLOCK WALL H=6 FEET L.F. 50.00 ________
AGGREGATE BASE TON 30.00 _ __
GUARD POSTS EA 70.00 _
GUARD PANEL (WOOD) L.F. 40.00 _
SAWCUT L.F. 3.50 _
REFLECTORS AND POSTS EA 100.00 _
STREET SIGNS EA 250.00 _
______________________ ________ EA _______ ________ ______________________ ________ EA _______ ________ ______________________ ________ EA _______ ________ ______________________ ________ EA _______ ________ STREET IMPROVEMENT SUBTOTAL __
* A.C. ASPHALTIC CONCRETE
** P.C.C. PORTLAND CONCRETE CEMENT
341
3,751
Dec 14, 2022
Rick Fujimoto
Gerardo Garduno
310-210-9902
20546
Valencia Condos
019120140000
Removal of driveway approach
161

4.00 644
4,395
ELPC22-000061

CITY OF FONTANA

ENGINEERING

PRELIMINARILY APPROVED
BY
DATE

CONSTRUCTION APPROVED

CORRECTIONS

FINAL APPROVED

FOR INFORMATION ONLY
✔
Henry Pham
1/5/2023
79 2

STORM DRAIN IMPROVEMENTS
UNIT

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

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

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

SANITARY SEWER IMPROVEMENTS
UNIT

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

REMODELING OF EXISTING
MANHOLE EA 950.00 ________
** 4" VCP L.F. 50.00 ________
** 6" VCP L.F. 60.00 ________
** 8" VCP L.F. 70.00 ________
** 10" VCP L.F. 80.00 ________
** 12" VCP L.F. 90.00 ________
** 15" VCP L.F. 100.00 ________
__________________ ________ L.F. _______ ________
__________________ ________ L.F. _______ ________
SANITARY SEWER IMPROVEMENT SUBTOTAL ________
** VITRIFIED CLAY PIPE
1 1
600
100
31 1,860
2,560
80 3

TRAFFIC SIGNALS/SIGN/STRIPING
UNIT

ITEM QUANTITY UNIT COST AMOUNT
TRAFFIC SIGNAL MODIFICATION:

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

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

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

STREET IMPROVEMENT SUBTOTAL....................___________________ STORM DRAIN IMPROVEMENTS SUBTOTAL..............___________________ SANITARY SEWER IMPROVEMENTS SUBTOTAL...........___________________ TRAFFIC SIGNAL/SIGNS/STRIPING SUBTOTAL.........___________________ IMPROVEMENT SUBTOTAL ===================
(*USE THIS TOTAL FOR PLAN CHECK & PERMITTING PURPOSES*) CFD LANDSCAPE IMPROVEMENTS ....................___________________ SUBDIVISION MONUMENT GUARANTEE $1,200 + $50/LOT ...___________________ STREET LIGHTS _______ @ $5,000 ................___________________ CUCAMONGA COUNTY WATER DISTRICT FACILITIES.....___________________ IMPROVEMENT SUBTOTAL.... ===================
ADD 35%..................... ____________________
BONDING TOTAL........___________________
4,395
2,560
6,955
6,955
2,434
9,389

CITY OF FONTANA

ENGINEERING

PRELIMINARILY APPROVED
BY
DATE

CONSTRUCTION APPROVED

CORRECTIONS

FINAL APPROVED

FOR INFORMATION ONLY
✔
Henry Pham
1/5/2023
81 4
APPROVED PUBLIC IMPROVEMENT PLANS:

STREET IMP. DWG. NO._____________________
STREET LIGHT DWG. NO.____________________
SEWER IMP. DWG. NO.______________________
STORM DRAIN IMP. DWG. NO. _______________
TRAFFIC SIGNAL DWG. NO.__________________
SIGNING & STRIPING DWG. NO.______________
473 REV
75 REV
82 Revised – RP -09/22/2022

SUBDIVISON IMPROVEMENT AGREEMENT
Tract Map No.:

Exhibit “B”

I,
(Subdivider’s name here)
am the owner of the property to which this Request is being made for of a Time Extension for Project No. .

Name:

Subdivider’s Signature:

Subdivider’s Address:

Date:
(Attached Notary Acknowledgment)

CITY OF FONTANA
BY: DATE:

City Engineer

Print Name
[ ] DENY
[ ] APPROVED

NEW DATE:

83 City of Fontana
8353 Sierra Avenue
Fontana, CA 92335
(909) 350-7610
Engineering Invoice
Case No: ELPC22-000061
Description: (B) PLAN CHECK FOR OFFSITE IMPROVEMENTS FOR VALENCIA 8 UNIT Permit Type: OFFSITE IMP PC
Permit Subtype: STREET & SEWER
Invoice Date: 05/24/2023
Site Address: 16385 VALENCIA AV, FONTANA, CA 92335
Applicant Information
IRVINE, CA 92623
P.O. BOX 17028
Parcel No: 019120140

CYRUS OPPORTUNITY ZONE FUND II LP
(310) 210-9902 (310) 210-9902
IRVINE, CA 92623
P.O. BOX 17028

RICK FUJIMOTO
Contact Information Owner Information
IRVINE CA, 926237028
P O BOX 17028

CYRUS OPPORTUNITY ZONE FUND II
Tract Map: Parcel Map:
3:14 pm
OFFSITE IMPROVEMENTS FOR: SEWER AND STREET
PROJECT: VALENCIA 8 UNIT APARTMENT
LOCATION: 16385 VALENCIA AVE
APN: 0191-201-40
REF: MCN21-000047
Amount DueFee Description Amount PaidAmount
CASH DEPOSIT - IMPROVEMENT SURETY 9,389.00 0.00 9,389.00 COMPUTER FEE-PLAN CHECK 56.03 0.00 56.03
GIS ARCHIVE FEE 104.00 0.00 104.00
PUBLIC IMPROVEMENT PLAN CHECK 1,016.55 0.00 1,016.55
Assessed Fee Amount Amount Paid Amount Due
$0.00$10,565.58$10,565.58Fee Totals:

CASHIER
Invoiced By: HENP
COF_Eng_PermInvoice
84 85
86 87
City of Fontana
Action Report
City Council Meeting
8437 Sierra Avenue
Fontana, CA 92335
File #: 26-1045 Agenda Date: 6/23/2026
Agenda #: G. Category: Consent Calendar
FROM:

Engineering
SUBJECT:

Award a Construction Contract for the City Sidewalk Reconstruction #3 Project (DE-26-167-SB) RECOMMENDATION:

1. Award bid and authorize the City Manager to enter into a construction contract with DT Stellar General Engineering for the construction of the City Sidewalk Reconstruction #3 Project in the amount of $808,161.00 and authorize a 25% contingency in the amount of $202,040.25 (DE-26- 167-SB).

2. Approve and authorize the City Manager to enter into any and all utility agreements, utility easements, and subsequent agreements on behalf of the City of Fontana for City Sidewalk Reconstruction #3 Project.

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

DISCUSSION:

The City of Fontana’s approved Capital Improvement Program Budget includes the City Sidewalk Reconstruction #3 Project (“Project”). This is the third location for the Project and there will be additional contracts forthcoming. The proposed improvements include the rehabilitation of existing sidewalks and drive approaches, and eliminating poor and very poor conditions. The project will improve walkability, increase sidewalk service life, and enhance the safety of pedestrian traffic.

On May 18, 2026, bids for this contract were opened. A total of sixteen (16) bids were received, ranging from $808,161.00 to $1,655,312.30. DT Stellar General Engineering is the lowest bidder in the amount of $808,161.00. The Engineer’s Estimate was $1,100,000.00. After reviewing proposed bid documents and performing reference checks, Engineering staff has determined DT Stellar General Engineering to be the lowest responsible and responsive bidder.

Staff also recommends 25% contingency instead of the traditional 10%. During the previous sidewalk reconstruction project, several additional areas of uneven sidewalk were identified that had not been noted during the initial sidewalk assessment. These newly identified areas were attributed to changes in site conditions over time, primarily due to the growth of adjacent tree roots and normal weather- related deterioration, which further contributed to the displacement and damage of sidewalk panels.

City of Fontana Printed on 6/15/2026Page 1 of 2
powered by Legistar™
88 File #: 26-1045 Agenda Date: 6/23/2026
Agenda #: G. Category: Consent Calendar
Given the efficiency gained by having the contractor already mobilized on site, it will be in the City’s best interest to include the additional sidewalk repairs through a contract change order. The decision to include the additional work will only be made if it is determined to be cost-efficient. This additional work will most likely exceed 10% of the construction contract amount. This approach will not only address emerging deficiencies efficiently, but also enhance pedestrian and resident safety.

FISCAL IMPACT:

The fiscal impact associated with the approval of this item is $808,161.00 for the full term of the construction contract and $202,040.25 for construction contingency, for a total of $1,010,201.25.

These amounts are included in the FY 2025-26 available budget, in 37600001-601-C-8329.

MOTION:

Approve staff recommendation.

City of Fontana Printed on 6/15/2026Page 2 of 2
powered by Legistar™
89 Rialto
Municipal
Airport
San Bernardino
National Forest
Jurupa Hills
Regional Park
Glen Helen
Regional Park
Riverside
Basin
San Sevaine
Channel
Lytle
Creek Wash
San Sevaine
Flood CTRL
Basin
Day Creek
San Sevaine
Channel
Lytle
Creek Wash
Stream
S
tre
a
m
S
trea m
Stream
S
tre
a m
Stream
Stream
S
a
n
S
e
v
a
in
e
C
h
a
n
n
e
l
L y t l e
C
r e e k
W
a s h
F l o o d C o n t r o l C h a n n e l
S
t r e a m
H
a
w
k
e
r
C
ra
w
fo
rd
C
h
a
n
n
e
l
S
tre
a
m
Stream
Stream
Stream
S t r e a m
E a s t E t i w a n d a
C
r e e k
D a y
C
re
e
k
Stream
D
a
y
C
re
e
k
D
a
y
C
re
e
k
E a
s t E
tiw
a
n
d
a
C
re
e
k
Up Railroad
Union Pacific Railroad
SP Railroad
At and SF Railroad
1 432
765
1098
15141311 12
22212019181716
29282726252423
36353433323130
4241403937
484746454443
55545352515049
38 Distress Analysis
city of

C A L I F O R N I A
by Distress Type
Sidewalk and Ramp Distresses
IMS Infrastructure Management Services 2023 FONTANA, CA | Sidewalk and Ramp Distresses 2023 0 0.5 1 1.5 20.25
Miles
Legend
Ramp Distress TypesSidewalk Distress Types
Severe Fault
Severe Sag/Heave
Severe Shattered
Severe Fault
Severe Sag/Heave
Severe Shattered
Ramps Sidewalks
Assets
90 Bid Results
City Sidewalk Reconstruction #3
DE-26-167-SB

1. DT Stellar General Engineering $808,161.00
Winchester, CA

2. CJ Concrete Construction $843,074.00
Santa Fe Springs, CA

3. Towo Enterprise Inc. $845,997.50
Fullerton, CA

4. CT&T Concrete Paving $916,129.20
Diamond Bar, CA

5. LC Paving & Sealing, Inc. $930,600.50
Escondido, CA

6. Onyx Paving Company, Inc. $936,600.00
Anaheim, CA

7. Gentry General Engineering, Inc. $971,221.00
Rancho Cucamonga, CA

8. Calmex Engineering, Inc. $1,015,116.60
Bloomington, CA

9. Estate Design & Construction $1,025,000.00
Culver City, CA

10. Vido Samarzich, Inc. $1,078,616.96
Santa Ana, CA

11. Kalban, Inc. $1,149,579.00
Santa Clarita, CA

12. Prestige Prime Engineering $1,180,618.32
El Cajon, CA
91 13. Pub Construction, Inc. $1,184,742.40
Diamond Bar, CA

14. Elegant Construction, Inc. $1,239,086.30
Irvine, CA

15. Gentry Brothers, Inc. $1,402,156.00
Irwindale, CA

16. Global Builders, Inc. $1,655,312.30
Laguna Hills, CA

92 City of Fontana
Citywide Sidewalk Reconstruction #3 (DE-26-167-SB), bidding on 05/18/2026 2:00 PM (PDT)

Printed 05/18/2026
PlanetBids
93 City of Fontana
Citywide Sidewalk Reconstruction #3 (DE-26-167-SB), bidding on 05/18/2026 2:00 PM (PDT)

Printed 05/18/2026
PlanetBids
94 City of Fontana
Citywide Sidewalk Reconstruction #3 (DE-26-167-SB), bidding on 05/18/2026 2:00 PM (PDT)

Printed 05/18/2026
PlanetBids
95 City of Fontana
Citywide Sidewalk Reconstruction #3 (DE-26-167-SB), bidding on 05/18/2026 2:00 PM (PDT)

Printed 05/18/2026
PlanetBids
96 City of Fontana
Action Report
City Council Meeting
8437 Sierra Avenue
Fontana, CA 92335
File #: 26-1053 Agenda Date: 6/23/2026
Agenda #: H. Category: Consent Calendar
FROM:

Finance
SUBJECT:
2026-27 Statement of Investment Policy
RECOMMENDATION:

Adopt the City of Fontana Statement of Investment Policy for Fiscal Year 2026-27.

COUNCIL GOALS:
· To create a team by working together to provide stability and consistent policy direction.

DISCUSSION:

The City of Fontana Statement of Investment Policy (Policy) requires an annual review and adoption by the City Council. The Policy was last updated in June 2025. The Policy is being presented at this time to ensure that the requirements of the Policy are consistent throughout the fiscal year. The Policy has been certified by the Association of Public Treasurers of the United States and Canada (APT US&C).

There are some minor changes being proposed to the policy including the following:
· Section III - Safekeeping and Custody:
o Clarified safekeeping, custodial, and collateralization requirements for deposits. o Added collateralization requirements (110% for government securities and 150% for mortgage notes) for bank deposits and clarified that pledged collateral must be held by a third-party custodian for the City's sole benefit.
· Section IV - Authorized Investments, Investment Types:
o Section (3) U.S. Government Securities: Added clarification that the maturity of Agency Mortgage-Backed and Asset Backed Securities is measured using Weighted Average Life (WAL).
o Section (6) Commercial Paper: Updated maturity period to three hundred ninety-seven days.
o Updated investment category table for consistency.
· Section IV - Authorized Investments, Investment Maturities:
o Section (2) Weighted Average Life: Added a definition of WAL as a measure of expected principal repayment timing and investment risk. o Section (6) Maximum Maturity: Added clarifying language explaining how the maximum five (5) year maturity is measured by settlement date and WAL for Agency and Non- Agency Mortgage-Backed Securities or Asset-Backed securities. · Section VII - Investment Reporting:

City of Fontana Printed on 6/18/2026Page 1 of 2
powered by Legistar™
97 File #: 26-1053 Agenda Date: 6/23/2026
Agenda #: H. Category: Consent Calendar
o Added Weighted Average Life (WAL) reporting and monitoring requirements for structured securities, including monthly compliance reporting and review thresholds for securities approaching or exceeding policy limits.
o Added monitoring requirements for securities exceeding four-year WAL.

The Investment Review Committee will meet quarterly to discuss the status of current investments, strategies for future investments, and other matters deemed relevant. Additionally, upon approval of this item, the Authorized Investment Officers will be as follows:

Authorized Investment Officers:

City Manager
Chief Financial Officer/Deputy City Treasurer
Deputy Finance Officer
Revenue and Operations Manager
Accounting Manager
FISCAL IMPACT:

None.

MOTION:

Approve staff recommendation.

City of Fontana Printed on 6/18/2026Page 2 of 2
powered by Legistar™
98 CITY OF FONTANA

STATEMENT OF

INVESTMENT POLICY
2026-27

Certified by the Association of Public Treasurers of the United States and Canada (APT US&C)

Prepared by the Finance Department,
Revenue Operations Manager
Reviewed and Approved by
Janet Koehler-Brooks, City Treasurer
99 100

TABLE OF CONTENTS

Page
I. OVERVIEW ................................ ................................ ................................ ......................... 2 INTRODUCTION ................................ ................................ ................................ ................. 2 SCOPE ................................ ................................ ................................ ............................... 2 OBJECTIVES ................................ ................................ ................................ ...................... 2 II. INVESTMENT AUTHORITY AND RESPONSIBILITIES ................................ ....................... 4 AUTHORIZED INVESTMENT OFFICERS ................................ ................................ ........... 4 INVESTMENT REVIEW COMMITTEE ................................ ................................ ................ 4 INVESTMENT PROCEDURES ................................ ................................ ........................... 4 INTERNAL CONTROL ................................ ................................ ................................ ........ 5 CONFLICTS OF INTEREST ................................ ................................ ................................ 5 III. ELIGIBLE FINANCIAL INSTITUTIONS ................................ ................................ ................ 6 SELECTION OF ELIGIBLE FINANCIAL INSTITUTIONS ................................ ..................... 6 SAFEKEEPING AND CUSTODY................................ ................................ ......................... 7 COLLATERALIZATION ................................ ................................ ................................ ....... 7 IV. AUTHORIZED INVESTMENTS ................................ ................................ ........................... 8 INVESTMENT TYPES ................................ ................................ ................................ ......... 8 DUE DILIGENCE REQUIREMENT ................................ ................................ .................... 14 PROHIBITED INVESTMENTS ................................ ................................ .......................... 14 DERIVATIVE INVESTMENTS ................................ ................................ ........................... 14 LEGISLATIVE CHANGES ................................ ................................ ................................ . 15 INVESTMENT MATURITIES ................................ ................................ ............................. 16 V. CASH MANAGEMENT ................................ ................................ ................................ ...... 17 VI. EVALUATION OF INVESTMENT PERFORMANCE ................................ .......................... 18 BENCHMARK COMPARISON ................................ ................................ .......................... 18 VII. INVESTMENT REPORTING ................................ ................................ ............................. 19 VIII. INVESTMENT POLICY REVIEW AND ADOPTION ................................ ........................... 20 IX. GLOSSARY ................................ ................................ ................................ ...................... 21

-i-
101
City of Fontana
Statement of Investment Policy

I. OVERVIEW

INTRODUCTION
The purpose of this document is to provide guidelines for the prudent investment of the unexpended cash in the City’s treasury and outline policies for maximizing the efficiency of the City's cash management system. The ultimate goal is to enhance the economic status of the City while protecting its pooled cash.

SCOPE
Included in the scope of the City's investment policy Funds excluded from this policy include proceeds of debt issuance, retirement/pension funds and deferred compensation funds, and pension or other post-employment benefit funds held in a trust are the following major guidelines and practices which are to be used in achieving the City's primary investment objectives:

 Investment Authority and Responsibilities
 Eligible Financial Institutions
 Authorized Investments
 Investment Maturities
 Cash Management
 Evaluation of Investment Performance
 Investment Reporting
 Investment Policy Review and Adoption

It is intended that this policy cover all funds and investment activities under the d irect authority of the City. These funds are accounted for in the City's Comprehensive Annual Financial Report (CAFR) and include the general fund, special revenue funds, debt service funds, capital project funds, enterprise funds, internal service funds and agency funds.

OBJECTIVES

The City's cash management system is designed to accurate ly monitor and forecast expenditures and revenues, thus enabling the City to invest funds to the fullest extent possible. The City attempts to obtain the highest yield obtainable as long as investments meet the criteria established for safety and liquidity.

10 102
City of Fontana
Statement of Investment Policy

Criteria for selecting investments in the order of priority are:

1. Safety. The safety and risk associated with an investment refers to the potential loss of principal, interest, or a combination of these amounts. The City shall invest in a manner that seeks to avoid capital losses resulting from institution default or the erosion of market value.

2. Liquidity. This refers to the ab ility to convert an investment into cash with a minimal risk of losing some portion of principal or interest. Liquidity is an important investment quality, especially when the need for unexpected funds occurs occasionally.

3. Yield. Yield is the potential dollar earnings an investment can provide and becomes a consideration only after the basic requirements of safety and liquidity have been met.

Portfolio diversification in terms of maturity, instrument types and issuer help minimize the overall risk while maximizing the market rate of return. Therefore, the portfolio should consist of a mix of various types of securities, issuers and maturities as long as the selection and retention are prudent. Occasional measured losses are inevitable and must be considered within the context of the overall portfolio's investment return, provided that adequate diversification has been implemented.

The City operates its pooled cash investments under the "Prudent Investor Standard" described in California Government Code §53600.3 as follows:

“Except as provided in subdivision (a) of Section 27000.3, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapt er are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law."

All participants in the investment process shall act as custodians of the public trust.

Investment officials shall recognize that the investment portfolio is subject to public review and evaluation. The overall program shall be designed and managed with a degree of professionalism that is worthy of the public trust.

1 16498.00003\43741504.2
103
City of Fontana
Statement of Investment Policy
4 II. INVESTMENT AUTHORITY AND RESPONSIBILITIES

AUTHORIZED INVESTMENT OFFICERS
Cash management and investment transactions are the responsibility of the Chief Financial Officer or designee. The City Council has authorized the following officials to undertake investment transactions on behalf of the City:

City Manager
Chief Financial Officer/Deputy City Treasurer
Deputy Finance Officer
Accounting Manager
Revenue Operations Manager

Daily portfolio management responsibilities have been delegated to the Chief Financial Officer/Deputy City Treasurer.

The City may retain the services of an outside investment advisor or manager as approved by the City Council to assist with the City’s investment program who shall retain full liability for and make all investment decisions and transactions in strict accordance with State Law, this Policy and such other written instructions as are provided.

INVESTMENT REVIEW COMMITTEE

At least quarterly, the Investment Review Committee, consisting of the City Treasurer, Chief Financial Officer/Deputy City Treasurer, Deputy Finance Officer, Accounting Manager and Revenue Operations Manager shall meet with the investment advisor or manager to discuss the status of current investments, strategies for future investments, and other matters deemed relevant, and shall report to the City Council as necessary.

INVESTMENT PROCEDURES

The Chief Financial Officer/Deputy City Treasurer has established investment procedures which:
 Adhere to the Statement of Investment Policy
 Prioritize safety and liquidity
 Determine risk and optimizes return
 Provide for a system of due diligence in making investment decisions.

In order to accomplish these goals, a “Model” investment portfolio has been designed to provide the strategic framework for supervising and reporting on the investment portfolio. 104
City of Fontana
Statement of Investment Policy
16498.00003\43741504.2
5 The model was developed according to this policy’s maturity guidelines and is used to facilitate decisions regarding security transactions. Each security selection recommended by the investment advisor or manager shall be designed to move the actual portfolio toward the model portfolio without taking any immediate losses.

No person authorized to conduct investment transactions (including investment advisor or manager) shall engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Chief Financial Officer/Deputy City Treasurer.

All investments selected under this policy, including any investments in foreign securities or currency, must be held with a financial institution that is subject to the jurisdiction of the laws and courts of the United States.

INTERNAL CONTROL

The Finance Department is responsible for ensuring compliance with t he City's investment policy as well as for establishing systems of internal control designed to monitor the activities of any appointed investment advisor or manager, so as to prevent loss due to fraud, employee error, misrepresentation by third parties, unanticipated changes in financial markets, or imprudent actions by the investment advisor or manager, city officers and employees. Timely bank reconciliations are conducted to ensure proper handling of all transactions.

An independent analysis by an external auditor shall be conducted annually to review internal control and compliance with policies and procedures. The Finance Department shall promptly review and eliminate any material weaknesses or significant deficiencie s not considered to be material weaknesses that are identified in the City’s latest audit report.

CONFLICTS OF INTEREST

The City adopts the following policy concerning conflicts of interest:

1. Officers, investment advisor(s) or manager(s), and employees involved in the investment process shall not conduct personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions.

2. Officers, investment advisor(s) or manager(s), and employees involved in the investment process shall disclose to the City Clerk any material financial interests in financial institutions that conduct business with the City of Fontana, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the City's portfolio.
105
City of Fontana
Statement of Investment Policy
6 III. ELIGIBLE FINANCIAL INSTITUTIONS

SELECTION OF ELIGIBLE FINANCIAL INSTITUTIONS
In selecting financial institutions for deposit or invest ment of funds, the Finance Department shall consider the creditworthiness of the institution.

1. Deposits. The City will only deposit funds with an institution that has a rating of at least "A" as assigned by an established rating service based on quarterly financial information provided by the Federal Reserve Board and the Federal Home Loan Bank Board (i.e., The Financial Directory). Ratings will be monitored on a quarterly basis and any downgrade in rating below "A" will be reported to the Investment Review Committee together with a recommendation for possible action.

2. Brokers/Dealers. Investments must be purchased directly from the issuer, from an institution licensed by the state as a broker -dealer, from a member of a federally regulated securities exchange, or from a brokerage firm designated as a primary government dealer by the Federal Reserve Bank.

All financial institutions which desire to do business with the City must supply the Finance Department with the following:

 Completed broker/ dealer questionnaire including certification that the financial institution has reviewed and will comply with the City’s Statement of Investment Policy and applicable California Government Code sections and that it will exercise due diligence in informing the City of all foreseeable risks associated with financial transactions conducted with the firm.

 Certified financial statements.

 Resumé of the primary representative who will be dealing with the City.

The Deputy City Treasurer shall review the information s ubmitted and designate the institution as either eligible or ineligible for City investment transactions. The City will only do business with those institutions designated as “eligible”; however, an “eligible” designation does not guarantee that the City will do business with that institution.

A current audited financial report prepared by an independent certified public accountant shall be submitted to the City annually within six (6) months after the end of the institution’s fiscal year in order for the institution to remain on the “eligible” list. Within the context of the City’s policies regarding portfolio limitations, investment transactions shall be distributed as evenly as possible between financial institutions. 106
City of Fontana
Statement of Investment Policy
16498.00003\43741504.2
7 If the City has an in vestment advisor, the investment advisor may use its own list of authorized broker/dealers to conduct transactions on behalf of the City. The advisor shall make available its list of authorized broker/dealers to City staff upon request and shall provide the City with advance written notice regarding its engagement or termination of any broker/dealer.

SAFEKEEPING AND CUSTODY

The City shall enter into an agreement with a bank trust department or regulated financial services company providing trust services to serve as the safekeeping agent for all direct investments. The safekeeping agent shall hold all investments in an account for the sole benefit of the City.

All security transactions, including collateral requirements, shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by a third -party custodian and evidenced by safekeeping receipts.

COLLATERALIZATION

California Government Code 53652 requires banks and savings and loan institutions to pledge government securities with a market value of 110% of the City’s or Agency’s cash on deposit or first trust deed mortgage notes with a value of 150% of the cash on deposit as collateral for those deposits. This collateral shall be held in a separate pool by another institution in the City’s and Agency’s name and places it ahead of general creditors of the institution.

107
City of Fontana
Statement of Investment Policy
8 IV. AUTHORIZED INVESTMENTS

INVESTMENT TYPES
Investment of City funds is governed by the California Government Code Sections 16429.1 and 53601. Investments may not have a term or maturity at the time of investment of longer than that authorized by Section 53601 or five (5) years (measured by settlement date) unless the City Council has granted express authority, no less than three (3) months prior to the investment, for a specific investment or investment program to exceed such limit.

It should be noted that while the Government Code specifies the maximum percentage of the portfolio which may be held in each type of investment at any one time, fluctuations in the portfolio balance will prevent strict adherence to such restrictions. Therefore, percentage limitations shall apply to investments at the time of purchase. The City will diversify its investments by security type and institution.

Within the context of the State limitations, the following investments are authorized subject to the Due Diligence Requirement on page 14:

1. State Treasurer's Local Agency Investment Fund (LAIF)

Government Code Section 16429.1 : Pursuant to LAIF policy, local government agencies are authorized to invest in this program administered by the California State Treasurer. Monies invested with LAIF are pooled with State monies in order to earn the maximum rate of return consistent with safe and prudent treasury management. A thorough investigation of the pool is required on a continual basis.

2. U.S. Treasury Obligations

Government Code Section 53601(b): U.S. Treasury Notes or other indebtedness secured by the full faith and credit of the federal government.

3. U.S. Government Securities

Government Code Section 53601(f): Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies of the United States government-sponsored enterprises. The maturity of individual Agency Mortgage-Backed or Asset-Backed securities shall be measured by weighted-average-life (WAL), which is defined under “Investment Maturities, Weighted-Average-Life” on page 16.
108
City of Fontana
Statement of Investment Policy
16498.00003\43741504.2
9 4. California State, California State, California Local Government Agencies, and other United States State Bonds

Government Code Sections 53601(c) through (e) : Up to twenty percent (20%) of the City’s portfolio may be invested in this category having at the time of investment a minimum “AA” or its rating equivalent or better by an NRSRO. This category includes:

 Registered state warrants or treasury notes or bonds of the State of California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled or operated by the state or by a department, board, agency, or authority of the state.  Registered treasury notes or bonds of any of the other forty-nine (49) states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other forty-nine (49) states, in addition to California.
 Bonds, notes, warrants, or other evidence of indebtedness of a local agency within the State of California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency.

5. Bankers Acceptances

Government Code Section 53601(g) : Up to forty percent (40%) of the City's portfolio may be invested in Bankers Acceptances which are defined as bills of exchange or time drafts, drawn on and accepted by a commercial bank, which are eligible for purchase by the Federal Reserve System, although no more than thirty percent (30%) of the portfolio may be invested in Bankers Acceptances with any one commercial bank. Additionally, the maturity period cannot exceed one hundred eighty (180) days.

6. Commercial Paper

Government Code Section 53601(h): Up to twenty-five percent (25%) of the City's portfolio may be invested in "Prime" commercial paper as rated by a nationally recognized statistical-rating organization (NRSRO). Issuing corporations must be organized and operating in the United States, have five hundred million dollars ($500,000,000) total assets, and have at least an "A" rating by an NRSRO on debt other than commercial paper. No more than ten percent (10%) of the portfolio may be invested in the commercial paper and medium-term notes of any single issuer.

The maturity period cannot exceed three hundred ninety-seven (397) days. 109
City of Fontana
Statement of Investment Policy
10 7. Negotiable Certificates of Deposit

Government Code Section 53601(i) : Up to thirty percent (30%) of the City's portfolio may be invested in Negotiable Certificates of Deposit issued by a nationally or state -chartered bank or a state or federal association or by a state - licensed branch of a foreign bank. These securities shall be rated in a ratings category of “A” or its equivalent or better by an NRSRO.

8. Medium-Term Notes

Government Code Section 53601(k) : Defined as all corporate and depository institution debt securities with a maximum remaining maturity of five (5) years or less (measured by settlement date), issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Notes eligible for investment under this subdivision must be rated in a rating category of "A" or its equivalent or better by an NRSRO. No more than ten percent (10%) of the portfolio may be invested in the commercial paper and medium-term notes of any single issuer. Up to thirty percent (30%) of the City's portfolio may be so invested.

9. Mortgage or Asset-Backed Securities (ABS)

Government Code Section 53601(o) : Up to twenty percent (20%) of the City's portfolio may be invest ed in mortgage pass -through securities, collateralized mortgage obligations, mortgage -backed or other pay -through bonds, equipment lease-backed certificates, consumer receivable passthrough certificates, or consumer receivable-backed bonds. Securities eligible for investment under this subdivision shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO and have a maximum remaining maturity of five years or less measured on a weighted average life (WAL) basis.

10. Supranational Obligations

Government Code Section 53601(q): Defined as United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter -American Development Bank, and eligible for purchase and sale within the United States. These securities shall be rated in a ratings category of “AA” or its equivalent or better by an NRSRO. Purchases of supranationals shall not excee d thirty percent (30%) of the City’s portfolio nor exceed a five (5)-year term.
110
City of Fontana
Statement of Investment Policy
16498.00003\43741504.2
11 11. Non-Negotiable Certificates of Deposit

Government Code Section 53635 : There is no limit as to the amount of the investment portfolio that may be deposited in certificates of deposit, however diversification is an element of fiduciary standard and will be kept in mind when determining how much of the investment portfolio is deposited in certificates of deposit.

California law requires that public funds be collateralized. The depository must secure its public fund accounts by maintaining with the agent of the depository government securities having a market value of at least one hundred ten percent (110%) of the value of the public fund accounts. If a depository uses mortgage- backed securities (i.e., promissory notes secured by first mortgages or first deeds of trust) as collateral for public deposits, the market value of th e mortgage-backed securities must be at least one hundred fifty percent (150%) of the value of the public fund accounts.

The collateralization requirement may be waived to the extent that funds are federally insured (currently up to $250,000 per institution). For deposits equivalent to the maximum insured amount, security may also be waived for interest accrued on the deposit provided the interest is computed by the depository on the average daily balance of the deposits, paid monthly and computed on a three hundred sixty (360)-day basis.

12. Money Market Mutual Funds

Government Code Sections 53601(l) & 53601.6(b) : Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and E xchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1, et seq.).

To be eligible for investment pursuant to this subdivision these companies will either:

a. Attain the highest -ranking letter or numerical rating provided by not less than two (2) of the three (3) largest NRSRO or
b. Have an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than five (5) years’ experience managing money market mutual funds and with assets u nder management in excess of five hundred million dollars ($500,000,000).

Up to twenty percent (20%) of the City’s portfolio, based on purchase price, may be invested in money market mutual funds.
111
City of Fontana
Statement of Investment Policy
12 13. Joint Powers Authority Pools

Government Code Section 53601(p): Shares of beneficial interest issued by a joint powers authority organized pursuant to Government Code Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (q) of Government Code Section 536 01, inclusive. Each share will represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares will have retained an investment adviser that meets all of the following criteria:

a. The adviser is registered or exempt from registration with the Securities and Exchange Commission.
b. The adviser has not less than five (5) years of experience investing in the securities and obligations authorized in subdivisions (a) to (q) California Government Code Section 53601, inclusive.
c. The adviser has assets under managem ent in excess of five hundred million dollars ($500,000,000).

There is no limit as to the amount of the investment portfolio that may be invested in joint powers authority pools.

It is the current practice of the City of Fontana to invest in the following types of securities.

In order to avoid the risks associated with investing in unfamiliar instruments, any new type of security allowed by the State of California but not listed below must be approved by the Investment Review Committee prior to the investment of City funds.

The portfolio can invest in 144A-registered securities.

Also, while not expressly prohibited by State law, unregistered securities, such as Rule 144A securities, may not be purchased by local agencies that do not meet the threshold of five million dollars ($5,000,000) investments and one hundred million dollars ($100,000,000) in securities. On August 26, 2020, the Securities and Exchange Commission expanded the definition of Qualified Institutional Buyers (QIB)2 to include any institution that qualifies as an accredited investor under Rule 501(a) under the Securities Act that are not otherwise stated in the definition of “qualified institutional buyer” provided they satisfy the one hundred million dollars ($100,000,000) threshold. 112
City of Fontana
Statement of Investment Policy
13 16498.00003\43741504.2

Investment Type Maximum
Maturity
Maximum
% of
Portfolio
Minimum Quality
Requirements
Government
Code
Section
State Treasurer’s Local
Agency Investment Fund
(LAIF)
5 years LAIF
maximum
per account
N/A 16429.1
U.S. Government
Securities
5 years
(MBS/ABS
measured
by
weighted-
average-life)
None None 53601(b)
53601(f)
California State, California
Local Government Agencies,
and other United States
State Bonds
5 years 100% “A” rating
category or its
equivalent or
better
53601(c)
53601(d)
53601(e)
Bankers Acceptances 180 days 40% None 53601(g)
Commercial Paper 397 days 25%
(10% with
one issuer)*
A-1 or higher 53601(h)
Negotiable Certificates of
Deposit
5 years 30% None 53601(i)
Medium-Term Notes 5 years 30% (10%
with
one
issuer)*
“A” rating
category or its
equivalent or
better
53601(k)
Mortgage-Backed or Asset-
Backed Securities
5 years
(measured
by
weighted-
average-life)
20% “AA” rating
category or its
equivalent or
better
53601(o)
Supranational Obligations 5 years 30% “AA” rating
category or its
equivalent or
better
53601(q)
Certificates of Deposit 5 years None None 53635
Money Market Mutual Funds N/A 20% Highest Ranking
at least two
ratings agencies
53601(l) &
53601.6(b)
Joint Powers Authority
Pools
N/A None Minimum $500M
in assets and 5
years of
experience
53601(p)

*Commercial paper and medium-term notes are combined to determine the 10% limit per issuer.
113
City of Fontana
Statement of Investment Policy
14 DUE DILIGENCE REQUIREMENT

As stated the Chief Financial Officer/Deputy City Treasurer, as assisted by an investment advisor or manager, shall make a thorough investigation of an investment pool or mutual fund prior investing funds and on a continual basis. At a minimum, the following information shall be on file for each pool and/or mutual fund:

1. A description of eligible investment securities, and a written statement of investment policy and objectives.

2. A description of interest calculations, how interest is distributed, and how gains and losses are treated.

3. A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited.

4. A description of who may invest in the program, how often, and the size of deposits and withdrawals.

5. A schedule for receiving statements and portfolio listings.

6. Whether reserves, retained earnings, etc. are utilized by the pool/fund.

7. A fee schedule, and when and how fees are assessed.

8. Whether the pool/fund is eligible for bond proceeds and/or will it accept such proceeds.

PROHIBITED INVESTMENTS

In compliance with Government Code Section 53631.5, the City of Fontana shall not invest in inverse floaters, range notes, or interest-only strips that are derived from a pool of mortgages. Additionally, the City shall not invest in any security that could result in zero interest accrual if held to maturity.

The City does not participate in any form of portfolio leverage, including but not limited to securities lending programs, reverse repurchase agreements and margin accounts.

DERIVATIVE INVESTMENTS

Derivatives are investments whose value is “derived” from or based upon the value of other assets or on the level of an interest rate index. The City of Fontana does not invest in derivative products.
114
City of Fontana
Statement of Investment Policy
15 16498.00003\43741504.2

LEGISLATIVE CHANGES

Any State of California legislative action that further restricts allowable maturities, investment types or percentage allocations will be incorporated into the City of Fontana Statement of Investment Policy and supersede any and all previous applicable language.

If the City is holding an investment that is subsequently prohibited by a legisl ative change, the City may hold that investment, if it is deemed prudent by the Investment Review Committee, until the maturity date to avoid an unnecessary loss. 115
City of Fontana
Statement of Investment Policy
16 INVESTMENT MATURITIES

In order to minimize the impact of market risk, while maximizing the investment rate of return, it is intended that all investments will be held to maturity. In order to implement this policy, the following guidelines will be used:

1. Liquidity. Approximately ten percent (10%) of the portfolio shall be held in short- term investments (less than twelve months) as insufficient liquidity could cause the premature sale of a security at a price below the original investment cost.

2. Weighted Average Life. The weighted average life (WAL) of the total portfolio should not exceed two and one-half (2-1/2) years. Individual securities may have weighted-average lives up to but not exceeding five years.

Weighted-Average-Life (WAL) measures the average length of time for anticipated principal repayments to measure a bond's risk and liquidity. In order to calculate a bond's WAL, assumptions must be made regarding prepayment event probabilities, prepayment amounts, prepayment speed, underlying asset leverage, and other collateral features as well as macroeconomic drivers such as, but not limited to, interest rate expectations, home prices, and mortgage rates. Institutionally, proprietary models use these various assumed inputs to estimate the amount and timing of principal repayments in order to produce a WAL output that functions as a useful metric to understand interest rate risk, prepayment risk, and extension risk.

3. Duration. The target duration of the portfolio shall be two (2) years.

4. Diversification of Maturities . Projected cash flow requirements are the primary factor to be used in determining investment maturity terms. After cash flow needs have been met, yield considerations will be the next factor used in determining maturity terms, with the expectation that longer maturity periods will generally yield greater returns. However, the City will diversify its investments by maturity in order to avoid over concentration (in excess of 25%) in a specific maturity sector.

5. Sale of Securities . Investments may be sold prior to maturity for cash flow or appreciation purposes. Howeve r, no investment shall be made based solely on earnings anticipated from capital gains.

6. Maximum Maturity . As previously stated, the maximum maturity term of any individual investment shall not exceed five (5) years (measured by settlement date, or by Weighted Average Life for Agency and Non -Agency Mortgage -Backed Securities or Asset -Backed securities ) unless recommended by an investment advisor or manager, and prior express authority from Council has been granted. 116
City of Fontana
Statement of Investment Policy
17 16498.00003\43741504.2

V. CASH MANAGEMENT

In order to obtain a reasonable return on public funds, the following cash management practices will be followed:

1. Maintain maximum investment of all City funds not required to meet immediate cash flow needs.

2. Pool cash from all City administered funds for inves tment purposes with interest earnings allocated monthly based on the average cash balance of each fund at month end as a percentage of the entire pooled portfolio.

3. Maximize the City's cash flow through immediate deposit of all cash receipts, use of direct deposit when available, and appropriate timing of payment to vendors.

4. Maximize cash flow information available through the use of only one operating bank account.
117
City of Fontana
Statement of Investment Policy
18 VI. EVALUATION OF INVESTMENT PERFORMANCE

The investment portfolio shall be managed using a passive style; market timing shall be ignored, and the focus instead shall be on obtaining a market average rate of return during budgetary and economic cycles, taking into account the City's investment risk constraints and cash flow needs. Investments shall be managed at the portfolio level, not at the level of the individual securities.

BENCHMARK COMPARISON

The investment portfolio shall be structured to optimize the return given the risk constraints and cash flow needs.

Investment performance shall be continually monitored and evaluated by the Investment Review Committee. Investment performance statistics and activity reports shall be generated on a monthly basis for presentation to the City Council.

For reporting purposes, the portfolio’s monthly rate of return shall be compared to the ICE BofA 1-5 Year US Government and Corporate Index .
118
City of Fontana
Statement of Investment Policy
16498.00003\43741504.2
19 VII. INVESTMENT REPORTING

The Finance Department shall prepare and submit a monthly investment report to the City Council.

The Monthly Investment Report shall be available approximately thirty (30) days after the end of the monthly reporting period, or as soon as the information is available, online on the City’s website and included in the Quarterly Budget Report.

The investment report shall include a complete portfolio inventory with details on issue, par value, market value, coupon/rate, final maturity date, weighted-average-life, and unit price.

The report will also include a statement on compliance or noncompliance with the City’s Statement of Investment Policy and a statement on whether there are or are not sufficient funds to meet the City's anticipated cash requirements for the next six months.

The Investment Advisor shall report to the City, on a monthly basis, the weighted-average- life for each structured security to ensure compliance with the individual security 5-year weighted-average-life limitation. Weighted -Average-Life (WAL) measures the average length of time for anticipated principal repayments to measure a bond's risk and liquidity.

In order to calculate a bond's WAL, assumptions must be made regarding prepayment event probabilities, prepayment amounts, prepayment speed, underlying asset leverage, and other collateral features as well as macroeconomic drivers such as, but not limited to, interest rate expectations, home prices, and mortgage rates. Institutionally, proprietary models use these various assumed inputs to estimate the amount and timing of principal repayments in order to produce a WAL output that functions as a useful metric to understand interest rate risk, prepayment risk, and extension risk.

All data shall be maintained by the Investment Advisor for record-keeping purposes. If an individual security is reported to have a weighted-average-life greater than 5 years, it shall be flagged for immediate discussion with both the City and Investment Advisor to determine if the security shall be held or liquidated, depending on underlying risk and broader market conditions. Notwithstanding the aforementioned process, any security with a weighted-average-life greater than 4 years shall be monitored on a monthly basis to note any reporting trends.

119
City of Fontana
Statement of Investment Policy
20 VIII. INVESTMENT POLICY REVIEW AND ADOPTION

This Statement of Investment Policy shall be submitted annually to the City Council for review and adoption in either May or June for the Fiscal period beginning the following July. The policy shall be reviewed at least annually to ensure its consistency with the overall objectives of the City and its relevance to current law and financial and economic trends. Any modifications made thereto must be approved by the City Council. 120
City of Fontana
Statement of Investment Policy
16498.00003\43741504.2
21 IX. GLOSSARY

AGENCIES: Federal agency securities.

BROKER: A broker brings buyers and sellers together for a commission paid by the initiator of the transaction or by both sides.

COLLATERAL: This includes, but is not limited to securities pledged by a bank to secure deposits of public monies.

COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the city.

CERTIFICATES OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CD's are typically negotiable.

COMMERCIAL PAPER (CP): Short-term, negotiable, unsecured promissory notes.

COUPON: The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value.

DELIVERY VERSUS PAYMENT (DVP): Delivery of securities with an exchange of money for the securities.

DERIVATIVE PRODUCTS: Financial instruments whose own value is "derived" from or based upon the value of other assets or on the level of an interest rate index. These instruments often have complex structures with option-like features.

DISCOUNT: The difference between the cost price of a security and its value at maturity when quoted at lower than face value.

DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued at a discount and redeemed at maturity for full face value, e.g., U.S. Treasury Bills.

DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns.

DURATION: A measure of the timing of the cash flows to be received from a given fixed income security. The duration of a security is a useful indicator of its price volatility for given changes in interest rates.
121
City of Fontana
Statement of Investment Policy
22 FEDERAL AGENCY SECURITIES (AGENCIES): Discount and coupon obligations of the federal agencies established by Congress to provide credit to specific sectors of the economy.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits currently up to $100,000 per deposit.

FEDERAL HOME LOAN BANKS (FHLB): The institutions that regulate and lend to savings and loan associations.

FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): A federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). FNMA securities are highly liquid and widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA): Securities are backed by FHA, VA or FMHM mortgages. Security holder is protected by full faith and credit of the U.S. Government.

LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value.

LOCAL AGENCY INVESTMENT FUND (LAIF): Investment program administered by the California State Treasurer where monies invested are pooled with State monies to earn the maximum rate of return consistent with safe and prudent treasury management.

MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.

MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase agreements that establishes each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer to liquidate the underlying securities in the event of default by the seller.

MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.

MEDIUM-TERM NOTES: All corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the Unite d States or any state and operating within the United States.

MONEY MARKET: The market in which short -term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded. For this purpose, bankers’ 122
City of Fontana
Statement of Investment Policy
16498.00003\43741504.2
23 acceptance means one or more time draft(s) for which a bank has committed to making the payment to the holder at maturity.

MONEY MARKET MUTUAL FUND: A type of fixed income mutual fund that invests in debt securities characterized by their short maturities and minimal credit risk.

MORTGAGE PASS-THROUGH SECURITIES: A security created when one or more mortgage holders form a pool of mortgages and sells shares or participation certificates in the pool. The cash flow from the collateral pool is “passed through” to the security holder as monthly payments of principal, interest and prepayments.

MUTUAL FUNDS: Open-end professionally managed investment fund that pools money from many investors to purchase securities.

NEGOTIABLE CERTIFICATES OF DEPOSIT: CDs with a minimum face value of $100,000 that can be traded in a highly-liquid secondary market.

NRSRO: Nationally Recognized Statistical Rating Organization, a credit rating agency approved by the U.S. Securities and Exchange Commission (SEC) to provide information that financial firms must rely on for regulatory purposes. The top firms including Moody’s Investor Services, Standard and Poor’s and Fitch Group.

PORTFOLIO: Collection of securities held by an investor.

PRUDENT PERSON RULE: The standard of care to be used under this policy, whereby investments shall be made with the exercise of that degree of judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation but for investment considering the probable safety of their capital as well as the probable income to be derived.

PRIMARY DEALER: A group of government securities dealers that submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its infor mal oversight. Primary dealers include Securities and Exchange Commission (SEC) registered securities broker-dealers, banks, and a few unregulated firms.

RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.

REPURCHASE AGREEMENT (REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. 123
City of Fontana
Statement of Investment Policy
24 SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection.

SECONDARY MARKET: A market made for the purchase and sale of o utstanding issues following the initial distribution.

SECURITIES AND EXCHANGE COMMISSION (SEC): Agency created by Congress to protect investors in securities transactions by administering securities legislation.

SUPRANATIONAL OBLIGATIONS: United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter - American Development Bank, and eligible for purchase and sale within the United States.

TREASURY BILLS: A non -interest bearing discount security issued by the U.S.

Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.

TREASURY BOND: Long-term U.S. Treasury securities having initial maturities of more than ten years.

TREASURY NOTES: Intermediate term coupon bearing U.S. Treasury securities having initial maturities of from one to ten years.

YIELD: The rate of annual income return on an investment expressed as a percentage.

Income Yield is obtained by dividing the current dollar income by the current market price for the security. Yield to Maturity is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. 124

CITY OF FONTANA

STATEMENT OF

INVESTMENT POLICY
2026-2027

Certified by the Association of Public Treasurers of the United States and Canada (APT US&C)

Prepared by the Finance Department Lisa Conlon,
Revenue Operations Manager
Reviewed and Approved by
Janet Koehler-Brooks, City Treasurer
125

126

TABLE OF CONTENTS

Page
I. OVERVIEW ................................ ................................ ................................ ......................... 2 INTRODUCTION ................................ ................................ ................................ ................. 2 SCOPE ................................ ................................ ................................ ............................... 2 OBJECTIVES ................................ ................................ ................................ ...................... 2 II. INVESTMENT AUTHORITY AND RESPONSIBILITIES ................................ ....................... 4 AUTHORIZED INVESTMENT OFFICERS ................................ ................................ ........... 4 INVESTMENT REVIEW COMMITTEE ................................ ................................ ................ 4 INVESTMENT PROCEDURES ................................ ................................ ........................... 4 INTERNAL CONTROL ................................ ................................ ................................ ........ 5 CONFLICTS OF INTEREST ................................ ................................ ................................ 5 III. ELIGIBLE FINANCIAL INSTITUTIONS ................................ ................................ ................ 6 SELECTION OF ELIGIBLE FINANCIAL INSTITUTIONS ................................ ..................... 6 SAFEKEEPING AND CUSTODY................................ ................................ ......................... 7 COLLATERALIZATION ................................ ................................ ................................ ....... 7 IV. AUTHORIZED INVESTMENTS ................................ ................................ ........................... 8 INVESTMENT TYPES ................................ ................................ ................................ ......... 8 DUE DILIGENCE REQUIREMENT ................................ ................................ .................... 14 PROHIBITED INVESTMENTS ................................ ................................ .......................... 14 DERIVATIVE INVESTMENTS ................................ ................................ ........................... 14 LEGISLATIVE CHANGES ................................ ................................ ................................ . 15 INVESTMENT MATURITIES ................................ ................................ ............................. 16 V. CASH MANAGEMENT ................................ ................................ ................................ ...... 17 VI. EVALUATION OF INVESTMENT PERFORMANCE ................................ .......................... 18 BENCHMARK COMPARISON ................................ ................................ .......................... 18 VII. INVESTMENT REPORTING ................................ ................................ ............................. 19 VIII. INVESTMENT POLICY REVIEW AND ADOPTION ................................ ........................... 20 IX. GLOSSARY ................................ ................................ ................................ ...................... 21

-i-
127
City of Fontana
Statement of Investment Policy

I. OVERVIEW

INTRODUCTION
The purpose of this document is to provide guidelines for the prudent investment of the unexpended cash in the City’s treasury and outline policies for maximizing the efficiency of the City's cash management system. The ultimate goal is to enhance the economic status of the City while protecting its pooled cash.

SCOPE
Included in the scope of the City's investment policy Funds excluded from this policy include proceeds of debt issuance, retirement/pension funds and deferred compensation funds, and pension or other post-employment benefit funds held in a trust are the following major guidelines and practices which are to be used in achieving the City's primary investment objectives:

 Investment Authority and Responsibilities
 Eligible Financial Institutions
 Authorized Investments
 Investment Maturities
 Cash Management
 Evaluation of Investment Performance
 Investment Reporting
 Investment Policy Review and Adoption

It is intended that this policy cover all funds and investment activities under the direct authority of the City. These funds are accounted for in the City's Comprehensive Annual Financial Report (CAFR) and include the general fund, special revenue funds, debt service funds, capital project funds, enterprise funds, internal serv ice funds and agency funds.

OBJECTIVES

The City's cash management system is designed to accurately monitor and forecast expenditures and revenues, thus enabling the City to invest funds to the fullest extent possible. The City attempts to obtain the highest yield obtainable as long as investments meet the criteria established for safety and liquidity.

10 128
City of Fontana
Statement of Investment Policy

Criteria for selecting investments in the order of priority are:

1. Safety. The safety and risk associated with an investment refers to the potential loss of principal, interest, or a combination of these amounts. The City shall invest in a manner that seeks to avoid capital losses resulting from institution default or the erosion of market value.

2. Liquidity. This refers to the ability to convert an investment into cash with a minimal risk of losing some portion of principal or interest. Liquidity is an important investment qua lity, especially when the need for unexpected funds occurs occasionally.

3. Yield. Yield is the potential dollar earnings an investment can provide and becomes a consideration only after the basic requirements of safety and liquidity have been met.

Portfolio diversification in terms of maturity, instrument types and issuer help minimize the overall risk while maximizing the market rate of return. Therefore, the portfolio should consist of a mix of various types of securities, issuers and maturities as long as the selection and retention are prudent. Occasional measured losses are inevitable and must be considered within the context of the overall portfolio's investment return, provided that adequate diversification has been implemented.

The City operates its pooled cash investments under the "Prudent Investor Standard" described in California Government Code §53600.3 as follows:

“Except as provided in subdivision (a) of Section 27000.3, all governing bodies of local agencies or persons authorized to make inve stment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law."

All participants in the investment process shall act as custodians of the public trust.

Investment officials shall recognize that the investment portfolio is subject to public review and evaluation. The overall program shall be designed and managed with a degree of professionalism that is worthy of the public trust.

1 129
City of Fontana
Statement of Investment Policy
4 II. INVESTMENT AUTHORITY AND RESPONSIBILITIES

AUTHORIZED INVESTMENT OFFICERS
Cash management and investment transactions are the responsibility of the Chief Financial Officer or designee. The City Council has authorized the following officials to undertake investment transactions on behalf of the City:

City Manager
Chief Financial Officer/Deputy City Treasurer
Deputy Finance Officer
Accounting Manager
Revenue Operations Manager

Daily portfolio management responsibilities have been delegated to the Chief Financial Officer/Deputy City Treasurer.

The City may retain the services of an outside investment advisor or manager as approved by the City Council to assist with the City’s investment program who shall retain full liability for and make all investment decisions and transactions in strict accordance with State Law, this Policy and such other written instructions as are provided.

INVESTMENT REVIEW COMMITTEE

At least quarterly, the Investment Review Committee, consisting of the City Treasurer, Chief Financial Officer/Deputy City Treasurer, Deputy Finance Officer, Accounting Manager and Revenue Operations Manager shall meet with the investment advisor or manager to discuss the status of current investments, strategies for future investments, and other matters deemed relevant, and shall report to the City Council as necessary.

INVESTMENT PROCEDURES

The Chief Financial Officer/Deputy City Treasurer has established investment procedures which:
 Adhere to the Statement of Investment Policy
 Prioritize safety and liquidity
 Determine risk and optimizes return
 Provide for a system of due diligence in making investment decisions.

In order to accomplish these goals, a “Model” investment portfolio has been designed to provide the strategic framework for supervising and reporting on the investment portfolio. 130
City of Fontana
Statement of Investment Policy
5 The model was developed according to this policy’s maturity guidelines and is used to facilitate decisions regarding security transactions. Each security selection recommended by the investment advisor or manager shall be designed to move the actual portfolio toward the model portfolio without taking any immediate losses.

No person authorized to conduct investment transactions (including investment advisor or manager) shall engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Chief Financial Officer/Deputy City Treasurer.

All investments selected under this policy, including any investments in foreign securities or currency, must be held with a financial institution that is subject to the jurisdiction of the laws and courts of the United States.

INTERNAL CONTROL

The Finance Department is responsible for ensuring compliance with the City's investment policy as well as for establishing systems of internal control designed to monitor the activities of any appointed investment advisor or manager, so as to prevent loss due to fraud, employee error, misrepresentation by third parties, unanticipated changes in financial markets, or imprudent actions by the investment advisor or manager, city officers and employees. Timely bank reconciliations are conducted to ensure proper handling of all transactions.

An independent analysis by an external auditor shall be conducted annually to review internal control and compliance with policies and procedures. The Finance Department shall promptly review and eliminate any material weaknesses or significant deficiencie s not considered to be material weaknesses that are identified in the City’s latest audit report.

CONFLICTS OF INTEREST

The City adopts the following policy concerning conflicts of interest:

1. Officers, investment advisor(s) or manager(s), and employees involved in the investment process shall not conduct personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions.

2. Officers, investment advisor(s) or manager(s), and employees involved in the investment process shall disclose to the City Clerk any material financial interests in financial institutions that conduct business with the City of Fontana, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the City's portfolio.
131
City of Fontana
Statement of Investment Policy
6 III. ELIGIBLE FINANCIAL INSTITUTIONS

SELECTION OF ELIGIBLE FINANCIAL INSTITUTIONS
In selecting financial institutions for deposit or investment of funds, the Finance Department shall consider the creditworthiness of the institution.

1. Deposits. The City will only deposit funds with an institution that has a rating of at least "A" as assigned by an established rating service based on quarterly financial information provided by the Federal Reserve Board and the Federal Home Loan Bank Board (i.e., The Financial Directory). Ratings will be monitored on a quarterly basis and any downgrade in rating below "A" will be reported to the Investm ent Review Committee together with a recommendation for possible action.

2. Brokers/Dealers. Investments must be purchased directly from the issuer, from an institution licensed by the state as a broker -dealer, from a member of a federally regulated securities exchange, or from a brokerage firm designated as a primary government dealer by the Federal Reserve Bank.

All financial institutions which desire to do business with the City must supply the Finance Department with the following:

 Completed bro ker/ dealer questionnaire including certification that the financial institution has reviewed and will comply with the City’s Statement of Investment Policy and applicable California Government Code sections and that it will exercise due diligence in informing the City of all foreseeable risks associated with financial transactions conducted with the firm.

 Certified financial statements.

 Resumé of the primary representative who will be dealing with the City.

The Deputy City Treasurer shall review the information submitted and designate the institution as either eligible or ineligible for City investment transactions. The City will only do business with those institutions designated as “eligible”; however, an “eligible” designation does not guarantee that the City will do business with that institution.

A current audited financial report prepared by an independent certified public accountant shall be submitted to the City annually within six (6) months after the end of the institution’s fiscal year in order for the institution to remain on the “eligible” list. Within the context of the City’s policies regarding portfolio limitations, investment transactions shall be distributed as evenly as possible between financial institutions. 132
City of Fontana
Statement of Investment Policy
7 If the City has an investment advisor, the investment advisor may use its own list of authorized broker/dealers to conduct transactions on behalf of the City. The advisor shall make available its list of authorized broker/dealers to City staff upon request and sh all provide the City with advance written notice regarding its engagement or termination of any broker/dealer.

SAFEKEEPING AND CUSTODY

The City shall enter into an agreement with a bank trust department or regulated financial services company providing trust services to serve as the safekeeping agent for all direct investments. The safekeeping agent shall hold all investments in an account for the sole benefit of the City.

All security transactions, including collateral requirements, shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by a third -party custodian and evidenced by safekeeping receipts.

COLLATERALIZATION

California Government Code 53652 requires banks and savings and loan institutions to pledge government securities with a market value of 110% of the City’s or Agency’s cash on deposit or first trust deed mortgage notes with a value of 150% of the cash on deposit as collateral for those deposits. This collateral shall be held in a separate pool by another institution in the City’s and Agency’s name and places it ahead of general creditors of the institution.

133
City of Fontana
Statement of Investment Policy
8 IV. AUTHORIZED INVESTMENTS

INVESTMENT TYPES
Investment of City funds is governed by the California Government Code Sections 16429.1 and 53601. Investments may not have a term or maturity at the time of investment of longer than that authorized by Section 53601 or five (5) years (measured by settlement date) unless the City Council has granted express authority, no less than three (3) months prior to the investment, for a specific investment or investment program to exceed such limit.

It should be noted that while the Government Code specifies the maximum percentage of the portfolio which may be held in each type of investment at any on e time, fluctuations in the portfolio balance will prevent strict adherence to such restrictions. Therefore, percentage limitations shall apply to investments at the time of purchase. The City will diversify its investments by security type and institution.

Within the context of the State limitations, the following investments are authorized subject to the Due Diligence Requirement on page 14:

1. State Treasurer's Local Agency Investment Fund (LAIF)

Government Code Section 16429.1 : Pursuant to LAIF policy, local government agencies are authorized to invest in this program administered by the California State Treasurer. Monies invested with LAIF are pooled with State monies in order to earn the maximum rate of return consistent with safe and prudent treasury management. A thorough investigation of the pool is required on a continual basis.

2. U.S. Treasury Obligations

Government Code Section 53601(b): U.S. Treasury Notes or other indebtedness secured by the full faith and credit of the federal government.

3. U.S. Government Securities

Government Code Section 53601(f): Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies of the United States government-sponsored enterprises. The maturity of individual Agency Mortgage-Backed or Asset-Backed securities shall be measured by weighted-average-life (WAL), which is defined under “Investment Maturities, Weighted-Average-Life” on page 16.
134
City of Fontana
Statement of Investment Policy
9 4. California State, California State, California Local Government Agencies, and other United States State Bonds

Government Code Sections 53601(c) through (e) : Up to twenty percent (20%) of the City’s portfolio may be invested in this category having at the time of investment a minimum “AA” or its rating equivalent or better by an NRSRO. This category includes:

 Registered state warrants or treasury notes or bonds of the State of California, including bonds payable sole ly out of the revenues from a revenue-producing property owned, controlled or operated by the state or by a department, board, agency, or authority of the state.  Registered treasury notes or bonds of any of the other forty-nine (49) states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other forty-nine (49) states, in addition to California.
 Bonds, notes, warrants, or other evidence of indebtedness of a local agency within the State of California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency.

5. Bankers Acceptances

Government Code Section 53601(g) : Up to forty percent (40%) of the City's portfolio may be invested in Bankers Acceptances which are defined as bills of exchange or time drafts, drawn on and accepted by a commercial bank, which are eligible for purchase by the Federal Reserve System, although no more than thirty percent (30%) of the portfolio may be invested in Bankers Acceptances with any one commercial bank. Additionally, the maturity period cannot exceed one hundred eighty (180) days.

6. Commercial Paper

Government Code Section 53601(h): Up to twenty-five percent (25%) of the City's portfolio may be invested in "Prime" commercial paper as rated by a nationally recognized statistical-rating organization (NRSRO). Issuing corporations must be organized and operating in the United States, have five hundred million dollars ($500,000,000) total assets, and have at least an "A" rating by an NRSRO on debt other than commercial paper. No more than ten percent (10%) of the portfolio may be invested in the commercial paper and medium-term notes of any single issuer.

The maturity period cannot exceed three hundred ninety seven (270 397) days. 135
City of Fontana
Statement of Investment Policy
10 7. Negotiable Certificates of Deposit

Government Code Section 53601(i) : Up to thirty percent (30%) of the City's portfolio may be invested in Negotiable Certificates of Deposit issued by a nationally or state -chartered bank or a state or federal association or by a state - licensed branch of a foreign bank. These securities shall be rated in a ratings category of “A” or its equivalent or better by an NRSRO.

8. Medium-Term Notes

Government Code Section 53601(k) : Defined as all corporate and depository institution debt securities with a maximum remaining maturity of five (5) years or less (measured by settlement date), issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Notes eligible for investment under this subdivision must be rated in a rating category of "A" or its equivalent or better by an NRSRO. No more than ten percent (10%) of the portfolio may be invested in the commercial p aper and medium -term notes of any single issuer. Up to thirty percent (30%) of the City's portfolio may be so invested.

9. Mortgage or Asset-Backed Securities (ABS)

Government Code Section 53601(o) : Up to twenty percent (20%) of the City's portfolio may be invested in mortgage pass -through securities, collateralized mortgage obligations, mortgage -backed or other pay -through bonds, equipment lease-backed certificates, consumer receivable passthrough certificates, or consumer receivable-backed bonds. Securities eligible for investment under this subdivision shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO and have a maximum remaining maturity of five years or less measured on a weighted average life (WAL) basis.

10. Supranational Obligations

Government Code Section 53601(q): Defined as United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter -American Development Bank, and eligible for purchase and sale within the United States. These securities shall be rated in a ratings category of “AA” or its equivalent or better by an NRSRO. Purchases of supranationals shall not excee d thirty percent (30%) of the City’s portfolio nor exceed a five (5)-year term.
136
City of Fontana
Statement of Investment Policy
11 11. Non-Negotiable Certificates of Deposit

Government Code Section 53635 : There is no limit as to the amount of the investment portfolio that may be deposited in cer tificates of deposit, however diversification is an element of fiduciary standard and will be kept in mind when determining how much of the investment portfolio is deposited in certificates of deposit.

California law requires that public funds be collater alized. The depository must secure its public fund accounts by maintaining with the agent of the depository government securities having a market value of at least one hundred ten percent (110%) of the value of the public fund accounts. If a depository uses mortgage- backed securities (i.e., promissory notes secured by first mortgages or first deeds of trust) as collateral for public deposits, the market value of the mortgage-backed securities must be at least one hundred fifty percent (150%) of the value of the public fund accounts.

The collateralization requirement may be waived to the extent that funds are federally insured (currently up to $250,000 per institution). For deposits equivalent to the maximum insured amount, security may also be waived for interest accrued on the deposit provided the interest is computed by the depository on the average daily balance of the deposits, paid monthly and computed on a three hundred sixty (360)-day basis.

12. Money Market Mutual Funds

Government Code Sections 5360 1(l) & 53601.6(b) : Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1, et seq.).

To be eligible for investment pursuant to this subdivision these companies will either:

a. Attain the highest -ranking letter or numerical rating provided by not less than two (2) of the three (3) largest NRSRO or
b. Have an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than five (5) years’ experience managing money market mutual funds and with assets under management in excess of five hundred million dollars ($500,000,000).

Up to twenty percent (20%) of the City’s portfolio, based on purchase price, may be invested in money market mutual funds.
137
City of Fontana
Statement of Investment Policy
12 13. Joint Powers Authority Pools

Government Code Section 53601(p): Shares of beneficial interest issued by a joint powers authority organized pursuant to Government Code Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (q) of Government Code Section 53601, inclusive. Each share will represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares will have retained an investment adviser that meets all of the following criteria:

a. The adviser is registered or exempt from re gistration with the Securities and Exchange Commission.
b. The adviser has not less than five (5) years of experience investing in the securities and obligations authorized in subdivisions (a) to (q) California Government Code Section 53601, inclusive.
c. The adviser has assets under management in excess of five hundred million dollars ($500,000,000).

There is no limit as to the amount of the investment portfolio that may be invested in joint powers authority pools.

It is the current practice of the City of Fontana to invest in the following types of securities.

In order to avoid the risks associated with investing in unfamiliar instruments, any new type of security allowed by the State of California but not listed below must be approved by the Investment Review Committee prior to the investment of City funds.

The portfolio can invest in 144A-registered securities.

Also, while not expressly prohibited by State law, unregistered securities, such as Rule 144A securities, may not be purchased by local agencies that do not meet the threshold of five million dollars ($5,000,000) investments and one hundred million dollars ($100,000,000) in securities. On August 26, 2020, the Securities and Exchange Commission expanded the definition of Qualified Instituti onal Buyers (QIB)2 to include any institution that qualifies as an accredited investor under Rule 501(a) under the Securities Act that are not otherwise stated in the definition of “qualified institutional buyer” provided they satisfy the one hundred million dollars ($100,000,000) threshold. 138
City of Fontana
Statement of Investment Policy
13 Investment Type Maximum
Maturity
Maximum
% of
Portfolio
Minimum Quality
Requirements
Government
Code
Section
State Treasurer’s Local
Agency Investment Fund
(LAIF)
5 years LAIF
maximum
per account
N/A 16429.1
U.S. Government
Securities
5 years
(MBS/ABS
measured
by
weighted-
average-life)
None None 53601(b)
53601(f)
California State, California
Local Government Agencies,
and other United States
State Bonds
5 years 100% “A” rating
category or its
equivalent or
better
53601(c)
53601(d)
53601(e)
Bankers Acceptances 180 days 40% None 53601(g)
Commercial Paper 270 397
days
25%
(10% with
one issuer)*
A-1 or higher 53601(h)
Negotiable Certificates of
Deposit
5 years 30% None 53601(i)
Medium-Term Notes 5 years 30% (10%
with
one
issuer)*
“A” rating
category or its
equivalent or
better
53601(k)
Mortgage-Backed or Asset-
Backed Securities
5 years
(measured
by
weighted-
average-life)
20% “AA” rating
category or its
equivalent or
better
53601(o)
Supranational Obligations 5 years 30% “AA” rating
category or its
equivalent or
better
53601(q)
Certificates of Deposit 5 years None None 53635
Money Market Mutual Funds N/A 20% Highest Ranking
at least two
ratings agencies
53601(l) &
53601.6(b)
Joint Powers Authority
Pools
N/A None Minimum $500M
in assets and 5
years of
experience
53601(p)

*Commercial paper and medium-term notes are combined to determine the 10% limit per issuer.
139
City of Fontana
Statement of Investment Policy
14 DUE DILIGENCE REQUIREMENT

As stated the Chief Financial Officer/Deputy City Treasurer, as assisted by an investment advisor or manager, shall make a thorough investigation of an investment pool or mutual fund prior investing funds and on a continual basis. At a minimum, the following information shall be on file for each pool and/or mutual fund:

1. A description of eligible investment securities, and a written statement of investment policy and objectives.

2. A description of interest calculations, how interest is distributed, and how gains and losses are treated.

3. A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited.

4. A description of who may invest in the program, how often, and the size of deposits and withdrawals.

5. A schedule for receiving statements and portfolio listings.

6. Whether reserves, retained earnings, etc. are utilized by the pool/fund.

7. A fee schedule, and when and how fees are assessed.

8. Whether the pool/fund is eligible for bond proceeds and/or will it accept such proceeds.

PROHIBITED INVESTMENTS

In compliance with Government Code Section 53631.5, the City of Fontana shall not invest in inverse floaters, range notes, or interest-only strips that are derived from a pool of mortgages. Additionally, the City shall not invest in any security that could result in zero interest accrual if held to maturity.

The City does not participate in any form of portfolio leverage, including but not limited to securities lending programs, reverse repurchase agreements and margin accounts.

DERIVATIVE INVESTMENTS

Derivatives are investments whose value is “derived” from or based upon the value of other assets or on the level of an interest rate index. The City of Fontana does not invest in derivative products.
140
City of Fontana
Statement of Investment Policy
15 LEGISLATIVE CHANGES

Any State of California legislative action that further restricts allowable maturities, investment types or percentage allocations will be incorporated into the City of Fontana Statement of Investment Policy and supersede any and all previous applicable language.

If the City is holding an investment that is sub sequently prohibited by a legislative change, the City may hold that investment, if it is deemed prudent by the Investment Review Committee, until the maturity date to avoid an unnecessary loss. 141
City of Fontana
Statement of Investment Policy
16 INVESTMENT MATURITIES

In order to minimize the impact of market risk, while maximizing the investment rate of return, it is intended that all investments will be held to maturity. In order to implement this policy, the following guidelines will be used:

1. Liquidity. Approximately ten percent (10%) of the portfolio shall be held in short - term investments (less than twelve months) as insufficient liquidity could cause the premature sale of a security at a price below the original investment cost.

2. Weighted Average Life. The weighted average life (WAL) of the total portfolio should not exceed two and one-half (2-1/2) years. Individual securities may have weighted-average lives up to but not exceeding five years.

Weighted-Average-Life (WAL) measures the average length of time for anticipated principal repayments to measure a bond's risk and liquidity. In order to calculate a bond's WAL, assumptions must be made regarding prepayment event probabilities, prepayment amounts, prepayment speed, underlying asset leverage, and other collateral features as well as macroeconomic drivers such as, but not limited to, interest rate expectations, home prices, and mortgage rates. Institutionally, proprietary models use these various assumed inputs to estimate the amount and timing of principal repayments in order to produce a WAL output that functions as a useful metric to understand interest rate risk, prepayment risk, and extension risk.

3. Duration. The target duration of the portfolio shall be two (2) years.

4. Diversification of Maturities. Projected cash flow requirements are the primary factor to be used in determining investment maturity terms. After cash flow needs have been met, yield considerations will be the next factor used in determining maturity terms, with the expectation that longer maturity periods will generally yield greater returns. However, the City will diversify its investments by maturity in order to avoid over concentration (in excess of 25%) in a specific maturity sector.

5. Sale of Securities . Investments may be sold prior to maturity for cash flow or appreciation purposes. However, no investment shall be made based solely on earnings anticipated from capital gains.

6. Maximum Maturity . As previously stated, the maximum maturity term of any individual investment shall not exceed five (5) years (measured by settlement date, or by Weighted Average Life for Agency and Non -Agency Mortgage -Backed Securities or Asset -Backed securities ) unless recommended by an investment advisor or manager, and prior express authority from Council has been granted. 142
City of Fontana
Statement of Investment Policy
17 V. CASH MANAGEMENT

In order to obtain a reasonable return on public funds, the following cash management practices will be followed:

1. Maintain maximum investment of all City funds not required to meet immediate cash flow needs.

2. Pool cash from all City administered funds for investment purposes with interest earnings allocated monthly based on the average cash balance of each fund at month end as a percentage of the entire pooled portfolio.

3. Maximize the City's cash flow through immediate deposit of all cash receipts, use of direct deposit when available, and appropriate timing of payment to vendors.

4. Maximize cash flow information available through the use of only one operating bank account.
143
City of Fontana
Statement of Investment Policy
18 VI. EVALUATION OF INVESTMENT PERFORMANCE

The investment portfolio shall be managed using a passive style; market timing shall be ignored, and the focus instead shall be on obtaining a market average rate of return during budgetary and economic cycles, taking into account the City's investment risk constraints and cash flow needs. Investments shall be managed at the portfolio level, not at the level of the individual securities.

BENCHMARK COMPARISON

The investment portfolio shall be structured to optimize the return given the risk constraints and cash flow needs.

Investment performance shall be continually monitored and evaluated by the Investment Review Committee. Investment performance statistics and activity reports shall be generated on a monthly basis for presentation to the City Council.

For reporting purposes, the portfolio’s monthly rate of return shall be compared to the ICE BofA 1-5 Year US Government and Corporate Index .
144
City of Fontana
Statement of Investment Policy
19 VII. INVESTMENT REPORTING

The Finance Department shall prepare and submit a monthly investment report to the City Council.

The Monthly Investment Report shall be available approximately thirty (30) days after the end of the monthly reporting period, or as soon as the information is available, online on the City’s website and included in the Quarterly Budget Report.

The investment report shall include a complete portfolio inventory with details on issue, par value, market value, coupon/rate, final maturity date, weighted-average-life, and unit price.

The report will also include a statement on compliance or noncompliance with the City’s Statement of Investment Policy and a statement on whether there are or are not sufficient funds to meet the City's anticipated cash requirements for the next six months.

The Investment Advisor shall report to the City, on a monthly basis, the weighted-average- life for each structured security to ensure compliance with the individual security 5-year weighted-average-life limitation. Weighted -Average-Life (WAL) measures the average length of time for anticipated principal repayments to measure a bond's risk and liquidity.

In order to calculate a bond's WAL, assumptions must be made regarding prepayment event probabilities, prepayment amounts, prepayment s peed, underlying asset leverage, and other collateral features as well as macroeconomic drivers such as, but not limited to, interest rate expectations, home prices, and mortgage rates. Institutionally, proprietary models use these various assumed inputs to estimate the amount and timing of principal repayments in order to produce a WAL output that functions as a useful metric to understand interest rate risk, prepayment risk, and extension risk.

All data shall be maintained by the Investment Advisor for record-keeping purposes. If an individual security is reported to have a weighted-average-life greater than 5 years, it shall be flagged for immediate discussion with both the City and Investment Advisor to determine if the security shall be held or liquid ated, depending on underlying risk and broader market conditions. Notwithstanding the aforementioned process, any security with a weighted-average-life greater than 4 years shall be monitored on a monthly basis to note any reporting trends.

145
City of Fontana
Statement of Investment Policy
20 VIII. INVESTMENT POLICY REVIEW AND ADOPTION

This Statement of Investment Policy shall be submitted annually to the City Council for review and adoption in either May or June for the Fiscal period beginning the following July. The policy shall be reviewed at least annually to ensure its consistency with the overall objectives of the City and its relevance to current law and financial and economic trends. Any modifications made thereto must be approved by the City Council. 146
City of Fontana
Statement of Investment Policy
21 IX. GLOSSARY

AGENCIES: Federal agency securities.

BROKER: A broker brings buyers and sellers together for a commission paid by the initiator of the transaction or by both sides.

COLLATERAL: This includes, but is not limited to securities pledged by a bank to secure deposits of public monies.

COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the city.

CERTIFICATES OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CD's are typically negotiable.

COMMERCIAL PAPER (CP): Short-term, negotiable, unsecured promissory notes.

COUPON: The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value.

DELIVERY VERSUS PAYMENT (DVP): Delivery of securities with an exchange of money for the securities.

DERIVATIVE PRODUCTS: Financial instruments whose own value is "derived" from or based upon the value of other assets or on the level of an interest rate index. These instruments often have complex structures with option-like features.

DISCOUNT: The difference between the cost price of a security and its value at maturity when quoted at lower than face value.

DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued at a discount and redeemed at maturity for full face value, e.g., U.S. Treasury Bills.

DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns.

DURATION: A measure of the timing of the cash flows to be received from a given fixed income security. The duration of a security is a useful indicator of its price volatility for given changes in interest rates.
147
City of Fontana
Statement of Investment Policy
22 FEDERAL AGENCY SECURITIES (AGENCIES): Discount and coupon obligations of the federal agencies established by Congress to provide credit to specific sectors of the economy.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits currently up to $100,000 per deposit.

FEDERAL HOME LOAN BANKS (FHLB): The institutions that regulate and lend to savings and loan associations.

FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): A federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). FNMA securities are highly liquid and widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA): Securities are backed by FHA, VA or FMHM mortgages. Security holder is protected by full faith and credit of the U.S. Government.

LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value.

LOCAL AGENCY INVESTMENT FUND (LAIF): Investment program administered by the California State Treasurer where monies invested are pooled with State monies to earn the maximum rate of return consistent with safe and prudent treasury management.

MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.

MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase agreements that establishes each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer to liquidate the underlying securities in the event of default by the seller.

MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.

MEDIUM-TERM NOTES: All corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States.

MONEY MARKET: The market in which short -term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded. For this purpose, bankers’ 148
City of Fontana
Statement of Investment Policy
23 acceptance means one or more time draft(s) for which a bank has committed to making the payment to the holder at maturity.

MONEY MARKET MUTUAL FUND: A type of fixed income mutual fund that invests in debt securities characterized by their short maturities and minimal credit risk.

MORTGAGE PASS-THROUGH SECURITIES: A security created when one or more mortgage holders form a pool of mortgages and sells shares or participation certificates in the pool. The cash flow from the collateral pool is “passed through” to the security holder as monthly payments of principal, interest and prepayments.

MUTUAL FUNDS: Open-end professionally managed investment fund that pools money from many investors to purchase securities.

NEGOTIABLE CERTIFICATES OF DEPOSIT: CDs with a minimum face value of $100,000 that can be traded in a highly-liquid secondary market.

NRSRO: Nationally Recognized Statistical Rating Organization, a credit rating agency approved by the U.S. Securities and Exchange Commission (SEC) to provide information that financial firms must rely on for regulatory purposes. The top firms including Moody’s Investor Services, Standard and Poor’s and Fitch Group.

PORTFOLIO: Collection of securities held by an investor.

PRUDENT PERSON RULE: The standard of care to be used under this policy, whereby investments shall be made with the exercise of that degree of judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation but for invest ment considering the probable safety of their capital as well as the probable income to be derived.

PRIMARY DEALER: A group of government securities dealers that submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) registered securities broker-dealers, banks, and a few unregulated firms.

RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.

REPURCHASE AGREEMENT (REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. 149
City of Fontana
Statement of Investment Policy
24 SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection.

SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.

SECURITIES AND EXCHANGE COMMISSION (SEC): Agency created by Congress to protect investors in securities transactions by administering securities legislation.

SUPRANATIONAL OBLIGATIONS: United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corpor ation, or Inter - American Development Bank, and eligible for purchase and sale within the United States.

TREASURY BILLS: A non -interest bearing discount security issued by the U.S.

Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.

TREASURY BOND: Long-term U.S. Treasury securities having initial maturities of more than ten years.

TREASURY NOTES: Intermediate term coupon bearing U.S. Treasury securities having initial maturities of from one to ten years.

YIELD: The rate of annual income return on an investment expressed as a percentage.

Income Yield is obtained by dividing the current dollar income by the current market price for the security. Yield to Maturity is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. 150
City of Fontana
Action Report
City Council Meeting
8437 Sierra Avenue
Fontana, CA 92335
File #: 26-1058 Agenda Date: 6/23/2026
Agenda #: I. Category: Consent Calendar
FROM:

Engineering
SUBJECT:

Acceptance of Final Map for Tract No. 18973
RECOMMENDATION:

1. Approve the Final Map for Tract No. 18973, located on the west side of Date Street and north of Randall Avenue.

2. Accept dedication of a public easement.

3. Authorize the City Manager to enter into a Subdivision Agreement with the subdivider.

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

DISCUSSION:

Tract No. 18973 is located on the west side of Date Street and north of Randall Avenue. The project consists of the development of 10 condominium units within a 0.88-acre site.

The Tentative Tract Map No. 18973 (TTM20-000003) was approved by the Planning Commission on October 19, 2021. All conditions precedent to submitting the tract map have been completed by the applicant. The subdivider, So Cal Beautiful, LLC, has complied with all the Conditions of Approval and has dedicated the required right-of-way and easements as part of the project. The tract map was timely filed prior to the entitlement expiration of October 19, 2025. The tract map has been reviewed by the City Engineer and is found to be substantially in conformance to the approved tentative tract map.

In addition, an authorization is requested for the City Manager to enter into a Subdivision Agreement with the subdivider to guarantee the completion of required infrastructure in accordance with the Subdivision Map Act. This map is now being brought to the City Council for final approval.

FISCAL IMPACT:

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

City of Fontana Printed on 6/18/2026Page 1 of 2
powered by Legistar™
151
File #: 26-1058 Agenda Date: 6/23/2026
Agenda #: I. Category: Consent Calendar
MOTION:

Approve staff recommendation.

City of Fontana Printed on 6/18/2026Page 2 of 2
powered by Legistar™
152

153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
City of Fontana
Action Report
City Council Meeting
8437 Sierra Avenue
Fontana, CA 92335
File #: 26-1064 Agenda Date: 6/23/2026
Agenda #: J. Category: Consent Calendar
FROM:

Engineering
SUBJECT:

Approve Task Order for Engineering Design Services with HR Green Pacific, Inc. for the SCE Undergrounding Acosta & Firebird Circuits Project (DE-24-195-SQ-14) RECOMMENDATION:

1. Approve and authorize the City Manager to enter into a Task Order in a not-to exceed amount of $607,710.00 with HR Green Pacific, Inc. for engineering design services for the SCE Undergrounding Acosta & Firebird Circuits Project (DE-24-195-SQ-14).

2. Approve and authorize the City Manager to enter into any future amendments to the Task Order in a not-to-exceed amount of $100,000.00.

3. Authorize the City Manager to enter into any and all utility agreements, utility easements, and any related items on behalf of the City of Fontana for the SCE Undergrounding Acosta & Firebird Circuits Project (DE-24-195-SQ-14).

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

DISCUSSION:

The SCE Undergrounding Acosta and Firebird Circuits Project consists of converting existing overhead lines to new underground facilities. This project will be implemented in compliance with Southern California Edison (SCE) Rule 20B requirements. The project’s infrastructure goal is to install SCE conduit and vaults within the ultimate right-of-way. This project will help eliminate potential service outages and provide wildfire mitigation resulting from weather conditions by undergrounding these facilities.

On April 1, 2026, Engineering staff solicited a Request for Proposal (RFP) for Engineering Design Services from four (4) pre-qualified firms through the Purchasing Office. Three (3) prospective bidders downloaded the RFP documents. On April 30, 2026, a proposal was received from one (1) firm interested in providing design services for the project. HR Green Pacific, Inc. was the sole proposal received for the project. The proposal was evaluated and ranked in accordance with City policies and procedures and HR Green demonstrated their relevant experience and project understanding.

City of Fontana Printed on 6/15/2026Page 1 of 2
powered by Legistar™
184
File #: 26-1064 Agenda Date: 6/23/2026
Agenda #: J. Category: Consent Calendar
Engineering staff recommends that the City Council approve a Task Order Agreement in the amount of $607,710.00 with HR Green Pacific, Inc. for the Engineering Design Services for the SCE Undergrounding Acosta & Firebird Circuits Project.

FISCAL IMPACT:

The fiscal impact associated with the approval of this item is $607,710.00 for the full term of the task order. Funds are included in the Fiscal Year 2025-26 budget in 37600033-610-A-8113. All future costs will be included in subsequent fiscal year budgets.

MOTION:

Approve staff recommendation.

City of Fontana Printed on 6/15/2026Page 2 of 2
powered by Legistar™
185
SCE UNDERGROUNDING ACOSTA & FIREBIRD CIRCUITS PROJECT0SCALE 1:125025001250 N

PROJECT LOCATIONSPROJECT LOCATIONS
186
1260 Corona Pointe Court | Suite 305
Corona, CA 92879
Main 855-900-4742
 H R G R E E N . C O M

Proposal for Design Services SCE Undergrounding Acosta and Firebird Circuits Project (DE-24-195-SQ-14)
Submitted by: HR Green Pacific, Inc.

Address: 1260 Corona Pointe Court, Suite 305, Corona, CA 92879 Phone Number: 855.900.4742
Contact Person: Chase Keys, PE, Project Manager (Group Leader) Contact Number: 951.970.6879
Contact Email: [email protected]
Introduction, Methodology, and Project Approach
HR Green Pacific, Inc. (HR Green) understands the City of Fontana is seeking a qualified civil engineering consultant to prepare plans, specifications, estimates, and related engineering services for the SCE Undergrounding Acosta and Firebird Circuits Project. The project will convert existing overhead electrical facilities to new underground facilities in accordance with SCE Rule 20B requirements. The City’s selected design consultant is responsible for developing the street design framework that will allow SCE to design its underground conduit, duct, and vault system within the project limits.

This project requires more than preparation of street improvement plans. It requires early confirmation of ultimate roadway conditions, right-of-way acquisition needs, utility conflicts, SCE requirements, utility coordination, outside agency approvals, and constructability considerations. The RFP identifies coordination with SCE, the Sierra Avenue at Riverside Avenue Traffic Signal Project, San Bernardino County, City of Rancho Cucamonga, City of Rialto, Caltrans, San Bernardino County Flood Control District, and school districts within the project limits. The City’s Q&A further clarified that portions of the project extend outside Fontana City limits, final plans may be subject to review and approval by outside jurisdictions, and ultimate roadway conditions will be discussed during the kick-off meeting.

The location maps reinforce the need for a coordination-focused approach. The Acosta Circuit is shown near Cherry Avenue, Frontage Road, SR-210, Beech Avenue, I-15, the Hawker Crawford Channel, and the Fontana/Rancho Cucamonga jurisdictional boundary. The Firebird Circuit is shown along Sierra Avenue near Segovia Lane, Terra Vista Drive, Riverside Avenue, I-15, the Falcon Ridge Substation area, and the Fontana/Rialto jurisdictional boundary.

HR Green’s methodology is organized around five priorities:
 Confirm the ultimate condition early. At the kick-off meeting, HR Green will confirm design limits, roadway sections, ultimate right-of-way, curb and gutter locations, sidewalk needs, streetlight assumptions, SCE coordination requirements, tie-in points, and jurisdiction-specific design criteria.

 Develop a usable composite utility plan within 60 calendar days. The RFP requires the complete Composite Utility Plan to be delivered within 60 calendar days of notice to proceed. HR Green will treat this plan as a live coordination tool, not simply a static deliverable.

 Design the street improvements to support SCE’s undergrounding design. HR Green will establish roadway geometry, right-of-way, curb elevations, and utility information needed for SCE to complete its undergrounding plans.

We will also anticipate plan adjustments after SCE provides its final plan set.

 Coordinate proactively with outside jurisdictions and overlapping projects. HR Green will coordinate early with Fontana, Rancho Cucamonga, Rialto, Caltrans, San Bernardino County Flood Control District, school districts, SCE, and communication utility providers. We will also coordinate with the Sierra Avenue at Riverside Avenue Traffic Signal Project to avoid conflicts and maintain consistency.

 Maintain schedule and review control. The RFP requires the first 60% plan check submittal within 90 calendar days of NTP and assumes three plan checks at 60%, 90%, and 100%. HR Green will manage this through a decision log, utility coordination log, action item tracker, QA/QC process, and plan check comment response matrix. 187


City of Fontana

5/27/2026

Work Plan, Scope of Work, and Deliverables
Task 1: Project Management and Coordination
HR Green will provide project management, contract administration, schedule control, subconsultant coordination, monthly progress reports, invoice support, and communication with the City’s Project Manager. We will conduct a kick-off meeting with the City and key stakeholders to confirm roles, responsibilities, deliverables, approval requirements, project limits, ultimate roadway assumptions, right-of-way needs, SCE coordination procedures, and outside jurisdiction approval requirements.

HR Green will prepare and maintain a project schedule, action item log, utility coordination log, agency coordination tracker, and comment response matrix. A Project Specific QA/QC Plan will be prepared and used before each submittal.

Deliverables: Project schedule, meeting agendas and minutes, action item log, utility coordination matrix, monthly progress reports, QA/QC plan, comment response matrix.

Task 2: Survey and Base Mapping
HR Green’s survey team will perform field and office survey required to prepare topographic mapping, a Survey Control Plan, street improvement plans, street lighting plans, right-of-way exhibits, and SCE coordination base files. Survey will include a 120-foot-wide topographic corridor at 1” = 40’ scale with 1-foot contours, additional survey at tie-in points, and street cross sections at 25-foot intervals extending to the ultimate right-of-way on each side, consistent with the RFP.

Survey will capture existing roadway features, curb and gutter, sidewalk, driveways, landscape areas, drainage features, visible utility appurtenances, poles, guy anchors, manholes, valve covers, meter locations, and other existing conditions necessary for design.

Deliverables: Topographic map in AutoCAD and PDF, Survey Control Plan, 25-foot interval cross section data, base files for design and SCE coordination.

Task 3: Composite Utility Plan, Utility Coordination, and Potholing HR Green will prepare a Composite Utility Plan showing existing utilities within the proposed right -of-way and utilities affected by the proposed street improvements. The plan will include above-ground and underground utilities, wet and dry utilities, overhead lines, power poles with pole numbers, guy poles, guy anchors, manholes, valve caps, utility laterals, private utility connections, and related appurtenances.

HR Green will lead utility coordination in partnership with the City Project Manager. This will include utility research, request and review of available records, coordination meetings, conflict identification, utility disposition recommendations, and communication with SCE and third-party utility owners. HR Green will provide the Composite Utility Plan within 60 calendar days of NTP. HR Green will also evaluate joint trench opportunities for communication utility facilities currently co-located on the existing SCE poles. Where joint trench is feasible, HR Green will coordinate with SCE and the identified communication utility companies within the project limits to facilitate combined installation, reduce surface disruption, and streamline overall project delivery.

HR Green will coordinate and observe potholing for utilities that may be affected by the proposed alignment or utility construction. The fee assumes 20 potholes, including associated pothole backfill and surface restoration at pothole locations. HR Green will incorporate pothole information into the Composite Utility Plan and provide engineering support during pothole operations to observe findings and direct adjustments as needed.

Deliverables: Composite Utility Plan within 60 calendar days of NTP, utility coordination log, pothole exhibit, pothole data summary, updated utility plan.

188


City of Fontana

5/27/2026

Task 4: Plans, Specifications, and Cost Estimates
HR Green will prepare Street Improvement Plans for the full project limits shown in Exhibit A and confirmed during the kick-off meeting. The plans will establish the street design framework needed for SCE to complete its underground conduit, duct, and vault design.

Street Improvement Plans will include plan and profile views, existing and proposed right -of-way, curb and gutter, sidewalk, driveways, streetlight locations as reference, utilities, drainage features, tie-ins, and roadway elevations needed to support SCE improvements. Plans will also identify curb elevations, join points, grade breaks, cross slopes, centerline elevations, right-of-way limits, and cross-section information at 25’ intervals, including Caltrans DIB 82-06 and Form CEM5773 elevation points where applicable. HR Green will review applicable specific plan requirements to confirm ultimate roadway and right-of-way conditions, including the City of Fontana's Westgate Specific Plan, which governs a portion of the project limits, as well as applicable specific plans for the City of Rancho Cucamonga and City of Rialto. HR Green will utilize the City's website and Public Records Portal to research specific plans and recor d drawings as needed.

HR Green will also prepare technical specifications using the City’s current boilerplate bid package and the latest Greenbook, with revisions highlighted for the first plan check. Itemized construction cost estimates will be submitted with the second plan check package and updated through final approval.

Deliverables: 60%, 90%, and 100% Street Improvement Plans; technical specifications; itemized cost estimates; final signed PDF and AutoCAD files per SCE requirements; comment response matrix.

Task 5: Right-of-Way Support
If right-of-way acquisition or easements are required, HR Green will prepare legal descriptions, deed plats, City of Fontana Easement Deed Forms, and a 1” = 40’ right-of-way map. The right-of-way map will show street and right-of-way dimensions, parcel numbers, existing and proposed right-of-way lines, and a parcel table identifying parcel number, assessor parcel number, total parcel area, area of take, and remaining area.

The City of Fontana right-of-way staff, in coordination with SCE, will lead property owner coordination and acquisition activities. HR Green’s role will be limited to technical mapping, legal descriptions, plats, and exhibits. The fee assumes 10 parcels will be affected.

Deliverables: Right-of-way map, legal descriptions, deed plats, easement deed forms, parcel take table.

Task 6: Environmental, NPDES, and WQMP Coordination
HR Green will coordinate with the City during the CEQA documentation process and provide engineering information needed to support environmental review. HR Green will also prepare or coordinate engineering-related NPDES and WQMP documentation as required before construction.

Deliverables: CEQA coordination support, exhibits and technical information for environmental documentation, NPDES/WQMP documentation as required.

Task 7: Advertisement, Construction Support, and Record Drawings Upon request by the City, HR Green will provide advertisement and construction support services, including responses to bidder questions, review of addenda, shop drawing and submittal review, RFI responses, design clarifications, and construction design changes. HR Green will also prepare record drawings based on as-built information provided by the construction contractor, consistent with the RFP requirement for record drawings. These efforts are limited to the hours assumed within our fee proposal.

Deliverables: Bid support responses, addendum support, submittal reviews, RFI responses, design change support, record drawings.

Proposed Personnel
The proposed team is structured to provide strong project management, utility coordination, roadway design, street lighting design, survey, right-of-way mapping, and QA/QC. The Project Manager will serve as the City’s primary point of contact and will be responsible for scope, schedule, budget, team coordination, and plan delivery. 189


City of Fontana

5/27/2026

HR Green is pre-qualified with the City of Fontana and will assign appropriately licensed and certified professionals, including California-registered professional engineers, a lighting-certified lead, QSP/CPESC environmental support, licensed survey/right-of-way mapping through Kelsoe & Associates, and qualified potholing support through Kana Subsurface Engineering.

Role Name Responsibility
Principal-in-
Charge
Min Zhou, PE Provides executive oversight, confirms resources are available, monitors contract performance, and supports key City coordination and issue resolution.

QA/QC Lead Adolfo
Gutierrez, PE
Leads independent quality control reviews, verifies consistency with City standards, reviews constructability, and confirms comments are addressed before each submittal.

Project
Manager
Chase Keys,
PE
Serves as the City’s primary point of contact and manages scope, schedule, budget, team coordination, subconsultants, progress reporting, and overall delivery.

Roadway
Design Lead
Art Casillas Leads preparation of street improvement plans, plan and profile design, cross sections, curb and gutter layout, grading, tie-ins, and roadway design coordination.

Utility
Coordination
Lead
John
DuMontelle
Leads utility research, utility owner coordination, composite utility plan preparation, SCE coordination, conflict identification, and potholing coordination.

Environmental
/ NPDES Lead
Bob Makowski,

QSP, CPESC
Supports CEQA coordination and prepares or coordinates NPDES and WQMP documentation required before construction.

Survey and
ROW Mapping
Kelsoe &
Associates
Provides topographic survey, survey control, base mapping, right-of-way mapping, legal descriptions, plats, and easement exhibits as needed.

Potholing Kana
Subsurface
Engineering
Provides utility potholing, field verification of underground utilities, pothole data documentation, and restoration in coordination with the design team.

Qualifications and Comparable Municipal References
West Foothill Boulevard Street Improvements, City of Rancho Cucamonga Reference: Romeo David, Associate Engineer, [email protected], 909.774.4070 Brief Description: HR Green provided civil design services for West Foothill Boulevard, a high-volume arterial corridor in San Bernardino County. The project included roadway reconfiguration within existing right-of-way, separated pedestrian and bicycle facilities, traffic signal modifications, a new traffic signal, street lighting, pavement reconstruction, landscaping, and storm drain improvements. This project is especially relevant to Fontana because it involved integrating roadway, lighting, drainage, traffic signal, and streetscape improvements within a major corridor while maintaining mobility and coordinating design elements in a built environment.

Holt Avenue Street Improvements, City of Pomona
Reference: Matt Pilarz, PE, Principal Civil Engineer, [email protected], 909.620.3652 Brief Description: HR Green provided corridor improvement services for Holt Avenue, a major arterial extending more than 10 miles through multiple jurisdictions and serving businesses, schools, parks, transit users, pedestrians, and motorists. The project included traffic analysis, conceptual alternatives, public-facing corridor improvements, lighting, pedestrian infrastructure, ADA accessibility improvements, and development of a preferred design that helped the City secure $5 million in grant funding. This experience is directly relevant to Fontana because it demonstrates HR 190


City of Fontana

5/27/2026

Green’s ability to advance complex arterial improvements with utility, access, safety, multimodal, and agency coordination considerations in a constrained urban corridor.

Van Buren Boulevard Widening, City of Jurupa Valley
Reference: Steve Loriso, Dep. Dir. of Public Works/Asst. City Engineer, [email protected], 951.332.6464 Brief Description: HR Green led design for the widening of Van Buren Boulevard between the Santa Ana River and Limonite Avenue, converting an existing four-lane arterial to a six-lane expressway while maintaining the raised center median. The project included new curb and gutter, grading for a future multi-purpose trail, retaining walls, sound walls, storm drain improvements, culvert modifications, and signal modifications to accommodate the widened roadway. This experience is directly relevant to Fontana because it required plan and profile roadway design, right-of-way- sensitive improvements, utility and drainage coordination, cross-section development, and constructability solutions along a constrained arterial corridor.

Project Schedule
HR Green will meet the RFP requirement to submit the first 60% plan check package within 90 calendar days of notice to proceed. The schedule below assumes NTP in May 2026 and three City plan checks at 60%, 90%, and 100%, with approximately three weeks for each City review.

Milestone Target Schedule
Notice to Proceed Day 0
Kick-off Meeting / Data Request Days 1 to 7
Survey, Records Research, Utility Research, and Agency Coordination Days 1 to 45 Base Mapping, Cross Sections, Preliminary Utility Mapping Days 25 to 60 Composite Utility Plan Submittal Day 60
Potholing Coordination and Preliminary Roadway / Lighting Design Days 45 to 90 60% Plan Check Submittal Day 90
City / SCE / Outside Agency Review Days 90 to 111
90% Design, Specifications, Estimate, and Comment Responses Days 112 to 165 90% Plan Check Submittal Day 165
City / SCE / Outside Agency Review Days 165 to 186
Final Design, Specifications, Estimate, and Comment Responses Days 187 to 235 100% Plan Check Submittal Day 235
Final Review, Approval Package, and Final PS&E Days 235 to 275 Final Signed PS&E Submittal Day 275
Bid Support, Construction Support, and Record Drawings As directed by City Schedule risks include outside jurisdiction review duration, SCE plan development timing, confirmation of ultimate roadway conditions, right-of-way needs, utility potholing results, and coordination with the Sierra Avenue at Riverside Avenue Traffic Signal Project. HR Green will mitigate these risks by initiating utility and agency coordination immediately after NTP, maintaining a coordination log, and resolving key geometric and right-of-way decisions before the 60% submittal.

Authorization and Insurance Statement
HR Green has reviewed the City of Fontana RFP, including the indemnification and insurance requirements contained in the Consultant Services Agreement. HR Green will meet the City’s indemnification and insurance requirements upon selection and prior to contract execution. This proposal is valid for ninety (90) days from the proposal due date. The undersigned is authorized to bind HR Green Pacific, Inc.

Authorized Signature: _______________________________
Name: Min Zhou, PE, CA Regional Director
Date: 5/27/2026
191


City of Fontana
Cost Proposal
5/27/2026

Professional Fee
A detailed breakdown of hours, hourly rates, and associated fees by task is provided in the below fee proposal. HR Green’s proposed fee is based on the scope of work identified in the RFP, City Q&A responses, and the assumptions included with the fee proposal.
192


City of Fontana
Cost Proposal
5/27/2026

Assumptions and Exclusions

1. The 60% plan check submittal will be submitted within 90 calendar days of NTP, provided timely receipt of City base information, record drawings, specific plan information, available SCE information, and survey access.

2. The Composite Utility Plan will be delivered within 60 calendar days of NTP.

3. The fee assumes 20 potholes. Additional potholes, if requested by the City or required due to unknown utility conflicts, will be considered additional services.

4. Separate street lighting plans will be not be prepared. Street improvements plans will reference existing streetlights placed on SCE poles on new standard street lights. No separate design will be prepared as it is assumed SCE will provide separate lighting plans. Photometric analysis is excluded based on the City’s Q&A response.

5. Final plans are assumed to require coordination with outside jurisdictions. Review durations beyond the assumed three-week review period may affect the project schedule.

6. The City will provide available plans for the Sierra Avenue at Riverside Avenue Traffic Signal Project for coordination.

7. Preparation of traffic signal plans or traffic signal modifications is not included in our scope or fee; however, HR Green will coordinate with the City-provided Sierra Avenue at Riverside Avenue Traffic Signal Project plans to identify potential conflicts with the SCE undergrounding improvements.

8. SCE will prepare its final undergrounding plans after the City’s street design is sufficiently developed. HR Green’s fee includes coordination and reasonable plan adjustments after receipt of SCE’s plan set.

9. The City of Fontana right-of-way staff and SCE will lead property owner coordination and acquisition. HR Green’s scope includes technical mapping, plats, legal descriptions, and exhibits only.

10. CEQA documentation is assumed to be prepared by others unless specifically included in the final negotiated scope.

HR Green’s scope includes engineering support and coordination for CEQA, NPDES, and WQMP documentation.

11. Bidding and construction support, including record drawing preparation, is limited to the hours included in the fee proposal. Additional support beyond the budgeted hours will be provided as an additional service upon City authorization.

12. Preparation of traffic studies or reports are not included in our scope or fee.

13. Payment of any outside agency or permit fees will be paid by the City and are not included in our fee.

14. H&H modeling and analysis are not included in our scope or fee.

15. Design of new or modified storm drain improvements is not included in our scope or fee. Existing drainage facilities will be shown where identified by survey or available record information.

16. Preparation of traffic control plans are not included in our scope or fee. Specification will be prepared so the contractor must prepare and submit plans for approval prior to the start of construction.

17. Structural design, including but not limited to bridge design, retaining structures, and culvert modifications or extensions, is not included in our scope or fee. Where the project alignment crosses under the I -15 bridge structure or over existing drainage culverts, HR Green's design will reference existing structural conditions as shown in available record drawings. Any structural modifications required to accommodate the undergrounding improvements will be considered additional services.

18. Preparation of a Caltrans encroachment permit application is not included in our scope or fee. If improvements within Caltrans right-of-way require a formal encroachment permit, preparation and processing of that permit will be considered additional services.

19. Preparation of a San Bernardino County Flood Control District encroachment permit application is not included in our scope or fee. If improvements within or adjacent to the Hawker Crawford Channel require a flood control encroachment permit, preparation and processing of that permit will be considered additional services.

20. Assessment, remediation, or design accommodations related to hazardous materials or contaminated soils are not included in our scope or fee. If hazardous materials are encountered during potholing or construction, the City will be notified immediately and any required response will be considered additional services.

21. Geotechnical investigation, soils reports, or pavement structural section design are not included in our scope or fee.

Pavement design, if required, will be based on City standard sections or information provided by the City.

22. Specifications will be limited to technical provisions for the undergrounding work only based on City boilerplate.

Complete street improvement specifications are not part of this scope of work.

23. The fee assumes three plan check submittals at 60%, 90%, and 100% completeness. Additional plan check cycles beyond three, whether required by the City, outside jurisdictions, or SCE, will be considered additional services. 193
City of Fontana
Action Report
City Council Meeting
8437 Sierra Avenue
Fontana, CA 92335
File #: 26-1066 Agenda Date: 6/23/2026
Agenda #: K. Category: Consent Calendar
FROM:

Development Services
SUBJECT:

A Resolution of the City Council of the City of Fontana Approving a Development Impact Fee Deferral Agreement Between the City of Fontana and SA Golden Investments Inc. for a Multi-Family Residential Apartment Complex Project and Authorizing the City Manager to Enter into the Agreement and Take Certain Actions to Complete the Transaction.

RECOMMENDATION:

Adopt Resolution No. 2026-056, approving a Development Impact Fee Deferral Agreement between the City of Fontana and SA Golden Investments Inc. for a multi-family residential apartment complex project, and authorizing the City Manager to enter into the agreement and take certain actions to complete the transaction.

COUNCIL GOALS:
· To promote affordable housing by construction of high-quality multi-family housing which also serves to address the affordability needs of this community. · To promote affordable housing by acquisition, substantial rehabilitation, and professional management of selected multi-family properties as a vehicle to reduce crime and code enforcement activity and to address the affordability needs of this community. · To preserve the local environment for generations to come and to create a healthy economic and environmental future by adopting policies that promote compact and efficient development in new and existing communities.
· To assure that the Project is financially feasible, and that the Owner is able to deliver the needed affordable housing and supportive services.

DISCUSSION:

SA Golden Investments Inc. (“Owner”)owns a multi-family residential development located at 8423 Tamarind Avenue, Fontana, California 92335 (“Property”).The Property consists of a three-story apartment complex with two buildings totaling nine (9) units and associated amenities on approximately 36,400 square feet of land. The Owner has requested a deferral of development impact fees, and the City is willing to defer payment of such fees pursuant to the terms and conditions of a Development Impact Fee Deferral Agreement (“DIF Deferral Agreement”). The deferral applies only to development impact fees imposed by the City and does not apply to other City fees or to fees imposed by the County, school districts, or any other public agency. The key terms of the DIF Deferral Agreement are as follows:

1. The deferral applies only to development impact fees levied by the City and does not apply to City of Fontana Printed on 6/18/2026Page 1 of 2
powered by Legistar™
194
File #: 26-1066 Agenda Date: 6/23/2026
Agenda #: K. Category: Consent Calendar

1. The deferral applies only to development impact fees levied by the City and does not apply to any other City fees or to fees levied by the County, school districts, or any other public entity.

2. Deferred fees shall accrue simple interest at a rate of ten percent (10%) per year if not paid by the maturity date.

3. The Owner shall pay the principal amount of the deferred fees: (a) within thirty (30) days following issuance of the final Certificate of Occupancy (“COO”)for Building Nos. 1 and 2 (Permit Nos. BLD-25-00801 and BLD-25-00802), or (b) upon the close of escrow if the Property or Project is sold, whichever occurs first. In no event shall payment be made later than September 21, 2026.

4. The Owner shall execute the DIF Deferral Agreement with the City, which establishes the terms and conditions governing the deferral.

5. The City shall record the Agreement against the Property upon full execution and shall release the lien upon full payment of all deferred fees, including any applicable interest, charges, and fees.

FISCAL IMPACT:

Deferral of the impact fees will delay receipt of such revenues by the City until up to ninety (90) days after issuance of the final Certificate of Occupancy, or until the close of escrow if the Property or Project is sold, but no later than September 21, 2026.

MOTION:

Approve staff’s recommendation.

City of Fontana Printed on 6/18/2026Page 2 of 2
powered by Legistar™
195
1 of 3

RESOLUTION NO. 2026-056

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

CALIFORNIA, APPROVING A DEVELOPMENT IMPACT FEE

DEFERRAL AGREEMENT BETWEEN THE CITY OF FONTANA AND SA

GOLDEN INVESTMENTS , LLC FOR A MULTI-FAMILY RESIDENTIAL

HOUSING APARTMENT COMPLEX PROJECT AND AUTHORIZING THE

CITY MANAGER TO ENTER INTO AN AGREEMENT AND TAKE
CERTAIN ACTIONS TO COMPLETE THE TRANSACTION.

WHEREAS, pursuant to California Government Code Section 66000 et seq. (the “Mitigation Fee Act”), the City of Fontana (“City”) has exercised its authority to establish and impose development impact fees upon new development within the City of Fontana; and
WHEREAS, SA GOLDEN INVESTMENTS, LLC (“Owner”) is the owner of that certain real property located at 8423 Tamarind Avenue., Fontana, CA 92335, in San Bernardino County, California, identified with Assessor’s Parcel Number 0192-133-41- 0000, on approximately 0.84 acres of la nd ("Property"); an d

WHEREAS, the Owner is constructing a multi -family residential housing development project on the Property consisting of two residential buildings with a total of nine (9) residential units (“Project”); and

WHEREAS, in order to assure that the Project is financially feasible and that the Owner is able to deliver the needed affordable housing and supportive services, the Owner has requested that the City’s development impact fees imposed in connection with the Project be deferred; and

WHEREAS, the City is willing to defer the payment of City development impact fees pursuant to cert ain terms as set forth in this R esolution, in furtherance of the substantial public benefits that will be provided by the Project.

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

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

Section 2. Based on the information provided in the staff report, the City Council authorizes the deferral of payment of the development impact fees levied against the Project on the following terms:
196
Resolution No. 2026-056

2 of 3

A. This deferral shall only apply to development impact fees le vied by the City. It shall not apply to any other fees levied by the City, nor shall it apply to fees levied by the County, School District, or any other public entity.

B. If not paid by the Maturity Date, t he fees deferred by the City shall accrue interest at a rate of 10% simple interest annually.

C. Owner shall pay the principal sum of the Deferred Fees 1) within ninety (90) days of the date of issuance of the final occupancy clearance (the “Certificate of Occupancy” or “COO”) for Building Nos. 1 and 2, Permit Nos BLD-25-00801 and BLD-25-00802 or 2) the close of escrow date if the Property or the Project is sold, whichever is earlier, but in no event shall the Deferred Fees for the Project be paid later than September 21, 2026.

D. Owner shall enter into a Development Impact Fee Deferral Agreement with the City to provide the terms and conditions for the deferral of the development impact fees.

E. City shall record the Development Impact Fee Deferral Agreement against the Property upon full execution by the City and Owner and will file a release of lien when the Deferred Fees plus any interest, charges and fees have been fully paid and satisfied.

Section 3 . The City Council further authorizes the City Manager to execute a Development Impact Fee Deferral Agreement on behalf of the City in a form as approved by the City Attorney with the terms as set forth in this Resolution, and to execute any other documents and carry out such actions as are necessary or appropriate to carry out the City Council’s direction as set forth herein.

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

Section 5. This Resolution shall become effective immediately upon its adoption.

Section 6. The City Clerk shall certify adoption of this Resolution.

197
Resolution No. 2026-056

3 of 3

APPROVED AND ADOPTED this 23rd day of June 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 regularly adopted by the City Council at a regular meeting on the 23rd day of June, 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
198
16498.00100\43218845.1

When Recorded Mail to:

The City of Fontana
City Clerk’s Office
8353 Sierra Avenue
Fontana, CA 92335

EXEMPT FROM FILING FEES GOVERNMENT CODE § 6103 (Space above for Recorder's Use)

DEVELOPMENT IMPACT FEE DEFERRAL AGREEMENT

between

THE CITY OF FONTANA
a California municipal corporation

and

SA Golden Investments Inc.
a California limited liability company

[Dated as of ________ ___, 2026, for reference purposes only] 199
16498.00100\43218845.1

-1-

DEVELOPMENT IMPACT FEE DEFERRAL AGREEMENT
This Development Impact Fee Deferral Agreement (“Agreement”) is entered into between the CITY OF FONTANA, a California municipal corporation (“City”), and SA Golden Investments Inc., a California limited liability company (“Owner”). City and Owner are sometimes individually referred to herein as a “Party” and collectively as the “Parties.” This Agreement shall become effective on the date (the “Effective Date”) it is fully executed by the Parties.

RECITALS

1. Owner is the fee simple owner of that certain real property located at 8423 Tamarind Avenue, Fontana, California 92335, in San Bernardino County, California, identified as Assessor’s Parcel Number 0192 -133-41-0000 (“Property”). The Property is more particularly described in Exhibit A, attached hereto and incorporated herein by this reference, and consists of approximately 36,400 square feet.

2. Owner, or Owner’s designee, desires to develop a multi -family residential project on the Property consisting of two (2) buildings with a total of nine (9) residential units (“Project”).

3. Owner has applied to the City for the permits and entitlements necessary to construct the Project.

4. In connection with approval of such permits and entitlements, the City has imposed certain development impact fees and charges (individually, an “Impact Fee,” and collectively, the “Impact Fees”) pursuant to the City’s Municipal Code and adopted resolutions.

5. Owner has requested that the City defer the collection of certain Impact Fees imposed in connection with the Project in order to make the Project financially viable. The City has determined that the Project will benefit the community and enhance the City’s economic vitality. The Impact Fees eligible for deferment are limited to those imposed directly by the City and do not include fees imposed by the County, school districts, or any other public agency.

As of the Effective Date, the aggregate amount of the Impact Fees is Three Hundred Twenty-Five Thousand Nine Dollars ($325,009.00), which shall be referred to as the “Deferred Fees."

AGREEMENT
NOW THEREFORE, IN CONSIDERATION of the above Recitals, incorporated herein by this reference, the mutual agreements and covenants set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

Section 1. Deferred Fees
The City agrees, subject to the terms and conditions of this Agreement, to defer payment of the Deferred Fees as set forth herein. For purposes of this Agreement, “development impact fee” shall have the meaning set forth in Chapter 21, Article V, Section 21 -120 of the Fontana Municipal Code.

1.1 Owner’s Obligation. Owner, or its successor in interest to the Property, or any portion thereof, shall be liable for the payment of the applicable development impact fees that are temporarily deferred pursuant to this Agreement. Owner will be responsible to pay the current 200
16498.00100\43218845.1

-2-

development impact fee rate that is in effect at the time of actual payment. Owner shall satisfy its payment obligations under this Agreement by the following means and upo n the earlier of the corresponding dates:
i. Pay the principal sum of the Deferred Fees within ninety (90) days after the date of issuance of the final occupancy clearance (the “Certificate of Occupancy” or “COO”) for Building, Permit Nos. BLD-25-00801, and BLD-25-00802, for the Project; or
ii. Pay the principal sum of the Deferred Fees on or before the close of escrow date if the Property or the Project is sold, but in no event shall the Deferred Fees for the Project be paid later than September 21, 202 6 (“Maturity Date”).

The Deferred Fees may be prepaid without penalty at any time prior to the Maturity Date.

1.2 Late Charges and Interest. As consideration of the City for the City granting the deferment of the Deferred Fees, the Owner shall be obligated to pay the late charges, fees and interest on any outstanding fees due. If the Deferred Fees are not paid by the Maturity Date, Owner acknowledges and agrees to pay to City:
i. a penalty of ten percent (10%) of the outstanding principal; and ii. simple interest at a rate of ten percent (10%) per year, accruing monthly until paid following the Maturity Date.

1.3 Notwithstanding the above provisions , all unpaid principal and any accrued interest, charges and fees, shall be due upon the occurrence of any of the following events:
i. a sale or transfer of the Project or the Property; or ii. the occurrence of an Event of Default under this Agreement.

Section 2. Conditions to Deferment.

The City shall defer the payment of the Impact Fees upon satisfaction of the following conditions:
i. the Owner’s execution and delivery to the City of this Agreement; and ii. the Owner’s delivery of a proforma or other financial information that upon completion, the Project will have adequate value to provide payment of the Deferred Fees.

Section 3. Security.

Owner acknowledges City is under no obligation to grant a deferment of the Impact Fees due and payable upon the Project. In-lieu of the City requiring Owner to obtain a letter of credit as security for this Agreement the Parties agree that a recorded lien related to the Project shall serve as security for this Agreement. Owner hereby acknowledges and agrees that the obligation to pay the deferred development impact fees shall continue and remain an obligation of Owner, as well as (jointly and severally) any successors in interest of Owner, including, without limitation, any successor in interest to the Property or any portion of the Property. Without limiting the nature of the foregoing, any deferred development impact fees that remain unpaid following the time that they are required to be pa id may be collected by the City , as a lien against the applicable portion of the Property, as a special assessment against the applicable portion of the property (collected at 201
16498.00100\43218845.1

-3-

the same time and in the same manner as ad valorem property taxes), or by any combination of the foregoing. Additionally, should Owner fail to pay the Deferred Fees pursuant to this Agreement, the City shall reserve the right to revoke all prior COOs issued for the Project until such time as the Deferred Fees are paid in full.

Section 4. Rights Not Granted Under Agreement.

This Agreement is not, and shall not be construed to be, an approval or an agreement to issue permits or a granting of any right or entitlement by City concerning the construction of the Project, or any other project, development or other construc tion by Owner within the City. This Agreement does not, and shall not be construed to, exempt Owner from paying any fees for any permits, licenses or other approvals which may be required by the City, and (other than the Deferred Fees) at the time required by the City, concerning the construction of the Project, or any other project, development or other construction by Owner within the City. This Agreement does not, and s hall not be construed to, exempt Owner in any way from the requirement to obtain permits and/or other discretionary or non -discretionary approvals as may be necessary for the development, maintenance or operation of the Project, or any other project, development or other construction by Owner within the Cit y. This Agreement does not, and shall not be construed to, exempt Owner or the Property from the application and/or exercise of City power of eminent domain, or its police powers including, but not limit ed to, the regulation of land uses, and the taking of any actions necessary to protect the health, safety and welfare of its citizenry.

Section 5. Default.

1.1. Event of Default . Each of the following events shall constitute an "Event of Default":
i. Owner fails to pay when due any principal payment or oth er sum due under this Agreement.
ii. Owner defaults in the performance of any other term, covenant, or agreem ent contained in this Agreement; or
iii. Pursuant to or within the meaning of the United States Ban kruptcy Code or any other federal or state law relating to insolvency or relief of debtors (a “Bankruptcy Law”): (A) Owner (i) commences a voluntary case or proceeding, (ii) consents to the entry of an order for relief against it in an involuntary case, (i ii) applies for or consents to the appointment of a trustee, receiver, assignee, liquidator or similar official, (iv) makes an assignment for the benefit of its creditors, or (v) admits in writing its inability to pay its debts as they become due; or (B) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that (i) is for relief against Owner in an involuntary case, (ii) appoints a trustee, receiver, assignee, liquidator or similar official for Owner or substantially all of Owner’s assets, (iii) orders the liquidation of Owner, or (iv) issues or levies a judgment, writ, warrant of attachment or similar process against the Property or any other property of Owner, and in each case the order or decree is not released, vacated, dismissed or fully bonded within sixty (60) days after its issuance.

1.2. Rights Upon Event of Default. In addition to all other available legal or equitable remedies, upon an Event of Default, the City shall have the right to do any one or more of the following:
202
16498.00100\43218845.1

-4-

i. Revoke the COO for the Project, including revocation of previously issued COOs for other structures related to the Project; or
ii. Accelerate the Maturity Date to the date of the Event of Default.

Section 6. Cumulative Remedies.

The rights or remedies of City, as provided in this Agreement, or pursuant to any applicable laws, rules or regulations, may be pursued singly, successively, together or other wise against the Owner, at the sole discretion of City. The City's failure to exercise any such right or remedy shall in no event be construed as a waiver or release of such rights or remedies, or of the right to exercise them at any later time.

Section 7. Indemnification.

Owner agrees to indemnify, defend and hold harmless City , its elected and appointed officials, officers, employees, contractors and agents from and against all claims, demands, causes of action, costs, damages, liabilities and obligations of any kind or nature arising out of the deferral of Impact Fees provided to O wner, the Deferred Fees , this Agreement, including, without limitation, all costs of collection, including actual attorneys’ and expert witness fees.

Section 8. Prevailing Wages.

Developer is aware of the requirements of California Labor Code Sections 1720 et seq, as well as California Code of Regulations, Title 8, Section 16000 et seq (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” projects. It shall be Deve loper’s sole obligation to determine whether, and to what extent, if any, the Prevailing Wage Laws apply to the Project. Owner shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any clai ms, liabilities, costs, penalties or interest arising out of any actual or alleged failure by Developer or its employees, agents and contractors to comply with the Prevailing Wage Laws, if applicable to the Project.

Section 9. No Set-Off Rights.

Owner understands and agrees that it shall not have any rights whatsoever to set-off against amounts due hereunder or otherwise due to the City for any amount or obligation due to Owner or claimed to be due Owner from City.

Section 10. Successors and Assigns.

Owner may not assign this Agreement, in whole or in part, without the prior written consent of City, and any attempt to make such assignment shall be null and void. This Agreement shall be binding on any and all successors and permitted assigns of the Parties.

Section 11. Governing Laws and Venue.

This Agreement shall be governed by the laws of the State of California, without regard to the conflict of laws principles. The Superior Court of the State of California in the County of San Bernardino, California, shall have exclusive jurisdiction of any litigation between City and Owner arising out of this Agreement. The Owner hereby expressly waives the provisions of any federal or state law providing for a change of venue to any other state court or to federal district court, due to any reason whatsoever, including, without implied limitation, the fact that the City (a public agency) is a Party to this Agreement, due to any diversity of citizenship between the City and the Owner, or due to the fact that a federal question may be involved. Without limiting the generality 203
16498.00100\43218845.1

-5-

of the foregoing, the Owner expressly waives, to the maximum legal extent, the benefit of California Code of Civil Procedure Section 394 and all other state and federal statutes and judicial decisions of similar effect.

Section 12. Notices.

All notices required to be delivered under this Agreement, or applicable law shall be delivered by personal delivery, express mail or by United States mail, certified, postage prepaid.

Notices personally delivered or delivered by express mail shall be deemed received upon receipt.

Notices delivered by certified mail shall be deemed received the earlier of three (3) days following deposit of such notice with the United States Postal Service or actual receipt. Notices shall be sent as follows:

To City: City of Fontana
8353 Sierra Avenue
Fontana, CA 92335
Attn: Phillip Burum, Deputy City Manager
To Owner: SA GOLDEN INVESTMENTS INC
918 S Teakwood Ave
Bloomington, CA 92316
Attn: Saber Awad, Manager
Section 13. Attorneys' Fees and Costs.

Should either party bring any action or proceeding against the other that in any way relates to or arises due to the existence of this Agreement, then the prevailing party in that action or proceeding shall be entitled to recover from the other party, in addition to all other relief to which the prevailing party may be entitled, the litigation costs and attorneys' fees, in an amount to be determined by the court. The "prevailing party" shall be determined by the court in accordance with the provisions of California Code of Civil Procedure Section 1032. Recoverable litigation costs and attorneys' fees include those incurred by the prevailing party in the enforcement of any judgment or other judicial order, and during the defense of any appeal taken from such underlying judgment or other judicial order.

Section 14. Entire Agreement.

This Agreement constitutes the entire agreement of City and Owner and supersedes all previous agreements, oral or written, on the subject matter of this Agreement.

Section 15. Modification.

This Agreement shall be amended or modified only by an Agreement in writing signed by each of the Parties.

Section 16. Headings.

Section headings contained in this Agreement are for convenience only and shall not impact the construction or interpretation of any provision.

Section 17. Further Acts.
204
16498.00100\43218845.1

-6-

The Parties agree to execute such additional documents and to take such further actions as are reasonably necessary to accomplish the objectives and intent of this Agreement.

Section 18. Severability.

If any provision or clause of this Agreement or any application of it to any person, firm, organization, partnership or corporation is held invalid, such invalidity shall not affect any other provision of this Agreement, and the Agreement shall be construed as if such provisions or clauses did not exist.

Section 19. Good Faith Negotiations.

The City and the Owner acknowledged that this Agreement are the product of mutual, good faith arms-length negotiations in that the City and the Owner each have been, or have had the opportunity to have been, represented by legal counsel of its own choosing in the negotiation and drafting of this Agreement. Accordingly, the rule of construction which provides that ambiguities in a document are to be construed against the drafter of that document shall have no application to either the interpretation or the enforcement of this Agreement. In any action or proceeding brought to interpret or enforce this Agreement, the trier of fact may refer to such extrinsic evidence which is not in direct conflict with any express term or provision hereof to ascertain and give effect to the intent of the Parties hereto.

Section 20. Time is of the essence.

Time is of the essence in this Agreement.

Section 21. No Third-Party Beneficiary.

This Agreement and the performance of the City's and the Owne r's obligations hereunder are for the sole and exclusive benefit of the city and the Owner. No person or entity who or which is not a signatory to this Agreement shall be deemed to be benefited or intended to be benefited by any provision hereof, and no s uch person or entity shall acquire any rights or causes of action against either the City or the Owner hereunder as a result of the City's or the Owner's performance or nonperformance of their respective obligations under this Agreement. [Signatures on following pages]
205
16498.00100\43218845.1

-7-

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date last written below.

CITY OF FONTANA SA Golden Investments Inc.
a California municipal corporation a California limited liability company

By: ____________________________ By: ______________________________ Acquanetta Warren, Mayor
Its: ______________________________
Date: ______________________________ Date: ______________________________

ATTEST:

___________________________
Germaine Key, City Clerk
Date: ______________________________

APPROVED AS TO FORM:

Best, Best & Krieger, LLP

By: __________________________
Ruben Duran, City Attorney
Date: ______________________________

206
16498.00100\43218845.1

-8-

EXHIBIT "A"

Legal Description of Property -8423 Tamarind Avenue, Fontana, California 92335.

Assessor’s Parcel Number 0192-133-41-0000
207
City of Fontana
Action Report
City Council Meeting
8437 Sierra Avenue
Fontana, CA 92335
File #: 26-1073 Agenda Date: 6/23/2026
Agenda #: L. Category: Consent Calendar
FROM:

Engineering
SUBJECT:

Approve a Purchase and Sale Agreement between the City of Fontana and VRP, Inc., a California Corporation, for the real property along Oleander Avenue RECOMMENDATION:

1. Approve a Purchase and Sale Agreement between the City of Fontana and VRP, Inc., a California Corporation, for the sale of a small portion of real property along Oleander Avenue.

2. Authorize the City Manager to enter into a Purchase and Sale Agreement with VRP, Inc., a California Corporation.

COUNCIL GOALS:
· To promote economic development by pursuing business attraction, retention, and expansion. · To promote economic development by being business friendly at all levels and striving to constantly improve the city's competitiveness.

DISCUSSION:

The City of Fontana (“City”) owns a small portion of real property approximately 3,065 square feet along the west side of Oleander Avenue, more particularly described and depicted in Exhibit A. The State of California relinquished the real property to the City per Exhibit A. The City no longer needs the real property of land for street or highway purposes, and it has already been declared exempt surplus per approved Resolution No. 2024-001. The buyer previously made an unsolicited offer to purchase the real property for $7,500.00 based on an Appraisal attached to this report.

The City has negotiated a Puchase and Sales Agreement (“PSA”)with VRP, Inc., a California corporation (“Buyer”),regarding the purchase of the real property along the west side of Oleander Avenue. The City desires to sell the property to Buyer under the terms set forth in the PSA.

Staff has reviewed the terms and conditions of the PSA and determined that the agreement is fair, reasonable, and in the best interest of the City and the public. Staff recommends approval of the PSA to allow the sale of the real property to proceed in accordance with the negotiated terms.

Per Resolution No. 2024-001, staff has determined that the designation of this property as exempt surplus does not have the potential for creating a significant effect on the environment and is therefore exempt from further review under CEQA pursuant to State CEQA Guidelines Section 15060 (c)(3), because it is not a project as defined by the CEQA Guidelines, Section 15378. Adoption of the City of Fontana Printed on 6/18/2026Page 1 of 2
powered by Legistar™
208
File #: 26-1073 Agenda Date: 6/23/2026
Agenda #: L. Category: Consent Calendar
(c)(3), because it is not a project as defined by the CEQA Guidelines, Section 15378. Adoption of the Resolution does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.

FISCAL IMPACT:

The sale of the real property will generate $7,500.00 in revenue to the City of Fontana.

MOTION:

Approve staff recommendation.

City of Fontana Printed on 6/18/2026Page 2 of 2
powered by Legistar™
209
.\44662266.1

PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS

THIS PURCHASE AND SALE AGREEMENT AND JOINT ESCROW
INSTRUCTIONS (this “Agreement”) is made and entered into as of ______________, 20___ for reference purposes only, by and between The City of Fontana, a California Municipal Corporation (“Seller”), and VRP, Inc., a California corporation (“Buyer”). The date upon which both Buyer and Seller have executed this Agreement and delivered the same to one another, shall hereinafter be referred to as the “Effective Date”.

IN CONSIDERATION of the respective agreements hereinafter set forth, Seller and Buyer hereby agree as follows:

1. Purchase and Sale of Property. Seller hereby agrees to sell “AS-IS” and convey to Buyer, and Buyer hereby agrees to purchase from Seller, subject to the terms and conditions set forth herein, the following (collectively, the “Property”):
(a) That certain real property located at the intersection of the vacated Highland Avenue and Oleander Avenue , in the City of Fontana, County of San Bernardino , State of California all as more fully described in Exhibit A (the “Land”), together with all rights, privileges, easements or appurtenances to or affecting the Land (collectively, the “Appurtenances”).
(b) Tangible Personal Property. All of Seller's right, title and interest, without warranty, in the equipment, machinery, furniture, fixtures, furnishings, supplies and other tangible personal property, all of which is inventoried on Exhibit C (the “Personal Property”), owned by Seller and now or hereafter located in and used in connection with the operation, ownership or management of the Property, specifically excluding any items of personal property owned by third parties and leased to Seller (collectively, the “Tangible Personal Property”). (c) Intangible Personal Property. All of Seller's right, title and interest, if any, without warranty, in all intangible personal property related to the Real Property and the Improvements, including, without limitation, all to the extent assignable: the plans and specifications and ot her architectural and engineering drawings for the improvements, if any; warranties, if any; contract rights related to the construction, operation or management of the Property, if any (collectively, the “Service Contracts”) (but Seller's right, title and interest therein shall only be assigned to the extent Seller's obligations thereunder are expressly assumed by Buyer pursuant to this Agreement); and governmental permits, approvals and licenses, if any (collectively, the “Intangible Personal Property”).

2. Purchase Price.
(a) The purchase price for the Property ( “Purchase Price ”) shall be Seven Thousand, five hundred Dollars ($7,500.00).
(b) The Purchase Price shall be paid as follows:
210
.\44662266.1

2 (i) Within three (3) days following the Effective Date, Seller and Buyer shall open an escrow in connection herewith (“Escrow”) at Bennett Escrow (“Escrow Holder”), and Buyer shall deposit into Escrow the amount of Three hundred and Seventy-five Dollars [5% of Purchase Price] ($375.00) (“Initial Deposit”) in cash or other immediately available funds. (ii) The Initial Deposit shall be held by Escrow Holder in an interest - bearing account for the benefit of Buyer in accordance with this Agreement. Notwithstanding anything herein to the contrary, One Hundred Dollars ($100.00) of the Initial Deposit (the “Independent Consideration”) shall not be refundable to Buyer, but shall represent consideration for this Agreement and shall be paid to Seller. The Independent Consideration shall be paid to Seller within 3 days of the Effective Date. The Independent Considera tion shall serve as consideration for the granting of the time periods herein contained for Buyer to exercise Buyer's right to satisfy and approve all of Buyer's conditions herein contained. (iii) Within two (2) days following the expiration of the Feasibility Period, and if this Agreement is not earlier terminated, Buyer shall deposit into Escrow the additional amount of Three hundre d and Seventy-five Dollars [ 5%-10% of Purchase Price ] ($375.00) (the “Second Deposit ”). Together, the First and Second Deposit, and Extension Deposit, if any, shall be referred to as the “Deposits.’ (iv) The Deposits (less the Independent Consideration) are referred to herein from time to time as the “Earnest Money.” The Earnest Money shall be held by Escrow Holder in an interest-bearing account for the benefit of Buyer in accordance with this Agreement. (v) If the Closing (as defined herein) as contemplated hereunder should occur, then the Earnest Money will be paid by the Escrow Holder to Seller at the Closing, and the Earnest Money and any interest accrued thereon will be credited against the Purchase Price payable by Buyer to Seller at the Closing.
(vi) If this Agreement is not terminated prior to the expiration of the Feasibility Period, the Earnest Money and any interest accrued thereon shall be nonrefundable to Buyer, except that if this Agreement is terminated prior to the Closing due to Seller's default or the failure of any of the Conditions Precedent (as defined herein) or as expressly set forth herein, then the Earnest Money together with any interest accrued thereon shall be returned to Buyer. The Earnest Money together with all interest accrued thereon shall be applied to the Purchase Price at the Closing.
(vii) On or before the Closing, if this Agreement has not been earlier terminated, Buyer shall deposit into Escrow cash or other immediately available funds in the amount of the balance of the Purchase Price, less any credits due Buyer hereunder (the “Closing Amount”). The Closing Amount shall be applied towards the Purchase Price at the Closing.

3. Title to the Property . At the Closing, Seller shall cause to be conveyed to Buyer fee simple title to the Property by duly executed and acknowledged grant deed substantially in the form attached hereto as Exhibit B and incorporated herein by this reference (the “Deed”) as well as a duly executed Bill of Sale for the Personal Property, if any. As used in this Agreement, Closing (the “Closing”) shall be deemed to occur upon the recording of the Deed. Evidence of 211
.\44662266.1

3 delivery of fee simple title shall be the issuance by Escrow Holder to Buyer of an ALTA standard coverage owner's policy of title insurance in the amount of the Purchase Price, insuring fee simple title to the Property in Buyer, subject only to such exceptions as Buyer shall have approved as provided below (the “Title Policy ”). The Title Policy shall provide full coverage against mechanics' and materialmen's liens and shall contain such special endorsements as Buyer may reasonably require, including, witho ut limitation, any endorsements required as a condition to Buyer's approval of any title exceptions (the “Endorsements”). Within five ( 5) business days following the opening of Escrow, Seller shall order the issuance of a preliminary title report with respect to the Property, together with copies of all underlying documents referenced therein and a map containing a plotting of all easements capable of being plotted (collectively, the “Preliminary Report”), to be prepared by the Escrow Holder and delivered to Buyer. No later than thirty ( 30) business days after receipt of the Preliminary Report, Buyer shall give written no tice to Seller of any items contained in the Preliminary Report which Buyer disapproves ( “Buyer's Disapproval Notice”). Failure of Buyer to notify Seller of Buyer's disapproval of all or any item on the Preliminary Report shall be deemed to be an approval by Buyer of such item(s). In any event, Seller covenants to remove as exceptions to title prior to the Closing, any mortgages, deeds of trust, and other monetary encumbrances (collectively, “Disapproved Liens ”) shown on the Preliminary Report except for real property taxes not delinquent. Seller shall notify Buyer no later than five (5) business days after receipt of Buyer's Disapproval Notice whether it elects to remove such other items disapproved by Buyer. If by the expiration of the Feasibility Period, there remain exceptions to title which have not been modified to the satisfaction of Buyer and/or removed prior to the Closing Date, then Buyer may elect to do either of the following by the expiration of the Feasibility Period: (i) accept such exceptions and proceed to take title to the Real Property subject to such exception(s); or (ii) this Agreement may be terminated in accordance with Section 4(b).

In the event Buyer elects to terminate this Agreement pursuant to this Section 3, neither party shall have any further obligations to the other hereunder (except under provisions of this Agreement which specifically state that they survive termination).

4. Feasibility.
(a) From and after the Effective Date until the Closing or earlier termination of this Agreement, Seller shall afford authorized representatives of Buyer access to the Property, upon reasonable prior notice to Seller, and so long as such access does not unreasonably interfere with the conduct of business on or use of the Property, for purposes of conducting such physical inspections and investigations of the Property as Buyer deems necessary (the “Inspections”).

Seller's representative shall be present with Bu yer or Buyer's representative for any access to the Property. The Inspections and investigations may include, without limitation, (i) a review of existing zoning, entitlement, planning or similar issues applicable to the Property; (ii) a review of the physical condition of the Property and the systems serving the Property; (iii) a review of the environmental condition of the Property, including a Phase I environmental site assessment and any proposal regarding a Phase II environmental site assessment. Buyer agrees not to conduct or cause to be conducted a Phase II environmental site assessment without the prior written consent of Seller. Buyer's Inspections and investigations shall be governed by Section 14. (b) As used herein, the term ( “Feasibility Period”) shall refer to a period of time to expire at 5:00 p.m., California time, on the forty -fifth (45th) calendar day following the Effective Date; provided, however, that if the 45th day is a Saturday, Sunday or holiday on which 212
.\44662266.1

4 banking institutions are closed in the State of California, then the Feasibility Period shall expire on the following business day. Buyer may elect, by written notice to Seller at any time prior to the expiration of the Feasibility Period, to terminate th is Agreement, which election shall be in Buyer's sole and absolute discretion. If Buyer desires to terminate this Agreement pursuant to this Section 4(b) then before the expiration of the Feasibility Period, Buyer shall deliver written notice to Seller of Buyer's election to terminate (the “Buyer's Notice to Terminate”). If Buyer desires to proceed with the purchase of the Property subject to the remaining conditions set forth in this Agreement, then on or before the expiration of the Feasibility Period, Buyer shall deliver written notice to Seller of such election to proceed (the “Buyer's Notice to Proceed”), electing to waive Buyer's right of termination pursuant to this Section 4(b) and proceed with the Closing subject to the remaining conditions set forth in this Agreement. If Buyer fails to deliver either Buyer's Notice to Terminate or Buyer's Notice to Proceed to Seller prior to the expiration of the Feasibility Period, then Buyer shall be deemed to have elected to proceed with this Agreement and the Closing. In the event of the termination of this Agreement pursuant to this Section 4(b), neither party shall have any further obligations to the other hereunder (except under provisions of this Agreement which specifically state that they survive termination). (c) In the event Buyer elects to terminate this Agreement pursuant to Section 4(b), or if Closing does not occur for any reason, Buyer shall return all Seller's Deliveries to Seller. Buyer further agrees that prior to Closing, Buyer shall provide Seller with copies of all studies, reports, appraisals and other materials commissioned by or prepared for Buyer relating to or regarding the Property (“Buyer's Reports”), at no cost to Seller.

5. Conditions to Seller's Obligations. Seller's obligations hereunder, including, but not limited to, its obligation to consummate the purchase transaction provided for herein, are subject to the satisfaction of each of the following conditions, each of which is for the sole benefit of Seller and may be waived by Seller in writing in Seller’s sole and absolute discretion:
(a) Buyer shall not be in default under this Agreement. (b) Each representation and warranty made in this Agreement by Buyer shall be true and correct in all material respects at the time as of which the same is made and as of the Close of Escrow.

6. Conditions Precedent to Closing . The following are conditions precedent to Buyer's obligation to purchase the Property (the “Conditions Precedent ”). The Conditions Precedent are intended solely for the benefit of Buyer and may be waived only by Buyer in writing in Buyer’s sole and absolute discretion . In the event any Condition Precedent is not satisfied, Buyer may, in its sole and absolute discretion, terminate this Agreement, subject to the provisions of Section 8.
(a) Buyer's inspection, review and approval, within the Feasibility Period, of all of the following:
(i) The physical characteristics and condition of the Property (including without limitation the condition of the soils);
(ii) Seller's Deliveries; and,
213
.\44662266.1

5 (b) Escrow Holder shall be unconditionally committed to issue the Title Policy to Buyer upon the Closing in the form and with such exceptions and endorsements as have been approved, or are deemed approved, by Buyer as provided in Section 3 above. (c) Seller shall have complied with all of Seller's duties and obligations contained in this Agreement and all of Seller's representations and warranties contained in or made pursuant to this Agreement shall have been true and correct when made and shall be tr ue and correct as of the Closing Date.

7. LIQUIDATED DAMAGES. IF THE SALE OF THE PROPERTY PURSUANT

TO THIS AGREEMENT IS NOT CONSUMMATED SOLELY BECAUSE OF A DEFAULT

UNDER THIS AGREEMENT ON THE PART OF BUYER, THE INITIAL DEPOSIT, THE SECOND DEPOSIT AND ANY EXTENSION DEPOSIT (THE “DEPOSITS”), AND ALL BUYER'S REPORTS, SHALL BE RETAINED BY SELLER AS LIQUIDATED DAMAGES.

THE PARTIES HAVE AGREED THAT SELLER'S ACTUAL DAMAGES, IN THE EVENT OF

A DEFAULT BY BUYER, WOULD BE EXTREMELY DIFFICULT OR IMPRACTICABLE TO DETERMINE. THEREFORE, BY PLACING THE IR INITIALS BELOW, THE PARTIES

ACKNOWLEDGE THAT THE EARNEST MONEY AND BUYER'S REPORTS HAVE BEEN

AGREED UPON, AFTER NEGOTIATION, AS THE PARTIES' REASONABLE ESTIMATE

OF SELLER'S DAMAGES AND AS SELLER'S SOLE AND EXCLUSIVE REMEDY

AGAINST BUYER, AT LAW OR IN EQUITY, IN THE EVENT OF A DEFAULT UNDER THIS AGREEMENT ON THE PART OF BUYER. UPON THE OCCURRENCE OF ANY SUCH DEFAULT BY BUYER, BUYER SHALL DELIVER WITHIN 2 BUSINESS DAYS OF

SELLER'S REQUEST ALL BUYER'S REPORTS AND APPROPRIATE DOCUMENTS ASSIGNING SAME TO SELLER. SEL LER HEREBY WAIVES ANY AND ALL BENEFITS IT MAY HAVE UNDER CALIFORNIA CIVIL CODE SECTION 3389. FURTHERMORE,

THE PAYMENT AND RETENTION OF SUCH EARNEST MONEY AS LIQUIDATED

DAMAGES IS NOT INTENDED AS A FORFEITURE OR PENALTY WITHIN THE MEANING OF CALIFORNIA CIVIL CODE SECTIONS 3275 AND 3369, BUT IS INTENDED

TO CONSTITUTE LIQUIDATED DAMAGES TO SELLER PURSUANT TO CALIFORNIA CIVIL CODE SECTIONS 1671, 1676 AND 1677. UPON BUYER'S DEFAULT, SELLER MAY

INSTRUCT ESCROW HOLDER TO CANCEL THE ESCROW, AND PROMPTLY UPON RECEIPT OF SAID INSTRUCTIONS, ESCROW HOLDER SHALL (i) CANCEL THE ESCROW, (ii) PAY ALL OF ESCROW HOLDER'S CHARGES FROM THE EARNEST MONEY, AND (iii) DISBURSE TO SELLER THE EARNEST MONEY PURSUANT TO THIS SECTION 8.

INITIALS: Seller _________ Buyer __________

8. Escrow; Closing, Prorations.
(a) Upon mutual execution of this Agreement, the parties hereto shall deposit an executed counterpart of this Agreement with Escrow Holder and this Agreement shall serve as instructions to Escrow Holder for consummation of the purchase contemplated hereby. Seller and Buyer shall execute such supplemental Escrow instructions as may be appropriate to enable Escrow Holder to comply with the terms of this Agreement, provided such supplemental Escrow instructions are not in conflict with this Agreement as it may be amended in writing from time to 214
.\44662266.1

6 time. In the event of any conflict between the provisions of this Agreement and any supplementary Escrow instructions signed by Buyer and Seller, the terms of this Agreement shall control. (b) The Closing shall take place (the “Closing Date”) on or before the date that is fifteen ( 15) days following the expiration of the Feasibility Period or as may be extended as provided below.
(c) [Buyer shall have the option to extend the Closing Date for one period of fifteen (15) days (“Extension Period”), exercisable by written notice of the Extension Period (the “Extension Notice”) delivered to Seller and Escrow Holder not later than five (5) days prior to the previously scheduled Closing Date, together with an additional deposit of [Five Thousand Dollars ($5,000.00)] (the “Extension Deposit”). The Extension Deposit shall be immediately released to Seller upon receipt by Escrow Holder and shall not be applicable to the Purchase Price, and shall be nonrefundable to Buyer except in the event of Seller's default hereunder. ] (d) At or before the Closing, Seller shall deliver to Escrow Holder or Buyer the following:
(i) the duly executed and acknowledged Grant Deed for the Property and the duly executed Bill of Sale;
(ii) a duly executed affidavit that Seller is not a “foreign person” within the meaning of Section 1445(f)(3) of the Internal Revenue Code of 1986 in the form attached as Exhibit D and incorporated herein by this reference together with a duly executed non -foreign person affidavit and evidence that Seller is exempt from the withholding obligations imposed by California Revenue and Taxation Code Sections 18805, 18815, and 26131; (iii) evidence reasonably acceptable to Escrow Holder that the documents delivered by Seller have been duly authorized and executed on behalf of Seller and constitute valid and binding obligations of Seller.
(iv) any other documents which the Escrow Holder may reasonably require from Seller in order to close Escrow which do not increase Seller's liability or obligations hereunder;
(v) a closing statement in form and content satisfactory to Buyer and Seller (the “Closing Statement”) duly executed by Seller; and (vi) any other instruments, records or correspondence called for hereunder which have not previously been delivered.
(e) At or before the Closing, Buyer shall deliver to Escrow Holder or Seller the following:
(i) the Closing Statement, duly executed by Buyer;
(ii) the Closing Amount; and
215
.\44662266.1

7 (iii) evidence reasonably acceptable to Escrow Holder that the documents delivered by Buyer have been duly authorized and executed on behalf of Buyer and constitute valid and binding obligations of Buyer.
(f) Seller and Buyer shall each deposit such other instruments as are reasonably required by Escrow Holder or otherwise required to close the Escrow and consummate the purchase of the Property in accordance with the terms hereof. (g) The following are to be paid by Buyer or Seller or apportioned as of the Closing Date, as follows:
(i) General real property taxes for the year in which Closing occurs together with assessments, property operating expenses, utilities and other recurring costs relating to the Property shall be apportioned as of the Closing Date on the basis of a thirty (30)-day month. (ii) Costs and expenses of Escrow incurred in this transaction shall be paid as follows:
(1) Seller shall pay all sales, use and documentary transfer taxes (except as provided in Subparagraph (ii)(4) below);
(2) Seller shall pay the premium for a standard ALTA coverage owner's policy of title insurance; Buyer shall pay the premium for any extended ALTA coverage if desired;
(3) Seller and Buyer shall each pay one-half (1/2) of the Escrow fees, recording fees and related expenses;
(4) Seller and Buyer shall each pay one-half (1/2) of any city or county transfer taxes due;
(5) all other costs of escrow shall be paid equally by Buyer and Seller.
(iii) The provisions of this Subparagraph (g) shall survive the Closing.

9. Representations, Warranties and Covenants of Seller . As of the date hereof and again as of Closing, Seller represent and warrants to Buyer as follows:
(a) Seller is duly organized, validly existing and in good standing under the laws of the State of California. This Agreement and all documents executed by Seller which are to be delivered to Buyer at the Closing are and at the time of Closing will be duly authorize d, executed and delivered by Seller, are and at the time of Closing will be legal, valid and binding obligations of Seller enforceable against Seller in accordance with their respective terms. Seller has obtained all necessary authorizations, approvals and consents to the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby. 216
.\44662266.1

8 (b) No Action. No attachments, execution proceedings, assignments for the benefit of creditors, insolvency, bankruptcy, reorganization or other proceedings are pending against Seller, nor are any such proceedings contemplated by Seller; (c) No Representations as to Property . There are no representations, agreements, arrangements, or circumstances, oral or written, between the parties relating to the subject matter contained in this Agreement that are not fully expressed in the Agreement, and Seller has not made and does not make any representation or warranty concerning any matter or thing affecting or relating to the Property, including but not limited to its fitness for a particular use, its physical condition or any other matter; and
(d) Sale “AS-IS”. Subject to Seller's representations and warranties contained herein, Buyer's election to purchase the Property will be based upon and will constitute evidence of Buyer's independent investigation of the Property, its use, development potential and suitability for Buyer's intended use, including (without limitation) the following: the feasibility of developing the Property for the purposes intended by Buyer and the conditions of approval for any subdivision map; the size and dimensions of the Property; the availability, cost and adequacy of water, sewerage and any utilities serving or required to serve the Property; the presence and adequacy of current or required infrastructure or other improvements on, near or affecting the Property; any surface, soil, subsoil, fill or other physical conditions of or affecting the Property, such as climate, geological, drainage, air, water or mineral conditions; the condition of title to the Property; the existence of governmental laws, statutes, rules, regulations, ordinances, limitations, restrictions or requirements concerning the use, density, location or suitability of the Property for any existing or proposed development thereof including but not limited to zoning, building, subdivision, environmental or other such regulations; the necessity or availability of any general or specific plan amendments, rezoning, zoning variances, conditional use permits, building permits, environmental impact reports, parcel or subdivision maps and public reports, requirements of any improvement agreements; requirements of the California Subdivision Map Act, and any other governmental permits, approvals or acts (collectively “Permits”); the necessity or existence of any dedications, taxes, fees, charges, costs or assessments which may be imposed in connection with any governmental regulations or the obtaining of any required Permits; the presence of endangered plant or animal species u pon the Property; and all of the matters concerning the condition, use, development or sale of the Property. Seller will not be liable for any loss, damage, injury or claim to any person or property arising from or caused by the development of the Property by Buyer.

Except with respect to a default by Seller hereunder (including a breach of Seller's warranties and representations), Buyer at the Close of Escrow expressly waives its rights granted under California Civil Code Section 1542, which provides as follows:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS

WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO

EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING

THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST

HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT
WITH THE DEBTOR.”
Buyer's Initials: ________ Seller's Initials: ________. 217
.\44662266.1

9 10. Representations, Warranties and Covenants of Buyer. Buyer hereby represents and warrants to Seller as follows:
(a) Buyer is a Limited Liability Company, duly organized, validly existing and in good standing under the laws of California [and qualified to do business in California]. This Agreement and all documents executed by Buyer which are to be delivered to Seller at the Closing are and at the time of Closing will be duly authorized, executed and delivered by Buyer, are and at the tim e of Closing will be legal, valid and binding obligations of Buyer enforceable against Buyer in accordance with their respective terms, and do not and at the time of Closing will not violate any provision of any agreement or judicial order to which Buyer is subject. Buyer has obtained all necessary authorizations, approvals and consents to the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby. (b) Buyer warrants that Buyer is a sophisticated owner and buyer of real property, familiar and experienced with requirements for the development of real property. Buyer has examined the Property or will have done so by Closing, is or will be familiar with its physical condition, and accepts the Property in an “AS-IS” condition. (c) Buyer has conducted or will conduct an independent investigation with respect to zoning and subdivision laws, ordinances, resolutions, and regulations of all governmental authorities having jurisdiction over the Property, and the use and improvement of the Property and is, or at Closing will be, satisfied with the results of such investigation. (d) The Property is being sold “AS-IS” and with all faults.

11. Environmental Matters /Release. As used in this Agreement, “Hazardous Materials” includes petroleum, asbestos, radioactive materials or substances defined as '“hazardous substances,” “hazardous materials” or “toxic substances” (or words of similar import) in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. Section 9601, et seq.), the Hazardous Materials Transportation Act (49 U.S.C. Section 1801, et seq.), the Resource Cons ervation and Recovery Act (42 U.S.C.

Section 6901, et seq.), and under the applicable laws of California. Buyer must rely on its own investigation and not on any representation by Seller regarding Hazardous Materials. Buyer shall rely solely upon its own investigation and inspection of the Property and the improvements thereon and upon the aid and advice of Buyer's independent expert(s) in purchasing the Property, and shall take title to the Property without any warranty, express or implied, by Seller or any employee or agent of Selle r. Seller makes no representations regarding Hazardous Materials in, on or under the Property. Seller's knowledge and disclosures regarding Hazardous Materials are limited to the contents of Seller's Deliveries.

Accordingly, Buyer hereby expressly waives and relinquishes any and all rights and remedies Buyer may now or hereafter have against Seller, whether known or unknown, with respect to any past present, or future presence of Hazardous Materials on, under or a bout the Property or with respect to any past, present or future violations of any rules, regulations or laws, now or hereinafter enacted, regulating or governing use, handling, storage or disposable of Hazardous Materials, including, without limitation (i ) any and all remedies Buyer may now or hereafter have under the Comprehensive Environmental Response Compensation and Liability 218
.\44662266.1

10 Act of 1980 (“CERCLA”), as amended, and any similar law, rule or regulation, (ii) any and all rights Buyer may now or hereafter have against Seller under the Carpenter -Presley-Tanner Hazardous Substance Account Act (California Health and Safety Code, Section 25300 et seq.), as amended and any similar law, rule or regulation, and (iii) any and all claims, whether known or unknown, now or hereafter existing, with respect to the Property under Section 107 of CERCLA (42 U.S. C.A. § 9607).

BUYER HEREBY ACKNOWLEDGES THAT IT HAS READ AND IS
FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542 (“SECTION 1542”), WHICH IS SET FORTH BELOW
“A GENERAL RELEASE DOES NOT EXTEND TO

CLAIMS WHICH THE CREDITOR DOES NOT

KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT

THE TIME OF EXECUTING THE RELEASE, WHICH

IF KNOWN BY HIM MUST HAVE MATERIALLY

AFFECTED HIS SETTLEMENT WITH THE
DEBTOR”

BY INITIALING BELOW, BUYER HEREBY WAIVES THE
PROVISIONS OF SECTION 1542 SOLELY IN CONNECTION WITH

THE MATTERS WHICH ARE THE SUBJECT OF THE FOREGOING
WAIVERS AND RELEASES.
_______________
(Buyer's Initials)

12. Continuation and Survival . All representations, warranties and covenants by the respective parties contained herein or made in writing pursuant to this Agreement are intended to and shall be deemed made as of the date of this Agreement or such writing and again at the Closing, shall be deemed to be material, and unless expressly provided to the contrary shall survive the execution and delivery of this Agreement, the Deed and the Closing.

13. Indemnity.

Buyer agrees to indemnify Seller and the Property against, and to hold and save Seller and the Property harmless from, all claims, demands, suits, actions, damages, obligations, liabilities, losses, costs and expenses, including but not limited to attorney s' fees and court costs, as a result of the Inspections; provided, however, that Buyer will not be obligated to indemnify Seller with respect to its own negligence. The foregoing indemnity shall survive termination of this Agreement. Buyer shall not suffer or permit any mechanic's or materialmen's or other lien to stand against the Property in connection with any labor, materials or services furnished or claimed to have been furnished by or on behalf of Buyer in connection with or as a result of any Inspections.

If any such lien shall be filed against the Property, Buyer shall cause such lien to be discharged or bonded within thirty (30) days after such filing. Following any Inspections Buyer shall restore the Property to substantially its physical condition as existed prior to such inspection (except for any changes to the Property caused by Seller, or its agents or employees). Prior to any entry on the 219
.\44662266.1

11 Property Buyer or its consultant shall at its sole cost obtain a policy of liability insurance with a combined single limit in an amount not less than One Million Dollars ($1,000,000); Seller shall each be named an additional insured on said policy; and Bu yer or its consultants shall furnish to Seller a certificate of insurance confirming such coverage.

14. Condemnation.
(a) In the event a governmental entity commences eminent domain proceedings to take any portion of the Property after the date hereof and prior to the Closing, then Buyer shall have the option to terminate this Agreement by written notice to Seller within ten (10) business days after Buyer first learns of such commencement. In the event of any such termination, the Earnest Money, together with all interest, shall be returned to Buyer. Buyer and Seller shall each be liable for one -half of any escrow fees or ch arges, and neither party shall have any further liability or obligation under this Agreement.
(b) In the event a governmental entity commences eminent domain proceedings to take any part of the Property after the date hereof and prior to the Closing and this Agreement is not terminated pursuant to Section 15(a), then the Closing shall occur as scheduled notwithstanding such proceeding; provided, however, that Seller's interest in all awards arising out of such proceedings (except for any award attributable to the loss of Seller's business or income, Seller's personal property, or the property of any tenant of the Property) shall be assigned to Buyer as of the Closing or credited to Buyer if previously received by Seller. Seller's obligations pursuant to this Section 15(b) shall survive the Closing.

15. Possession. Possession of the Property shall be delivered to Buyer on the Closing Date free of any occupant or property not being conveyed to Buyer as provided hereunder.

16. Seller's Cooperation with Buyer. At no cost to Seller, Seller shall cooperate and do all acts as may be reasonably required or requested by Buyer, at no additional cost to Seller, with regard to the fulfillment of any Condition Precedent. Seller hereby authorizes Buyer and its agents to make all inquiries with and applications to any third party, including any governmental authority, as Buyer may reasonably require to complete its due diligence and satisfy the Conditions Precedent.

17. Brokers and Finders . Seller not employed any firm of as its broker ( “Seller's Broker”) in connection with the purchase and sale of the Property. Seller shall be solely responsible, pursuant to separate agreement, for any payment, fee or commission owing to a Seller's Broker, if any, in connection with the purchase and sale of the Property in accordance with this Agreement. Each party agrees that neither party has had any contact or dealings regarding the Property, or any communication in connection with the subject matter of this transaction, through any real estate broker or other person who can claim a right to a commission or finder's fee in connection with the sale contemplated herein. In the event that any such broker or finder claims a commission or finder's fee based upon any contact, dealings or communication, the party through whom the broker or finder makes its claim shall be responsible for said commission or fee and all costs and expenses (including, without limitation, reasonable attorneys' fees) incurred by the other party in defending against the same. The party through whom any such other broker or finder makes a claim shall hold harmless, indemnify and defend the other party hereto, its successors and 220
.\44662266.1

12 assigns, agents, employees, officers and directors, and the Property from and against any and all obligations, liabilities, claims, demands, liens, encumbrances and losses (including, without limitation, attorneys' fees), arising out of, based on, or incur red as a result of such claim. The provisions of this Section 18 shall survive the Closing or termination of this Agreement.

18. Professional Fees. In the event legal action is commenced to enforce or interpret any of the terms or provisions of this Agreement, the prevailing party in such action shall be entitled to an award of reasonable attorney's fees and costs incurred in connection with the prosecution or defense of said action. In addition, the prevailing party shall be entitled to recover any actual accounting, engineering or other professional fees reasonably incurred in said action or proceeding.

19. Publicity and Confidentiality . Buyer acknowledges that Seller is a public entity and that this Agreement shall be a matter of public record and available to the public under the Public Records Act. Notwithstanding the foregoing, Buyer agrees to not make any public announcements regarding the Property prior to Closing.

20. Miscellaneous.
(a) Notices. Any notice, consent or approval required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been given upon (i) hand delivery, (ii) one business day after being deposited with Federal Express or another reliabl e overnight courier service for next day delivery, (iii) upon facsimile transmission (except that if the date of such transmission is not a business day or if such transmission is made after 5:00 p.m. on a business day, then such notice shall be dee med to be given on the first business day following such transmission), (iv) one business day after transmission by email; or (v) two business days after being deposited in the United States mail, registered or certified mail, postage prepaid, return receipt required, and addressed as follows (or such other address as either party may from time to time specify in writing to the other in accordance herewith):

If to Seller: City of Fontana
Attn: City Manager
8353 Sierra Ave
Fontana, CA 92335

With a copy to: Best Best & Krieger LLP
Attn: Matthew Cody
1333 N. California Blvd., Suite 220
Walnut Creek, CA 94596
Phone: (925) 482-3123
E-Mail: [email protected]
If to Buyer: VRP, Inc.

Attn: Frank Rusich, President
Phone: (909) 350-2700
Email [email protected]
221
.\44662266.1

13 With a copy to: VRP, Inc.

Attn: Tom Rusich, CFO
Phone: (909) 350-2700
Email [email protected]
To Escrow Holder: Bennett Escrow
Attn: Janine Bennett
Phone: (909) 421-2112
Email [email protected]
(b) Successors and Assigns. Buyer shall have the right to assign this Agreement to any entity controlling, controlled by or under common control with Buyer without Seller's consent or approval, and otherwise Buyer shall have the right to assign this Agreement to any entity subject to Seller's prior approval, which approval shall not be unreasonably withheld, conditioned or delayed. Any such assignee shall assume all obligation s of Buyer hereunder; however, Buyer shall remain liable for all obligations hereund er. Seller shall have the right to assign this Agreement. Except as otherwise permitted by this paragraph, neither this Agreement nor the rights of either party hereunder may be assigned by either party. This Agreement shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors, heirs, administrators and assigns.
(c) Amendments. This Agreement may be amended or modified only by a written instrument executed by Seller and Buyer.
(d) Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California.
(e) Construction. Headings at the beginning of each Section and subparagraph are solely for the convenience of the parties and are not a part of the Agreement. This Agreement shall not be construed as if it had been prepared by one of the parties, but rather as if both parties had prepared the same. Unless otherwise indicated, all references to Sections and subparagraphs are to this Agreement. All exhibits referred to in this Agreement are attached and incorporated by this reference.
(f) No Joint Venture . This Agreement shall not create a partnership or joint venture relationship between Buyer and Seller.
(g) Section 1031 Exchange. Seller and Buyer acknowledge and agree that the purchase and sale of the Property may be part of a tax -free exchange under Section 1031 of the Internal Revenue Code of 1986, as amended, for Buyer. Each party hereby agrees to take all reasonable steps on or before the Closing Date to facilitate such exchange if requested by Buyer, provided that (i) Seller shall not be required to acquire any substitute property, (ii) such exchange shall not affect the representations, warranties, lia bilities and obligations of the parties to each other under this Agreement, (iii) Seller shall not incur any additional cost, expense or liability in connection with such exchange (other than expenses of reviewing and executing documents required in connection with such exchange), and (iv) no dates in this Agreement will be extended as a result thereof. Notwithstanding anything to the contrary contained in the foregoing, if Buyer 222
.\44662266.1

14 so elects to close the acquisition of the Property as an exchange, then (A) Buyer, at its sole option, may delegate its obligations to acquire the Property under this Agreement, and may assign its rights to receive the Property from Seller, to an Intermedi ary or to an exchange accommodation titleholder, as the case may be; (B) such delegation and assignment shall in no way reduce, modify or otherwise affect the obligations of Buyer pursuant to this Agreement; (C) Buyer shall remain fully liable for its obligations under this Agreement as if such delegation and assignment shall not have taken place; (D) Intermediary or exchange accommodation titleholder, as the case may be, shall have no liability to Seller; and (E) the closing of the acquisition of the Property by Buyer or the exchange accommodation titleholder, as the case may be, shall be undertaken by direct deed from Seller (or, if applicable, from other affiliates of Seller whom Seller will cause to execute such deeds) to Buyer (or to exchange accommodation titleholder, as the case may be). (h) Merger of Prior Agreements . This Agreement and the exhibits attached hereto constitute the entire agreement between the parties and supersede all prior agreements and understandings between the parties relating to the subject matter hereof, including without limitation, any letters of intent previously executed or submitted by either or both of the parties hereto, which shall be of no further force or effect upon execution of this Agreement. (i) Time of the Essence. Time is of the essence of this Agreement. As used in this Agreement, a “business day” shall mean a day which is not a Saturday, Sunday or recognized federal or state holiday. If the last date for performance by either party under this Agreement occurs on a day which is not a business day, than the last date for such performance shall be extended to the next occurring business day.
(j) Severability. If any provision of this Agreement, or the application thereof to any person, place, or circumstance, shall be held by a court of competent jurisdiction to be invalid, unenforceable or void, the remainder of this Agreement and such provisions as applied to other persons, places and circumstances shall remain in full force and effect. (k) Further Assurances. Each of the parties shall execute and deliver any and all additional papers, documents and other assurances and shall do any and all acts and things reasonably necessary in connection with the performance of their obligations hereunder and to carry out the intent of the parties.
(l) Exhibits. All exhibits attached hereto and referred to herein are incorporated herein as though set forth at length.
(m) Captions. The captions appearing at the commencement of the sections and paragraphs hereof are descriptive only and for convenience in reference. Should there be any conflict between any such caption and the section at the head of which it appears, the section a nd paragraph and not such caption shall control and govern in the construction of this Agreement. (n) No Obligation To Third Parties. Execution and delivery of this Agreement shall not be deemed to confer any rights upon, directly, indirectly or by way of subrogation, nor obligate either of the parties hereto to, any person or entity other than each other. 223
.\44662266.1

15 (o) Waiver. The waiver by any party to this Agreement of the breach of any provision of this Agreement shall not be deemed a continuing waiver or a waiver of any subsequent breach, whether of the same or another provision of this Agreement. (p) Interpretation. This Agreement has been negotiated at arm's length and between persons (or their representatives) sophisticated and knowledgeable in the matters dealt with in this Agreement. Accordingly, any rule of law (including California Civil Code § 1654 and any successor statute) or legal decision that would require interpretation of any ambiguities against the party that has drafted it is not applicable and is waived. The provisions of this Agreement shall be interpreted in a reasonable manner to effect the purpose of the parties and this Agreement. (q) Counterparts/Facsimile/.PDF Signatures. This Agreement may be executed in counterparts and when so executed by the Parties, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument that shall be binding upon the Parties, notwithstanding that the Parties may not be signatories to the same counterpart or counterparts. The Parties may integrate their respective counterparts by attaching the signature pages of each separate counterpart to a single count erpart. In order to expedite the transaction contemplated herein, facsimile or .pdf signatures may be used in place of original signatures on this Agreement. Seller and Buyer intend to be bound by the signatures on the facsimile or .pdf document, are aware that the other party will rely on the facsimile or .pdf signatures, and hereby waive any defenses to the enforcement of the terms of this Agreement based on the form of signature.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date written below.

SELLER:

CITY OF FONTANA, a California Municipal
Corporation
By: _______________________________________
Name: Matthew Ballantyne
Its: City Manager
Date: ____________________________________

ATTEST:
_______________________________

CITY CLERK
224
.\44662266.1

16 APPROVED AS TO FORM:
_______________________________

CITY ATTORNEY
Date:_________________________________

BUYER:

By: _______________________________________
Name: Frank Rusich, President
VRP, Inc., a California Corporation
Date: ____________________________________
225
.\44662266.1

EXHIBIT A

LEGAL DESCRIPTION

226
.\44662266.1

EXHIBIT B

FORM OF DEED

RECORDING REQUESTED BY AND

WHEN RECORDED MAIL TO, AND
MAIL TAX STATEMENTS TO:
[buyer address or attorney]

__________________________________________________________________________ A.P.N.: _________________________ (Space Above Line for Recorder's Use Only) The Undersigned Grantor(s) Declare(s):

DOCUMENTARY TRANSFER TAX $________; CITY TRANSFER TAX $________; SURVEY MONUMENT FEE $ ________

[ ] computed on the consideration or full value of property conveyed, OR [ ] computed on the consideration or full value less value of liens and/or encumbrances remaining at time of sale, [ ] unincorporated area; [ ] City of __________________, and

GRANT DEED
[NOTE- IF SELLER IS PUBLIC ENTITY NO EXEMPTION FOR RECORDING FEES (AS SHOWN HERE); IF BUYER IS PUBLIC ENTITY RECORDING FEES AND TRANSFER

TAX EXEMPT AND SUCH EXEMPTION/CODE CITE MUST BE MADE ON DEED FOR RECORDING OFFICE]
FOR VALUE RECEIVED, _______________________________________ (“Grantor”), grants to ____________________________ ( “Grantee”), all that certain real property situated in the County of ________________, State of California, described on Schedule 1 attached hereto and by this reference incorporated herein (the “Property”).

IN WITNESS WHEREOF, Grantor has executed this Grant Deed as of ________________, 20__.

GRANTOR:
__________________________________________
By: _______________________________________
Name: ___________________________________
Its: ______________________________________
227
.\44662266.1

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

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

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

WITNESS my hand and official seal.

Signature _____________________________ (Seal)

228
.\44662266.1

EXHIBIT C

PERSONAL PROPERTY

No personal property is located at the Property.
229
.\44662266.1

EXHIBIT D

TRANSFEROR'S CERTIFICATION OF NON-FOREIGN STATUS
This form is provided so that the Buyer and/or Seller in this transaction can certify compliance with the Foreign Investment in Real Property Tax Act to the Escrow Agent and/or Buyer. Buyer (“Transferee”) must retain a copy of this document until after the fifth taxable year following the transfer.

Section 1445 of the Internal Revenue Code of 1986, as amended ( “Code”) provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a foreign person.

For U.S. tax purposes (including section 1445), the owner of a disregarded entity (which has legal title to a U.S. real property interest under local law) will be the transferor of the property and not the disregarded entity. To inform Transferee that withholding of tax is not required upon the disposition of a U.S. real property interest, the undersigned hereby certifies the following on behalf of _________________________________ (“Transferor”):

1. The Transferor is not a foreign corporation, foreign partnership, foreign trust, foreign estate or foreign person (as those terms are defined in the Code and the Income Tax Regulations promulgated thereunder).

2. The Transferor is not a disregarded entity as defined in Income Tax Regulation Section 1.1445-2(b)(2)(iii).

3. The Transferor's U.S. employer or tax identification number is ______________.

4. The Transferor's office address is

The Transferor understands that this Certification may be disclosed to the Internal Revenue Service by the Transferee and that any false statement contained herein could be punished by fine, imprisonment, or both.

Under penalties of perjury I declare that I have examined this Certification and to the best of my knowledge and belief it is true, correct and complete, and I further declare that I have authority to sign this document on behalf of the Transferor.

Date:______________, 20__ TRANSFEROR:
__________________________________________
By: _______________________________________
Name: ___________________________________
Its: ______________________________________

230
C it y o f F o n t a n a , S a n B e r n a r d in o C o u n t y , B u r e a u o f L a n d M a n a g e m e n t , E s r i, H E R E , G a r m in , I N C R E M E N T P , U S G S , E P A , U S D A 0 0 . 0 20 . 0 1 m i
6 / 9 / 2 0 2 6
S c a le 1 : 1 , 1 2 8
/ T h is in f o r m a t io n p r o v id e d " a s is " w it h o u t w a r r a n t y .

C it y o f F o n t a n a
V ic in it y M a p

REAL PROPERTY AS

PART OF PURCHASE

AGREEMENT
231
DocuSign Envelope ID: F1A6B1F6- E5A2- 470E- 914A- D0BD5F821511 RESOLUTION NO. 2024- 001

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FONTANA
DECLARING PURSUANT TO GOVERNMENT CODE SECTION 54221

THAT REAL PROPERTY OWNED BY THE AGENCY LOCATED AS

SHOWN ON THE ATTACHED LEGAL DESCRIPTION, LOCATED ON

OLEANDER AVENUE, IS EXEMPT SURPLUS LAND FOR PURPOSES

STATED HEREIN, AND FINDING THAT SUCH DECLARATION AND

AUTHORIZATION IS EXEMPT FROM ENVIRONMENTAL REVIEW
UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT.

WHEREAS, the City of Fontana ( the " Agency" or the " City") is the owner in fee simple of that certain real property described in Exhibit " A", attached and incorporated herein, which property is approximately 3065 square feet in size and is located on Oleander Avenue in the City of Fontana (" Property"); and WHEREAS, the Property is less than one half -acre in area and is not contiguous to land owned by the City that is used for open -space or low- and moderate - income housing purposes; and
WHEREAS, the Property, at the time of the conveyance, will be a former street, right- of-way, or easement, and is to be conveyed to the owner of adjacent land provided that the City vacates that portion of Oleander Avenue prior to the conveyance; and
WHEREAS, the City no longer has any use for the Property and it is not part of the City' s General Plan Community Mobility and Circulation Element; and WHEREAS, the Surplus Land Act, Government Code sections 54220 et seq. as amended, the " Act"), applies when a local agency disposes of " surplus land," as that term is defined in Government Code section 54221; and WHEREAS, the Property is "surplus land" under the Act, because it is land owned in fee simple by the Agency for which the City Council will take formal action ( in the form of adoption of this resolution) in a regular public meeting declaring that the land is surplus and is not necessary for the Agency' s use; and WHEREAS, the Act exempts certain surplus land from its requirements, including land that is ( i) " less than one- half acre in area and is not contiguous to land owned by the state or local agency that is used for open -space or low- and moderate - income housing purposes." ( Government Code section 54221( f)( 1)( B)), and " land that is a former street, right- of-way, or easement, and is conveyed to an owner of an adjacent property." ( Government Code section 54221( f)( 1)( E)); and