Agenda packet — Ontario City Council, April 19, 2022 (part 1 of 12)

CITY OF ONTARIO
Regular City Council/Housing Authority
Meeting
APRIL 19, 2022
City Hall
303 East B Street, Ontario, CA 91764
MAYOR PAUL S. LEON • MAYOR PRO TEM ALAN D. WAPNER
COUNCIL MEMBERS JIM W. BOWMAN, DEBRA DORST-PORADA AND RUBEN VALENCIA CITY CLERK SHEILA MAUTZ • TREASURER JAMES R. MILHISER
CITY MANAGER SCOTT OCHOA • CITY ATTORNEY RUBEN DURAN

WELCOME TO A MEETING OF THE ONTARIO CITY COUNCIL
All documents for public review are on file with the Records Management/City Clerk's Department located at 303 East B Street, Ontario, CA 91764.

Anyone wishing to speak in person during public comment or on a particular item will be required to fill out a blue slip. Blue slips must be turned in prior to public comment beginning or before an agenda item is taken up. The Clerk will not accept blue slips after that time. To comment by email, submit your comments no later than 4:00 p.m. on the day of the meeting by emailing your name, agenda item you are commenting on and your comments to [email protected]. All comments received by the deadline will be forwarded to the City Council for consideration before action is taken on the matter and will be entered into the record.

Comments will be limited to 3 minutes. Speakers will be alerted when they have 1 minute remaining and when their time is up. Speakers are then to return to their seats and no further comments will be permitted.

In accordance with State Law, remarks during public comment are to be limited to subjects within Council's jurisdiction. Remarks on other agenda items will be limited to those items.

Remarks from those seated or standing in the back of the chamber will not permitted. All those wishing to speak including Council and Staff need to be recognized by the Chair before speaking.

WEARING A MASK DURING THE PUBLIC MEETING IS STRONGLY ENCOURAGED.

If you need special assistance or accommodations to participate in this meeting, please contact CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 1 ATTACHMENT: 20220419 Closed Session
the City Clerk's office at 909-395-2009. Notification of 48 hours prior to the meeting will help the City make reasonable arrangements. Equipment for the hearing impaired is available in the Records Management Office.

ORDER OF BUSINESS
The regular City Council and Housing Authority meeting begins with Closed Session and Closed Session Comment at 5:30 p.m., Public Comment at 6:30 p.m. immediately followed by the Regular Meeting and Public Hearings. No agenda item will be introduced for consideration after 10:00 p.m. except by majority vote of the City Council.

CALL TO ORDER (OPEN SESSION)

ROLL CALL
Wapner, Bowman, Dorst-Porada, Valencia, Mayor/Chairman Leon

CLOSED SESSION PUBLIC COMMENT
The Closed Session Public Comment portion of the Council/Housing Authority meeting is limited to a maximum of 3 minutes for each speaker and comments will be limited to matters appearing on the Closed Session. Additional opportunities for further Public Comment will be given during and at the end of the meeting.

CLOSED SESSION
GC 54956.9 (d)(1), CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION Wendie Rios v. City of Ontario et al., Superior Court of California, County of San Bernardino Case No: CIVDS1828142 GC 54956.8 CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: APN: 1048-562-01; 215 West C Street; City/Authority negotiator: Scott Ochoa, City Manager or his designee; Negotiating parties: United Christian Church of Hacienda Heights; Under negotiation: Price and Terms of Payment

PLEDGE OF ALLEGIANCE
Council Member Valencia

INVOCATION
Pastor Benjamin Barlow, First Christian Church
CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 2 REPORT ON CLOSED SESSION
City Attorney
PUBLIC COMMENTS 6:30 P.M.

The Public Comment portion of the Council/Housing Authority meeting is limited to 30 minutes with each speaker given a maximum of 3 minutes. An opportunity for further Public Comment may be given at the end of the meeting. Under provisions of the Brown Act, Council is prohibited from taking action on oral requests.

To comment by email, submit your comments by email no later than 4:00 p.m. on the day of the meeting by emailing your name, agenda item you are commenting on and your comment to [email protected]. All Comments received by the deadline will be forwarded to the City Council for consideration before action is taken on the matter and entered into the record. As previously noted -- if you wish to address the Council, fill out one of the blue slips at the rear of the chambers and give it to the City Clerk.

AGENDA REVIEW/ANNOUNCEMENTS
The City Manager will go over all updated materials and correspondence received after the Agenda was distributed to ensure Council Members have received them. He will also make any necessary recommendations regarding Agenda modifications or announcements regarding Agenda items to be considered.

SPECIAL CEREMONIES
Honoring the Chaffey Academic Decathlon Team

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 a separate vote.

Each member of the public wishing to address the City Council on items listed on the Consent Calendar will be given a total of 3 minutes.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 3 1. APPROVAL OF MINUTES
ATTACHMENT: 20220315 Minutes (Not official until approved).pdf

2. BILLS & PAYROLL

3. RESOLUTIONS DEDICATING RIGHT-OF-WAY EASEMENTS FOR PUBLIC ROAD AND UTILITY

PURPOSES OVER A PORTION OF CITY-OWNED PARCELS AT BUDD STREET AND FERN

AVENUE, MAITLAND STREET AND BON VIEW AVENUE, AND WALNUT STREET AND CAMPUS AVENUE
ATTACHMENT: 20220419 Budd ROW Dedication^01 EXH 1
ATTACHMENT: 20220419 Maitland ROW Dedication^02 EXH 2
ATTACHMENT: 20220419 Walnut ROW Dedication^03 EXH 3
ATTACHMENT: 20220419 Budd ROW Dedication 04 RESO^RM
ATTACHMENT: 20220419 Budd ROW Dedication^05 Deed
ATTACHMENT: 20220419 Maitland ROW Dedication 06^RESO^RM ATTACHMENT: 20220419 Maitland ROW Dedication^07 Deed
ATTACHMENT: 20220419 Walnut ROW Dedication^08^RESO^RM
ATTACHMENT: 20220419 Walnut ROW Dedication^09 Deed
Minutes for the regular meetings of the City Council and Housing Authority of March 15, 2022, and approve the same as on file in the Records Management Department.

Bills March 18, 2022 through March 31, 2022, and Payroll March 13, 2022 through March 26, 2022 when audited by the Finance Committee.

That the City Council consider and adopt three Resolutions dedicating right-of-way easements for public road and utility purposes over a portion of City-owned parcels at Budd Street and Fern Avenue (APN: 1050-051-31, 32, 33), Maitland Street and Bon View Avenue (APN: 1049- 451-01, 02, 24), and Walnut Street and Campus Avenue (APN: 1051-381-06); and authorize the City Manager or his designee to execute the easement deeds.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA,

DEDICATING A RIGHT-OF-WAY EASEMENT FOR PUBLIC ROAD AND UTILITY

PURPOSES OVER A PORTION OF CITY-OWNED PARCELS (DE ANZA PARK, COMMUNITY & TEEN CENTER) AT BUDD STREET AND FERN AVENUE – APN: 1050- 051-31, 32, 33.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA,

DEDICATING A RIGHT-OF-WAY EASEMENT FOR PUBLIC ROAD AND UTILITY

PURPOSES OVER A PORTION OF CITY-OWNED PARCELS (BON VIEW PARK) AT MAITLAND STREET AND BON VIEW AVENUE – APN: 1049-451-01, 02, 24.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA,

DEDICATING A RIGHT-OF-WAY EASEMENT FOR PUBLIC ROAD AND UTILITY

PURPOSES OVER A PORTION OF A CITY-OWNED PARCEL (KIMBALL COMMUNITY PARK) AT WALNUT STREET AND CAMPUS AVENUE – APN: 1051-381-06.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 4 4. ACCEPTANCE OF GRANT AWARD FROM THE U.S. DEPARTMENT OF HOMELAND SECURITY AND THE CALIFORNIA OFFICE OF EMERGENCY SERVICES PROVIDED THROUGH THE FY 2020

URBAN AREA SECURITY INITIATIVE (UASI) GRANT PROGRAM

5. A RESOLUTION FOR PLACEMENT OF SPECIAL ASSESSMENTS ON THE SAN BERNARDINO

COUNTY TAX ROLLS
ATTACHMENT: 20220419 Comm Imp Special Assessments for County Tax Rolls^01 RESO^RM
ATTACHMENT: 20220419 Comm Imp Special Assessments for County Tax Rolls^02 EXH A
ATTACHMENT: 20220419 Comm Imp Special Assessments for County Tax Rolls^03 EXH B
ATTACHMENT: 20220419 Comm Imp Special Assessments for County Tax Rolls^04 EXH C

6. FIRST AMENDMENT TO THE CONSOLIDATED PLAN ANNUAL ACTION PLAN FOR THE 2021- 22 PROGRAM YEAR AND AMENDMENT TO HOME PROGRAM PARTICIPATION AMENDMENT

BETWEEEN THE CITY OF ONTARIO, ONTARIO HOUSING AUTHORITY AND MERCY HOUSE CHDO FOR THE ACQUISITION AND REHABILITATION OF 411 N. PARKSIDE AVENUE That the City Council authorize the City Manager to execute all documents necessary to accept a three-year sub-grant award in the amount of $603,025 from the U.S. Department of Homeland Security and the California Office of Emergency Services provided through the FY 2020 UASI Grant Program.

That the City Council adopt a Resolution for recovery of fees and costs incurred in abating property and dangerous building violations, as well as administrative citations and civil penalties associated with property maintenance violations, and placing assessments on the San Bernardino County Tax Rolls.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA,

ADOPTING A REPORT REQUESTING THE PLACEMENT OF SPECIAL ASSESSMENTS

ON PROPERTY TAX BILLS FOR CIVIL PENALTIES OR RECOVERY OF COSTS INCURRED FOR ABATEMENT OF VIOLATIONS OF CITY CODES AND ORDINANCES.

That City Council ("City") and the Board of the Ontario Housing Authority ("Authority") take the following actions:

1. Approve the First Amendment to the FY 2021-22 Annual Action Plan (on file in the Records Management Department) (“Substantial Amendment”);

2. Approve the First Amendment to the HOME Program Participation Agreement among the City of Ontario, Ontario Housing Authority, and Mercy House CHDO, Inc. for the acquisition and rehabilitation of 411 North Parkside Avenue (on file in the Records Management Department); and

3. Authorize the City Manager/Executive Director or his designee to sign all documents necessary to implement the Agreements.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 5 7. A RESOLUTION ESTABLISHING PARKING RESTRICTIONS FOR STREET SWEEPING PURPOSES ON CERTAIN PORTIONS OF NORTH VIRGINIA STREET BETWEEN EAST 6TH STREET AND

EAST DEODAR STREET IN THE CITY OF ONTARIO
ATTACHMENT: 20220419 Establishing Parking Restrictions for Street Sweeping Purposes on Virginia St between 6th St. and Deodar St^RESO^RM

8. A CONSTRUCTION CONTRACT FOR A POLICE DEPARTMENT FLEET SERVICES SHOP

9. AMENDMENT TO AGREEMENT WITH AXON ENTERPRISE, INC. FOR THE UPGRADE OF

EQUIPMENT AND HARDWARE

10. A CHANGE ORDER TO THE CONSTRUCTION CONTRACT WITH DBA LETNER ROOFING CO.

FOR ADDITIONAL LABOR AND MATERIALS NEEDED FOR THE SOLAR INSTALLATION

PROJECT AT CITY HALL ANNEX BUILDING
That the City Council adopt a Resolution of the City Council establishing parking restrictions for street sweeping purposes on certain portions of North Virginia Street between East 6th Street and East Deodar Street in the City of Ontario.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA,

ESTABLISHING PARKING RESTRICTIONS FOR STREET SWEEPING PURPOSES ON CERTAIN PORTIONS OF NORTH VIRGINIA STREET BETWEEN EAST 6TH STREET AND EAST DEODAR STREET IN THE CITY OF ONTARIO.

That the City Council take the following actions:

A. Reject Clawson Automotive Equipment and SAS Construction’s bid as being nonresponsive; B. Award a Construction Contract (on file with Records Management Department) to BCM Group, Inc. of Rancho Cucamonga, California for the construction of a Police Department Fleet Services Shop in an amount not to exceed $649,999 plus a 10% contingency of $64,999 to address any unforeseen issues that may arise during construction, for a total authorized expenditure of $714,998; and
C. Authorize the City Manager, or his designee, to execute said contract and all documents required for the completion of the project and file a notice of completion at the conclusion of all construction activities.

That the City Council authorize the City Manager to execute an amendment to the existing five year agreement with Axon Enterprise, Inc., of Scottsdale, Arizona, for the purchase of new equipment including; cameras, maintenance, and data management services at an additional cost of $80,528 to the existing contract of $3,722,106, for a total not-to-exceed of $3,802,634.

That the City Council take the following actions:

A. Authorize the City Manager or his designee to execute a change order in the amount of $110,298 to the original Construction Contract for DBA Letner Roofing Co. (on file with CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 6 11. BUDGET AMENDMENT FOR THE PURCHASE OF FLEET VEHICLES

12. AN AMENDMENT TO THE ON-CALL DESIGN SERVICES AGREEMENT FOR ONTARIO

MUNICIPAL SERVICES CENTER MODULAR OFFICES

13. REAL PROPERTY EXCHANGE BETWEEN THE CITY OF ONTARIO AND THE UNIVERSITY OF LA VERNE
ATTACHMENT: 20220419 ULV Real Property Exchange Agreement^01 RESO^RM Records Management Department) for the solar improvement project at City Hall Annex Building. DBA Letner’s Roofing Company’s original contract value amount of $546,997 plus a 10% contingency of $54,699 for a total amount of $601,696. Additional funding of $110,298 will revise contract value to $711,994;
B. Authorize the City Manager to transfer the budget appropriations of $110,298 to the original Construction Contract for DBA Letner Roofing Co. (on file with Records Management Department) from the Library Roof Restoration Project. This additional funding will assist the solar improvement project at City Hall Annex Building as outlined in the Energy Service Agreement with Climatec, LLC (on file with Records Management Department).; and
C. Authorize the City Manager or his designee to execute said contract and authorize the filing of the notice of completion at the conclusion of all construction activities related to the project.

That the City Council authorize a $31,000 budget amendment from the Integrated Waste Fund for the purchase of two (2) Autocar Roll Off trucks in the amount of $601,000 for the Integrated Waste Department.

That the City Council approve and authorize the City Manager, or his designee to execute Amendment No. 3 to the On-Call Design Service Agreement (on file in the Records Management Department) with Holt Architects, Inc. (dba Holt Architecture) of Palm Desert, California in the amount of $90,498, plus a 15% contingency of $13,575 for a total amount of $104,073.

That the City Council adopt a Resolution:

A. Declaring certain City-owned real property to be exempt surplus land; B. Approving a real property exchange agreement with the University of La Verne; C. Authorizing the City Manager to take all actions necessary with respect thereto; and D. Finding that no further CEQA analysis is necessary

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, (I)

DECLARING CERTAIN CITY-OWNED REAL PROPERTY TO BE EXEMPT SURPLUS LAND; (II) APPROVING A REAL PROPERTY EXCHANGE AGREEMENT WITH THE UNIVERSITY OF LA VERNE; (III) AUTHORIZING THE CITY MANAGER TO TAKE ALL ACTIONS NECESSARY WITH RESPECT THERETO; AND (IV) FINDING THAT NO FURTHER CEQA ANALYSIS IS NECESSARY.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 7 ATTACHMENT: 20220419 ULV Real Property Exchange^02 AGMT

14. AN AMENDMENT TO PROFESSIONAL SERVICES AGREEMENTS FOR ON-CALL APPRAISAL,

PROJECT MANAGEMENT, LAND ACQUISITION, RELOCATION AND PROPERTY

MANAGEMENT SERVICES

15. FIRST AMENDMENT TO A PROFESSIONAL SERVICES AGREEMENT FOR ARCHITECTURAL

AND DESIGN SERVICES

16. CONSIDERATION OF A PROPOSED MILITARY EQUIPMENT USE POLICY TO COMMENCE THE APPROVAL PROCESS OF THE POLICY PURSUANT TO GOVERNMENT CODE &SECT; 7070 ET.

SEQ
ATTACHMENT: 20220419 Policy 708 Military Equipment
ATTACHMENT: 20220419 Military Equipment List^03

17. A PUBLIC HEARING TO CONSIDER A RESOLUTION CALLING A SPECIAL ELECTION FOR

PROPOSED CHANGES TO THE RATE AND METHOD OF APPORTIONMENT OF THE EXISTING SPECIAL TAX OF THE CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 35 (COUNTRYSIDE PHASE 2 SOUTH-FACILITIES); A RESOLUTION OF CHANGE, DECLARING

RESULTS OF A SPECIAL ELECTION, DETERMINING THAT CHANGES TO THE RATE AND

METHOD OF APPORTIONMENT OF THE EXISTING SPECIAL TAX OF COMMUNITY FACILITIES DISTRICT NO. 35 (COUNTRYSIDE PHASE 2 SOUTH-FACILITIES) ARE LAWFULLY AUTHORIZED AND DIRECTING THE RECORDING OF AN AMENDMENT TO NOTICE OF SPECIAL TAX LIEN; A N D AN ORDINANCE AMENDING AND RESTATING ORDINANCE NO. 3082 LEVYING SPECIAL TAXES WITHIN THE CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 35 That the City Council (“City”) approve and authorize the City Manager or his designee to execute Amendment No. 3 to Professional Services Agreements with R.P. Laurain & Associates in the amount of $100,000; Integra Realty Resources in the amount of $100,000; Property Specialist Inc., (dba CPSI) in the amount of $200,000; and, Amendment No. 6 to Professional Services Agreements with Transtech Engineers Inc. in the amount of $100,000.

That the City Council (“City”) approve and authorize the City Manager to execute a First Amendment to a Professional Services Agreements with Thirtieth Street Architects in the amount not to exceed $200,000.

That the City Council receive the proposed military equipment use policy and commence the approval process for the City of Ontario to adopt the policy in accordance with Government Code § 7070 et. seq.

PUBLIC HEARINGS
Pursuant to Government Code Section 65009, if you challenge the City’s zoning, planning or any other decision in court, 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 Council at, or prior to the public hearing. Affidavits of posting compliance, for all items below, are on file with the Records Management Department.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 8 (COUNTRYSIDE PHASE 2 SOUTH-FACILITIES); A RESOLUTION DEEMING IT NECESSARY TO AMEND RESOLUTION NO. 2017-124 IN ORDER TO INCREASE THE MAXIMUM AGGREGATE

AMOUNT OF BONDED INDEBTEDNESS THAT CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 35 (COUNTRYSIDE PHASE 2 SOUTH-FACILITIES) IS AUTHORIZED TO INCUR; A

RESOLUTION CALLING A SPECIAL ELECTION FOR CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 35 (COUNTRYSIDE PHASE 2 SOUTH-FACILITIES); AND A RESOLUTION DECLARING THE RESULTS OF THE SPECIAL ELECTION.

That the City Council consider and:

D. Adopt a resolution deeming it necessary to amend Resolution No. 2017-124 in order to increase the maximum aggregate amount of bonded indebtedness that Community Facilities District No. 35 (Countryside Phase 2 South-Facilities) is authorized to incur; E. Adopt a Resolution calling a special election for Community Facilities District No. 35 (Countryside Phase 2 South-Facilities); and
F. Adopt a Resolution declaring the results of the special election.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA,

CALLING A SPECIAL ELECTION FOR PROPOSED CHANGES TO THE RATE AND

METHOD OF APPORTIONMENT OF THE EXISTING SPECIAL TAX OF CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 35 (COUNTRYSIDE PHASE 2 SOUTH-FACILITIES).

A RESOLUTION OF CHANGE OF THE CITY COUNCIL OF THE CITY OF ONTARIO,

CALIFORNIA, DECLARING RESULTS OF SPECIAL ELECTION, DETERMINING THAT

CHANGES TO THE RATE AND METHOD OF APPORTIONMENT OF THE EXISTING SPECIAL TAX OF CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 35 (COUNTRYSIDE PHASE 2 SOUTH-FACILITIES) ARE LAWFULLY AUTHORIZED AND DIRECTING RECORDING OF AN AMENDMENT TO NOTICE OF SPECIAL TAX LIEN.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, AMENDING AND RESTATING ORDINANCE NO. 3082 LEVYING SPECIAL TAXES WITHIN THE CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 35 (COUNTRYSIDE PHASE 2 SOUTH-FACILITIES).

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, DEEMING IT NECESSARY TO AMEND RESOLUTION NO. 2017-124 IN ORDER TO CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 9 ATTACHMENT: 20220419 CFD No. 35 Countryside Phase 2 So-Fac 01 RESO Calling Special^RM
ATTACHMENT: 20220419 CFD No. 35 Countryside Phase 2 So-Fac^01A EXH B RMA ATTACHMENT: 20220419 CFD No. 35 Countryside Phase 2 So-Fac^02 RESO Declaring Results^RM
ATTACHMENT: 20220419 CFD No. 35 Countryside Phase 2 So-Fac^03 ORD^RM ATTACHMENT: 20220419 CFD No. 35 Countryside Phase 2 So-Fac 04 RESO Deeming it Necessary to Incur RM
ATTACHMENT: 20220419 CFD No. 35 Countryside Phase 2 So-Fac 05 RESO Calling Special Election RM
ATTACHMENT: 20220419 CFD No. 35 Countryside Phase 2 So-Fac 06 RESO Declaring Results of Special Election^RM

18. A PUBLIC HEARING TO CONSIDER A RESOLUTION REGARDING THE FORMATION OF THE CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 63 (OLIVE AND OLEANDER); ADOPTION OF A RESOLUTION TO INCUR BONDED INDEBTEDNESS; AND INTRODUCTION

OF AN ORDINANCE LEVYING SPECIAL TAXES

INCREASE THE MAXIMUM AGGREGATE AMOUNT OF BONDED INDEBTEDNESS THAT CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 35 (COUNTRYSIDE PHASE 2 SOUTH-FACILITIES) IS AUTHORIZED TO INCUR.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA,

CALLING SPECIAL ELECTION FOR CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 35 (COUNTRYSIDE PHASE 2 SOUTH-FACILITIES).

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA,

DECLARING RESULTS OF SPECIAL ELECTION OF COMMUNITY FACILITIES DISTRICT NO. 35 (COUNTRYSIDE PHASE 2 SOUTH-FACILITIES).

That the City Council consider and:

A. Adopt a resolution of formation of Community Facilities District No. 63 (Olive and Oleander), authorizing the levy of special taxes within the community facilities district, and establishing an appropriations limit for the community facilities district; B. Adopt a resolution deeming it necessary to incur bonded indebtedness within Community Facilities District No. 63 (Olive and Oleander); C. Adopt a resolution calling a special election for City of Ontario Community Facilities District No. 63 (Olive and Oleander);
D. Adopt a resolution declaring the results of the special election and directing the recording of a Notice of Special Tax Lien;
E. Introduce and waive further reading of an ordinance levying special taxes within City of Ontario Community Facilities District No. 63 (Olive and Oleander); and F. Adopt a resolution authorizing the execution and delivery of an acquisition and funding agreement with Shea Homes Limited Partnership, a California limited partnership.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, OF CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 10 ATTACHMENT: 20220419 CFD No. 63 Olive and Oleander 01^RESO^Formation^RM ATTACHMENT: 20220419 CFD No. 63 Olive and Oleander^01A EXH B RMA ATTACHMENT: 20220419 CFD No. 63 Olive and Oleander 02^RESO Necessary to Incur^RM
ATTACHMENT: 20220419 CFD No. 63 Olive and Oleander 03^RESO Calling Special Election^RM
ATTACHMENT: 20220419 CFD No. 63 Olive and Oleander 04^RESO Declaring Election^RM
ATTACHMENT: 20220419 CFD No. 63 Olive and Oleander 05^ORD^RM

19. A PUBLIC HEARING TO CONSIDER A RESOLUTION APPROVING FILE NO. PSPA21-001, AN

AMENDMENT TO THE PIEMONTE OVERLAY OF THE ONTARIO CENTER SPECIFIC PLAN, INCLUDING: (1) REVISING THE OVERLAY BOUNDARY, ADDING APPROXIMATELY 24.9 ACRES OF LAND LOCATED AT 4000 ONTARIO CENTER PARKWAY, TO THE OVERLAY AREA; (2) CHANGING THE LAND USE DESIGNATION ON APPROXIMATELY 4.9 ACRES OF LAND

FROM OFFICE AND ENTERTAINMENT/RETAIL TO MIXED USE, WITHIN THE AREA BOUNDED

BY FOURTH STREET TO THE NORTH, CONCOURS STREET AND ONTARIO CENTER PARKWAY

TO THE SOUTH, VIA ALBA TO THE EAST, AND THE CAMDEN LANDMARK APARTMENTS AND VACANT LAND TO THE WEST; AND, (3) ESTABLISHING DEVELOPMENT STANDARDS AND

DESIGN GUIDELINES FOR THE MIXED USE LAND USE AREA OF THE PIEMONTE OVERLAY AT

ONTARIO CENTER SPECIFIC PLAN
FORMATION OF THE CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 63 (OLIVE AND OLEANDER), AUTHORIZING THE LEVY OF A SPECIAL TAX.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA,

DEEMING IT NECESSARY TO INCUR BONDED INDEBTEDNESS WITHIN CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 63 (OLIVE AND OLEANDER).

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA,

CALLING SPECIAL ELECTION FOR CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 63 (OLIVE AND OLEANDER).

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA,

DECLARING RESULTS OF SPECIAL ELECTION AND DIRECTING RECORDING OF

NOTICE OF SPECIAL TAX LIEN FOR CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 63 (OLIVE AND OLEANDER).

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, LEVYING SPECIAL TAXES WITHIN COMMUNITY FACILITY DISTRICT NO. 63 (OLIVE AND OLEANDER).

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA,

AUTHORIZING THE EXECUTION AND DELIVERY OF AN ACQUISITION AND FUNDING AGREEMENT WITH SHEA HOMES LP OF CALIFORNIA.

That the City Council consider and adopt Resolutions approving the following:

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 11 ATTACHMENT: 20220419 File No. PSPA21-001^01 Report Exhibits.docx ATTACHMENT: 20220419 File No. PSPA21-001^02 PC Backup.pdf ATTACHMENT: 20220419 File No. PSPA21-001^03 Addendum^RESO^RM ATTACHMENT: 20220419 File No. PSPA21-001^04 Addendum.pdf ATTACHMENT: 20220419 File No. PSPA21-001^05 Addendum-Traffic Impact Analysis.pdf
ATTACHMENT: 20220419 File No. PSPA21-001^06 Addendum-Air Quality and GHG.pdf ATTACHMENT: 20220419 File No. PSPA21-001^07 Addendum-Energy Conservation.pdf
ATTACHMENT: 20220419 File No. PSPA21-001^08 Addendum-Noise Impact Study.pdf ATTACHMENT: 20220419 File No. PSPA21-001^09 2016 Piemonte Overlay MND.pdf ATTACHMENT: 20220419 File No. PSPA21-001^10^SPA^RM
ATTACHMENT: 20220419 File No. PSPA21-001^11 Attach A SPA Document.pdf A. The use of an Addendum to the Ontario Center Environmental Impact Report (State Clearing House No. 89041009); and
B. File No. PSPA21-001, an amendment to the Piemonte Overlay of The Ontario Center Specific Plan: (1) adding approximately 24.9 acres of land to the overlay area; (2) changing the land use designation on approximately 4.9 acres of land from office and entertainment/retail to mixed use; and, (3) establishing development standards and design guidelines for the Mixed Use land use area.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA,

APPROVING AN ADDENDUM TO THE ONTARIO CENTER SPECIFIC PLAN

ENVIRONMENTAL IMPACT REPORT, PURSUANT TO THE REQUIREMENTS OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, AS AMENDED, FOR FILE NO PSPA21- 001.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PSPA21-001, AN AMENDMENT TO THE PIEMONTE OVERLAY AT THE ONTARIO CENTER SPECIFIC PLAN, [1] REVISING THE OVERLAY BOUNDARY TO ADD APPROXIMATELY 24.9 ACRES, COMPRISING OF THE PROPERTY LOCATED AT 4000 ONTARIO CENTER PARKWAY, TO THE OVERLAY AREA, [2] CHANGING THE LAND USE DESIGNATION ON APPROXIMATELY 4.9 ACRES OF LAND FROM OFFICE

AND ENTERTAINMENT/RETAIL TO MIXED-USE, IN AN AREA BOUNDED BY FOURTH

STREET TO THE NORTH, CONCOURS STREET AND ONTARIO CENTER PARKWAY TO

THE SOUTH, VIA ALBA TO THE EAST, AND THE CAMDEN LANDMARK APARTMENTS AND VACANT LAND TO THE WEST, [3] ESTABLISH DEVELOPMENT STANDARDS AND

DESIGN GUIDELINES FOR THE MIXED-USE LAND USE AREA WITHIN THE PIEMONTE

OVERLAY AT ONTARIO CENTER SPECIFIC PLAN, AND MAKING FINDINGS IN SUPPORT THEREOF—APNS: 0210-204-12, 0210-204-13, 0210-204-14, 0210-204-15, 0210-204-17, 0210-204-18, 0210-204-20, 0210-204-21, 0210-204-22, 0210-204-23, 0210-204-23, 0210-204-24, 0210-204-25, 0210-204-26, 0210-204-28, 0210-204-36, 0210-204-37, 0210-204-37, 0210-204-38, 0210-204-39, 0210-204-40, 0210-204-41, 0210-531-06, 0210-531-07, 0210-531-08, 0210-531-09, 0210-531-10, 0210-231-11, 0210-231-12, 0210-231-13, 0210-231-14, 0210-231-15, 0210-231-16, 0210-205-01.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 12 20. A PUBLIC HEARING TO CONSIDER FILE NO. PCUP21-009, A CONDITIONAL USE PERMIT TO ESTABLISH A 128-ROOM LIMITED-SERVICE HOTEL ON 1.83 ACRES OF LAND LOCATED AT 5060 EAST FOURTH STREET, WITHIN THE FREEWAY COMMERCIAL LAND USE DISTRICT OF THE EXCHANGE SPECIFIC PLAN (APN: 0238-012-30)
ATTACHMENT: 20220419 File No. PCUP21-009 Extended Stay Hotel^01 PC BACKUP.pdf
ATTACHMENT: 20220405 File No. PCUP21-009 Extended Stay Hotel 02 RESO^RM ATTACHMENT: 20220419 File No. PCUP21-009 Extended Stay Hotel^03 RES ATTACHMENT.pdf

21. A RESOLUTION AUTHORIZING THE ISSUANCE OF CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 54 (ESPERANZA FACILITIES) SPECIAL TAX BONDS, SERIES 2022, IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $8 MILLION AND RELATED MATTERS That the City Council consider and adopt a Resolution approving the Conditional Use Permit, File No. PCUP21-009, establishing a 128-room limited-service hotel located at 5060 East Fourth Street.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PCUP21-009, A CONDITIONAL USE PERMIT TO ESTABLISH AND OPERATE A 128-ROOM LIMITED-SERVICE HOTEL ON 1.83 ACRES OF LAND LOCATED AT 5060 EAST FOURTH STREET, WITHIN THE FREEWAY COMMERCIAL

LAND USE DISTRICT OF THE EXCHANGE SPECIFIC PLAN AND MAKING FINDINGS IN SUPPORT THEREOF - APN: 0238-012-30.

ADMINISTRATIVE REPORTS/DISCUSSION/ACTION
That the City Council consider and adopt a Resolution authorizing the issuance of City of Ontario Community Facilities District No. 54 (Esperanza Facilities) Special Tax Bonds, Series 2022.

A. Authorize the issuance of special tax bonds for public improvements required to facilitate the development of the Esperanza Facilities project and the Ontario Ranch development;
B. Approve the forms of the Indenture, the Bond Purchase Agreement, the Continuing Disclosure Agreement, and the Preliminary Official Statement; C. Authorize a negotiated sale of the special tax bonds to Stifel, Nicolaus & Company, Incorporated (the "Underwriter") in accordance with the terms of the Bond Purchase Agreement; and
D. Authorize the execution of the Indenture, the Bond Purchase Agreement, the Continuing Disclosure Agreement, a deemed final certification in connection with the Preliminary Official Statement, a final Official Statement and other documents in connection with the issuance of the bonds by the City Manager or the other specified authorized officers.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 13 ATTACHMENT: 20220419 CFD No. 54 Esperanza Facilities^01^RESO Authorizing Issuance of Bonds^RM
ATTACHMENT: 20220419 CFD No. 54 Esperanza Facilities^02 Indenture.doc ATTACHMENT: 20220419 CFD No. 54 Esperanza Facilities^03 Bond Purchase Agreement
ATTACHMENT: 20220419 CFD No. 54 Esperanza Facilities^04 Continuing Disclosure Agreement.doc
ATTACHMENT: 20220419 CFD No. 54 Esperanza Facilities^05 Preliminary Official Statement.docx

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA,

AUTHORIZING THE ISSUANCE OF CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 54 (ESPERANZA FACILITIES) SPECIAL TAX BONDS, SERIES 2022, IN AN AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $8,000,000.00,

AUTHORIZING THE EXECUTION AND DELIVERY OF AN INDENTURE, A BOND

PURCHASE AGREEMENT, AND A CONTINUING DISCLOSURE AGREEMENT,

AUTHORIZING THE DISTRIBUTION OF AN OFFICIAL STATEMENT IN CONNECTION

THEREWITH AND AUTHORIZING THE EXECUTION OF NECESSARY DOCUMENTS AND CERTIFICATES AND RELATED ACTIONS.

STAFF MATTERS
City Manager Ochoa

COUNCIL MATTERS
Mayor Leon
Mayor Pro tem Wapner
Council Member Bowman
Council Member Dorst-Porada
Council Member Valencia

ADJOURNMENT
CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 14

Page 1 of 1 ends

CITY OF ONTARIO

CLOSED SESSION REPORT
City Council // Housing Authority // Other // (GC 54957.1) April 19, 2022
ROLL CALL: Wapner _, Bowman _, Dorst-Porada _, Valencia _, Mayor / Chairman Leon _.

STAFF: City Manager / Executive Director __, City Attorney __ In attendance: Wapner _, Bowman _, Dorst-Porada _,Valencia _, Mayor / Chairman Leon _.  GC 54956.9 (d)(1), CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION Wendie Rios v. City of Ontario et al., Superior Court of California, County of San Bernardino Case No: CIVDS1828142
No Reportable Action Continue Approved
/ / / / / /
Disposition: _________________________________________________________________ In attendance: Wapner _, Bowman _, Dorst-Porada _,Valencia _, Mayor / Chairman Leon _.  GC 54956.8 CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: APN:
1048-562-01; 215 West C Street; City/Authority negotiator: Scott Ochoa, City Manager or his designee; Negotiating parties: United Christian Church of Hacienda Heights; Under negotiation: Price and Terms of Payment
No Reportable Action Continue Approved
/ / / / / /
Disposition: _________________________________________________________________ Reported by:
___________________________________________
City Attorney / City Manager / Executive Director
15 ONTARIO CITY COUNCIL/

ONTARIO HOUSING AUTHORITY

MINUTES
MARCH 15, 2022
(Not official until approved)

JOINT MEETINGS
The regular meetings of the Ontario City Council and Housing Authority were held on Tuesday, March 15, 2022 at Ontario City Hall 303 E. B Street Ontario, California.

CALL TO ORDER
Mayor Leon called the Joint City Council and Ontario Housing Authority meetings to order at 6:32 p.m.

ROLL CALL
PRESENT: Mayor/Chairman Paul S. Leon
Mayor pro Tem/Vice Chair Alan D. Wapner
Council/Authority Members: Jim W. Bowman, Debra Dorst-Porada and Ruben Valencia
ABSENT: Council/Authority Members: None
Also present were City Manager / Executive Director Scott Ochoa, City Attorney/Legal Counsel Ruben Duran, and City Clerk/Secretary Sheila Mautz.

PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Council Member Bowman.

INVOCATION
The Invocation was led by Pastor Brian Chen, Great Commission Church.

Mayor Leon announced the City was successful in getting a $50,000 reward from the Governor’s Office for the Jesus Sanchez homicide case.

PUBLIC COMMENTS
Two emailed comments were entered into the record as follows:

Item No. 12 written communications in opposition:

Aileen Ramos
Alexis Moreno
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April Zazueta
Bianca Ruddy
Britney Becker
Christine Bennett
Cindy Ott
Delia Velez
Katia Hermosillo
Marisela Gutierrez
Matthew Waters
Miranda Delprino
Pollakriss Samuerphak
Stephanie Baker
Yesenia Zambrano
Item No. 14 Richard Barba in opposition.

Mayor Leon called upon the first speaker:

Armando Rodriguez, with the Ontario Hispanic Chamber of Commerce, invited City Council to upcoming events.

Randy Bekendem, spoke in support of keeping farmland in Ontario.

Lauren Bridges, spoke in opposition of warehouses.

Maria Raumaldo, requested support from residents in solving the Jesus Sanchez case.

Cassandra Sanchez, requested support from residents in solving the Jesus Sanchez case.

Margarita Leon, requested support from residents in solving the Jesus Sanchez case.

Stephanie Martinez, requested support from residents in solving the Jesus Sanchez case.

Damaris Lopez, requested support from residents in solving the Jesus Sanchez case.

Jesse Fonseca, spoke about the Ontario International Airport Authority finances.

AGENDA REVIEW/ANNOUNCEMENTS
City Manager Ochoa made no announcements.
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CONSENT CALENDAR
MOTION: Moved by Council Member Dorst-Porada, seconded by Council Member Bowman and carried by unanimous vote 5-0, to approve the Consent Calendar as presented, with the exception of Item No. 14.

1. APPROVAL OF MINUTES
The City Council approved minutes for the regular meetings of the City Council and Housing Authority of February 15, 2022, approving the same as on file in the Records Management Department.

2. BILLS & PAYROLL
Approved Bills from February 11, 2022 through February 24, 2022 in the amount of $16,876,220.20 and Payroll February 11, 2022 through February 24, 2022 in the amount of $7,421,388.15, when audited by the Finance Committee.

3. ACCEPT A WRITTEN PETITION REQUESTING COMMENCEMENT OF CHANGE

PROCEEDINGS TO CHANGE THE RATE AND METHOD OF APPORTIONMENT (RMA) OF THE EXISTING SPECIAL TAX OF CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 35 (COUNTRYSIDE PHASE 2 SOUTH-FACILITIES);

ADOPT A RESOLUTION OF CONSIDERATION TO CHANGE THE RMA OF THE

EXISTING SPECIAL TAX AND ACCEPT A WRITTEN PETITION REQUESTING

TO INCREASE THE MAXIMUM AGGREGATE AMOUNT OF BONDED
INDEBTEDNESS OF COMMUNITY FACILITIES DISTRICT NO. 35
(COUNTRYSIDE PHASE 2 SOUTH-FACILITIES) THAT IS AUTHORIZED TO INCUR TO $42,000,000; ADOPT A RESOLUTION OF INTENTION TO AMEND RESOLUTION NO. 2017-124 IN ORDER TO INCREASE THE MAXIMUM

AGGREGATE AMOUNT OF BONDED INDEBTEDNESS
The City Council considered and:

A. Accepted a written petition requesting commencement of change proceedings from Lennar Homes of California, LLC (“Lennar”), to consider a change to the Rate and Method of Apportionment of the existing special tax of the City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South-Facilities) (the “CFD”) and waived certain procedural matters, under the Mello-Roos Community Facilities Act of 1982 (the “Act”); B. Adopted a Resolution of Consideration to change the Rate and Method of Apportionment of the existing special tax of the CFD and set a public hearing on such proposed change as part of the regularly scheduled City Council meeting on Tuesday, April 19, 2022; and
C. Accepted a written petition requesting commencement of proceedings from Lennar to increase the maximum aggregate amount of bonded indebtedness that the CFD is authorized to incur to $42,000,000 and waive certain procedural matters, under the Act; and
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D. Adopted a Resolution of Intention to amend Resolution No. 2017-124 in order to increase the maximum aggregate amount of bonded indebtedness that the CFD is authorized to incur and set a public hearing on such proposed increase as part of the regularly scheduled City Council meeting on Tuesday, April 19, 2022.

RESOLUTION NO. 2022-017 A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ONTARIO, CALIFORNIA, OF CONSIDERATION TO CHANGE THE RATE

AND METHOD OF APPORTIONMENT OF THE EXISTING SPECIAL TAX OF CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 35 (COUNTRYSIDE PHASE 2 SOUTH - FACILITIES).

RESOLUTION NO. 2022-018 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, OF INTENTION TO AMEND RESOLUTON NO. 2017-124 IN ORDER TO INCREASE THE MAXIMUM AGGREGATE AMOUNT OF

BONDED INDEBTEDNESS THAT CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 35 (COUNTRYSIDE PHASE 2 SOUTH - FACILITIES) IS AUTHORIZED TO INCUR.

4. ACCEPTANCE OF A WRITTEN PETITION TO CREATE A COMMUNITY FACILITIES DISTRICT; A RESOLUTION OF INTENTION TO ESTABLISH CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 63 (OLIVE AND OLEANDER FACILITIES) AND TO AUTHORIZE THE LEVY OF SPECIAL TAXES;

AND A RESOLUTION TO INCUR BONDED INDEBTEDNESS
The City Council considered and:

A. Accepted a written petition from Shea Homes Limited Partnership, to create a Community Facilities District, and to waive certain procedural matters under the Mello-Roos Community Facilities Act of 1982;
B. Adopted a Resolution of Intention to establish City of Ontario Community Facilities District No. 63 (Olive and Oleander Facilities) (the "CFD") and authorized the associated levy of special taxes therein; and set a public hearing for the formation of the CFD as part of the regularly scheduled City Council meeting on Tuesday, April 19, 2022; and
C. Adopted a Resolution to Incur Bonded Indebtedness of proposed Community Facilities District No. 63 (Olive and Oleander Facilities) RESOLUTION NO. 2022-019 A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ONTARIO, CALIFORNIA, OF INTENTION TO ESTABLISH A

COMMUNITY FACILITIES DISTRICT, PROPOSED TO BE NAMED CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 63 (OLIVE AND OLEANDER FACILITIES), AND TO AUTHORIZE THE LEVY OF SPECIAL TAXES.

RESOLUTION NO. 2022-020 A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ONTARIO, CALIFORNIA, TO INCUR BONDED INDEBTEDNESS OF THE 19 Ontario City Council/Ontario Housing
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Page 5 of 11 ends

PROPOSED CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 63 (OLIVE AND OLEANDER FACILITIES).

5. AN AMENDMENT TO THE GOODS AND SERVICES AGREEMENT WITH MYERS & SONS HI-WAY SAFETY INC. FOR PROCUREMENT OF TRAFFIC CONTROL

DEVICES AND MATERIALS
The City Council approved and authorized the City Manager to execute Amendment No. 2 to the Goods and Services Agreement with Myers & Sons Hi-Way Safety Inc. of Chino, California, for procurement of traffic control devices and materials in the amount of $25,000, for a revised not to exceed amount of $196,000.

6. AUTHORIZE A SOLE SOURCE VENDOR TO PROVIDE A CUSTOM DESIGNED

FIREWORKS SHOW FOR THE ANNUAL INDEPENDENCE DAY CELEBRATION The City Council authorized and approved a sole source vendor to provide a pyrotechnic custom designed fireworks show for the annual Independence Day celebration.

7. PRE-AUTHORIZED LIST OF VENDORS TO PROVIDE SPECIALIZED

EQUIPMENT, SERVICES, AND TRAINING FOR THE POLICE DEPARTMENT The City Council approved a list of pre-authorized vendors to provide Specialized Equipment, services, and training for the Ontario Police Department.

8. AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH

HARRIS AND ASSOCIATES FOR ON-CALL ENGINEERING PLAN CHECK

SERVICES
The City Council approved an Amendment to the Professional Services Agreement with Harris and Associates, of Irvine, California, to provide on-call Plan Checking Services for a revised total annual authorized expenditure of $2,600,000 in FY2021-22 and $2,080,000 in FY2022-23, with a revised overall contract not-to-exceed amount of $5,400,000.

9. 2021 GENERAL PLAN ANNUAL PROGRESS REPORT AND 2021 HOUSING

ELEMENT ANNUAL PROGRESS REPORT
The City Council considered and adopted a Resolution authorizing Staff to transmit the 2021 General Plan Annual Performance Report, which includes the 2021 Housing Element Annual Progress Report, to the California Department of Housing and Community Development and the Governor's Office of Planning and Research.

RESOLUTION NO. 2022-021 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING THE 2021 GENERAL PLAN ANNUAL PROGRESS REPORT (FILE NO. PADV22-001), WHICH INCLUDES THE

HOUSING ELEMENT ANNUAL PROGRESS REPORT, AND AUTHORIZING 20 Ontario City Council/Ontario Housing
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Page 6 of 11 ends

STAFF TO SUBMIT THE REPORTS TO THE CALIFORNIA DEPARTMENT OF

HOUSING AND COMMUNITY DEVELOPMENT AND THE GOVERNOR'S OFFICE OF PLANNING AND RESEARCH.

10. A RESOLUTION OPPOSING INITIATIVE 21-0042A.

The City Council adopted a Resolution to Oppose Initiative 21-0042A.

RESOLUTION NO. 2022-022 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, OPPOSING INITIATIVE 21-0042A, A

TAXPAYER PROTECTION AND GOVERNMENT ACCOUNTABILITY ACT FILED BY THE CALIFORNIA BUSINESS ROUNDTABLE.

11. ORDINANCES APPROVING A ZONE CHANGE (FILE NO. PZC21-002) MODIFYING THE OFFICIAL ZONING MAP TO ESTABLISH AN "AH"
(AFFORDABLE HOUSING) OVERLAY ZONING DISTRICT AND A
DEVELOPMENT CODE AMENDMENT (FILE NO. PDCA21-001) REVISING SECTION 6.01.035 FOR THE PURPOSE OF ADDING PROVISIONS TO ESTABLISH AN "AH" (AFFORDABLE HOUSING) OVERLAY DISTRICT The City Council considered and adopted the following:

A. An Ordinance approving a Zone Change, File No. PZC21-002, revising the Zoning Map to establish the "AH" (Affordable Housing) Overlay zoning district; and
B. An Ordinance approving a Development Code Amendment, File No.

PDCA21-001, adding a provision to establish the "AH" (Affordable Housing) Overlay zoning district.

Introduction of the Ordinances below took place at a regular meeting of the City Council on March 1, 2022.

ORDINANCE NO. 3204 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PZC21-002, A ZONE

CHANGE TO MODIFY THE ZONING MAP TO ESTABLISH THE AH
(AFFORDABLE HOUSING) ZONING OVERLAY DISTRICT, AND MAKING FINDINGS IN SUPPORT THEREOF.

ORDINANCE NO. 3205 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PDCA21-001, A DEVELOPMENT CODE AMENDMENT REVISING SECTION 6.01.035, ADDING

PROVISIONS TO ESTABLISH THE AH (AFFORDABLE HOUSING) OVERLAY DISTRICT, AND MAKING FINDINGS IN SUPPORT THEREOF.
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12. AN ORDINANCE ADOPTING THE SOUTH ONTARIO LOGISTICS CENTER SPECIFIC PLAN (FILE NO. PSP19-001), ESTABLISHING THE LAND USE

DISTRICTS, DEVELOPMENT STANDARDS, DESIGN GUIDELINES, AND

INFRASTRUCTURE IMPROVEMENTS FOR THE POTENTIAL DEVELOPMENT OF UP TO 5,333,518 SQUARE FEET OF INDUSTRIAL AND BUSINESS PARK LAND USES. THE PROJECT SITE IS BORDERED BY EUCALYPTUS AVENUE

ON THE NORTH, MERRILL AVENUE ON THE SOUTH, EXISTING

RIGHT-OF-WAY FOR THE FUTURE CAMPUS AVENUE EXTENSION ON THE WEST, AND GROVE AVENUE ON THE EAST (APNS: 1054-071-01, 1054-071-02, 1054-081-03, 1054-091-01, 1054-091-02, 1054-101-01, 1054-101-02, 1054-231-01, 1054-231-02, 1054-241-01, 1054-241-02, 1054-321-01, 1054-321-02, 1054-311-01, 1054-311-02, 1054-051-01, 1054-051-02, 1054-061-01, 1054-061-02, 1054-251-01, 1054-251-02, 1054-301-01, AND 1054-301-02
The City Council considered and approved the Ordinance adopting the South Ontario Logistics Center Specific Plan (File No. PSP19-001). Introduction took place at a regular meeting of the City Council on March 1, 2022.

ORDINANCE NO. 3206 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PSP19-001, THE SOUTH

ONTARIO LOGISTICS CENTER SPECIFIC PLAN, TO ESTABLISH LAND USE

DISTRICTS, DEVELOPMENT STANDARDS, DESIGN GUIDELINES, AND

INFRASTRUCTURE IMPROVEMENTS FOR THE POTENTIAL DEVELOPMENT OF UP TO 5,333,518 SQUARE FEET OF INDUSTRIAL AND BUSINESS PARK LAND USES ON 219.39 ACRES OF LAND GENERALLY BORDERED BY

EUCALYPTUS AVENUE ON THE NORTH, MERRILL AVENUE ON THE SOUTH,

GROVE AVENUE ON THE EAST, AND CAMPUS AVENUE ON THE WEST, AND MAKING FINDINGS IN SUPPORT THEREOF—APNS: 1054-071-01, 1054-071-02, 1054-081-03, 1054-091-01, 1054-091-02, 1054-101-01, 1054-101-02, 1054-231-01, 1054-231-02, 1054-241-01, 1054-241-02, 1054-321-01, 1054-321-02, 1054-311-01, 1054-311-02, 1054-051-01, 1054-051-02, 1054-061-01, 1054-061-02, 1054-251-01, 1054-251-02, 1054-301-01, AND 1054-301-02.

13. AMENDMENT TO AN ARCHITECTURAL SERVICES AGREEMENT WITH HOLT ARCHITECTS, INC. FOR THE POLICE DEPARTMENT HEADQUARTERS

IMPROVEMENT PROJECT
The City Council authorized the City Manager to execute an amendment to the existing Architectural Services Agreement with Holt Architects, Inc. of Riverside California for the Police Department Headquarters Improvement Project in the amount of $91,436 for a total contract value of $230,822. The Architectural Services Agreement and proposed amendment are on file with the Records Management Department.

ITEMS PULLED FROM THE AGENDA: Council Member Valencia pulled Item No. 14 for a separate discussion.
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14. REQUEST BY FOGLESONG TOWING & STORAGE INC. FOR THE ONTARIO

CITY COUNCIL'S CONSENT TO TRANSFER ITS TOWING CONTRACT TO BENDITO CIELO, INC.

Council Member Valencia asked the City Attorney if Mayor Leon should recuse himself from the item.

Mayor Leon stated he had no conflict and called upon Laura Acosta to speak.

Public Comment:

Laura Acosta, introduced herself as the owner of Bendito Cielo, gave a brief background on her experience, and thanked Council for their consideration.

MOTION: Moved by Council Member Dorst-Porada, seconded by Council Member Bowman and carried by a vote of 4-1-0, with Council Member Valencia in opposition, to approve Foglesong Towing & Storage, Inc.’s request to transfer its towing contract to Bendito Cielo, Inc.

PUBLIC HEARINGS

15. A PUBLIC HEARING TO CONSIDER AN APPEAL OF THE PLANNING

COMMISSION'S DECISION TO APPROVE THE USE OF AN ADDENDUM TO

THE ONTARIO PLAN ENVIRONMENTAL IMPACT REPORT (STATE
CLEARINGHOUSE NO. 2008101140), A TENTATIVE PARCEL MAP NO. 20147 (FILE NO. PMTT21-010), SUBDIVIDING 95.35 ACRES OF LAND INTO THREE PARCELS, AND A DEVELOPMENT PLAN (FILE NO. PDEV21-018) TO CONSTRUCT TWO INDUSTRIAL BUILDINGS TOTALING 168,722 SQUARE FEET ON 13.07 ACRES OF LAND GENERALLY LOCATED AT THE
SOUTHEAST CORNER OF JURUPA STREET AND MILLIKEN AVENUE, AT 1425

SOUTH TOYOTA WAY, WITHIN THE INDUSTRIAL MIXED USE AND

WAREHOUSE/DISTRIBUTION LAND USE DISTRICTS OF THE TOYOTA ONTARIO BUSINESS PARK SPECIFIC PLAN (APN: 0238-121-75).

The City Council considered and adopted Resolutions upholding the Planning Commission's approval of the use of an Addendum to The Ontario Plan Environmental Impact Report (State Clearinghouse No. 2008101140), Tentative Parcel Map No. 20147 (File No. PMTT21-010) and Development Plan (File No.

PDEV21-018), and denied the appeal.

RESOLUTION NO. 2022-023 A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ONTARIO, CALIFORNIA, DENYING THE APPEAL OF THE PLANNING COMMISSION’S DECISION TO APPROVE THE USE OF AN ADDENDUM TO THE

ONTARIO PLAN ENVIRONMENTAL IMPACT REPORT PURSUANT TO THE 23 Ontario City Council/Ontario Housing
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Page 9 of 11 ends

REQUIREMENTS OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, AS AMENDED, FOR FILE NOS. PMTT21-010 AND PDEV21-018.

RESOLUTION NO. 2022-024 A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ONTARIO, CALIFORNIA, DENYING THE APPEAL OF THE PLANNING COMMISSION’S DECISION TO APPROVE TENTATIVE PARCEL MAP NO. 20147 (FILE NO. PMTT21-010), SUBDIVIDING 95.35 ACRES OF LAND INTO THREE

PARCELS TO FACILITATE THE DEVELOPMENT OF TWO INDUSTRIAL

BUILDINGS AND ASSOCIATED SITE IMPROVEMENTS, AND MAKING FINDINGS IN SUPPORT THEREOF—APN: 0238-121-75.

RESOLUTION NO. 2022-025 A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ONTARIO, CALIFORNIA, DENYING THE APPEAL OF THE PLANNING COMMISSION’S DECISION TO APPROVE FILE NO. PDEV21-018, A

DEVELOPMENT PLAN TO CONSTRUCT TWO INDUSTRIAL BUILDINGS
TOTALING 168,772 SQUARE FEET AND ASSOCIATED SITE IMPROVEMENTS ON 13.07 ACRES OF LAND LOCATED AT THE SOUTHEAST CORNER OF JURUPA STREET AND MILLIKEN AVENUE, AT 1425 SOUTH TOYOTA WAY, AND MAKING FINDINGS IN SUPPORT THEREOF—APN: 0238-121-75.

Notice of public hearing has been duly given and affidavits of compliance are on file in the Records Management Department.

There were two written communications from Amalia Bowley who wrote in opposition.

Mayor Leon opened the public hearing asking those persons interested in this item to speak.

Amalia Bowley, spoke in opposition to the item.

City Attorney Duran indicated that counsel reviewed the points raised by Ms.

Bowley and she did not properly present before the Council for an appeal. He also stated that the cited cases do not apply andrecommended she review CEQA guidelines. City Attorney Duran noted there were no appeals before the Planning Commission, as a result the Council does not have a basis to grant the appeal.

Hearing no one else wishing to speak, Mayor Leon opened the item for Council discussion and closed the public hearing.

MOTION: Moved by Council Member Wapner, seconded by Council Member Dorst Porada and carried by unanimous vote of 5-0 to uphold the Planning Commission’s decision and adopting Resolution Nos. 2022-023, 2022-024, and 2022-025. 24 Ontario City Council/Ontario Housing
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16. A PUBLIC HEARING TO CONSIDER THE ARTS DISTRICT WEST PLANNED UNIT DEVELOPMENT (FILE NO. PUD22-001), ESTABLISHING DEVELOPMENT

STANDARDS, DESIGN GUIDELINES AND INFRASTRUCTURE

REQUIREMENTS TO FACILITATE A COMMERCIAL DEVELOPMENT ON

0.86-ACRE OF LAND LOCATED AT 125 WEST EMPORIA STREET, WITHIN THE MU-1/LUA-2N (DOWNTOWN MIXED-USE/ARTS DISTRICT - NORTH) AND EA (EUCLID AVENUE OVERLAY) ZONING DISTRICTS (APN: 1049-059-14) The City Council considered and waived further reading of an ordinance approving the Arts District West Planned Unit Development, File No. PUD22-001, establishing development standards, design guidelines, and infrastructure requirements to facilitate a commercial development at 125 West Emporia Street.

ORDINANCE NO. 3207 (FIRST READING) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO.

PUD22-001, THE ARTS DISTRICT WEST PLANNED UNIT DEVELOPMENT,

ESTABLISHING DEVELOPMENT STANDARDS, DESIGN GUIDELINES, AND INFRASTRUCTURE REQUIREMENTS FOR 0.86-ACRE OF LAND LOCATED AT 125 WEST EMPORIA STREET, WITHIN MU-1/LUA-2N (DOWNTOWN MIXEDUSE/ARTS DISTRICT – NORTH) AND EA (EUCLID AVENUE OVERLAY) ZONING DISTRICTS, AND MAKING FINDINGS IN SUPPORT THEREOF—APN: 1049-059-

14. Notice of public hearing has been duly given and affidavits of compliance are on file in the Records Management Department. There were no written communications.

Mayor Leon opened the public hearing asking those persons interested in this item to speak. Hearing no one wishing to speak, Mayor Leon opened the item for Council discussion, after which he closed the public hearing.

MOTION: Moved by Council Member Bowman seconded by Council Member Dorst-Porada and carried by unanimous vote to introduce Ordinance No. 3207.

STAFF MATTERS
City Manager Ochoa made no comments.

COUNCIL MATTERS
Council Member Valencia thanked Council Member Dorst-Porada and Assembly Member Freddie Rodriguez who authored a letter to Governor Newsom requesting additional reward funds to solve the Jesus Sanchez case.

Council Member Bowman noted he attended Top Golf’s Grand Opening and expressed his gratitude for all participating partners.
25 Ontario City Council/Ontario Housing
Regular Meeting Minutes – March 15, 2022

Page 11 of 11 ends

Mayor pro Tem Wapner spoke on his father-in-law, Alejo Vasquez’s passing and asked if the meeting could be adjourned in his memory.

Council Member Dorst-Porada thanked staff for their work on the Robert Lynn Nelson reception and show.

Mayor Leon expressed his condolences to the Ovitt family due to Leah Dingman’s passing and added the meeting would also be adjourned in her memory.

ADJOURNMENT
Mayor Leon adjourned the meetings of the Joint Agencies at 7:31 p.m. in memory of Alejo Vasquez and Leah Dingman and announced the next regular meeting to be held on Tuesday, April 5, 2022.

Respectfully submitted,
____________________________________

SHEILA MAUTZ, CITY CLERK/SECRETARY
APPROVED:
________________________________________________
PAUL S. LEON, MAYOR/CHAIRMAN
26 Department: Engineering
Prepared By: Tricia Espinoza
Department: Engineering
Prepared By: Craig Cruz
Staff Member Presenting:

Scott Murphy, Executive Director Community
Development
Reviewed By: Khoi Do
Approved By:

UTILITY PURPOSES OVER A PORTION OF CITY-OWNED PARCELS AT BUDD STREET

AND FERN AVENUE, MAITLAND STREET AND BON VIEW AVENUE, AND WALNUT

STREET AND CAMPUS AVENUE

CITY OF ONTARIO
Agenda Report
April 19, 2022
SECTION:

CONSENT CALENDAR
RECOMMENDATION: That the City Council consider and adopt three Resolutions dedicating rightof-way easements for public road and utility purposes over a portion of City-owned parcels at Budd Street and Fern Avenue (APN: 1050-051-31, 32, 33), Maitland Street and Bon View Avenue (APN:
1049-451-01, 02, 24), and Walnut Street and Campus Avenue (APN: 1051-381-06); and authorize the City Manager or his designee to execute the easement deeds.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Focus Resources in Ontario's Commercial and Residential Neighborhoods Invest in the City's Infrastructure (Water, Streets, Sewers, Parks, Storm Drains and Public Facilities)
FISCAL IMPACT: There is no direct fiscal impact associated with this action. Costs associated with the preparation of the legal documents are included in the approved project budgets.

BACKGROUND & ANALYSIS: State law generally requires public streets to be within rights-of-way that have been dedicated for public road and utility purposes. These right-of-way transactions are related to Active Transportation Program (ATP) and traffic projects in various stages of construction.

The City owns parcels of land at the northeast corner of Budd Street and Fern Avenue (De Anza Park, Community & Teen Center); the southwest corner of Maitland Street and Bon View Avenue (Bon View Park); and the southeast corner of Walnut Street and Campus Avenue (Kimball Community Park), over which street improvements, including curb, sidewalk and landscaping currently exist. However, these existing street improvements were built within the parcel’s boundaries rather than upon dedicated public rights-of-way. It is in the City’s best interest to 27 dedicate affected portions of these parcels for roadway purposes. The current uses on the parcels will neither change nor be impacted by the dedication.

Portions of the City-owned properties will be dedicated as right-of-way easements as shown in Exhibits 1-3 and set forth in the proposed Resolutions. The Resolutions authorize the execution of an easement deed that will ensure that San Bernardino County assessor maps will be updated to reflect the City’s ultimate right-of-way needs.

The easement deeds have been reviewed and approved as to form by the City Attorney. 28 ℄
℄
℄ 30'

BUDD STREET FERN AVENUE
EXHIBIT 1
1" = 120'
LEGEND

AREA TO BE DEDICATED FOR PUBLIC

ROAD AND PUBLIC UTILITY PURPOSES
29 33' MAITLAND STREET BON VIEW AVENUE ℄
℄
EXHIBIT 2
1" = 100'
LEGEND

AREA TO BE DEDICATED FOR PUBLIC

ROAD AND PUBLIC UTILITY PURPOSES
30 WALNUT STREET
℄ CAMPUS AVENUE
℄
25' 11'
EXHIBIT 3
1" = 100'
LEGEND

AREA TO BE DEDICATED FOR PUBLIC

ROAD AND PUBLIC UTILITY PURPOSES
31 RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO,

CALIFORNIA, DEDICATING A RIGHT-OF-WAY EASEMENT FOR
PUBLIC ROAD AND UTILITY PURPOSES OVER A PORTION OF CITYOWNED PARCELS (DE ANZA PARK, COMMUNITY & TEEN CENTER) AT BUDD STREET AND FERN AVENUE – APN: 1050-051-31, 32, 33.

WHEREAS, in accordance with the City’s Master Plan of Streets and Highways, the existing City owned street at the northeast corner of parcels (APN: 1050-051-31, 32, 33) along Budd Street and Fern Avenue requires additional public street right-of-way width; and
WHEREAS, the City has all rights, title and interest to the parcels situated on the northeast corner of Budd Street and Fern Avenue as depicted on Exhibits “A” and “B” of the easement deed, from which necessary street right-of-way can be provided; and WHEREAS, under state law, in order to improve a public road, the law generally requires a right-of-way dedication of property by its owner and acceptance by the City; and
WHEREAS, the City now seeks to dedicate a portion of said City-owned corner parcel as a right-of-way and utility easement; and
WHEREAS, the City Council now seeks to approve the use of the City’s property for this desired purpose in order to achieve the ultimate right-of-way required to accommodate City’s long-term transportation needs.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Ontario, California:

1. The City Council of the City of Ontario hereby dedicates as an easement for public road and utility purposes, the property as depicted in the attached easement deed.

2. The City Clerk shall cause the attached easement deeds, attested by the City Clerk under seal, to be executed and recorded in the office of the recorder of the County of San Bernardino. An additional purpose for the easement deed is to ensure that future County assessor maps reflect this new expanded right-of-way dedicated for roadway and utility purposes.

3. The City Manager is authorized to execute the attached easement deed for the purposes stated herein.

The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.
32 PASSED, APPROVED AND ADOPTED this 19th day of April 2022. ___________________________________
PAUL S. LEON, MAYOR
ATTEST:
______________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO LEGAL FORM:
_______________________________

BEST, BEST & KREIGER, LLP

CITY ATTORNEY
33 STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

CITY OF ONTARIO )
I, SHEILA MAUTZ, City Clerk of the City of Ontario, DO HEREBY CERTIFY that foregoing Resolution No. 2022- was duly passed and adopted by the City Council of the City of Ontario at their regular meeting held April 19, 2022 by the following roll call vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
The foregoing is the original of Resolution No. 2022- duly passed and adopted by the Ontario City Council at their regular meeting held April 19, 2022. _____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
34 35
36 37
RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO,

CALIFORNIA, DEDICATING A RIGHT-OF-WAY EASEMENT FOR
PUBLIC ROAD AND UTILITY PURPOSES OVER A PORTION OF CITYOWNED PARCELS (BON VIEW PARK) AT MAITLAND STREET AND BON VIEW AVENUE – APN: 1049-451-01, 02, 24.

WHEREAS, in accordance with the City’s Master Plan of Streets and Highways, the existing City owned street at the southwest corner of parcels (APN: 1049-451-01, 02, 24) along Maitland Street and Bon View Avenue requires additional public street right-of-way width; and
WHEREAS, the City has all rights, title and interest to the parcels situated on the southwest corner of Maitland Street and Bon View Avenue as depicted on Exhibits “A” and “B” of the easement deed, from which necessary street right-of-way can be provided; and
WHEREAS, under state law, in order to improve a public road, the law generally requires a right-of-way dedication of property by its owner and acceptance by the City; and
WHEREAS, the City now seeks to dedicate a portion of said City-owned corner parcel as a right-of-way and utility easement; and
WHEREAS, the City Council now seeks to approve the use of the City’s property for this desired purpose in order to achieve the ultimate right-of-way required to accommodate City’s long-term transportation needs.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Ontario, California:

1. The City Council of the City of Ontario hereby dedicates as an easement for public road and utility purposes, the property as depicted in the attached easement deed.

3. The City Manager is authorized to execute the attached easement deed for the purposes stated herein.

The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.
38 PASSED, APPROVED AND ADOPTED this 19th day of April 2022. ___________________________________
PAUL S. LEON, MAYOR
ATTEST:
______________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO LEGAL FORM:
_______________________________

BEST, BEST & KREIGER, LLP

CITY ATTORNEY
39 STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
40 41
42 43
RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO,

CALIFORNIA, DEDICATING A RIGHT-OF-WAY EASEMENT FOR
PUBLIC ROAD AND UTILITY PURPOSES OVER A PORTION OF A CITYOWNED PARCEL (KIMBALL COMMUNITY PARK) AT WALNUT STREET AND CAMPUS AVENUE – APN: 1051-381-06.

WHEREAS, in accordance with the City’s Master Plan of Streets and Highways, the existing City owned street at the southeast corner of parcel (APN: 1051-381-06) along Walnut Street and Campus Avenue requires additional public street right-of-way width; and
WHEREAS, the City has all rights, title and interest to the parcels situated on the southeast corner of Walnut Street and Campus Avenue as depicted on Exhibits “A” and “B” of the easement deed, from which necessary street right-of-way can be provided; and WHEREAS, under state law, in order to improve a public road, the law generally requires a right-of-way dedication of property by its owner and acceptance by the City; and
WHEREAS, the City now seeks to dedicate a portion of said City-owned corner parcel as a right-of-way and utility easement; and
WHEREAS, the City Council now seeks to approve the use of the City’s property for this desired purpose in order to achieve the ultimate right-of-way required to accommodate City’s long-term transportation needs.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Ontario, California:

1. The City Council of the City of Ontario hereby dedicates as an easement for public road and utility purposes, the property as depicted in the attached easement deed.

3. The City Manager is authorized to execute the attached easement deed for the purposes stated herein.

The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.
44 PASSED, APPROVED AND ADOPTED this 19th day of April 2022. ___________________________________
PAUL S. LEON, MAYOR
ATTEST:
______________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO LEGAL FORM:
_______________________________

BEST, BEST & KREIGER, LLP

CITY ATTORNEY
45 STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
46 47
48 49
50 Department: Police Department
Prepared By: Mary Salem
Staff Member Presenting:

Mike Lorenz, Chief of Police
Reviewed By: Lizceth Zazueta
Approved By:

SECURITY AND THE CALIFORNIA OFFICE OF EMERGENCY SERVICES PROVIDED THROUGH THE FY 2020 URBAN AREA SECURITY INITIATIVE (UASI) GRANT

PROGRAM

CITY OF ONTARIO
Agenda Report
April 19, 2022
SECTION:

CONSENT CALENDAR
RECOMMENDATION: That the City Council authorize the City Manager to execute all documents necessary to accept a three-year sub-grant award in the amount of $603,025 from the U.S.

Department of Homeland Security and the California Office of Emergency Services provided through the FY 2020 UASI Grant Program.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Maintain the Current High Level of Public Safety
Pursue City's Goals and Objectives by Working with Other Governmental Agencies FISCAL IMPACT: The City, through the Riverside Urban Area Security Initiative (RUASI) grant has been awarded $603,025 to implement a Facial Recognition Project and associated camera networks at the Ontario International Airport. The associated grant revenue and expenditure adjustments will be presented in the next Quarterly Budget Report to the City Council. The City is not required to provide matching funds for this reimbursable grant.

BACKGROUND & ANALYSIS: The UASI program provides financial assistance to address multidiscipline planning, operations, equipment, training, and exercise needs unique to high-threat, high density urban areas, and to assist them in building and sustaining capabilities to prevent, protect against, respond to, and recover from threats or acts of terrorism and weapons of mass destruction. The intent of the UASI program is to enhance regional preparedness and expand collaboration efforts.

The RUASI includes the cities of Riverside, San Bernardino and Ontario, and the counties of Riverside and San Bernardino. Projects are recommended for consideration by the RUASI Steering Group and local Approval Authority, which are comprised of Staff from the three cities and two counties. Recommendations are made based upon the ability to match project benefits from the UASI program guidelines, which include a focus on regional coordination and collaboration. The 51 Riverside Regional UASI’s recommended projects are then subject to review and approval at the State and Federal levels.

The City of Ontario, as a sub-recipient of the FY 2020 RUASI Grant, has been approved to receive $603,025 for the acquisition of a Facial Recognition Project and based upon the following recommended spending plan:

Facial Recognition software and cameras $ 603,025
TOTAL $ 603,025
The City is not obligated to continue with these grant programs beyond the equipment’s operational life. Upon termination of the programs, Staff will work with the City of Riverside Office of Emergency Services (the designated Riverside Regional UASI Administrative Entity) and the Department of Homeland Security to properly demobilize and surplus the equipment. 52 Department: Community Improvement
Prepared By: Douglas J Sorel
Staff Member Presenting:

Scott Murphy, Executive Director Community
Development
Approved By:

BERNARDINO COUNTY TAX ROLLS

CITY OF ONTARIO
Agenda Report
April 19, 2022
SECTION:

CONSENT CALENDAR
RECOMMENDATION: That the City Council adopt a Resolution for recovery of fees and costs incurred in abating property and dangerous building violations, as well as administrative citations and civil penalties associated with property maintenance violations, and placing assessments on the San Bernardino County Tax Rolls.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Operate in a Businesslike Manner
Focus Resources in Ontario's Commercial and Residential Neighborhoods FISCAL IMPACT: The levy of special assessments will result in the recovery of $45,108.01 in costs that the City has expended for inspection or abatement of property violations, as well as the collection of $7,590.00 associated with civil penalties and/or fines for continued violations, for a total of $52,698.01 related to 52 parcels. When received, these reimbursements will be deposited into the General Fund. The special assessment revenue will be included in the proposed Fiscal Year 2022-23 Budget.

BACKGROUND & ANALYSIS: The City has established revolving funds to cover the City costs for abatement of property and dangerous building violations as a result of Community Improvement activities. Additionally, the City has established administrative citations and fines for property maintenance violations and fees and penalties associated with the Systematic Health and Safety Inspection Program, Abandoned and Distressed Property Program, and Weed and Refuse Abatement Program. These costs, fines, fees, and penalties are recovered through placement of special tax assessments upon the properties. The placement of special assessments and collection of revenue is done under Ordinance 3046, Property Appearance (Title 5, Chapter 22 of the Ontario Municipal Code); Chapter 9 of the Uniform Code for the Abatement of Dangerous Buildings; and, Ordinance 2920 for civil penalties for continued violations of the Ontario Municipal Code and fines associated with administrative citations (Title 1, Chapters 2 and 5 of the Ontario Municipal Code).

The City and County currently have a contractual agreement regarding implementation of special assessments; however, a Resolution authorizing the placement of the specific assessments is 53 required. During this assessment cycle, the Community Improvement Department has billed property owners for: the abatement of violations; the issuance of fines associated with administrative citation; the issuance of fees and penalties associated with the Systematic Health and Safety Inspection Program; the issuance of registration fees and civil penalties associated with the Abandoned and Distressed Property Program; the issuance of notice and re-inspection fees; and, civil penalties for the Weed and Refuse Abatement Program on 268 parcels. Of these, there are remaining amounts due on 52 parcels. Attached are itemized accounts of: (1) costs associated with inspection or abatement as shown in Exhibit A of the Resolution; (2) civil penalties and/or fines for continued violations as shown in Exhibit B of the Resolution; and (3) total amounts per parcel as shown in Exhibit C of the Resolution. The expenditure list, with any necessary corrections and adjustments, will be submitted to the County prior to August 2022 for its 2022-2023 tax rolls. All affected property owners were given notice of the imposition of special assessments via certified mail as provided in Ontario Municipal Code Section 1-4.05(a) and have either not requested an appeal or have exhausted the appellate procedure in Ontario Municipal Code Section 1-4.05(b). 54 RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO,

CALIFORNIA, ADOPTING A REPORT REQUESTING THE PLACEMENT

OF SPECIAL ASSESSMENTS ON PROPERTY TAX BILLS FOR CIVIL

PENALTIES OR RECOVERY OF COSTS INCURRED FOR ABATEMENT
OF VIOLATIONS OF CITY CODES AND ORDINANCES.

WHEREAS, Ordinance No. 3046, Property Appearance (Title 5, Chapter 22, of the Ontario Municipal Code) and Chapter 9 of the Uniform Code for the Abatement of Dangerous Buildings provide for the abatement of property nuisances by repair, rehabilitation, demolition or removal; and
WHEREAS, under Resolution 94-112, Resolution ORA-499, and the Cooperation and Reimbursement Agreement entered into on the 15th day of November, 1994, by the City of Ontario and the Ontario Redevelopment Agency, the Ontario Redevelopment Agency made a one-time advance to the City of One Hundred Fifty Thousand Dollars ($150,000) to repair or abate dangerous buildings and properties throughout the City; and WHEREAS, under a first amendment to the Cooperation and Reimbursement Agreement entered into on the 16th day of July 1996, by the City of Ontario and the Ontario Redevelopment Agency, the Ontario Redevelopment Agency made an additional advance to the City of One Hundred Thousand Dollars ($100,000) to continue to repair or abate dangerous buildings and properties throughout the City; and WHEREAS, under Resolution 94-113, Resolution ORA-500, and the Cooperation and Reimbursement Agreement entered into on the 15th day of November 1994, by the City of Ontario and the Ontario Redevelopment Agency, the Ontario Redevelopment Agency made a one-time advance to the City of Thirty Thousand Dollars ($30,000) to repair or abate dangerous buildings and properties in the 6th and Grove area; and WHEREAS, under Resolution 94-12, Resolution ORA-464, and the Cooperation and Reimbursement Agreement entered into on the 22nd day of February 1994, by the City of Ontario and the Ontario Redevelopment Agency, the Ontario Redevelopment Agency made a one-time advance to the City of One Hundred Fifty Thousand Dollars ($150,000) to repair or demolish dangerous buildings throughout the City; and WHEREAS, Ordinance No. 2894, Systematic Health and Safety Inspection Program (Title 8, Chapter 17, of the Ontario Municipal Code), provides for the collection of unpaid service fees, plus any penalties and accrued interest by Special Assessment; and WHEREAS, Ordinance No. 2920, provides for the assessment of civil penalties for continued violations of the Ontario Municipal Code (Title 1, Chapter 2 of the Ontario Municipal Code), and for fines associated with administrative citations to be collected by Special Assessment (Title 1, Chapter 5 of the Ontario Municipal Code), and establishes a uniform procedure before imposing such Special Assessments (Title 1, Chapter 4 of the Ontario Municipal Code); and
55 WHEREAS, the above said ordinances, resolutions and agreements provide for recovery of costs incurred in the abatement of violations by means of a Special Assessment placed on the tax rolls; and
WHEREAS, the City has incurred costs involved in the abatement of violations under the Ontario Municipal Code and Uniform Code for the Abatement of Dangerous Buildings, issuing Notices of Violation, and administering the Systematic Health and Safety Program and wishes to recover said costs; and
WHEREAS, the owners of all parcels listed in Exhibit A, B, and C were given notice of imposition of such Special Assessment as provided in Ontario Municipal Code Section 1-4.05(a), and either have not requested an appeal, or have exhausted the appellate procedure provided in Ontario Municipal Code Section 1-4.05(b); and WHEREAS, the City has an executed contract with the San Bernardino County Board of Supervisors for collection of said assessments; NOW, THEREFORE, BE IT RESOLVED that the City Council:

1. Confirmed the costs associated with inspection or abatement on the properties as set forth in the report in Exhibit A; and

2. Confirmed the civil penalties and/or fines for continued violations on the properties as set forth in the report in Exhibit B; and

3. Confirmed that Exhibit C contains the total amount assessed for both confirmed costs and confirmed civil penalties and/or fines for each of the properties; and

4. Found and determined that the report, and Exhibits contained therein are true and accurate; and

5. Adopts the above said report and finds that the costs of inspection or abatement on the properties listed are the costs set forth in Exhibit A, the civil penalties and/or fines for continued violations are the penalties and/or fines as set forth in Exhibit B, and the same are hereby charged and placed as special assessments upon the respective properties; and

6. Directs Exhibit C shall be sent to the Auditor-Controller of San Bernardino County and shall be collected on the County tax roll.

The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.
56 PASSED, APPROVED, AND ADOPTED this 19th day of April 2022. _____________________________________
PAUL S. LEON, MAYOR
ATTEST:
________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO LEGAL FORM:
_______________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY
57 STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
58 City of Ontario
Community Improvement Department
2022/2023 Tax Roll Year Special Assessments
Exhibit A - Costs Associated with Inspection or Abatement Parcel Number Address Amount Due
0108-412-18 1722 N DEL NORTE AV, Ontario, CA 91764 187.00 0110-061-04 1323 E HOLT BL, Ontario, CA 91761 91.00
0110-153-14 816 N AMADOR AV, Ontario, CA 91764 19,744.23 0110-241-33 1820 E G ST, Ontario, CA 91764 288.00
0110-365-02 935 N SACRAMENTO AV, Ontario, CA 91764 167.00 0110-431-09 790 N ARCHIBALD AV, Building:5, Unit:A, Ontario, CA 91764 1,137.97 0113-351-49 1215 E ACACIA ST, Unit:101, Ontario, CA 91761 984.22 0211-222-37 801 S DUPONT AV, Building:1, Unit:J, Ontario, CA 91761 930.70 0211-232-29 4200 E SANTA ANA ST, Unit:B, Ontario, CA 91761 566.42 0216-311-03 0 S GROVE AV, Ontario, CA 91761 148.00
0216-491-50 1419 E RIVERSIDE DR, Ontario, CA 91761 3,556.17 0218-241-36 0 E EDISON AV, Ontario, CA 91710 91.00
0218-372-48 3643 S GROWER AV, Ontario, CA 91761 500.00
0218-473-29 3130 E MAYACAMA WY, Ontario, CA 91761 447.00 0218-614-18 3131 E YOSEMITE DR, Ontario, CA 91762 1,295.04 1014-221-38 1221 W LOCUST ST, Ontario, CA 91762 148.00
1047-252-15 340 W CAROLINE CT, Ontario, CA 91762 147.00 1047-311-53 525 W SIXTH ST, Ontario, CA 91762 144.21
1047-473-15 1054 E PRINCETON ST, Ontario, CA 91764 559.77 1047-594-42 1213 N SAN ANTONIO AV, Ontario, CA 91762 1,386.04 1048-022-34 1010 N SAN ANTONIO AV, Ontario, CA 91762 3,410.62 1048-213-18 739 E H ST, Ontario, CA 91764 1,527.00
1048-431-45 439 N CUCAMONGA AV, Ontario, CA 91764 91.00 1048-565-09 207 N EUCLID AV, Ontario, CA 91762 2,256.10 1048-566-07 303 N EUCLID AV, Building:1, Ontario, CA 91762 867.00 1049-246-08 514 S CHERRY AV, Ontario, CA 91761 147.00
1049-333-04 209 W CARLTON ST, Unit:A, Ontario, CA 91762 267.00 1050-181-03 1175 E FRANCIS ST, Building:1, Ontario, CA 91761 562.65 1050-251-01 1727 S EUCLID AV, Ontario, CA 91761 285.87
1050-551-06 645 E SPRUCE ST, Ontario, CA 91761 827.00
1051-171-41 2424 S GROVE AV, Ontario, CA 91761 347.00
1083-071-19 0 S ARCHIBALD AV, Ontario, CA 91761 148.00
1083-071-20 0 S ARCHIBALD AV, Ontario, CA 91761 148.00
1083-111-15 2443 S NORTH SHORES PL, Ontario, CA 91761 91.00 1083-171-07 3242 E CLEAR LAKE RD, Ontario, CA 91761 427.00 1083-271-19 2770 S RIPPLING BROOK PL, Ontario, CA 91761 1,187.00 45,108.01

Page 1 ends

City of Ontario
Community Improvement Department
2022/2023 Tax Roll Year Special Assessments
Exhibit B - Civil Penalties and/or Fines for Continued Violations Parcel Number Address Amount Due
0110-241-33 1820 E G ST, Ontario, CA 91764 500.00
0216-311-03 0 S GROVE AV, Ontario, CA 91761 500.00
0218-372-48 3643 S GROWER AV, Ontario, CA 91761 20.00
1010-154-07 935 W BERKELEY CT, Ontario, CA 91762 320.00 1010-191-30 1025 W I ST, Ontario, CA 91762 220.00
1010-232-13 852 N JASMINE AV, Ontario, CA 91762 120.00
1014-121-06 0 S OAKS AV, Ontario, CA 91762 120.00
1014-211-13 1320 W FRANCIS ST, Ontario, CA 91762 490.00 1014-221-38 1221 W LOCUST ST, Ontario, CA 91762 500.00
1047-252-15 340 W CAROLINE CT, Ontario, CA 91762 520.00 1047-511-38 529 E HARVARD PL, Ontario, CA 91764 120.00
1048-071-41 223 E PLAZA SERENA ST, Ontario, CA 91764 170.00 1048-091-01 1050 N SULTANA AV, Ontario, CA 91764 170.00 1048-104-04 845 E ROSEWOOD CT, Ontario, CA 91764 840.00 1048-431-30 1046 E G ST, Ontario, CA 91764 120.00
1049-091-05 541 E EMPORIA ST, Ontario, CA 91761 640.00
1049-312-16 754 W CARLTON ST, Ontario, CA 91762 120.00
1050-251-01 1727 S EUCLID AV, Ontario, CA 91761 520.00
1050-251-27 317 E FRANCIS ST, Ontario, CA 91761 120.00
1050-401-29 229 E GREVILLEA ST, Ontario, CA 91761 120.00 1051-011-65 2229 S CYPRESS AV, Ontario, CA 91762 220.00 1083-051-20 2826 S HARBOUR TOWN TR, Ontario, CA 91761 120.00 1083-071-19 0 S ARCHIBALD AV, Ontario, CA 91761 500.00
1083-071-20 0 S ARCHIBALD AV, Ontario, CA 91761 500.00
7,590.00

Page 1 ends

City of Ontario
Community Improvement Department
2022/2023 Tax Roll Year Special Assessments
Exhibit C - Total Amounts per Parcel
Parcel Number Address Amount Due
0108-412-18 1722 N DEL NORTE AV, Ontario, CA 91764 187.00 0110-061-04 1323 E HOLT BL, Ontario, CA 91761 91.00
0110-153-14 816 N AMADOR AV, Ontario, CA 91764 19,744.23 0110-241-33 1820 E G ST, Ontario, CA 91764 788.00
0110-365-02 935 N SACRAMENTO AV, Ontario, CA 91764 167.00 0110-431-09 790 N ARCHIBALD AV, Building:5, Unit:A, Ontario, CA 91764 1,137.97 0113-351-49 1215 E ACACIA ST, Unit:101, Ontario, CA 91761 984.22 0211-222-37 801 S DUPONT AV, Building:1, Unit:J, Ontario, CA 91761 930.70 0211-232-29 4200 E SANTA ANA ST, Unit:B, Ontario, CA 91761 566.42 0216-311-03 0 S GROVE AV, Ontario, CA 91761 648.00
0216-491-50 1419 E RIVERSIDE DR, Ontario, CA 91761 3,556.17 0218-241-36 0 E EDISON AV, Ontario, CA 91710 91.00
0218-372-48 3643 S GROWER AV, Ontario, CA 91761 520.00
0218-473-29 3130 E MAYACAMA WY, Ontario, CA 91761 447.00 0218-614-18 3131 E YOSEMITE DR, Ontario, CA 91762 1,295.04 1010-154-07 935 W BERKELEY CT, Ontario, CA 91762 320.00 1010-191-30 1025 W I ST, Ontario, CA 91762 220.00
1010-232-13 852 N JASMINE AV, Ontario, CA 91762 120.00
1014-121-06 0 S OAKS AV, Ontario, CA 91762 120.00
1014-211-13 1320 W FRANCIS ST, Ontario, CA 91762 490.00 1014-221-38 1221 W LOCUST ST, Ontario, CA 91762 648.00
1047-252-15 340 W CAROLINE CT, Ontario, CA 91762 667.00 1047-311-53 525 W SIXTH ST, Ontario, CA 91762 144.21
1047-473-15 1054 E PRINCETON ST, Ontario, CA 91764 559.77 1047-511-38 529 E HARVARD PL, Ontario, CA 91764 120.00
1047-594-42 1213 N SAN ANTONIO AV, Ontario, CA 91762 1,386.04 1048-022-34 1010 N SAN ANTONIO AV, Ontario, CA 91762 3,410.62 1048-071-41 223 E PLAZA SERENA ST, Ontario, CA 91764 170.00 1048-091-01 1050 N SULTANA AV, Ontario, CA 91764 170.00 1048-104-04 845 E ROSEWOOD CT, Ontario, CA 91764 840.00 1048-213-18 739 E H ST, Ontario, CA 91764 1,527.00
1048-431-30 1046 E G ST, Ontario, CA 91764 120.00
1048-431-45 439 N CUCAMONGA AV, Ontario, CA 91764 91.00 1048-565-09 207 N EUCLID AV, Ontario, CA 91762 2,256.10 1048-566-07 303 N EUCLID AV, Building:1, Ontario, CA 91762 867.00 1049-091-05 541 E EMPORIA ST, Ontario, CA 91761 640.00
1049-246-08 514 S CHERRY AV, Ontario, CA 91761 147.00
1049-312-16 754 W CARLTON ST, Ontario, CA 91762 120.00
1049-333-04 209 W CARLTON ST, Unit:A, Ontario, CA 91762 267.00 1050-181-03 1175 E FRANCIS ST, Building:1, Ontario, CA 91761 562.65 1050-251-01 1727 S EUCLID AV, Ontario, CA 91761 805.87
1050-251-27 317 E FRANCIS ST, Ontario, CA 91761 120.00
1050-401-29 229 E GREVILLEA ST, Ontario, CA 91761 120.00 1050-551-06 645 E SPRUCE ST, Ontario, CA 91761 827.00

Page 1 ends

City of Ontario
Community Improvement Department
2022/2023 Tax Roll Year Special Assessments
Exhibit C - Total Amounts per Parcel
Parcel Number Address Amount Due
1051-011-65 2229 S CYPRESS AV, Ontario, CA 91762 220.00 1051-171-41 2424 S GROVE AV, Ontario, CA 91761 347.00
1083-051-20 2826 S HARBOUR TOWN TR, Ontario, CA 91761 120.00 1083-071-19 0 S ARCHIBALD AV, Ontario, CA 91761 648.00
1083-071-20 0 S ARCHIBALD AV, Ontario, CA 91761 648.00
1083-111-15 2443 S NORTH SHORES PL, Ontario, CA 91761 91.00 1083-171-07 3242 E CLEAR LAKE RD, Ontario, CA 91761 427.00 1083-271-19 2770 S RIPPLING BROOK PL, Ontario, CA 91761 1,187.00 52 52,698.01

Page 2 ends

Department: Housing
Prepared By: Hannah K Mac Kenzie
Staff Member Presenting:

Scott Murphy, Executive Director Community
Development
Approved By:

PARTICIPATION AMENDMENT BETWEEEN THE CITY OF ONTARIO, ONTARIO

HOUSING AUTHORITY AND MERCY HOUSE CHDO FOR THE ACQUISITION AND REHABILITATION OF 411 N. PARKSIDE AVENUE

CITY OF ONTARIO
Agenda Report
April 19, 2022
SECTION:

CONSENT CALENDAR
RECOMMENDATION: That City Council ("City") and the Board of the Ontario Housing Authority ("Authority") take the following actions:

1. Approve the First Amendment to the FY 2021-22 Annual Action Plan (on file in the Records Management Department) (“Substantial Amendment”);

3. Authorize the City Manager/Executive Director or his designee to sign all documents necessary to implement the Agreements.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Pursue City's Goals and Objectives by Working with Other Governmental Agencies Focus Resources in Ontario's Commercial and Residential Neighborhoods FISCAL IMPACT: If approved, the Substantial Amendment will program $418,283 in currently unallocated Home Investment Partnerships Program (HOME) Entitlement and CHDO Reserve funds to the FY 2021-22 budget which will be included with the year-end budget update. Programmed funds will be used to complete the acquisition and rehabilitation of 411 N. Parkside Ave. No General Fund monies will be used for this project.

BACKGROUND & ANALYSIS: On June 21, 2017, the City Council and Board of the Ontario Housing Authority approved the HOME Partnership Agreement for the disposition and rehabilitation of the property located at 411 North Parkside Avenue. The property was sold to Mercy House CHDO, Inc. (MHC) pursuant to the agreement on February 14, 2018. The project experienced a number of 63 delays for the rehabilitation due to coordination with the TCC-funded solar program, scope of work changes, and the COVID-19 pandemic. Bids were solicited for the rehabilitation by MHC with a bid closing date of February 3, 2022. MHC received only one qualified bid in the amount of $688,865.97.

This exceeds the available funds for the project by $418,282.87. The additional funding required for the project constitutes a substantial amendment according to the City's Citizen Participation Plan.

On May 4, 2021, the City Council approved the FY 2021-22 One-Year Action Plan. The First Amendment to the FY 2021-22 One-Year Action Plan will fund the additional $418,283 required to complete the project from unallocated HOME funding. The additional funding will be added to the existing loan between the City of Ontario and MHC for a total loan amount of $1,950,953 and requires an amendment to the HOME Program Participation Agreement among the City of Ontario, Ontario Housing Authority, and Mercy House CHDO, Inc.

Construction will begin upon loan closing and is scheduled to be completed within six months. 64 Department: Public Works
Prepared By: Bonnie Tam
Staff Member Presenting:

Tito Haes, Executive Director Public Works
Reviewed By: Bonnie Tam
Approved By:

PURPOSES ON CERTAIN PORTIONS OF NORTH VIRGINIA STREET BETWEEN EAST 6TH STREET AND EAST DEODAR STREET IN THE CITY OF ONTARIO

CITY OF ONTARIO
Agenda Report
April 19, 2022
SECTION:

CONSENT CALENDAR
RECOMMENDATION: That the City Council adopt a Resolution of the City Council establishing parking restrictions for street sweeping purposes on certain portions of North Virginia Street between East 6th Street and East Deodar Street in the City of Ontario.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Operate in a Businesslike Manner
FISCAL IMPACT: There will be nominal administrative costs of $600 related to signage, which is included in the FY 2021-22 Gas Tax Adopted Budget.

BACKGROUND & ANALYSIS: On July 6, 2021, the City of Ontario adopted Ordinance No. 3188, adding Section 4- 6.1019 to Article 10 of Chapter 6 of Title 4 to establish parking restrictions on public streets for street sweeping purposes. This Ordinance was adopted pursuant to the authority provided to the City by California Vehicle Code Section 22507.6, which permits local authorities to prohibit or restrict the parking or standing of vehicles on designated streets or highways, or portions thereof, for the purpose of street sweeping.

In accordance with Section 4-6.1019, the Executive Director of Public Works established a process for the creation of street sweeping parking restrictions on designated streets. A resident will initiate a request by submitting a petition to Public Works Agency Staff. If two-thirds or greater of the residents in the area agree with a proposed parking restriction, Staff would recommend adoption of a Resolution to designate parking restrictions.

Pursuant to this process, a petition was submitted to the Public Works Agency by a resident from North Virginia Street between East 6th Street and East Deodar Street. Staff verified that two-thirds of residents or greater desired parking restrictions for street sweeping.

Accordingly, Staff recommends that the City Council approve the following parking restriction for 65 this area:

1. North Virginia Street between East 6th Street and East Deodar Street (no parking on both sides of the street on Wednesdays from 10 A.M. to 2 P.M.)
The proposed Resolution would approve the aforementioned parking restrictions, in accordance with Section 4-6.1019(c).
66 RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO,

CALIFORNIA, ESTABLISHING PARKING RESTRICTIONS FOR STREET

SWEEPING PURPOSES ON CERTAIN PORTIONS OF NORTH VIRGINIA STREET BETWEEN EAST 6TH STREET AND EAST DEODAR STREET IN THE CITY OF ONTARIO.

WHEREAS, the California Vehicle Code Section 22507.6 permits local authorities to prohibit or restrict the parking or standing of vehicles on designated streets or highways, or portions thereof, for the purpose of street sweeping; and WHEREAS, on July 6, 2021, the City of Ontario adopted Ordinance No. 3188, adding Section 4-6.1019 to Article 10 of Chapter 6 of Title 4 to establish parking restrictions on public streets for street sweeping; and WHEREAS, in accordance with Section 4-6.1019(b), the Executive Director of Public Works established a process for designating restricted parking zones for street sweeping purposes, as follows: residents would initiate requests by submitting a petition with signatures from residents who encompass two-thirds or greater of the residents of the block; and
WHEREAS, Section 4-6.1019(c) authorizes the City Council to establish designated restricted parking zones for street sweeping purposes, by resolution; and WHEREAS, staff has received the requisite petition with two-thirds of residents or greater in support of parking restrictions from a resident of the City and is recommending to the City Council adoption of a resolution to designate parking restrictions in those areas; and
WHEREAS, the City Council wishes to adopt a resolution, pursuant to Section 4-6.1019(c) on the Ontario Municipal Code, designating portions of North Virginia Street between East 6th street and East Deodar Street, on certain dates and times, as restricted parking zones for street sweeping purposes.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ONTARIO DOES HEREBY RESOLVE AND DECLARE AS FOLLOWS:

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

SECTION 2. Regulation. The City Council hereby designates the following as restricted parking zones, on the days and times indicated, for street sweeping purposes:
67 A. North Virginia Street between East 6th street and East Deodar Street: No parking on both sides of the street on Wednesdays from 10 A.M. to 2 P.M.

SECTION 3. Exceptions. Pursuant to Vehicle Code section 22507.6, in residential areas, the parking restrictions established by this resolution shall not apply to commercial vehicles making pickups or deliveries of goods, wares, or merchandise from or to any building or structure located on a restricted street, or for the purpose of delivering materials to be used in the repair, alteration, remodeling or reconstruction of any building or structure for which a building permit has previously been obtained.

SECTION 4. Signage. The City Manager shall cause appropriate signage to be posted on each street on which parking is restricted for the purpose of street sweeping.

The signage shall be in accordance with the requirements of Vehicle Code section 22507.6 and shall set forth the days and hours during which parking is prohibited for the purpose of street sweeping. The parking restrictions established in this Resolution shall become effective upon posting of the signage.

SECTION 5. CEQA. The Council finds that this project is categorically exempt from the California Environmental Quality Act under Title 14 of the California Code of Regulations sections 15301 (existing facilities) and 15304 (minor alterations to existing public facilities) and no further environmental assessment is necessary.

SECTION 6. Severability. If any provision of this Resolution or the application of any such provision to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The City declares that the City Council could have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution.

SECTION 7. Effective Date. This Resolution shall become effective immediately upon its adoption.

The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.

PASSED, APPROVED, AND ADOPTED this 19th day of April 2022. _____________________________________
PAUL S. LEON, MAYOR
68 ATTEST:
________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO LEGAL FORM:
_______________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY
69 STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
70 Department: Municipal Services
Prepared By: Michael Johnson
Staff Member Presenting:

Tito Haes, Executive Director Public Works
Reviewed By: Bonnie Tam
Approved By:

CITY OF ONTARIO
Agenda Report
April 19, 2022
SECTION:

CONSENT CALENDAR
RECOMMENDATION: That the City Council take the following actions:

A. Reject Clawson Automotive Equipment and SAS Construction’s bid as being non-responsive; B. Award a Construction Contract (on file with Records Management Department) to BCM Group, Inc. of Rancho Cucamonga, California for the construction of a Police Department Fleet Services Shop in an amount not to exceed $649,999 plus a 10% contingency of $64,999 to address any unforeseen issues that may arise during construction, for a total authorized expenditure of $714,998; and
C. Authorize the City Manager, or his designee, to execute said contract and all documents required for the completion of the project and file a notice of completion at the conclusion of all construction activities.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Operate in a Businesslike Manner
Invest in the City's Infrastructure (Water, Streets, Sewers, Parks, Storm Drains and Public Facilities)
FISCAL IMPACT: The Fiscal Year 2021-22 Adopted Budget includes appropriations in the amount of $550,000 in the Facilities & Parks Maintenance Fund for this project. If approved, the remaining balance of $164,998 will be requested in the Fiscal Year 2021-22 Year-end Budget Update.

BACKGROUND & ANALYSIS: In partnership with the Police and Fleet Services Departments, it was determined that having a satellite fleet services shop would be beneficial for both operations.

Having a satellite shop will reduce vehicle mileage, fuel costs, and maintenance needs. Additionally it will increase operational efficiency by reducing travel time for officers driving to the main fleet shop for repairs, or arranging for multiple mechanics to drive the repaired vehicles between locations. Giving Fleet Staff direct access to the Police fleet of vehicles will ensure vehicles can be serviced and repaired quicker, thus increasing the number of vehicles available to officers and increasing the amount of time the vehicles are available for use. 71 On January 10, 2022, the City solicited bids for the Police Department Fleet Services Shop Project and received 10 responses at the bid opening held on February 4, 2022 at 4:00 p.m.

COMPANY LOCATION BID AMOUNT
*Clawson Automotive
Equipment
Bakersfield, CA $179,200.12
*SAS Construction Santa Ana, CA $444,678.00
BCM Group, Inc. Rancho Cucamonga, CA $649,999.00
BBS Construction, Inc. West Covina, CA $688,000.00
OCS Construction Services Riverside, CA $704,633.00
IPI Construction Panorama City, CA $719,654.00
Hamel Contracting, Inc. Murrieta, CA $729,985.00
L M Rasmussen Construction Alpine, CA $734,750.00
New Millennium
Construction Services
Chino Hills, CA $757,963.11
Dalke & Sons Construction,
Inc.

Riverside, CA $838,704.90
Clawson Automotive Equipment and SAS Construction were deemed non-responsive as they did not submit the required documentation or adhere to the project specifications. Clawson Automotive Equipment submitted a bid for equipment only and SAS Construction did not submit a list of sub contractors as required in the bid documents. Staff recommends that the City Council reject the bids submitted by Clawson Automotive Equipment and SAS Construction, and award a construction contract to BCM Group, Inc. as the lowest responsible bidder. As referenced on the bid package, the lowest bid is determined based on total base bid amount. 72 Department: Information Technology
Prepared By: Samantha Robles
Staff Member Presenting:

Colin Fernandes, Executive Director Information
Technology
Approved By:

OF EQUIPMENT AND HARDWARE

CITY OF ONTARIO
Agenda Report
April 19, 2022
SECTION:

CONSENT CALENDAR
RECOMMENDATION: That the City Council authorize the City Manager to execute an amendment to the existing five year agreement with Axon Enterprise, Inc., of Scottsdale, Arizona, for the purchase of new equipment including; cameras, maintenance, and data management services at an additional cost of $80,528 to the existing contract of $3,722,106, for a total not-to-exceed of $3,802,634.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Operate in a Businesslike Manner
FISCAL IMPACT: The amendment to the Professional Services and Equipment Purchase Agreement increases the existing five year $3,722,106 Agreement by $80,528 for a not-to-exceed contract amount of $3,802,634. These amounts will be funded through the Information Technology Fund. FY 2021-22 budget includes appropriations for the current contract year. If approved, appropriations will be added to the future years' budgets consistent with the annual adoption process.

BACKGROUND & ANALYSIS: The City currently has an agreement with Axon Enterprise, Inc. for hardware, maintenance and data management services for public safety. Axon Enterprise has a unique solution related to information collection and information storage. The City's interview room equipment has reached its serviceable end of life and needs to be replaced with new and updated equipment.
73 Department: Public Works
Prepared By: Daniel P Beers
Staff Member Presenting:

Tito Haes, Executive Director Public Works
Reviewed By: Bonnie Tam
Approved By:

SOLAR INSTALLATION PROJECT AT CITY HALL ANNEX BUILDING

CITY OF ONTARIO
Agenda Report
April 19, 2022
SECTION:

CONSENT CALENDAR
RECOMMENDATION: That the City Council take the following actions:

A. Authorize the City Manager or his designee to execute a change order in the amount of $110,298 to the original Construction Contract for DBA Letner Roofing Co. (on file with Records Management Department) for the solar improvement project at City Hall Annex Building. DBA Letner’s Roofing Company’s original contract value amount of $546,997 plus a 10% contingency of $54,699 for a total amount of $601,696. Additional funding of $110,298 will revise contract value to $711,994;
B. Authorize the City Manager to transfer the budget appropriations of $110,298 to the original Construction Contract for DBA Letner Roofing Co. (on file with Records Management Department) from the Library Roof Restoration Project. This additional funding will assist the solar improvement project at City Hall Annex Building as outlined in the Energy Service Agreement with Climatec, LLC (on file with Records Management Department).; and C. Authorize the City Manager or his designee to execute said contract and authorize the filing of the notice of completion at the conclusion of all construction activities related to the project.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Invest in the City's Infrastructure (Water, Streets, Sewers, Parks, Storm Drains and Public Facilities)
FISCAL IMPACT: The Fiscal Year 2021-22 Adopted Budget includes $110,298 in the Capital Projects Fund for the roof replacements at City Hall Annex Building and Solar installation.

BACKGROUND & ANALYSIS: On July 21, 2020, the City Council approved an Energy Service Agreement with Climatec to provide various energy related improvements to City Facilities. On May 18, 2021, the City Council approved DBA Letner Roofing Co. to replace the City Hall Annex roof. The City assigned both Climatec and DBA Letner Roofing Co. to complete the roof replacement in 74 conjunction with installation of the new solar panels at the City Hall Annex Building. As the work progressed, the contractors uncovered existing site conditions which altered the scope of work.

This Change Order will allow the funding needed to complete both roof replacement and Solar Photovoltaic (PV) System installation projects at the City Hall Annex Building. 75 Department: Public Works
Prepared By: Bonnie Tam
Staff Member Presenting:

Tito Haes, Executive Director Public Works
Reviewed By: Bonnie Tam
Approved By:

CITY OF ONTARIO
Agenda Report
April 19, 2022
SECTION:

CONSENT CALENDAR
RECOMMENDATION: That the City Council authorize a $31,000 budget amendment from the Integrated Waste Fund for the purchase of two (2) Autocar Roll Off trucks in the amount of $601,000 for the Integrated Waste Department.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Operate in a Businesslike Manner
FISCAL IMPACT: The total cost of the Autocar Roll Off trucks recommended for purchase is $601,000. Appropriations for the purchase of vehicles in the amount of $601,000 in the Integrated Waste Fund are included in the FY 2021-22 Budget. There is no fiscal impact to the General Fund.

BACKGROUND & ANALYSIS: At the March 1, 2022 City Council meeting, the City Council authorized the cooperative purchase and delivery of three (3) Autocar Automated Sideload trucks in the amount of $1,125,000 and two (2) Autocar Roll Off trucks in the amount of $570,000 for the Integrated Waste Department, consistent with the terms and conditions of the Sourcewell Cooperative Contract No. 060920-ATC. This was to ensure minimal service interruptions to the customers of Ontario and remain in compliance with CalRecycle’s legislative bills AB 341, SB 1383, and AB 1826. To complete the purchase of the two (2) Autocar Roll Off trucks, additional budget appropriations in the amount of $31,000 is needed to pay for the document fees, tire recycling fees, and taxes that come with the proposed fleet purchase.

In general, conformation with the provisions of Government Code Section 54201 through 54204, Ontario Municipal Code Section 2-6.29 allows for the purchase of supplies and equipment through cooperative purchasing programs, pursuant to California Government Code Section 6502 and City of Ontario Resolution No. 91-141. Cooperative purchasing allows the City to pool its procurement power with other public agencies to obtain lower pricing than otherwise might be possible. 76 Department: Utilities
Prepared By: Ryan Rebick
Staff Member Presenting:

Scott Burton, Utilities General Manager
Reviewed By: Dennice Raygoza, Albert G
Gastelum, Michael Sigsbee
Approved By:

MUNICIPAL SERVICES CENTER MODULAR OFFICES

CITY OF ONTARIO
Agenda Report
April 19, 2022
SECTION:

CONSENT CALENDAR
RECOMMENDATION: That the City Council approve and authorize the City Manager, or his designee to execute Amendment No. 3 to the On-Call Design Service Agreement (on file in the Records Management Department) with Holt Architects, Inc. (dba Holt Architecture) of Palm Desert, California in the amount of $90,498, plus a 15% contingency of $13,575 for a total amount of $104,073.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Operate in a Businesslike Manner
Invest in the Growth and Evolution of the City's Economy Invest in the City's Infrastructure (Water, Streets, Sewers, Parks, Storm Drains and Public Facilities)
FISCAL IMPACT: The Fiscal Year 2021-22 Adopted Capital Improvement Program includes appropriations from the Integrated Waste Fund, Sewer Capital Fund, and Water Capital Fund for architectural services for the Ontario Municipal Services Center (OMSC) Modular Office Project. The proposed Amendment in the amount of $90,498, plus a 15% contingency of $13,575 for a total amount of $104,073 will increase the current total not-to-exceed authorization from $230,822 to $334,895. The City and Holt Architects, Inc. (Holt) have agreed to the fixed billing rates and Holt will be compensated for the completion of the scope of work at the approved billing rates. There is no impact to the General Fund.

BACKGROUND & ANALYSIS: The OMSC building located at 1425 S. Bon View Ave. houses the Ontario Municipal Utilities Company (OMUC) and Public Works Agencies. Over the past several years, staffing positions have been filled to support the City’s growing operational functions.

Previous efforts to accommodate new OMUC staff included the relocation of Public Works administration staff to 1333 S. Bon View Ave. (Customer Services Center building) and remodeling of existing space to add more cubicle workstations. Despite these improvements, there is still a shortage of sufficiently sized office and meeting space for all current positions. 77 On May 18, 2021, City Council awarded a Goods and Services Agreement with Williams Scotsman, Inc. for the purchase of two new modular buildings. The first building is a replacement of the modular building that was utilized as the OMSC Training Center and the second is an additional building in the parking lot at 1333 S. Bon View Ave. This building provides additional office space for up to 23 staff members and a conference room that can accommodate up to 16 people.

On January 21, 2020, City Council awarded on-call architectural Design Service Agreements to Holt and thirteen other consultants. Holt and the other consultants were selected using a qualificationsbased selection process. The agreements were awarded as three-year agreements with two additional one-year extensions consistent with Council approved budgets. As projects arise, Staff will request proposals from the consultants and amend original agreements with revised scopes of work and costs.

In February 2022, Staff solicited a proposal from Holt to produce a set of plans to submit to the Building and Planning Departments for approval. The package will include site plans that will show compliance with the Americans with Disabilities Act, parking lot circulation, and service connections to the modular offices. Issuance of the building permits will allow Staff to begin utilizing and occupying the buildings.

Staff recommends the Amendment to Holt based on their expertise, ability to perform the work in a timely manner, and successful past performance of this type of work. 78 Department: Economic Development
Prepared By: Jennifer Hiramoto
Staff Member Presenting:

Jennifer McLain Hiramoto, Economic
Development Director
Approved By:

UNIVERSITY OF LA VERNE

CITY OF ONTARIO
Agenda Report
April 19, 2022
SECTION:

CONSENT CALENDAR
RECOMMENDATION: That the City Council adopt a Resolution:

However, there may be future fiscal impacts if the University of La Verne ("ULV") exercises the financing options, as detailed in Sections 7.2 and 7.3 of the Real Property Exchange Agreement and Joint Escrow Instructions ("Agreement").

BACKGROUND & ANALYSIS:

BACKGROUND: On October 21, 2021, the City of Ontario (“the City”) and the University of La Verne (“ULV”) executed a Memorandum of Understanding (“MOU”) to explore the viability of exchanging properties for the purpose of expanding the City of Ontario’s Civic Center campus while enabling ULV to expand its footprint within the City of Ontario.

ULV envisions an innovation and education corridor within the City of Ontario, one that builds upon both the proximity of its main campus in La Verne and the University of La Verne College of Law building in the heart of Downtown Ontario. ULV’s future expansion plans in Ontario includes the development of a new College of Health campus as well as the Randall Lewis Center for Innovation, 79 Social Impact and Entrepreneurship.

The City, for its part, envisions a robust Civic Center Campus – one that modernizes facilities for public employees, brings more people to the downtown area, and better utilizes all space in the downtown core. The City expansion project (“Expansion Project”) is anticipated to include the Ontario Montclair-School District headquarters, a modern City Annex, which would centralize City Hall services, a 700-space parking structure, a new state-of-the-art fire station, and a College of Health.

This MOU enabled the City and ULV an opportunity to negotiate terms in good faith. On March 22, 2022, the Planning Commission adopted a Resolution finding that the proposed uses of the properties are consistent with the General Plan.

ANALYSIS: With the Planning Commission’s adoption of a Resolution making the appropriate General Plan consistency findings, and the ULV and City negotiations completed, the next step is to enter into a Real Property Exchange. City Staff is recommending the following terms that would ultimately result in the exchange between three separate City-owned parcels for one ULV-owned site.

In exchange for three-City owned properties detailed below, ULV agrees to deed the City the following parcel:

ULV Parking Lot
Description: Approximately 2.4-acre parking lot, at the southwest corner of Sultana Avenue and D street (APN: east portion of 1048-541-15).

Purpose: The acquisition of this lot will enable the City to relocate and construct a modernized Fire Station, currently located at the northwest corner Sultana and “B” Street. A portion of the ULV Parking Lot will also serve as the future location of a 700- space parking structure that will serve all users within the Civic Center Campus.

Term: The property will be conveyed following close of a 30-day escrow period.

In exchange for the ULV Parking Lot, the City of Ontario will agree to exchange or sell the properties below to ULV:

Fire Station 1
Description: Approximately 0.52 acres at the northwest corner of Sultana Avenue and “B” Street (APN: Portion of 1048-545-16), which is currently developed as the City’s Fire Station No. 1.

Purpose: ULV intends to construct a College of Health campus at this site.

Term: Upon completion of construction of the new FS1 site and relocation of all personnel, the City will deliver the site as “shovel ready,” including demolishing the property. ULV must adhere to all development processes and standards, including paying applicable fees.

Founders Garden
Description: Approximately 13 acres located on the north and south side of Inland 80 Empire Boulevard approximately 2,641 feet west of Haven Avenue, addressed as 3995 and 4040 Inland Empire Boulevard (APNS: 0210-205-03 and 0210-211-23).

Purpose: Future uses are undermined at this time. Any future improvement or enhancement would require a development entitlement to be reviewed and approved by the appropriate hearing body and must occur within three years of a signed Exchange Agreement. If this does not occur during this time frame, the property will be conveyed back to the City.

Term: The property will be conveyed following close of escrow.

Emporia Block
Description: Approximately 1.4 acres located at the northwest corner of Emporia Street and Laurel Avenue, addressed at 208 and 228 West Emporia, 200, 211 and 221 South Laurel Avenue (APNS: 1049-056-05, 1049-056-06, 1049-056-01, 1049-056-02, 1049056- 03 and 1049-056-04).

Purpose: ULV intends on utilizing this building, parking lot and vacant land as the future Randall Lewis Center for Innovation, Entrepreneurship and Social Impact.

Term: ULV has an option to purchase this property within a five-year time frame at the current (2022) fair market value.

Other notable terms of the Agreement include:

Surplus Land Act: The City-Exchange Properties, to the extent they are no longer necessary for the City’s use, and the Parties’ exchange thereof are exempt from the Surplus Land Act (Government Code Section 54220, et seq.) (the “Surplus Land Act”), pursuant to Section 54221(f)(1)(C) of the Surplus Land Act.

Financing: The City agrees to lend ULV up to $40 million to partially finance the ULV Expansion project. The details of the financing shall be negotiated and memorialized in future loan documents.

In summary, the proposed transfer and acquisition of the properties is in the City’s best interest because it achieves the City’s goals of attracting workforce population to the downtown area, removing blight, activating underutilized assets in the City, and incentivizing the development of a pipeline of talent that adds more high paying wage jobs to the City. Therefore, Staff recommends that the City Council enter into this Real Property Exchange Agreement and Joint Escrow Instructions.
81 RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO,

CALIFORNIA, (I) DECLARING CERTAIN CITY-OWNED REAL
PROPERTY TO BE EXEMPT SURPLUS LAND; (II) APPROVING A REAL

PROPERTY EXCHANGE AGREEMENT WITH THE UNIVERSITY OF LA
VERNE; (III) AUTHORIZING THE CITY MANAGER TO TAKE ALL
ACTIONS NECESSARY WITH RESPECT THERETO; AND (IV) FINDING THAT NO FURTHER CEQA ANALYSIS IS NECESSARY.

WHEREAS, the City of Ontario (the “City”) owns in fee simple the following real property within the City: (i) 3995 and 4040 Inland Empire Blvd. (a.k.a. Founder’s Garden Land Parcels) (APNs: 0210-205-03 and 0210-211-23, respectively) (together, the “View Corridor”); (ii) the northwest corner of Sultana and B Streets (APN: portion of 1048-541- 15), on which is currently constructed the City’s Fire Station No. 1 (the “FS1 Site”); and (iii) 208 W. Emporia St. (the “Option Property”); and
WHEREAS, the University of La Verne (“ULV”) desires to acquire the View Corridor and the FS1 Site (together, the “City-Exchange Properties”) and potentially the Option Property in order to realize its vision of an innovation and education corridor within the City of Ontario – one that builds upon the proximity of its main campus and the University of La Verne College of Law building in the heart of downtown Ontario; and WHEREAS, the City is willing to convey the City-Exchange Properties (and potentially the Option Property) in exchange for certain real property owned in fee simple by ULV (the “ULV Parking Lot” and together with the City-Exchange Properties, the “Properties”), pursuant to the terms and conditions of that certain Real Property Exchange Agreement and Joint Escrow Instructions, a form of which is attached hereto as Exhibit A (the “Agreement”); and
WHEREAS, the City desires to acquire the ULV Parking Lot for development of its own expansion project, which includes, among other components, (i) a 700-space, three (3)- to four (4)-level parking structure for, e.g., City vehicles, employee parking, and public parking; and (ii) a new state-of-the-art fire station – both to be developed on the ULV Parking Lot; and
WHEREAS, the City-Exchange Properties and Option Property are not necessary for the City’s use; and
WHEREAS, the City has determined that, pursuant to Government Code sections 37350 and 37351, exchanging the City-Exchange Properties (and potentially the Option Property) for the ULV Parking Lot according to the terms and conditions of the Agreement is for the common benefit and in the best interests of the City and its residents. 82 WHEREAS, on March 22, 2022, pursuant to Government Code section 65402, the Planning Commission adopted a resolution finding that the proposed disposition of the City-Exchange Properties and Option Property pursuant to the terms of the Agreement is consistent with the City’s General Plan.

NOW, THEREFORE, THE CITY DOES HEREBY RESOLVE AND DECLARE AS FOLLOWS:

SECTION 1. Recitals. The above recitals are true and correct and incorporated into this Resolution by reference.

SECTION 2. Finding of Exemption from Surplus Land Act. The City hereby finds that the City-Exchange Properties and the Option Property are exempt surplus land pursuant to Section 54221(f)(1)(C) of the Surplus Land Act (Government Code section 54220 et seq.) (the “Act”), because they are part of an exchange of real property between the City and ULV, and the land to be received by the City from ULV is necessary for the City’s use.

SECTION 3. Approval of Agreement. The City Council hereby approves the Agreement in substantially the form attached hereto as Exhibit A and on file with the City Clerk, together with such additions thereto and changes therein as the City Attorney shall deem necessary, desirable or appropriate, the execution of which by the City Manager shall be conclusive evidence of the approval of any such additions and changes.

SECTION 4. City Manager Authorization. The City Manager is hereby authorized and directed to execute, and the City Clerk is hereby authorized and directed to attest to the final form of the Agreement for and in the name and on behalf of the City.

The City Council hereby authorizes the delivery and performance of the Agreement. The City Manager and his designees are hereby authorized and directed to do any and all things, to execute and deliver any and all documents, which, in consultation with staff and the City Attorney, they may deem necessary or advisable in order to effectuate the purposes of this Resolution, and any such actions previously taken by such officers are hereby ratified and confirmed.

SECTION 5. CEQA. The California Environmental Quality Act (Pub. Res.

Code § 21000 et seq.) (“CEQA”) does not apply here, because declaration of the CityExchange Properties and the Option Property as exempt surplus land under the Act, approval of the Agreement, and authorization of the City Manager to execute the Lease do not constitute a “project” as defined in Cal. Code Regs. tit. 14 (“CEQA Guidelines”) § 15378, in that such actions, taken as a whole, have no “potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.” In the alternative, even if such actions constitute a “project,” they are exempt under CEQA Guidelines § 15061(b)(3), because they have no “potential for causing a significant effect on the environment.”
SECTION 6. Effective Date. This Resolution shall take effect upon adoption.

83 The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.

PASSED, APPROVED, AND ADOPTED this 19th day of April 2022. _____________________________________
PAUL S. LEON, MAYOR
ATTEST:
____________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
____________________________________

BEST BEST & KRIEGER, LLP

CITY ATTORNEY
84 STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
85 46700.12001\34906368.1

REAL PROPERTY EXCHANGE AGREEMENT

AND JOINT ESCROW INSTRUCTIONS
Between

UNIVERSITY OF LA VERNE
and

THE CITY OF ONTARIO
Effective Date: ____________,
DRAFT
86 46700.12001\34906368.1

REAL PROPERTY EXCHANGE AGREEMENT

AND JOINT ESCROW INSTRUCTIONS

THIS REAL PROPERTY EXCHANGE AGREEMENT AND JOINT ESCROW
INSTRUCTIONS (“Agreement”) is entered into this _____ day of ______________, 2022 (“Effective Date”) by and between the UNIVERSITY OF LA VERNE, a California non-profit corporation (“ULV”) and the CITY OF ONTARIO, a California municipal corporation (“City”).

ULV and City are sometimes hereinafter referred to individually as a “Party” and collectively as the “Parties.”

R E C I T A L S
A. ULV owns that certain real property located at or about 320 East “D” Street (APN:
1048-541-15) within the City, as more particularly described in Exhibit “A” attached hereto and incorporated herein consisting of an approximate 50,000 sq.ft building, parking lots on the west and east side of the on-site building (“the ULV College of Law”). Subject to paragraph 7.5 and the applicable terms of this Agreement, ULV desires to allow the City to undertake the effort and costs necessary to split the eastern parking lot into a separate legal parcel which shall hereinafter referred to as the “ULV Parking Lot”. The ULV Parking Lot shall be more particularly described and set forth in Exhibit “A-1” attached hereto and incorporated herein; and B. The City owns (i) those two 6.715-acre and 6.29-acre parcels of real property located at 3995 and 4040 Inland Empire Blvd., respectively, within the City (a.k.a. Founder’s Garden Land Parcels) (APNs: 0210-205-03 and 0210-211-23, respectively), as more particularly described in Exhibit “B-1” attached hereto and incorporated herein by reference (together, the “View Corridor”); (ii) that certain real property located at the northwest corner of Sultana and B Streets in the City (APN: portion of 1048-541-15), on which is currently constructed the City’s Fire Station No. 1, as more particularly described in Exhibit “B-2” attached hereto and incorporated herein by reference (“FS1 Site”); and (iii) that certain real property located at 208 W. Emporia St. in the City, as more particularly described in Exhibit “B-3” attached hereto and incorporated herein by reference (the “Option Property”). The View Corridor and the FS1 Site, together, shall be called the “City-Exchange Properties,”; the ULV Parking Lot and the CityExchange Properties, together, shall be called the “Properties”; and the Properties and the Option Property may be individually called a “Property”; and
C. ULV desires to acquire the City-Exchange Properties (and potentially the Option Property) in order to realize its vision of an innovation and education corridor within the City of Ontario – one that builds upon the proximity of its main campus and the University of La Verne College of Law building in the heart of downtown Ontario. ULV's future expansion plans include development of a new College of Health campus (“ULV College of Health”), anticipated enhancement of the View Corridor, as well as the Randall Lewis Center for Innovation, Social Impact and Entrepreneurship (together, the “ULV Expansion Project”).

D. The City believes that the exchange of the Properties (the “Exchange”) and the ULV Expansion Project are in the City’s best interests, because they achieve the City’s goals of 87 46700.12001\34906368.1
attracting workforce population to the downtown area, removing blight, activating underutilized assets in the City, and incentivizing the development of a pipeline of talent that adds more highpaying jobs to the City; and E. The City, for its part, envisions a robust Civic Center Campus – one that modernizes facilities for public employees, brings more people to the downtown area, and better utilizes all space in the City’s downtown core (the “City Expansion Project” and together with the ULV Expansion Project, the “Expansion Projects”). The City Expansion Project is anticipated to include the Ontario Montclair-School District (“OMSD”) headquarters, a modern City Annex, which would centralize City Hall services, and (relevant to this Agreement) (i) a 700-space, three (3)- to four (4)-level parking structure, which would house City vehicles and employee parking, OMSD employee parking, ULV College of Law/Health employee parking, and public parking for users/customers of all three entities (the “Parking Structure”); and (ii) a new state-of-the-art fire station (the “New Fire Station”) – both to be developed on the ULV Parking Lot; and F. In order to finance the ULV Expansion Project, the City has agreed in principle to lend ULV money to partially finance the ULV Expansion Project, and in consideration, ULV has agreed in principle to convey a post-Exchange mortgage interest in certain City-Exchange Properties, as well as other non-Exchange properties owned by ULV to be mutually agreed upon.

G. The City-Exchange Properties, to the extent they are no longer necessary for the City’s use, and the Parties’ exchange thereof are exempt from the Surplus Land Act (Government Code Section 54220, et seq.) (the “Surplus Land Act”), pursuant to Section 54221(f)(1)(C) of the Surplus Land Act.

A G R E E M E N T
Based upon the foregoing Recitals, which are incorporated herein by this reference, and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, ULV and City agree as follows:

1. EXCHANGE OF PROPERTIES.

1.1 Agreement to Exchange. Subject to all the terms, conditions, and provisions of this Agreement, and for the consideration herein set forth, ULV and City agree to exchange title to their respective Properties, each including, without limitation, such Party’s interest in all mineral, oil, gas and other hydrocarbon substances on and under the properties as well as all development rights, air rights, water, water rights and water stock relating to the Properties and any other easements, rights-of-way or appurtenances, used in connection with the beneficial use and enjoyment of the Properties.

1.2 FS1 Site. Upon completion of construction of and the City’s relocation to the New Fire Station, and subject to Section 7.1, City shall, at its sole cost and expense, demolish and clear all improvements on the FS1 Site and deliver fee title to the FS1 Site to ULV as vacant land. This Section 1.2 shall survive until the end of the Application Period (as defined in Section 7.1). 88 46700.12001\34906368.1

2. INSPECTIONS AND REVIEW.

2.1 Delivery of Due Diligence Materials. Within ten (10) days of the Effective Date, the Parties shall deliver to each other, without representation or warranty of completeness or accuracy, copies of the documents, reports, agreements, or other items, of material significance to their respective Properties, in their respective possession, custody or control and which may include the following (collectively, the “Due Diligence Materials”): (i) all licenses, leases, and permits affecting or relating to the ownership, subdivision, possession or development of the Properties or the construction of improvements thereon, and all amendments and modifications thereto; (ii) applications and correspondence or other written communications to or from any Governmental Authority (as defined below) regarding any permit, approval, consent or authorization with respect to the development of the Properties or the construction of improvements thereon; (iii) the most recent survey, if any, pertaining to the Properties or any portion thereof; and (iv) soils reports, engineering data, environmental reports, and other data or studies pertaining to the Properties or any portion thereof.

2.2 Assumption of Risk. Any Due Diligence Materials shall be provided to the other Party without any recourse or liability of any type or nature. Each Party assumes all risk of any kind with regard to the use of and reliance upon any of the Due Diligence Materials provided by the other Party. Neither Party is relying upon the other Party for any information related to, concerning, or involving the respective properties for this transaction, including, without limitation, the monetary value of the Properties.

2.3 Inspections. The Parties and their respective representatives, agents, engineers, consultants, contractors, and designees shall have the right to enter onto each other’s Properties from and after the date of this Agreement through the Closing for purposes of examining, inspecting and investigating the other’s Properties, including the site, soil, subsurface soils, drainage, seismic and other geological and topographical matters, location of asbestos, toxic substances, hazardous materials or wastes, if any, and, in each Party’s sole and absolute discretion, determining whether the other’s Properties are acceptable to them. Prior to entering the Properties, the entering Party (the “Entering Party”) shall provide the welcoming Party (the “Welcoming Party”) with at least twenty-four (24) hour written notice identifying the date and time of the planned inspection. The Welcoming Party will permit the Entering Party’s planned inspection unless the planned inspection will interfere with a previously planned Welcoming Party activity or event in which case the Parties shall work together in good faith to identify another mutually convenient date or time as soon as possible. Both Parties shall have the right, for any reason and at any time on or before the date that is one hundred twenty (120) days after the Effective Date (the “Due Diligence Period”), to terminate this Agreement by delivering a written notice of such termination to the other Party and Escrow Agent.

2.4 Repair; Indemnification. The Entering Party shall, in a timely manner, repair any and all damage to the Welcoming Party’s Properties caused by any inspection or investigation described herein, to a condition substantially the same as the condition of the Welcoming Party’s Properties prior to such inspection or investigation. The Entering Party shall hold harmless, defend and indemnify the Welcoming Party and all of the principals, members, agents and partners of the 89 46700.12001\34906368.1
Welcoming Party from any loss, expense (including attorney’s fees), liability or cost which arises due to or out of any inspection by said Party. The foregoing indemnity shall survive the close or the termination of this transaction.

2.5 As-Is. Based on the inspection rights set forth in the preceding paragraph and in reliance on the due diligence of each Party, ULV and City acknowledge and agree that except for the limited warranties and representations expressly set forth in this Agreement, the exchange of the Properties is made solely on an AS IS WHERE IS BASIS, WITH ABSOLUTELY NO REPRESENTATIONS OR WARRANTIES, EXPRESSED OR IMPLIED. But for the foregoing understanding and agreement, the Parties would not have entered into this transaction. Each Party acknowledges that due to the expertise, experience and business acumen of both Parties and their respective consultants, each Party has the ability to conduct a complete and through due diligence of the respective Properties and would not close the transaction unless totally satisfied with the respective Property, and has otherwise conducted an exhaustive and complete due diligence which would enable the taking of the respective Property in an AS IS WHERE IS BASIS WITH ABSOLUTELY NO REPRESENTATIONS OR WARRANTIES, EXPRESSED OR IMPLIED.

2.6 Title Review. During each Parties’ respective Due Diligence Period, each Party shall obtain a preliminary title report for each respective Property, together with copies of all written instruments creating the exceptions specified therein, and plat maps plotting all easements specified therein (collectively, the “Title Reports”). The Parties shall notify one another in writing (each, an “Objection Notice”) on or before the expiration of the Due Diligence Period of any objections they may have to the title exceptions contained in the respective Title Report for the Properties. A Party’s failure to provide an Objection Notice within said period shall constitute such Party’s approval of all exceptions to title shown on the respective Title Report for the Properties.

Upon receipt of an Objection Notice, the receiving Party (the “Receiving Party”) shall have a period of ten (10) days after receipt of the objecting Party’s (the “Objecting Party”) Objection Notice in which to deliver written notice to the Objecting Party (“Objection Response”) of the Receiving Party’s election to either (i) agree to remove or cure the objected to items prior to the Close of Escrow, or (ii) decline to remove or cure any such title exceptions and, at the Receiving Party’s discretion, terminate Escrow and this Agreement. If the Receiving Party notifies the Objecting Party of its election to terminate Escrow rather than remove and cure the objected to items, the Objecting Party shall have the right, by written notice delivered to the Receiving Party within ten (10) days after the Objecting Party’s receipt of the Objection Response, to agree to accept the respective Property subject to the objected to items, in which event the Receiving Party’s election to terminate the Escrow shall be of no effect, and the Objecting Party shall take title at the Close of Escrow subject to such objected to items without any adjustment to the Exchange. The Receiving Party may cure any objection by acquiring, at the Receiving Party’s expense, a title insurance endorsement related to the objected to exception, reasonably acceptable to the Objecting Party. Any extension of the time to review the Title Report for a Property subject to an Objection Notice shall only occur in strict accordance with the following paragraph.

2.7 Review of Amendments and Supplements. Upon the issuance of any amendment or supplement to the Title Report by the Receiving Party for a Property which adds additional exceptions, or adds any new requirement, the foregoing right of review and approval by the Objecting Party shall also apply to said amendment or supplement; provided, however, that the 90 46700.12001\34906368.1
Objecting Party’s period of review and approval or disapproval of any such additional exceptions shall be limited to fifteen (15) business days following the Objecting Party’s and its counsel’s receipt of the instrument(s) creating such additional exceptions. The foregoing extension shall only be allowed for and pertain to the review of the new matter and the Objecting Party shall not be entitled to object to any previously known exception or requirement for which the time for objection has expired.

2.8 Removal of Certain Exceptions. Notwithstanding anything else stated in this Agreement, in all events, the Parties shall satisfy and otherwise remove all monetary and financial liens and encumbrances on their respective Property/Properties in existence as of the Effective Date or incurred on or before Closing (other than current taxes, if any not yet due). In addition, the Parties shall, except as may be otherwise specifically set forth in this Agreement, terminate all leases, possessory agreements, licenses, and operating agreements that affect the respective Properties and cause all parties-in-possession title exceptions shown on the Title Report, if any, to be deleted, and neither Party need object to any such matters.

2.9 Governmental Approvals. During the course of the Escrow, each Party shall be entitled to seek all necessary approvals from any applicable governmental authorities, quasigovernmental authorities, and/or utility providers and regulators (collectively, “Governmental Authorities” and the approvals, collectively, the “Government Approvals”) necessary to utilize the Properties they will receive via this Exchange in any way they see fit. The Parties shall reasonably cooperate with each other to support their efforts to obtain each other’s Governmental Approvals and shall timely execute any and all applications, consents, and other documents reasonably requested by the other Party in connection therewith.

3. ESCROW.

3.1 Opening of Escrow. Within five (5) business days following the Effective Date, the Parties shall open an escrow (the “Escrow”) with First American Title Company (“Escrow Holder”), at its offices located at 18500 Von Karman Avenue, Suite 600, Irvine CA 92612, Attn:

Jeanne Gould, Escrow Officer, by causing a fully executed copy of this Agreement to be deposited with Escrow Holder (the “Opening of Escrow”). Escrow Holder shall provide each of the Parties in Section 7.3 with written confirmation of the date of the Opening of Escrow. First American Title Company (the “Title Company”) shall also provide title insurance services related to this Agreement.

3.2 Close of Escrow; Closing Date. Escrow shall close on or prior to the date which is thirty (30) days after the conclusion of the Due Diligence Period, unless mutually extended by both Parties, provided that the conditions to Closing described in Section 4 below have been satisfied or waived (the “Closing Date”). The terms the “Close of Escrow”, and/or the “Closing” are used herein to mean the date the Grant Deeds (as the term is defined in Section 3.5 herein) are recorded in the Office of the County Recorder of the County of San Bernardino (the “Official Records”).

3.3 Possession. Respective possession of the Properties shall be delivered to each Party at the Close of Escrow, free and clear of all liens, encumbrances, tenancies, lessees, occupants, 91 46700.12001\34906368.1
licensees, and all possessory rights of any kind or nature, except for any Permitted Exceptions, as set forth and defined in Section 4.1.3.

3.3 Joint Escrow Instructions. This Agreement, together with any standard instructions of Escrow Holder, shall constitute the joint escrow instructions of the Parties to Escrow Holder. In the event of any conflict between the provisions of this Agreement and Escrow Holder’s standard instructions, this Agreement shall prevail.

3.4 Deliveries by City. No later than 1:00 p.m. on the business day preceding the Closing Date, City shall deliver to Escrow Holder:
(a) a grant deed for the View Corridor in the form of Exhibit “C-1” attached to this Agreement (the “View Corridor Grant Deed”), conveying to ULV City’s fee simple title to the View Corridor, duly executed and acknowledged by City;
(b) a Certificate of Acceptance for the ULV Parking Lot Grant Deed (defined below) in the form attached hereto as Exhibit “C-2” attached to this Agreement;
(c) Subject to paragraph 1.2, a grant deed for the property and site referred to herein as “FS1 Site” in the form of Exhibit “C-3” attached to this Agreement (the “FS1 Site Grant Deed”), conveying to ULV City’s fee simple title to the FS1 Site, duly executed and acknowledged by City; (d) a Certificate of Non-Foreign Status in the form attached hereto as Exhibit “C-4”;
(e) a California Franchise Tax Board Form 590-RE;
(f) any and all other documents required by Escrow Holder to carry out and close the Escrow pursuant to this Agreement, including City’s portion of Escrow fees and prorations, if any.

3.5 Deliveries by ULV. No later than 1:00 p.m. on the business day preceding the Closing Date, ULV shall deliver to Escrow Holder:
(a) a grant deed in the form of Exhibit “D” attached to this Agreement (the “ULV Parking Lot Grant Deed” conveying to City ULV’s fee simple title to the ULV Parking Lot, duly executed and acknowledged by ULV; (b) All other documents required by Escrow Holder to carry out and close the Escrow pursuant to this Agreement, including ULV’s portion of Escrow fees and prorations, if any.

3.6 Closing, Recording and Disbursements. On or before the Closing Date, and when 92 46700.12001\34906368.1
all of the conditions precedent to the Close of Escrow set forth in Section 4 of this Agreement have been satisfied or waived in writing, Escrow Holder shall take the actions set forth in this Section

3.6. 3.6.1 Recording. Escrow Holder shall cause the Grant Deeds to be recorded in the Official Records.

3.6.2 Title Policy. Escrow Holder shall deliver to both Parties a commitment to issue Title Policies for the respective Properties, as referred to in Section 4.1.3 of this Agreement.

3.6.3 Delivery of Documents. Escrow Holder shall deliver to the respective Parties a conformed copy of the respective Grant Deeds, and any other documents (or copies thereof) deposited by the other Party with Escrow Holder pursuant to this Agreement. The originals of the Grant Deeds shall be returned to the respective Parties after recordation.

3.6.4 Real Property Taxes. All non-delinquent general and special real property taxes and assessments shall be prorated as of the Close of Escrow.

3.7 Payment of Costs. The Parties shall be responsible for payment of all applicable documentary transfer taxes and costs associated with recording the Grant Deeds for the respective Properties they are acquiring. The Parties shall also be responsible for all title insurance premiums for the respective CLTA standard owner’s form policy for the respective Properties they are acquiring, as well as all charges associated with the title insurance premiums for any additional cost of obtaining any additional coverage requested by a Party, including the difference between a CLTA standard owner’s policy and an ALTA extended owner’s policy. The Parties shall share the Escrow fees or Escrow Holder’s termination fees, as applicable, 50-50, unless the termination is caused by one Party’s default (pursuant to Section 6), in which case the defaulting Party shall be liable for all outstanding Escrow fees, including Escrow termination fees. The Parties shall, subject to Section 7.2, each be responsible for their respective attorneys’ fees. All other costs of Escrow not specifically allocated in this Agreement shall be shall split equally among the Parties.

4. CONDITIONS PRECEDENT TO CLOSE OF ESCROW.

4.1 Conditions to ULV’s Obligations. ULV’s obligation to close the Exchange shall be subject to the satisfaction or written waiver by ULV of each of the conditions precedent set forth in this Section 4.1.

4.1.1 City’s Performance. City is not in default of any term or condition of this Agreement. In the event ULV alleges that City is in default, ULV shall notify City in writing and describe the alleged default in detail. City shall have a reasonable time, but not less than fifteen (15) days, to cure any alleged default.

4.1.2 City Deliveries Made. City has deposited with Escrow Holder all documents required of City by this Agreement.

4.1.3 Title Policy. Title Company has committed to issue to ULV a CLTA 93 46700.12001\34906368.1
standard, or at ULV’s choice, an ALTA extended coverage owner’s policy of title insurance (“Title Policy”), showing fee title to the City-Exchange Properties vested in ULV, subject only to:
(a) the standard printed exceptions and exclusions contained in the form of the Title Policy commonly used by Title Company;
(b) title exceptions approved by ULV pursuant to Section 2.6 and 2.7 of this Agreement;
(c) title exceptions resulting from documents being recorded or delivered through Escrow pursuant to this Agreement; and (d) any other exceptions approved in writing by ULV in its sole and absolute discretion.

The terms of sub-sections (a) through (d), inclusive, being herein collectively referred to as “Permitted Exceptions.”

4.1.4 Representations and Warranties. All representations and warranties made by City in this Agreement, to the best of City’s actual knowledge, are true and correct as of the Closing as though made at that time.

4.2 Conditions to City’s Obligations. City’s obligation to close the Exchange shall be subject to the satisfaction or written waiver by City of each of the conditions precedent set forth in this Section 4.2.

4.2.1 ULV’s Performance. ULV is not in default of any term or condition of this Agreement. In the event City alleges that ULV is in default, City shall notify ULV in writing and describe the alleged default in detail. ULV shall have a reasonable time, but not less than fifteen (15) days, to cure any alleged default.

4.2.2 ULV Deliveries Made. ULV has deposited with Escrow Holder all documents required of ULV by this Agreement.

4.2.3 Title Policy. Title Company has committed to issue to City a CLTA standard, or at City’s choice, an ALTA extended coverage owner’s policy of title insurance (“Title Policy”), showing fee title to the ULV Parking Lot vested in City, subject only to:
(a) the standard printed exceptions and exclusions contained in the form of the Title Policy commonly used by Title Company;
(b) title exceptions approved by City pursuant to Section 2.6 and 2.7 of this Agreement;
(c) title exceptions resulting from documents being recorded or delivered through Escrow pursuant to this Agreement; and 94 46700.12001\34906368.1
(d) any other exceptions approved in writing by City in its sole and absolute discretion.

The terms of sub-sections (a) through (d), inclusive, being herein collectively referred to as “Permitted Exceptions.”

4.2.4 Representations and Warranties. All representations and warranties made by ULV in this Agreement, to the best of ULV’s actual knowledge, are true and correct as of the Closing as though made at that time.

4.2.5 No Challenges. There shall not be pending any challenge to the validity of this Agreement or the Exchange contemplated herein, including but not limited to any challenges pursuant to the Surplus Land Act.

4.3 Hazardous Materials; Environmental Compliance. As a result of the Parties’ respective inspections pursuant to Section 2.3 herein, each Party intends to satisfy itself that the Properties, as applicable, are not in violation of any federal, state, or local law, ordinance, or regulation relating to Hazardous Materials, industrial hygiene, or to the environmental conditions on, under, or about the respective Properties, or any portion thereof, including, but not limited to, soil and groundwater conditions (together, “Environmental Laws”). If, at any time prior to the expiration of the Diligence Period, a Party determines that a Property it is intending to acquire, or any portion thereof, is in violation of said Environmental Laws, such Party may elect to terminate this Agreement and cancel the Escrow by delivering written notice to that effect to the other Party and Escrow Holder, thereby rendering this entire Agreement invalid, void, and unenforceable. The term “Hazardous Materials” when used in this Agreement shall mean any hazardous waste, hazardous substance, hazardous materials or toxic substances as defined, as of the Closing Date, in any federal, state, or local statute, ordinance, rule, or regulation applicable to the Property, including, without limitation, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (Title 42 United States Code sections 9601-9675), the Resource Conservation and Recovery Act (Title 42 United States Code sections 6901-6992k), the Carpenter-Presley-Tanner Hazardous Substance Account Act (Health and Safety Code sections 25300-25395), Hazardous Waste Control Law (Health and Safety Code section 25100-25250.25); the Hazardous Materials Transportation Act, as amended (Title 49 United States Code Sections 1801-1819); and any substance defined as “hazardous waste” in Health and Safety Code Section 25117 or as a “hazardous substance” in Health and Safety Code Section 25316, and in the regulations adopted and publications promulgated under these laws. “Hazardous Materials” shall also include asbestos or asbestos-containing materials, radon gas, and petroleum or petroleum fractions, whether or not defined as a hazardous waste or hazardous substance in any such statute, ordinance, rule, or regulation as of the Closing Date.

4.4 Satisfaction of Conditions. Where satisfaction of any of the foregoing conditions requires action by a Party, such Party shall use its diligent best efforts, in good faith, and at its own cost, to satisfy such condition. Where satisfaction of any of the foregoing conditions requires the approval of a Party, such approval shall be granted in such Party’s sole and absolute discretion. 95 46700.12001\34906368.1

4.5 Waiver. The Parties may at any time or times, at their respective election, waive any of the conditions set forth in Sections 4.1 or 4.2, as applicable, but any such waiver shall be effective only if contained in a writing signed by the waiving Party and delivered to the other Party.

4.6 Termination. Subject to Section 6.1, in the event all of the conditions set forth in Sections 4.1 and 4.2 are not timely satisfied or waived, the Party whose conditions are not satisfied may, at its option, terminate this Agreement and the Escrow (unless the failure of such condition is due to a default on the part of City in which case ULV may exercise the remedies set forth in Section 6 below), thereby releasing the Parties from further obligations related to the Exchange of the Properties hereunder. Furthermore, in the event this Agreement is terminated by either Party, all documents delivered by any Party to Escrow Holder shall be returned within a reasonable time to the original Party. Nothing in this Section 4.6 shall be construed as releasing any Party from liability for any default of its obligations hereunder or breach of its representations and warranties under this Agreement occurring prior to the termination of this Agreement and/or the Escrow to be opened hereunder.

5. REPRESENTATIONS AND WARRANTIES-BROKERAGE COMMISSIONS.

5.1 Representations and Warranties. The Parties hereby make the following representations and warranties to one another, each of which (i) is material and relied upon by the other in making their respective determinations to enter into this Agreement, (ii) is to the best of each Party’s actual knowledge true in all respects as of the Effective Date and shall be true in all respects on the Closing Date, and (iii) shall survive the Close of Escrow for one (1) year:
(a) Each Party has the full right, power, and authority to enter into this Agreement and to perform ULV’s obligations hereunder. This Agreement and all other documents delivered by one Party to the other now or at the Close of Escrow, have been or will be duly executed and delivered by such Party and are legal, valid, and binding obligations of such Party, sufficient to convey to the other Party good and marketable title to the respective Properties, are enforceable in accordance with their respective terms, and do not materially violate any provision of law or any agreement to which such Party is a party.
(b) Other than those matters actually known and disclosed by the Parties as of the Effective Date, there are no pending or known threatened actions, suits, writs, injunctions, decrees, legal proceedings or governmental investigations against or affecting the Properties or relating to the ownership, maintenance, use or operation of the Properties. (c) Other than those matters actually known and disclosed by the Parties as of the Effective Date, neither Party has received any written notices nor has any actual knowledge of any violation of any laws, ordinances, rules, regulations or requirements of any Governmental Authority affecting or relating to the Properties.
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(d) Other than those matters actually known and disclosed by the Parties as of the Effective Date, there are no written leases, rights of first refusal, or other agreements relating to the right of possession and/or occupancy of any of the Properties by any person or entity, except for matters of record approved by such Party pursuant to Sections 2.6 and 2.7 above.
(e) Other than those matters actually known and disclosed by the Parties as of the Effective Date, to the best of each Party’s actual knowledge, neither the Properties nor the Parties are in violation of any applicable Federal, State or local statute, ordinance, order, requirement, law, or regulation materially adversely affecting the Properties or construction of any improvement thereon. Neither Party has received a written notice of any such violation of applicable law. The Parties shall make their own independent determination of the feasibility of the use of the respective Properties they seek to acquire for their intended use.
(f) Neither Party has personally caused or knowingly permitted any contamination by Hazardous Materials (as defined in Section 4.3 of this Agreement) to occur on, at, about, or within their respective Properties, or any portion thereof, or otherwise knows of any such contamination of Hazardous Materials on, at, about, or within their respective Properties, or any portion thereof.

5.2 Duty to Notify of Changed Circumstances; “Knowledge”. If either Party becomes aware of any act or circumstance which would change or render incorrect, in whole or in part, any representation or warranty made by such Party, whether as of the Effective Date or any time thereafter through the Closing Date, such Party will give immediate written notice of such changed fact or circumstance to the other Party, but such notice shall not release the noticing Party of any liabilities or obligations with respect thereto. In the event a Party delivers such notice, the other Party shall have the right, upon written notice, to terminate this Agreement. For purposes of this Agreement, the knowledge requirement shall be based on actual written notice to each Party’s designated person in a form which would provide actual notice to a person without a duty of inquiry. ULV’s designated person is solely limited to ________________, personally, and does not include his or any of ULV’s agents, advisors or consultants. City’s designated person is solely limited to _____________, personally, and does not include his/her or any of City’s agents, advisors or consultants. The Parties’ respective designated persons shall incur no personal liability for any breach or alleged breach under this Agreement.

5.3 Brokerage Commissions. The Parties hereby each represent and acknowledge that neither Party has hired or otherwise engaged in an agreement with a broker or other party who is entitled to a commission or payment based on the transactions set forth herein. The Parties hereby indemnify and hold the other free and harmless from and against any and all costs and liabilities including, without limitation attorneys’ fees, for causes of action or proceedings which may be instituted by a broker, agent or finder, licensed or otherwise, claiming through, under or by reason of the conduct of the indemnifying Party in connection with this Agreement. The foregoing representation and indemnity shall survive the termination of this Agreement. 97 46700.12001\34906368.1

6. DEFAULT. In the event either Party defaults under any of the terms and provisions of this Agreement (and such default continues for a period of ten (10) business days following receipt of written notice of such default from the non-breaching Party), the non-breaching Party shall have the right, but not the obligation, as its sole remedy for such default, to terminate this Agreement and the Escrow created hereby. In the event of such termination, the breaching Party shall deliver to the non-breaching Party all work product prepared by or on behalf of the breaching Party with respect to the Properties which the breaching Party would have received in the Exchange, but excluding internally prepared financial analyses, work product subject to proprietary rights of third parties and the attorney work product doctrine, and any documents protected by attorney client privilege, and without representation or warranty or right to rely thereon.

7. ADDITIONAL TERMS AND CONDITIONS

7.1 View Corridor. Within 36 months of the Effective Date (the “Application Period”), ULV shall submit to the City a proposed site plan design showing all proposed improvements on the View Corridor. The City Planning Department will then inform ULV, based on upon the site plan, on the necessary submittals. If ULV fails to submit a viable site plan within the Application Period, (i) ULV shall, upon written demand by the City, convey fee title to the View Corridor back to the City.

7.2 Option Property. Subject to timely submission of the Improvement Application to the City pursuant to Section 7.1, the City grants an option (“Option”) to ULV to purchase the Option Property at any time within five (5) years of the Effective Date (the “Option Period”). ULV may exercise the Option, at its sole discretion, by sending written notice to the City during the Option Period. The purchase and sale of the Option Property shall be subject to the terms and conditions of a separate agreement (the “Option Property Sale”). The purchase price of the Option Property shall be based on the fair market value of the Option Property, as based on the appraisal commissioned by the City prior to the Effective Date.

7.3 Financing. The City agrees in principle to lend ULV up to Forty Million Dollars ($40,000,000) (the “Loan”) to partially finance the ULV Expansion Project, pursuant to the terms and conditions of a separate loan agreement (the “Loan Agreement”), promissory note and security instrument (together with the Loan Agreement, the “Loan Documents”). The details of financing, including the source of the Loan, the terms (including estimated debt service, repayment term, and interest rate), and the scope and particulars of the collateral that ULV will be required to provide to the City to secure the Loan, shall all be negotiated and memorialized in the Loan Documents.

Notwithstanding the subsequent negotiation of the separate Loan Agreement as identified in this paragraph, the City and ULV understand and agree that the consideration for this Agreement is based on the Loan Agreement including non-negotiable terms such as a five (5) year deferral of any payments owed during the first five (5) years of any required debt service payments, where any and all unpaid interest for each annual period deferred is added to the principal amount and the following period interest is calculated upon the accrued amount, as well as an interest rate that is 200 basis points above what the City realized in the previous 12 months in the portfolio, which consists of Securities and Local Agency Investment Funds (LAIF); referenced as “City Invested Funds” in the City Treasurer’s Report.
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7.4 ULV College of Health. Assuming the City conveys the FS1 Site to ULV pursuant to Section 1.2 herein, ULV shall submit to the City a Development Plan Discretionary Entitlement Application. Notwithstanding the reference to College of Health Parking in Recital E, the development plan for the College of Health shall be required to meet all Development Code standards, regulations and parking requirement for the MU-1 (Downtown Mixed Use) zoning district. A request in the reduction of required parking will require a parking demand analysis study to be prepared. A parking reduction, based upon low parking demand, may be allowed upon the approval of a Low Demand Parking Reduction Agreement by the applicable Approving Authority pursuant to Table 2.02-1 (Review Matrix) of the Ontario Development Code. It is mutually agreed that the City will use its good faith efforts to identify the necessary parking within the City’s downtown area to help offset the potential reduction in parking. All applicable entitlement application and development impact fees (DIF), shall be paid at time of entitlement application submittal and at permit issuance (DIF) for the construction of the development.

7.5 ULV Parking Lot/Lot Split. The City at its sole cost, shall obtain a lot split for the property commonly known as 320 East “D” Street (APN: 1048-541-15) for the purpose of obtaining a single legal parcel referred to herein as the ULV Parking Lot which is identified in Exhibit “A-1” (hereinafter “Lot Split”). City will use reasonable efforts to ensure that ULV and the ULV College of Law vehicular and pedestrian access to the building and other portions of the ULV College of Law site.

7.6 Survival. All of the foregoing provisions in this Section 7 shall survive the Close of Escrow but not the termination of this Agreement.

8. MISCELLANEOUS.

8.1 Costs of Conveyance. All costs related to each Party’s due diligence inspections and testing, and production of and/or reproduction of the Due Diligence Materials shall be the sole responsibility of the Party expending such costs.

8.2 Attorneys’ Fees; Litigation. If any arbitration or action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party (including on appeal) shall be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any other relief to which such Party may be entitled.

8.3 Notices. All notices required to be delivered under this Agreement to the other Party must be in writing and shall be effective (i) on the date of personally delivery by the other Party, by messenger or by courier; (ii) three (3) business days after deposit in the United States mail, registered or certified; (iii) twenty-four (24) hours after deposit before the daily deadline time with a reputable overnight courier or service; or (iv) upon receipt of an email, provided a hard copy of such transmission shall be thereafter delivered in one of the methods described in the foregoing (i) through (iii); in each case postage fully prepaid and addressed to the respective Parties as set forth below or to such other address and to such other persons as the Parties may hereafter designate by written notice to the other Party hereto:
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To ULV: University of La Verne
Attn: ______________
1950 3rd Street
La Verne, CA 91750
Attn: President, Dr. Devorah Lieberman
Avo Kechichian
To City: City of Ontario
Scott Ochoa, City Manager
303 East “B” Street
Ontario, CA 91764
With A Copy To: Best Best & Krieger LLP
2855 E. Guasti Road, Suite 400
Ontario, CA 91761
Attn: Ruben Duran, City Attorney

8.4 Authority. The person(s) executing this Agreement on behalf of the Parties hereto warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other agreement to which said Party is bound.

8.5 Execution in Counterparts. This Agreement may be executed in several counterparts, and all so executed shall constitute one agreement binding on all Parties hereto, notwithstanding that all Parties are not signatories to the original or the same counterpart.

8.6 Assignment. Neither Party hereto may assign its rights or delegate its obligations hereunder without the prior written consent of the other Party.

8.7 Third Party Beneficiaries. Nothing in this Agreement shall be construed to confer any rights upon any person or entity not signatory to this Agreement.

8.8 Binding on Heirs. This Agreement shall be binding upon the Parties hereto and their respective heirs, representatives, transferees, successors, and assigns.

8.9 Time of the Essence. Time is of the essence with respect to each of the terms, covenants, and conditions of this Agreement.

8.10 Condemnation and Casualty. In the event the Property are (i) taken, in whole or in part, or designated to be taken by condemnation proceedings other than condemnation proceedings instigated by the City, or proceedings in lieu thereof, or (ii) damaged as a result of any earthquake, hurricane, tornado, flood, sinkhole, landslide, fire, or other casualty, prior to the Close of Escrow, each Party shall have the right to terminate this Agreement and cancel Escrow by delivering to the other Party and Escrow Holder written notice thereof.
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8.11 Entire Agreement, Waivers and Amendments. This Agreement and any written agreement entered into by the Parties with respect to the Property, incorporate all of the terms and conditions mentioned herein, or incidental hereto, and supersede all negotiations and previous agreements between the Parties with respect to all or part of the subject matter thereof. All waivers of the provisions of this Agreement must be in writing and signed by the appropriate authorities of the Party to be charged. Any amendment or modification to this Agreement must be in writing and executed by both Parties. The City Manager of the City, in consultation with the City Attorney, shall determine whether any such amendment or modification requires City Council approval.

Amendments and modifications of this Agreement that only extend the time for the Parties to complete actions prior to the Closing Date or extend the Closing Date shall not require City Council approval.

8.12 Exhibits. All exhibits attached to this Agreement are incorporated herein by this reference and made a part hereof. Said Exhibits are identified as follows:
“A” LEGAL DESCRIPTION OF ULV PROPERTY
“A-1” LEGAL DESCRIPTION OF ULV PARKING LOT (LOT SPLIT)
“B-1” LEGAL DESCRIPTION OF VIEW CORRIDOR
“B-2” LEGAL DESCRIPTION OF FS1 SITE
“B-3” LEGAL DESCRIPTION OF OPTION PROPERTY
“C-1” VIEW CORRIDOR GRANT DEED
“C-2” CERTIFICATE OF ACCEPTANCE – ULV PARKING LOT GRANT DEED
“C-3” FS1 SITE GRANT DEED
“C-4” ULV NON-FOREIGN AFFIDAVIT
“D” ULV PARKING LOT GRANT DEED

8.13 Effect of Recitals. The Recitals above are deemed true and correct, are hereby incorporated into this Section as though fully set forth herein, and the Parties acknowledge and agree that they are each bound by same.

8.14 Section References. Any reference to any section of this Agreement cited without a decimal includes all sections following the cited section. For example, a reference to Section 5 includes Sections 5.1, 5.1(a), etc.

8.15 Severability. If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way.

8.16 Interpretation: Governing Law; Venue. This Agreement shall be construed according to its fair meaning and as if prepared by both Parties hereto. This Agreement shall be construed in accordance with the laws of the State of California in effect on the Effective Date with venue in San Bernardino County, California.

8.17 Covenants to Survive Escrow. The covenants and agreements contained in this Agreement shall survive the Close of Escrow.
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8.18 Conflicts of Interest. No director, officer, official, representative, agent or employee of either Party shall have any financial interest, direct or indirect, in this Agreement.

8.19 Nondiscrimination. There shall be no discrimination by the Parties against any person on account of race, color, religion, sex, marital status, national origin, ancestry, or any other protected class under the Constitution of the State of California or of the United States in the performance of their respective obligations under this Agreement.

8.20 Rights and Remedies are Cumulative. Except as may be otherwise expressly stated in this Agreement, the rights and remedies of the Parties are cumulative, and the exercise by any Party of one or more of its right or remedies shall not preclude the exercise by it, at the same time or at different times, of any other rights or remedies for the same default or any other default by another Party.

8.21 Provisions Required by Law Deemed Inserted. Each and every provision of law and clause required by law to be inserted in this Agreement shall be deemed to be inserted herein and the Agreement shall be read and enforced as though it were included herein, and if through mistake or otherwise, any such provision is not inserted, or is not correctly inserted, then upon application of either Party, the Agreement shall forthwith be physically amended to make such insertion or correction. The foregoing shall not be read in a manner which works to strike or modify a negotiated term of this Agreement.

8.22 Cooperation. The Parties acknowledge that it may be necessary to execute documents other than those specifically referred to herein in order to complete the Exchange and/or to accomplish the objectives and requirements that are set out in this Agreement. Both Parties hereby agree to cooperate with each other by executing such other documents or taking such other actions as may be reasonably necessary to complete this transaction in accordance with the intent of the Parties as evidenced in this Agreement and attached Exhibits hereto. [Signatures on Following Page]
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IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their respective duly authorized officers, as of the Effective Date.

ULV:

UNIVERSITY OF LA VERNE
By:___________________________
Its:____________________________
CITY:

CITY OF ONTARIO
By: _________________________________
Its: _________________________________
ATTEST:
_____________________________
City Clerk
APPROVED AS TO FORM:
[INSERT FIRM NAME]
By:_____________________________
[INSERT NAME AND TITLE]
APPROVED AS TO FORM:

By:_____________________________
City Attorney, BEST BEST & KRIEGER
LLP
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EXHIBIT “A”

LEGAL DESCRIPTION OF ULV PROPERTY
[To Be Inserted]
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EXHIBIT “A-1”

LEGAL DESCRIPTION OF ULV PARKING LOT (LOT SPLIT)
EXHIBIT “B-1”
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LEGAL DESCRIPTION OF VIEW CORRIDOR
[To Be Inserted]
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EXHIBIT “B-2”
LEGAL DESCRIPTION OF FS1 SITE
[To Be Inserted]
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EXHIBIT “B-3”

LEGAL DESCRIPTION OF OPTION PROPERTY
[To Be Inserted]
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EXHIBIT “C-1”

UNIVERSITY OF LA VERNE
_____________________________________________________________________________________ (Space Above For Recorder’s Use)
The undersigned grantor(s) declare(s):

This conveyance is exempt from the payment of a
documentary transfer tax pursuant to Revenue
and Taxation Code Section 11922.

This document is being recorded for the benefit
of the University of La Verne and is exempt from
the payment of a recordation fee pursuant to
Govt. Code Section 6103.
_____________________________________________________________________________________

GRANT DEED
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the CITY OF ONTARIO, a California municipal corporation, hereby grants to the UNIVERSITY OF LA VERNE, a California corporation duly organized and validly existing under the Constitution and the laws of the State of California, that certain real property located in the City of Ontario, County of San Bernardino, State of California, described in the legal description and depicted in the map attached hereto as Exhibit “A,” and incorporated herein by this reference.

Dated: ______________ _________
By:_____________________________________
Its:______________________________
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EXHIBIT “C-2”

CERTIFICATE OF ACCEPTANCE
(Government Code Section 27281)
This is to certify that the interest in real property conveyed by the Grant Deed dated _______________________, from the UNIVERSITY OF LA VERNE, a California corporation duly organized and validly existing under the Constitution and the laws of the State of California, to the CITY OF ONTARIO, a California municipal corporation, is hereby accepted by the undersigned officer on behalf of the CITY OF ONTARIO pursuant to authority conferred by the California Constitution and City Council action dated ___________, 202_, and the grantee consents to recordation thereof by its duly authorized officer.

Dated: _______________ CITY OF ONTARIO
___________________________________________
ATTEST:
_________________________
City Clerk
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EXHIBIT “C-3”
FS1 GRANT DEED
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EXHIBIT “C-4”

NON-FOREIGN AFFIDAVIT
Section 1445 of the Internal Revenue Code provides that the transferee of an interest in real property located in the United States must withhold tax if the transferor is a foreign person. To inform the CITY OF ONTARIO, a California municipal corporation, (“Transferee”), that withholding of tax is not required upon the sale by the University of La Verne (“Transferor”), of its fee simple interest in that certain real property sold pursuant to the Real Property Exchange Agreement and Joint Escrow Instructions dated ___________________, 202__ (“Agreement”), which real property is described in the legal description attached to the Agreement as Exhibit “A,” and incorporated herein by this reference, the undersigned hereby certifies the following:

1. The Transferor is not a foreign corporation, foreign partnership, foreign trust, or foreign estate (as those terms are defined in the Internal Revenue Code and the income tax regulations promulgated thereunder);

2. The Transferor’s United States Taxpayer Identification Number is _________________;

3. The Transferor’s office address is [address]; and

4. The Internal Revenue Service has not issued any notice with respect to Transferor or listed Transferor as a person whose affidavit may not be relied upon for purposes of Section 1445 of the Internal Revenue Code.

The Transferor understands that this certification may be disclosed to the Internal Revenue Service by Transferee and that any false statement contained herein could be punished by fine, imprisonment or both.

Under penalty 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 am the ___________ of the Transferor, and that I have authority to sign this document on behalf of the Transferor.

Dated: ______________ _________
By:_____________________________________
Its:______________________________
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EXHIBIT “D”

CITY OF ONTARIO
_____________________________________________________________________________________ (Space Above For Recorder’s Use)
_____________________________________________________________________________________

GRANT DEED
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the UNIVERSITY OF LA VERNE, a California corporation duly organized and validly existing under the Constitution and the laws of the State of California, hereby grants to the CITY OF ONTARIO, a California municipal corporation, that certain real property located in the City of Ontario, County of San Bernardino, State of California, described in the legal description and depicted in the map attached hereto as Exhibit “A,” and incorporated herein by this reference.

Dated: ______________ _________
By:_____________________________________
Its:______________________________
114
Department: Economic Development
Prepared By: Charity Hernandez
Staff Member Presenting:

Jennifer McLain Hiramoto, Economic
Development Director
Approved By:

APPRAISAL, PROJECT MANAGEMENT, LAND ACQUISITION, RELOCATION AND

PROPERTY MANAGEMENT SERVICES

CITY OF ONTARIO
Agenda Report
April 19, 2022
SECTION:

CONSENT CALENDAR
RECOMMENDATION: That the City Council (“City”) approve and authorize the City Manager or his designee to execute Amendment No. 3 to Professional Services Agreements with R.P. Laurain & Associates in the amount of $100,000; Integra Realty Resources in the amount of $100,000; Property Specialist Inc., (dba CPSI) in the amount of $200,000; and, Amendment No. 6 to Professional Services Agreements with Transtech Engineers Inc. in the amount of $100,000.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Operate in a Businesslike Manner
Focus Resources in Ontario's Commercial and Residential Neighborhoods FISCAL IMPACT: The Fiscal Year 2021-22 Adopted Budget includes, and any subsequent Adopted Budget shall include, appropriations from General Fund for these services. This proposed amendment will increase all of these on-call services for a total of $500,000. The R.P. Laurain & Associates Agreement not-to-exceed amount will increase from $220,000 to $320,000; Integra Realty Resources Agreement not-to-exceed will increase from $89,900 to $189,900; the Property Specialist Inc., (dba CPSI) Agreement not-to-exceed will increase from $995,813 to $1,195,813; and the Transtech Engineers Inc. Agreement not-to-exceed will increase from $1,478,365 to $1,578,365.

The consultants/firms have agreed to the proposed fixed billing rates and will be compensated for the scope of work at the approved billing rates, as set forth in the subject agreements.

BACKGROUND & ANALYSIS: On August 19, 2019, after an extensive solicitation and procurement selection process, the City entered into on-call Professional Services Agreements with R.P. Laurain & Associates and Integra Realty Resources for appraisal services, and CPSI for land acquisition, relocation and property management services. The selections were based on the firms' experience, knowledge and qualifications.

For project management services, the City entered into an on-call Professional Services Agreement with Transtech Engineers Inc. on October 1, 2019. The selection was after an extensive solicitation 115
and procurement selection process and was based on Transtech's experience, knowledge and qualifications. The Professional Services Agreements detailed above are currently in the third year of a three year term, with each of the Agreements allowing for options to extend for two additional years.

The City continues working on high-profile economic development and redevelopment projects that require the need for land valuation estimates, appraisal reports, property acquisition and relocation activities, and project management assistance. These projects include, but are not limited to, areas on or near Holt Boulevard, Downtown Ontario and east of the the Ontario International Airport.

There is a current need to amend these on-call Professional Services Agreements to increase the not-to-exceed amounts and continue to use these firms to advance ongoing projects with the overall goal of reducing blight, increasing property values and enhancing amenities available to those that travel, live and work in Ontario.
116
Department: Economic Development
Prepared By: Charity Hernandez
Staff Member Presenting:

Jennifer McLain Hiramoto, Economic
Development Director
Approved By:

ARCHITECTURAL AND DESIGN SERVICES

CITY OF ONTARIO
Agenda Report
April 19, 2022
SECTION:

CONSENT CALENDAR
RECOMMENDATION: That the City Council (“City”) approve and authorize the City Manager to execute a First Amendment to a Professional Services Agreements with Thirtieth Street Architects in the amount not to exceed $200,000.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Invest in the Growth and Evolution of the City's Economy Operate in a Businesslike Manner
Invest in the Growth and Evolution of the City's Economy FISCAL IMPACT: The Fiscal Year 2021-22 Adopted Budget includes, and any subsequent Adopted Budget shall include, appropriations from the General Liability Fund for these services. This proposed agreement is not-to-exceed $200,000.

BACKGROUND & ANALYSIS: In November of 2021, the building located at 122 South Vine Avenue suffered fire damage due to an undetermined source. Prior to the fire, City staff had undertaken a work program that included the adaptive reuse of the property as part of the Transformative Climate Community Grant. The proposed project was called the Downtown Ontario Mobility Hub, which was slated to convert the property into a Transit Hub serving Emporia Place and adding connectivity to the existing Omnitrans fixed route service as well as West Valley Connector.

Proposed amenities included bike lockers, a bike repair station, shared education center, and a training and class area with landscaping comprising of California friendly, drought-tolerant plant material.

Given the fire damage, the proposed project needs to be reviewed. The First Amendment to the Professional Services Agreement with Thirtieth Street Architects, Inc. will include architectural, engineering, and landscape design services for the future construction of a new Downtown Ontario Mobility Hub.
117
Department: Police Department
Prepared By: Lizceth Zazueta
Department:

Prepared By: Lizceth Zazueta
Staff Member Presenting:

Mike Lorenz, Chief of Police
Approved By:

COMMENCE THE APPROVAL PROCESS OF THE POLICY PURSUANT TO GOVERNMENT CODE &SECT; 7070 ET. SEQ

CITY OF ONTARIO
Agenda Report
April 19, 2022
SECTION:

CONSENT CALENDAR
RECOMMENDATION: That the City Council receive the proposed military equipment use policy and commence the approval process for the City of Ontario to adopt the policy in accordance with Government Code § 7070 et. seq.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Operate in a Businesslike Manner
Maintain the Current High Level of Public Safety
Pursue City's Goals and Objectives by Working with Other Governmental Agencies FISCAL IMPACT: There is no direct fiscal impact associated with this action.

BACKGROUND & ANALYSIS: Assembly Bill No. 481 (“AB 481”) was approved by Governor Newsom on September 30, 2021 to increase transparency, accountability, and oversight surrounding the use and acquisition of military equipment by state and local enforcement. AB 481 added Chapter 12.8, commencing with Section 7070, to the Government Code. Pursuant to Government Code section 7070 et. seq., the Ontario City Council must approve a publicly released, written military equipment use policy (“Policy”). The Policy must include the type, quantity, capabilities, purposes, and authorized uses of each type of military equipment owned by the law enforcement agency.

Additionally, the Policy must include the acquisition and maintenance costs of the equipment, as well as the training required by any officer allowed to use the military equipment. The Policy must also include mechanisms to enforce the Policy and procedures for members of the public to register complaints or concerns about the use of military equipment.

City Council must adopt the Policy by ordinance after a public hearing at a regular meeting held pursuant to the Brown Act. Before City Council adopts the Policy, the Policy must be posted on the Ontario Police Department website at least thirty (30) days before the public hearing. In compliance with Government Code section 7071(a)(2), the Ontario Police Department made the Policy available on the City’s website at https://www.ontarioca.gov/Police on April 15th, 2022, and is providing the 118
proposed Policy to City Council as an attachment to this staff report, thereby commencing the approval process of the proposed Policy.
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Published with permission by Ontario Police Department ***DRAFT*** Military Equipment - 1 Military Equipment
708.1 PURPOSE AND SCOPE
The purpose of this policy ("Policy") is to provide guidelines for the approval, acquisition, and reporting requirements of military equipment pursuant to Assembly Bill 481 ("AB 481") (California Government Code section 7070, et seq.).
708.1.1 DEFINITIONS
Definitions related to this Policy include those provided in Government Code section 7070, and as follows:

Governing body – The City of Ontario City Council ("City Council").

Military equipment – Includes but is not limited to the following:
• Unmanned, remotely piloted, powered aerial or ground vehicles. • Mine-resistant ambush-protected ("MRAP") vehicles or armored personnel carriers. • High mobility multipurpose wheeled vehicles ("HMMWV)", two-and-one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached.
• Tracked armored vehicles that provide ballistic protection to their occupants. • Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units. • Weaponized aircraft, vessels, or vehicles of any kind. • Battering rams, slugs, and breaching apparatuses that are explosive in nature. This does not include a handheld, one-person ram.
• Firearms and ammunition of.50 caliber or greater, excluding standard-issue shotguns and standard-issue shotgun ammunition.
• Specialized firearms and ammunition of less than.50 caliber, including firearms and accessories identified as assault weapons in Penal Code section 30510 and Penal Code section 30515, with the exception of standard-issue firearms. • Any firearm or firearm accessory that is designed to launch explosive projectiles. • Noise-flash diversionary devices and explosive breaching tools. • Munitions containing tear gas or OC, excluding standard, service-issued handheld pepper spray.
• TASER® Shockwave, microwave weapons, water cannons, and long-range acoustic devices ("LRADs").
• Kinetic energy weapons and munitions.
• Any other equipment as determined by the City Council to require additional oversight. 120
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Copyright Lexipol, LLC 2022/04/12, All Rights Reserved.

Published with permission by Ontario Police Department ***DRAFT*** Military Equipment - 2 708.2 POLICY
It is the Policy of the City of Ontario Police Department ("Department") that members of this Department comply with the provisions of Government Code section 7070 et seq. with respect to the funding, acquisition, and use of military equipment. 708.3 MILITARY EQUIPMENT COORDINATOR
The Chief of Police will designate a member of this Department to act as the military equipment coordinator. The responsibilities of the military equipment coordinator include but are not limited to:
(a) Acting as liaison to the City Council for matters related to the requirements of this Policy.
(b) Identifying Department equipment that qualifies as military equipment in the current possession of the Department, or equipment the Department intends to acquire, that requires approval by the City Council.
(c) Conducting an inventory of all military equipment annually. (d) Collaborating with any allied agency that may use military equipment within the jurisdiction of the Department.
(e) Preparing for, scheduling, and coordinating the annual community engagement meeting to include:

1. Publicizing the details of the meeting; and

2. Preparing for public questions regarding the Department's funding, acquisition, and use of equipment.
(f) Preparing the annual military equipment report for submission to the Chief of Police and ensuring that the report is made available on the Ontario Police Department website (Government Code § 7072).
(g) Establishing the procedure for a person to register a complaint or concern, or how that person may submit a question about the use of a type of military equipment, and how the Department will respond in a timely manner.
708.4 MILITARY EQUIPMENT INVENTORY
The list of qualifying military equipment for the Department is attached to this Policy. 708.5 APPROVAL
The Chief of Police or the authorized designee shall obtain approval from the City Council by way of an ordinance adopting the Policy. As part of the approval process, the Chief of Police or the authorized designee shall ensure the proposed Policy is submitted to the City Council and is available on the Department website at least thirty (30) days prior to any public hearing concerning the military equipment at issue. The Policy must be approved by the governing body prior to engaging in any of the following:
a) Requesting military equipment made available pursuant to 10 USC § 2576(a). 121
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Published with permission by Ontario Police Department ***DRAFT*** Military Equipment - 3 b) Seeking funds for military equipment, including but not limited to applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers. c) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.
d) Collaborating with another law enforcement agency in the deployment or other use of military equipment within the jurisdiction of this Department.
e) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the City Council.
f) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of military equipment.
g) Acquiring military equipment through any means not provided above. 708.6 COORDINATION WITH OTHER JURISDICTIONS
Military equipment used by any member of this Department shall be approved for the use and in accordance with this Department Policy. Military equipment used by other jurisdictions that are providing mutual aid to the City of Ontario, or otherwise engaged in law enforcement operations in this City, shall comply with their respective military equipment use policies in rendering mutual aid or carrying out a law enforcement function related to a criminal matter under their investigation.

Situations may arise where the Department may deploy or use military equipment, as defined, owned by other law enforcement agencies. The Department hereby adopts the Military Equipmentpolicy, which may be amended from time to time, under Government Code section 7070 et seq., for jurisdictions that the Department may engage with to provide mutual aid. This section is in no way a limitation to the ability of the Department to deploy or use the military equipment of another jurisdiction.
708.7 COMPLIANCE
Department members are bound to adhere to this Policy, in addition to state and local laws and ordinances when employing the use of military equipment at any time. Violations of the law or this Policy may result in criminal or administrative investigations, or action. 708.8 COMPLAINT PROCESS
Members of the public may register complaints or concerns or submit questions about the use of each specific type of military equipment in this Policy by any of the following means:

1. Via email to: [email protected]

2. Via phone call to: (909) 395-2001
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Published with permission by Ontario Police Department ***DRAFT*** Military Equipment - 4

3. Via mail sent to: Ontario Police Department
Attn: Military Equipment Use Coordinator
2500 S. Archibald Avenue
Ontario, CA 91761
The Department is committed to responding to complaints, concerns and/or questions received through any of the above methods in a timely manner.
708.9 ANNUAL REPORT
Upon approval of this Policy, the Chief of Police or the authorized designee will submit a military equipment report to the City Council for each type of military equipment approved within one year of approval of the Policy, and annually thereafter for as long as the military equipment is available for use.

The Chief of Police or the authorized designee should also make each annual military equipment report publicly available on the Department website for as long as the military equipment is available for use. The report shall include all information required by Government Code section 7072 for the preceding calendar year for each type of military equipment in the Department's inventory.
708.10 COMMUNITY ENGAGEMENT
Within thirty (30) days of submitting and publicly releasing the annual report, the Department shall hold at least one well-publicized and conveniently located community engagement meeting, at which the Department should discuss the report and respond to public questions regarding the funding, acquisition, or use of military equipment.
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Ontario Police Department Military Equipment Inventory
I. PURPOSE
This Department procedure establishes guidelines for the use, training, approval, and procurement of existing military equipment and future military equipment acquisitions in accordance with California Assembly Bill 481 (AB 481), codified in California Government Code sections 7070-7075. Additionally, this procedure outlines the fiscal impact and specific descriptions of existing military equipment within the Department’s inventory.

II. SCOPE
This procedure applies to all members of the Department.

III. DEFINITIONS
Pursuant to AB 481, the following definitions are applicable only to the Department’s current military equipment inventory and potential future military equipment acquisitions for operational needs. (For a more detailed list refer to Government Code Section 7070, for “military equipment” as defined within the assembly bill.) A. “Governing body” means the City Council and Mayor.

B. “Military equipment” means the following:

1. Unmanned, remotely piloted, powered aerial or ground vehicles.

2. Armored personnel carriers and/or armored vehicles with breaching apparatus.

3. High mobility multipurpose wheeled vehicles (HMMWV), commonly referred to as Humvees, two and one-half-ton trucks.

4. Tracked armored vehicles that provide ballistic protection to their occupants and utilize a tracked system instead of wheels for forward motion.

5. Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units.

6. Weaponized aircraft, vessels, or vehicles of any kind.

7. Battering rams, slugs, and breaching apparatuses that are explosive in nature.

8. Firearms of .50 caliber or greater. However, standard issue shotguns are specifically excluded from this definition.

9. Ammunition of .50 caliber or greater. However, standard issue shotgun ammunition is specifically excluded from this definition.

10. Specialized firearms and ammunition of less than .50 caliber, including assault weapons as defined in Sections 30510 and 30515 of the Penal Code, with the exception of standard issue service weapons and ammunition of less than .50 caliber that are issued to sworn members.

11. Any firearm or firearm accessory that is designed to launch explosive projectiles. 124

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12. ‘Flashbang’ grenades and explosive breaching tools, ‘tear gas’ and ‘pepperballs’ excluding standard, service-issued handheld pepper spray.

13. Taser Shockwave, microwave weapons, water cannons, and the Long-Range Acoustic Device (LRAD).

14. The following projectile launch platforms and their associated munitions: 40mm projectile launchers, and specialty impact munition (SIM) weapons.

C. “Military equipment use policy” refers to this Department Procedure and means a publicly released, written document governing the use of military equipment by the Department that addresses, at a minimum, all of the following:

1. A description of each type of military equipment, the quantity sought, its capabilities, expected lifespan, and product descriptions from the manufacturer of the military equipment.

2. The purposes and authorized uses for which the Department proposes to use each type of military equipment.

3. The fiscal impact of each type of military equipment, including the initial costs of obtaining the equipment and estimated annual costs of maintaining the equipment.

4. The legal and procedural rules that govern each authorized use.

5. The training, including any course required by the Commission on Peace Officer Standards and Training, that must be completed before any sworn member is allowed to use each specific type of military equipment to ensure the full protection of the public’s welfare, safety, civil rights, and civil liberties and full adherence to the military equipment use policy.

6. The mechanisms to ensure compliance with the military equipment use policy, including which independent persons or entities have oversight authority, and, if applicable, what legally enforceable sanctions are put in place for violations of the policy.

7. The procedures by which members of the public may register complaints or concerns or submit questions about the use of each specific type of military equipment, and how the Department will ensure that each complaint, concern, or question receives a response in a timely manner.

D. “Law enforcement agency” means any of the following:

1. A police department, including the police department of a transit agency, school district, or any campus of the University of California, the California State University, or California Community Colleges.

2. A sheriff’s department.

3. A district attorney’s office.

4. A county probation department.
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IV. MILITARY EQUPIMENT TYPES AND USAGE GUIDELINES
The Police Department recognizes that critical incidents are unpredictable and can be very dynamic in nature. A variety of military equipment options can greatly assist incident commanders, officers, and specific units in bringing those incidents to a swift resolution in a safe manner. The use of military equipment is restricted for use only in certain instances and in some cases only by certain units. While this procedure is wideranging, it is not all inclusive. There may be instances wherein unpredictable critical incidents demand the need for incident commanders to authorize military equipment to be used in a manner not outlined within this procedure. In scrutinizing those particular instances, the judgment of the incident commander influenced by the totality of the circumstances, public safety, officer safety, civil rights, and information available at the time will be used.

It is incumbent upon incident commanders, supervisors, individual officers, and specific units to recognize the particular circumstances wherein military equipment should be employed to enhance the safety of the public and officers, and to bring a critical incident to a safe resolution.

The following are the various types, descriptions, and guidelines for usage of military equipment currently employed by the Police Department.

A. Unmanned remotely piloted, powered aerial or ground vehicles

1. Small Unmanned Aircraft Systems (sUAS): An unmanned aircraft of any type that is capable of sustaining directed flight, whether pre-programmed or remotely controlled, and all of the supporting or attached systems designed for gathering information through imaging, recording or by any other means.

Capability: sUAS can support first responders in any hazardous incident which would benefit from an aerial perspective. These uses could include search and rescue, barricaded suspects or high-risk tactical operations, disaster response, and video and photographic documentation of crime scenes.

Usage: sUAS are to be used by trained pilots during high-risk operations, tactical operations, disaster response, and video and photographic documentation. These pilots receive regular training and flight hours and when applicable adhere to FAA regulations.

Training Requirements: Drone operators attended continual yearly training.

Fiscal Impact: See Appendix A
Lifespan: Approximately five (5) years.

The Department currently possesses the following types of sUAS:
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a. Parrot Anafi Thermal (Quantity: 2)
Manufacturer: Parrot
Description: To balance the resolutions of the thermal image and visible image, and therefore benefit from information not visible in thermal, the displayed image is a fusion of the information from the two cameras. b. LOKI 1 (Quantity: 6)
Manufacturer: Sky-Hero
Description: A handheld drone designed for interior searches. The drone is controlled by a handheld remote control.
c. Evo II (Quantity: 1)
Manufacturer: Autel Robotics
Description: A handheld drone designed for exterior searches. The drone is controlled by a handheld remote control. It has the ability to record video for use with evidence collection.

2. Small Unmanned Tracked Robots: An unmanned tracked robot of any type that is capable of being remotely controlled as well as all of the supporting or attached systems designed for gathering information through imaging, recording or by any other means.

Capability: Small Unmanned Tracked Robots can support first responders in any hazardous incident which would benefit from a ground level perspective. These uses could include barricaded suspects or high-risk tactical operations, disaster response, and use in crawl spaces or confined isolated areas to assist in searches for suspects or evidence.

Usage: Small Unmanned Tracked Robots are to be used exclusively by the SWAT unit during high-risk operations, disaster response, and in crawl spaces or confined isolated areas to assist in searches for suspects or evidence.

Training Requirements: SWAT Officers regularly train on safe robot deployment in a variety of operational settings.

Fiscal Impact: See Appendix A
Lifespan: Dragon Runner – Lifespan varies with operational usage and wear.

The Department currently possesses the following types of Small Unmanned Tracked Robot:
a. Dragon Runner (Quantity: 1)
Manufacturer: QinetiQm
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Description: Lightweight, expandable, and one-man portable robot that offers protection and support to officers. Designed to provide situational awareness by ‘scouting out’ while the officers remain at a safe distance.

Designed for rapid tactical missions, the robot is simple to operate and quick to deploy for searching rooms, hallways, stairwells, and confined spaces. With rubber tracks, the Dragon Runner effortlessly climbs stairs. It also includes an extendible rotating claw arm that simplifies opening door handles.

B. Armored Personnel Carriers

1. BearCat: An armored rescue vehicle capable of providing high ballistic protection, cover, limited breaching capability, and transport of officers and/or civilians at critical incidents and high-risk tactical operations.

Capability: BearCats can support first responders in any hazardous, high risk, or critical incident which would benefit from having a vehicle that provides a high level of ballistic protection.

Usage: These uses could include active shooters, armed barricaded suspects, hostage situations, high-risk tactical operations, disaster response, officer/citizen rescues, and CBRNE (Chemical, Biological, Radiological, Nuclear, and Explosive) attacks and detection.

Training Requirements: Officers authorized to operate the BearCat are required to successfully complete in house training on its capabilities and must complete a driving assessment during the training period.

Fiscal Impact: See Appendix A
Lifespan: Approximately 20 years depending on operational usage and wear.

The Department currently possesses the following types of BearCats:
a. BearCat G2 – 2 Door Model (Quantity: 1)
Manufacturer: Lenco
Description: The Lenco BearCat G2 is the standard armored rescue vehicle for special operations units within the US Law Enforcement community. The G2 has excellent on-road driving characteristics and maneuverability in tight urban settings. The large floor plan seats 10–12 fully equipped officers or citizens.
b. BearCat G3 – 4 Door Model (Quantity: 1)
Manufacturer: Lenco
Description: The BearCat G3 provides Lenco’s proven armor system in a ruggedized off-road platform. The G3 utilizes the same body design, interior 128

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features, and tactical options as the G2, but it comes standard with a heavier duty upgraded suspension and off-road tires, rims & run flats to provide enhanced off-road performance. The increased ground clearance and robust suspension allows for emergency response in rural regions and natural disaster scenarios where standard armored rescue vehicles would experience challenges.
c. BearCat G3 w/ P3E MARS Ramp System – 3 Door Model (Quantity: 1) Manufacturer: Lenco
Description: The BearCat G3 provides Lenco’s proven armor system in a ruggedized off-road platform. The G3 utilizes the same body design, interior features, and tactical options as the G2, but it comes standard with a heavier duty upgraded suspension and off-road tires, rims & run flats to provide enhanced off-road performance. The increased ground clearance and robust suspension allows for emergency response in rural regions and natural disaster scenarios where standard armored rescue vehicles would experience challenges. This armored rescue vehicle is outfitted with the P3E MARS ramp system which allows officers to safely make entry into or rescue citizens from elevated structures.
d. Rook – (Quantity: 1)
Manufacturer: Ring Power
Description: The Rook is a tracked armored vehicle capable of deploying officers into a critical incident or rescue citizens during a critical incident. It features several attachments capable of moving objects, or vehicles to aide in the peace resolution of a critical incident. The attachments and vehicle also can be used in various natural disaster incidents.

C. Command and Control Vehicles

1. Mobile Command Vehicles: Completely self-contained command posts designed to provide the Incident Commander with a mobile base of operation.

Capability: As a mobile base of operation, these vehicles contain specialized command, control, and communications equipment to assist with this mission.

Usage: Mobile Command Vehicles are to be utilized as an Incident Command Post for planned or unplanned events. Vehicles are also equipped with specialized equipment to assist with numerous types of incidents.

Training Requirements: Officers are frequently train in the operations of Command vehicles.

Fiscal Impact: See Appendix A
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Lifespan: No lifespan indicated by manufacturer. Dependent on operational usage and wear.

The Department currently possesses the following types of Mobile Command Vehicles:
a. SWAT Special Equipment Vehicle – (Quantity: 1)
The SWAT Special Equipment Vehicle is a non-armored vehicle used by SWAT personnel to transport special weapons and equipment to the scene of critical incidents. Once at an incident, it is also used as a SWAT and Tactical Operations Center (TOC).

Manufacturer: Custom Built International Chassis
Description: This vehicle is a custom build. It is capable of transporting various SWAT equipment to a critical incident. It is also outfitted with various radio and computers to aid the Incident Commander.
b. CP131 – Command Post Vehicle - (Quantity: 1)
Manufacturer: Custom Built Freightliner Chassis
Description: This vehicle is a custom-built truck which allows officers to aide in communicating with subjects during critical incidents or can be utilized as a command post during any type of situation.

D. Explosive Breaching Equipment

1. Explosive Breaching Equipment: During crisis situations, it may become necessary for a SWAT team to facilitate an entry into a target location. It is critical the point of entry is breached quickly and as safely as possible. A quick and effective breach is one key to a successful tactical mission. In some instances, an explosive breach may be required to provide an added degree of safety and tactical advantage in order to accomplish a mission.

A variety of specialized breaching equipment consisting of explosive materials are possessed by the Department. Explosive Breaching Equipment can only be used exclusively by the SWAT team’s dedicated breaching personnel.

Capability / Usage: Explosive breaching, the use of explosive materials to affect a breach, can be an effective option in SWAT team tactics. An effective breach is a design where the least amount of explosive material is used and still accomplishes its goal. An effective Explosive Breach can defeat fortified doors and walls. Effective breaching techniques allow tactical officers immediate entry with minimal risk to victims, officers, and suspects. An Explosive Breach should only be utilized after taking into consideration the overall mission, officer and citizen safety, the overall construction of the structure, the presence of unstable chemicals, explosives, or incendiary materials, and whether other means of 130

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mechanical breaching would be effective and safe to use. The option to use an explosive breach shall be at the discretion of the SWAT Commander.

Training Requirements: Only SWAT Officers that are certified Explosive Breachers are authorized to utilize explosive breaches. SWAT Explosive Breachers must successfully complete a certified Explosive Breaching Course.

Additionally, SWAT Explosive Breachers must maintain proficiency with the use and handling of explosives and explosive breaching techniques.

Fiscal Impact: See Appendix A
Lifespan: Approximately five (5) years.

The Department currently possesses the following types of Explosive Breaching Equipment:
a. Explosive Breaching Equipment Kit – (Quantity: Various) Explosive Breaching Equipment consists of:

1. 50 grain Detonation Cord

2. 20 grain Boosters

3. C2 sheets

4. Shock-tube Blasting Cap
Manufacturer: Southwest Explosives
Description: Explosive breaching, the use of explosive materials to affect a breach, can be an effective option in SWAT team tactics. An effective breach is a design where the least amount of explosive material is used and still accomplishes its goal.

2. Breaching Shotguns and Breaching Ammunition: During crisis situations, it may become necessary for a SWAT team to facilitate an entry into a target location. It is critical the point of entry is breached quickly and as safely as possible. A quick and effective breach is one key to a successful tactical mission.

In some instances, a breach initiated by a breaching shotgun loaded with specialized breaching rounds may be required to provide an added degree of safety and tactical advantage in order to accomplish a mission.

Specialized Breaching Rounds, also referred to as TKO round, are frangible and are designed to break into a powder form upon impact with a solid object (i.e., dead bolt lock, door frame, etc.)
The Department possesses a limited inventory of Breaching Shotguns and Breaching Shotgun Ammunition. Breaching Shotguns are to be used exclusively by trained members of the SWAT team.

Capability / Usage: Shotgun breaching, the use of a breaching shotgun to affect a breach, can be an effective option in SWAT team tactics. An effective breach is a 131

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design where the least amount of breaching shotgun rounds is used and still accomplishes its goal. An effective shotgun breach can defeat fortified doors and locks. Effective breaching techniques allow tactical officers immediate entry with minimal risk to victims, officers, and suspects.

Training Requirements: SWAT team members regularly train on the use of shotgun breaching.

Fiscal Impact: See Annual Military Report
Lifespan: Remington 870 Police Magnum – Limited lifetime warranty.

Lifespan varies on operational usage and wear
Breaching Shotgun Ammunition – Five (5) year limited warranty.

Five (5) year shelf life.

The Department currently possesses the following types of breaching shotguns and breaching shotgun ammunition:
a. Remington 870 Police Magnum – (Quantity: 5)
Manufacturer: Remington
Description: The Remington 870 Police Magnum pump-action shotgun is a rugged 12-gauge with a short barrel backed by a stout 3” chamber. The allmatte black gun is parkerized for generalized durability and rust-resistance.

Both the pump action for-end and stock are robust and tough synthetic. b. TKO 12-Gauge Breaching Shotgun Rounds – (Quantity: 60) Manufacturer: Defense Technology
Description: The 12-Gauge TKO Breaching Round is a 12-Gauge shell loaded with a compressed zinc slug, utilizing smokeless powder as a propellant. This is a widely used method to breach door locks or hinges for entry during tactical operations. When properly deployed, the TKO is capable of defeating door lock mechanisms, doorknobs, hinges, dead bolts, safety chains, and pad locks on both wooden or hollow core doors. Upon impact with the target, the zinc slug disintegrates into a fine powder eliminating fragmentation.

E. Firearms of .50 Caliber or greater

1. .50 Caliber Rifles: A heavy-duty, bolt-action rifle rated for .50 caliber ammunition that is capable for delivering precision rifle fire at great distances with effective results.

Due to the ever-increasing number of deadly incidents involving vehicle borne attacks and fortified structures both in Southern California and around the country, the SWAT Sniper Team currently employs the use of a .50 caliber rifle to address the unique operational needs presented by these threats. 132

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The requirement and implementation of a .50 caliber rifle are now the standard for many SWAT Teams both in the US and abroad to combat vehicular threats that may arise out of conventional SWAT operations or domestic and international terror attacks.

Capability / Usage: These weapons provide the capability to pierce hard armor, multiple layers of mild steel, or substantial brick, concrete and other materials that may give hard cover to potential suspects. In limited circumstances, these weapons can also be used to disable the engine block of a vehicle posing a clear and present threat to the public (i.e., a vehicle laden with explosives).

Training Requirements: SWAT Snipers receive specific .50 caliber rifle training and must undergo regular training and weapons qualifications to be able to deploy the .50 caliber rifle.

Fiscal Impact: See Appendix A
Lifespan: EDM ARMS – Barrel life rated to approximately 20,000 rounds. a. EDM ARMS Windrunner - (Quantity: 1)
Manufacturer: Bushmaster Firearms
Description: The Windrunner is built to outshine all previous standards for long-range accuracy.

F. Ammunition of .50 caliber or greater

1. .50 Caliber Rifle Ammunition: Rifle ammunition manufactured specifically for .50 caliber Special Application Rifles. This caliber is also referred to as .50 BMG.

Match Ammunition: Designed for when greater distance from a target is encountered and accuracy is needed. Match ammunition rounds excel against heavy barriers and penetrating thick glass.

Fiscal Impact: See Appendix A
Lifespan: Approximately 10-year shelf life.
a. A-Max Match Ammo - .50 BMG 750 grain (Quantity: See Appendix A) Manufacturer: Engel Ballistic Research
Description: 50BMG match grade 750 grain. Match ammunition rounds excel against heavy barriers and penetrating thick glass.

G. Specialized firearms and ammunition of less than .50 caliber, including assault weapons
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1. AR-15 Rifles: A semi-automatic shoulder-fired long gun that fires a rifle caliber cartridge. The Department-approved AR-15 style weapon system is designed to fire a .223/5.56 caliber projectile.

Capability/Usage: The rifle caliber carbine provides officers the ability to engage hostile suspects at distances generally greater than the effective distance of their handguns. Additionally, AR-15 rifles offer advantages over handguns, such as increased accuracy potential and the ability to defeat soft body armor but are not appropriate for every situation.

Training Requirements: All officers attend a POST rifle course and regularly qualify with their rifle. SWAT Officers partake in regular rifle training, and consistent weapons qualifications to maintain proficiency with the AR-15.

Fiscal Impact: See Appendix A
Lifespan: Colt M4 Carbine LWRC IC-45 – Barrel life rated to approximately 12,000 rounds.

Colt M4 Carbine – Barrel life rated to approximately 12,000 rounds.
a. Colt M4 Carbine LWRC M6IC (Quantity: 142)
Manufacturer: LWRC International
Description: Colt style M4 rifle chambered in .223 caliber. These rifles are outfitted with a collapsible stock and flashlight.
b. Colt M4 Carbine (Quantity: 158)
Manufacturer: Colt Manufacturing LLC
Description: Colt M4 rifle chambered in .223 caliber. These rifles are outfitted with a collapsible stock.

2. .308 Caliber Rifles: Rifle’s chambered in a .308 caliber round. These rifles are set up as a semi-automatic rifle or a bolt action. They can be outfitted with various optics and accessories depending on the mission.

Capability / Usage: The .308 rifle provides SWAT Snipers and Air Support personnel the ability to engage hostile suspects at great distances with accuracy.

The .308 rifle platform are typically deployed with the SWAT Team during highrisk SWAT operations and special events or instances wherein Sniper Over Watch Teams are needed. These rifles can also be deployed by the Ontario Air Support Unit for similar situations.

Training Requirements: SWAT team members and the Air Support Unit regularly train and qualify with various weapons systems including the .308 rifle to maintain proficiency.
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Fiscal Impact: See Appendix A
Lifespan: HK 91 – Barrel life rated to approximately 3,000 to 6,000 rounds.

Tactical Ops Tango 51– Barrel life rated to approximately 5,000 rounds.

Sig Sauer 716 – Barrel life rated to approximately 3,000 to 6,000 rounds.

Fiscal Impact: See Appendix A
a. HK 91 Rifle (Quantity: 1)
Manufacturer: Heckler and Koch
Description: Semi-automatic .308 rifle with optic attached. b. Tactical Ops Tango 51 .308 Bolt Action Rifle (Quantity: 6) Manufacturer: Accuracy International
Description: The bolt action Tango 51 is chambered in .308 caliber and is a bolt action rifle.
c. Sig Sauer 716 Rifle (Quantity: 2)
Manufacturer: Sig Sauer
Description: Semi-automatic .308 rifle with optic attached.

3. MP-5 Submachine Guns: A compact, modular, lightweight, shoulder fired, submachine gun capable of semi-automatic or automatic fire chambered in 9mm.

Capability / Usage: The MP-5 submachine gun provides the ability to deliver precision gun fire with a shoulder fired weapons system that is accurate, reliable, and safe. Its compact design allows for ease of maneuverability when operating in the open or within interior environments. The use of the MP-5 submachine gun is relegated to SWAT officers.

Training Requirements: Officers authorized to carry the MP-5 have completed numerous hours of live fire and movement training. Additionally, officers authorized to use the MP-5 must complete weapons qualifications on a regular basis to maintain proficiency.

Fiscal Impact: See Appendix A
Lifespan: Barrel life rated for approximately 50,000+ rounds. a. HK MP5 Submachine Gun (Quantity: 8)
Manufacturer: Heckler & Koch
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Description: Probably the most popular series of submachine guns in the world, it functions according to the proven roller-delayed blowback principle.

Tremendously reliable, with maximum safety for the user, easy to handle, modular, extremely accurate and extraordinarily easy to control when firing.

4. .223 Caliber or 5.56mm Rifle Ammunition: Rifle ammunition manufactured specifically for rifles chambered in 5.56mm or .223 Remington. Currently there are two types of .223/5.56mm caliber rifle ammunition in use operationally by the Department.

Capability / Usage: .223 caliber or 5.56mm rifle ammunition used in conjunction with an AR-15 type rifle provides officers the ability to engage hostile suspects at distances generally greater than the effective distance of their handguns. Rifle ammunition fired from AR-15 rifles offer advantages over handguns, such as increased accuracy potential and the ability to defeat soft body armor but are not appropriate for every situation. For the SWAT Team, the AR-15 is the primary weapons system utilized by the team. SWAT Officers regularly utilize the AR-15 as their primary weapons system on tactical operations.

Training Requirements: Officers receive POST training and regularly qualify with their weapon.

Fiscal Impact: See Appendix A
Lifespan: Approximately 10-year shelf life.

The Department currently possesses the following types of .223 caliber or

5.56mm rifle ammunition:
a. Federal – FMJ .223 55 grain (Quantity: 100,000)
Manufacturer: Federal
Description: American Eagle rifle ammunition offers consistent, accurate performance at a price that's perfect for high-volume shooting. The loads feature quality bullets, reloadable brass cases and dependable primers. b. Federal – Gold Dot .223 62 grain (Quantity: 30,000)
Manufacturer: Federal
Description: Gold Dot Duty Rifle brings proven bullet technology to rifle platform. Gold Dot rifle bullets are optimized to ensure expansion out of barrels down to 10" at a wide variety of velocities out to 200 yards.

5. .308 Caliber Rifle Ammunition: Rifle ammunition manufactured specifically for rifles chambered in .308 Winchester. Currently there are various types of .308 Winchester caliber rifle ammunition in use by the Department.

Fiscal Impact: See Appendix A
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Lifespan: Approximately 10-year shelf life.

The Department currently possesses the following types of .308 Winchester ammunition:
a. Federal.308 Winchester LE308TT2 Ammunition (Quantity: 2,400) Manufacturer: Federal
Description: Tactical bonded ammunition is made exclusively for law enforcement. It is designed to defeat barriers with minimal deflection.

H. Flashbangs, Chemical Agents, Chemical Agent Delivery Devices, and Pepper Ball Launchers

1. Noise Flash Diversionary Devices (NFDD): Canisters that emit a loud noise and bright light.

Capability / Usage: Diversionary Devices are capable of releasing large amounts of stored energy in the form of heat, light, pressure, and noise. They are intended to temporarily distract, confuse, and disorient subjects. They can also be used as “attention-getting” devices. Diversionary Devices are to be used exclusively by the SWAT team. Noise Flash Diversionary Devices can be used in high-risk tactical operations as an attention getting device. They can also be used during high-risk warrants, and hostage rescue incidents to provide an added degree of officer safety by disorienting subjects.

Training Requirements: SWAT Officers regularly train on safe device deployment in a variety of operational settings.

Fiscal Impact: See Appendix A
Lifespan: Defense Technology Multi Port Distraction Device – Five (5) year shelf life.

Liberty Dynamics Distraction Device –Five (5) year shelf life.

The Department currently possesses the following types of Diversionary Devices:
a. Defense Technology Multi Port Distraction Device (Quantity: 80) Manufacturer: Defense Technology
Description: These noise flash diversionary devices have a highly reliable functionality and very precise delay times.
b. Defense Technology Multi-bang (Quantity: 3)
Manufacturer: Defense Technology
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Description: This distraction device is capable of multiple consecutive detonations on one device.
c. Low-roll Distraction Device (Training Device) (Quantity: 50) Manufacturer: Defense Technology
Description: Training device utilizes the same deployment methods with minimal load for training purposes.
d. Liberty Dynamics Distraction Device (Quantity: 175)
Manufacturer: Liberty Dynamics
Description: This diversionary device has the binary energetic material contained within the Enhanced Noise Flash Diversionary device allows for drastically lowered volatility levels, creating a vastly safer and more reliable noise-flash event.

2. Chemical Agents and Chemical Agent Delivery Devices: Compounds, devices, and delivery systems utilized by SWAT, Mobile Field Force, and patrol officers.

Compounds can include irritants such as Chlorobenzalmalononitrile (CS) or an inflammatory agent such as Oleoresin Capsicum (OC) or Pava (synthetic OC).

Chemical agents can be liquid, powder, or gaseous. Delivery systems can be pyrotechnic, blast dispersion, OC Fogger, or aerosol.

Chemical agent delivery devices consist of the following:

Gas Ram: A metal device resembling a handheld pointed battering ram that can be loaded with a chemical agent canister. The gas ram can be used to introduce chemical agents into a location by piercing the wall, door, or roof of a structure.

Burn Safe: A cylindrical metal container designed to contain a pyrotechnic chemical agent canister and reduce fire hazard upon deployment into a structure.

Capability / Usage: Depending on the delivery method, chemical agents are capable of being introduced in close proximity or from a distance. Depending on the type of delivery system and/or quantity, chemical agents can be used to saturate individual suspects, violent crowds, or areas of varied size. Chemical agents are to be used by the SWAT Team, Mobile Field Force, and/or patrol officers. Generally, during high-risk tactical incidents chemical agents can be used to dislodge a suspect from a stronghold location with the least possible danger to citizens, police, and the suspect. Chemical agents can also be used to prevent an armed suspect from accurately firing at citizens and/or officers. They can also be used in limited instances during civil unrest to disperse violent crowds.
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Training Requirements: Officers receive regular training on the deployment and use of chemical agents. Officers are required to pass annual qualifications with the use of chemical agents and chemical agent delivery systems in order to maintain proficiency.

Fiscal Impact: See Appendix A
Lifespan: Defense Technology Chemical Agent Canisters and Munitions - Five (5) year shelf life.

Chemical Agent Delivery Devices - No lifespan indicated by manufacturer. Lifespan varies on operational usage and wear.

The Department currently possesses the following types of chemical agents:
a. SPEDE-HEAT CS Model - (Quantity: 62)
Manufacturer: Defense Technology
Description: The Spede-Heat CS munition is a high volume, continuous burn it expels its payload in approximately 20-40 seconds. The payload is discharged through four gas ports on top of the canister, three on the side and one on the bottom. This munition holds approximately 2.9 oz. of active agent. b. 40mm Liquid Ferret - (Quantity: 175)
Manufacturer: Defense Technology
Description: These launchable munitions are capable of being deployed into a structure, through barriers, to deploy chemical agent into a structure at a safe distance.
c. Chemical Agent CS Pocket Tactical – Model 1016 (Quantity: 4) Manufacturer: Defense Technology
Description: The Pocket Tactical CS munition is small, and lightweight. The

0.9 oz. of active agent will burn approximately 20-40 seconds. At 4.75 in. by

1.4 inches in size, it easily fits in most tactical pouches. d. Maximum HC Smoke Model 1073 - (Quantity: 29)
Manufacturer: Defense Technologies
Description: Pyrotechnic smoke grenade used for concealment or as a signaling device.
e. 37mm Multiple Foam Baton – Model 6299 (Quantity: 379) Manufacturer: Defense Technology
Description: The 37mm foam baton round contains three foam projectiles. f. 40mm Skat Shell – Model 6172 (Quantity: 62)
Manufacturer: Defense Technology
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Description: The 40mm Skat shell is designed to deliver multiple CS canisters from a 40mm launcher. It has a maximum effective range of 80-100 yards. g. Instantaneous Blast CS – Model 1042 (Quantity: 52)
Manufacturer: Defense Technology
Description: The instantaneous blast CS munition is designed for indoor or outdoor use; this munitions powder is expelled upon initiation of a small internal detonator that has sufficient force to split the canister at six machined groves on the outside surface.
h. Pocket Tactical Saf-Smoke – Model 1017 (Quantity: 38) Manufacturer: Defense Technology
Description: This munition is small and lightweight. It will burn approximately 20-40 seconds.
i. CS Flameless Tri-Chamber – Model 1032 (Quantity: 43) Manufacturer: Defense Technology
Description: The flameless tri-chamber allows the contents to burn within an internal can and disperse the agent safely with reduced risk of fire. j. CS Triple-Chaser Canister – Model 1026 (Quantity: 52) Manufacturer: Defense Technology
Description: The triple-chaser CS consists of three separate canisters pressed together with separating charges between each. When deployed, the canisters separate and land approximately 20 feet apart allowing increased area coverage.
k. 40mm Muzzle Blast – Model 6042 (Quantity: 79)
Manufacturer: Defense Technology
Description: The 40mm muzzle blast CS round is widely used as a crowd management tool for the immediate and close deployment. l. Gas Ram – Chemical Agent Delivery Device (Quantity: 3) Manufacturer: Custom build
Manufacturer Description: The gas ram is a double walled container constructed of steel designed to contain the flames of a pyrotechnic chemical agent canister. There is a large metal probe attached to one end designed to penetrate walls to deploy the chemical agent inside a structure from outside. m. Burn Safe – Chemical Agent Delivery Device (Quantity: 2) Manufacturer: Burn Safe
Manufacturer Description: The Burn Safe is a double walled container constructed of aluminum. It is designed to contain the flames inside the inner chamber thereby reducing the probability of starting a fire. The Burn Safe allows the introduction of significant amounts of pyrotechnic non-lethal 140

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chemical agent into the target, which increases the probability of a successful resolution.

3. Pepper Ball Launchers and Pepper Ball Munitions: A non-lethal munitions system that employs paint ball launchers to fire “pepper balls” that contain powdered synthetic OC in place of the paint. The pepper ball delivery system combines chemical agent exposure with kinetic energy impact to aid in its effectiveness in addressing armed and/or violent individuals or crowds. Pepper ball munitions also include glass breaking rounds.

Capability / Usage: Pepper ball launchers give officers the ability to address an armed and/or violent suspect(s) with a non-lethal munition that delivers both chemical agent and kinetic energy impact. This combination can be extremely effective in gaining compliance or reducing threat potential with an armed and/or violent suspect(s). Due to its design, pepper balls can be delivered from a larger standoff distance allowing for an added degree of officer safety. Pepper ball launchers and pepper ball munitions can be used to address armed and/or violent individuals or crowds, limited instances of violent civil unrest, suicidal individuals, and individuals believed to possess or have immediate access to a deadly weapon. Pepper ball munitions can be effective in driving suspects from confined spaces or vehicles.

Training Requirements: Officers undergo regular live fire proficiency training.

Additionally, Officers are required to qualify with pepper ball launchers on a consistent basis to maintain proficiency.

Fiscal Impact: See Appendix A
Lifespan: Pepper Ball Launcher – No manufacturer life span indicated by manufacturer.

Pepper Ball Munitions – Approximately three (3) year shelf life.

The Department currently possesses the following types of pepper ball launchers and pepper ball munitions:
a. Tippman FTC Pepper Ball Launcher (Quantity: 12)
Manufacturer: Tippman
Manufacturer Description: The Tippmann FTC paintball marker is a compact marker launcher.
b. PepperBall Live – (Quantity: 4,000)
Manufacturer: PepperBall
Description: A potent and powerful concentration of PAVA pepper powder.

One round of LIVE-X contains 2% PAVA.
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c. PepperBall Glass Breaker – (Quantity:80)
Manufacturer: PepperBall
Description: Used to break side glass of vehicles and residential glass windows.
d. PepperBall Inert – (Quantity: 3,000)
Manufacturer: PepperBall
Description: Containing a harmless, scented powder, this projectile is best suited for training, qualifications, and direct impact when chemical exposure is not desired.

I. Extended Range Impact Weapons, Projectile Launcher Platforms, Munitions, and Specialty Impact Munitions (SIM)

1. 40mm Launchers (Projectile Launch Platforms): A single shot or multi-shot Extended Range Impact Weapon launcher capable for firing a variety of 40mm rounds. The Department also has a limited inventory of 37mm launchers that share the same characteristics as 40mm launchers but are chambered for 37mm munitions.

Capability / Usage: 40mm launchers are capable of firing a variety of munitions with a maximum effective range of one hundred twenty (120) feet. 40mm launchers can deliver 40mm munitions in the form of chemical agents, and sponge baton rounds. The 40mm launchers utilized with less lethal sponge baton rounds are designed to impact armed and/or violent suspects so officers can gain compliance, overcome resistance, or prevent serious injury or death to bystanders, officers, and the suspect. 40mm single launchers combined with less lethal 40mm sponge baton rounds are authorized to be used by any officer that has been trained in its use and maintains current qualifications.

Training Requirements: Officers that have been trained in the use of the 40mm single launcher undergo thorough training in its use. Additionally, officers trained in the use of the 40mm single launcher must pass annual qualifications to maintain proficiency.

Fiscal Impact: See Appendix A
Lifespan:

Defense Technology 40mm Launchers – Two (2) year limited warranty. No lifespan indicated by manufacturer. Dependent on operational usage and wear.

Defense Technology 37mm Launchers – No lifespan indicated by manufacturer. Lifespan varies on operational usage and wear. 142

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The Department currently possesses the following types of 40mm launchers:
a. Def Tech – Model 1425 (Quantity: 11)
Manufacturer: Defense Technology
Description: The 40mm will fire standard 40mm Less Lethal ammunition, up to 4.8 inches in cartridge length.
b. LMT – 40mm Launcher (Quantity: 20)
Manufacturer: Lewis Machine & Tool
Description: The 40mm will fire standard 40mm Less Lethal ammunition, up to 4.8 inches in cartridge length.
c. Def-Tec – Model 1415 (Quantity: 4)
Manufacturer: Defense Technology
Manufacturer Description: The 37mm will fire standard 37mm Less Lethal ammunition, up to 8 inches in cartridge length.
d. Def-Tec 40mm 6-Shot Launcher (Quantity: 2)
Manufacturer: Defense Technology
Description: Designed for riot and tactical situations, the 40mm 6-Shot Launcher is low-profile and lightweight, providing multi-shot capability in an easy to carry launcher.

2. 40mm Ammunition: The 40MM round is a sponge baton cartridge. The sponge round has a blue-colored nose with a black base. The casing is stainless.

Fiscal Impact: See Appendix A
Lifespan: Five (5) year shelf life.

The Department currently possesses the following types of 40mm direct impact ammunition:
a. eXact iMpact 40mm Sponge Round – Model 6325 (Quantity: 900) Manufacturer: Defense Technology
Description: The eXact iMpact 40 mm Sponge Round is a point-of-aim, pointof-impact direct-fire round. This lightweight, high-speed projectile consisting of a plastic body and sponge nose that is spin stabilized via the incorporated rifling collar and the 40 mm launcher’s rifled barrel. Used for Crowd Control, Patrol, and Tactical Applications.

J. Night Vision Equipment and Infrared Sighting Systems

1. Night Vision Optical Devices: A night-vision device (NVD), also known as night optical/observation device (NOD) or night-vision goggles (NVG) is an 143

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optoelectronic device that allows images to be produced in low levels of light approaching total darkness.

Capability / Usage: Night Vision Optical Devices provide the user the ability to see an enhanced image during darkness. The use of this equipment allows a tactical advantage for officers especially when operating in low light or dark environments. The majority of SWAT tactical operations occur at night or are conducted in low light environments. Having NVD’s allows for SWAT Officers to have a tactical advantage and an added degree of officer safety when operating in those conditions. The use of NVD’s is extremely advantageous during high-risk operations, hostage rescue, active shooter, and tactical operations in a wide range of environments.

Training Requirements: SWAT Officers maintain proficiency by continual training and annual weapons qualifications with NVD’s.

Fiscal Impact: See Appendix A
Lifespan: Approximately 10,000 hours.

The Department currently possesses the following types of Night Vision Optical Devices:
a. Pinnacle Gen3 Night Vision – (Quantity: 30)
Manufacturer: Night Vision Depot
Description: Pinnacle Gen3 Night Vision Device is a compact, lightweight, high-performance white phosphor dual-tube goggle.
b. L3 Warrior – (Quantity: 3)
Manufacturer: L3
Description: The L3 Warrior Night vision scope can be attached quickly to the rifle to allow for enhanced vision during nighttime operations. It works in conjunction with the rifle’s optics for improved vision.

2. Infrared Sighting Systems: A device attached to a firearm to aid in target acquisition. Unlike optical and iron sights where the user looks through the device to aim at the target, laser sights project a beam onto the target that provides a visual reference point. This device is used in conjunction with NVD’s to aid in rapid and accurate target acquisition.

Capability / Usage: This equipment, when combined with NVD’s, provide the user the ability to see an enhanced image during low light conditions or darkness.

The use of this equipment allows for a tactical advantage for officers. It allows officers to obtain accurate and rapid target acquisition especially when operating in a multitude of low light or dark environments. Most SWAT operations occur at night or are conducted in low light environments. Having NVD’s in conjunction 144

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with infrared sighting systems allows for SWAT Officers to have a tactical advantage and an added degree of officer safety when operating in those conditions. The use of NVD’s combined with infrared sighting systems are extremely advantageous during high-risk operations, hostage rescue, active shooter, and tactical operations in a wide range of environments. Infrared sighting systems are to be used exclusively by the SWAT Unit. Night Vision optical enhancement devices combined with infrared sighting systems may be utilized during tactical missions with approval from the SWAT Commanding Officer or SWAT Executive Officer.

Training Requirements: SWAT Officers maintain proficiency by continual training and annual weapons qualifications with NVD’s and infrared sighting systems.

Fiscal Impact: See Appendix A
Lifespan: Approximately 10,000 hours.

The Department currently possesses the following types of infrared sighting systems:
a. MAWL IR Designator (Quantity: 30)
Manufacturer: B.E. Meyers
Description: The MAWL has an IR light and IR laser which work in conjunctions with night vision devices to illuminate and aide in aiming a weapon system.

V. USAGE OF MILITARY EQUIPMENT WHEN COLLABORATING WITH

OTHER LAW ENFORCEMENT AGENCIES
On occasion, the Department may be required to assist other law enforcement agencies in a formal Law Enforcement Mutual Aid Request (LEMA) or support with day-to-day operational collaboration (i.e., pursuits, investigative unit assistance, joint law enforcement operations, etc.).

In certain mutual aid or operational collaboration circumstances, it may be necessary for sworn Department members to utilize military equipment in order to fulfill an assigned mission (i.e., civil unrest, SWAT requests, barricaded suspects in a vehicle, etc.). When sworn Department members utilize military equipment in instances of mutual aid or law enforcement collaboration, the following shall apply:

A. Department members are required to adhere to the Department’s Military Equipment Procedure and all policies and procedures outlined within the Ontario Police Department’s Policy and Procedures Manual, regardless of operational jurisdiction. 145

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B. Should the Police Department request mutual aid from another law enforcement agency within the City and military equipment is required during the course of the response, the following shall apply:

1. The Ontario Police Department will remain in charge of the overall incident command.

2. The Incident Commander or designee will brief the supervisor from the assisting agency and inform them of the mission, enforcement posture, and any pertinent information related to the incident.

3. The assisting agency will adhere to their respective policies and procedures, particularly those governing the use of military equipment.

4. If the Incident Commander or their designee is informed of or witnesses the utilization of military equipment by an assisting agency inconsistent with the guidelines set forth in this procedure, the Incident Commander may elect to cancel the request for mutual aid or re-assign the assisting agency to a different support mission.

VI. APPROVAL OF MILITARY EQUIPMENT BY GOVERNING BODY
A. Pursuant to AB-481 all military equipment acquired and/or in use by the Department shall be approved by the governing body by adopting a military use policy. This approval by the governing body must be granted prior to any of the following:

1. Requesting military equipment made available pursuant to Section 2576a of Title of the United States Code. This section is also commonly referred to as the Defense Logistics Agency 1033 Program. The Police Department does not participate in the 1033 Program.

2. Seeking funds for military equipment, including, but not limited to, applying for a grant, soliciting, or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers.

3. Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.

4. Collaborating with another law enforcement agency in the deployment or other use of military equipment within the territorial jurisdiction of the governing body.

5. Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body.

6. Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of, military equipment.

7. Acquiring military equipment through any other means.

B. In seeking approval of the government body for any specified military equipment, the Department shall submit a proposed military equipment use policy to the governing 146

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body and make those documents available on the Department’s internet website at least 30 days prior to any public hearing concerning the military equipment at issue.

1. The proposed or final military equipment use policy shall be made publicly available on the Department’s internet website for as long as the military equipment is available for use.

VII. ANNUAL MILITARY EQUIPMENT REPORT
A. Pursuant to AB-481, the Department shall submit to the City Council an annual military equipment report for each type of military equipment approved by the governing body within one year of approval, and annually thereafter for as long as the military equipment is available for use. The Department shall also make each annual military equipment report required by this section publicly available on its internet website for as long as the military equipment is available for use. The Commanding Officer or their designee shall be responsible for the preparation and submission of the annual military equipment report. The annual military equipment report shall, at a minimum, include the following information for the immediate previous calendar year for each type of military equipment:

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

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

3. The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response, consistent with state law employee privacy restrictions.

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

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

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

B. Within 30 days of submitting and publicly releasing the annual military equipment report, the Department shall hold at least one community engagement meeting, at which the general public may discuss and ask questions regarding the annual military equipment report and the Department’s funding, acquisition, or use of military equipment.

C. The City Council will determine, based on the annual military equipment report, whether each type of military equipment identified in the report has complied with the standards for approval as set forth by AB 481. If the City Council determines that a type of military equipment identified in the annual military equipment report has 147

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not complied with the standards as set forth by AB 481, it may either disapprove a renewal of the authorization for that type of military equipment or require modifications to this military equipment use procedure in a manner that will resolve lack of compliance.

VIII. MILITARY EQUIPMENT USAGE ACCOUNTABILITY
A. The use of military equipment is subject to individual Department Policies and Procedures, is restricted for use only in certain instances and, in some cases, only by certain units. It is incumbent upon incident commanders, supervisors, and individual officers to recognize the specific circumstances wherein military equipment should be employed to enhance the safety of the public and officers and to bring a critical incident to a safe resolution.

B. Department members are bound to adhere to Department Policies and Procedures, in addition to state and local laws and ordinances when employing the use of the military equipment at any time. Violations of the law or Department Policies or Procedures may result in criminal or administrative investigations and/or actions.

C. Administrative Investigations concerning complaints related to military equipment will be conducted in accordance with department policy. These investigations may be subject to review by the Office of the Chief of Police to ensure that compliance with this military equipment procedure is maintained.

D. Any corrective action or discipline imposed as a result of a violation of this Department Procedure will be administered in accordance with the department policy, relevant employee organization memorandum of understanding (MOU), Civil Service Rules, and state law.

IX. MILITARY EQUIPMENT MAINTENANCE AND INVENTORY
All military equipment shall be maintained and inventoried in accordance with department policy.

X. MILITARY EQUIPMENT COMPLAINTS AND INQUIRIES
In some instances, the application and use of military equipment can cause questions and/or concerns for members of the community. It is of vital importance that community members’ questions regarding the application and use of military equipment are addressed.

The Police Department is committed to full and fair investigation of citizen complaints.

As such, the Department has sound internal procedures for thorough and impartial investigations of citizen complaints. Resolving complaints in a fair, impartial, and 148

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expeditious manner will ensure the consistent high level of integrity and efficiency maintained by the Department.

A. Complaints directly related to the application or use of military equipment shall be handled in accordance with department policy.

B. The Police Department values open communication and transparency. Community questions and/or concerns regarding the application and use of specified military equipment should be addressed in the following manner:

1. Via the Department internet website where the public can email specific military equipment related questions to the Department.

2. At pre-determined Community Engagement Meetings related to military equipment.

3. At City-Council Meetings related to military equipment.

4. In all other circumstances, the public should be directed to the Department Military Equipment Procedure and Annual Military Equipment Report available on the Department’s internet website.
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MILITARY PROCEDURE APPENDIX – A
FISCAL IMPACT – Fiscal Year 2022 (May 2022 – May 2023)
Equipment Name and
Model / Manufacturer
Initial Cost Ongoing Annual Cost FY22 (approximate)
Loki I $13,600 Varies on Usage
Anafi Thermal $7,439 Varies on Usage
Evo II $1,825 Varies on Usage
Equipment Name and
Model / Manufacturer
Initial Cost Ongoing Annual Cost FY22 (approximate)
Dragon Runner $46,000 Varies on Usage
Equipment Name and
Model / Manufacturer
Initial Cost Ongoing Annual Cost FY22 (approximate)
Bearcat G2 (2 Door) $205,568 Varies on Usage
Bearcat G3 (4 Door) $315,835 Varies on Usage
Bearcat G3 (Ramp) $302,609 Varies on Usage
Rook $570,000 Varies on Usage
Equipment Name and
Model / Manufacturer
Initial Unit Cost Ongoing Annual Cost FY22 (approximate) SWAT Equipment
Vehicle
$271,715 Varies on Usage
CP131 $124,708 Varies on Usage
Equipment Name and
Model / Manufacturer
Initial Cost Ongoing Annual Cost FY22 (approximate)
Explosive Breaching Kit $3,850 $202,010 (total SWAT equipment budget) Equipment Name and
Model / Manufacturer
Initial Cost Ongoing Annual Cost FY22 (approximate)
Remington 870
Breaching Shotgun
$800 Each $150,000 (total ammo budget)
TKO 12 Gauge
Breaching Shotgun
Rounds
$8.15 Per Box (6) $150,000 (total ammo budget)
Equipment Name and
Model / Manufacturer
Initial Cost Ongoing Annual Cost FY22 (approximate)
Windrunner .50 cal $7,144 Varies on Usage
Match Ammunition - .50
BMG .510” 750 grain
$59 Per Box (10) $150,000 (total ammo budget)
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Equipment Name and
Model / Manufacturer
Initial Cost Ongoing Annual Cost FY22 (approximate)
AR-15 Colt LWRC $1,949 Each Varies on Usage
.308 Semi-auto HK91 $3,899 Each Varies on Usage
.308 Tango 51 $7,999 Each Varies on Usage
HK MP5 $3,275 Each Varies on Usage
.380 Sig Sauer 716 $1,350 Each Varies on Usage
Federal FMJ 55 grain $179 Per Case $150,000 (total ammo budget) Gold Dot .223 62 grain $287 Per Case $150,000 (total ammo budget) HSM 750g A-Max .308 $49 Per Box $150,000 (total ammo budget) Equipment Name and
Model / Manufacturer
Initial Cost Ongoing Annual Cost FY22 (approximate)
Def Tec Flashbang $38.60 Each $202,010 (total SWAT equipment budget) Def Tec Multi-bang $70.00 Each $202,010 (total SWAT equipment budget) Training Flash Bang $58.50 Each $202,010 (total SWAT equipment budget) Liberty Dynamics Flash
Bang
$18,694 Total $202,010 (total SWAT equipment budget)
SPEDE Heat $33.05 Each $202,010 (total SWAT equipment budget) 40mm CS Ferret $26.15 Each $202,010 (total SWAT equipment budget) Pocket Tactical CS $28.00 Each $202,010 (total SWAT equipment budget) Maximum HC Smoke $32.60 Each $202,010 (total SWAT equipment budget) 37mm Foam Baton $24.50 Each $202,010 (total SWAT equipment budget) 40mm Skat Shell $40.65 Each $202,010 (total SWAT equipment budget) Instantaneous Blast CS $54.60 Each $202,010 (total SWAT equipment budget) Pocket Tactical Smoke $32.60 Each $202,010 (total SWAT equipment budget) CS Flameless Tri
Chamber
$46.25 Each $202,010 (total SWAT equipment budget)
CS Triple Chaser $46.25 Each $202,010 (total SWAT equipment budget) 40mm Muzzle Blast CS $26.75 Each $202,010 (total SWAT equipment budget) Gas Ram $3,250 Each $202,010 (total SWAT equipment budget) Burn Safe $155.40 Each $202,010 (total SWAT equipment budget) Tippman FTC $499 Each $13,850 (Department equipment budget) PepperBall Live $899 Box $13,850 (Department equipment budget) PepperBall Glass
Breaker
$3.00 Per Round $13,850 (Department equipment budget)
PepperBall Inert $300 Per Case $13,850 (Department equipment budget) Equipment Name and
Model / Manufacturer
Initial Cost Ongoing Annual Cost FY22 (approximate)
Def-Tec 40mm
Launcher
$985 Each $13,850 (Department equipment budget)
LMT 40mm Launcher $985 Each $13,850 (Department equipment budget) Def-Tec 37mm
Launcher
$884.50 Each $13,850 (Department equipment budget)
Def-Tec 40mm multiLauncher$2,369 Each $13,850 (Department equipment budget) eXact iMpact 40mm
Sponge Round
$30 Each $13,850 (Department equipment budget)
151

Page 29 of 29 ends

April 15, 2022
Equipment Name and
Model / Manufacturer
Initial Cost Ongoing Annual Cost FY22 (approximate)
Pinnacle Gen3 NODs $6,995 Each Varies on Usage
L3 Warrior Optic $7,999 Each Varies on Usage
MAWL Designator $2,999 Each Varies on Usage
152
Department: Investments & Revenue Resources
Prepared By: Cruz Torres
Staff Member Presenting:

Armen Harkalyan, Executive Director of Finance
Reviewed By: Cecilia House, Armen Harkalyan
Approved By:

FOR PROPOSED CHANGES TO THE RATE AND METHOD OF APPORTIONMENT OF

THE EXISTING SPECIAL TAX OF THE CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 35 (COUNTRYSIDE PHASE 2 SOUTH-FACILITIES); A RESOLUTION OF

CHANGE, DECLARING RESULTS OF A SPECIAL ELECTION, DETERMINING THAT

CHANGES TO THE RATE AND METHOD OF APPORTIONMENT OF THE EXISTING SPECIAL TAX OF COMMUNITY FACILITIES DISTRICT NO. 35 (COUNTRYSIDE PHASE 2 SOUTH-FACILITIES) ARE LAWFULLY AUTHORIZED AND DIRECTING THE RECORDING OF AN AMENDMENT TO NOTICE OF SPECIAL TAX LIEN; AND AN ORDINANCE AMENDING AND RESTATING ORDINANCE NO. 3082 LEVYING

SPECIAL TAXES WITHIN THE CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 35 (COUNTRYSIDE PHASE 2 SOUTH-FACILITIES); A RESOLUTION DEEMING IT NECESSARY TO AMEND RESOLUTION NO. 2017-124 IN ORDER TO INCREASE THE

MAXIMUM AGGREGATE AMOUNT OF BONDED INDEBTEDNESS THAT CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 35 (COUNTRYSIDE PHASE 2 SOUTH-FACILITIES) IS AUTHORIZED TO INCUR; A RESOLUTION CALLING A SPECIAL ELECTION FOR CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 35 (COUNTRYSIDE PHASE 2 SOUTH-FACILITIES); AND A RESOLUTION DECLARING THE RESULTS OF THE SPECIAL ELECTION.

CITY OF ONTARIO
Agenda Report
April 19, 2022
SECTION:

PUBLIC HEARINGS
RECOMMENDATION: That the City Council consider and:

A. Adopt a Resolution calling a special election for proposed changes to the Rate and Method of Apportionment (the "RMA") of the existing Special Tax of City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South-Facilities), (the "CFD") B. Adopt a Resolution declaring results of the special election, determining that changes to the Rate and Method of Apportionment of the existing Special Tax of City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South-Facilities) are lawfully authorized and directing recording of an amendment to Notice of Special Tax Lien, C. Introduce and waive further reading of an Ordinance amending and restating Ordinance No. 3082 levying special taxes within City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South-Facilities).
153
D. Adopt a resolution deeming it necessary to amend Resolution No. 2017-124 in order to increase the maximum aggregate amount of bonded indebtedness that Community Facilities District No. 35 (Countryside Phase 2 South-Facilities) is authorized to incur; E. Adopt a Resolution calling a special election for Community Facilities District No. 35 (Countryside Phase 2 South-Facilities); and
F. Adopt a Resolution declaring the results of the special election.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Operate in a Businesslike Manner
Focus Resources in Ontario's Commercial and Residential Neighborhoods Ensure the Development of a Well Planned, Balanced, and Self-Sustaining Community in Ontario Ranch
FISCAL IMPACT: The use of Mello-Roos financing for facilities in the residential development of the Countryside Phase 2 South-Facilities project is estimated to generate approximately $42 million in bond proceeds to be used to fund a portion of the public infrastructure improvements needed to serve the project. Mello-Roos bonds are not a direct obligation of the City and are paid from special taxes levied on each taxable parcel in the district; therefore, there is no General Fund impact from the issuance of Mello Roos bonds. City Council approval will be required in future years to process annual special tax levies.

BACKGROUND & ANALYSIS: The Mello-Roos Community Facilities Act of 1982 provides local government the authority to establish a community facilities district for the purpose of financing various kinds of public infrastructure facilities. In October, 2017, the City established CFD No. 35 (Countryside Phase 2 South-Facilities) to finance public improvements for the project. The Countryside Phase 2 South-Facilities project addresses the development of approximately 34.22 gross acres located generally east of the Cucamonga Creek Channel, west of Archibald Avenue, south of Chino Avenue, and north of Schaefer Avenue. At build out, the development is projected to include 235 single-family detached units.

The developer, Lennar Homes of California, LLC (Lennar), has provided a written petition to the City Council to commence change proceedings pursuant to the Act to change the Rate and Method of Apportionment (RMA) of the existing special tax levied within the CFD to reflect recent movements in the housing market which may affect the estimated home price of for-sale units within the CFD.

In consideration of such petition, City staff requested a second price point study to be performed by Empire Economics, the City’s Price Point Study and Market Absorption Consultant. The City's study was concluded in January 2022 and found that estimated home prices for market comparables had increased approximately 40.2% for the development, as compared to the initial price point study performed in July 2017.

At the City Council meeting on March 15, 2022, the City Council formally accepted the written petition from Lennar and approved Resolution No. 2022-017, a Resolution of Consideration and a Resolution of Intention on the proposal to increase in the maximum aggregate amount of bonded indebtedness that the CFD is authorized to incur from $27,000,000 to $42,000,000 by amending Resolution No. 2017-124 adopted in October 2017, setting the public hearing on the proposed 154
changes to the RMA for April 19, 2022. In accordance with the requirements of the Resolution of Consideration, the City Clerk has published a notice of the time and place of this hearing pursuant to Section 53322 of the California Government Code at least seven days before the hearing, and the City’s special tax consultant has prepared the Amended and Restated Rate and Method of Apportionment; which reflects the overall estimated price point increase of 40.2%. Under the Amended and Restated RMA, certain special tax rates within CFD No. 35 would be increased.

Attached for consideration is the Amended and Restated RMA, the terms of which are consistent with the City Council's adopted Mello-Roos Local Goals and Policies (Resolution No. 2006-021) in all respects. Also attached are Resolutions and an Ordinance for consideration. The first Resolution calls for a special election on the proposition to change the RMA to be held on April 19, 2022. The second Resolution declares the results of the special election and includes a statement from the City Clerk as to the canvass of ballots, and directs the recording of an Amendment to the Notice of Special Tax Lien. The ordinance amends and restates Ordinance No. 3082 levying special taxes within the CFD and reflects the updates included in the Amended and Restated RMA. The third Resolution deems it necessary to amend Resolution No. 2017-124 in order to increase the maximum aggregate amount of bonded indebtedness that the district is authorized to incur from $27,000,000 to $42,000,000. The fourth Resolution calls for a special landowner election be held on April 19, 2022 to approve the proposed increase in the maximum aggregate amount of bonded indebtedness that the CFD is authorized to incur. The fifth Resolution declares the results of the special election, determining that the maximum aggregate amount of bonded indebtedness that the CFD is authorized to incur shall be increased from $27,000,000 to $42,000,000. 155
RESOLUTION NO. ______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO,

CALIFORNIA, CALLING A SPECIAL ELECTION FOR PROPOSED

CHANGES TO THE RATE AND METHOD OF APPORTIONMENT OF THE

EXISTING SPECIAL TAX OF CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 35 (COUNTRYSIDE PHASE 2 SOUTH - FACILITIES).

WHEREAS, the City Council (the “City Council”) of the City of Ontario (the “City”) has previously established City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South - Facilities) (the “Community Facilities District”) pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”); and WHEREAS, on March 15, 2022, the City Council adopted a resolution entitled “A Resolution of the City Council of the City of Ontario, California, of Consideration to Change the Rate and Method of Apportionment of the Existing Special Tax of City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South - Facilities)” (the “Resolution of Consideration”) proposing changes to the rate and method of apportionment of the special tax (the “Special Tax”) levied within the Community Facilities District so as to increase certain of the Special Tax rates thereunder and setting the date for a public hearing to be held on such proposed changes; and WHEREAS, pursuant to the Resolution of Consideration, notice of said public hearing was published in the Inland Valley Daily Bulletin, a newspaper of general circulation published in the area of the Community Facilities District, in accordance with the Act; and
WHEREAS, on this date, the City Council opened, conducted and closed said public hearing; and
WHEREAS, at the hearing, the testimony of all persons for or against the proposed changes to the rate and method of apportionment of the Special Tax was heard; and WHEREAS, written protests against the proposed changes to the rate and method of apportionment of the Special Tax tax were not made or filed at or before said hearing by 50% or more of the registered voters, or six registered voters, whichever is more, residing within the Community Facilities District, or the owners of one-half or more of the area of land in the territory included in the Community Facilities District and not exempt from the Special Tax; and
WHEREAS, pursuant to the provisions of the Resolution of Consideration, the proposition to change the rate and method of apportionment of the Special Tax is to be submitted to the qualified electors of the Community Facilities District as required by the Act; and
WHEREAS, the City Council desires to designate the City Clerk of the City (the “City Clerk”) as the election official for the special election provided for herein; and 156
WHEREAS, there has been filed with the City Clerk of the City a letter from the Registrar of Voters of the County of San Bernardino indicating that no persons were registered to vote within the territory included in the Community Facilities District as of March 17, 2022, and, accordingly, that 12 or more persons have not been registered to vote within the territory included in the Community Facilities District for each of the 90 days preceding the close of said public hearing; and
WHEREAS, there has been filed with the City Clerk consents and waivers of all of the landowners of record in the Community Facilities District waiving any time limit specified by Section 53326 of the Act and any requirement pertaining to the conduct of said special election, consenting to the holding of said special election on April 19, 2022 and waiving any impartial analysis, arguments or rebuttals, as set forth in Sections 53326 and 53327 of the Act; and
WHEREAS, the City Clerk has concurred in said waivers and has concurred in holding said special election on April 19, 2022.

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

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

SECTION 2. The proposed changes to the rate and method of apportionment of the Special Tax are modifications that increase certain of the Special Tax rates thereunder. The proposed changes are reflected in the City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South - Facilities) Amended and Restated Rate and Method of Apportionment of Special Tax (the “Restated Rate and Method”) attached hereto as Exhibit A, which is by this reference incorporated herein.

SECTION 3. The proposed changes to the rate and method of apportionment of the Special Tax have not been precluded by majority protest pursuant to Section 53338 of the Act.

SECTION 4. Pursuant to Section 53338 of the Act, the proposition to change the rate and method of apportionment of the Special Tax so as to increase certain of the Special Tax rates thereunder, as reflected in the Restated Rate and Method, shall be submitted to the qualified electors of the Community Facilities District at an election called therefor as provided herein.

SECTION 5. The City Clerk is hereby designated as the official to conduct said election.

SECTION 6. The City Council hereby finds and determines that no persons were registered to vote within the territory included in the Community Facilities District as of March 17, 2022, and that 12 or more persons have not been registered to vote within the territory included in the Community Facilities District for each of the 90 days preceding the close of the public hearing heretofore held by the City Council on the proposed changes to the rate and method of apportionment of the Special Tax. Accordingly, 157
pursuant to Section 53326 of the Act, the vote shall be by the landowners of the Community Facilities District and each person who is the owner of land as of the close of said public hearing, or the authorized representative thereof, shall have one vote for each acre or portion of an acre that he or she owns within the Community Facilities District not exempt from the Special Tax.

SECTION 7. The City Council hereby finds and determines that the qualified electors of the Community Facilities District have unanimously consented (a) to the waiver of any time limit specified by Section 53326 of the Act and any requirement pertaining to the conduct of said election, (b) to the holding of said election on April 19, 2022, and (c) to the waiver of any impartial analysis, arguments or rebuttals, as set forth in Sections 53326 and 53327 of the Act. The City Council herby finds and determines that the City Clerk has concurred in said waivers and has concurred in holding said election on April 19, 2022.

SECTION 8. The City Council hereby calls a special election to submit to the qualified electors of the Community Facilities District the proposition to change the rate and method of apportionment of the Special Tax so as to increase certain of the Special Tax rates thereunder, as reflected in the Restated Rate and Method, which election shall be held at 303 East B Street, Ontario, California, on April 19, 2022. The City Council has caused to be provided to the City Clerk, as the official to conduct said election, the Resolution of Consideration, a certified map of sufficient scale and clarity to show the boundaries of the Community Facilities District, and a sufficient description to allow the City Clerk to determine the boundaries of the Community Facilities District.

The voted ballots shall be returned to the City Clerk not later than 7:30 p.m. on April 19, 2022; provided, however, that if all of the qualified electors have voted prior to such time, the election may be closed with the concurrence of the City Clerk.

SECTION 9. Pursuant to Section 53326 of the Act, the election shall be conducted by mail or hand-delivered ballots pursuant to Section 4000 et. seq. of the California Elections Code. Except as otherwise provided in the Act, the provisions of law regulating elections of the City, insofar as they may be applicable, will govern the election.

SECTION 10. The form of the ballot for said election is attached hereto as Exhibit B and by this reference incorporated herein, and such form of ballot is hereby approved. The City Clerk shall cause to be delivered to each of the qualified electors of the Community Facilities District a ballot in said form. Each ballot shall indicate the number of votes to be voted by the respective landowner to which it pertains.

Each ballot shall be accompanied by all supplies and written instructions necessary for the use and return of the ballot. The identification envelope for return of the ballot shall be enclosed with the ballot, shall have the return postage prepaid, and shall contain (a) the name and address of the landowner, (b) a declaration, under penalty of perjury, stating that the voter is the owner of record or the authorized representative of the landowner entitled to vote and is the person whose name appears on the identification envelope, (c) the printed name, signature and address of the voter, (d) the date of signing and place of execution of the declaration described in clause (b), above, and (e) a notice that the envelope contains an official ballot and is to be opened only by the canvassing board. 158
Analysis and arguments with respect to the ballot proposition are hereby waived, as provided in Section 53327 of the Act.

SECTION 11. The City Clerk shall accept the ballots of the qualified electors in the office of the City Clerk at 303 East B Street, Ontario, California, to and including 7:30 p.m. on April 19, 2022, whether said ballots be personally delivered or received by mail.

The City Clerk shall have available ballots that may be marked at said location on the election day by said qualified electors.

SECTION 12. All actions heretofore taken by the officers, employees and agents of the City with respect to the proposed changes to the rate and method of apportionment of the Special Tax, or in connection with or related to any of the documents referred to herein, are hereby approved, confirmed and ratified.

SECTION 13. The officers, employees and agents of the City are hereby authorized and directed to take all actions and do all things that they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof.

SECTION 14. This Resolution shall take effect immediately upon its adoption.

The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.

PASSED, APPROVED AND ADOPTED this 19th day of April 2022. _____________________________________
PAUL S. LEON, MAYOR
ATTEST:
____________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
____________________________________

BEST BEST & KRIEGER, LLP

CITY ATTORNEY
159

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
160
A-1
4150-3506-1556.2

EXHIBIT A
CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 35 (COUNTRYSIDE PHASE 2 SOUTH - FACILITIES) AMENDED AND RESTATED RATE AND METHOD

OF APPORTIONMENT OF SPECIAL TAX
161
4150-3506-1556.2

EXHIBIT B

OFFICIAL BALLOT

CITY OF ONTARIO
April 19, 2022

SPECIAL ELECTION
This ballot is for a special, landowner election. The number of votes to be voted pursuant to this ballot is ____.

INSTRUCTIONS TO VOTERS:

To vote on the measure, mark a cross (+ or X) in the voting square after the word “YES” or after the word “NO”. All distinguishing marks or erasures are forbidden and make the ballot void. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Ontario and obtain another.

CITY OF ONTARIO
COMMUNITY FACILITIES DISTRICT NO. 35
(COUNTRYSIDE PHASE 2 SOUTH - FACILITIES)
MEASURE SUBMITTED TO VOTE OF VOTERS: Shall
the rate and method of apportionment of the special tax levied within City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South - Facilities) (the “Community Facilities District”) be changed so as to increase certain of the special tax rates thereunder, all as specified in the Resolution entitled “A Resolution of the City Council of the City of Ontario, California, Calling A Special Election for Proposed Changes to the Rate And Method of Apportionment of the Existing Special Tax of City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South - Facilities),” adopted by the City Council of the City of Ontario on April 19, 2022?
Yes:
No:
162
City of Ontario CFD No. 35 1 February 17, 2022

EXHIBIT A

CITY OF ONTARIO
COMMUNITY FACILITIES DISTRICT NO. 35
(COUNTRYSIDE PHASE 2 SOUTH – FACILITIES)

AMENDED AND RESTATED

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
A Special Tax shall be levied on all Assessor’s Parcels in the City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South – Facilities) (“CFD No. 35”) and collected each Fiscal Year, commencing in Fiscal Year 2018-19, in an amount determined by the City Council of the City of Ontario through the application of the Rate and Method of Apportionment, as described below. All of the real property in CFD No. 35, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable Final Subdivision Map, parcel map, condominium plan, or other recorded County map.
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the California Government Code. “Administrative Expenses” means the following actual or reasonably estimated costs directly related to the administration of CFD No. 35: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or CFD No. 35 or both); the costs of collecting the Special Taxes (whether by the County or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City or CFD No. 35 of complying with arbitrage rebate requirements; the costs to the City or CFD No. 35 of complying with City, CFD No. 35, or obligated persons disclosure requirements associated with applicable federal and state securities laws and of the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City or CFD No. 35 related to the analysis and reduction, if any, of the Special Tax on Single Family Property in accordance with Section C.1 herein; the costs of the City or CFD No. 35 related to an appeal of the Special Tax; the costs associated with the release of funds from any escrow account; the City’s administration fees and third party expenses; the costs of City staff time and reasonable overhead relating to CFD No. 35; and amounts estimated or advanced by the City or CFD No. 35 for any other 163
City of Ontario CFD No. 35 2 February 17, 2022
administrative purposes of the CFD, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. “Assessor’s Parcel” means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means, with respect to an Assessor’s Parcel, that number assigned to such Assessor’s Parcel by the County for purposes of identification. “Assigned Special Tax” means the Special Tax for each Land Use Class of Developed Property, as determined in accordance with Section C.1.a.2 below. “Backup Special Tax” means the Special Tax for each Land Use Class of Developed Property, as determined in accordance with Section C.1.a.3 below. “Bonds” means any bonds or other debt (as defined in Section 53317(d) of the Act) issued by CFD No. 35 under the Act and payable from Special Taxes. “Buildable Lot” means an individual lot, within a Final Subdivision Map or an area expected by CFD No. 35 to become Final Mapped Property, such as the area within a Tentative Tract Map, for which a building permit may be issued without further subdivision of such lot.
“CFD Administrator” means an official of the City responsible for determining the Special Tax Requirement, providing for the levy and collection of the Special Taxes, and performing the other duties provided for herein.
“CFD No. 19” means City of Ontario Community Facilities District No. 19 (Countryside Phase 1 – Services).
“CFD No. 35” means City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South – Facilities).
“City” means the City of Ontario, California.
“City Council” means the City Council of the City, acting as the legislative body of CFD No. 35.
“Contractual Impositions” means (a) a voluntary contractual assessment established and levied on an Assessor’s Parcel pursuant to Chapter 29 of Part 3 of Division 7 of the California Streets and Highways Code (commencing with Section 5898.10 et seq.), as amended from time to time, (b) a special tax established and levied on an Assessor’s Parcel pursuant to Section 53328.1 of the California Government Code and related provisions of the Act, as amended from time to time, and (c) any other fee, charge, tax, or assessment established and levied on an individual Assessor’s Parcel pursuant to a 164
City of Ontario CFD No. 35 3 February 17, 2022
contractual agreement or other voluntary consent by the owner thereof (e.g., property owner association assessments).
“County” means the County of San Bernardino.
“Designated Buildable Lot” means a Buildable Lot for which a building permit has not been issued by the City as of the date of calculation of the Backup Special Tax. “Developed Property” means for each Fiscal Year, all Taxable Property, exclusive of Final Mapped Property, Taxable Property Owner Association Property, and Taxable Public Property, for which a building permit or other applicable permit for new construction was issued after January 1, 2017, and before May 1 of the prior Fiscal Year. “Expected Residential Lot Count” means 235 Buildable Lots of Single Family Property or, as determined by the CFD Administrator, the number of Buildable Lots of Single Family Property based on the most recent Tentative Tract Map(s) or most recently recorded Final Subdivision Map(s) or modified Final Subdivision Map(s). “Facilities” means the public facilities authorized to be financed, in whole or in part, by CFD No. 35.
“Final Mapped Property” means, for each Fiscal Year, all Taxable Property, exclusive of Developed Property, Taxable Property Owner Association Property, and Taxable Public Property, which as of January 1 of the previous Fiscal Year was located within a Final Subdivision Map. The term Final Mapped Property shall include any parcel map or Final Subdivision Map, or portion thereof, that creates individual lots for which a building permit may be issued, including Parcels that are designated as a remainder Parcel (i.e., one where the size, location, etc., precludes any further subdivision or taxable use).
“Final Subdivision Map” means a final tract map, parcel map, or lot line adjustment approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or a condominium plan recorded in accordance with California Civil Code Section 4285 that, in either case, creates individual lots for which building permits may be issued without further subdivision.
“Fiscal Year” means the period starting July 1 and ending on the following June 30. “Indenture” means the indenture, fiscal agent agreement, resolution, or other instrument pursuant to which Bonds are issued, as modified, amended, and/or supplemented from time to time.
“Land Use Class” means any of the classes listed in Table 1 below. “Lower Income Household Welfare Exemption Property” means, for each Fiscal Year, an Assessor’s Parcel within the boundaries of CFD No. 35 that is subject to a welfare exemption under subdivision (g) of Section 214 of the California Revenue and 165
City of Ontario CFD No. 35 4 February 17, 2022
Taxation Code (or any successor statute), as indicated in the most recent County assessor’s roll finalized prior to such Fiscal Year.
“Maximum Special Tax” means, with respect to an Assessor’s Parcel of Taxable Property, the Maximum Special Tax determined in accordance with Section C.1 below that can be levied in any Fiscal Year on such Assessor’s Parcel of Taxable Property. “Minimum Sale Price” means the minimum price at which Units of a given Land Use Class have sold or are expected to be sold in a normal marketing environment and shall not include prices for such Units that are sold at a discount to expected sales prices for the purpose of stimulating the initial sales activity with respect to such Land Use Class. “Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit was issued by the City permitting the construction of one or more non-residential structures or facilities.
“Other Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit was issued by the City for purposes of constructing Units, excluding Single Family Attached Property and Single Family Detached Property. “Outstanding Bonds” means all Bonds which are outstanding under and in accordance with the provisions of the Indenture.
“Price Point Consultant” means any consultant or firm of such consultants selected by CFD No. 35 that (a) has substantial experience in performing price point studies for residential units within community facilities districts established under the Act or otherwise estimating or confirming pricing for residential units in such community facilities districts, (b) has recognized expertise in analyzing economic and real estate data that relates to the pricing of residential units in such community facilities districts, (c) is in fact independent and not under the control of CFD No. 35 or the City, (d) does not have any substantial interest, direct or indirect, with or in (i) CFD No. 35, (ii) the City, (iii) any owner of real property in CFD No. 35, or (iv) any real property in CFD No. 35, and (e) is not connected with CFD No. 35 or the City as an officer or employee thereof, but who may be regularly retained to make reports to CFD No. 35 or the City. “Price Point Study” means a price point study or a letter updating a previous price point study prepared by the Price Point Consultant pursuant to Section C herein. “Property Owner Association Property” means, for each Fiscal Year, any property within the boundaries of CFD No. 35 that was owned by a property owner association, including any master or sub-association, as of January 1 of the prior Fiscal Year. “Proportionately” means (a) for Developed Property in the first step of Section D below, that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor’s Parcels of Developed Property; however, for Developed Property in the fourth step of Section D below, Proportionately means that the amount of the increase above the Assigned Special Tax, if necessary, is equal for all Assessor’s Parcels of Developed Property, except that if the Backup Special Tax limits the increase on any 166
City of Ontario CFD No. 35 5 February 17, 2022
Assessor’s Parcel(s), then the amount of the increase shall be equal for the remaining Assessor’s Parcels; (b) for Final Mapped Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor’s Parcels of Final Mapped Property; (c) for Undeveloped Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor's Parcels of Undeveloped Property; (d) for Taxable Property Owner Association Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor’s Parcels of Taxable Property Owner Association Property; and (e) for Taxable Public Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor’s Parcels of Taxable Public Property.
“Public Property” means, for each Fiscal Year, property within the boundaries of CFD No. 35 that is (a) owned by, irrevocably offered to, or dedicated to the federal government, the State, the County, the City, or any local government or other public agency or (b) encumbered by an easement for purposes of public or utility right-of-way that makes impractical its use for any purpose other than that set forth in such easement, provided that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use.
“Rate and Method of Apportionment” means this Amended and Restated Rate and Method of Apportionment of Special Tax.
“Residential Floor Area” means all of the Square Footage of living area within the perimeter of a Unit, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Residential Floor Area shall be as set forth in the building permit(s) issued for such Assessor’s Parcel, or as set forth in other official records maintained by the City’s Building Department or other appropriate means selected by CFD No. 35. The actual Square Footage shall be rounded up to the next whole square foot. Once such determination has been made for an Assessor’s Parcel, it shall remain fixed in all future Fiscal Years unless an appeal pursuant to Section F below is approved that results in a change in the actual Square Footage. “Services” means the services authorized to be financed, in whole or in part, by CFD No.

35. “Single Family Attached Property” means all Assessor’s Parcels of Developed Property for which a building permit or use permit was issued for construction of a residential structure consisting of two or more Units that share common walls, have separate Assessor’s Parcel Numbers assigned to them (except for a duplex unit, which may share an Assessor’s Parcel with another duplex unit), and may be purchased by individual homebuyers (which shall still be the case even if the Units are purchased and subsequently offered for rent by the owner of the Unit), including such residential structures that meet the statutory definition of a condominium contained in California Civil Code Section 4125.
167
City of Ontario CFD No. 35 6 February 17, 2022
“Single Family Detached Property” means all Assessor’s Parcels of Developed Property for which a building permit was issued for construction of a Unit, on one legal lot, that does not share a common wall with another Unit. “Single Family Property” means all Assessor’s Parcels of Single Family Attached Property and Single Family Detached Property.
“Special Tax” means the special tax authorized by the qualified electors of CFD No. 35 to be levied within the boundaries of CFD No. 35.
“Special Tax Requirement” means for any Fiscal Year that amount required, after taking into account available amounts held in the funds and accounts established under the Indenture, for CFD No. 35 to: (i) pay debt service on all Outstanding Bonds which is due in the calendar year that commences in such Fiscal Year; (ii) pay periodic costs on the Bonds, including, but not limited to, credit enhancement and rebate payments on the Bonds; (iii) pay Administrative Expenses; (iv) provide any amounts required to establish or replenish any reserve fund for the Bonds; (v) pay directly for acquisition or construction of Facilities, or the cost of Services, to the extent that the inclusion of such amounts does not increase the Special Tax levy on Final Mapped Property or Undeveloped Property; (vi) provide an amount equal to Special Tax delinquencies based on the historical delinquency rate for the Special Tax as determined by the CFD Administrator.
“Square Footage” or “Sq. Ft.” means the floor area square footage reflected on the original construction building permit, or as set forth in other official records maintained by the City’s Building Department or other appropriate means selected by CFD No. 35, issued for construction of Single Family Property, Other Residential Property, or Non-Residential Property, plus any square footage subsequently added to a building of Non-Residential Property after issuance of a building permit for expansion or renovation of such building.
“State” means the State of California.
“Taxable Property” means, for each Fiscal Year, all of the Assessor’s Parcels within the boundaries of CFD No. 35 that are not exempt from the Special Tax pursuant to law or Section E below.
“Taxable Property Owner Association Property” means, for each Fiscal Year, all Assessor’s Parcels of Property Owner Association Property that are not exempt from the Special Tax pursuant to Section E below.
“Taxable Public Property” means, for each Fiscal Year, all Assessor’s Parcels of Public Property that are not exempt from the Special Tax pursuant to law or Section E below. “Tentative Tract Map” means a map: (i) showing a proposed subdivision of an Assessor’s Parcel(s) and the conditions pertaining thereto; (ii) that may or may not be based on a detailed survey; and (iii) that is not recorded by the County to create legal lots. 168
City of Ontario CFD No. 35 7 February 17, 2022
“Total Tax Burden” means, for a Unit within a Land Use Class, for the Fiscal Year in which Total Tax Burden is being calculated, the sum of (a) the Assigned Special Tax for such Land Use Class for such Fiscal Year, plus (b) the CFD No. 19 special tax for such Land Use Class for such Fiscal Year, plus (c) the ad valorem property taxes, special assessments, special taxes for any other overlapping community facilities districts, and any other governmental fees, charges (other than fees or charges for services such as sewer and trash), taxes, and assessments (which do not include Contractual Impositions) collected by the County on ad valorem tax bills and that the CFD Administrator estimates would be levied or imposed on such Unit in such Fiscal Year if the residential dwelling unit thereon or therein had been completed and sold, and was subject to such fees, charges, taxes, and assessments in such Fiscal Year. “Trustee” means the trustee or fiscal agent under the Indenture. “TTM 17449” means Tentative Tract Map No. 17449, the area of which is located within CFD No. 35.
“TTM 17450” means Tentative Tract Map No. 17450, the area of which is located within CFD No. 35.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Final Mapped Property, Taxable Public Property, or Taxable Property Owner Association Property.
“Unit” means an individual single-family detached or attached home, townhome, condominium, apartment, or other residential dwelling unit, including each separate living area within a half-plex, duplex, triplex, fourplex, or other residential structure.

B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, beginning with Fiscal Year 2018-19, all Taxable Property within CFD No. 35 shall be classified as Developed Property, Final Mapped Property, Taxable Public Property, Taxable Property Owner Association Property, or Undeveloped Property and shall be subject to Special Taxes in accordance with the Rate and Method of Apportionment as determined pursuant to Sections C and D below. Assessor’s Parcels of Single Family Property shall be assigned to Land Use Classes 1 through 7, as listed in Table 1 below based on the Residential Floor Area of the Units on such Assessor’s Parcels. Other Residential Property shall be assigned to Land Use Class 8, and NonResidential Property shall be assigned to Land Use Class 9.

C. MAXIMUM SPECIAL TAX

1. Special Tax
At least 30 days prior to the issuance of Bonds, the Assigned Special Tax on Developed Property (set forth in Table 1 below) shall be analyzed in accordance with and subject to the conditions set forth in this Section C. At such time, CFD 169
City of Ontario CFD No. 35 8 February 17, 2022
No. 35 shall select and engage a Price Point Consultant and the CFD Administrator shall request the Price Point Consultant to prepare a Price Point Study setting forth the Minimum Sale Price of Units within each Land Use Class.

If based upon such Price Point Study the CFD Administrator calculates that the Total Tax Burden applicable to Units within one or more Land Use Classes of Single Family Property to be constructed within CFD No. 35 exceeds 1.95% of the Minimum Sale Price of such Units, the Assigned Special Tax shall be reduced to the extent necessary to cause the Total Tax Burden that shall apply to Units within such Land Use Class(es) not to exceed 1.95% of the Minimum Sale Price of such Units.

Each Assigned Special Tax reduction for a Land Use Class shall be calculated by the CFD Administrator separately, and it shall not be required that such reduction be proportionate among Land Use Classes. In connection with any reduction in the Assigned Special Tax, the Backup Special Tax shall also be reduced by the CFD Administrator based on the percentage reduction in Maximum Special Tax revenues within the Tentative Tract Map area(s) where the Assigned Special Tax reductions occurred. Upon determining the reductions, if any, in the Assigned Special Tax and Backup Special Tax required pursuant to this Section C, the CFD Administrator shall complete the Certificate of Modification of Special Tax substantially in the form attached hereto as Exhibit A (the “Certificate of Modification”), shall execute such completed Certificate of Modification, and shall deliver such executed Certificate of Modification to CFD No. 35. Upon receipt thereof, if in satisfactory form, CFD No. 35 shall execute such Certificate of Modification. The reduced Assigned Special Tax and Backup Special Tax specified in such Certificate of Modification shall become effective upon the execution of such Certificate of Modification by CFD No. 35.

The Special Tax reductions required pursuant to this section shall be reflected in an amended notice of Special Tax lien, which CFD No. 35 shall cause to be recorded with the County Recorder as soon as practicable after execution of the Certificate of Modification by CFD No. 35. The reductions in this section apply to Single Family Property, but not to Other Residential Property or NonResidential Property. a. Developed Property
1) Maximum Special Tax
The Maximum Special Tax that may be levied in any Fiscal Year for each Assessor’s Parcel classified as Developed Property shall be the greater of (i) the amount derived by application of the Assigned Special Tax or (ii) the amount derived by application of the Backup Special Tax. The Maximum Special Tax shall not increase in future years, other than as calculated pursuant to Section C.1.a.3 below.
170
City of Ontario CFD No. 35 9 February 17, 2022
2) Assigned Special Tax
The Assigned Special Tax that may be levied in any Fiscal Year for each Land Use Class is shown below in Table 1.

TABLE 1
ASSIGNED SPECIAL TAX – DEVELOPED PROPERTY
3) Backup Special Tax
The Backup Special Tax shall be $3,662 per Unit for Single Family Property. However, if the Expected Residential Lot Count does not equal 235 for Single Family Property, and the City has not issued Bonds, then the Backup Special Tax for Designated Buildable Lots of Single Family Property shall be calculated according to the following formula:

Backup Special Tax = $860,583 ÷ Expected Residential Lot Count for Single Family Property
If any portion of a Final Subdivision Map, or any area expected by CFD No. 35 to become Final Mapped Property, such as the area within TTM 17449, TTM 17450, or any other Tentative Tract Map, changes any time after the City has issued Bonds, causing an adjustment to the number of Designated Buildable Lots, then the Backup Special Tax for all Designated Buildable Lots of Single Family Property subject to the change shall be calculated according to the following steps:

Step 1: Determine the total Backup Special Taxes that
could have been collected from Designated
Land
Use
Class
Description
Residential
Floor Area
(Square
Footage)
Assigned
Special Tax
1 Single Family Property < 1,501 $3,175 per Unit
2 Single Family Property 1,501 – 1,700 $3,283 per Unit
3 Single Family Property 1,701 – 1,900 $3,449 per Unit
4 Single Family Property 1,901 – 2,100 $3,665 per Unit
5 Single Family Property 2,101 – 2,300 $3,748 per Unit
6 Single Family Property 2,301 – 2,500 $3,881 per Unit
7 Single Family Property > 2,500 $4,065 per Unit
8 Other Residential Property $50,380 per Acre
9 Non-Residential Property $50,380 per Acre
171
City of Ontario CFD No. 35 10 February 17, 2022
Buildable Lots of Single Family Property prior to
the Final Subdivision Map or expected Final
Mapped Property change.

Step 2: Divide the amount determined in Step 1 by the
number of Designated Buildable Lots of Single
Family Property that exists after the Final
Subdivision Map or expected Final Mapped
Property change.

Step 3: Apply the amount determined in Step 2 as the
Backup Special Tax per Unit for Single Family
Property.

The Backup Special Tax for an Assessor’s Parcel shall not change once an Assessor’s Parcel is classified as Developed Property.
b. Final Mapped Property, Taxable Public Property, Taxable Property Owner Association Property, and Undeveloped Property
The Maximum Special Tax for Final Mapped Property, Taxable Public Property, Taxable Property Owner Association Property, and Undeveloped Property shall be $50,380 per Acre, and shall not be subject to increase or reduction and, therefore, shall remain the same in every Fiscal Year.

2. Multiple Land Use Classes on an Assessor’s Parcel
In some instances an Assessor’s Parcel of Developed Property may contain more than one Land Use Class. The Maximum Special Tax levied on such Assessor’s Parcel shall be the sum of the Maximum Special Tax for all Units of Single Family Property and Acres of Other Residential Property and Non-Residential Property (based on the pro rata share of Square Footage between Other Residential Property and Non-Residential Property, according to the applicable building permits, Final Subdivision Map, parcel map, condominium plan, or other recorded County map) located on that Assessor’s Parcel.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Each Fiscal Year, beginning with Fiscal Year 2018-19, the CFD Administrator shall determine the Special Tax Requirement for such Fiscal Year. The Special Tax shall then be levied as follows:

First: If needed to satisfy the Special Tax Requirement, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property up to 100% of the applicable Assigned Special Tax;
172
City of Ontario CFD No. 35 11 February 17, 2022
Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, then the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Final Mapped Property up to 100% of the Maximum Special Tax for Final Mapped Property;
Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, then the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax for Undeveloped Property;
Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the levy of the Special Tax on each Assessor’s Parcel of Developed Property whose Maximum Special Tax is determined through the application of the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor’s Parcel; Fifth: If additional monies are needed to satisfy the Special Tax Requirement after the first four steps have been completed, then the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Property Owner Association Property up to the Maximum Special Tax for Taxable Property Owner Association Property; Sixth: If additional monies are needed to satisfy the Special Tax Requirement after the first five steps have been completed, then the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Public Property up to the Maximum Special Tax for Taxable Public Property.

Notwithstanding the above, under no circumstances shall the Special Tax levied in any Fiscal Year on any Assessor’s Parcel of Single Family Property or Other Residential Property for which an occupancy permit for private residential use has been issued be increased as a result of delinquency or default by the owner or owners of any other Assessor’s Parcel or Assessor’s Parcels within CFD No. 35 by more than ten percent above the amount that would have been levied in that Fiscal Year had there never been any such delinquencies or defaults.

E. EXEMPTIONS
No Special Tax shall be levied on up to 2.44 Acres of Public Property and up to 14.12 Acres of Property Owner Association Property. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which property becomes Public Property or Property Owner Association Property.

Property Owner Association Property or Public Property that is not exempt from the Special Tax under this section shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the fifth or sixth step, respectively, in Section D above, up to 100% of the applicable Maximum Special Tax for Taxable Property Owner Association Property and Taxable Public Property. No Special Tax shall be levied in any Fiscal Year on Assessor’s Parcels that have fully prepaid the Special Tax obligation pursuant to the formula set forth in Section H.
173
City of Ontario CFD No. 35 12 February 17, 2022
No Special Tax shall be levied on Lower Income Household Welfare Exemption Property; provided, however, that if, in any Fiscal Year, applicable law does not require that Lower Income Household Welfare Exemption Property be exempt from some portion, or all, of the Special Tax, such portion, or all, of the Special Tax shall be levied on such property in accordance with this Rate and Method of Apportionment based on the Land Use Class to which the Assessor’s Parcel is assigned.

F. APPEALS
Any property owner may file a written appeal of the Special Tax with CFD No. 35 claiming that the amount or application of the Special Tax is not correct. The appeal must be filed not later than one calendar year after having paid the Special Tax that is disputed, and the appellant must be current in all payments of Special Taxes. In addition, during the term of the appeal process, all Special Taxes levied must be paid on or before the payment date established when the levy was made.

The appeal must specify the reasons why the appellant claims the Special Tax is in error.

The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination.

If the property owner disagrees with the CFD Administrator’s decision relative to the appeal, the owner may then file a written appeal with the City Council whose subsequent decision shall be final and binding on all interested parties. If the decision of the CFD Administrator or subsequent decision by the City Council requires the Special Tax to be modified or changed in favor of the property owner, then the CFD Administrator shall determine if sufficient Special Tax revenue is available to make a cash refund. If a cash refund cannot be made, then an adjustment shall be made to credit future Special Tax levy(ies).

This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to filing any legal action by such owner.

G. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the Special Taxes may be collected in such other manner as the City Council shall determine, including direct billing of affected property owners.

H. PREPAYMENT OF SPECIAL TAX
The following definitions apply to this Section H:
“CFD Public Facilities” means $12,110,000 each Prepayment Period, or such lower number as determined by the City Council to be sufficient to fund the Facilities and Services to be provided by CFD No. 35.
174
City of Ontario CFD No. 35 13 February 17, 2022
“Expenditures Fund” means funds or accounts, regardless of their names, that are established to hold moneys that are available to acquire or construct Facilities and to fund Services.
“Future Facilities Costs” means the CFD Public Facilities minus (i) Facilities and Services costs previously paid from the Expenditures Fund during the Prepayment Period in which the prepayment is being made, (ii) moneys currently on deposit in the Expenditures Fund from deposits made during the Prepayment Period in which the prepayment is being made, and (iii) moneys currently on deposit in an escrow fund that are expected to be available to finance Facilities costs. In no event shall the amount of Future Facilities Costs be less than zero.
“Prepayment Period” means one of three periods of time during which a Special Tax prepayment may be made.
“Prepayment Period 1” means July 1, 2018, through June 30, 2052. “Prepayment Period 2” means July 1, 2052, through June 30, 2085. “Prepayment Period 3” means July 1, 2085, through June 30, 2119.

1. Prepayment in Full
The obligation of an Assessor's Parcel to pay the Special Tax may be prepaid as described herein, provided that a prepayment may be made only for Assessor’s Parcels for which a building permit for new construction was issued after January 1, 2017, and only if there are no delinquent Special Taxes with respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Special Tax obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount for such Assessor's Parcel. The CFD Administrator may charge a fee for providing this service. Prepayment in any six month period must be made not less than 45 days prior to the next occurring date that notice of redemption of Bonds from the proceeds of such prepayment may be given to the Trustee pursuant to the Indenture.

The Special Tax Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below):

Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Total Prepayment Amount
175
City of Ontario CFD No. 35 14 February 17, 2022
As of the proposed date of prepayment, the Special Tax Prepayment Amount (defined below) shall be calculated by the CFD Administrator as follows:

Paragraph No.

1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel, and determine the Prepayment Period for the proposed prepayment.

2. Compute the Assigned Special Tax and Backup Special Tax for the Assessor’s Parcel to be prepaid based on the Developed Property Special Tax which is, or could be, charged in the current Fiscal Year. For Assessor’s Parcels of Final Mapped Property (for which a building permit has been issued but which is not yet classified as Developed Property) to be prepaid, compute the Assigned Special Tax and Backup Special Tax for that Assessor’s Parcel as though it was already designated as Developed Property, based upon the building permit which has already been issued for that Assessor’s Parcel.

3. (a) Divide the Assigned Special Tax computed pursuant to Paragraph 2 by the total estimated Assigned Special Tax for CFD No. 35 based on the Developed Property Special Tax which could be charged in the current Fiscal Year on all expected development through buildout of CFD No. 35, excluding any Assessor’s Parcels which have been prepaid, and
(b) Divide the Backup Special Tax computed pursuant to Paragraph 2 by the estimated total Backup Special Tax at buildout of CFD No. 35, excluding any Assessor’s Parcels which have been prepaid.

4. Multiply the larger quotient computed pursuant to Paragraph 3(a) or 3(b) by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the “Bond Redemption Amount”).

5. Multiply the Bond Redemption Amount computed pursuant to Paragraph 4 by the applicable redemption premium (e.g., the redemption price minus 100%), if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).

6. Compute the Future Facilities Costs for the applicable Prepayment Period.

7. Multiply the larger quotient computed pursuant to Paragraph 3(a) or 3(b) by the amount determined pursuant to Paragraph 6 to compute the amount of Future Facilities Costs to be prepaid (the “Future Facilities Amount”).

8. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds.

9. Determine the Special Tax levied on the Assessor’s Parcel in the current Fiscal Year which has not yet been paid.
176
City of Ontario CFD No. 35 15 February 17, 2022

10. Add the amounts computed pursuant to Paragraphs 8 and 9 to determine the “Defeasance Amount”.

11. Verify the administrative fees and expenses of CFD No. 35, including the costs to compute the prepayment, the costs to invest the prepayment proceeds, the costs to redeem Bonds, and the costs to record any notices to evidence the prepayment and the redemption (the “Administrative Fees and Expenses”).

12. If reserve funds for the Outstanding Bonds, if any, are at or above 100% of the reserve requirement (as defined in the Indenture) on the prepayment date, a reserve fund credit shall be calculated as a reduction in the applicable reserve fund for the Outstanding Bonds to be redeemed pursuant to the prepayment (the “Reserve Fund Credit”). No Reserve Fund Credit shall be granted if reserve funds are below 100% of the reserve requirement on the prepayment date or the redemption date.

13. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to Paragraphs 4, 5, 7, 10, and 11, less the amount computed pursuant to Paragraph 12 (the “Prepayment Amount”).

The Special Tax Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such cases, the increment above $5,000, or integral multiple thereof, will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of Bonds or to make debt service payments.

As a result of the payment of the current Fiscal Year’s Special Tax levy as determined under Paragraph 9 (above), the CFD Administrator shall remove the current Fiscal Year’s Special Tax levy for such Assessor’s Parcel from the County tax rolls. With respect to any Assessor's Parcel that is prepaid during Prepayment Period 3, the CFD Administrator shall cause a suitable notice to be recorded in compliance with the Act to indicate that the Special Tax has been prepaid and that the obligation of such Assessor's Parcel to pay the Special Tax shall cease.

With respect to the Special Tax for any Assessor’s Parcel that is prepaid during Prepayment Period 1 or Prepayment Period 2, the obligation of such Assessor’s Parcel to pay the Special Tax shall be tolled, or suspended, through the end of such Prepayment Period, but shall resume in the first Fiscal Year of the subsequent Prepayment Period.

The CFD Administrator shall cause a suitable notice to be recorded in compliance with the Act to indicate that the Special Tax has been satisfied for the remainder of the applicable Prepayment Period but has not been permanently satisfied and the obligation 177
City of Ontario CFD No. 35 16 February 17, 2022
to pay the Special Tax will resume in the first Fiscal Year of the Prepayment Period following the Prepayment Period in which the prepayment was made. Once the obligation of an Assessor’s Parcel to pay the Special Tax resumes, the Special Tax for the then applicable Prepayment Period may be prepaid.

Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Tax that may be levied on Taxable Property within CFD No. 35 (after excluding 2.44 Acres of Public Property and 14.12 acres of Property Owner Association Property) both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds.

2. Prepayment in Part
The Special Tax on an Assessor’s Parcel for which a building permit for new construction was issued after January 1, 2017, may be partially prepaid. The amount of the prepayment shall be calculated as in Section H.1, except that a partial prepayment shall be calculated by the CFD Administrator according to the following formula:

PP = (PF – AE) x % + AE.

The terms above have the following meaning:

PP = the partial prepayment
PF = the Prepayment Amount (full prepayment) for the Special Tax calculated according to Section H.1
AE = the Administrative Fees and Expenses determined pursuant to paragraph 11 above % = the percentage by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax
The Special Tax partial prepayment amount must be sufficient to redeem at least a $5,000 increment of Bonds.

The owner of any Assessor’s Parcel who desires such prepayment shall notify the CFD Administrator of such owner’s intent to partially prepay the Special Tax and the percentage by which the Special Tax shall be prepaid. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax for an Assessor’s Parcel within thirty (30) days of the request and may charge a fee for providing this service. With respect to any Assessor’s Parcel that is partially prepaid, the CFD Administrator shall (i) distribute the remitted prepayment funds according to Section H.1, and (ii) indicate in the records of CFD No. 35 that there has been a partial prepayment of the Special Tax and that a portion of the Special Tax with respect to such Assessor’s Parcel, equal to the outstanding percentage (100% - “%”, as defined above) of the Maximum Special Tax, shall continue to be levied on such Assessor’s Parcel pursuant to Section D during the Prepayment Period in which the partial prepayment is made.

For partial prepayments made during Prepayment Period 1 or Prepayment Period 2, the full amount of the Special Tax shall resume in the first Fiscal Year of the Prepayment 178
City of Ontario CFD No. 35 17 February 17, 2022
Period following the Prepayment Period in which the partial prepayment was made.

Once the obligation of an Assessor’s Parcel to pay the Special Tax resumes, the Special Tax for the then applicable Prepayment Period may be prepaid.

I. TERM OF SPECIAL TAX
The Fiscal Year after which no further Special Tax shall be levied or collected is Fiscal Year 2118-2119, except that the Special Tax that was lawfully levied in or before such Fiscal Year and that remains delinquent may be collected in subsequent years. 179

EXHIBIT A

CERTIFICATE OF MODIFICATION OF SPECIAL TAX
(PAGE 1 OF 2)
CITY OF ONTARIO AND CFD NO. 35 CERTIFICATE

1. Pursuant to Section C.1 of the Amended and Restated Rate and Method of Apportionment of Special Tax (the “Rate and Method”) for City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South – Facilities) (“CFD No. 35”), the Assigned Special Tax and the Backup Special Tax for Developed Property within CFD No. 35 has been modified.
a. The information in Table 1 relating to the Assigned Special Tax for Developed Property within CFD No. 35, as stated in Section C.1.a.2 of the Rate and Method of Apportionment, has been modified as follows:

TABLE 1
ASSIGNED SPECIAL TAX – DEVELOPED PROPERTY
Land
Use
Class
Description
Residential
Floor Area
(Square
Footage)
Assigned
Special Tax
1 Single Family Property < 1,501 $[ ] per Unit
2 Single Family Property 1,501 – 1,700 $[ ] per Unit
3 Single Family Property 1,701 – 1,900 $[ ] per Unit
4 Single Family Property 1,901 – 2,100 $[ ] per Unit
5 Single Family Property 2,101 – 2,300 $[ ] per Unit
6 Single Family Property 2,301 – 2,500 $[ ] per Unit
7 Single Family Property > 2,500 $[ ] per Unit
8 Other Residential Property $[ ] per Acre
9 Non-Residential Property $[ ] per Acre
180

EXHIBIT A

CERTIFICATE OF MODIFICATION OF SPECIAL TAX
(PAGE 2 OF 2)
b. The Backup Special Tax for Developed Property, as stated in Section C.1.a.3, shall be modified as follows:

The Backup Special Tax shall be $[____] per Unit for Single Family Property. However, if the Expected Residential Lot Count does not equal 235 for Single Family Property, and the City has not issued Bonds, then the Backup Special Tax for Designated Buildable Lots of Single Family Property shall be calculated according to the following formula:

Backup Special Tax = $[______] ÷ Expected Residential
Lot Count for Single Family Property

2. The Special Tax for Developed Property may only be modified prior to the first issuance of CFD No. 35 Bonds.

3. Upon execution of this Certificate by CFD No. 35, CFD No. 35 shall cause an amended notice of Special Tax lien for CFD No. 35 to be recorded reflecting the modifications set forth herein.

Capitalized undefined terms used herein have the meanings ascribed thereto in the Rate and Method. The modifications set forth in this Certificate have been calculated by the CFD Administrator in accordance with the Rate and Method.

GOODWIN CONSULTING GROUP, INC.

CFD ADMINISTRATOR
By:_________________________________ Date:______________________

The undersigned acknowledges receipt of this Certificate and of the modification of the Assigned Special Tax and the Backup Special Tax for Developed Property as set forth in this Certificate.

CITY OF ONTARIO
COMMUNITY FACILITIES DISTRICT NO. 35
(COUNTRYSIDE PHASE 2 SOUTH – FACILITIES)
By:_________________________________ Date:______________________ 181
RESOLUTION NO. ________

A RESOLUTION OF CHANGE OF THE CITY COUNCIL OF THE CITY OF

ONTARIO, CALIFORNIA, DECLARING RESULTS OF A SPECIAL

ELECTION, DETERMINING THAT CHANGES TO THE RATE AND

METHOD OF APPORTIONMENT OF THE EXISTING SPECIAL TAX OF
CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 35
(COUNTRYSIDE PHASE 2 SOUTH - FACILITIES) ARE LAWFULLY

AUTHORIZED AND DIRECTING RECORDING OF AN AMENDMENT TO
NOTICE OF SPECIAL TAX LIEN.

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

SECTION 2. The City Council has received, reviewed and hereby accepts the Canvass.

SECTION 3. The City Council hereby finds and declares that the ballot proposition submitted to the qualified electors of the Community Facilities District pursuant to the Resolution Calling Election has been passed and approved by such electors in accordance with Section 53338 of the Act.
182
SECTION 4. The City Council hereby finds and determines that the changes to the rate and method of apportionment of the Special Tax so as to increase certain of the Special tax rates thereunder, as described in the Resolution Calling Election, are lawfully authorized.

SECTION 5. The City Clerk is hereby directed to execute and cause to be recorded in the office of the County Recorder of the County of San Bernardino an amendment to the notice of special tax lien for the Community Facilities District in accordance with Section 3117.5 of the California Streets and Highways Code.

SECTION 6. All actions heretofore taken by the officers, employees and agents of the City with respect to the changes to the rate and method of apportionment of the Special Tax, or in connection with or related to any of the documents referred to herein, are hereby approved, confirmed and ratified.

SECTION 7. The officers, employees and agents of the City are hereby authorized and directed to take all actions and do all things that they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof.

SECTION 8. This Resolution shall take effect immediately upon its adoption.

The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.

PASSED, APPROVED, AND ADOPTED this 19th day of April 2022. _____________________________________
PAUL S. LEON, MAYOR
ATTEST:
____________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
____________________________________

BEST BEST & KRIEGER, LLP

CITY ATTORNEY
183

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
184

EXHIBIT A

CITY OF ONTARIO
COMMUNITY FACILITIES DISTRICT NO. 35
(COUNTRYSIDE PHASE 2 SOUTH - FACILITIES)

CANVASS AND STATEMENT OF RESULTS OF ELECTION
I hereby certify that on April 19, 2022, I canvassed the returns of the special election held on April 19, 2022 for the City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South - Facilities), that the total number of ballots cast in said Community Facilities District and the total number of votes cast for and against the proposition are as follows and that the totals as shown for and against the proposition are true and correct:

Qualified
Landowner
Votes
Votes
Cast YES NO
City of Ontario Community Facilities
District No. 35 (Countryside Phase 2
South - Facilities) Special Election,
April 19, 2022
35 ___ ___ ___
MEASURE SUBMITTED TO VOTE OF VOTERS: Shall the rate and method of apportionment of the special tax levied within City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South - Facilities) (the “Community Facilities District”) be changed so as to increase certain of the special tax rates thereunder, all as specified in the Resolution entitled “A Resolution of the City Council of the City of Ontario, California, Calling a Special Election for Proposed Changes to the Rate and Method of Apportionment of the Existing Special Tax of City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South - Facilities),” adopted by the City Council of the City of Ontario on April 19, 2022?
IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND this 19th day of April 2022.

BY:

SHEILA MAUTZ, CITY CLERK
185
ORDINANCE NO. ________

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, AMENDING AND RESTATING ORDINANCE NO. 3082

LEVYING SPECIAL TAXES WITHIN THE CITY OF ONTARIO
COMMUNITY FACILITIES DISTRICT NO. 35 (COUNTRYSIDE PHASE 2 SOUTH - FACILITIES).

WHEREAS, the City Council (the “City Council”) of the City of Ontario (the “City”) previously established City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South - Facilities) (the “Community Facilities District”) pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”);
WHEREAS, the qualified electors of the Community Facilities District authorized the levy of a special tax (the “Special Tax”) within the Community Facilities District to pay, in whole or in part, the cost of providing certain facilities (the “Facilities”) and certain services (the “Services”) and incidental expenses pursuant to the Act referenced in the proposition submitted to such qualified electors;
WHEREAS, pursuant to Section 53340 of the Act, the City Council, on November 7, 2017, adopted Ordinance No. 3082, entitled “An Ordinance of the City Council of the City of Ontario, California, Levying Special Taxes within the City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South - Facilities)” (the “Levy Ordinance”), levying the Special Tax at the rate and in accordance with the method of apportionment referenced therein (the “Original Rate and Method”); WHEREAS, on March 15, 2022, the City Council adopted a resolution entitled “A Resolution of the City Council of the City of Ontario, California, of Consideration to Change the Rate and Method of Apportionment of the Existing Special Tax of City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South - Facilities)” proposing changes to the Original Rate and Method so as to increase certain of the Special Tax rates thereunder;
WHEREAS, on April 19, 2022, the City Council, pursuant to the Act, adopted a resolution entitled “A Resolution of the City Council of the City of Ontario, California, Calling a Special Election for Proposed Changes to the Rate and Method of Apportionment of the Existing Special Tax of City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South - Facilities)” (the “Resolution Calling Election”) calling for a special election of the qualified electors within the Community Facilities District and submitting to such qualified electors the proposition to change the Original Rate and Method so as to increase certain of the Special Tax rates thereunder, as reflected in the City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South - Facilities) Amended and Restated Rate and Method of Apportionment of Special Tax (the “Restated Rate and Method”) attached thereto and incorporated therein; WHEREAS, on April 19, 2022, the City Council adopted a resolution entitled “A Resolution of the City Council of the City of Ontario, California, Declaring Results of a Special Election, Determining That Changes to the Rate and Method of Apportionment of 186
the Existing Special Tax of City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South - Facilities) Are Lawfully Authorized and Directing Recording of an Amendment to Notice of Special Tax Lien,” declaring that the ballot proposition submitted to the qualified electors of the Community Facilities District pursuant to the Resolution Calling Election has been passed and approved by such electors and finding and determining that that the changes to the Original Rate and Method, as reflected in the Restated Rate and Method, were lawfully authorized; and WHEREAS, this Ordinance amends and restates the Levy Ordinance in order to reflect such changes;
THE CITY COUNCIL OF THE CITY OF ONTARIO DOES ORDAIN AS FOLLOWS:

SECTION 1. The Levy Ordinance is hereby amended and restated to read in full as set forth herein.

SECTION 2. The City Council hereby authorizes and levies the Special Tax within the Community Facilities District pursuant to Sections 53328 and 53340 of the Act, at the rate and in accordance with the method of apportionment set forth in the Restated Rate and Method. The Special Tax is hereby levied in each fiscal year until the last fiscal year in which the Special Tax is authorized to be levied pursuant to the Restated Rate and Method.

SECTION 3. The City Council may, in accordance with subdivision (b) of Section 53340 of the Act, provide, by resolution, for the levy of the Special Tax in future tax years at the same rate or at a lower rate than the rate provided by this Ordinance. In no event shall the Special Tax be levied on any parcel within the Community Facilities District in excess of the maximum tax specified therefor in the Restated Rate and Method.

SECTION 4. The Special Tax shall be levied on all of the parcels in the Community Facilities District, unless exempted by law or by the Restated Rate and Method.

SECTION 5. The proceeds of the Special Tax shall only be used to pay, in whole or in part, the cost of providing the Facilities and Services and incidental expenses pursuant to the Act.

SECTION 6. The Special Tax shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in the case of delinquency as is provided for ad valorem taxes, unless another procedure is adopted by the City Council.

SECTION 7. If for any reason any portion of this Ordinance is found to be invalid, or if the Special Tax is found inapplicable to any particular parcel within the Community Facilities District, by a court of competent jurisdiction, the balance of this Ordinance and the application of the Special Tax to the remaining parcels within the Community Facilities District shall not be affected.
187
SECTION 8. The Mayor shall sign this Ordinance and the City Clerk shall certify as to the adoption and shall cause a summary hereof to be published at least once in a newspaper of general circulation in the City of Ontario, California within fifteen (15) days of the adoption. The City Clerk shall post a certified copy of this Ordinance, including the vote for and against the same, in the Office of the City Clerk, in accordance with California Government Code Section 36933.

The City Clerk of the City of Ontario shall certify as to the adoption of this Ordinance.

PASSED, APPROVED, AND ADOPTED this ________ day of _________ 2022. _____________________________________
PAUL S. LEON, MAYOR
ATTEST:
_________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
_______________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY
188

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

CITY OF ONTARIO )
I, SHEILA MAUTZ, City Clerk of the City of Ontario, DO HEREBY CERTIFY that foregoing Ordinance No. _______ was duly introduced at a regular meeting of the City Council of the City of Ontario held _____________ and adopted at the regular meeting held ___________, 2022 by the following roll call vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
_________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
I hereby certify that the foregoing is the original of Ordinance No. _______ duly passed and adopted by the Ontario City Council at their regular meeting held ____________ and that Summaries of the Ordinance were published on ___________ and _____________, in the Inland Valley Daily Bulletin newspaper.
__________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
189
RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, DEEMING IT NECESSARY TO AMEND RESOLUTION NO. 2017-124 IN ORDER TO INCREASE THE MAXIMUM AGGREGATE

AMOUNT OF BONDED INDEBTEDNESS THAT CITY OF ONTARIO
COMMUNITY FACILITIES DISTRICT NO. 35 (COUNTRYSIDE PHASE 2 SOUTH - FACILITIES) IS AUTHORIZED TO INCUR.

WHEREAS, on October 17, 2017, the City Council (the “City Council”) of the City of Ontario (the “City”), pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), adopted Resolution No. 2017-123, entitled “A Resolution of the City Council of the City of Ontario, California, of Formation of the City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South - Facilities), Authorizing the Levy of a Special Tax within the Community Facilities District and Establishing an Appropriations Limit for the Community Facilities District,” Resolution No. 2017-124, entitled “A Resolution of the City Council of the City of Ontario, California, Deeming it Necessary to Incur Bonded Indebtedness within the City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South - Facilities)” (the “Resolution Deeming it Necessary to Incur”), and Resolution No. 2017-125, entitled “A Resolution of the City Council of the City of Ontario, California, Calling Special Election for City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South - Facilities),” which resolutions established City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South - Facilities) (the “Community Facilities District”), authorized the levy of a special tax within the Community Facilities District and called an election within the Community Facilities District on the proposition of incurring indebtedness, levying a special tax and establishing an appropriations limit for the Community Facilities District, respectively, for the purpose of financing certain public facilities and services, as further provided in the Resolution of Formation; and
WHEREAS, on October 17, 2017, an election was held in which the qualified electors of the Community Facilities District approved said proposition by more than the two-thirds vote required by the Act; and
WHEREAS, pursuant to the Resolution Deeming it Necessary to Incur and said election, the Community Facilities District is authorized to incur bonded indebtedness in a maximum aggregate amount of not to exceed $27,000,000; and WHEREAS, on March 15, 2022, the City Council, pursuant to the Act, adopted a Resolution entitled “A Resolution of the City Council of the City Of Ontario, California, of Intention to Amend Resolution No. 2017-124 In Order to Increase the Maximum Aggregate Amount of Bonded Indebtedness that City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South - Facilities) is Authorized to Incur” (the “Resolution of Intention”), declaring the necessity to increase the maximum aggregate amount of bonded indebtedness that the Community Facilities District is authorized to incur from $27,000,000 to $42,000,000 and setting the date for a public hearing to be held on the proposed increase in the maximum aggregate amount of bonded indebtedness that the Community Facilities District is authorized to incur; and 190
WHEREAS, pursuant to the Resolution of Intention, notice of said public hearing was published in the Inland Valley Daily Bulletin, a newspaper of general circulation published in the area of the Community Facilities District, in accordance with the Act; and WHEREAS, on this date, the City Council opened, conducted and closed said public hearing; and
WHEREAS, at said public hearing, any person interested, including persons owning property within the Community Facilities District and desiring to appear and present any matters material to the questions set forth in the Resolution of Intention appeared and presented such matters; and
WHEREAS, oral or written protests against the proposed increase in the maximum aggregate amount of bonded indebtedness that the Community Facilities District is authorized to incur were not made or filed at or before said public hearing by 50% or more of the registered voters, or six registered voters, whichever is more, residing within the territory of the Community Facilities District, or the owners of one-half or more of the area of land in the territory of the Community Facilities District and not exempt from the special tax; and
WHEREAS, there has been filed with the City Clerk of the City a letter from the Registrar of Voters of the County of San Bernardino indicating that no persons were registered to vote within the territory of the Community Facilities District as of March 17, 2022, and, accordingly, that 12 or more persons have not been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of said public hearing.

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

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

SECTION 2. The City Council deems it is necessary that the maximum aggregate amount of bonded indebtedness that the Community Facilities District is authorized to incur be increased from $27,000,000 to $42,000,000.

SECTION 3. In order to increase the maximum aggregate amount of bonded indebtedness that the Community Facilities District is authorized to incur from $27,000,000 to $42,000,000, Section 5 of the Resolution Deeming it Necessary to Incur shall be amended to read in full as follows:
“SECTION 5. The maximum aggregate amount of debt to be incurred is $42,000,000.”
SECTION 4. Pursuant to the provisions of the Act, the proposal to increase the maximum aggregate amount of bonded indebtedness that the Community Facilities District is authorized to incur from $27,000,000 to $42,000,000 by amending Section 5 of 191
the Resolution Deeming it Necessary to Incur shall be subject to the approval of the qualified electors of the Community Facilities District at a special election. The City Council hereby finds and determines that no persons were registered to vote within the territory of the Community Facilities District as of March 17, 2022, and that 12 or more persons have not been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of the public hearing held by the City Council on the proposed increase in the maximum aggregate amount of bonded indebtedness that the Community Facilities District is authorized to incur. Accordingly, pursuant to Section 53326 of the Act, the vote shall be by the landowners of the Community Facilities District and each person who is the owner of land as of the close of said public hearing, or the authorized representative thereof, shall have one vote for each acre or portion of an acre that he or she owns within the Community Facilities District not exempt from the special tax. The voting procedure shall be by mailed or hand-delivered ballot.

SECTION 5. The date of the special community facilities district election at which time the proposition shall be submitted to the voters is April 19, 2022.

SECTION 6. The election is to be conducted by mail ballot. The mailed ballots are required to be received in the office of the City Clerk no later than 7:30 p.m. on April 19, 2022; provided, however, that if all of the qualified electors have voted prior to such time, the election may be closed with the concurrence of the City Clerk.

SECTION 7. All actions heretofore taken by the officers, employees and agents of the City with respect to the proposed increase in the maximum aggregate amount of bonded indebtedness that the Community Facilities District is authorized to incur, or in connection with or related to any of the documents referred to herein, are hereby approved, confirmed and ratified.

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

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

PASSED, APPROVED, AND ADOPTED this 19th day of April 2022. _____________________________________
PAUL S. LEON, MAYOR
192
ATTEST:
____________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
____________________________________

BEST BEST & KRIEGER, LLP

CITY ATTORNEY
193

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
194
RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO,

CALIFORNIA, CALLING SPECIAL ELECTION FOR CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 35 (COUNTRYSIDE PHASE 2 SOUTH - FACILITIES).

WHEREAS, on this date, the City Council (the “City Council”) of the City of Ontario (the “City”), pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), adopted a resolution entitled “A Resolution of the City Council of the City of Ontario, California, Deeming it Necessary to Amend Resolution No. 2017-124 In Order to Increase the Maximum Aggregate Amount of Bonded Indebtedness that City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South - Facilities) is Authorized to Incur” (the “Resolution Deeming it Necessary ”), deeming it necessary that the maximum aggregate amount of bonded indebtedness that City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South - Facilities) (the “Community Facilities District”) is authorized to incur be increased from $27,000,000 to $42,000,000; and WHEREAS, pursuant to the provisions of said resolution, the proposition to increase the maximum aggregate amount of bonded indebtedness the Community Facilities District is authorized to incur is to be submitted to the qualified electors of the Community Facilities District as required by the Act; and WHEREAS, the City Council desires to designate the City Clerk of the City (the “City Clerk”) as the election official for the special election provided for herein; and WHEREAS, there has been filed with the City Clerk a letter from the Registrar of Voters of the County of San Bernardino indicating that no persons were registered to vote within the territory of the Community Facilities District as of March 17, 2022, and, accordingly, that 12 or more persons have not been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of the public hearing on the proposed increase in the maximum aggregate amount of bonded indebtedness that the Community Facilities District is authorized to incur; and WHEREAS, there has been filed with the City Clerk consents and waivers of all of the landowners of record in the Community Facilities District waiving any time limit specified by Section 53326 of the Act and any requirement pertaining to the conduct of said special election, including any time limit or requirement applicable to an election pursuant to Article 5 of the Act (commencing with Section 53345 of the Act), consenting to the holding of said special election on April 19, 2022 and waiving any impartial analysis, arguments or rebuttals, as set forth in Sections 53326 and 53327 of the Act; and WHEREAS, the City Clerk has concurred in said waivers and has concurred in holding said special election on April 19, 2022.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ontario as follows:
195
SECTION 1. The foregoing recitals are true and correct.

SECTION 2. Pursuant to the Act, the proposition to increase the maximum aggregate amount of bonded indebtedness that the Community Facilities District is authorized to incur shall be submitted to the qualified electors of the Community Facilities District at an election called therefor as provided below.

SECTION 3. The City Clerk is hereby designated as the official to conduct said election.

SECTION 4. The City Council hereby finds and determines that no persons were registered to vote within the territory of the Community Facilities District as of March 17, 2022, and that 12 or more persons have not been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of the public hearing heretofore held by the City Council on the proposed increase in the maximum aggregate amount of bonded indebtedness that the Community Facilities District is authorized to incur. Accordingly, pursuant to Section 53326 of the Act, the vote shall be by the landowners of the Community Facilities District and each person who is the owner of land as of the close of said public hearing, or the authorized representative thereof, shall have one vote for each acre or portion of an acre that he or she owns within the Community Facilities District not exempt from the special tax.

SECTION 5. The City Council hereby finds and determines that the qualified electors of the Community Facilities District have unanimously consented (a) to the waiver of any time limit specified by Section 53326 of the Act and any requirement pertaining to the conduct of said election, including any time limit or requirement applicable to an election pursuant to Article 5 of the Act (commencing with Section 53345 of the Act), (b) to the holding of said election on April 19, 2022, and (c) to the waiver of any impartial analysis, arguments or rebuttals, as set forth in Sections 53326 and 53327 of the Act. The City Council herby finds and determines that the City Clerk has concurred in said waivers and has concurred in holding said election on April 19, 2022.

SECTION 6. The City Council hereby calls a special election to increase the maximum aggregate amount of bonded indebtedness that the Community Facilities District is authorized to incur from $27,000,000 to $42,000,000, which election shall be held at 303 East B Street, Ontario, California, on April 19, 2022. The City Council has caused to be provided to the City Clerk, as the official to conduct said election, the Resolution of Deeming it Necessary, a certified map of sufficient scale and clarity to show the boundaries of the Community Facilities District, and a sufficient description to allow the City Clerk to determine the boundaries of the Community Facilities District.

SECTION 7. Pursuant to Section 53326 of the Act, the election shall be conducted by mail or hand-delivered ballot pursuant to Section 4000 et. seq. of the California Elections Code. Except as otherwise provided in the Act, the provisions of law regulating elections of the City, insofar as they may be applicable, will govern the election. 196
SECTION 8. The form of the ballot for said election is attached hereto as Exhibit A and by this reference incorporated herein, and such form of ballot is hereby approved. The City Clerk shall cause to be delivered to each of the qualified electors of the Community Facilities District a ballot in said form. Each ballot shall indicate the number of votes to be voted by the respective landowner to which it pertains.

Each ballot shall be accompanied by all supplies and written instructions necessary for the use and return of the ballot. The identification envelope for return of the ballot shall be enclosed with the ballot, shall have the return postage prepaid, and shall contain: (a) the name and address of the landowner, (b) a declaration, under penalty of perjury, stating that the voter is the owner of record or the authorized representative of the landowner entitled to vote and is the person whose name appears on the identification envelope, (c) the printed name, signature and address of the voter, (d) the date of signing and place of execution of the declaration described in clause (b) above, and (e) a notice that the envelope contains an official ballot and is to be opened only by the canvassing board.

Analysis and arguments with respect to the ballot proposition are hereby waived, as provided in Section 53327 of the Act.

SECTION 9. The City Clerk shall accept the ballots of the qualified electors in the office of the City Clerk at 303 East B Street, Ontario, California, to and including 7:30 p.m. on April 19, 2022, whether said ballots be personally delivered or received by mail. The City Clerk shall have available ballots which may be marked at said location on the election day by said qualified electors.

SECTION 10. All actions heretofore taken by the officers, employees and agents of the City with respect to the special election called for herein, or in connection with or related to any of the matters referred to herein, are hereby approved, confirmed and ratified.

SECTION 11. The officers, employees and agents of the City are hereby authorized and directed to take all actions and do all things which they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof.

SECTION 12. This Resolution shall take effect immediately upon its adoption.

The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.

PASSED, APPROVED, AND ADOPTED this 19th day of April 2022. _____________________________________
PAUL S. LEON, MAYOR
197
ATTEST:
____________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
____________________________________

BEST BEST & KRIEGER, LLP

CITY ATTORNEY
198

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
199
4160-1653-8933.2

EXHIBIT A

OFFICIAL BALLOT

CITY OF ONTARIO
April 19, 2022

SPECIAL ELECTION
This ballot is for a special, landowner election. The number of votes to be voted pursuant to this ballot is ____.

INSTRUCTIONS TO VOTERS:

CITY OF ONTARIO
COMMUNITY FACILITIES DISTRICT NO. 35
(COUNTRYSIDE PHASE 2 SOUTH - FACILITIES)
MEASURE SUBMITTED TO VOTE OF VOTERS: Shall
the maximum aggregate amount of bonded indebtedness that City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South - Facilities) (the “Community Facilities District”) is authorized to incur be increase from $27,000,000 to
$42,000,000, as specified in the Resolution entitled “A Resolution of the City Council of the City of Ontario, California, Deeming it Necessary to Amend Resolution No. 2017-124 In Order to Increase the Maximum Aggregate Amount of Bonded Indebtedness that City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South - Facilities) is Authorized to Incur,” adopted by the City Council of the City of Ontario on April 19, 2022?
Yes:
No:
200
RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO,

CALIFORNIA, DECLARING RESULTS OF SPECIAL ELECTION OF
COMMUNITY FACILITIES DISTRICT NO. 35 (COUNTRYSIDE PHASE 2 SOUTH-FACILITIES).

WHEREAS, on April 19, 2022, the City Council (the “City Council”) of the City of Ontario (the “City”), pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), adopted a resolution entitled “A Resolution of the City Council of the City of Ontario, California, Calling Special Election for City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South - Facilities)” (the “Resolution Calling Election”), calling for a special election of the qualified electors within City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South - Facilities) (the “Community Facilities District”); and WHEREAS, pursuant to the terms of the Resolution Calling Election and the provisions of the Act, the special election was held on April 19, 2022; and WHEREAS, the City Clerk of the City (the “City Clerk”) has certified the canvass of the returns of the election and has filed a Canvass and Statement of Results of Election (the “Canvass”), a copy of which is attached hereto as Exhibit A; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ontario as follows:

SECTION 1. The foregoing recitals are true and correct.

SECTION 2. The City Council has received, reviewed and hereby accepts the Canvass.

SECTION 4. All actions heretofore taken by the officers, employees and agents of the City with respect to the special election, or in connection with or related to any of the matters referred to herein, are hereby approved, confirmed and ratified.

SECTION 5. The officers, employees and agents of the City are hereby authorized and directed to take all actions and do all things which they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof.

SECTION 6. This Resolution shall take effect immediately upon its adoption.

The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.
201
PASSED, APPROVED, AND ADOPTED this 19th day of April 2022. _____________________________________
PAUL S. LEON, MAYOR
ATTEST:
____________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
____________________________________

BEST BEST & KRIEGER, LLP

CITY ATTORNEY
202

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
203

EXHIBIT A

CITY OF ONTARIO
COMMUNITY FACILITIES DISTRICT NO. 35
(COUNTRYSIDE PHASE 2 SOUTH - FACILITIES)

CANVASS AND STATEMENT OF RESULTS OF ELECTION
I hereby certify that on April 19, 2022, I canvassed the returns of the special election held on April 19, 2022, for the City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South - Facilities), that the total number of ballots cast in said Community Facilities District and the total number of votes cast for and against the proposition are as follows and that the totals as shown for and against the proposition are true and correct:

Qualified
Landowner
Votes
Votes
Cast YES NO
City of Ontario Community Facilities
District No. 35 (Countryside Phase 2
South - Facilities) Special Election,
April 19, 2022
35 ___ ___ ___
MEASURE SUBMITTED TO VOTE OF VOTERS: Shall the maximum aggregate amount of bonded indebtedness that City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South - Facilities) (the “Community Facilities District”) is authorized to incur be increase from $27,000,000 to $42,000,000, as specified in the Resolution entitled “A Resolution of the City Council of the City of Ontario, California, Deeming it Necessary to Amend Resolution No. 2017-124 In Order to Increase the Maximum Aggregate Amount of Bonded Indebtedness that City of Ontario Community Facilities District No. 35 (Countryside Phase 2 South - Facilities) is Authorized to Incur,” adopted by the City Council of the City of Ontario on April 19, 2022? IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND this 19th day of April 2022.

BY:

SHEILA MAUTZ, CITY CLERK
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Department: Investments & Revenue Resources
Prepared By: Cruz Torres
Staff Member Presenting:

Armen Harkalyan, Executive Director of Finance
Reviewed By: Cecilia House, Armen Harkalyan
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 18
SUBJECT: A PUBLIC HEARING TO CONSIDER A RESOLUTION REGARDING THE FORMATION OF THE CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 63 (OLIVE AND OLEANDER); ADOPTION OF A RESOLUTION TO INCUR BONDED INDEBTEDNESS;

AND INTRODUCTION OF AN ORDINANCE LEVYING SPECIAL TAXES

CITY OF ONTARIO
Agenda Report
April 19, 2022
SECTION:

PUBLIC HEARINGS
RECOMMENDATION: That the City Council consider and:

A. Adopt a resolution of formation of Community Facilities District No. 63 (Olive and Oleander), authorizing the levy of special taxes within the community facilities district, and establishing an appropriations limit for the community facilities district; B. Adopt a resolution deeming it necessary to incur bonded indebtedness within Community Facilities District No. 63 (Olive and Oleander);
C. Adopt a resolution calling a special election for City of Ontario Community Facilities District No. 63 (Olive and Oleander);
D. Adopt a resolution declaring the results of the special election and directing the recording of a Notice of Special Tax Lien;
E. Introduce and waive further reading of an ordinance levying special taxes within City of Ontario Community Facilities District No. 63 (Olive and Oleander); and F. Adopt a resolution authorizing the execution and delivery of an acquisition and funding agreement with Shea Homes Limited Partnership, a California limited partnership.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Operate in a Businesslike Manner
Focus Resources in Ontario's Commercial and Residential Neighborhoods Invest in the City's Infrastructure (Water, Streets, Sewers, Parks, Storm Drains and Public Facilities)
Ensure the Development of a Well Planned, Balanced, and Self-Sustaining Community in Ontario Ranch
FISCAL IMPACT: The use of Mello-Roos financing for facilities in the residential development of the Olive and Oleander project is estimated to generate approximately $38 million in bond proceeds to 205
be used to fund a portion of the public infrastructure improvements needed to serve the project.

Mello-Roos bonds are not a direct obligation of the City and are paid from special taxes levied on each taxable parcel in the district; therefore, there is no General Fund impact from the issuance of Mello Roos bonds. City Council approval will be required in future years to process annual special tax levies.

BACKGROUND & ANALYSIS: The Mello-Roos Community Facilities Act of 1982 provides local government, with the consent from a majority of the property owners, the authority to establish community facilities districts for the purpose of levying special taxes to finance various kinds of public infrastructure facilities and City services. Under the Mello-Roos Act the initial steps in the formation of a community facilities district to finance public improvements and City Services are to adopt resolutions declaring the intention to establish a community facilities district, authorize the levy of special taxes, and issue bonds. Accordingly, on March 15, 2022, the City Council approved Resolution No. 2022-019, a Resolution of Intention to establish City of Ontario Community Facilities District No. 63 (Olive and Oleander) and authorize the levy of special taxes; and Resolution No. 2022-020 declaring the City Council's intention to issue bonds for the district. The Resolution of Intention set the public hearing date for the regularly scheduled City Council meeting on April 19, 2022, to consider formation matters.

In the First Amended and Restated Agreement for the Financing and Construction of Limited Infrastructure Improvements to Serve an Easterly Portion of the New Model Colony ("First Amended and Restated Construction Agreement") between the City and NMC Builders, LLC, the City agreed to cooperate with the members of NMC Builders, LLC in the formation of community facilities districts to assist in the financing of the public improvements included in the agreement. Shea Homes LP of California have provided a written petition to the City requesting formation of a community facilities district for the Olive and Oleander project in Ontario Ranch. The Olive and Oleander project addresses the development of approximately 21.09 gross acres located west of Cleveland Avenue, east of Hamner Avenue, north of Edison Avenue, and south of Ontario Ranch Road. At build out, the project is projected to include 137 attached units and 87 detached units.

Included, as part of the resolution of formation is the proposed Rate and Method of Apportionment of Special Tax for the District. Under the proposed Rate and Method of Apportionment, the portion of the maximum annual special tax rates which will be used to fund debt service payments on the bonds is fixed and will not increase over time. As proposed, the amount of bonds authorized for the district ($38 million) is set intentionally higher than the current estimated bond amount (approximately $10.3 million) in order to allow future City Councils the option, without increasing the amount of the annual special taxes, to issue additional bonds to replace and/or construct new public infrastructure improvements in the future, or to fund City services. The term and structure of the Rate and Method of Apportionment of Special Tax for the Olive and Oleander project is consistent with those of previously adopted Rates and Methods of Apportionment for Ontario Ranch community facilities districts. This ensures that the special tax rates levied on all residential property owners in community facilities districts in Ontario Ranch are developed in a consistent and equivalent manner. In addition, under the provisions of the Mello-Roos Act, to ensure that home buyers are making an informed decision, all residential builders in the Ontario Ranch districts will be required to disclose the maximum annual special tax amount to each homeowner before entering into a sales contract.
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Attached are five resolutions and an ordinance. The first attached resolution establishes the community facilities district, with the rate and method of apportionment of special taxes, and authorizes the levy of special taxes within the district. The second attached resolution deems the necessity of incurring bonded indebtedness for the district. The third attached resolution calls for a special landowner election to be held on April 19, 2022. The fourth attached resolution declares the results of the election, including a statement from the City Clerk as to the canvass of ballots, and directs the recording of the Notice of Special Tax Lien. The attached ordinance authorizes the levying of special taxes, and the final attached resolution authorizes the execution and delivery of an acquisition and funding agreement with Shea Homes LP of California. 207
RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO,

CALIFORNIA, OF FORMATION OF THE CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 63 (OLIVE AND OLEANDER FACILITIES),

AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN THE COMMUNITY

FACILITIES DISTRICT AND ESTABLISHING AN APPROPRIATIONS LIMIT FOR THE COMMUNITY FACILITIES DISTRICT.

WHEREAS, on March 15, 2022, the City Council (the “City Council”) of the City of Ontario (the “City”), pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), adopted a resolution entitled “A Resolution of the City Council of the City of Ontario, California, of Intention to Establish a Community Facilities District, Proposed to be Named City of Ontario Community Facilities District No. 63 (Olive and Oleander Facilities), and to Authorize the Levy of Special Taxes” (the “Resolution of Intention”), stating its intention to establish a community facilities district (the “Community Facilities District”) proposed to be named City of Ontario Community Facilities District No. 63 (Olive and Oleander Facilities), to authorize the levy of special taxes within the Community Facilities District to finance certain public facilities and services and setting the date for a public hearing to be held on the establishment of the Community Facilities District; and WHEREAS, pursuant to the Resolution of Intention, notice of said public hearing was published in the Inland Valley Daily Bulletin, a newspaper of general circulation published in the area of the Community Facilities District, in accordance with the Act; and WHEREAS, on this date, the City Council opened, conducted and closed said public hearing; and
WHEREAS, pursuant to the Resolution of Intention, each officer of the City who is or will be responsible for providing one or more of the proposed types of public facilities or services was directed to study, or cause to be studied, the proposed Community Facilities District and, at or before said public hearing, file a report with the City Council containing a brief description of the public facilities and services by type that will in his or her opinion be required to adequately meet the needs of the Community Facilities District, and his or her estimate of the cost of providing such public facilities and services; such officers were also directed to estimate the fair and reasonable cost of the public facilities proposed to be purchased as completed public facilities and of the incidental expenses proposed to be paid; and
WHEREAS, said report was so filed with the City Council and made a part of the record of said public hearing; and
WHEREAS, at the hearing, the testimony of all persons for or against the establishment of the Community Facilities District, the extent of the Community Facilities District and the furnishing of the specified types of public facilities and services was heard; and
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WHEREAS, written protests against the establishment of the Community Facilities District, the furnishing of any specified type or types of facilities and services within the Community Facilities District or the levying of any specified special tax were not made or filed at or before said hearing by 50% or more of the registered voters, or six registered voters, whichever is more, residing within the territory proposed to be included in the Community Facilities District, or the owners of one-half or more of the area of land in the territory proposed to be included in the Community Facilities District and not exempt from the special tax; and
WHEREAS, there has been filed with the City Clerk of the City a letter from the Registrar of Voters of the County of San Bernardino indicating that no persons were registered to vote within the territory of the proposed Community Facilities District as of March 17, 2022, and, accordingly, that 12 or more persons have not been registered to vote within the territory of the proposed Community Facilities District for each of the 90 days preceding the close of said public hearing; and
WHEREAS, Section 53314.9 of the Act provides that, at any time either before or after the formation of a community facilities district, the legislative body may accept advances of funds from any source, including, but not limited to, private persons or private entities and may provide, by resolution, for the use of those funds for any authorized purpose, including, but not limited to, paying any cost incurred by the local agency in creating a community facilities district; and
WHEREAS, Section 53314.9 of the Act further provides that the legislative body may enter into an agreement, by resolution, with the person or entity advancing the funds, to repay all or a portion of the funds advanced, as determined by the legislative body, with or without interest, under all the following conditions: (a) the proposal to repay the funds is included in both the resolution of intention to establish a community facilities district adopted pursuant to Section 53521 of the Act and in the resolution of formation to establish a community facilities district pursuant to Section 53325.1 of the Act, (b) any proposed special tax is approved by the qualified electors of the community facilities district pursuant to the Act, and (c) any agreement shall specify that if the qualified electors of the community facilities district do not approve the proposed special tax, the local agency shall return any funds which have not been committed for any authorized purpose by the time of the election to the person or entity advancing the funds; and WHEREAS, the City and Shea Homes Limited Partnership (“Shea Homes”) entered into a Deposit and Reimbursement Agreement, dated as of January 1, 2022 (the “Deposit Agreement”), that provides for the advancement of funds by Shea Homes to be used to pay costs incurred in connection with the establishment of the Community Facilities District and the issuance of special tax bonds thereby, and provides for the reimbursement to Shea Homes of such funds advanced, without interest, from the proceeds of any such bonds issued by the Community Facilities District; and WHEREAS, in accordance with Section 53314.9 of the Act, the City desires to accept such advances and to reimburse Shea Homes therefor, without interest, from the proceeds of special tax bonds issued by the Community Facilities District; 209
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ontario as follows:

SECTION 1. The foregoing recitals are true and correct.

SECTION 2. The Community Facilities District is hereby established pursuant to the Act.

SECTION 3. The Community Facilities District is hereby named “City of Ontario Community Facilities District No. 63 (Olive and Oleander Facilities).” SECTION 4. The public facilities (the “Facilities”) proposed to be financed by the Community Facilities District pursuant to the Act are described under the caption “Facilities” on Exhibit A hereto, which is by this reference incorporated herein. Those Facilities proposed to be purchased as completed public facilities are described under the caption “Facilities to be Purchased” on Exhibit A hereto. The services (the “Services”) proposed to be financed by the Community Facilities District pursuant to the Act are described under the caption “Services” on Exhibit A hereto. The incidental expenses proposed to be incurred are described under the caption “Incidental Expenses” on Exhibit A hereto. All or any portion of the Facilities may be financed through a financing plan, including, but not limited to, a lease, lease-purchase or installment-purchase arrangement.

SECTION 5. The proposed special tax to be levied within the Community Facilities District has not been precluded by majority protest pursuant to Section 53324 of the Act.

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

SECTION 7. The special tax may only finance the Services to the extent that they are in addition to those provided in the territory of the Community Facilities District before the Community Facilities District is created. The Services may not supplant services already available within that territory when the Community Facilities District is created.

SECTION 8. The tax year after which no further special tax to pay for Facilities will be levied against any parcel used for private residential purposes is specified in the Rate and Method. Under no circumstances shall the special tax to pay for Facilities in any 210
fiscal year against any parcel used for private residential purposes be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the Community Facilities District by more than 10% above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults. For purposes of this paragraph, a parcel shall be considered “used for private residential purposes” not later than the date on which an occupancy permit for private residential use is issued.

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

SECTION 10. The name, address and telephone number of the office that will be responsible for preparing annually a current roll of special tax levy obligations by assessor’s parcel number and that will be responsible for estimating further special tax levies pursuant to Section 53340.2 of the Act are as follows: Management Analyst, Financial Services, City of Ontario, 303 East B Street, Ontario, California 91764, (909) 395-2341.

SECTION 11. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property in the Community Facilities District and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the tax by the City Council ceases.

SECTION 12. The boundary map of the Community Facilities District has been recorded in San Bernardino County in Book 90 at Page 10 of Maps of Assessments and Community Facilities Districts in the San Bernardino County Recorder’s Office (Document No. 2022-0100950).

SECTION 13. The annual appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, of the Community Facilities District is hereby established at $38,000,000.

SECTION 14. Pursuant to the provisions of the Act, the levy of the special tax and a proposition to establish the appropriations limit specified above shall be subject to the approval of the qualified electors of the Community Facilities District at a special election. The City Council hereby finds and determines that no persons were registered to vote within the territory of the proposed Community Facilities District as of March 17, 2022, and that 12 or more persons have not been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close 211
of the public hearing held by the City Council on the establishment of the Community Facilities District. Accordingly, pursuant to Section 53326 of the Act, the vote shall be by the landowners of the Community Facilities District and each person who is the owner of land as of the close of said public hearings, or the authorized representative thereof, shall have one vote for each acre or portion of an acre that he or she owns within the Community Facilities District not exempt from the special tax. The voting procedure shall be by mailed or hand-delivered ballot.

SECTION 15. Shea Homes has heretofore advanced certain funds, and may advance additional funds, which have been or may be used to pay costs incurred in connection with the creation of the Community Facilities District and the issuance of special tax bonds thereby. The City Council has previously approved the acceptance of such funds for the purpose of paying costs incurred in connection with the creation of the Community Facilities District and the issuance of special tax bonds thereby. The City Council proposes to repay all or a portion of such funds expended for such purpose, solely from the proceeds of such bonds, pursuant to the Deposit Agreement. The Deposit Agreement is hereby incorporated herein as though set forth in full herein.

SECTION 16. The City Council hereby finds and determines that all proceedings up to and including the adoption of this Resolution were valid and in conformity with the requirements of the Act. In accordance with Section 53325.1 of the Act, such finding shall be final and conclusive.

SECTION 17. All actions heretofore taken by the officers, employees and agents of the City with respect to the establishment of the Community Facilities District, or in connection with or related to any of the matters referred to herein, are hereby approved, confirmed and ratified.

SECTION 18. The officers, employees and agents of the City are hereby authorized and directed to take all actions and do all things which they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof.

SECTION 19. This Resolution shall take effect immediately upon its adoption.

The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.

PASSED, APPROVED, AND ADOPTED this 19th day of April 2022. _____________________________________
PAUL S. LEON, MAYOR
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ATTEST:
____________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
____________________________________

BEST BEST & KRIEGER, LLP

CITY ATTORNEY
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STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
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A-1

EXHIBIT A

FACILITIES, SERVICES AND INCIDENTAL EXPENSES
Facilities
The types of facilities to be financed by the Community Facilities District are street and bridge improvements, including grading, paving, curbs and gutters, sidewalks, street signalization and signage, street lights and parkway and landscaping related thereto, domestic and recycled water distribution facilities, sewer collection facilities, solid waste facilities, storm drainage facilities, park and recreation facilities and equipment, aquatic facilities and equipment, fire facilities and equipment, police facilities and equipment, library facilities and equipment, fiber optic telecommunication system facilities, general governmental office, administrative and meeting facilities, and land, rights-of-way and easements necessary for any of such facilities.

Facilities to be Purchased
The types of facilities to be purchased as completed facilities are street and bridge improvements, including grading, paving, curbs and gutters, sidewalks, street signalization and signage, street lights and parkway and landscaping related thereto, domestic and recycled water distribution facilities, sewer collection facilities, solid waste facilities, storm drainage facilities, park and recreation facilities and equipment, aquatic facilities and equipment, fire facilities and equipment, police facilities and equipment, library facilities and equipment, fiber optic telecommunication system facilities, general governmental office, administrative and meeting facilities, and land, rights-of-way and easements necessary for any of such facilities.

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

Incidental Expenses
The incidental expenses proposed to be incurred include the following:
(a) the cost of planning and designing public facilities to be financed, including the cost of environmental evaluations of those facilities; (b) the costs associated with the creation of the Community Facilities District, issuance of bonds, determination of the amount of taxes, collection of taxes, payment of taxes, or costs otherwise incurred in order to carry out the authorized purposes of the Community Facilities District; and (c) any other expenses incidental to the construction, completion, and inspection of the authorized work.
215

EXHIBIT B

PROPOSED RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX 216
City of Ontario CFD No. 63 1 February 16, 2022

EXHIBIT B

CITY OF ONTARIO
COMMUNITY FACILITIES DISTRICT NO. 63
(OLIVE AND OLEANDER FACILITIES)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
Special Taxes shall be levied on all Assessor’s Parcels in the City of Ontario Community Facilities District No. 63 (Olive and Oleander Facilities) (“CFD No. 63”) and collected each Fiscal Year, commencing in Fiscal Year 2022-23, in an amount determined by the City Council of the City of Ontario through the application of the Rate and Method of Apportionment, as described below. All of the real property in CFD No. 63, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable Final Subdivision Map, parcel map, condominium plan, or other recorded County map.
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the California Government Code. “Administrative Expenses” means the following actual or reasonably estimated costs directly related to the administration of CFD No. 63: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or CFD No. 63 or both); the costs of collecting the Special Taxes (whether by the County or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City or CFD No. 63 of complying with arbitrage rebate requirements; the costs to the City or CFD No. 63 of complying with City, CFD No. 63, or obligated persons disclosure requirements associated with applicable federal and state securities laws and of the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City or CFD No. 63 related to the analysis and reduction, if any, of the Special Tax on Single Family Property in accordance with Section C.1 herein; the costs of the City or CFD No. 63 related to an appeal of the Special Tax; the costs associated with the release of funds from any escrow account; the City’s administration fees and third party expenses; the costs of City staff time and reasonable overhead relating to CFD No. 63; and amounts estimated or advanced by the City or CFD No. 63 for any other 217
City of Ontario CFD No. 63 2 February 16, 2022
administrative purposes of the CFD, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. “Assessor’s Parcel” means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means, with respect to an Assessor’s Parcel, that number assigned to such Assessor’s Parcel by the County for purposes of identification. “Assigned Special Tax” means the Special Tax for each Land Use Class of Developed Property, as determined in accordance with Section C.1.a.2 below. “Backup Special Tax” means the Special Tax for each Land Use Class of Developed Property, as determined in accordance with Section C.1.a.3 below. “Bonds” means any bonds or other debt (as defined in Section 53317(d) of the Act) issued by CFD No. 63 under the Act and payable from Special Taxes. “Buildable Lot” means an individual lot, within a Final Subdivision Map or an area expected by CFD No. 63 to become Final Mapped Property, such as the area within a Tentative Tract Map, for which a building permit may be issued without further subdivision of such lot.
“CFD Administrator” means an official of the City responsible for determining the Special Tax Requirement, providing for the levy and collection of the Special Taxes, and performing the other duties provided for herein.
“CFD No. 59” means City of Ontario Community Facilities District No. 59 (Gateway Services).
“CFD No. 63” means City of Ontario Community Facilities District No. 63 (Olive and Oleander Facilities).
“City” means the City of Ontario, California.
“City Council” means the City Council of the City, acting as the legislative body of CFD No. 63.
“Contractual Impositions” means (a) a voluntary contractual assessment established and levied on an Assessor’s Parcel pursuant to Chapter 29 of Part 3 of Division 7 of the California Streets and Highways Code (commencing with Section 5898.10 et seq.), as amended from time to time, (b) a special tax established and levied on an Assessor’s Parcel pursuant to Section 53328.1 of the California Government Code and related provisions of the Act, as amended from time to time, and (c) any other fee, charge, tax, or assessment established and levied on an individual Assessor’s Parcel pursuant to a 218
City of Ontario CFD No. 63 3 February 16, 2022
contractual agreement or other voluntary consent by the owner thereof (e.g., property owner association assessments).
“County” means the County of San Bernardino.
“Designated Buildable Lot” means a Buildable Lot for which a building permit has not been issued by the City as of the date of calculation of the Backup Special Tax. “Developed Property” means for each Fiscal Year, all Taxable Property, exclusive of Final Mapped Property, Taxable Property Owner Association Property, and Taxable Public Property, for which a building permit or other applicable permit for new construction was issued after January 1, 2021, and before May 1 of the prior Fiscal Year. “Expected Residential Lot Count” means 224 Buildable Lots of Single Family Property or, as determined by the CFD Administrator, the number of Buildable Lots of Single Family Property based on the most recent Tentative Tract Map(s) or most recently recorded Final Subdivision Map(s) or modified Final Subdivision Map(s). “Facilities” means the public facilities authorized to be financed, in whole or in part, by CFD No. 63.
“Final Mapped Property” means, for each Fiscal Year, all Taxable Property, exclusive of Developed Property, Taxable Property Owner Association Property, and Taxable Public Property, which as of January 1 of the previous Fiscal Year was located within a Final Subdivision Map. The term Final Mapped Property shall include any parcel map or Final Subdivision Map, or portion thereof, that creates individual lots for which a building permit may be issued, including Parcels that are designated as a remainder Parcel (i.e., one where the size, location, etc., precludes any further subdivision or taxable use).
“Final Subdivision Map” means a final tract map, parcel map, or lot line adjustment approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or a condominium plan recorded in accordance with California Civil Code Section 4285 that, in either case, creates individual lots for which building permits may be issued without further subdivision.
“Fiscal Year” means the period starting July 1 and ending on the following June 30. “Indenture” means the indenture, fiscal agent agreement, resolution, or other instrument pursuant to which Bonds are issued, as modified, amended, and/or supplemented from time to time.
“Land Use Class” means any of the classes listed in Table 1 below. “Lower Income Household Welfare Exemption Property” means, for each Fiscal Year, an Assessor’s Parcel within the boundaries of CFD No. 63 that is subject to a welfare exemption under subdivision (g) of Section 214 of the California Revenue and 219
City of Ontario CFD No. 63 4 February 16, 2022
Taxation Code (or any successor statute), as indicated in the most recent County assessor’s roll finalized prior to such Fiscal Year.
“Maximum Special Tax” means, with respect to an Assessor’s Parcel of Taxable Property, the Maximum Special Tax determined in accordance with Section C.1 below that can be levied in any Fiscal Year on such Assessor’s Parcel of Taxable Property. “Minimum Sale Price” means the minimum price at which Units of a given Land Use Class have sold or are expected to be sold in a normal marketing environment and shall not include prices for such Units that are sold at a discount to expected sales prices for the purpose of stimulating the initial sales activity with respect to such Land Use Class. “Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit was issued by the City permitting the construction of one or more non-residential structures or facilities.
“Other Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit was issued by the City for purposes of constructing Units, excluding Single Family Attached Property and Single Family Detached Property. “Outstanding Bonds” means all Bonds which are outstanding under and in accordance with the provisions of the Indenture.
“Price Point Consultant” means any consultant or firm of such consultants selected by CFD No. 63 that (a) has substantial experience in performing price point studies for residential units within community facilities districts established under the Act or otherwise estimating or confirming pricing for residential units in such community facilities districts, (b) has recognized expertise in analyzing economic and real estate data that relates to the pricing of residential units in such community facilities districts, (c) is in fact independent and not under the control of CFD No. 63 or the City, (d) does not have any substantial interest, direct or indirect, with or in (i) CFD No. 63, (ii) the City, (iii) any owner of real property in CFD No. 63, or (iv) any real property in CFD No. 63, and (e) is not connected with CFD No. 63 or the City as an officer or employee thereof, but who may be regularly retained to make reports to CFD No. 63 or the City. “Price Point Study” means a price point study or a letter updating a previous price point study prepared by the Price Point Consultant pursuant to Section C herein. “Property Owner Association Property” means, for each Fiscal Year, any property within the boundaries of CFD No. 63 that was owned by a property owner association, including any master or sub-association, as of January 1 of the prior Fiscal Year. “Proportionately” means (a) for Developed Property in the first step of Section D below, that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor’s Parcels of Developed Property; however, for Developed Property in the fourth step of Section D below, Proportionately means that the amount of the increase above the Assigned Special Tax, if necessary, is equal for all Assessor’s Parcels of Developed Property, except that if the Backup Special Tax limits the increase on any 220
City of Ontario CFD No. 63 5 February 16, 2022
Assessor’s Parcel(s), then the amount of the increase shall be equal for the remaining Assessor’s Parcels; (b) for Final Mapped Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor’s Parcels of Final Mapped Property; (c) for Undeveloped Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor's Parcels of Undeveloped Property; (d) for Taxable Property Owner Association Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor’s Parcels of Taxable Property Owner Association Property; and (e) for Taxable Public Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor’s Parcels of Taxable Public Property.
“Public Property” means, for each Fiscal Year, property within the boundaries of CFD No. 63 that is (a) owned by, irrevocably offered to, or dedicated to the federal government, the State, the County, the City, or any local government or other public agency or (b) encumbered by an easement for purposes of public or utility right-of-way that makes impractical its use for any purpose other than that set forth in such easement; provided that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use.
“Rate and Method of Apportionment” means this Rate and Method of Apportionment of Special Tax.
“Residential Floor Area” means all of the Square Footage of living area within the perimeter of a Unit, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Residential Floor Area shall be as set forth in the building permit(s) issued for such Assessor’s Parcel, or as set forth in other official records maintained by the City’s Building Department or other appropriate means selected by CFD No. 63. The actual Square Footage shall be rounded up to the next whole square foot. Once such determination has been made for an Assessor’s Parcel, it shall remain fixed in all future Fiscal Years unless an appeal pursuant to Section F below is approved that results in a change in the actual Square Footage. “Residential Property” means, for each Fiscal Year, an Assessor’s Parcel for which a building permit for new construction of one or more Units was issued after January 1, 2021, and before May 1 of the prior Fiscal Year.
“Services” means the services authorized to be financed, in whole or in part, by CFD No.

63. “Single Family Attached Property” means all Assessor’s Parcels of Developed Property for which a building permit or use permit was issued for construction of a residential structure consisting of two or more Units that share common walls, have separate Assessor’s Parcel Numbers assigned to them (except for a duplex unit, which may share an Assessor’s Parcel with another duplex unit), and may be purchased by individual homebuyers (which shall still be the case even if the Units are purchased and subsequently offered for rent by the owner of the Unit), including such residential 221
City of Ontario CFD No. 63 6 February 16, 2022
structures that meet the statutory definition of a condominium contained in California Civil Code Section 4125.
“Single Family Detached Property” means all Assessor’s Parcels of Developed Property for which a building permit was issued for construction of a Unit, on one legal lot, that does not share a common wall with another Unit. “Single Family Property” means all Assessor’s Parcels of Single Family Attached Property and Single Family Detached Property.
“Special Tax” means the special tax authorized by the qualified electors of CFD No. 63 to be levied within the boundaries of CFD No. 63 to pay for Facilities and Services. “Special Tax Requirement” means for any Fiscal Year that amount required, after taking into account available amounts held in the funds and accounts established under the Indenture, for CFD No. 63 to: (i) pay debt service on all Outstanding Bonds which is due in the calendar year that commences in such Fiscal Year; (ii) pay periodic costs on the Bonds, including, but not limited to, credit enhancement and rebate payments on the Bonds; (iii) pay a pro rata share of Administrative Expenses; (iv) provide any amounts required to establish or replenish any reserve fund for the Bonds; (v) pay directly for acquisition or construction of Facilities, or the cost of Services, to the extent that the inclusion of such amounts does not increase the Special Tax levy on Final Mapped Property or Undeveloped Property; and (vi) provide an amount equal to Special Tax delinquencies based on the historical delinquency rate for the Special Tax as determined by the CFD Administrator.
“Square Footage” or “Sq. Ft.” means the floor area square footage reflected on the original construction building permit, or as set forth in other official records maintained by the City’s Building Department or other appropriate means selected by CFD No. 63, issued for construction of Residential Property or Non-Residential Property, plus any square footage subsequently added to a building of Non-Residential Property after issuance of a building permit for expansion or renovation of such building. “State” means the State of California.
“Taxable Property” means, for each Fiscal Year, all of the Assessor’s Parcels within the boundaries of CFD No. 63 that are not exempt from the Special Taxes pursuant to law or Section E below.
“Taxable Property Owner Association Property” means, for each Fiscal Year, all Assessor’s Parcels of Property Owner Association Property that are not exempt from the Special Taxes pursuant to Section E below.
“Taxable Public Property” means, for each Fiscal Year, all Assessor’s Parcels of Public Property that are not exempt from the Special Taxes pursuant to law or Section E below. 222
City of Ontario CFD No. 63 7 February 16, 2022
“Tentative Tract Map” means a map: (i) showing a proposed subdivision of an Assessor’s Parcel(s) and the conditions pertaining thereto; (ii) that may or may not be based on a detailed survey; and (iii) that is not recorded by the County to create legal lots. “Total Tax Burden” means, for a Unit within a Land Use Class, for the Fiscal Year in which the Total Tax Burden is being calculated, the sum of (a) the Assigned Special Tax for such Land Use Class for such Fiscal Year, plus (b) the CFD No. 59 special tax for services for such Land Use Class for such Fiscal Year, plus (c) the ad valorem property taxes, special assessments, special taxes for any overlapping community facilities districts, and any other governmental fees, charges (other than fees or charges for services such as sewer and trash), taxes, and assessments (which do not include Contractual Impositions) collected by the County on ad valorem tax bills and that the CFD Administrator estimates would be levied or imposed on such Unit in such Fiscal Year if the residential dwelling unit thereon or therein had been completed and sold, and was subject to such fees, charges, taxes, and assessments in such Fiscal Year. “Trustee” means the trustee or fiscal agent under the Indenture. “TTM 20265” means Tentative Tract Map No. 20265, the area of which is located within CFD No. 63.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Final Mapped Property, Taxable Public Property, or Taxable Property Owner Association Property.
“Unit” means an individual single-family detached or attached home, townhome, condominium, apartment, or other residential dwelling unit, including each separate living area within a half-plex, duplex, triplex, fourplex, or other residential structure.

B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, beginning with Fiscal Year 2022-23, all Taxable Property within CFD No. 63 shall be classified as Developed Property, Final Mapped Property, Taxable Public Property, Taxable Property Owner Association Property, or Undeveloped Property and shall be subject to Special Taxes in accordance with the Rate and Method of Apportionment as determined pursuant to Sections C and D below. Assessor’s Parcels of Developed Property shall be further classified as Single Family Detached Property or Single Family Attached Property, Other Residential Property, or Non-Residential Property. Assessor’s Parcels of Single Family Detached Property shall be assigned to Land Use Classes 1 through 5 and Assessor’s Parcels of Single Family Attached Property shall be assigned to Land Use Classes 6 through 10, as listed in Table 1 below based on the Residential Floor Area of the Units on such Assessor’s Parcels. Other Residential Property shall be assigned to Land Use Class 11, and Non-Residential Property shall be assigned to Land Use Class 12.
223
City of Ontario CFD No. 63 8 February 16, 2022
C. MAXIMUM SPECIAL TAX

1. Special Tax
At least 30 days prior to the issuance of Bonds, the Assigned Special Tax on Developed Property (set forth in Table 1 below) shall be analyzed in accordance with and subject to the conditions set forth in this Section C. At such time, CFD No. 63 shall select and engage a Price Point Consultant and the CFD Administrator shall request the Price Point Consultant to prepare a Price Point Study setting forth the Minimum Sale Price of Units within each Land Use Class.

If based upon such Price Point Study the CFD Administrator calculates that the Total Tax Burden applicable to Units within one or more Land Use Classes of Single Family Property to be constructed within CFD No. 63 exceeds 1.95% of the Minimum Sale Price of such Units, the Assigned Special Tax shall be reduced to the extent necessary to cause the Total Tax Burden that shall apply to Units within such Land Use Class(es) not to exceed 1.95% of the Minimum Sale Price of such Units.

Each Assigned Special Tax reduction for a Land Use Class shall be calculated by the CFD Administrator separately, and it shall not be required that such reduction be proportionate among Land Use Classes. In connection with any reduction in the Assigned Special Tax, the Backup Special Tax shall also be reduced by the CFD Administrator based on the percentage reduction in Maximum Special Tax revenues within the Tentative Tract Map area(s) where the Assigned Special Tax reductions occurred. Upon determining the reductions, if any, in the Assigned Special Tax and Backup Special Tax required pursuant to this Section C, the CFD Administrator shall complete the Certificate of Modification of Special Tax substantially in the form attached hereto as Exhibit 1 (the “Certificate of Modification”), shall execute such completed Certificate of Modification, and shall deliver such executed Certificate of Modification to CFD No. 63. Upon receipt thereof, if in satisfactory form, CFD No. 63 shall execute such Certificate of Modification. The reduced Assigned Special Tax and Backup Special Tax specified in such Certificate of Modification shall become effective upon the execution of such Certificate of Modification by CFD No. 63.

The Special Tax reductions required pursuant to this section shall be reflected in an amended notice of Special Tax lien, which CFD No. 63 shall cause to be recorded with the County Recorder as soon as practicable after execution of the Certificate of Modification by CFD No. 63. The reductions in this section apply to Single Family Property, but not to Other Residential Property or NonResidential Property. a. Developed Property
1) Maximum Special Tax
The Maximum Special Tax that may be levied in any Fiscal Year for each Assessor’s Parcel classified as Developed Property shall 224
City of Ontario CFD No. 63 9 February 16, 2022
be the greater of (i) the amount derived by application of the Assigned Special Tax or (ii) the amount derived by application of the Backup Special Tax. The Maximum Special Tax shall not increase in future years, other than as calculated pursuant to Section C.1.a.3 below.
2) Assigned Special Tax
The Assigned Special Tax that may be levied in any Fiscal Year for each Land Use Class is shown below in Table 1.

TABLE 1
ASSIGNED SPECIAL TAX – DEVELOPED PROPERTY
3) Backup Special Tax
The Backup Special Tax shall be $4,038 per Unit for Single Family Detached Property and $3,249 for Single Family Attached Property. However, if the Expected Residential Lot Count does not equal 87 for Single Family Detached Property or 137 for Single Family Attached Property, and the City has not issued Bonds, then the Backup Special Tax for Designated Buildable Lots of Single Family Property shall be calculated separately for Single Family Detached Property and Single Family Attached Property according to the following formula:

Land
Use
Class
Description
Residential
Floor Area
(Square
Footage)
Assigned
Special Tax
1 Single Family Detached Property < 2,001 $3,583 per Unit 2 Single Family Detached Property 2,001 – 2,200 $3,831 per Unit 3 Single Family Detached Property 2,201 – 2,400 $3,986 per Unit 4 Single Family Detached Property 2,401 – 2,600 $4,296 per Unit 5 Single Family Detached Property > 2,600 $4,400 per Unit 6 Single Family Attached Property < 1,301 $2,811 per Unit 7 Single Family Attached Property 1,301 – 1,450 $3,060 per Unit 8 Single Family Attached Property 1,451 – 1,600 $3,226 per Unit 9 Single Family Attached Property 1,601 – 1,750 $3,433 per Unit 10 Single Family Attached Property > 1,750 $3,682 per Unit 11 Other Residential Property $71,302 per Acre
12 Non-Residential Property $71,302 per Acre
225
City of Ontario CFD No. 63 10 February 16, 2022
Backup Special Tax = $351,277 ÷ Expected Residential Lot Count for Single Detached Family
Property
or $445,092 ÷ Expected Residential Lot
Count for Single Attached Family
Property
If any portion of a Final Subdivision Map, or any area expected by CFD No. 63 to become Final Mapped Property, such as the area within TTM 20265, or any other Tentative Tract Map, changes any time after the City has issued Bonds, causing an adjustment to the number of Designated Buildable Lots, then the Backup Special Tax for all Designated Buildable Lots of Single Family Detached Property and Single Family Attached Property subject to the change shall be calculated according to the following steps:

Step 1: Determine the total Backup Special Tax that could have been collected from Designated Buildable
Lots, separately for Single Family Detached
Property and Single Family Attached Property,
prior to the Final Subdivision Map or expected
Final Mapped Property change.

Step 2: Divide the amount determined in Step 1 by the
number of Designated Buildable Lots, separately
for Single Family Detached Property and Single
Family Attached Property, that exists after the Final
Subdivision Map or expected Final Mapped
Property change.

Step 3: Apply the amount determined in Step 2 as the
Backup Special Tax per Unit for Single Family
Detached Property and Single Family Attached
Property.

The Backup Special Tax for an Assessor’s Parcel shall not change once an Assessor’s Parcel is classified as Developed Property.
b. Final Mapped Property, Taxable Public Property, Taxable Property Owner Association Property, and Undeveloped Property
The Maximum Special Tax for Final Mapped Property, Taxable Public Property, Taxable Property Owner Association Property, and Undeveloped Property shall be $71,302 per Acre, and shall not be subject to increase or reduction and, therefore, shall remain the same in every Fiscal Year.
226
City of Ontario CFD No. 63 11 February 16, 2022

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Each Fiscal Year, beginning with Fiscal Year 2022-23, the CFD Administrator shall determine the Special Tax Requirement for such Fiscal Year. The Special Tax shall then be levied as follows:

First: If needed to satisfy the Special Tax Requirement, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property up to 100% of the applicable Assigned Special Tax;
Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, then the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Final Mapped Property up to 100% of the Maximum Special Tax for Final Mapped Property;
Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, then the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax for Undeveloped Property;
Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the levy of the Special Tax on each Assessor’s Parcel of Developed Property whose Maximum Special Tax is determined through the application of the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor’s Parcel; Fifth: If additional monies are needed to satisfy the Special Tax Requirement after the first four steps have been completed, then the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Property Owner Association Property up to the Maximum Special Tax for Taxable Property Owner Association Property; Sixth: If additional monies are needed to satisfy the Special Tax Requirement after the first five steps have been completed, then the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Public Property up to the Maximum Special Tax for Taxable Public Property.
227
City of Ontario CFD No. 63 12 February 16, 2022
Notwithstanding the above, under no circumstances shall the Special Tax levied in any Fiscal Year on any Assessor’s Parcel of Single Family Property or Other Residential Property for which an occupancy permit for private residential use has been issued be increased as a result of delinquency or default by the owner or owners of any other Assessor’s Parcel or Assessor’s Parcels within CFD No. 63 by more than ten percent above the amount that would have been levied in that Fiscal Year had there never been any such delinquencies or defaults.

E. EXEMPTIONS
No Special Tax shall be levied on up to 3.23 Acres of Public Property and up to 5.45 Acres of Property Owner Association Property. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which property becomes Public Property or Property Owner Association Property.

No Special Tax shall be levied on Lower Income Household Welfare Exemption Property; provided, however, that if, in any Fiscal Year, applicable law does not require that Lower Income Household Welfare Exemption Property be exempt from some portion, or all, of the Special Tax, such portion, or all, of the Special Tax shall be levied on such property in accordance with this Rate and Method of Apportionment based on the Land Use Class to which the Assessor’s Parcel is assigned.

F. APPEALS
Any property owner may file a written appeal of the Special Tax with CFD No. 63 claiming that the amount or application of the Special Tax is not correct. The appeal must be filed not later than one calendar year after having paid the Special Tax that is disputed, and the appellant must be current in all payments of Special Taxes. In addition, during the term of the appeal process, all Special Taxes levied must be paid on or before the payment date established when the levy was made.

The appeal must specify the reasons why the appellant claims the Special Tax is in error.

The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination.

If the property owner disagrees with the CFD Administrator’s decision relative to the appeal, the owner may then file a written appeal with the City Council whose subsequent decision shall be final and binding on all interested parties. If the decision of the CFD Administrator or subsequent decision by the City Council requires the Special Tax to be modified or changed in favor of the property owner, then the CFD Administrator shall 228
City of Ontario CFD No. 63 13 February 16, 2022
determine if sufficient Special Tax revenue is available to make a cash refund. If a cash refund cannot be made, then an adjustment shall be made to credit future Special Tax levy(ies).

This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to filing any legal action by such owner.

G. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the Special Tax may be collected in such other manner as the City Council shall determine, including direct billing of affected property owners.

H. PREPAYMENT OF SPECIAL TAX
The following definitions apply to this Section H:
“CFD Public Facilities” means $11,150,000 for each Prepayment Period, or such lower number as determined by the City Council to be sufficient to fund the Facilities and Services to be provided by CFD No. 63.
“Expenditures Fund” means funds or accounts, regardless of their names, that are established to hold moneys that are available to acquire or construct Facilities and to fund Services.
“Future Facilities Costs” means the CFD Public Facilities minus (i) Facilities and Services costs previously paid from the Expenditures Fund during the Prepayment Period in which the prepayment is being made, (ii) moneys currently on deposit in the Expenditures Fund from deposits made during the Prepayment Period in which the prepayment is being made, and (iii) moneys currently on deposit in an escrow fund that are expected to be available to finance Facilities costs. In no event shall the amount of Future Facilities Costs be less than zero.
“Prepayment Period” means one of three periods of time during which a Special Tax prepayment may be made.
“Prepayment Period 1” means July 1, 2022, through June 30, 2056. “Prepayment Period 2” means July 1, 2056, through June 30, 2089. “Prepayment Period 3” means July 1, 2089, through June 30, 2123.

1. Prepayment in Full
The obligation of an Assessor's Parcel to pay the Special Tax may be prepaid as described herein, provided that a prepayment may be made only for Assessor’s Parcels for which a building permit for new construction was issued after January 229
City of Ontario CFD No. 63 14 February 16, 2022
1, 2021, and only if there are no delinquent Special Taxes with respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Special Tax obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount for such Assessor's Parcel. The CFD Administrator may charge a fee for providing this service. Prepayment in any six month period must be made not less than 45 days prior to the next occurring date that notice of redemption of Bonds from the proceeds of such prepayment may be given to the Trustee pursuant to the Indenture.

The Special Tax Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below):

Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Total Prepayment Amount
As of the proposed date of prepayment, the Special Tax Prepayment Amount (defined below) shall be calculated by the CFD Administrator as follows:

Paragraph No.

1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel, and determine the Prepayment Period for the proposed prepayment.

3. (a) Divide the Assigned Special Tax computed pursuant to Paragraph 2 by the total estimated Assigned Special Tax for CFD No. 63 based on the Developed Property Special Tax which could be charged in the current Fiscal Year on all expected development through buildout of CFD No. 63, excluding any Assessor’s Parcels which have been prepaid, and
(b) Divide the Backup Special Tax computed pursuant to Paragraph 2 by the estimated total Backup Special Tax at buildout of CFD No. 63, excluding any Assessor’s Parcels which have been prepaid.
230
City of Ontario CFD No. 63 15 February 16, 2022

6. Compute the Future Facilities Costs for the applicable Prepayment Period.

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

10. Add the amounts computed pursuant to Paragraphs 8 and 9 to determine the “Defeasance Amount”.

11. Verify the administrative fees and expenses of CFD No. 63, including the costs to compute the prepayment, the costs to invest the prepayment proceeds, the costs to redeem Bonds, and the costs to record any notices to evidence the prepayment and the redemption (the “Administrative Fees and Expenses”).

13. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to Paragraphs 4, 5, 7, 10, and 11, less the amount computed pursuant to Paragraph 12 (the “Prepayment Amount”).

14. From the Prepayment Amount, the amounts computed pursuant to Paragraphs 4, 5, 10, and 12 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Bonds or make debt service payments. The amount computed pursuant to Paragraph 7 shall be deposited into the Expenditures Fund. The amount computed pursuant to Paragraph 11 shall be retained by CFD No. 63.
231
City of Ontario CFD No. 63 16 February 16, 2022
The Special Tax Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such cases, the increment above $5,000, or integral multiple thereof, will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of Bonds or to make debt service payments.

The CFD Administrator shall cause a suitable notice to be recorded in compliance with the Act to indicate that the Special Tax has been satisfied for the remainder of the applicable Prepayment Period but has not been permanently satisfied and the obligation to pay the Special Tax will resume in the first Fiscal Year of the Prepayment Period following the Prepayment Period in which the prepayment was made. Once the obligation of an Assessor’s Parcel to pay the Special Tax resumes, the Special Tax for the then applicable Prepayment Period may be prepaid.

Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of the Maximum Special Tax that may be levied on Taxable Property within CFD No. 63 (after excluding 3.23 Acres of Public Property and 5.45 acres of Property Owner Association Property) both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds.

2. Prepayment in Part
The Special Tax on an Assessor’s Parcel for which a building permit for new construction was issued after January 1, 2021, may be partially prepaid. The amount of the prepayment shall be calculated as in Section H.1, except that a partial prepayment shall be calculated by the CFD Administrator according to the following formula:

PP = (PF – AE) x % + AE.

The terms above have the following meaning:

PP = the partial prepayment
PF = the Prepayment Amount (full prepayment) for the Special Tax calculated according to Section H.1
AE = the Administrative Fees and Expenses determined pursuant to paragraph 11 above % = the percentage by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax
232
City of Ontario CFD No. 63 17 February 16, 2022
The Special Tax partial prepayment amount must be sufficient to redeem at least a $5,000 increment of Bonds.

The owner of any Assessor’s Parcel who desires such prepayment shall notify the CFD Administrator of such owner’s intent to partially prepay the Special Tax and the percentage by which the Special Tax shall be prepaid. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax for an Assessor’s Parcel within thirty (30) days of the request and may charge a fee for providing this service. With respect to any Assessor’s Parcel that is partially prepaid, the CFD Administrator shall (i) distribute the remitted prepayment funds according to Section H.1, and (ii) indicate in the records of CFD No. 63 that there has been a partial prepayment of the Special Tax and that a portion of the Special Tax with respect to such Assessor’s Parcel, equal to the outstanding percentage (100% - “%”, as defined above) of the Maximum Special Tax, shall continue to be levied on such Assessor’s Parcel pursuant to Section D during the Prepayment Period in which the partial prepayment is made.

For partial prepayments made during Prepayment Period 1 or Prepayment Period 2, the full amount of the Special Tax shall resume in the first Fiscal Year of the Prepayment Period following the Prepayment Period in which the partial prepayment was made.

Once the obligation of an Assessor’s Parcel to pay the Special Tax resumes, the Special Tax for the then applicable Prepayment Period may be prepaid.

I. TERM OF SPECIAL TAX
The Fiscal Year after which no further Special Tax shall be levied or collected is Fiscal Year 2122-2123, except that the Special Tax that was lawfully levied in or before such Fiscal Year and that remains delinquent may be collected in subsequent years. 233
EXHIBIT 1

CERTIFICATE OF MODIFICATION OF SPECIAL TAX
(PAGE 1 OF 2)
CITY OF ONTARIO AND CFD NO. 63 CERTIFICATE

1. Pursuant to Section C.1 of the Rate and Method of Apportionment of Special Tax (the “Rate and Method”) for City of Ontario Community Facilities District No. 63 (Olive and Oleander Facilities) (“CFD No. 63”), the Assigned Special Tax and the Backup Special Tax for Developed Property within CFD No. 63 has been modified. a. The information in Table 1 relating to the Assigned Special Tax for Developed Property within CFD No. 63, as stated in Section C.1.a.2 of the Rate and Method of Apportionment, has been modified as follows:

TABLE 1
ASSIGNED SPECIAL TAX – DEVELOPED PROPERTY
b. The Backup Special Tax for Developed Property, as stated in Section C.1.a.3, shall be modified as follows:

Land
Use
Class
Description
Residential
Floor Area
(Square
Footage)
Assigned
Special Tax
1 Single Family Detached Property < 2,001 $[ ] per Unit 2 Single Family Detached Property 2,001 – 2,200 $[ ] per Unit 3 Single Family Detached Property 2,201 – 2,400 $[ ] per Unit 4 Single Family Detached Property 2,401 – 2,600 $[ ] per Unit 5 Single Family Detached Property > 2,600 $[ ] per Unit 6 Single Family Attached Property < 1,301 $[ ] per Unit 7 Single Family Attached Property 1,301 – 1,450 $[ ] per Unit 8 Single Family Attached Property 1,451 – 1,600 $[ ] per Unit 9 Single Family Attached Property 1,601 – 1,750 $[ ] per Unit 10 Single Family Attached Property > 1,750 $[ ] per Unit 11 Other Residential Property $[ ] per Acre
12 Non-Residential Property $[ ] per Acre
234
EXHIBIT 1

CERTIFICATE OF MODIFICATION OF SPECIAL TAX
(PAGE 2 OF 2)
The Backup Special Tax shall be $[____] per Unit for Single Family Detached Property and $[____] per Unit for Single Family Attached Property. However, if the Expected Residential Lot Count does not equal 87 for Single Family Detached Property or 137 for Single Family Attached Property, and the City has not issued Bonds, then the Backup Special Tax for Designated Buildable Lots of Single Family Property shall be calculated separately for Single Family Detached Property and Single Family Attached Property according to the following formula:

Backup Special Tax = $[______] ÷ Expected Residential
Lot Count for Single Family
Detached Property
or $[______] ÷ Expected Residential Lot
Count for Single Family Attached
Property

2. The Special Tax for Developed Property may only be modified prior to the first issuance of CFD No. 63 Bonds.

3. Upon execution of this certificate by CFD No. 63, CFD No. 63 shall cause an amended notice of Special Tax lien for CFD No. 63 to be recorded reflecting the modifications set forth herein.

GOODWIN CONSULTING GROUP, INC.

CFD ADMINISTRATOR
By:_________________________________ Date:______________________

The undersigned acknowledges receipt of this Certificate and of the modification of the Assigned Special Tax and Backup Special Tax for Developed Property as set forth in this Certificate.

CITY OF ONTARIO
COMMUNITY FACILITIES DISTRICT NO. 63
(OLIVE AND OLEANDER FACILITIES)
By:_________________________________ Date:______________________ 235
RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO,

CALIFORNIA, DEEMING IT NECESSARY TO INCUR BONDED

INDEBTEDNESS WITHIN THE CITY OF ONTARIO COMMUNITY
FACILITIES DISTRICT NO. 63 (OLIVE AND OLEANDER FACILITIES).

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

SECTION 1. The foregoing recitals are true and correct.

SECTION 2. The City Council deems it necessary to incur the bonded indebtedness.

SECTION 3. The bonded indebtedness will be incurred for the purpose of financing the costs of the Facilities (as defined in the Resolution of Formation), including all costs and estimated costs incidental to, or connected with, the accomplishment of such purpose.

SECTION 4. In accordance with the previous determination of the City Council, the whole of the Community Facilities District will pay for the bonded indebtedness.

SECTION 5. The maximum aggregate amount of debt to be incurred is $38,000,000.

SECTION 6. The maximum term the bonds to be issued shall run before maturity is 40 years.
237
SECTION 7. The maximum annual rate of interest to be paid shall not exceed the maximum interest rate permitted by applicable law at the time of sale of the bonds, payable semiannually or at such times as the City Council or its designee shall determine, the actual rate or rates and times of payment of such interest to be determined by the City Council or its designee at the time or times of sale of the bonds.

SECTION 8. The proposition to incur the bonded indebtedness will be submitted to the voters.

SECTION 9. The City Council hereby finds and determines that no persons were registered to vote within the territory of the proposed Community Facilities District as of March 17, 2022, and that 12 or more persons have not been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of the public hearings held by the City Council on the proposed debt issue for the Community Facilities District. Accordingly, pursuant to Section 53326 of the Act, the vote shall be by the landowners of the Community Facilities District and each person who is the owner of land as of the close of said public hearings, or the authorized representative thereof, shall have one vote for each acre or portion of an acre that he or she owns within the Community Facilities District not exempt from the special tax.

SECTION 10. The City Council hereby finds and determines that the qualified electors of the Community Facilities District have unanimously consented (a) to the waiver of any time limit specified by Section 53326 of the Act and any requirement pertaining to the conduct of said election, including any time limit or requirement applicable to an election pursuant to Article 5 of the Act (commencing with Section 53345 of the Act), and (b) to the holding of said election on April 19, 2022. The City Council hereby finds and determines that the City Clerk has concurred in said waivers and has concurred in holding said election on April 19, 2022.

SECTION 11. The date of the special community facilities district election (which shall be consolidated with the special district election to levy a special tax within the Community Facilities District) at which time the proposition shall be submitted to the voters is April 19, 2022.

SECTION 12. The election is to be conducted by mail ballot. The mailed ballots are required to be received in the office of the City Clerk no later than 7:30 p.m. on April 19, 2022; provided, however, that if all of the qualified electors have voted prior to such time, the election may be closed with the concurrence of the City Clerk.

SECTION 13. All actions heretofore taken by the officers, employees and agents of the City with respect to the incurrence of bonded indebtedness, or in connection with or related to any of the matters referred to herein, are hereby approved, confirmed and ratified.

SECTION 14. The officers, employees and agents of the City are hereby authorized and directed to take all actions and do all things which they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof.
238
SECTION 15. This Resolution shall take effect immediately upon its adoption.

The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.

PASSED, APPROVED, AND ADOPTED this 19th day of April 2022. _____________________________________
PAUL S. LEON, MAYOR
ATTEST:
____________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
____________________________________

BEST BEST & KRIEGER, LLP

CITY ATTORNEY
239

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
240
RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO,

CALIFORNIA, CALLING SPECIAL ELECTION FOR CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 63 (OLIVE AND OLEANDER FACILITIES).

WHEREAS, on this date, the City Council (the “City Council”) of the City of Ontario (the “City”), pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), adopted a resolution entitled “A Resolution of the City Council of the City of Ontario, California, of Formation of the City of Ontario Community Facilities District No. 63 (Olive and Oleander Facilities), Authorizing the Levy of a Special Tax within the Community Facilities District and Establishing an Appropriations Limit for the Community Facilities District” (the “Resolution of Formation”), establishing City of Ontario Community Facilities District No. 63 (Olive and Oleander Facilities) (the “Community Facilities District”), authorizing the levy of a special tax within the Community Facilities District and establishing an appropriations limit for the Community Facilities District; and WHEREAS, on this date, the City Council also adopted a resolution entitled “A Resolution of the City Council of the City of Ontario, California, Deeming it Necessary to Incur Bonded Indebtedness within the City of Ontario Community Facilities District No. 63 (Olive and Oleander Facilities)” (the “Resolution Deeming it Necessary to Incur”), deeming it necessary to incur bonded indebtedness in the maximum amount of $38,000,000; and
WHEREAS, pursuant to the provisions of said resolutions, the propositions to incur bonded indebtedness, to levy a special tax within the Community Facilities District and to establish an appropriations limit for the Community Facilities District are to be submitted to the qualified electors of the Community Facilities District as required by the Act; and WHEREAS, the City Council desires to designate the City Clerk of the City (the “City Clerk”) as the election official for the special election provided for herein; and WHEREAS, there has been filed with the City Clerk a letter from the Registrar of Voters of the County of San Bernardino indicating that no persons were registered to vote within the territory of the proposed Community Facilities District as of March 17, 2022, and, accordingly, that 12 or more persons have not been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of the public hearings on the establishment of the Community Facilities District and the proposed debt issue for the Community Facilities District; and WHEREAS, there has been filed with the City Clerk consents and waivers of all of the landowners of record in the Community Facilities District waiving any time limit specified by Section 53326 of the Act and any requirement pertaining to the conduct of said special election, including any time limit or requirement applicable to an election pursuant to Article 5 of the Act (commencing with Section 53345 of the Act), consenting to the holding of said special election on April 19, 2022 and waiving any impartial analysis, arguments or rebuttals, as set forth in Sections 53326 and 53327 of the Act; and 241
WHEREAS, the City Clerk has concurred in said waivers and has concurred in holding said special election on April 19, 2022.

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

SECTION 1. The foregoing recitals are true and correct.

SECTION 2. Pursuant to Sections 53351, 53326 and 53325.7 of the Act, the propositions to incur bonded indebtedness, to levy a special tax within the Community Facilities District and to establish an appropriations limit for the Community Facilities District shall be submitted to the qualified electors of the Community Facilities District at an election called therefor as provided below.

SECTION 3. The City Clerk is hereby designated as the official to conduct said election.

SECTION 4. As authorized by Section 53353.5 of the Act, the propositions to incur bonded indebtedness, to levy a special tax within the Community Facilities District and to establish an appropriations limit for the Community Facilities District shall be combined into one ballot proposition.

SECTION 5. The City Council hereby finds and determines that no persons were registered to vote within the territory of the proposed Community Facilities District as of March 17, 2022, and that 12 or more persons have not been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of the public hearings heretofore held by the City Council on the establishment of the Community Facilities District and the proposed debt issue for the Community Facilities District. Accordingly, pursuant to Section 53326 of the Act, the vote shall be by the landowners of the Community Facilities District and each person who is the owner of land as of the close of said public hearings, or the authorized representative thereof, shall have one vote for each acre or portion of an acre that he or she owns within the Community Facilities District not exempt from the special tax.

SECTION 6. The City Council hereby finds and determines that the qualified electors of the Community Facilities District have unanimously consented (a) to the waiver of any time limit specified by Section 53326 of the Act and any requirement pertaining to the conduct of said election, including any time limit or requirement applicable to an election pursuant to Article 5 of the Act (commencing with Section 53345 of the Act), (b) to the holding of said election on April 19, 2022, and (c) to the waiver of any impartial analysis, arguments or rebuttals, as set forth in Sections 53326 and 53327 of the Act. The City Council herby finds and determines that the City Clerk has concurred in said waivers and has concurred in holding said election on April 19, 2022.

SECTION 7. The City Council hereby calls a special election to submit to the qualified electors of the Community Facilities District the combined proposition to incur bonded indebtedness, to levy a special tax within the Community Facilities District and to 242
establish an appropriations limit for the Community Facilities District, which election shall be held at 303 East B Street, Ontario, California, on April 19, 2022. The City Council has caused to be provided to the City Clerk, as the official to conduct said election, the Resolution of Formation, the Resolution of Deeming it Necessary to Incur, a certified map of sufficient scale and clarity to show the boundaries of the Community Facilities District, and a sufficient description to allow the City Clerk to determine the boundaries of the Community Facilities District.

SECTION 8. Pursuant to Section 53326 of the Act, the election shall be conducted by mail or hand-delivered ballot pursuant to Section 4000 et. seq. of the California Elections Code. Except as otherwise provided in the Act, the provisions of law regulating elections of the City, insofar as they may be applicable, will govern the election.

SECTION 9. The form of the ballot for said election is attached hereto as Exhibit A and by this reference incorporated herein, and such form of ballot is hereby approved. The City Clerk shall cause to be delivered to each of the qualified electors of the Community Facilities District a ballot in said form. Each ballot shall indicate the number of votes to be voted by the respective landowner to which it pertains.

Each ballot shall be accompanied by all supplies and written instructions necessary for the use and return of the ballot. The identification envelope for return of the ballot shall be enclosed with the ballot, shall have the return postage prepaid, and shall contain: (a) the name and address of the landowner, (b) a declaration, under penalty of perjury, stating that the voter is the owner of record or the authorized representative of the landowner entitled to vote and is the person whose name appears on the identification envelope, (c) the printed name, signature and address of the voter, (d) the date of signing and place of execution of the declaration described in clause (b) above, and (e) a notice that the envelope contains an official ballot and is to be opened only by the canvassing board.

Analysis and arguments with respect to the ballot proposition are hereby waived, as provided in Section 53327 of the Act.

SECTION 10. The City Clerk shall accept the ballots of the qualified electors in the office of the City Clerk at 303 East B Street, Ontario, California, to and including 7:30 p.m. on April 19, 2022, whether said ballots be personally delivered or received by mail.

The City Clerk shall have available ballots which may be marked at said location on the election day by said qualified electors.

SECTION 11. The City Council hereby determines that the facilities and services financed by the Community Facilities District are necessary to meet increased demands placed upon local agencies as a result of development occurring in the Community Facilities District.
243
SECTION 12. The specific purposes of the bonded indebtedness proposed to be incurred is the financing of the Facilities (as defined in the Resolution of Formation), including all costs and estimated costs incidental to, or connected with, the accomplishment of such purpose, and the proceeds of such bonded indebtedness shall be applied only to such specific purposes.

Upon approval of the proposition to incur bonded indebtedness, and the sale of any bonds evidencing such indebtedness, the City Council shall take such action as may be necessary to cause to be established an account for deposit of the proceeds of sale of the bonds. For so long as any proceeds of the bonds remain unexpended, the Management Analyst, Financial Services of the City shall cause to be filed with the City Council, no later than January 1 of each year, a report stating (a) the amount of bond proceeds received and expended during the preceding year, and (b) the status of any project funded or to be funded from bond proceeds. Said report may relate to the calendar year, fiscal year, or other appropriate annual period, as the Management Analyst, Financial Services of the City shall determine, and may be incorporated into the annual budget, audit, or other appropriate routine report to the City Council.

SECTION 13. All actions heretofore taken by the officers, employees and agents of the City with respect to the special election called for herein, or in connection with or related to any of the matters referred to herein, are hereby approved, confirmed and ratified.

SECTION 15. This Resolution shall take effect immediately upon its adoption.

The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.

PASSED, APPROVED, AND ADOPTED this 19th day of April 2022. _____________________________________
PAUL S. LEON, MAYOR
ATTEST:
____________________________________

SHEILA MAUTZ, CITY CLERK
244
APPROVED AS TO FORM:
____________________________________

BEST BEST & KRIEGER, LLP

CITY ATTORNEY
245

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
246

EXHIBIT A

OFFICIAL BALLOT

CITY OF ONTARIO
April 19, 2022

SPECIAL ELECTION
This ballot is for a special, landowner election. The number of votes to be voted pursuant to this ballot is ____.

INSTRUCTIONS TO VOTERS:

CITY OF ONTARIO
COMMUNITY FACILITIES DISTRICT NO. 63
(OLIVE AND OLEANDER FACILITIES)
MEASURE SUBMITTED TO VOTE OF VOTERS: Shall
the City of Ontario Community Facilities District No. 63 (Olive and Oleander Facilities) (the “Community Facilities District”) be authorized to incur bonded indebtedness in a maximum
aggregate amount of not to exceed $38,000,000 and levy a special tax in order to finance certain facilities and services and shall the annual appropriations limit of the Community Facilities District be established in the amount of $38,000,000, all as specified in the Resolution entitled “A Resolution of the City Council of the City of Ontario, California, of Formation of the City of Ontario Community Facilities District No. 63 (Olive and Oleander Facilities), Authorizing the Levy of a Special Tax within the Community Facilities District and Establishing an
Appropriations Limit for the Community Facilities District” and the Resolution entitled “A Resolution of the City Council of the City of Ontario, California, Deeming it Necessary to Incur Bonded Indebtedness within the City of Ontario Community Facilities District No. 63 (Olive and Oleander Facilities),” each adopted by the City Council of the City of Ontario on April 19, 2022? Yes:
No:
247
RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO,

CALIFORNIA, DECLARING RESULTS OF SPECIAL ELECTION AND
DIRECTING RECORDING OF NOTICE OF SPECIAL TAX LIEN.

WHEREAS, on April 19, 2022, the City Council (the “City Council”) of the City of Ontario (the “City”), pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), adopted a resolution entitled “A Resolution of the City Council of the City of Ontario, California, Calling Special Election for City of Ontario Community Facilities District No. 63 (Olive and Oleander Facilities)” (the “Resolution Calling Election”), calling for a special election of the qualified electors within City of Ontario Community Facilities District No. 63 (Olive and Oleander Facilities) (the “Community Facilities District”); and WHEREAS, pursuant to the terms of the Resolution Calling Election and the provisions of the Act, the special election was held on April 19, 2022; and WHEREAS, the City Clerk of the City (the “City Clerk”) has certified the canvass of the returns of the election and has filed a Canvass and Statement of Results of Election (the “Canvass”), a copy of which is attached hereto as Exhibit A.

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

SECTION 1. The foregoing recitals are true and correct.

SECTION 2. The City Council has received, reviewed and hereby accepts the Canvass.

SECTION 4. The City Clerk is hereby directed to execute and cause to be recorded in the office of the County Recorder of the County of San Bernardino a notice of special tax lien in the form required by the Act, said recording to occur no later than fifteen days following adoption by the City Council of this Resolution.

SECTION 5. All actions heretofore taken by the officers, employees and agents of the City with respect to the special election, or in connection with or related to any of the matters referred to herein, are hereby approved, confirmed and ratified.

SECTION 6. The officers, employees and agents of the City are hereby authorized and directed to take all actions and do all things which they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof.
248
SECTION 7. This Resolution shall take effect immediately upon its adoption.

The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.

PASSED, APPROVED, AND ADOPTED this 19th day of April 2022. _____________________________________
PAUL S. LEON, MAYOR
ATTEST:
____________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
____________________________________

BEST BEST & KRIEGER, LLP

CITY ATTORNEY
249

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
250

EXHIBIT A

CITY OF ONTARIO
COMMUNITY FACILITIES DISTRICT NO. 63
(OLIVE AND OLEANDER FACILITIES)

CANVASS AND STATEMENT OF RESULTS OF ELECTION
I hereby certify that on April 19, 2022, I canvassed the returns of the special election held on April 19, 2022, for the City of Ontario Community Facilities District No. 63 (Olive and Oleander Facilities), that the total number of ballots cast in said Community Facilities District and the total number of votes cast for and against the proposition are as follows and that the totals as shown for and against the proposition are true and correct:

Qualified
Landowner
Votes
Votes
Cast YES NO
City of Ontario Community Facilities
District No. 63 (Olive and Oleander
Facilities) Special Election, April 19,
2022
22 ___ ___ ___
MEASURE SUBMITTED TO VOTE OF VOTERS: Shall the City of Ontario Community Facilities District No. 63 (Olive and Oleander Facilities) (the “Community Facilities District”) be authorized to incur bonded indebtedness in a maximum aggregate amount of not to exceed $38,000,000 and levy a special tax in order to finance certain facilities and services and shall the annual appropriations limit of the Community Facilities District be established in the amount of $38,000,000, all as specified in the Resolution entitled “A Resolution of the City Council of the City of Ontario, California, of Formation of the City of Ontario Community Facilities District No. 63 (Olive and Oleander Facilities), Authorizing the Levy of a Special Tax within the Community Facilities District and Establishing an Appropriations Limit for the Community Facilities District” and the Resolution entitled “A Resolution of the City Council of the City of Ontario, California, Deeming it Necessary to Incur Bonded Indebtedness within the City of Ontario Community Facilities District No. 63 (Olive and Oleander Facilities),” each adopted by the City Council of the City of Ontario on April 19, 2022?
IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND this 19th day of April 2022.

BY:

SHEILA MAUTZ, CITY CLERK
251
ORDINANCE NO. ________

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO,

CALIFORNIA, LEVYING SPECIAL TAXES WITHIN THE CITY OF
ONTARIO COMMUNITY FACILITIES DISTRICT NO. 63 (OLIVE AND OLEANDER FACILITIES).

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

SECTION 1. The City Council hereby authorizes and levies special taxes within the Community Facilities District pursuant to Sections 53328 and 53340 of the Act, at the rate and in accordance with the method of apportionment set forth in Exhibit B to the Resolution of Formation (the “Rate and Method of Apportionment”). The special taxes 252
are hereby levied commencing in fiscal year 2022-23 and in each fiscal year thereafter until the last fiscal year in which such special taxes are authorized to be levied pursuant to the Rate and Method of Apportionment.

SECTION 2. The City Council may, in accordance with subdivision (b) of Section 53340 of the Act, provide, by resolution, for the levy of the special tax in future tax years at the same rate or at a lower rate than the rate provided by this Ordinance. In no event shall the special tax be levied on any parcel within the Community Facilities District in excess of the maximum tax specified therefor in the Rate and Method of Apportionment.

SECTION 3. The special tax shall be levied on all of the parcels in the Community Facilities District, unless exempted by law or by the Rate and Method of Apportionment.

SECTION 4. The proceeds of the special tax shall only be used to pay, in whole or in part, the cost of providing the Facilities and Services and incidental expenses pursuant to the Act.

SECTION 5. The special tax shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in the case of delinquency as is provided for ad valorem taxes, unless another procedure is adopted by the City Council.

SECTION 6. If for any reason any portion of this Ordinance is found to be invalid, or if the special tax is found inapplicable to any particular parcel within the Community Facilities District, by a court of competent jurisdiction, the balance of this Ordinance and the application of the special tax to the remaining parcels within the Community Facilities District shall not be affected.

SECTION 7. The Mayor shall sign this Ordinance and the City Clerk shall certify as to the adoption and shall cause a summary thereof to be published at least once, in a newspaper of general circulation in the City of Ontario, California within fifteen (15) days of the adoption. The City Clerk shall post a certified copy of this ordinance, including the vote for and against the same, in the Office of the City Clerk, in accordance with Government Code Section 36933.

PASSED, APPROVED, AND ADOPTED this ________ day of _________ 2022. _____________________________________
PAUL S. LEON, MAYOR
253
ATTEST:
_________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
_______________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY
254

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
_________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
255
Department: Planning
Prepared By: Edmelynne V Hutter
Staff Member Presenting:

Scott Murphy, Executive Director Community
Development
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 19
SUBJECT: A PUBLIC HEARING TO CONSIDER A RESOLUTION APPROVING FILE NO. PSPA21- 001, AN AMENDMENT TO THE PIEMONTE OVERLAY OF THE ONTARIO CENTER SPECIFIC PLAN, INCLUDING: (1) REVISING THE OVERLAY BOUNDARY, ADDING APPROXIMATELY 24.9 ACRES OF LAND LOCATED AT 4000 ONTARIO CENTER PARKWAY, TO THE OVERLAY AREA; (2) CHANGING THE LAND USE DESIGNATION ON APPROXIMATELY 4.9 ACRES OF LAND FROM OFFICE AND

ENTERTAINMENT/RETAIL TO MIXED USE, WITHIN THE AREA BOUNDED BY

FOURTH STREET TO THE NORTH, CONCOURS STREET AND ONTARIO CENTER

PARKWAY TO THE SOUTH, VIA ALBA TO THE EAST, AND THE CAMDEN LANDMARK APARTMENTS AND VACANT LAND TO THE WEST; AND, (3)

ESTABLISHING DEVELOPMENT STANDARDS AND DESIGN GUIDELINES FOR THE

MIXED USE LAND USE AREA OF THE PIEMONTE OVERLAY AT ONTARIO CENTER

SPECIFIC PLAN

CITY OF ONTARIO
Agenda Report
April 19, 2022
SECTION:

PUBLIC HEARINGS
RECOMMENDATION: That the City Council consider and adopt Resolutions approving the following:

A. The use of an Addendum to the Ontario Center Environmental Impact Report (State Clearing House No. 89041009); and
B. File No. PSPA21-001, an amendment to the Piemonte Overlay of The Ontario Center Specific Plan: (1) adding approximately 24.9 acres of land to the overlay area; (2) changing the land use designation on approximately 4.9 acres of land from office and entertainment/retail to mixed use; and, (3) establishing development standards and design guidelines for the Mixed Use land use area.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Invest in the Growth and Evolution of the City's Economy Operate in a Businesslike Manner
Focus Resources in Ontario's Commercial and Residential Neighborhoods FISCAL IMPACT: The proposed Specific Plan Amendment will facilitate the future construction of 256
mixed-use developments consisting of up to a total of 691 residential units and 71,200 square feet of retail space. This subsequent development would result in the one-time collection of Building plan check and permitting fees, development impact fees, as well as on-going property and sales tax.

BACKGROUND & ANALYSIS: In 2006, the City Council approved the creation of the Piemonte Overlay of The Ontario Center Specific Plan ("Piemonte Overlay") within the Urban Commercial land use district of The Ontario Center Specific Plan, establishing a master plan for the development of approximately 1.3 million square feet of retail, office, hotel, and entertainment uses, and more than 800 multiple-family dwelling units on the 84-acre Project site. The Piemonte Overlay was delineated into fifteen subareas and assigned the land use designations of Commercial, Entertainment/Retail, Office, Special Use, or Residential (see Exhibit C, Existing Boundary and Land Use Map, attached).

The current Overlay area covers approximately 92 acres of land, with at least 48 acres being vacant land.

Since its original approval, the Piemonte Overlay document was amended in 2017 (File No. PSPA16- 003), reducing the maximum allowed number of residential units and hotel rooms, designate plaza areas to accommodate outdoor events, and expand the design concept from the original Tuscaninfluenced architecture, allowing more contemporary architectural design concepts. The Piemonte Overlay document was once again amended in 2020 (File No. PSPA19-009), allowing required residential parking spaces to be provided as tandem parking spaces.

The City of Ontario Economic Development Department and a land developer are coordinating to bring a mixed-use development adjacent to the Toyota Arena. The proposed Amendment to the Piemonte Overlay would help facilitate the development of underutilized parking areas around the Toyota Arena, along with vacant parcels throughout the Piemonte Overlay area, allowing for the development of up to 691 residential units and 71,200 square feet of retail space in a vertical mixed-use configuration (first floor retail with residential units on upper floors).

Specific Plan Amendment - The proposed amendment to the Piemonte Overlay of the Ontario Center Specific Plan ("Overlay Amendment") is focused on incorporating more opportunities for vibrant, mixed-use developments that allow for entertainment, dining and housing. The Overlay Amendment would expand the Project boundary, revise the Entertainment/Retail land use designation to Mixed-Use, establish new development standards and guidelines for mixed-use developments, and implement associated minor text amendments. The proposed boundary and land use plan are provided in Exhibit D, Proposed Boundary and Land Use Map, attached.

A. Overlay Boundary Expansion - The Piemonte Overlay boundary would be expanded to include the property located at 4000 Ontario Center Parkway, which is developed with the Toyota Arena sports and entertainment venue and surrounding parking lots. This additional land area is comprised of 24.9 acres of land, which would be delineated into four new subareas and designated with the Mixed-Use land use. The new proposed Subareas ("SA") include SA16, SA17, SA18, and SA19 (see Exhibit D, Existing and Proposed Subareas, attached). SA18 is developed with the Toyota Arena building and the other three areas are developed with parking lots. The Overlay Amendment anticipates that SA16 and SA17 will be developed with service commercial uses on the ground floor and multiple-family residential 257
complexes on the upper floors.

B. Land Use Plan / Mixed-use Land Use - In addition to expanding the Piemonte Overlay boundary, the areas currently designated as Entertainment/Retail would be recategorized as Mixed-Use, which would allow for residential uses in addition to commercial uses. It is anticipated that SA8 and SA11 (see Exhibit E, Existing and Proposed Subareas, attached) will be developed with ground floor retail and residential units above. The incorporation of residential uses into these areas introduces a use not previously anticipated and requires analysis of potential impacts to infrastructure and services. Therefore, an Addendum to The Ontario Center Specific Plan Environmental Impact Report (State Clearinghouse No. 1989041009) was prepared and is further discussed in the Environmental Review section of this report. The Addendum analyzes the future development of the 691 residential units and 71,200 square feet of retail space proposed by the Specific Plan Amendment. The development review for the residential and retail uses will be considered with future Development Plan applications.

Land use revisions proposed in the Overlay Amendment involve changing areas currently designated as Entertainment/Retail, to Mixed-Use. The revision affects Subareas 8 and 11, as well as new Subareas 16, 17, 18, and 19. The Mixed-Use land use designation allows for residential, entertainment, retail, dining, and other commercial uses.

C. Development Standards and Guidelines - The Overlay Amendment will establish development standards and guidelines for the Mixed-Use areas, which address site and building designs that can successfully blend residential and commercial uses with pedestrian oriented spaces, providing opportunities for service commercial uses within proximity to residential uses and a large entertainment venue.

The Overlay Amendment incorporates various standards and guidelines that address elements such as site plan design, building design, building materials, parking structures, plaza areas, signage, residential open spaces, and parking requirements.

The development standards for Mixed-Use areas require 15-foot building setbacks along the private streets, as measured from the curb face, to allow for pedestrian oriented corridors.

The setback requirements, however, do allow flexibility along Via Piemonte in that the building setbacks can be as little as 5 feet from curb face if an average 15-foot setback is provided along the building frontage. The setback flexibility along Via Piemonte will allow variations in building facades and footprint in order to create pedestrian spaces that are ideal for outdoor activities such as dining, people watching, and shopping.

Development standards for Mixed-Use areas include requirements for private and common open space for residential developments, mandating a minimum 50 square feet of private open space per dwelling unit and a minimum 150 square feet of common open space per dwelling unit.

The design guidelines address design goals for mixed-use developments. The Contemporary architectural style, for instance, can give architects and designers flexibility and creative leeway to design a truly unique and successful mixed-use project that can accommodate residential living, entertainment and dining experiences, and opportunities for retail businesses.

The Overlay Amendment includes the addition of design guidelines for parking structures in anticipation of future parking structures to support higher levels of residential and commercial activities than what currently exists. The design guidelines encourage parking structure designs that are compatible with surrounding buildings, aesthetically pleasing, safe 258
for pedestrians, and visually unobtrusive.

Circulation Concept - The overall circulation concept in the Piemonte Overlay remains largely unchanged. The Piemonte Overlay area is accessed from the surrounding public streets: Haven Avenue, Fourth Street, Milliken Avenue, Concours Street and Ontario Center Parkway. Internal circulation is provided through the existing private streets: Via Piemonte, Via Villagio, Via Asti and Via Alba.

The Overlay Amendment envisions that the main retail and mixed-use corridor will be oriented in a north-south direction, along Via Piemonte, instead of the east-west along Via Villagio, as shown in the current Piemonte Overlay concept. The north-south orientation will make Via Piemonte, a private street, the primary north access point from Fourth Street and will terminate at Ontario Center Parkway to the south. A pedestrian corridor along Via Piemonte will continue south of Ontario Center Parkway as a pedestrian-only area that connects to the Toyota Arena, future service commercial uses, and residential uses.

The Circulation Concept, including the street plans and sections shown as figures in the Overlay Amendment, are considered conceptual in nature. The final street designs may have minor variations from these figures as development plan applications and designs are refined.

Landscape and Streetscape Concept - The landscape and streetscape design guidelines have been revised to reflect new streetscape requirements along the internal private streets. Primarily, the Via Piemonte streetscape design was revised to be the main pedestrian and passenger vehicle corridor for the mixed-use development, incorporating curb-adjacent parkway landscape areas and wider pedestrian walkways.

Streetscape designs along Fourth Street, Concours Street, and Ontario Center Parkway remain largely unchanged, with the exception of a new drop-off and pick-up zone located on the south side of Ontario Center Parkway, at the Via Piemonte intersection, and just north of the Toyota Arena building. This new drop-off and pick-up zone would allow for taxi or car-service drop-off and pickup, providing a convenient arrival/departure point for visitors to the mixed-use areas and the Toyota Arena.

Infrastructure and Services - The proposed Overlay Amendment does not propose specific changes in the infrastructure and services in relation to the Mixed-Use land use designation. As part of the development plan review process, infrastructure demand and capacity of future projects will be analyzed during the entitlement process. Specific requirements in infrastructure sizing, location, etc., will be addressed in the development project design and conditions of approval.

Signage - The Piemonte Overlay requires that development projects prepare a Master Sign Program for the development prior to installing any identification or business signage. In addition to the current sign requirements and guidelines in the Piemonte Overlay, the proposed Overlay Amendment includes a section on Digital Advertising Signs that would limit such signs to the pedestrian corridor area east of the Toyota Arena building.

HOUSING ELEMENT COMPLIANCE: The Project is consistent with the Housing Element of the 259
Policy Plan (General Plan) component of The Ontario Plan. The Project site contains four properties listed in the Available Land Inventory contained in Table A-3 (Available Land by Planning Area) of the Housing Element Technical Report Appendix. The proposed changes affect two of the four properties listed in the Available Land Inventory (Subareas 8 and 11; Map ID No. 124 and 125). The residential capacity proposed in this Project is consistent with the number of dwelling units (198) and density (48 DU/AC) specified in the Available Land Inventory.

AIRPORT LAND USE COMPATIBILITY PLAN (ALUCP) COMPLIANCE: The California State Aeronautics Act (Public Utilities Code Section 21670 et seq.) requires that an Airport Land Use Compatibility Plan be prepared for all public use airports in the State; and requires that local land use plans and individual development proposals must be consistent with the policies set forth in the adopted Airport Land Use Compatibility Plan. On April 19, 2011, the City Council of the City of Ontario approved and adopted the Ontario International Airport Land use Compatibility Plan, establishing the Airport Influence Area for Ontario International Airport, which encompasses lands within parts of San Bernardino, Riverside, and Los Angeles Counties, and limits future land uses and development within the Airport Influence Area, as they relate to noise, safety, airspace protection, and overflight impacts of current and future airport activity. The proposed Project is located within the Airport Influence Area of Ontario International Airport and was evaluated and found to be consistent with the policies and criteria of the Ontario International Airport Land use Compatibility Plan.

ENVIRONMENTAL REVIEW: In 1980, the City Council certified The Ontario Center Specific Plan Environmental Impact Report (State Clearing House No. 80062538), in relation to the adoption of The Ontario Center Specific Plan (File No. 2254-SP), which was adopted in 1981. Over the years, several amendments to the Ontario Center Specific Plan have been approved along with appropriate environmental review. On March 19, 1991, a subsequent EIR (State Clearing House No. 89041009) ("Certified EIR") was certified in association with an amendment to The Ontario Center Specific Plan (File No. 4059-SPA). In 2016, the City approved a Mitigated Negative Declaration in association with an amendment to the Piemonte Overlay (File No. PSPA16-003).

In association with the proposed Overlay Amendment, Staff collaborated with consultant, KimleyHorn to prepare an Addendum to the Certified EIR, as amended, and found that all potential adverse direct, indirect, and cumulative environmental impacts were thoroughly analyzed and discussed in the Certified EIR, as amended, including, but not limited to potential aesthetic, air quality, greenhouse gas emissions, noise, transportation and tribal cultural resources impacts, and all feasible mitigation has been identified and will be incorporated into the proposed Project. This Project does not contemplate any actions that would require the preparation of a subsequent or supplemental environmental document under State CEQA Guidelines Section 15162 or 15163, as it is consistent with the development scenario identified within the Certified EIR. Furthermore, this Project introduces no new significant environmental impacts and no further environmental review is required. A copy of the Addendum and previous Mitigated Negative Declaration Mitigation Measures table are included as attachments to the environmental action resolution provided with this report.
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Amendment to Piemonte Overlay – Report Exhibits
File No.: PSPA21-001
April 19, 2022

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Ontario City CouncilApril 19, 2022

Ontario City Council
April 19, 2022