Agenda packet — Ontario City Council, May 3, 2022 (part 2 of 2)

Forbes
Entrepreneurship
Award 2015
Four ways to decrease
your venture's burn rate
Jan 1, 2016 publication

Page 98 ends

Education/Courses/Certifications
Awais Dilawer, B.E, MBA eq, FMVA, CMSA, CBCA, IM&A,
M&AP, American Appraisal Institute Certified, CFA
Investment Foundations Certificate Holder, Completed
Level I in 2021 (1st Attempt), CFA Level II (Candidate) Over fifteen years of experience in investment, venture capital, business management and consulting with a demonstrated record of consistent achievements across different organizations globally.

Specialties include feasibility and due diligence of investment opportunities, business strategy and planning, investment strategy development, deal negotiation and structuring.
76 Certifications
209
Key Success
Resume of the Analyst
Veritas Development Advisors,
LLC. – Senior Analyst
Consultant roles in different
transactions across USA, Europe,
Middle East and Asia Pacific.

Senior Investment Associate for
private equity and venture
capital investments
Different roles in sectors: FMCG,
power & gas, manufacturing,
petrochemical and refineries.

Professional
History
Present
Jan 2010 to Present
Jan 2010 to March 2018
Sep 2005 to 2010
― Prepared and supervised feasibility study, due diligence and business plan of various complexities across USA, EU and other regions. ― Built and recommended investment committee and board in managing real estate portfolio of million US Dollars in value (commercial malls, hospitals, stadiums, hotels, residential apartments, villas, etc.) ― Experienced in performing in depth transaction financial and commercial diligence using internal and external resources
― Assessed risk and impact analysis for different business opportunities and proposing solutions to deal with potential threatening investment risks. ― Analyzed, reviewed and evaluated reports in the area of ICT, Renewable Energy, Life Sciences Health Care and manufacturing sector in the deals pipeline
― Conducted equity valuations both for transactions and financial reporting purposes
― Developed Investment MEMO’s and deal reports for board and potential investors especially for the private equity and venture capital funds. ― Advised clients on financial feasibilities of large projects and conducted market research studies.
― Hands on experience in preparation of legal documents in coordination with internal and external resources.
― Experienced in identifying and sourcing investments in private equity and venture capital funds.
― Managed a team of different resources and contributed to their professional development. Extensive experience of talent management, coaching, development and mentoring.
― Led equity investment projects, help structuring and negotiating transactions from start to close.

Key Experience
Led due diligence and feasibility study of a biotech based in California. The transaction involved arranging financing. The target company listed on Nasdaq with the market cap of
more than a billion dollar.

Worked on the due diligence and feasibility study on an electric vehicle startup with the transaction valued more than $100 million. The target company is listed in Hong Kong Exchange with the market cap of 400 million dollar.

Successfully conducted feasibility study and due diligence of a Dutch based EV charging station company for a private equity fund. The Company is listed on Amsterdam Exchange with the market cap of 170 million dollar..
77 210
Resume of the Analyst
Key Projects throughout his career include:
78 Manufacturing:
• Battery Manufacturing, WA
• Operational Assessment Steel Plant, ME
• Dairy Farm, GA
• Shrimp Farm, AZ,
• Solar Cells Manufacturing, CA
• Aseptic Packaging Food & Beverage Plant, WV
• Bunker Fuel Oil Processing Plant, TX
• Oil and Gas Drill Fuel Wastewater Plant, OH
• Dairy Biogas Digester, WI, TX, AZ
• Yard Waste Disposal and Composting Facility, FL
• Charcoal Manufacturing, OK
• Aluminum processing facility, TX
• Hydroponics, TX, PR
• Concrete Manufacturing Plant, USVI
• Water Bottling Factory, ME
• Chip Manufacturing, ME
• Biofuel Processing, HI
• Medical Waste, RI
• Oil and Gas Wells, KY
• Frac Sand Facility, OK
• Pipe factory, EU
• Automotive, ME
• Solar Panels Coating, EU
Healthcare & Life science:
• Addiction Center, MD, PA
• Biotech, CA
• Assisted Living & Memory Care, WI, UT, TX, FL, MI, CO • Therapy and Skilled Day School Facility, FL
• Child Day Care, NV
• Hospitals, LA
• Biosimilars Manufacturing, MA
• Vaccine Manufacturing Plant, WA
• Diabetes Center, ME
• Health Information System, MO
Real Estate:
• Self Storage & RV Storage, NV, PA
• Outdoor Soccer Facility, NM
• Car Wash, CA, NV, TX
• Multicomplex Apartments, TX, LA, CA
• Leadership School, UT
• Equestrian Center, TX
• Cold Storage, FL, WI
• Primrose Schools, MD, VA
• Historic Park, IL, KY
• Indoor Sports Complex, NC, NM, TX, ID
• Gas Station with Convenience Store, UT, CA
• Nursey and Landscaping, MD
• RV Park, FL
• Indoor Shooting Range, VA
• Golf Sports Complex, CO
• Distribution & Shipping Facility, TX
• Marina, KY
• Mobile Home Park, LA
• Neighborhood Shopping Center, FL
• Squash Academy, NJ
• Private School, WA, EU
• Stadium, ME
Restaurant:
• Culver, AZ
• Independent Restaurants, UT, NM
• Buffalo Wings, KY
• Dairy Queen, GA
• Cinnabon, ME
• McDonald, ME
• Subway, ME
Hotels & Resorts:
• Baymont Inn & Suites, AZ
• Hilton Hotel, PA, CA, AZ
• Best Western, CA,
• Best Western Plus, TX
• Fairfield Inn& Suites, CA
• Mainstay Suites, TN
• Holiday Inn, TX
• Motel 6, CA
• Independent Hotels, CA, FL, UT
• Resort, NY
• Dual Branded Hotel, AL
• Banquet Hall, CA
• Event Center, TX
• Comfort Suites, CA
• Hampton Inn & Suites, CA
• Marriot, CA
211
79 Contact Us
Veritas Development Advisors, LLC (“VDA”)
Steve Alves, Managing Partner
Email: [email protected]
Ph: 240-626-1209
212
Planning Commission Staff Report
File Nos. PDEV21-021 and PCUP21-009
February 22, 2022
Exhibit L—PARKING STUDY
(Document follows this page)
213

Trames 0365-0001
4225 Oceanside Blvd., #354H
Oceanside, CA 92056
(760) 291 - 1400

October 21, 2021

Roger Barbosa
Milestone Management
9891 Irvine Center Dr., Suite #200
Irvine, CA 92618

Subject: Extended Stay Hotel Parking Study (JN 0365-0001)

Dear Mr. Barbosa:

Trames S olutions Inc. is pleased to submit the following parking evaluation for the proposed Extended Stay Hotel development. It is our understanding that t he site is proposed to be developed with a 128 room hotel. The project site is located at 5060 E.

Fourth St. in the City of Ontario.

INTRODUCTION

The proposed project consists of a 128-room hotel with an 1,824 sf meeting room, and a 331 sf cafe. Attachment A contains the site plan that shows a total of 118 parking spaces consisting of 106 regular spaces, 5 handicap spaces, and 7 electric vehicle spaces.

The intent of th is parking evaluation is to determine the parking requirements of the proposed uses based on the Cit y’s parking code and the potential requirements of the project due to the nature of the proposed land uses.

214
Roger Barbosa
Milestone Management
October 21, 2021

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Trames 0365-0001

CITY OF ONTARIO PARKING CODE REQUIREMENTS

Proposed Project
The following parking rate is based on the City of Ontario for the use associated with the proposed site:

• Hotel = 1 space per room

Therefore, according to the City’s requirements, the following number of parking spaces would be required for the proposed project:

Hotel: 128 rooms x (1 space per room) = 128 spaces

PARKING REDUCTION MEASURES

The proposed project will consist of several factors that can reduce the number of parking spaces required for the site. These “mode and noncaptive adjustment” factors include the location of the project ( urban environment), provision/proximity to public tran sit opportunities, and ride hailing opportunities.

The typical patron of the proposed hotel use is anticipated to arrive from the Ontario International Airport (about 5 miles away) to attend a conference or meeting in the adjacent area or attend an event at the Ontario Convention Center. Rather than renting a car, it is anticipated that the patrons will arrive at the hotel via a ride hailing service since the cost and convenience of such services outweigh the difficulty and expense of renting a vehicle.

Ride Hailing Services
Uber/Lyft provide on-demand transportation services for a reasonable cost. Once at the hotel, guests can use the Uber/Lyft services to travel to their nearby meetings/conferences rather than renting a vehicle.
215
Roger Barbosa
Milestone Management
October 21, 2021

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Trames 0365-0001

Public Transit
Public bus service is provided by Omnitrans Route 61 and can be taken to the Ontario Airport or other various amenities.

Urban Location
The u rban environment promotes pedestrian mobility in lieu of vehicle s. Many of the restaurants/attractions are within walking distance of the hotel. Sidewalks and signalized intersections provide controlled crossings.

Urban Land Institute (ULI) Recommended Reduction Measures The Urban Land Institute has provided mode and noncapti ve parking reduction percentages for a hotel based on the factors listed above. ULI has indicated a 41 % reduction factor during the weekday and a 31 % reduction factor during the weekend in visitor parking for a hotel located in the vicinity of a suburban location (Shared Parking, 3rd Edition, Urban Land Institute, 2020, Figure 4 -18 Suggested Mode and No ncaptive Adjustment Factors for Hotels). Since the hotel will contain an 1,824 sf meeting room and a 331 sf cafe, th ese uses w ere also accounted for in the parking calc ulations.

Furthermore, parking demands at hotels peak at different times of day/different months of the year. ULI’s publication Shared Parking, 3rd edition (2020) provides the peaking factors by time of day and month. For the analysis provided in this report, the highest peaks (worst case conditions) were used.

The peak parking demands can be determined by applying the factors and peak demands by time of day/month for the proposed hotel use as shown below. Based on the application of these factors, the hotel will have a peak demand of 94 spaces at 8 AM on a weekday and 105 spaces at 8 AM on a weekend . Attachment B contains the summary o f the project’s peak parking demands based on the ULI factors.

216
Roger Barbosa
Milestone Management
October 21, 2021

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Trames 0365-0001
Weekday at 8 AM

Suburban Hotel:

Rooms (128 rooms x 1 space/room) = 128 spaces Adjustment due to ride hailing/public transit/suburban location (41% reduction) = -52 spaces
Peak hour adjustment (10% reduction) = -8 spaces Subtotal = 68 spaces

Employees (128 rooms x .15 space/room) = 19 spaces Subtotal = 19 spaces

Meeting Room (1,824 sf x 8.72 space/tsf) = 16 spaces Peak hour adjustment (70% reduction) = -11 spaces Employees (2,155 sf x 1.39 space/tsf) = 3 spaces Peak hour adjustment (40% reduction) = -1 space Subtotal = 7 spaces

Total = 94 spaces

217
Roger Barbosa
Milestone Management
October 21, 2021

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Trames 0365-0001
Weekend at 8 AM

Suburban Hotel:

Rooms (128 rooms x 1 space/room) = 128 spaces Adjustment due to ride hailing/public transit/suburban location (31% reduction) = -40 spaces
Peak hour adjustment (10% reduction) = -9 spaces Subtotal = 79 spaces

Employees (128 rooms x .15 space/room) = 19 spaces Subtotal = 19 spaces

Meeting Room (1,824 sf x 6.78 space/tsf) = 12 spaces Peak hour adjustment (70% reduction) = -8 spaces Employees (2,155 sf x 1.41 space/tsf) = 3 spaces Peak hour adjustment (40% reduction) = -1 space Subtotal = 6 spaces

Total = 104 spaces

218
Roger Barbosa
Milestone Management
October 21, 2021

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Trames 0365-0001

CONCLUSIONS

Based on the City’s requirements, a total of 128 parking spaces would be required for the proposed 128 room hotel project. The City’s parking code does not differentiate between the various hotel types nor where they are located. For example, a resort/family hotel may require more parking spaces than a suburban hotel located near a hotel since renting a passenger vehicle may be more economical/convenient for a family on vacation than using a ride hailing service.

As indicated in this study, a reduction in the number of parking spaces for a suburban hotel has been determined due to the close proximity to the Ontario Airport, the economic advantage and convenience of ride hailing service s, and the availability of public transit services. The analysis indicates that a total of 94 parking spaces on a weekday and 104 parking spaces on a weekend would be the peak parking demands of the proposed hotel due to the factors described above. Since the project is proposed to provide 118 spaces for the hotel, a surplus of 14 parking spaces would be provided for the hotel during the peak demand timeframe.

If there are any questions regarding this evaluation, please do not hesitate to call me at (949) 244-2436.

Respectfully submitted,
Trames Solutions Inc.

Scott Sato, P.E.

Vice President

Attachment A – Site Plan
Attachment B - Shared Parking Summary
219

Trames 0365-0001

ATTACHMENT A

SITE PLAN
220
221
222

Trames 0365-0001

ATTACHMENT B

ULI PEAK PARKING DEMAND SUMMARY
223
Copyright © 2020 All rights reserved. The Urban Land Institute, International Council of Shopping Centers, and National Parking Association.

Project: Extended Stay
Description: 128 room hotel
Quantity Unit 8 AM March 8 AM March
Hotel-Business keys 1.00 59% 100% 0.59 key 1.00 69% 100% 0.69 key 80% 90% - 80% 90% - Hotel-Leisure 128 keys 1.00 59% 100% 0.59 key 1.00 69% 100% 0.69 key 90% 100% 68 90% 100% 79 Hotel Employees 128 keys 0.15 100% 100% 0.15 key 0.15 100% 100% 0.15 key 100% 100% 19 100% 100% 19 Restaurant/Lounge 331 sf GLA 6.67 63% 90% 3.78 ksf GLA 7.67 54% 30% 1.24 ksf GLA 30% 95% - 30% 95% - Meeting/Banquet (0 to 20 sq ft/key) 1,824 sf GLA 21.38 68% 60% 8.72 ksf GLA 14.25 68% 70% 6.78 ksf GLA 30% 100% 5 30% 100% 4 Meeting/Banquet (20 to 50 sq ft/key) sf GLA 0.00 68% 60% 0.00 ksf GLA 0.00 68% 70% 0.00 ksf GLA 30% 100% - 30% 100% - Meeting/Banquet (50 to 100 sq ft/key) sf GLA 0.00 68% 60% 0.00 ksf GLA 0.00 68% 70% 0.00 ksf GLA 30% 100% - 30% 100% - Convention (100 to 200 sq ft/key) sf GLA 0.00 68% 60% 0.00 ksf GLA 5.50 68% 70% 2.62 ksf GLA 50% 90% - 50% 90% - Convention (> 200 sq ft/key) sf GLA 5.50 68% 60% 2.24 ksf GLA 5.50 68% 70% 2.62 ksf GLA 50% 90% - 50% 90% - Restaurant/Meeting Employees 2,155 sf GLA 1.39 100% 100% 1.39 ksf GLA 1.41 100% 100% 1.41 ksf GLA 60% 100% 2 60% 100% 2 73 83
21 21
- -
94 104
Additional Land Uses
Total
Reserved
Employee/Resident
CustomerCustomer/Visitor
Employee/Resident
Total
Reserved
Office
Base
Ratio
Unit For
Ratio
Estimated
Parking
Demand
Retail
Non-
Captive
Ratio
Project
Ratio
Non-
Captive
Ratio
Project
Ratio
Driving
Adj
Entertainment and Institutions
Hotel and Residential
Food and Beverage
Base
Ratio
Driving
Adj
Peak Hr
Adj
Weekend
Shared Parking Demand Summary
Peak Month: MARCH -- Peak Period: 8 AM, WEEKEND
WeekdayWeekendWeekday
Project DataLand Use Peak Mo
AdjUnit For
Ratio
Estimated
Parking
Demand
Peak Hr
Adj
Peak Mo
Adj
224
September 2018 Program (Un-Nested Residential)
0 20
40 60
80 100
120
140Parking Stalls
Hour
Peak Month Daily Parking Demand by Hour (Weekday)
Hotel Total Supply
225
September 2018 Program (Un-Nested Residential)
0 20
40 60
80 100
120
140
Parking Stalls
Hour
Peak Month Daily Parking Demand by Hour (Weekend)
Hotel Total Supply
226
RESOLUTION NO. PC22-011

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF

ONTARIO, CALIFORNIA, RECOMMENDING APPROVAL TO CITY
COUNCIL FOR FILE NO. PCUP21-009, A CONDITIONAL USE PERMIT TO ESTABLISH AND OPERATE A 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.

WHEREAS, ROGER BARBOSA ("Applicant") has filed an Application for the approval of a Conditional Use Permit, File No. PCUP21-009, as described in the title of this Resolution (hereinafter referred to as "Application" or "Project"); and

WHEREAS, the Application applies to 1.83 acres of land located at 5060 East Fourth Street, within the Freeway Commercial land use district of The Exchange Specific Plan, and the site is presently vacant; and

WHEREAS, the property to the north of the Project site is within the Freeway Commercial land use district of The Exchange Specific Plan and is developed with a multi- tenant retail building. The property to the east is within the Open Space zoning district and is developed with Southern California Edison transmission lines. The property to the south is within the Freeway Commercial land use district of The Exchange Specific Plan and is currently vacant. The property to the west is Interstate 15; and

WHEREAS, on June 4, 2021, the Applicant submitted File No. PCUP21 -009, a Conditional Use Permit application requesting approval to establish and operate a limited- service hotel land use on the Project site; and

WHEREAS, the proposed Conditional Use Permit was submitted for concurrent processing with File No. PDEV21-021, a Development Plan to construct a 4-story, 128- room Extended Stay Hotel on the Project site; and

WHEREAS, in 2003, the City approved The Exchange Specific Plan, a 23.60-acre master plan for the project area. The Exchange Specific Plan is composed of two land use districts, including the Freeway Commercial land use district, which comprises the northerly 12.03 acres of the Specific Plan, and the Industrial Park land use district, which comprises the southerly 11.57 acres of the Specific Plan; and

WHEREAS, the City’s Development Code requires that all new h otels must be reviewed under concurrently filed Conditional Use Permit and Development Plan applications. The purpose of the Conditional Use Permit application and review is to ensure that the proposed use will be operated in a manner consistent with all l ocal regulations, and to ensure the use will not be detrimental to the public health, safety, or 227
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welfare, or materially injurious to uses, properties or improvements in the vicinity. More specifically, in the case of hotels, the Conditional Use Permit is required to establish the project’s market feasibility and ensure on- going compliance with the minimum amenity package required by the Development Code; and

WHEREAS, in fulfillment of the requirements of Development Code Section

WHEREAS, the proposed Project has met or exceeded the minimum amenity package requirements, as stipulated by Section 5.03.250.D (Minimum Amenity Package) of the City’s Development Code; and

WHEREAS, the Application is a project pursuant to the California Environmental Quality Act, commencing with Public Resources Code Section 21000 (hereinafter referred to as "CEQA"); and

WHEREAS, the Project is exempt from CEQA pursuant to a categorical exemption (listed in CEQA Guidelines Article 19, commencing with Section 15300) and the application of that categorical exemption is not barred by one of the exceptions set forth in CEQA Guidelines Section 15300.2; and

WHEREAS, Ontario Development Code Table 2.02-1 (Review Matrix) grants the Planning Commission the responsibility and authority to review and make recommendation to the City Council on the subject Application; and

WHEREAS, the Project has been reviewed for consistency with the Housing Element of the Policy Plan component of The Ontario Plan, as State Housing Element law (as prescribed in Government Code Sections 65580 through 65589.8) requires that development projects must be consistent with the Housing Element, if upon consideration of all its aspects, it is found to further the purposes, principals, goals, and policies of the Housing Element; and

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WHEREAS, the Project is located within the Airport Influence Area of Ontario International Airport, which encompasses lands within parts of San Bernardino, Riverside, and Los Angeles Counties, and is subject to, and must be consistent with, the policies and criteria set forth in the Ontario International Airport Land Use Compatibility Plan (“ALUCP”), which applie s only to jurisdictions within San Bernardino County, and addresses the noise, safety, airspace protection, and overflight impacts of current and future airport activity; and

WHEREAS, City of Ontario Development Code Division 2.03 (Public Hearings) prescribes the manner in which public notification shall be provided and hearing procedures to be followed, and all such notifications and procedures have been completed; and

WHEREAS, on February 7, 2022, the Development Advisory Board of the City of Ontario conducted a hearing to consider the Project, and concluded said hearing on that date, voting to issue Decision No. DAB22-007, recommending that the Planning Commission recommend the City Council approve the Application; and

WHEREAS, on February 22, 2022, the Planning Commission of the City of Ontario conducted a hearing to consider the Project, and concluded said hearing on that date; and

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

NOW, THEREFORE, IT IS HEREBY FOUND, DETERMINED, AND RESOLVED by the Planning Commission of the City of Ontario, as follows:

SECTION 1: Environmental Determination and Findings. As the recommending authority for the Project, the Planning Commission has reviewed and considered the information contained in the administrative record for the Project. Based upon the facts and information contained in the administrative record, including all written and oral evidence presented to the Planning Commission, the Planning Commission finds as follows:

(1) The administrative record has been completed in compliance with CEQA, the State CEQA Guidelines, and the City of Ontario Local CEQA Guidelines; and

(2) The Project is categorically exempt from environmental review pursuant to Section 15332 (Class 32, In-Fill Development Projects) of the CEQA Guidelines , which consists of: (a) the Project is consistent with the applicable general plan designation and all applicable general plan policies, as well as the applicable zoning designation and regulations; (b) the proposed development occurs within city limits, on a project site of no more than five acres, and is substantially surrounded by urban uses; (c) the Project site 229
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has no value as habitat for endangered, rare, or threatened species; (d) approval of the Project will not result in any significant effects relating to traffic, noise, air quality, or water quality; and (e) the Project site is adequately served by all required utilities and public services; and

(3) The application of the categorical exemption is not barred by one of the exceptions set forth in CEQA Guidelines Section 15300.2; and

(4) The determination of CEQA exemption reflects the independent judgment of the Planning Commission.

SECTION 2: Housing Element Compliance . Pursuant to the requirements of California Government Code Chapter 3, Article 10.6, commencing with Section 65580, as the recommending authority for the Project, the Planning Commission finds that based on the facts and information contained in the Application and supporting documentation, at the time of Project implementation, the project is consistent with the Housing Element of the Policy Plan (General Plan) component of The Ontario Plan, as the project site is not one of the properties in the Available Land Inventory contained in Table A-3 (Available Land by Planning Area) of the Housing Element Technical Report Appendix.

SECTION 3: Ontario International 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 ALUCP, establishing the Airport Influence Area for Ontario International Airport (hereinafter referred to as “ONT”), 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. As the recommending authority for the Project, the Planning Commission has reviewed and considered the facts and information contained in the Application and supporting documentation against the ALUCP compatibility factors, includi ng [ 1] Safety Criteria (ALUCP Table 2-2) and Safety Zones (ALUCP Map 2-2), [2] Noise Criteria (ALUCP Table 2-3) and Noise Impact Zones (ALUCP Map 2 -3), [3] Airspace protection Zones (ALUCP Map 2- 4), and [ 4] Overflight Notification Zones (ALUCP Map 2- 5). As a result, the PLANNING COMMISSION , therefore, finds and determines that the Projec t, when implemented in conjunction with the conditions of approval, will be consistent with the policies and criteria set forth within the ALUCP.

SECTION 4: Concluding Facts and Reasons. Based upon the substantial evidence presented to the Planning Commission during the above- referenced hearing, 230
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and upon the specific findings set forth in Sections 1 through 3, above, the Planning Commission hereby concludes as follows:

(1) The scale and intensity of the proposed land use would be consistent with the scale and intensity of land uses intended for the particular zoning or land use district. The proposed location of the Conditional Use Permit is in accord with the objectives and purposes of the City of Ontario Development Code and The Exchange Specific Plan, and the scale and intensity of land uses intended for the Freeway Commercial land use district in which the use is proposed to be located. Furthermore, the proposed 128-room, hotel land use will be established and operated consistent with the objectives and purposes, and development standards and guidelines of the Freeway Commercial land use designation of The Exchange Specific Plan; and

(2) The proposed use at the proposed location, and the manner in which it will be operated and maintained, is consistent with the goals, policies, plans and exhibits of the Vision, Policy Plan (General Plan), and City Council Priorities components of The Ontario Plan. The proposed 128-room hotel land use will be located within the Planned Commercial land use district of the Policy Plan Land Use Map, and the Freeway Commercial land use district of The Exchange Specific Plan. The development standards, and the conditions of approval under which the proposed land use will be established, operated, and maintained, are consistent with the goals, policies, plans, and exhibits of the Vision, City Council Priorities, and Policy Plan (General Plan) components of The Ontario Plan; and

(3) The proposed use at the proposed location, and the manner in which it will be operated and maintained, is consistent with the objectives and requirements of the Development Code and any applicable specific plan or planned unit development. The proposed 128-room hotel land use is located with the Freeway Commercial land use district of The Exchange Specific Plan and has been reviewed and conditioned to ensure the establishment, operation and maintenance of the proposed land use consistent with all applicable objectives, purposes, standards, and guidelines of the Development Code and The Exchange Specific Plan; and

(4) The establishment, maintenance, and operation of the proposed use at the proposed location would not be detrimental or injurious to property and improvements within the vicinity, nor would it be detrimental to the health, safety, or general welfare of persons residing or working in the surrounding neighborhood. The Development Advisory Board has required certain safeguards , and impose certain conditions of approval, which have been established to ensure that: [i] the purposes of The Exchange Specific Plan are maintained; [ii] the project will not endanger the public health, safety or general welfare; [iii] the project will not result in any significant environmental impacts; and [iv] the project will be in harmony with the surrounding area in which it is proposed to be located.
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SECTION 5: Planning Commission Action. Based upon the findings and conclusions set forth in Sections 1 through 4, above, the Planning Commi ssion hereby RECOMMENDS THE CITY COUNCIL APPROVE the herein described Application, subject to each and every condition set forth in the Department reports attached hereto as “Attachment A,” and incorporated herein by this reference.

SECTION 6: Indemnification. The Applicant shall agree to defend, indemnify and hold harmless, the City of Ontario or its agents, officers, and employees from any claim, action or proceeding against the City of Ontario or its agents, officers or employees to attack, set aside, void, or annul this approval. The City of Ontario shall promptly notify the applicant of any such claim, action, or proceeding, and the City of Ontario shall cooperate fully in the defense.

SECTION 7: Custodian of Records. The documents and materials that constitute the record of proceedings on which these findings have been based are located at the City of Ontario City Hall, 303 East “B” Street, Ontario, California 91764. The custodian for these records is the City Clerk of the City of Ontario.

SECTION 8: Certification to Adoption. The Secretary shall certify to the adoption of the Resolution.

- - - - - - - - - - - - - -

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ATTACHMENT A:

File No. PCUP21-009
Departmental Conditions of Approval

(Departmental conditions of approval to follow this page)

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303 East B Street, Ontario, California 91764 Phone: 909.395.2036 / Fax: 909.395.2420

LAND DEVELOPMENT DIVISION

CONDITIONS OF APPROVAL

Date Prepared: 1/24/2022

File No: PCUP21-009

Related Files: N/A

Project Description: A Conditional Use Permit (File No. PCUP21 -009) to establish and operate a limited-service hotel use 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); submitted by Roger Barbosa.

Prepared By: Luis E. Batres, Senior Planner
Phone: 909.395.2431 (direct)
Email: [email protected]

The Planning Department, Land Development Section, conditions of approval applicable to the above-described Project, are listed below. The Project shall comply with each condition of approval listed below:

1.0 Standard Conditions of Approval. The project shall comply with the Standard Conditions for New Development, adopted by City Council Resolution No. 2017-027 on April 18, 2017. A copy of the Standard Conditions for New Development may be obtained from (https://www.ontarioca.gov/Planning/Applications
) or from the Planning Departmen t/City
Clerk/Records Management Department.

2.0 Special Conditions of Approval. In addition to the Standard Conditions for New Development identified in condition no. 1.0, above, the project shall comply with the following special conditions of approval:

2.1 Time Limits. Conditional Use Permit approval shall become null and void one year following the effective date of application approval, unless a building permit is issued and construction is commenced, and diligently pursued toward completion, or a time extension has been approved by the Planning Director, except that a Conditional Use Permit approved in conjunction with a Development Plan shall have the same time limits as said Development Plan.

This condition does not supersede any individual time limits specified herein, or any other departmental conditions of approval applicable to the Project, for the performance of specific conditions or improvements.

2.2 General Requirements . The Project shall comply with the following general requirements:

(a) All construction documentation shall be coordinated for consistency, including, but not limited to, architectural, structural, mechanical, electrical, plumbing, landscape 236
Planning Department – Land Development Division
Conditions of Approval
File No.: PCUP21-009

Page 2 of 2 ends

and irrigation, grading, utility and street improvement plans. All such plans shall be consistent with the approved entitlement plans on file with the Planning Department.

(b) The project site shall be developed in conformance with the approved plans on file with the City. Any variation from the approved plans must be reviewed and approved by the Planning Department prior to building permit issuance.

(c) The herein-listed conditions of approval from all City departments shall be included in the construction plan set for project, which shall be maintained on site during project construction.

(d) The project shall provide a total of 118 parking spaces . In the future, if it is determined by the Planning Department as a result of complaints received that additional parking is necessary , the Applicant shall enter into a reciprocal parking agreement with adjacent developments to provide the additional parking (additional 10 parking spaces).

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RESOLUTION NO. ________

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.

WHEREAS, ROGER BARBOSA ("Applicant") has filed an Application for the approval of File No. PCUP21-009, a Conditional Use Permit as described in the title of this Resolution (hereinafter referred to as "Application" or "Project"); and WHEREAS, the Application applies to 1.83 acres of land located at 5060 East Fourth Street, within the Freeway Commercial land use district of The Exchange Specific Plan, and the site is presently vacant; and
WHEREAS, the property to the north of the Project site is within the Freeway Commercial land use district of The Exchange Specific Plan and is developed with a multi- tenant retail building. The property to the east is within the Open Space zoning district and is developed with Southern California Edison transmission lines. The property to the south is within the Freeway Commercial land use district of The Exchange Specific Plan and is currently vacant. The property to the west is Interstate 15; and WHEREAS, on June 4, 2021, the Applicant submitted File No. PCUP21-009, a Conditional Use Permit application requesting approval to establish and operate a limited- service hotel on the Project site; and
WHEREAS, the proposed Conditional Use Permit was submitted for concurrent processing with File No. PDEV21-021, a Development Plan to construct a four-story, 128-room Extended Stay Hotel on the Project site; and
WHEREAS, in 2003, the City approved The Exchange Specific Plan, a 23.60 acre master plan for the project area. The Exchange Specific Plan is composed of two land use districts, including the Freeway Commercial, which comprises the northerly 12.03 acres of the Specific Plan, and the Industrial Park land use district, which comprises the southerly 11.57 acres of the Specific Plan; and
WHEREAS, the City’s Development Code requires that all new hotels must be reviewed under concurrently filed Conditional Use Permit and Development Plan applications. The purpose of the Conditional Use Permit application and review is to ensure that the proposed use will be operated in a manner consistent with all local regulations, and to ensure the use will not be detrimental to the public health, safety, or welfare, or materially injurious to uses, properties or improvements in the vicinity. More specifically, in the case of hotels, the Conditional Use Permit is required to establish the project’s market feasibility and ensure on-going compliance with the minimum amenity package required by the Development Code; and
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WHEREAS, Development Code Section 5.03.250.D (Minimum Amenity Package) stipulates that no Conditional Use Permit shall be approved for a hotel, motel, residence inn, or other similar traveler accommodation, unless certain specific amenities are provided and permanently maintained, as described below:
 Each guestroom shall include voicemail, wired or wireless internet access, desk with chair, hairdryer, retractable magnifying (10X) and lighted makeup mirror, iron and ironing board, high definition television, and alarm clock or wake-up service.

Compliance with these requirements will be verified by the Planning Department during Building Department plan check and at time of final building inspection; and  For limited-service hotels, meeting space equal to 15 square feet per guestroom shall be provided, requiring that Project provide a minimum of 1,920 square feet of meeting/gathering area. The Project exceeds the minimum requirement, incorporating a total of 2,250 square feet of available meeting/gathering area; and  Both active and passive leisure amenities are required. At a minimum, the Project must provide a swimming pool, whirlpool/spa or furnished cabana, and fitness room. The Project exceeds the minimum requirement, providing a pool and spa, poolside cabana, outdoor seating areas, and a fitness room; and  A guest courtesy lounge for the serving of light meals and snacks is required to be provided in conjunction with limited-service hotels. The Project has provided a 331-square-foot café/snack room for hotel guests, meeting the minimum requirement; and
WHEREAS, in fulfillment of the requirements of Development Code Section

5.03.250.C (Market Feasibility Report Required), the Applicant has submitted a Market Feasibility Study, which demonstrates that the local market can support the development of a new hotel. The Study, prepared by Veritas Development Advisors (dated October 21, 2021), includes analysis and market research related to the proposed project. The Study found that the local market can support a limited-service hotel on the Project site. The study’s conclusions are based primarily upon the growth in the Inland Empire, the area’s proximity to the Los Angeles area, the Ontario Convention Center, the Ontario International Airport, California Speedway in Fontana, and the Project’s proximity to the Ontario Mills Mall. The report includes an analysis of other similar hotels in the area, long-term viability, and overall demand due to new businesses and activities in and around the City; and
WHEREAS, the Application is a project pursuant to the California Environmental Quality Act, commencing with Public Resources Code Section 21000 (hereinafter referred to as "CEQA"); and
WHEREAS, the Project is exempt from CEQA pursuant to a categorical exemption (listed in CEQA Guidelines Article 19, commencing with Section 15300) and the application of that categorical exemption is not barred by one of the exceptions set forth in CEQA Guidelines Section 15300.2; and
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WHEREAS, Ontario Development Code Table 2.02-1 (Review Matrix) grants the City Council the responsibility and authority to review and act on the subject Application; and
WHEREAS, the Project has been reviewed for consistency with the Housing Element of the Policy Plan component of The Ontario Plan, as State Housing Element law (as prescribed in Government Code Sections 65580 through 65589.8) requires that development projects must be consistent with the Housing Element, if upon consideration of all its aspects, it is found to further the purposes, principals, goals, and policies of the Housing Element; and
WHEREAS, the Project is located within the Airport Influence Area of Ontario International Airport, which encompasses lands within parts of San Bernardino, Riverside, and Los Angeles Counties, and is subject to, and must be consistent with, the policies and criteria set forth in the Ontario International Airport Land Use Compatibility Plan (“ALUCP”), which applies only to jurisdictions within San Bernardino County, and addresses the noise, safety, airspace protection, and overflight impacts of current and future airport activity; and
WHEREAS, City of Ontario Development Code Division 2.03 (Public Hearings) prescribes the manner in which public notification shall be provided and hearing procedures to be followed, and all such notifications and procedures have been completed; and
WHEREAS, on February 7, 2022, the Development Advisory Board of the City of Ontario conducted a hearing to consider the Project, and concluded said hearing on that date, voting to issue Decision No. DAB22-007, recommending that the Planning Commission recommend the City Council approve the Application; and WHEREAS, on February 22, 2022, the Planning Commission of the City of Ontario conducted a hearing to consider the Project and concluded said hearing on that date, voting unanimously (7-0) to issue Resolution No. PC22-01 recommending that the City Council approve the Application; and
WHEREAS, on April 19, 2022, the City Council of the City of Ontario conducted a hearing to consider the Project, and concluded said hearing on that date; and WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.

NOW, THEREFORE, IT IS HEREBY FOUND, DETERMINED, AND RESOLVED by the City Council of the City of Ontario, as follows:

SECTION 1. Environmental Determination and Findings. As the decision-making body for the Project, the City Council has reviewed and considered the information contained in the administrative record for the Project. Based upon the facts and information contained in the administrative record, including all written and oral evidence presented to the City Council, the City Council finds as follows:
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(1) The administrative record has been completed in compliance with CEQA, the State CEQA Guidelines, and the City of Ontario Local CEQA Guidelines; and (2) The Project is categorically exempt from environmental review pursuant to Section 15332 (Class 32, In-Fill Development Projects) of the CEQA Guidelines, which consists of: (a) the Project is consistent with the applicable general plan designation and all applicable general plan policies, as well as the applicable zoning designation and regulations; (b) the proposed development occurs within city limits, on a project site of no more than five acres, and is substantially surrounded by urban uses; (c) the Project site has no value as habitat for endangered, rare, or threatened species; (d) approval of the Project will not result in any significant effects relating to traffic, noise, air quality, or water quality; and (e) the Project site is adequately served by all required utilities and public services; and
(3) The application of the categorical exemption is not barred by one of the exceptions set forth in CEQA Guidelines Section 15300.2; and (4) The determination of CEQA exemption reflects the independent judgment of the City Council.

SECTION 2. Housing Element Compliance. Pursuant to the requirements of California Government Code Chapter 3, Article 10.6, commencing with Section 65580, as the decision-making body for the Project, the City Council finds that based on the facts and information contained in the Application and supporting documentation, at the time of Project implementation, the project is consistent with the Housing Element of the Policy Plan (General Plan) component of The Ontario Plan, as the project site is not one of the properties in the Available Land Inventory contained in Table A-3 (Available Land by Planning Area) of the Housing Element Technical Report Appendix.

SECTION 3. Ontario International 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 (“ALUCP”), establishing the Airport Influence Area for Ontario International Airport (“ONT”), 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. As the decision-making body for the Project, the City Council has reviewed and considered the facts and information contained in the Application and supporting documentation against the ALUCP compatibility factors, including [1] Safety Criteria (ALUCP Table 2-2) and Safety Zones (ALUCP Map 2-2), [2] Noise Criteria (ALUCP Table 2-3) and Noise Impact Zones (ALUCP Map 2-3), [3] Airspace protection Zones (ALUCP Map 2-4), and [4] Overflight Notification Zones (ALUCP Map 2-5). As a result, the City Council, therefore, finds and determines that the Project, when implemented in conjunction with the conditions of approval, will be consistent with the policies and criteria set forth within the ALUCP.
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SECTION 4. Concluding Facts and Reasons. Based upon the substantial evidence presented to the City Council during the above-referenced hearing, and upon the specific findings set forth in Sections 1 through 3, above, the City Council hereby concludes as follows:
(1) The scale and intensity of the proposed land use would be consistent with the scale and intensity of land uses intended for the particular zoning or land use district. The proposed location of the Conditional Use Permit is in accord with the objectives and purposes of the City of Ontario Development Code and The Exchange Specific Plan, and the scale and intensity of land uses intended for the Freeway Commercial land use district in which the use is proposed to be located. Furthermore, the proposed 128-room extended stay hotel will be established and operated consistent with the objectives and purposes, and development standards and guidelines of the Freeway Commercial land use designation of The Exchange Specific Plan, which meets the Specific Plans goal of providing a balance of employment, shopping and service opportunities, reducing the need for long commutes; and (2) The proposed use at the proposed location, and the manner in which it will be operated and maintained, is consistent with the goals, policies, plans and exhibits of the Vision, Policy Plan (General Plan), and City Council Priorities components of The Ontario Plan. The proposed 128-room extended stay hotel will be located within the Planned Commercial land use district of the Policy Plan Land Use Map, and the Freeway Commercial land use district of The Exchange Specific Plan. A hotel land use within the Freeway Commercial land use is conditionally permitted with the approval of a Conditional Use Permit. Furthermore, the development standards, and the conditions of approval under which the proposed land use will be established, operated, and maintained, are consistent with the goals, policies, plans, and exhibits of the Vision, City Council Priorities, and Policy Plan (General Plan) components of The Ontario Plan; and (3) The proposed use at the proposed location, and the manner in which it will be operated and maintained, is consistent with the objectives and requirements of the Development Code and any applicable specific plan or planned unit development. The proposed 128-room extended stay hotel is located with the Freeway Commercial land use district of The Exchange Specific Plan and has been reviewed and conditioned to ensure the establishment, operation and maintenance of the proposed land use is consistent with all applicable objectives, purposes, standards, and guidelines of the Development Code and The Exchange Specific Plan; and (4) The establishment, maintenance, and operation of the proposed use at the proposed location would not be detrimental or injurious to property and improvements within the vicinity, nor would it be detrimental to the health, safety, or general welfare of persons residing or working in the surrounding neighborhood.

The establishment, maintenance, and operation of the proposed 128-room extended stay hotel at the proposed location would not be detrimental or injurious to property and improvements within the vicinity, nor would it be detrimental to the health, safety, or general welfare of persons residing or working in the surrounding neighborhood. The project site is located within the Freeway Commercial land use designation of the Exchange Specific Plan 242
and a hotel use is a conditionally permitted use. In addition, certain safeguards are required and certain conditions of approval have been imposed, which have been established to ensure that: (i) the purposes of The Exchange Specific Plan are maintained; (ii) the project will not endanger the public health, safety or general welfare; (iii) the project will not result in any significant environmental impacts; and (iv) the project will be in harmony with the surrounding area in which it is proposed to be located.

SECTION 5. City Council Action. Based upon the findings and conclusions set forth in Sections 1 through 4, above, the City Council hereby APPROVES the herein described Conditional Use Permit subject to each and every condition set forth in the Department reports, attached hereto as Exhibit “A” and incorporated herein by this reference.

SECTION 6. Indemnification. The Applicant shall agree to defend, indemnify, and hold harmless, the City of Ontario or its agents, officers, and employees from any claim, action or proceeding against the City of Ontario or its agents, officers or employees to attack, set aside, void, or annul this approval. The City of Ontario shall promptly notify the applicant of any such claim, action, or proceeding, and the City of Ontario shall cooperate fully in the defense.

SECTION 7. Custodian of Records. The documents and materials that constitute the record of proceedings on which these findings have been based are located at the City of Ontario City Hall, 303 East “B” Street, Ontario, California 91764. The custodian for these records is the City Clerk of the City of Ontario.

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

PASSED, APPROVED, AND ADOPTED this 3rd day of May 2022. _____________________________________
PAUL S. LEON, MAYOR
ATTEST:
_________________________________

SHEILA MAUTZ, CITY CLERK
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APPROVED AS TO FORM:
_______________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY
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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 May 3, 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 May 3, 2022. _________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
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ATTACHMENT A:

Conditions of Approval
(Document follows this page)
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248
249
250
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Department: Investments & Revenue Resources
Prepared By: Nicole Phillips
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: 15
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
May
3, 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 254
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. City Council opened the hearing on April 19, 2022, and continued the hearing to May 3, 2022.

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 255
entering into a sales contract.

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 May 3, 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. 256
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; 258
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 259
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 260
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 3rd day of May 2022. _____________________________________
PAUL S. LEON, MAYOR
261
ATTEST:
____________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
____________________________________

BEST BEST & KRIEGER, LLP

CITY ATTORNEY
262

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
263
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.
264

EXHIBIT B

PROPOSED RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX 265

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 Tax es shall be levied on all Assessor’s Parcels in the City of Ontario Community Facilities District N o. 63 (Olive and Oleander Facilities ) ( “CFD No. 63”) and collected each Fiscal Year, commencing in Fiscal Year 20 22-23, 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 t he 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 ac tual or reasonably e stimated 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 cost s of remitting the Special Tax es 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 c osts to the Ci ty or CFD No. 63 of complying with arbitra ge 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 A ct; the costs associated with preparing Special Tax di sclosure 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 fun ds from any escrow account; the City’s administration fees and third party expenses; the costs of City s taff time and reasonab le overhead relating to CFD No. 63; and amounts estimated or advanced by the City or CFD No. 63 for any other 266

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 Ta x” 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 Pr operty, 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 Pa rt 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 Ca lifornia 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 levi ed on an individual Assessor ’s Parcel pursuant to a 267

City of Ontario CFD No. 63 3 February 16, 2022
contractual agreement or other voluntary c onsent 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 Owne r Association Proper ty, and Taxable Public Property, for which a buildi ng permit or other a pplicable 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 F amily Property or, as determined by the CFD Adminis trator, 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 whol e 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 wi thin a Final Subdivision Map. The term Final Mapped Property shall include any parcel map or Final Subdivision Map, or portion thereof , that cre ates individual lots for which a building permit may be issued, includi ng P arcels 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 m ap, 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 i ndividual lots for w hich 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 Fis cal Year, an As sessor’s Par cel wit hin the boundaries of CFD No. 63 that is subject to a welfare exemption under subdivision (g) of Section 214 of the California Revenue and 268

City of Ontario CFD No. 63 4 February 16, 2022
Taxation Code (or any successor statute), as indicated in the most r ecent 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 s old at a disco unt 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 per mit was issued by t he 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 whic h 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) h as substantial experience in performing price point studies for residential units within community facilities districts established under the Act or otherwise estimatin g or confirming pricing for res idential 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 CF D No. 63, and (e) is not connec ted with CFD No. 63 or the City as an off icer 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 pr ice 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 fir st step of Section D below, that the ratio of the actual Special Tax levy to the Maximum Spec ial Tax is equal for all Assessor’s Parcels of Developed Property; however, for Developed Property in the fourth step of Section D below, Proportionately m eans that the amount of the increase above the Assigned Special Tax , if necessary, is equal for all Assessor’s Parc els of Developed Property, except that if the Backup Spe cial Tax limits the increase o n any 269

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 Parc els 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 ra tio of the actual Special Tax le vy to the Maximum Special Tax is equal for all Assessor’s Parcels of Taxable Public Property.

“Public Property” means, for each Fiscal Year, property w ithin 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 publi c agency or (b) encumbered by an easement for purposes of public or utility ri ght-of-way that makes impractical its use for any purpose other t han that set fo rth 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 class ified according to its use.

“Rate and Method of Apportionment” means this Rate and Method of A pportionment of Special Tax.

“Residential Floor Area ” means all of the Square F ootage of livi ng area within t he perimeter of a Unit, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determin ation of Reside ntial Floor Area shall be as set forth in the building permit(s) issued for such As sessor’s Pa rcel, or as set forth in other official records maintained by the C ity’s Building Department or other appropriate means selected by CFD No. 63. Th e actual Square Footage shall be round ed up to the next whole square f oot. Once such det ermination has been made for an Asse ssor’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 wh ich 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 Attac hed Property ” means all Assessor’s Parcels of Devel oped Property for which a building permit or use permit was issue d for construct ion of a residential struc ture consisting of two or more Units that share common walls, have separate Assesso r’s Parcel Numbers assigned to them (except for a duplex unit, whic h may share an Assessor’s Parcel with another duplex unit), and m ay be purchased by individual homebuyers (which shall still be the case even if the Units are purchased and subsequently off ered for rent by the owner of the Unit), including such residential 270

City of Ontario CFD No. 63 6 February 16, 2022
structures that meet the statutory definition of a condominium c ontained in Cal ifornia 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 Re quirement” means for any Fiscal Year that amount re quired, after taking into account available amounts held in the f unds and accounts established under the Indenture, for CFD No. 63 to: (i) pay debt service on all Outstan ding 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, c redit enhancement and rebate payments on the Bonds; (iii) pa y a pro rat a share of Administrative Expenses; (iv) provide any amounts required to establis h or replenish any reserve fund for the Bonds; (v) pay directly for acquisition or construction of Facil ities, or the cost of Services, to the extent that the inclusion of such amount s does not increase the Sp ecial Tax levy on Final Mapped Property or Undeveloped Property; and (vi) provide an amount equal to Special Tax delinquencies based on the histori cal delinquency rate for the Special Tax as determined by the CFD Administrator.

“Square Footage” or “Sq. Ft .” means the floor area square f ootage reflected on the original construction building permit , or as set forth in other official records m aintained by the City’s Building Department or other appropri ate means s elected by CFD No. 63, issued for construction of Residential Property or Non- Residential Property , plus any square f ootage 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 P roperty Own er Associ ation P roperty” means, for each Fiscal Year, all Assessor’s Parcels of Property Owner Association Property that are not exe mpt 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.

271

City of Ontario CFD No. 63 7 February 16, 2022

“Tentative Tract Map” means a map: (i) showing a proposed subd ivision of an Assessor’s Parcel(s) and the conditions pertaining theret o; (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 Cla ss, 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 s pecial 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 comm unity facilities districts, and any other governmental fees , charges (ot her than fees or charges for services such as sewer and trash) , taxe s, and assessments (which do not include Contractual Impositions) collected by the Count y on ad valorem tax bills an d that the CFD Administrator estimates would be levied or impose d on suc h Unit in such Fiscal Year if the residential dwelling unit thereon or therein had been completed and sold, a nd 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 eac h Fiscal Year, all Taxable Prope rty not classified as Developed Property, Final Mapped Property, Taxable Public Property, or Taxable Property Owner Association Property.

“Unit” means an in dividual single -family detached or attached home, townhome , condominium, apartment, or other reside ntial dwelling unit, including e ach 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 20 22-23, all Taxable Property within CFD No. 63 shall be classified as Developed Property, Final Mapped Property, Taxable Public Property, Taxable Property Owner Association Pr operty, or Undeve loped Property and shall be subject to Special Taxes in accordance with the Rate and M ethod 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 Resident ial Property , or Non- Residential Property. Ass essor’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 C lasses 6 through 10, as listed in Table 1 below based on the Resid ential Floor Area of the U nits 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.

272

City of Ontario CFD No. 63 8 February 16, 2022
C. MAXIMUM SPECIAL TAX

1. Special Tax

At least 3 0 days prior to the issuance of B onds, the Assigned Speci al Tax on Developed Property (set forth in Table 1 below) shall be analyzed in accorda nce with and subject to the conditions set forth in this Section C. At such time, CFD No. 63 shall s elect and engage a Price Point Consultant and the CFD Administrator shall request the Pr ice Point Consul tant 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 Admini strator calculates that the Total T ax Bu rden applicable t o Units within one or more Land Use C lasses 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 th e extent necessary to caus e the Total Tax Burden that shall apply t o Units within such Land Use Class(es) not to exceed 1.95% of the M inimum Sale Price of such Units.

Each Assigned Special Tax reduction for a Land Use Class shall be cal culated by the CFD Administrator separately, and i t shall not be required that such reduction be proportionate among Land Use Classes. In connection w ith 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 T ax reductions occurred. U pon determining the reductions, if any, in the Assigned Special Tax and Backup Special Tax required purs uant to this Section C, th e CFD Administrator shall c omplete the Certificate of Modification of Special Tax substantially in the form attached heret o as Exhibit 1 (the “Certificate of Modification”), shall execute such completed Ce rtificate of Modification , and shall deliver such executed Certificate of Modi fication 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 su ch Certificate of Modificati on 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 N o. 63. The reductions in this section apply to Single Family Property, but not to Other Residential Property or N on- Residential 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 273

City of Ontario CFD No. 63 9 February 16, 2022
be the greater of (i) the amount derived by applicati on of the Assigned Special Tax or (ii) the amount derived by appl ication of the Backup Special Tax . The Maximum S pecial 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 S ingle Family Detached Property and $3,249 for Single Family Attached Property. Ho wever, if the Expected Residential L ot Count does not equal 87 for Single Family Detached Property or 137 for Single Fa mily Attached Prope rty, and the City has not is sued 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
274

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 adjustme nt to the number of Designated Buildable L ots, then the Backup Special Tax for all Designated B uildable Lots of Sin gle Family Detached Property and Single Family Attached Property subj ect 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 determi ned in Step 1 by the
number of Designated Bui ldable 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 de termined in Step 2 as the
Backup Special Tax per Unit for Sin gle Family
Detached Property and Single Family Attached
Property.

The Backup Special Tax for an Assessor’s Parce l shall not change once an Assessor’s Parce l is classified as Developed Property.

b. Final Mapped Pr operty, Taxable Public Pro perty, Taxable Property Owner Association Property, and Undeveloped Property

The M aximum 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, therefor e, shall remain the same in every Fiscal Year.
275

City of Ontario CFD No. 63 11 February 16, 2022

2. Multiple Land Use Classes on an Assessor’s Parcel

In some instances an Assessor’s Parc el of Developed Property may contain more than one Land Use Class. The Maximum Special Tax levied on such Assessor’s Parcel shal l be the sum of the Maximum Special T ax for all Uni ts of Sin gle Family Property and Acre s of Other Residen tial Property and Non-Residential Property (based on th e pro rata share of Square Footage between O ther Residential Property and Non- Residential Pro perty, accord ing 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 Fisca l 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 th e 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 Map ped Property up to 100% of the Maximum Special Tax for Final Mapped Property;

Third: If additional monies a re needed to satisfy the Special Tax Requirement after the first two steps have been completed, then the Special Tax shall be levied Proportionatel y on each Assessor’s Parcel of Undeveloped Property up to 100% of t he 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 Pro perty whose M aximum Special Tax is d etermined through the application of the Backup Special Tax shall be increased Propor tionately from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor’s Parcel;

Fifth: If additional m onies are needed to satis fy 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 t he 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.

276

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 Resi dential Property for which an occupancy pe rmit for private resident ial u se has been issued be increased as a result of delinquency or default by the owner or owners of any other Assessor’s Parcel or As sessor’s Parcels within CFD No. 63 by more than ten per cent above the amount that would have been levied in that Fiscal Ye ar had there never been any such delinquencies or defaults.

E. EXEMPTIONS

No Special Tax shall be levied on up to 3.23 Acres of Publ ic Property and up to 5.45 Acres of Proper ty Owner Association Property. Tax- exempt status will be a ssigned by the CFD Adminis trator in the chronological order in which property becomes Public Property or Property Owner Association Property.

Property Ow ner Association Property or Public Propert y 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 Ma ximum Speci al 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.

No Special Tax shall be levied on L ower Income Household W elfare Exemption Property; provided, however, that if, in any Fiscal Year, applicable law does not require that Lower Inc ome Household Welfare Exemption Pr operty be exempt from som e portion, or all, of the Special Tax, such portion, or a ll, of the Special Tax shall be levied on such property in accordanc e 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 app eal of the Sp ecial Tax with CFD No. 63 claiming that the amoun t or application of the Special Tax is not correct. The appeal must be filed not later than one calendar year after having paid the S pecial Tax that is disputed, and the appellant must be current in all payments of Special Taxes. In addition, during the term of the appeal proc ess, all Special Taxes levied must be paid o n 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 re view the appeal, meet w ith the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination.

If the property owner disagrees wi th the CFD Administrator’s decision rela tive to the appeal, the owner may then file a wri tten appeal with the City Council whose subsequent decision shall be final and binding on al l interested parties. If the decisio n 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 owne r, then the CFD Administrator shall 277

City of Ontario CFD No. 63 13 February 16, 2022
determine if sufficient Special T ax revenue is available to make a cas h refund. If a cash refund cannot be made, then an adjustment shall be made t o cr edit future Special Tax levy(ies).

This procedure shall be exclusiv e and its exhaustion by any property owner s hall be a condition precedent to filing any legal action by such owner.

G. MANNER OF COLLECTION

The Special Tax shall be collected in t he 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 th e 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 Publ ic Facilities minus (i) Facilities and Services costs previously paid from the Expenditures Fund during the Prepayment Period in which the pre payment is being made , (ii) moneys current ly on deposit in t he Expenditures Fund from deposits made during the Pre payment Pe riod in which the prepayment is being made , and (iii) moneys c urrently on deposit in an escrow fund that are expected to be availabl e 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 pre payment may be made only for Assessor’s Parcels for which a building permit for new construction was issued after January 278

City of Ontario CFD No. 63 14 February 16, 2022
1, 2021, and only if ther e are no delinquent Special Taxes with re spect 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 w ritten notice of intent to prepay. Within 30 days of receipt of such wr itten notice, the CFD Admin istrator 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 dat e that notice of redemption of Bonds from t he 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 pre payment, the Special Tax Prepayment Amount (defined below) shall be calculated by the CFD Administrator as follows:

Paragraph No.

1. Confirm that no Spe cial Tax delinquenc ies apply to such Assessor ’s Parcel, and determine the Prepayment Period for the proposed prepayment.

2. Compute the Assigned Special Tax and Backup S pecial Tax for the Assessor’s Parcel to be prepaid based on the Developed Property Spe cial Tax which is, or could be, charged in th e curren t 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 Para graph 2 by the total estimate d Assigned Special Tax for CFD No. 63 based on the Developed Property Special Tax which could be charged in the current Fiscal Ye ar 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.
279

City of Ontario CFD No. 63 15 February 16, 2022

4. Multiply the la rger quotient computed pu rsuant to Par agraph 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 pursua nt to Paragra ph 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 Redem ption Amount from the first bond inter est and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds.

9. Determine the Sp ecial Tax levied on the Assessor’s Parcel in the current Fis cal Year which has not yet been paid.

10. Add the amounts computed pursuant to Parag raphs 8 and 9 to de termine 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”).

12. If reserve funds for the O utstanding Bonds, if any, are at or a bove 100% of the reserve requirement (as defi ned in the Indenture) on the pre payment date, a reserve fun d credit shall be calculated as a reduction i n the applicable reserve fund for the Outstanding Bonds to be redeemed pursuant to the prepayment (the “Reserve Fund Credit ”). No Reserve Fund Credit s hall be granted if reserve funds are below 100% of the rese rve 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”).

14. From the Prepayment Amount, the am ounts computed pursuant to Paragraphs 4, 5, 10, and 12 shall be deposi ted into the appropriate fund as establ ished under the Indenture and be used to reti re Outstanding Bonds or make d ebt 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.

280

City of Ontario CFD No. 63 16 February 16, 2022
The Special Tax Pre payment 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, w ill be retained in the ap propriate fund established under the Inde nture 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 Par cel 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 p repaid during Prepayment Period 1 or Prepayment Period 2, the obligation of such Assessor’s Parcel to pay the Special Tax shall be t olled, or suspended, through the end of such Prepayment Period, but shal l resume in the first Fiscal Year of the subs equent 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 satis fied for the remainder of the applicable Prepayment Period but h as not been permanently sa tisfied and the obligation to pay the Special Tax will resume in the first Fisc al Year of the Prepay ment Period following the Prepayment Peri od 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 t he foregoing, no Special Tax prepayment shall be all owed 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 Prope rty) both pri or to and after the proposed prepayment i s at least 1.1 times the maximum annual debt service on all Outstanding Bonds.

2. Prepayment in Part

The Special T ax on an Assessor’s Par cel for which a building permit for new construction was issued after January 1, 2021, may be partially prepaid. T he amount of the prepaymen t shall be calculated as in Section H .1, excep t that a partial p repayment 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 prepa yment) 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 Parce l(s) is partially prepaying the Special Tax
281

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 Assess or’s Parcel w ho desires such prepayment shall notify t he CFD Administrator of su ch owner’s intent to partially prepay the Special Tax and the percentage by which the Special Tax shall be prepaid . Th e CFD Administrator shall provide the owner with a statement of the amo unt required for the partial prepayment of the Special Tax for an Assessor’s Parcel within thirty (30) days of the request and m ay charge a fee for providing this service. With respect t o any Assessor’s Parcel that is partially prepaid, the CFD Administra tor s hall (i) distribute the remitted prepayme nt funds according to Sect ion H.1, and (ii) indicate in the records of C FD No. 63 that there has been a partial prepayment of the Special Tax and that a portion of t he 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 le vied on such Assessor’s Parcel pursu ant to Section D during t he Prepayment Period i n which the partial prepayment is made.

For partial prepayments made during Prepayment Perio d 1 or Prepayment P eriod 2, the full amount of the Special Tax shall resum e in t he first Fiscal Year of the Prepayment Period following the Pre payment Period in which the partial prepay ment 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 afte r which no further Spec ial Tax shall be le vied or collected is Fiscal Year 2122-2123, except that the Special Tax that was lawfully levied in or bef ore such Fiscal Year and that remains delinquent may be collected in subsequent years.

282

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 Spec ial Tax and the Backup Speci al Tax for Developed Property within CFD No. 63 has been modified.

a. The information in Table 1 relat ing 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 Ta x for Develo ped P roperty, 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
283

EXHIBIT 1

CERTIFICATE OF MODIFICATION OF SPECIAL TAX
(PAGE 2 OF 2)

The Backup Special Tax shall be $[____] per Unit for Single Family Detached Prop erty and $[____] pe r Unit for Single Family A ttached Property. However, if the Expected Residential L ot Count does not equ al 87 for Single Family Detached Property or 137 for Single F amily Attached Property, and the City has not issued Bonds, then the Bac kup Special Tax for Designated Buildable Lots of Single Family Property shall be calculated separately f or Single Family Detached Property and Single Family Attached Property according to the following formula:

Backup Special Tax = $[______] ÷ Expected Re sidential
Lot Count for Single F amily
Detached Property

or $[______] ÷ Expected Residential Lot
Count for Single Family Attached
Property

2. The Special Tax for Developed Property may only be modif ied prior to the f irst issuance of CFD No. 63 Bonds.

3. Upon execution of t his certificate by CFD N o. 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.

Capitalized u ndefined terms used herein have the meanings ascribed there to 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 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:______________________ 284
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.
286
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 May 3, 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 May 3, 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 May 3, 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 May 3, 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.
287
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 3rd day of May 2022. _____________________________________
PAUL S. LEON, MAYOR
ATTEST:
____________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
____________________________________

BEST BEST & KRIEGER, LLP

CITY ATTORNEY
288

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
289
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 May 3, 2022 and waiving any impartial analysis, arguments or rebuttals, as set forth in Sections 53326 and 53327 of the Act; and 290
WHEREAS, the City Clerk has concurred in said waivers and has concurred in holding said special election on May 3, 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 May 3, 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 May 3, 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 291
establish an appropriations limit for the Community Facilities District, which election shall be held at 303 East B Street, Ontario, California, on May 3, 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.

The voted ballots shall be returned to the City Clerk not later than 7:30 p.m. on May 3, 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 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 May 3, 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.
292
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 3rd day of May 2022. _____________________________________
PAUL S. LEON, MAYOR
ATTEST:
____________________________________

SHEILA MAUTZ, CITY CLERK
293
APPROVED AS TO FORM:
____________________________________

BEST BEST & KRIEGER, LLP

CITY ATTORNEY
294

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
295

EXHIBIT A

OFFICIAL BALLOT

CITY OF ONTARIO
May 3, 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. 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 May 3, 2022? Yes:
No:
296
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 May 3, 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 May 3, 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 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 53328, Section 53355 and Section 53325.7 of the Act.

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.
297
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 3rd day of May 2022. _____________________________________
PAUL S. LEON, MAYOR
ATTEST:
____________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
____________________________________

BEST BEST & KRIEGER, LLP

CITY ATTORNEY
298

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
299

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 May 3, 2022, I canvassed the returns of the special election held on May 3, 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, May 3,
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 May 3, 2022?
IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND this 3rd day of May 2022.

BY:

SHEILA MAUTZ, CITY CLERK
300
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 301
the Resolution of Formation (the “Rate and Method of Apportionment”). The special taxes 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
302
ATTEST:
_________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
_______________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY
303

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)
304

Ontario City CouncilMay 3, 2022

Ontario City Council
May 3, 2022