Agenda packet — Ontario City Council, April 15, 2025 (part 1 of 5)

CITY OF ONTARIO
Regular City Council/Housing
Authority/Ontario Public Financing Authority
Meeting
APRIL 15, 2025
City Hall
303 East B Street, Ontario, CA 91764

MAYOR PAUL S. LEON • MAYOR PRO TEM ALAN D. WAPNER
COUNCIL MEMBERS JIM W. BOWMAN, DEBRA PORADA AND DAISY MACIAS CITY CLERK SHEILA MAUTZ • TREASURER JAMES R. MILHISER
CITY MANAGER SCOTT OCHOA • CITY ATTORNEY RUBEN DURAN

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

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

All
comments received by the deadline will be forwarded to the City Council for consideration before action is taken on the matter and will be entered into the record.

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

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

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

CITY OF ONTARIO Regular City Council/Housing Authority/Ontario Public Financing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 1

ATTACHMENT:

20250415 Closed Session

ACCOMMODATIONS

If you need special assistance or accommodations to participate in this meeting, please contact the City Clerk's office at 909-395-2009. Notification of 48 hours prior to the meeting will help the City make reasonable arrangements. Equipment for the hearing impaired is available in the Records Management Office.

ORDER OF BUSINESS

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

CALL TO ORDER
(OPEN SESSION)

ROLL CALL

Wapner, Bowman, Porada, Macias, Mayor/Chairman Leon

INFORMATION RELATIVE TO POSSIBLE CONFLICT OF INTEREST
Agenda item contractors, subcontractors and agents may require member abstentions due to conflict of interests and financial interests. Council Member abstentions shall be stated under this item for recordation on the appropriate item.

CLOSED SESSION PUBLIC COMMENT

The Closed Session Public Comment portion of the Council/Housing Authority meeting is limited to matters appearing on the Closed Session. Additional opportunities for further Public Comment will be given during and at the end of the meeting.

CLOSED SESSION
GC 54956.9 (e)(5), CONFERENCE WITH LEGAL COUNSEL, ANTICIPATED LITIGATION:

Signiﬁcant exposure to litigation; a copy of the documented threat is available in the oﬃce of the City Clerk.

PLEDGE OF ALLEGIANCE
CITY OF ONTARIO Regular City Council/Housing Authority/Ontario Public Financing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 2 Mayor pro Tem Wapner

INVOCATION
Pastor Richard Hernandez, The Church of God

REPORT ON CLOSED SESSION
City Attorney

SPECIAL CEREMONIES

SOUTHERN CALIFORNIA EDISON SCHOLARSHIP AWARD PRESENTATION TO LEONARDO CASTRO

ONTARIO POLICE DEPARTMENT PRESENTATION
PUBLIC COMMENTS 6:30 P.M.

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

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

AGENDA REVIEW/ANNOUNCEMENTS

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

CONSENT CALENDAR

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

CITY OF ONTARIO Regular City Council/Housing Authority/Ontario Public Financing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 3

1. APPROVAL OF MINUTES

ATTACHMENT:

20250318 Meeting Minutes (Not Official Until Approved)

2. BILLS & PAYROLL

3. ONTARIO BUSINESS ASSISTANCE LOAN PROGRAM GUIDELINES AND APPLICATION

ATTACHMENT:

Resolution Approving Business Assistance Loan Agreement 01^RESO^RM

ATTACHMENT:

Business Assistance Loan Program Guidelines [Final] EXH A^02

ATTACHMENT:

City of Ontario - Business Assistance Loan Program Agreement EXH B^03

4. AMENDMENT TO THE DOWNTOWN ONTARIO RESTAURANT AND BREWERY EQUIPMENT

REBATE PROGRAM

ATTACHMENT:

20250218 Downtown Equipment Rebate Program Loan Agmt^02.docx

ATTACHMENT:

20250401_Amended Downtown Equipment Rebate Program^01.pdf

5. AUTHORIZE THE PURCHASE OF CHARGEPOINT ELECTRIC VEHICLE CHARGERS FOR THE CITY HALL PARKING STRUCTURE WITH BODEV, INC.

Minutes for the regular meetings of the City Council and Housing Authority of March 18, 2025, and approving same as on file in the Records Management Department.

Bills March 7, 2025 through March 27, 2025, and Payroll February 23, 2025 through March 8, 2025.

That the City Council approve the adoption of the Ontario Business Assistance Loan Program Guidelines; and authorize the City Manager, or his designee, to make any necessary adjustments and execute all necessary documents to implement the loan program.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING A BUSINESS ASSISTANCE LOAN PROGRAM.

That the City Council approve the amendment to the Downtown Ontario Restaurant and Brewery Equipment Program; and authorize the City Manager and/or his designee to execute any documents related to this program.

That the City Council take the following actions:

A
.

Authorize a cooperative purchase agreement for D&C22-012 City Hall Parking Structure with BodEV, Inc., of La Habra, California, for the purchase of ChargePoint electric vehicle (EV) chargers for the City Hall Parking Structure in the amount of $559,482 plus a contingency amount of $56,000 for a for a total contract amount not-to-exceed $615,482 consistent with the terms and conditions of the Sourcewell Contract Number 032124- ELV; and
B
.

Authorize the City Manager, or his designee, to execute all documents required for the completion of the project including, but not limited to agreements, assessments, CITY OF ONTARIO Regular City Council/Housing Authority/Ontario Public Financing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 4

ATTACHMENT:

Goods and Services Agreement-
BodEV, Inc.pdf

6. APPROVAL OF VARIOUS PROFESSIONAL SERVICES AGREEMENTS TO PROVIDE SPECIAL TAX

CONSULTING AND ADMINISTRATIVE SERVICES, COMMUNITY FACILITIES DISTRICT

FORMATION AND BOND COUNSEL SERVICES, APPRAISAL AND HOUSING MARKET

ECONOMIST SERVICES

ATTACHMENT:

Special Tax Consultant^01 Goodwin Agreement.pdf

ATTACHMENT:

Special District Consultant^02 Willdan Agreement.pdf

ATTACHMENT:

CFD Formation and Bond Counsel^03 Orrick, Herrington, and Sutcliffe Agreement

ATTACHMENT:

Housing Market Economist^04 Empire Agreement.pdf

ATTACHMENT:

Appraisal^05 Kitty Agreement.pdf

7. AN AMENDMENT TO THE CONSTRUCTION CONTRACT WITH G.M. SAGER CONSTRUCTION INC. FOR ON-CALL AND EMERGENCY UTILITY TRENCH PAVING SERVICES

ATTACHMENT:

MAS with GM Sager Amendment No. 2^02.pdf

8. APPROVAL OF A SOLE SOURCE PURCHASE TO PROVIDE A CUSTOM DESIGNED DRONE

SHOW FOR TWO ANNUAL EVENTS

ATTACHMENT:

Grizzly Contract CITY OF ONTARIO - 04JUL25.pdf

ATTACHMENT:

Grizzly Entertainment Quote for Holiday Tree Lighting Dec 2025.pdf

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

COUNTY TAX ROLLS
easements, reduction of retention accounts, contracts amendments within the authorization limits, and ﬁling a notice of completion at the conclusion of all construction related activities.

That the City Council approve and authorize the City Manager or designee to execute the various Professional Services Agreements for special tax consulting, community facilities district formations and costs associated with bond issuances. Proposed agreements are with Goodwin Consulting Group of Sacramento, California; Willdan Financial Services of Temecula, California; Orrick, Herrington & Sutcliﬀe, LLP of Los Angeles, California; Empire Economics, Inc. of Capistrano Beach, California; and Kitty Siino and Associates of Tustin, California.

That the City Council approve and authorize the City Manager, or designee, to execute Amendment No. 2 to the On-Call Services Contract with G.M. Sager Construction Inc., of Pomona, California, for On-Call and Emergency Utility Trench Paving services for a revised total not-to-exceed aggregate amount of $2,035,170 and a term from September 6, 2022 through June 30, 2026.

That the City Council approve Grizzly Entertainment, LLC of Palm Springs, CA as the sole source vendor to provide a custom designed drone show for the annual Independence Day and Holiday Tree Lighting celebrations.

That the City Council adopt a Resolution for recovery of fees and costs incurred in abating property and dangerous building violations, as well as administrative citations and civil CITY OF ONTARIO Regular City Council/Housing Authority/Ontario Public Financing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 5

ATTACHMENT:

20250415 Comm Imp Special Assessments for County Tax Rolls 01^RESO^RM.docx

ATTACHMENT:

20250415_Special Assessments^02 - Exhibit A.pdf

ATTACHMENT:

20250415_Special Assessments^02 - Exhibit B.pdf

ATTACHMENT:

20250415_Special Assessments^02 - Exhibit C.pdf

10. A GOODS AND EQUIPMENT PURCHASE AGREEMENT WITH DE NORA WATER

TECHNOLOGIES, LLC FOR THE PURCHASE OF WATER DISINFECTION EQUIPMENT AND AN

AMENDMENT TO THE GOODS AND EQUIPMENT PURCHASE AGREEMENT WITH D&H WATER

SYSTEMS FOR THE PURCHASE OF REPLACEMENT PARTS FOR GROUNDWATER WELL

MAINTENANCE

ATTACHMENT:

20250415 GAE with De Nora^01 AGMT.pdf

ATTACHMENT:

20250415 GAE with D&H Amendment 1^02 AGMT.pdf

11. ADOPT A RESOLUTION

AUTHORIZING SIGNATURE AUTHORITY FOR PROJECT AGREEMENTS

AND DOCUMENTS FOR THE
EUCLID RECYCLED WATER PROJECT AND WELL 50 TREATMENT

FACILITY WITH THE UNITED STATES ARMY CORPS OF ENGINEERS penalties associated with property maintenance violations and placing assessments on the San Bernardino County Tax Rolls.

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

REPORT REQUESTING THE PLACEMENT OF SPECIAL ASSESSMENTS ON PROPERTY TAX BILLS

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

The City Council take the following actions:

A
.

Authorize the City Manager, or designee, to execute a Goods and Equipment Purchase Agreement with De Nora Water Technologies, LLC (De Nora) of Sugar Land, Texas, for the purchase of water disinfection equipment and replacement parts for a total not-to- exceed amount of $1,416,076.

B
.

Authorize the City Manager, or designee, to execute Amendment No. 1 to the Goods and Equipment Purchase Agreement with D&H Water Systems of Oceanside, California, to amend the Agreement by $274,849 for a revised total not-to-exceed amount of $310,005.

That the City Council adopt a Resolution authorizing the City Manager, or his designee, to negotiate and execute all related project documents, including applications, agreements, project certiﬁcations and project-related documents with the United States Army Corps of Engineers (USACE), to design and construct the Euclid Avenue Recycled Water Project and the Well 50 Ion Exchange Treatment Facility.

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

THE CITY MANAGER TO NEGOTIATE AND SIGN PROJECT PARTNERSHIP AGREEMENTS FOR THE EUCLID RECYCLED WATER PROJECT AND WELL 50 TREATMENT FACILITY WITH THE UNITED STATES ARMY CORPS OF ENGINEERS.

CITY OF ONTARIO Regular City Council/Housing Authority/Ontario Public Financing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 6

ATTACHMENT:

20250415 Signing Authority Resolution 01^RESO^RM

12. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, LEVYING SPECIAL TAXES WITHIN CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 73 (WILDFLOWER ACRES)

ATTACHMENT:

CFD 73 Wildflower Acres Ordinance 01^ORD^RM

13. AUTHORIZE A CHANGE ORDER TO THE CONSTRUCTION CONTRACT WITH PHILBIN

CONSTRUCTION COMPANY FOR THE DEBRIS REMOVAL AND FINE GRADING FOR ONTARIO'S GRAND PARK PHASE 1 PROJECT

ATTACHMENT:

Change Order No. 2- Philbin Construction Co..pdf

14. AN AMENDMENT TO THE GOODS AND SERVICES AGREEMENT WITH SOUTHERN TIRE MART, LLC. FOR TIRE REPAIR, RETREADING, AND OTHER TIRE RELATED ITEMS

ATTACHMENT:

Southern Tire Mart, LLC_Amendment No.1.pdf

15. A CONSTRUCTION CONTRACT WITH LEONIDA BUILDERS FOR THE DOWNTOWN BOLLARDS

INSTALLATION PROJECT
That the City Council consider and adopt an Ordinance authorizing the levy of special taxes within City of Ontario Community Facilities District No. 73 (Wildflower Acres).

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, LEVYING A SPECIAL TAX WITHIN THE CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 73 (WILDFLOWER ACRES).

That the City Council take the following actions:

A
.

Authorize the City Manager, or his designee, to execute Change Order No. 2 to the Construction Contract with Philbin Construction Company, of Laguna Niguel, California for the debris removal and fine grading of Ontario’s Grand Park Phase 1 in the amount of $11,990,790 for a total contract amount of $17,420,243 plus a contingency of $2,409,507 to address any unforeseen issues that may arise during the demolition for a total not-to- exceed contract amount of $19,829,750; and
B
.

Authorize the City Manager, or his designee, to execute all documents required for the completion of the project which may include, but is not limited to agreements, assessments, easements, lot line adjustments, reduction of retention accounts, contracts and contract amendments within the authorization limits, and ﬁling a notice of completion at the conclusion of all construction related activities.

That the City Council authorize the City Manager, or his designee, to execute Amendment No. 1 to the Goods and Services Agreement with Southern Tire Mart, LLC., of Columbia, Mississippi, for tire repair, retreading, and other tire related items in the amount of $1,040,000, bringing the new total not-to-exceed contract amount to $1,190,000. Additionally, authorize the option to extend the Agreement for up to three (3) additional one-year terms.

CITY OF ONTARIO Regular City Council/Housing Authority/Ontario Public Financing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 7

ATTACHMENT:

Construction Contract- Leonida Builders.pdf

16. AN AMENDMENT TO THE DESIGN SERVICES AGREEMENT WITH FREDERICK FISHER

PARTNERS, ARCHITECTS FOR THE NORTH WING GALLERY, WELCOME DESK, AND

ELECTRICAL INFRASTRUCTURE UPGRADE FOR THE ONTARIO MUSEUM OF HISTORY AND ART

ATTACHMENT:

Amendment No. 1- Frederick Fisher Partners.pdf

17. A CONSTRUCTION CONTRACT WITH KRESSA, LLC. FOR THE HOMER BRIGGS PARK

CONCESSION RENOVATION PROJECT

ATTACHMENT:

Construction Contract- Kressa, LLC.pdf

18. A GOODS AND EQUIPMENT PURCHASE AGREEMENT WITH MCLAUGHLIN WASTE EQUIPMENT, INC. FOR COMMERCIAL BIN PARTS
That the City Council authorize the City Manager or his designee to execute a Construction Contract with Leonida Builders, of Santa Clarita, California, for the Downtown Bollards Installation Project for a contract amount of $294,500 plus a 10% contingency of $29,450 for a total contract amount not-to-exceed $323,950.

That the City Council take the following actions:

A
.

Authorize the City Manager, or his designee, to execute Amendment No. 1 to the Design Services Agreement with Frederick Fisher Partners, Architects, of Los Angeles, California, to provide on-call design services for the North Wing Gallery, welcome desk, and electrical infrastructure upgrade for the Ontario Museum of History and Art (OMHA) in the amount of $186,709 for a total not-to-exceed contract amount of $436,709; and B
.

Authorize the City Manager, or his designee, to execute all documents required for the completion of the project which may include, but is not limited to agreements, assessments, easements, reduction of retention accounts, contract amendments within the authorization limits, and ﬁling a notice of completion at the conclusion of all construction related activities.

That the City Council take the following actions:

A
.

Authorize the City Manager, or his designee, to execute a Construction Contract with Kressa, LLC, of West Covina, California, for the Homer Briggs Park Concession Renovation Project in the amount of $174,150 plus a 10% contingency of $17,415 to address any unforeseen issues that may arise during the construction for a total not-to- exceed contract amount of $191,565; and
B
.

Authorize the City Manager, or his designee, to execute all documents required for the completion of the project which may include, but is not limited to agreements, assessments, easements, reduction of retention accounts, contract amendments within the authorization limits, and ﬁling a notice of completion at the conclusion of all construction related activities.

That the City Council authorize the City Manager, or his designee, to execute a Goods and CITY OF ONTARIO Regular City Council/Housing Authority/Ontario Public Financing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 8

ATTACHMENT:

Goods and Equipment Purchase Agreement- McLaughlin Waste Equipment, Inc..pdf

19. AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH PHOENIX GROUP

INFORMATION SYSTEMS REFERENCE PROCESSING SERVICES FOR POLICE PARKING

CITATIONS, FIRE AND COMMUNITY IMPROVEMENT ADMINISTRATIVE CITATIONS, AND

FALSE ALARM PROGRAM

ATTACHMENT:

002 Amendment No. 1 Phoenix Group 2025
Exhibit A.pdf

20. A DEVELOPMENT AGREEMENT (FILE NO. PDA23-005) BETWEEN THE CITY OF ONTARIO AND

DIVERSIFIED PACIFIC DEVELOPMENT GROUP, LLC IN CONJUNCTION WITH THE EMPIRE GROVES SPECIFIC PLAN (FILE NO. PSP23-001)
Equipment Purchase Agreement with McLaughlin Waste Equipment, Inc., of Canyon Country, California, for the purchase of commercial bin parts for a total contract amount not-to-exceed $1,000,000 for up to five (5) years.

That the City Council authorize the City Manager, or his designee, to execute Amendment No. 1 to the Professional Services Agreement for citation services with Phoenix Group Information Systems, based in Santa Ana, California. This amendment will extend the optional two additional one-year terms and increase the authorized contract amount by $250,000, resulting in a total not-to-exceed contract amount of $1,000,000.

That the City Council consider and adopt:

A
.

An Ordinance for a Development Agreement (File No. PDA23-005) between the City of Ontario and Diversiﬁed Paciﬁc Development Group, LLC to establish terms and conditions for the associated Development Plan (File No. PDEV23-039); B
.

An Ordinance for the Empire Grove Speciﬁc Plan (File No. PSP23-001) to establish the Land Use District, development standards, guidelines, and infrastructure improvements.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PDA23-005, A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF ONTARIO AND

DIVERSIFIED PACIFIC DEVELOPMENT GROUP, LLC, TO ESTABLISH THE TERMS AND CONDITIONS ASSOCIATED WITH A DEVELOPMENT PLAN (FILE NO. PDEV23-039), FOR A 10.43 ACRE

PROPERTY LOCATED ON THE SOUTHEAST CORNER OF GUASTI ROAD AND HOLT BOULEVARD WITHIN THE PROPOSED PA1 (HOSPITALITY MIXED-USE) DISTRICT OF THE EMPIRE GROVES SPECIFIC PLAN, AND MAKING FINDINGS IN SUPPORT THEREOF—APN: 110-322-33.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PSP23-001, A SPECIFIC PLAN (EMPIRE GROVES) TO ESTABLISH THE LAND USE

DISTRICT, DEVELOPMENT STANDARDS, GUIDELINES, AND INFRASTRUCTURE IMPROVEMENTS FOR THE DEVELOPMENT OF UP TO 600,000 SQUARE FEET OF HOSPITALITY AND COMMERCIAL LAND USES ON 10.43-ACRES OF LAND LOCATED ON THE SOUTHEAST CORNER OF GUASTI ROAD AND HOLT BOULEVARD AND MAKING FINDINGS IN SUPPORT THEREOF—APN: 110-322-

33. CITY OF ONTARIO Regular City Council/Housing Authority/Ontario Public Financing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 9

ATTACHMENT:

20250415 File No. PDA23-005 PSP23-001 EmpireGrovesSP DA 03^ORD^RM

ATTACHMENT:

20250415 File No. PDA23-005_PSP23-001_Empire Groves SP^04 DA Final.pdf

ATTACHMENT:

20250415 File No. PDA23-005 PSP23-001 EmpireGrovesSP
05^ORD^RM

ATTACHMENT:

20250415 File No. PDA23-005_PSP23-001_EmpireGrovesSP ^06 Attach A SP Final.pdf

21. AUTHORIZATION TO ESTABLISH AND IMPLEMENT A REDEMPTION PROGRAM FOR UNUSED

NEW MODEL COLONY DEVELOPMMMENT IMPACT FEE (DIF) CERTIFICATES IN

ACCORDANCE WITH UNDERLYING AGREEMENTS AND APPLICABLE LAW

22. A PUBLIC HEARING TO CONSIDER A PLANNED UNIT DEVELOPMENT (FILE NO. PUD24-002)
FOR A DEVELOPMENT PLAN TO CONSTRUCT 144-UNIT MULTIPLE-FAMILY RESIDENTIAL

APARTMENT COMPLEX

ATTACHMENT:

File No. PUD24-002^01 PC Back-up.pdf

ATTACHMENT:

File No. PUD24-002 PUD 02^ORD^RM

ATTACHMENT:

File No. PUD24-002^03 PUD Document.pdf
That the City Council, by minute action, authorize the City Manager or his designee(s) to establish and implement an administrative program under which unused and/or unredeemed DIF certiﬁcates for public infrastructure built to support the development in the Ontario Ranch area may be redeemed by bona ﬁde certiﬁcate holders in amounts supported by veriﬁed documentary evidence and applicable requirements of law and contract.

PUBLIC HEARINGS

Pursuant to Government Code Section 65009, if you challenge the City’s zoning, planning or any other decision in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council at, or prior to the public hearing. Affidavits of posting compliance, for all items below, are on file with the Records Management Department.

That the City Council introduce and waive further reading of an Ordinance Approving a Planned Unit Development, File No. PUD24-002, establishing development standards and guidelines to facilitate the development of a 144-unit residential apartment project.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PUD24-002, A PLANNED UNIT DEVELOPMENT TO CREATE DEVELOPMENT STANDARDS AND DESIGN GUIDELINES FOR A DEVELOPMENT PLAN TO CONSTRUCT 144-UNIT MULTIPLE- FAMILY RESIDENTIAL APARTMENT COMPLEX ON APPROXIMATELY 5.73 ACRES OF LAND

LOCATED NEAR THE NORTHEAST CORNER OF EAST HOLT BOULEVARD AND ALLYN AVENUE WITHIN THE MU-6 (EAST HOLT MIXED USE) ZONING DISTRICT, AND MAKING FINDINGS IN SUPPORT THEREOF—APN: 1048-481-06, 1048-481-07, 1048-481-08, 1048-481-28, 1048-481-29 CITY OF ONTARIO Regular City Council/Housing Authority/Ontario Public Financing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 10

23. RESOLUTIONS AUTHORIZING THE ISSUANCE OF LEASE REVENUE BONDS, SERIES 2025A

AND RELATED MATTERS

ATTACHMENT:

2025 Lease Revenue Bonds Approval to Issue Bonds CITY
01^RESO^RM

ATTACHMENT:

2025 Lease Revenue Bonds Approval to Issue Bonds OPFA
02^RESO^RM

ATTACHMENT:

2025 Lease Revenue Bonds^03 Ground Lease.pdf

ATTACHMENT:

2025 Lease Rev Bonds^04 Lease Agreement.pdf
Hold public hearing and that the City Council and the Ontario Public Financing Authority take the following actions:

A
.

City Council consider and adopt a Resolution authorizing the execution and delivery of a Ground Lease, Lease Agreement, Indenture, Bond Purchase Agreement and Continuing Disclosure Certiﬁcate in connection with the issuance and sale of the Lease Revenue Bonds, Series 2025A, by the Ontario Public Financing Authority in an aggregate principal amount not to exceed $250 million and authorizing the distribution of an Oﬃcial Statement in connection with the oﬀering and sale of the Bonds and authorizing the execution and delivery of necessary documents in connection therewith.

B
.

Ontario Public Financing Authority consider and adopt a Resolution authorizing the execution and delivery of a Ground Lease, Lease Agreement, Indenture, Bond Purchase Agreement and Assignment Agreement in connection with the issuance of its Lease Revenue Bonds, Series 2025A, in an aggregate principal amount of not to exceed $250 million and authorizing the distribution of an Oﬃcial Statement in connection with the oﬀering and sale of the Bonds and authorizing the execution and delivery of necessary documents in connection therewith.

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

THE EXECUTION AND DELIVERY OF A GROUND LEASE, LEASE AGREEMENT, INDENTURE, BOND

PURCHASE AGREEMENT AND CONTINUING DISCLOSURE CERTIFICATE IN CONNECTION WITH THE ISSUANCE OF ONTARIO PUBLIC FINANCING AUTHORITY 2025A LEASE REVENUE BONDS,

APPROVING THE ISSUANCE OF SUCH BONDS IN AN AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $250,000,000, AUTHORIZING THE DISTRIBUTION OF AN OFFICIAL STATEMENT IN

CONNECTION WITH THE OFFERING AND SALE OF SUCH BONDS AND AUTHORIZING THE EXECUTION OF NECESSARY DOCUMENTS AND CERTIFICATES AND RELATED ACTIONS.

A RESOLUTION OF THE ONTARIO PUBLIC FINANCING AUTHORITY, OF THE CITY OF ONTARIO,

CALIFORNIA, AUTHORIZING THE EXECUTION AND DELIVERY BY THE AUTHORITY OF A GROUND

LEASE, LEASE AGREEMENT, INDENTURE, BOND PURCHASE AGREEMENT AND ASSIGNMENT

AGREEMENT IN CONNECTION WITH THE ISSUANCE OF ONTARIO PUBLIC FINANCING AUTHORITY 2025A LEASE REVENUE BONDS, AUTHORIZING THE ISSUANCE OF SUCH BONDS IN AN AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $250,000,000, AUTHORIZING THE

DISTRIBUTION OF AN OFFICIAL STATEMENT IN CONNECTION WITH THE OFFERING AND SALE

OF SUCH BONDS AND AUTHORIZING THE EXECUTION OF NECESSARY DOCUMENTS AND CERTIFICATES AND RELATED ACTIONS.

CITY OF ONTARIO Regular City Council/Housing Authority/Ontario Public Financing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 11

ATTACHMENT:

2025 Lease Revenue Bonds^05 Indenture.pdf

ATTACHMENT:

2025 Lease Rev Bonds^06 Bond Purchase Agreement.pdf

ATTACHMENT:

2025 Lease Rev Bonds^07 Assignment Agreement.pdf

ATTACHMENT:

2025 Lease Revenue Bonds^08 Continuing Disclosure Certificate.pdf

ATTACHMENT:

2025 Lease Revenue Bonds^09 Preliminary Official Statement.pdf

24. APPROVAL OF RESOLUTIONS FOR SALE OF PROPERTY AT 100 BLOCK OF NORTH EUCLID

AVENUE FROM ONTARIO HOUSING AUTHORITY TO CITY OF ONTARIO

ATTACHMENT:

A_Block_-Housing_Authority_Conveyance_to_the_City_RESO_1.docx

ATTACHMENT:

A_Block_City_Accepting_Conveyance_from_OHA_RESO_2.docx

ATTACHMENT:

Exhibit A-Block OHA Parcels Map^3

ATTACHMENT:

20250415 Ontario Housing Authority Loan Amortization Schedule^04

25. RENEWAL OF THE GREATER ONTARIO TOURISM MARKETING DISTRICT That the Ontario Housing Authority and the City Council take the following actions:

A
.

Adopt a Resolution declaring certain Ontario Housing Authority-owned real property at 100 Block of North Euclid Avenue (APN's 1048-553-01,1048-553-05 Through 1048-553- 15) to be exempt surplus land; approve the transfer of real property at 100 Block North Euclid Avenue (APN's 1048-553-01,1048-553-05 Through 1048-553-15) from the Ontario Housing Authority to the City of Ontario; and declare the conveyance of the property exempt from environmental review under the California Environmental Quality Act pursuant to CEQA Guidelines Section 15312.

B
.

Adopt a Resolution approving and accepting the transfer of real property at 100 Block North Euclid Avenue (APN's 1048-553-01,1048-553-05 Through 1048-553-15) from the Ontario Housing Authority to the City of Ontario.

A RESOLUTION OF THE GOVERNING BOARD OF THE ONTARIO HOUSING AUTHORITY, OF THE CITY OF ONTARIO, CALIFORNIA, PURSUANT TO GOVERNMENT CODE SECTION 54221 DECLARING THAT CERTAIN REAL PROPERTY (100 BLOCK NORTH EUCLID AVENUE) IS EXEMPT SURPLUS LAND AND APPROVING THE CONVEYANCE OF 100 BLOCK NORTH EUCLID AVENUE (APNS: 1048 553-01, 1048-553-05 THROUGH 1048-553-15) FROM THE ONTARIO HOUSING

AUTHORITY TO THE CITY OF ONTARIO AND FINDING SUCH ACTION / DECLARATION IS EXEMPT

FROM ENVIRONMENTAL REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO SECTION 15312 OF THE CEQA GUIDELINES.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING THE CONVEYANCE OF 100 BLOCK NORTH EUCLID AVENUE (APNS: 1048-553-01, 1048-553-05 THROUGH 1048 553-15) FROM THE ONTARIO HOUSING AUTHORITY TO THE CITY OF ONTARIO AND APPROPRIATING FUNDS THEREFORE.

ADMINISTRATIVE REPORTS/DISCUSSION/ACTION
That the City Council take testimony and accept public comment that will result in a public CITY OF ONTARIO Regular City Council/Housing Authority/Ontario Public Financing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 12

ATTACHMENT:

The Management District Plan - Attachment 1
hearing on May 20, 2025, on the renewal of the Greater Ontario Tourism Marketing District (GOTMD) and the levy of assessments on lodging businesses, including short-term rentals, located within the boundaries of the GOTMD.

STAFF MATTERS

City Manager Ochoa

COUNCIL MATTERS

BOARD AND COMMISSION APPOINTMENTS

Mayor Leon
Mayor pro Tem Wapner
Council Member Bowman
Council Member Porada
Council Member Macias

ADJOURNMENT
CITY OF ONTARIO Regular City Council/Housing Authority/Ontario Public Financing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 13 1 of 1

CITY OF ONTARIO

CLOSED SESSION REPORT
City Council // Housing Authority // Other // (GC 54957.1) April 15, 2025
ROLL CALL: Wapner _, Bowman _, Porada _, Macias _, Mayor / Chairman Leon _.

STAFF: City Manager / Executive Director __, City Attorney __ In attendance: Wapner _, Bowman _, Porada _, Macias _, Mayor / Chairman Leon _.  GC 54956.9 (e)(5), CONFERENCE WITH LEGAL COUNSEL, ANTICIPATED LITIGATION:

Significant exposure to litigation; a copy of the documented threat is available in the office of the City Clerk.

No Reportable Action Continue Approved
/ / / / / /
Disposition: _________________________________________________________________ Reported by:
___________________________________________
City Attorney / City Manager / Executive Director
14 ONTARIO CITY COUNCIL/

ONTARIO HOUSING AUTHORITY

MINUTES
MARCH 18, 2025
(Not Official Until Approved)
(Not Official Until Approved)(Not official Until Approved)

JOINT MEETINGS

The regular meetings of the Ontario City Council and Housing Authority were held on Tuesday, March 4, 2025 at Ontario City Hall, 303 E. B Street Ontario, California.

OPEN MEETING CALLED TO ORDER

Mayor Leon called the joint meetings to order at 6:00 p.m.

ROLL CALL

PRESENT: Mayor/Chairman: Paul S. Leon
Mayor pro Tem/Vice Chair: Alan D. Wapner
Council/Authority Members: Jim W. Bowman, Debra Porada, and Daisy Macias

ABSENT: Council/Authority Members: None

Also present were City Manager / Executive Director Scott Ochoa, Assistant City Attorney/Legal Counsel Ryan Guiboa, and City Clerk / Secretary Sheila Mautz.

INFORMATION RELATIVE TO POSSIBLE CONFLICTS OF INTEREST

There were no conflicts of interest announced.

CLOSED SESSION

Mayor Leon inquired whether persons were present who wished to speak to the Closed Session items. Hearing no one, Assistant City Attorney Guiboa announced the matters for discussion as listed on the agenda and recessed to Closed Session at 6:01 p.m. for discussion of the following:

GC 54956.9(d)(1), CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION City of Ontario, et al. v. Inland Empire Utilities Agency, Orange County Superior Court Case No. 30-2023-01344236-CU-WM-CJC

GC 54956.9(d)(1), CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION City of Ontario, et al. v. Inland Empire Utilities Agency, Los Angeles Superior Court Case No. 24STCP02321

OPEN MEETING CALLED TO ORDER

Mayor Leon reconvened the meetings at 6:39 p.m. for the regular session. 15 Ontario City Council/Ontario Housing Authority
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PLEDGE OF ALLEGIANCE

The Pledge of Allegiance was led by Council Member Porada.

INVOCATION

Invocation was led by Pastor Richard Hernandez from The Church of God.

REPORT ON CLOSED SESSION

Assistant City Attorney Guiboa announced there was no reportable action.

PUBLIC COMMENT

Assistant City Clerk Isbell announced that there were two written comments:

Lori Masonis, seeking more information regarding Item No. 16.

Esmeralda Garcia-Orosco, seeking more information regarding Item No. 10.

Mayor Leon called upon the first speaker:

Ruben Jaime, spoke regarding homelessness.

Kizzee, spoke regarding homelessness.

Ally Medina, spoke regarding homelessness.

Tina Silva, spoke in opposition to hotel development.

Chris Robles, spoke in opposition to hotel development.

Perry Meade, spoke in opposition to hotel development.

Karen May, spoke in opposition to hotel development
Robert Quezada, spoke regarding homelessness.

Avraham Coutin, spoke on international politics.

Mayor Leon recessed the meetings at 7:03 p.m. and reconvened at 7:05 p.m.

Alfredo Crespo, spoke regarding homelessness.

Jordan Sissa, spoke in opposition to hotel development.

Monica Ibarra, spoke regarding homelessness.

AGENDA REVIEW/ANNOUNCEMENTS

City Manager Ochoa announced the need to pull Public Hearing Item No. 21 from the agenda.

CONSENT CALENDAR

Public Comment:

Mayor Leon called upon the speaker:

Chris Robles, spoke in opposition to Items No. 4, 9, 10, and 15. 16 Ontario City Council/Ontario Housing Authority
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Page 3 of 11 ends

MOTION: Moved by Council Member Bowman, seconded by Council Member Porada and carried by a unanimous vote 5-0, to approve the Consent Calendar as presented.

1. APPROVAL OF MINUTES

Minutes for the regular meetings of the City Council and Housing Authority of February 18, 2025, and cancelled special meeting/study session of February 20, 2025, and approving same as on file in the Records Management Department.

2. BILLS & PAYROLL

Approved bills February 14, 2025 through February 27, 2025, in the amount of $47,234,641.25, and Payroll January 26, 2025 through February 8, 2025 in the amount of $5,584,183.66.

3. A DEVELOPMENT IMPACT FEE CREDIT AGREEMENT (FILE NO. PDIF24-001) BETWEEN THE CITY OF ONTARIO AND AG EHC II (LEN) CA 3, L.P. FOR FACILITY CONSTRUCTION ASSOCIATED WITH TRACT MAP 20536 (FILE NO.

PMTT22-021), LOCATED 875 FEET SOUTH OF THE INTERSECTION OF

RIVERSIDE DRIVE AND ARCHIBALD AVENUE, WITHIN THE COUNTRYSIDE

SPECIFIC PLAN

The City Council authorized the City Manager to execute the Development Impact Fee Credit Agreement (File No. PDIF24-001) between the City of Ontario and AG EHC II (LEN) CA 3, L.P., for facility construction associated with Tract Map 20536 (File No. PMTT22-021), located 875 feet south of the intersection of Riverside Drive and Archibald Avenue, within the Countryside Specific Plan, and authorize the City Manager to execute the Agreement.

4. FY 2024-25 MID-YEAR BUDGET UPDATE

The City Council took the following actions:

A. Approved the budget adjustments and recommendations as presented in the Fiscal Year 2024-25 Mid-Year Budget Update Report (Exhibit A); B. Considered and adopted a Resolution making a declaration of intent to issue tax-exempt obligations; and
C. Approved the updated Purchasing Policies and Procedures Manual

RESOLUTION NO. 2025-006 A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ONTARIO, CALIFORNIA, REGARDING ITS INTENTION TO ISSUE TAX- EXEMPT OBLIGATIONS.

5. A CONSTRUCTION CONTRACT WITH C.I. SERVICES, INC. FOR THE

ARMSTRONG COMMUNITY CENTER ROOF REPLACEMENT PROJECT

The City Council took the following actions:
17 Ontario City Council/Ontario Housing Authority
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Page 4 of 11 ends

A. Authorized the City Manager, or his designee, to execute Construction Contract No. D&C22-014 with C.I. Services, Inc., of Mission Viejo, California, for the Armstrong Community Center Roof Replacement Project in the amount of $681,200 and authorize a 10% contingency of $68,120 for a total not-to-exceed contract amount of $749,320; and
B. Authorized the City Manager, or his designee, to execute all documents required for the completion of the project including, but not limited to, contracts, agreements, assessments, easements, reduction of retention accounts, and filing a notice of completion at the conclusion of all construction related activities.

6. AN AMENDMENT TO A MAINTENANCE SERVICES AGREEMENT WITH BAY

ALARM COMPANY FOR BURGLARY ALARM SERVICES

The City Council approved and authorized the City Manager, or his designee, to execute Amendment No. 11 to the Maintenance Services Agreement with Bay Alarm Company, of Concord, California, for a total not-to-exceed amount of $1,530,547, for the alarm system upgrade, and a term to June 30, 2025.

7. AMENDMENTS TO THE DESIGN SERVICES AGREEMENT WITH HMC

ARCHITECTS FOR THE ONTARIO WELLNESS CAMPUS PROJECT AND THE

ONTARIO ARENA PLAZA PROJECT

The City Council took the following actions:

A. Authorized the City Manager, or his designee, to execute Amendment No. 1 to the Design Services Agreement with HMC Architects, of Ontario, California, to provide On-Call Architectural, Space Planning, and Engineering Design Services for the D&C24-017 Ontario Wellness Campus Project in the amount of $5,377,587 for a total not-to-exceed contract amount of $5,577,587, and
B. Authorized the City Manager, or his designee, to execute Amendment No. 2 to the Design Services Agreement with HMC Architects, of Ontario, California, to provide On-Call Architectural, Space Planning, and Engineering Design Services for the Ontario Arena Plaza Project in the amount of $1,098,740 for a total not-to-exceed contract amount of $6,676,327; and C. Authorized the City Manager or his designee, to execute all documents required for the completion of the project including, but not limited to, contracts, agreements, assessments, easements, reduction of retention accounts and filing a notice of completion at the conclusion of all construction related activities.

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8. AUTHORIZE THE PURCHASE AND INSTALLATION OF CHARGEPOINT ELECTRIC VEHICLE CHARGERS WITH BODEV, INC. FOR THE

PROFESSIONAL BASEBALL STADIUM, PROFESSIONAL BASEBALL

STADIUM PARKING STRUCTURE, AND THE ONTARIO SPORTS EMPIRE

The City Council took the following actions:

A. Authorized a cooperative purchase agreement for D&C23-011 Professional Baseball Stadium with BodEV, Inc., of La Habra, California, for the purchase and installation of ChargePoint electric vehicle (EV) chargers for the Professional Baseball Stadium, Professional Stadium Parking Structure, and the Ontario Sports Empire in the amount of $1,189,758 plus a contingency amount of $119,000 for a total contract amount not-to-exceed $1,308,758 consistent with the terms and conditions of the Sourcewell Contract Number 042221-CPI; and
B. Authorized the City Manager or his designee to execute all documents required for the completion of the project including, but not limited to agreements, assessments, easements, reduction of retention accounts, contracts amendments within the authorization limits, and filing a notice of completion at the conclusion of all construction related activities.

9. A CONSTRUCTION CONTRACT WITH TFN ARCHITECTURAL SIGNAGE, INC.

FOR SIGNAGE AT THE ONTARIO PROFESSIONAL BASEBALL STADIUM

The City Council took the following actions:

A. Authorized the City Manager, or his designee, to execute a Construction Contract with TFN Architectural Signage, Inc., of Placentia, California, to provide signage for Bid No. 1878 - D&C23-011 – Professional Baseball Stadium (Rebid of BC20) in the amount of $1,816,695 and authorize a contingency of $363,339 for a total not-to-exceed contract amount of $2,180,034; and
B. Authorized the City Manager or his designee to execute all documents required for the completion of the project including, but not limited to, contracts, agreements, assessments, easements, reduction of retention accounts, and filing a notice of completion at the conclusion of all construction related activities.

10. AWARD A CONSTRUCTION CONTRACT TO MCCARTHY BUILDING
COMPANIES, INC. FOR DESIGN-BUILD CONSTRUCTION SERVICES FOR THE

VINEYARD PARKING STRUCTURE PROJECT

The City Council took the following actions:

A. Authorized the City Manager, or his designee, to execute a Construction Contract with McCarthy Building Companies, Inc., of Newport Beach, California, to provide design-build construction services for the Vineyard Parking Structure in the amount of $24,990,042 and authorize a contingency of $3,748,506 for a total not-to-exceed contract amount of $28,738,548; 19 Ontario City Council/Ontario Housing Authority
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Page 6 of 11 ends

B. Authorized the City Manager, or his designee, to execute all documents required for the completion of the project including, but not limited to agreements, assessments, easements, lot line adjustments, reduction of retention accounts, contracts and contract amendments within the authorization limits, and filing a notice of completion at the conclusion of all construction related activities.

11. AUTHORIZE A SOLE SOURCE PURCHASE WITH FIRE APPARATUS SOLUTIONS FOR TWO (2) NEW KME FIRE PUMPERS

The City Council authorized the sole source purchase and delivery of two (2) new KME K180 Fire Pumpers from Fire Apparatus Solutions of Rialto, California, in the amount of $1,996,979 plus a 5% contingency in the amount of $99,849 for a total not-to-exceed amount of $2,096,828.

12. A MAINTENANCE SERVICES AGREEMENT WITH HYDROLOGICS, INC. FOR

ON-CALL ZERO DISCHARGE FLUSHING SERVICES

The City Council approved and authorized the City Manager, or designee, to execute a one-year Maintenance Services Agreement with Hydrologics, Inc., of Bosque Farms, New Mexico, for On-Call Zero Discharge Flushing Services in the amount of $600,000 from March 18, 2025 to March 17, 2026, with the option to extend the Agreement for up to four successive one-year periods for a total not-to-exceed amount of $3,000,000.

13. A DESIGN SERVICES AGREEMENT WITH TRIAD CONSULTING AND SYSTEM

DESIGN GROUP LLC FOR SITE SECURITY IMPROVEMENTS

The City Council approved and authorized the City Manager, or designee, to execute a Design Services Agreement with Triad Consulting & Systems Design Group LLC, of Corona, California for design and bid support services for Site Security Improvements for a total amount of $935,904, plus a 15% contingency of $140,386, for a total not-to-exceed amount of $1,076,290, and a term from March 18, 2025 to September 18, 2028.

14. AN ORDINANCE AMENDING CHAPTERS 8B AND 8C OF TITLE 6 OF THE

ONTARIO MUNICIPAL CODE RELATED TO WATER SERVICES AND
RECYCLED WATER, AND ESTABLISHING CHAPTERS 8D AND 8E TO TITLE 6

OF THE ONTARIO MUNICIPAL CODE RELATED TO POTABLE WATER

FACILITIES AND CROSS-CONNECTION CONTROL

The City Council adopted an Ordinance amending Chapters 8B and 8C of Title 6 of the Ontario Municipal Code related to water services and recycled water, and establishing Chapters 8D and 8E to Title 6 of the Ontario Municipal Code related to potable water facilities and cross-connection control. Introduction and first reading took place at a regular meeting on March 4, 2024.

20 Ontario City Council/Ontario Housing Authority
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ORDINANCE NO. 3297 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY

OF ONTARIO, CALIFORNIA, AMENDING, REORGANIZING, AND RECODIFYING CHAPTER 8B OF TITLE 6 OF THE ONTARIO MUNICIPAL CODE PERTAINING TO WATER SERVICES, AMENDING AND RECODIFYING CHAPTER 8C OF TITLE 6 OF THE ONTARIO MUNICIPAL CODE PERTAINING TO RECYCLED WATER USE, ENACTING CHAPTER 8D OF TITLE 6 OF THE ONTARIO

MUNICIPAL CODE PERTAINING TO POTABLE WATER FACILITIES, AND ENACTING CHAPTER 8E OF TITLE 6 OF THE ONTARIO MUNICIPAL CODE

PERTAINING TO CROSS-CONNECTION CONTROL AND FINDING THE ACTION EXEMPT FROM CEQA.

15. AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH WINDSONG PRODUCTIONS, LLC. FOR VIDEO PRODUCTION SERVICES

The City Council authorized the City Manager, or his designee, to execute Amendment No. 4 to the Professional Services Agreement with Windsong Productions, LLC., of Fresno, California, for video production services in the amount of $619,544 for a total not-to-exceed amount of $1,727,380 and to extend the term of the agreement to June 30, 2026.

16. A RESOLUTION OF INTENTION TO RENEW THE GREATER ONTARIO

TOURISM MARKETING DISTRICT

That the City Council adopt a Resolution of Intention to renew the existing Greater Ontario Tourism Marketing Plan.

RESOLUTION NO. 2025-007 A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ONTARIO, CALIFORNIA, DECLARING ITS INTENTION TO RENEW THE

GREATER ONTARIO TOURISM MARKETING DISTRICT (GOTMD) AND FIXING

THE TIME AND PLACE OF A PUBLIC MEETING AND A PUBLIC HEARING THEREON AND GIVING NOTICE THEREOF.

PUBLIC HEARINGS

17. A PUBLIC HEARING TO CONSIDER AN ORDINANCE APPROVING A DEVELOPMENT CODE AMENDMENT, FILE NO. PDCA24-001, TO IMPLEMENT

OBJECTIVE DEVELOPMENT AND DESIGN STANDARDS

The City Council introduced and waived further reading of the Ordinance Approving File No. PDCA24-001, a Development Code Amendment, amending the Reference document section of the City's Development Code, to implement Objective Development and Design Standards for multiple-family and mixed-use residential development.

ORDINANCE NO. 3298 (FIRST READING) AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO PDCA24-001, A DEVELOPMENT CODE AMENDMENT AMENDING THE

REFERENCE DOCUMENT SECTION OF THE CITY'S DEVELOPMENT CODE, TO 21 Ontario City Council/Ontario Housing Authority
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Page 8 of 11 ends

IMPLEMENT OBJECTIVE DEVELOPMENT AND DESIGN STANDARDS FOR

MULTIPLE-FAMILY AND MIXED-USE RESIDENTIAL DEVELOPMENT AND MAKING FINDINGS IN SUPPORT THEREOF.

Notice of public hearing was duly given. Affidavits of compliance are on file. There were no written communications.

Mayor Leon opened the public hearing and inquired if anyone was interested in speaking to the item. Hearing no one, Mayor Leon closed the public hearing and opened the item for Council discussion.

MOTION: Moved by Council Member Porada, seconded by Council Member Bowman and carried by a unanimous vote 5-0, to introduce Ordinance No. 3298.

18. A PUBLIC HEARING TO CONSIDER AN ORDINANCE APPROVING A DEVELOPMENT CODE AMENDMENT, FILE NO. PDCA24-004, REGARDING

ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS

The City Council opened the public hearing, receive public testimony, close the public hearing, and by motion:

A. Find that the adoption of the proposed Ordinance is statutorily exempt from review under the California Environmental Quality Act (“CEQA”) under Public Resources Code section 21080.17; and
B. Consider and adopt an Ordinance upholding the recommendation of the Planning Commission approving the Development Code Amendment (File No. PDCA24-004), pursuant to the facts and reasons contained in the staff report and Ordinance.

ORDINANCE NO. 3299 (FIRST READING) AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING A DEVELOPMENT CODE AMENDMENT, FILE NO. PDCA24-004, AMENDING DIVISION 5.03 & SUPPLEMENTAL LAND USE REGULATIONS, SECTION

5.03.010 OF THE CITY'S DEVELOPMENT CODE RELATING TO ACCESSORY

DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS IN THE CITY,

AND FINDING THE ACTION TO BE STATUTORILY EXEMPT FROM CEQA UNDER PUBLIC RESOURCES CODE § 21080.17, AND MAKING FINDINGS IN SUPPORT THEREOF.

Notice of public hearing was duly given. Affidavits of compliance are on file. There were no written communications.

Mayor Leon opened the public hearing and inquired if anyone was interested in speaking to the item. Hearing no one, Mayor Leon closed the public hearing and opened the item for Council discussion.

MOTION: Moved by Council Member Bowman, seconded by Council Member Macias and carried by a unanimous vote 5-0, to introduce Ordinance No. 3299. 22 Ontario City Council/Ontario Housing Authority
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19. A PUBLIC HEARING TO CONSIDER THE ADOPTION OF AN ORDINANCE APPROVING A DEVELOPMENT AGREEMENT (FILE NO. PDA22-004)

BETWEEN THE CITY OF ONTARIO AND ROSEVILLE INVESTMENTS, LLC AND AMERICAN SUPERIOR LAND, LLC.

The City Council introduced and waived further reading of an Ordinance Approving a Development Agreement (File No. PDA22-004) between the City of Ontario and Roseville Investments, LLC and American Superior Land, LLC.

ORDINANCE NO. 3300 (FIRST READING) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, FILE NO. PDA22-004, A

DEVELOPMENT AGREEMENT BETWEEN THE CITY OF ONTARIO AND,

ROSEVILLE INVESTMENTS, LLC AND AMERICAN SUPERIOR LAND, LLC, TO

ESTABLISH THE TERMS AND CONDITIONS ASSOCIATED WITH TENTATIVE TRACT MAP 20526 (FILE NO. PMTT22-012), LOCATED AT THE SOUTHEAST

CORNER OF HAVEN AVENUE AND RIVERSIDE DRIVE, WITHIN PLANNING AREAS 1A, 1B, AND 1C OF THE RICH-HAVEN SPECIFIC PLAN (FILE NO. PSP05- 004). (APNS: 0218-161-11, 0218-161-04, 0218-161-05, AND 0218-161-10).

Notice of public hearing was duly given. Affidavits of compliance are on file. There were no written communications.

Mayor Leon opened the public hearing and inquired if anyone was interested in speaking to the item. Hearing no one, Mayor Leon closed the public hearing and opened the item for Council discussion.

MOTION: Moved by Council Member Bowman, seconded by Council Member Porada and carried by a unanimous vote 5-0, to introduce Ordinance No. 3300.

20. A PUBLIC HEARING TO CONSIDER AN AMENDMENT TO THE AVENUE SPECIFIC PLAN, FILE NO. PSPA22-005

The City Council considered and adopted:

A. Resolution approving the use of an Addendum to The Ontario Plan 2050 Supplemental Environmental Impact Report (TOP 2050 SEIR); B. Resolution approving File No. PSPA22-005, an Amendment to the Avenue Specific Plan to: 1) modify the land use designation of Planning Area 4 and apply density modifications to Planning Areas 1B, 2A, 3B, and 5 for consistency with the Ontario Plan 2050 land use plan; 2) apply general modifications throughout the document for clarity; and 3) make exhibit and text updates throughout the document to support the project, for land located at the northwest corner of Archibald Avenue and Ontario Ranch Road.

RESOLUTION NO. 2025-008 A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ONTARIO, CALIFORNIA, APPROVING AN ADDENDUM TO THE ONTARIO PLAN 2050 SUPPLEMENTAL ENVIRONMENTAL IMPACT REPORT, 23 Ontario City Council/Ontario Housing Authority
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Page 10 of 11 ends

PURSUANT TO THE REQUIREMENTS OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, AS AMENDED, FOR FILE NO. PSPA22-005.

RESOLUTION NO. 2025-009 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PSPA22-005, AN AMENDMENT TO THE AVENUE SPECIFIC PLAN TO: 1) MODIFY THE LAND USE DESIGNATION OF PLANNING AREA 4 AND APPLY DENSITY MODIFICATIONS TO PLANNING AREAS 1B, 2A, 3B, AND 5 FOR CONSISTENCY WITH THE ONTARIO PLAN 2050 LAND USE PLAN; 2) APPLY GENERAL MODIFICATIONS THROUGHOUT THE DOCUMENT FOR CLARITY; AND, 3) MAKE EXHIBIT AND

TEXT UPDATES THROUGHOUT THE DOCUMENT TO SUPPORT THE

PROJECT, FOR LAND LOCATED AT THE NORTHWEST CORNER OF

ARCHIBALD AVENUE AND ONTARIO RANCH ROAD, AND MAKING FINDINGS IN SUPPORT THEREOF—APNS: 0218-191-04; 0218-191-14; 0218-191-15; 0218- 191-16; 0218-191-05; 0218-191-22; 0218-191-20.

Notice of public hearing was duly given. Affidavits of compliance are on file. There were no written communications.

Mayor Leon opened the public hearing and inquired if anyone was interested in speaking to the item. Hearing no one, Mayor Leon closed the public hearing and opened the item for Council discussion.

MOTION: Moved by Council Member Porada, seconded by Council Member Bowman and carried by a unanimous vote 5-0, to adopt Resolution Nos. 2025-008 and 2025-009.

21. A PUBLIC HEARING TO CONSIDER AN ADDENDUM TO THE ONTARIO PLAN 2050 SUPPLEMENTAL ENVIRONMENTAL IMPACT REPORT; TWO
ORDINANCES APPROVING A DEVELOPMENT AGREEMENT (FILE NO. PDA23- 005) BETWEEN THE CITY OF ONTARIO AND DIVERSIFIED PACIFIC

DEVELOPMENT GROUP, LLC IN CONJUNCTION WITH THE EMPIRE GROVES SPECIFIC PLAN (FILE NO. PSP23-001); AND A RESOLUTION FOR A DEVELOPMENT PLAN (FILE NO. PDEV23-039)

This is item was pulled from the agenda.

22. A CONSOLIDATED PUBLIC HEARING TO CONSIDER ADOPTION OF A

RESOLUTION APPROVING THE DIF NEXUS REPORT UPDATE AND MODIFY

DEVELOPMENT IMPACT FEES

The City Council considered and adopted a Resolution to approve the City's Development Impact Fees (DIF) 2024 Nexus Report Update and modify the DIF fees.

RESOLUTION NO. 2025-010 A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ONTARIO, CALIFORNIA, ADOPTING THE DEVELOPMENT IMPACT

FEE CALCULATION AND NEXUS UPDATE REPORT AND ADOPTING AN UPDATED AND MODIFIED DEVELOPMENT IMPACT FEE SCHEDULE.
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Notice of public hearing was duly given. Affidavits of compliance are on file. There were no written communications.

Mayor Leon opened the public hearing and inquired if anyone was interested in speaking to the item. Hearing no one, Mayor Leon closed the public hearing and opened the item for Council discussion.

MOTION: Moved by Council Member Bowman, seconded by Council Member Porada and carried by a unanimous vote 5-0, to adopt Resolution No. 2025-010.

STAFF MATTERS

City Manager Ochoa made no announcements.

COUNCIL MATTERS

Council Member Macias inquired about improvements at Jay Littleton Ball Park.

Council Member Bowman made no comments.

Mayor pro Tem Wapner spoke on rectal cancer awareness.

Council Member Porada stated the City is working hard to resolve homelessness issues.

Mayor Leon discussed the need for various community amenities.

ADJOURNMENT

Mayor Leon adjourned the meetings of the Joint Agencies at 7:44 p.m., and announced the next regular meeting was scheduled for April 1, 2025.

Respectfully submitted,

____________________________________

SHEILA MAUTZ, CITY CLERK/SECRETARY

APPROVED:

_____________________________________
PAUL S. LEON, MAYOR/CHAIRMAN
25 Department: Economic Development
Prepared By: Peter Pallesen
Department:

Prepared By: Peter Pallesen
Staff Member Presenting: Jennifer McLain
Hiramoto, Economic Development Director
Reviewed By: Charity Hernandez
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 3
SUBJECT:

ONTARIO BUSINESS ASSISTANCE LOAN PROGRAM GUIDELINES AND

APPLICATION

CITY OF ONTARIO
Agenda Report
April 15, 2025
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Invest in the Growth and Evolution of the City's Economy Operate in a Businesslike Manner
Focus Resources in Ontario's Commercial and Residential Neighborhoods FISCAL IMPACT:

The Ontario Business Assistance Loan Program will consist of forgivable loans of up to $150,000 to eligible business owners within the program area. If approved, budget requests will be submitted to City Council for approval, as needed.

BACKGROUND & ANALYSIS:

To encourage the continued development of Downtown Ontario and to incentivize tenants to ﬁll vacant, sometimes historic, commercial space with unique and successful food and beverage operations, the City has developed a program to attract non- franchise independent restaurant and bar operators to a designated area of Downtown Ontario, as described in the program guidelines. These operations will help develop Downtown Ontario to a thriving 18-hour, regional attraction. While there are many prospective restauranteurs interested in opening a brick-and-mortar location in Downtown, a leading impediment is the high cost to outﬁt buildings with the required tenant improvements needed for grease traps, ventilation and other kitchen equipment, patios, and more. Market rate prices to outﬁt restaurants and bars is roughly $75 per square foot.

The City has developed a Program that can help solve for that problem, and lead to the attraction of more quality food and beverage businesses in Downtown. Through this program, the City may in its sole and complete discretion, enter into a "Business Assistance Loan Agreement" ("Loan 26 Agreement") for loans of up to $150,000 to business owners who provide evidence of leases, or are the property owner, within the Program area. The Loan Agreement, secured by a promissory note, will be written down 20 percent each year the business remains open and in good standing with the City. After ﬁve years, the loan will be forgiven, and the promissory note removed. Should the recipient not stay in their location for the full 5-years, the amount remaining will be owed to the City of Ontario. If unable to pay the remaining loan balance, any ﬁxtures funded by the loan such as restaurant/kitchen equipment and/or furniture may be used to write down the remaining loan amount. At the time of default and termination of the agreement, said ﬁxtures will be assessed for their fair market value and will become property of the City to utilize at their discretion.

In order to proceed with the implementation of this Program, guidelines need to be adopted. The guidelines contain the details of the eligibility requirements, amount of and type of ﬁnancial assistance oﬀered, eligible costs, application, and procurement and award processes. While this program is written with the intent on supporting Downtown businesses, the guidelines allow for the expansion of the geographic area as funds become available. Staﬀ recommends that the City Council adopt both the Business Assistance Loan Program guidelines and Loan Agreement to further the goal of revitalizing Downtown Ontario and creating a destination for the community. 27 RESOLUTION NO. ________

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

CALIFORNIA, APPROVING A BUSINESS ASSISTANCE LOAN

PROGRAM
WHEREAS, the City Council of the City of Ontario (the “City”) recognizes the vital role that businesses play in the economic health and vibrancy of the City; and
WHEREAS, the City Council has determined that support and growth of existing businesses and attraction of new businesses is a key priority to aid economic development within the City; and
WHEREAS, start-up costs are a necessary investment for businesses to remain competitive, attract customers, and enhance their operations, but can represent a significant financial burden, particularly for small or medium-sized enterprises; and
WHEREAS, an inability to access affordable financing and/or start-up costs can be a barrier to business profitability, potentially leading to business closures, blight, or relocations outside the City; and
WHEREAS, investment in physical spaces enhances aesthetic appeal of commercial areas, improves customer experience of residents and visitors to the City, and creates an overall more attractive environment; and WHEREAS, the City seeks to establish the Business Assistance Loan Program (the “Program”) to provide financial assistance to eligible businesses for start-up costs, including but not limited to restaurant equipment, furniture and fixtures, and applicable City permits and fees; and
WHEREAS, the Program is intended to enhance the economic vitality of the City by supporting local and regional operators classified as restaurants, cafes, bars/lounge, and similar food and beverage establishments located within Downtown Ontario; and WHEREAS, the Program is intended to aid in the City’s economic development goals by creating and retaining jobs within the City, increasing property values and tax revenues, revitalize commercial corridors and neighborhoods, encourage new and innovative businesses within the Downtown area contributing to the culture of the City of Ontario, and improve the overall business climate and quality of life in the City; and WHEREAS, the City Council finds that providing financial assistance for start-up costs constitutes a valid public purpose by promoting the above stated objectives; and WHEREAS, the Program offers qualifying applicants forgivable loans covering eligible costs at a rate not to exceed $75 per square foot of business operating space, 28 not to exceed One Hundred Fifty Thousand Dollars ($150,000) for eligible start-up costs, with loan forgiveness structured over a five-year period, contingent upon the applicant maintaining the improvements through the end of the five (5) year term; and WHEREAS, the City has prepared a Business Assistance Loan Program Guidelines (the “Guidelines,” shown in Exhibit A, attached and incorporated herein) and Form of Loan Agreement (the “Agreement,” shown in Exhibit B, attached and incorporated herein) outlining the terms and conditions for participation in the Program, including loan eligibility, project approval requirements, maintenance obligations, and repayment terms in the event of noncompliance; and
WHEREAS, all legal prerequisites to the adoption of this resolution have occurred.

NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY OF ONTARIO AS FOLLOWS:

SECTION 1. All recitals are true, correct, and incorporated herein.

SECTION 2. The City Council hereby approves the Business Assistance Loan Program Guidelines and Form of Loan Agreement, attached hereto as Exhibits A and B, and authorizes implementation of the Business Assistance Loan Program in accordance with the Guidelines.

SECTION 3. The Economic Development Agency shall be responsible for administration of the Program, including revisions to the Guidelines. The Economic Development Agency is empowered to adopt application procedures, loan terms, and evaluation criteria, and other administrative procedures in accordance with the purposes of the Business Assistance Loan Program and in consultation with the City Attorney’s Office.

SECTION 4. The Economic Development Agency shall evaluate all applications based on the Guidelines and make recommendations to the City Council.

The City Council shall have the final authority to approve or deny loan applications and loan agreements.

SECTION 5. The City Clerk shall certify to the adoption of this Resolution and cause it to be recorded in the official records of the City.

SECTION 6. This Resolution shall take effect upon adoption.

The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.
29 PASSED, APPROVED, AND ADOPTED this 15th day of April, 2025. _____________________________________
PAUL S. LEON, MAYOR
ATTEST:
____________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
____________________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY
30 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. 2025- was duly passed and adopted by the City Council of the City of Ontario at their regular meeting held April 15, 2025 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. 2025- duly passed and adopted by the Ontario City Council at their regular meeting held April 15, 2025. _____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
31 EXHIBIT A

BUSINESS ASSISTANCE LOAN PROGRAM GUIDELINES
(Attached Behind This Page)
32 EXHIBIT B

BUSINESS ASSISTANCE LOAN PROGRAM LOAN AGREEMENT
(Attached Behind This Page)
33 BUSINESS ASSISTANCE LOAN PROGRAM GUIDELINES

SECTION I- OVERVIEW OF PROGRAM

Purpose, Goals, and Objective of Program

a. The City of Ontario, in its continuing effort to support the revitalization of the Historic Downtown Area ( Downtown), established the Ontario Business Assistance Loan Program ( Program). The Program is a forgivable loan (Loan) program that will be offered to qualifying food and beverage operators that are opening within Downtown. The Program will offer funding to local and regional operators to help fund certain eligible start- up costs related to their business.

b. The goals of the Program align with the City’s ongoing effort to develop the culture of innovation and entrepreneurship with the business community. The goals of the Program include to:

• Facilitate commercial revitalization;
• Stimulate private investment and customer patronage;
• Generate consumer opportunities by further substantiating the f ragile nature of the Downtown area with new businesses being supported by this program;
• Encourage new and innovative businesses within the Downtown area, contributing to the culture of the City of Ontario; and

• Increase tax revenues by incentivizing attractive businesses to locate within the City.

c. The objective of the Program is to support the revitalization of Downtown by assisting new local and regional food and beverage operators with start -up costs funding opportunities otherwise unavailable.

Source of Program Funds

a. The funding for this program will be allocated from the City’s General Fund.

Program Funds

a. As stipulated in the Loan Agreement, Loan is secured by a promissory note, 1 45774.00059\43556866.7
34 where twenty (20) percent of the Loan amount is written down at the end of each year that the business remains open over a five- year term.

b. Upon completion of year five, and if the borrower has complied with all terms of the Loan Agreement, the Loan will be forgiven, and the borrower will receive written confirmation that the loan is fully forgiven and the loan discharged.

c. Loan amount shall not exceed one hundred fifty thousand dollars ($150,000).

d. Total Loan amount shall be calculated upon approval of application.

e. Loan covers eligible costs at a rate not to exceed seventy-five dollars ($75.00) per square foot of business operating space.

f. Business operating space includes leased or owned interior space and exterior outdoor patios and/or balconies.
g. Eligible uses of funds to cover start- up costs include, but are not limited to, restaurant equipment, furniture and fixtures, City building permits and fees, and sewer connection fees through Inland Empire Utilities Agency (IEUA).

h. Final disbursement of Loan funds will be issued upon receiving a Notice of Completion.

SECTION II- PROGRAM REQUIREMENTS

Program Background

a. The City developed a Program to attract and incentivize local and regional food and beverage operators to occupy vacant spaces along Downtown. To receive disbursement of Program funds, applicant must meet and abide by the following Program Requirements.

Program Application

a. Applicant must submit a completed Program Application (Appendix A).

b. Applicant must submit as part of the Program Application a written statement detailing proposed use of funds and improvements to be made. 2 45774.00059\43556866.7
35 c. Incomplete applications will be returned to applicant with a statement noting that the reason that the application is incomplete.

Qualifying Properties

a. Only commercial properties located within the Downtown ( Appendix B ) that have Euclid Avenue- facing buildings between Emporia Street to G Street (100-200 blocks of South Euclid Avenue and 100-600 blocks of North Euclid Avenue) are eligible to apply.
b. The City, at its sole discretion, has th e ability to amend the Program boundaries if a need can be demonstrat ed.

Property Status

a. Applicant must not be in default of a lease agreement, regulatory requirement of any governmental entity, or any other agreement or requirement with other private or public entities as to the proposed space and proposed space cannot be the subject of any legal dispute.

b. Applicant must have an active lease or be the property owner of proposed space for the entire five (5) year Loan term. Applicant must provide the City evidence of its right to possession of the proposed space to the satisfaction of the City.

c. Applicant must maintain property in accordance with City codes and standards.

d. Applicant agrees to remedy any City code violations within 30 -days of issuance of Notice of Violation.

Business Operations

a. Applicant must be a local or regional food and beverage business with at least one current location and no more than seven locations in the United States or abroad.

b. Applicant must be a business that is classified as a restaurant, café, bar/lounge, or other similar food and beverage business.

c. Applicant must maintain a satisfactory health grade with the San Bernardino County Health Department for the duration of the Loan term.

d. Applicant must obtain and maintain a valid City of Ontario Business License. 3 36

e. Applicant must provide a written statement describing its business and how it aligns with the City’s vision to enhance food and beverage options for residents and visitors.

f. Applicant must provide business marketing plan including links to any websites, social media platforms, etc.

SECTION III- PROGRAM FUNDS

Reservation of Program Funds

a. After the applicant has been approved for the Program, a Reservation of Funds Letter (Appendix C ) will be issued for the approved Loan amount. This letter will reserve the approved Loan amount for ninety (90) days.

b. If the applicant fails to submit a Request for Approval of Start- Up Costs (Appendix D) within ninety (90) days, the reservation of Program funds may be cancelled.

c. If unforeseen conditions are delaying the applicant’s ability to submit a Request for Approval, the applicant should contact the Economic Development Agency (EDA) immediately to discuss options to preserve the reservation of Program funds. One (1) extension of time up to ninety (90) days may be granted based upon a demonstration of hardship beyond the applicant’s control and a good faith effort on part of the applicant to overcome such hardship.

Eligible Program Funds

a. Eligible uses of funds to cover start -up costs include, but are not limited to, restaurant equipment, furniture and fixtures, City building permits and fees, and sewer connection fees through Inland Empire Utilities Agency (IEUA).

b. Applicant is responsible for ongoing required renewals, maintenance, repairs, and/or malfunctions or damages caused by approved uses of funds to cover start-up costs for the entire five (5) year term. City will not be held responsible for any items mentioned above.

c. Applicant must request City review and approval of desired start-up costs 4 45774.00059\43556866.7
37 from the EDA to determine eligibility prior to any expenditure.

d. Ineligible costs include, but are not limited to, operating costs such as utilities, business overhead, rent or mortgage payments, payroll expenses, or third-party agency fees such as Health Department, ABC license, etc., with the exception of sewer connection fees through IEUA.

e. Program funds are not allowed to be used for any installation or labor costs associated with construction or business start -up costs and are strictly reserved for eligible fees and physical equipment, furniture, fixtures, or material for work completed prior to the issuance of the Notice of Completion (Appendix E).

Release of Program Funds
a. Applicant agrees to provide the City with itemized invoices or receipts for all approved eligible start-up costs prior to the release of funds. b. After the applicant notifies the City that all work has been completed, an inspection will be conducted by the EDA at a reasonable time during working hours (Monday – Friday, 8:00 am – 6:00 pm). The City will authorize the release of Program funds to the applicant for approved start-up cost if and only if the City determines in its sole and reasonable discretion that the inspection reveals the funds were used as indicated in the application and as shown in the invoices or receipts submitted to the City.

c. Applicant agrees that should they default on the Loan Agreement prior to the end of the five- year term, any unpaid Loan amount shall be paid in full, with no interest, within 2 years of the date of default, unless another date is agreed upon in the City’s reasonable discretion and consistent with the purposes of these Guidelines. Any fixtures funded by the Loan such as restaurant/kitchen equipment and/or furniture may be used to write down the remaining Loan amount. At the time of termination, said fixtures will be assessed at fair market value and will become property of the City to utilize at its discretion.

d. Program funds will be disbursed as specified in the Loan Agreement entered into between the City and applicant.

5 45774.00059\43556866.7
38 Section IV- AMENDMENTS & DISCLOSURES

Amendments

a. Amendments to the Program Guidelines may be made from time to time by the City. Authority shall be granted to the City Manager or his/her designee to grant reasonable waivers or make reasonable amendments to these Guidelines, apart from Federal guidelines and regulations, consistent with the purposes of this Program.

Disclosures

a. City at its own discretion has the right to make modifications on the business classifications, geographic locations, and any other requirements of these Guidelines.

b. Program is on a first -come, first -served basis, and only as funds become available.

6 45774.00059\43556866.7 39

APPENDIX A

ONTARIO BUSINESS ASSISTANCE LOAN PROGRAM APPLICATION

BUSINESS INFORMATION
Business Name:

Proposed Business Address:

Select One: (Attach copy of Lease or Deed of Trust)

☐ Lease
☐ Own
Assessor Parcel Number(s):

Total Square Footage of Business Operating Space:

Business Type: (Select One)
☐ Restaurant
☐ Cafe
☐ Bar/Lounge
☐ Other (specify):

Other Business Locations: (Provide both number of additional locations and respective address)
Number of additional locations:

Additional location addresses:

PROPOSED BUSINESS PROJECTIONS
Estimated Annual Gross Sales: $
Amount of Personal investment: $
40 Amount of Investment by Landlord: $
Provide a written statement describing the business and how it aligns with the City’s vision to enhance food and beverage options for residents and visitors. This statement may be written and provided as a separate document.

Provide a written statement describing the business’ marketing plan. This statement may be written and provided as a separate document.

Provide a written statement, including cost estimates, detailing the proposed use of funds.

This statement may be written and provided as a separate document. 41 APPLICANT CONTACT INFORMATION

Name:

Mailing Address:

City, State, ZIP Code:

Phone #:

E-mail:

Business Social Media Accounts:

Instagram:

Facebook:

TikTok:

Other:

PROPERTY OWNER OR AGENT CONTACT INFORMATION
*Fill out if property is leased and not owned personally by applicant

Name:

Phone:

E-mail:

AGREEMENT OF APPLICANT
By signing this application, you are certifying that all the information provided is true and accurate to the best of your knowledge. You are also certifying and acknowledging that submitting this application does not automatically guarantee a reservation of funds.

Signature Date

Printed Name
42 APPENDIX B:

Boundary Map (see attached)
43 Legend

Eligible Areas

Sources: Esri, Maxar, Airbus DS, 44

APPENDIX C:

Reservation of Funds Letter (see attached)
45 ONTARIO BUSINESS ASSISTANCE LOAN PROGRAM
Reservation of Funds Letter

[DATE]

[Business Name]
[Applicant Name]
[Business Address]
Dear [Applicant Name],
Congratulations! You have been selected to participate in the Business Assistance Loan Program (Program). The City is pleased to inform you that program funds in the amount of $ have been reserved for your proposed business improvements.

In accordance with Program Guidelines, within ninety (90) days from the date of this letter, you are required to submit a written Request for Approval of Start-Up Costs form. This form is included in the Program Guidelines and must be completed in full. Additionally, you must provide supporting documentation, including vendor and supplier quotes, estimates, and any other relevant materials detailing the costs of each line item speciﬁed in your request form.

If unforeseen conditions arise that may delay your ability to submit the Request for Approval of Start-Up Costs form within the required timeframe, please contact the Economic Development Agency (EDA) immediately to discuss possible options for preserving your reserved program funds.

Under certain circumstances, a single extension of time, up to ninety (90) days, may be granted. To qualify for an extension, you must demonstrate a hardship beyond your control and show a good faith effort to overcome such hardship.

Failure to submit the required Request for Approval of Start-Up Costs form, along with supporting documentation, or to request an extension within the allowable timeframe, may result in the forfeiture of your reserved Program funds.

If you have any questions or need assistance, please do not hesitate to contact Peter Pallesen at (909) 395-2333.

We look forward to supporting your business through this program.

Sincerely,
Peter Pallesen
City of Ontario, Economic Development Agency
P: (909) 395-2333
E: [email protected]

Appendix C
46 APPENDIX D:

Request for Approval of Start-Up Costs (see attached)
47 Appendix D

ONTARIO BUSINESS ASSISTANCE LOAN PROGRAM

REQUEST FOR APPROVAL OF START-UP COSTS
Business Information
• Business Name: __________________________________________ • Business Address: ________________________________________ • Loan Number: ___________________________________________ Description(s) of requested start-up cost(s)
*All requested start-up costs must include a formal quote or estimate from vendor, supplier, or online merchant.

Description of Start-Up Cost Estimated
Price Notes

Number of Items:_____________ Total Estimated Cost: $xxx,xxx Signature
Business Owner: _______________________________ Date: ___________ Printed Name: __________________________________

For Internal Use Only:
• Final Approval Date: ___________________________
Program Administrator Contact Information:

Name: ___________________________________
Phone: ___________________________________
Email: ___________________________________
48 APPENDIX E:

Notice of Completion (see attached)
49 ONTARIO BUSINESS ASSISTANCE LOAN PROGRAM

NOTICE OF COMPLETION
Business Information
• Business Name:
• Business Address:
• Loan Number:

Inspection Information
• Date of Final Building Inspection:
• Building Permit Number(s):
• Health Department Permit Number(s):

Program-Funded Improvements
Description of Improvement Completed
(Yes/No) Notes

Certiﬁcation of Completion
I certify that all improvements funded by the Business Assistance Loan Program have been properly installed, inspected, and approved by the appropriate regulatory agencies.

Signatures:
• Building Inspector: Date:
• Program Administrator: Date:
• Business Owner: Date:

For Internal Use Only:
• Final Approval Date:

Program Administrator Contact Information:

Name:

Phone:

Email:

Appendix E
50 45774.00059\43563205.6

1 FORM OF LOAN AGREEMENT

CITY OF ONTARIO

BUSINESS ASSISTANCE LOAN PROGRAM AGREEMENT

THIS AGREEMENT, entered into this ______day of _____________, _______, between the City of Ontario, California (the “City” or “Lender”) and the following designated Owner and/or Lessee (“Borrower”):

Owner Name:

Lessee’s Name:

Name of Business:

Business Tax ID #:

Address of Property to be
improved:

RECITALS:

WHEREAS, the City of Ontario has established the Business Assistance Loan Program (the “Program”) as detailed in the Business Assistance Loan Program Guidelines, on file with the City Clerk of the City of Ontario (the “Guidelines”), incorporated herein by reference; and

WHEREAS, said Program is administered by the City with the advice of the City Council for the purpose of assisting with eligible start-up costs such as restaurant equipment, furniture and fixtures, City building permits and fees, and sewer connection fees through the Inland Empire Utilities Agency (“IEUA”); and

WHEREAS, pursuant to the Program, the City has agreed to loan qualifying Borrowers for the cost of e ligible uses of funds to commercial establishments up to a maximum of One Hundred Fifty Thousand Dollars ($150,000) per Borrower in the form of a forgivable, no-interest loan whereby the balance of the loan shall be reduced by 20% each year the Borrower remains open over a five (5) year term; and

WHEREAS, the Borrower’s property is located within the Program Area, and the Borrower desires to participate in the Program pursuant to the terms and provisions of this Agreement.
51 45774.00059\43563205.6

2 NOW THEREFORE, in consideration of the mutual covenants and agreements obtained herein, the City and the Borrower do hereby agree as follows:

SECTION 1

a. All Recitals above are true, correct, and incorporated herein.

b. Under this Agreement, the City provides Borrower as loan for certain Program- eligible property start-up costs (“Eligible Costs”), as provided in Borrower’s loan application, attached hereto and incorporated herein as Exhibit “A” . The total amount of the loan to Borrower under this Agreement shall be $ __,____,___ (________ Dollars). The loan shall cover eligible costs at a rate not to exceed $75 per square foot of business operating space, including approved private outdoor patios. Thereafter, the loan balance shall be reduced by 20% each year the Borrower maintains the improvements in accordance with the Program. If the improvements are maintained for five (5) years from and after the date of completion and approval of the Eligible Costs by the City, and the Borrower is not in default of this Agreement, the loan shall be forgiven as paid in full, and the City shall provide written confirmation that the loan has been discharged.

c. Borrower agrees that they are responsible for all ongoing required renewals of permits/licenses, maintenance, repairs, and/or malfunctions or damages caused by approved uses of funds to cover start-up costs for the entire five (5) year term. City will not be held responsible for items mentioned above.

d. Borrower agrees to hold a satisfactory standing with both City codes and regulations as well as any and all applicable third -party regulatory and governing agencies, including, but not limited to, the San Bernardino County Health Department, Department of Alcoholic Beverage Control, or California State Board of Equalization. Should Borrower fail to maintain a satisfactory standing and/or become out of compliance with any regulatory or governing agency, the City may issue a thirty (30) day written notice to the Borrower to correct the deficiencies indicated in City’s notice . If the Borrower fails to correct the stated deficiencies within thirty (30) days of the notice, the City will have the right to demand repayment of the then outstanding loan amount.

e. All work on Eligible Costs must be completed within one -hundred eighty (180) days from the date of approval of Request of Approval of Start-Up Costs, unless an extension is granted in the reasonable discretion of the City. Upon completion of the Eligible Costs, the Borrower shall submit to the City proof of payment and invoices or receipts showing the actual full cost.

52 45774.00059\43563205.6

3 f. Loan disbursements shall occur as follows: upon submission to the City of itemized invoices or receipts for approved eligible start -up costs. Final invoice or receipt shall require a Notice of Completion.

i. Borrower agrees to provide the City with itemized invoices or receipts for all Eligible Costs prior to any disbursement of funds.

ii. After the Borrower notifies the City that all work to install Eligible Costs has been completed, an inspection will be conducted by the City at a reasonable time during working hours (Monday – Friday, 8 am – 6 pm). The City will authorize the release of Program funds to the Borrower for Eligible Costs if and only if the City determines in its sole and reasonable discretion that the inspection reveals all funds were used as indicated in the application and as shown on the invoices or receipts submitted to the City.

g. Ineligible costs include operating costs, such as other utilities, business overhead, rent, or mortgage payments; payroll expenses; t hird-party agency fees , except Inland Empire Utilities Agency , including but not limited to Health Department and Alcohol Beverage Control license fees; and any installation or labor costs associated with construction or business start-up, unless otherwise provided in this Agreement.

h. Disbursement of the loan funds for Eligible Costs is contingent on Borrower’s use of the funds as indicated in Borrower’s project application, shown in Exhibit “A”.

City may refuse to disburse funds if it finds, in its reasonable discretion, that Borrower has not used the funds as indicated in Borrower’s project application.

i. The Borrower must operate a business classified as a restaurant, café, bar/lounge, or other similar food and beverage business; have at least one existing store/location and no more than seven (7) locations in the United States or abroad ; proposes to locate within Do wntown Ontario; provide financial statements demonstrating capacity and success in operating said business; submit a written statement describing the business and how it aligns with the City’s vision to enhance food and beverage opti ons for residents and visitors; have an active lease or be the property owner of the proposed business location; submit a business marketing plan, including links to any websites, social media platforms, etc.; be able to demonstrate or provide drawings of proposed tenant improvements, along with cost estimates; and obtain a valid City of Ontario Business License.

j. The Borrower agrees to provide the City with invoices for all eligible costs prior to the disbursement of funds; maintain property in accordance with City codes and standards and to remedy any City code violations within thirty (30) days of issuance of notice of violation; provide the City with financial statements, such as profit and loss statements, every quarter unti l the end of the five -year term; maintain a satisfactory health grade with the San Bernardino County Health Department for 53 45774.00059\43563205.6

4 the duration of the loan term; and maintain a valid City of Ontario Business License for the duration of the loan term.

SECTION 2

All payments for Eligible Costs must be approved in writing by the City. Following approval, the Borrower shall contract for the Eligible Costs and shall commence and obtain all such Eligible Improvements within one-hundred eighty (180) days from the date of such approval.

The Borrower may request a ninety (90) day extension provided there is a demonstrated hardship as determined in the sole and reasonable discretion of the City.

SECTION 3

The City shall periodically inspect that Eligible Costs have been obtained in compliance with this Agreement. Such inspections shall not replace any required permit inspection by City building inspectors. All work that is not in conformance with the approved plans, design drawings, and specifications provided in Borrower’s application shall be immediately remedied by the Borrower, and deficient or improper work shall be replaced and made to comply with the approved plans, design drawings, and specifications and the terms of this Agreement.

SECTION 4

If the Borrower fails to complete the Eligible Costs in conformity with the approved plans, design drawings, and specifications and the terms of this Agreement, and the Borrower fails to cure such default following ninety ( 90) days of written notice from the City by certified mail to the address listed above, the City will not be obligated to disburse any additional funds under this Agreement and such failure to cure on part of Borrower shall be treated as a default of this loan.

SECTION 5

This Agreement shall be binding upon the City and upon the Borrower and its successors, to said property for a period of five (5) years from and after the date of completion and approval of the start-up costs provided herein unless otherwise agreed upon by the parties in writing. It shall be the responsibility of the Borrower to inform subsequent owners and lessees of the provisions of this Agreement.
54 45774.00059\43563205.6

5 SECTION 6

The Borrower agrees to maintain ongoing required renewals, maintenance, repairs, and/or malfunctions or damages caused by approved uses of funds to cover start -up costs for the entire five (5) year term at his/her sole expense during this Agreement unless otherwise agreed upon by the parties in writing. In the event that the Borrower fails to maintain the start -up costs and/or becomes out of compliance with City code or any applicable regulatory or governing agency, the City may issue a thirty (30) day written notice to the Borrower to correct the deficiencies indicated in City’s notice. If the Borrower fails to correct the stated deficiencies within thirty (30) days of the notice, the City will have the right to demand repayment of the then outstanding loan amount.

SECTION 7

The Borrower agrees to comply with all the requirements now in force, or which may hereafter be in force, of all municipal, county, state and federal laws, pertaining to the development and use of the property and construction of the improvements, as well as operations conducted on the property. The Borrower agrees that the City shall not be liable for, and covenants and agrees to indemnify and hold harmless the City and its officials, officers, employees, and agents from and against any and all losses, claims , damages, liabilities, or expenses, of every conceivable kind, character and nature whatsoever arising out of, resulting from , or relating to noncompliance with all municipal, county, state and federal laws. The Borrower agrees that it will require any contractor to comply with all Borrower local, state and f ederal laws, and will incorporate these laws in any written agreement between the Borrower and any and all contractors.

SECTION 8

a. No officials, officers, employees, or agents of the City shall be personally liable to the Participant, or any successor in interest in the event of any default or breach by the City or for any amount which may become due to the Borrower or successor or on any obligation under the terms of this Agreement.

b. Should the Borrower default on this Agreement prior to the end of the five (5) year term, and following any applicable cure period, the remaining unpaid loan amount shall become immediately payable and any fixtures funded by the loan, such as restaurant/kitchen equipment and/or furniture, may be used to offset the remaining loan amount. Such fixtures will be assessed for their fair market value and, upon agreement, become property of the City for utilization at its sole discretion. The Borrower shall pay the amount in full, with no interest, within two years of the date of default. The date of default is the last date on which Borrower has an opportunity to cure a default and fails to do so, as provided in a written notice of default sent by the City to the Borrower via certified mail to the address listed above.

c. Pursuant to, and in accordance with, all terms and provisions of this Agreement, for value received, Borrower hereby pledges and grants to the City a continuing general lien on, and security interest in, any fixtures funded by the loan, such as restaurant/kitchen equipment and/or furniture, in order to secure the payment owed 55 45774.00059\43563205.6

6 to the City as described above , evidenced by this Agreement and the promissory note (the “Promissory Note”), attached hereto as Exhibit “ B” and incorporated by reference. The City’s security interest shall continually exist until the loan has been paid in full or forgiven by the City.

SECTION 9

The Borrower releases the City from, and covenants and agrees that the City shall not be liable for, and covenants and agrees to indemnify and hold harmless the City and its officials, officers, employees, and agents from and against any and all losses, claims, damage s, liabilities, or expenses, of every conceivable kind, character and nature whatsoever arising out of or, arising from or relating to the use of the loan funds . The Borrower further covenants and agrees to pay for or reimburse the City and its officials, officers, employees, and agents for any and all costs, reasonable attorney’s fees, liabilities, or expenses incurred in connection with investigating, defending against or otherwise in connection with any such losses, claims, damages, liabilities, or cause of action related to the Borrower’s participation in the Program . The City shall have the right to select legal counsel and to approve any settlement in connection with such losses, claims, damages, liabilities, or causes of action related to the Borrow er’s participation in the Program .

The provisions of this section shall survive the completion of said improvements.

SECTION 10

Nothing herein is intended to limit, restrict, or prohibit the Borrower from undertaking any other work in or about the subject prem ises, which is unrelated to the improvement provided for in this Agreement.

SECTION 11

If there is any conflict between the Guidelines and this Agreement, this Agreement shall control.

IN WITNESS THEREOF, the parties hereto have executed this Agreement on the date first appearing above.

56 45774.00059\43563205.6

7 BORROWER (the “Borrower”):

{Entity Name, entity type}

By
_________________________________

Name of Authorized Representative:

Title:

CITY OF ONTARIO (the “Lender”)

______________________________
Scott Ochoa, its City Manager

ATTEST:

______________________________
City Clerk

APPROVED AS TO FORM:

_______________________________
City Attorney
57 45774.00059\43563205.6

8 EXHIBIT “A”
Borrower Application

58 45774.00059\43563205.6

9 EXHIBIT “B”

FORM OF PROMISSORY NOTE

APPLICANT NAME
Loan Number ####

PROMISSORY NOTE
${up to $150,000}.00 Month/Day, 202_
FOR VALUE RECEIVED, the undersigned (individually and collectively, "Borrower"), hereby promise(s) to pay to the order of CITY OF ONTARIO ("Lender") the principal sum of _____________ Dollars and No Cents (${Dollar Amount}.00) as specified in the Business Assistance Loan Program Agreement between Borrower and Lender dated as of the date hereof (the "Business Assistance Loan Program Agreement"). Principal is payable to Lender at the times specified in the Business Assistance Loan Agreement. All payments shall be made to Lender in lawful money of the United States of America at {ADDRESS}, or such other place as Lender directs, in same day funds. Each capitalized term used in this note that is defined in the Business Assistance Loan Program Agreement will have the meaning specified in the Business Assistance Loan Program Agreement. This note is referred to in, and is subject to the terms and conditions of the Business Assistance Loan Program Agreement.

Borrower has signed this note effective as of the day and year first written above.

BORROWER

{ENTITY NAME}

By:
{AUTHORIZED REPRESENTATIVE}
{TITLE}

{ENTITY NAME}

By:
{AUTHORIZED REPRESENTATIVE}
{TITLE}

59 Department: Economic Development
Prepared By: Peter Pallesen
Department:

Prepared By: Peter Pallesen
Staff Member Presenting: Jennifer McLain
Hiramoto, Economic Development Director
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 4
SUBJECT:

AMENDMENT TO THE DOWNTOWN ONTARIO RESTAURANT AND BREWERY

EQUIPMENT REBATE PROGRAM

CITY OF ONTARIO
Agenda Report
April 15, 2025
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Invest in the Growth and Evolution of the City's Economy Operate in a Businesslike Manner
FISCAL IMPACT:

The Fiscal Year 2024-25 Adopted Budget includes $60,000 in appropriations to fund this program.

BACKGROUND & ANALYSIS:

To encourage the continued development of Downtown Ontario and to incentivize tenants to ﬁll vacant commercial space with sustainable business, the City has developed a program to attract non-franchise and non-chain independent restaurants, wineries, craft breweries and/or distilleries to a designated area of Downtown Ontario.

The proposed amendment to the program allows the City in its sole and complete discretion to enter into a “Restaurant/Brewery Rebate Program Loan Agreement” (Attachment A) for loans of up to $20,000 to business owners who provide evidence of leases within the Program area for which they have made qualifying purchases of certain capital equipment. Currently, this program allows for loans of up to $10,000 to qualiﬁed applicants. Through this amendment, the City will increase the total allotment to $20,000 in an eﬀort to provide a stronger incentive package for prospective restaurateurs, breweries, and wineries looking to locate in Downtown Ontario. To date, the program has seen great success in supporting new and existing business owners including Mule Car Smokehouse, Mestiza Coﬀeehouse, and Strum Brewery to name a few. The amendment does not alter the existing program boundaries of Downtown Ontario, as detailed in the guidelines, but does provide the City Manager and/or his designee, at their sole discretion, to adjust those boundaries based upon the fluid priority of Economic Development. 60 The balance of the loan will be reduced by 20% each year if the Borrower has remained in business at the qualifying location. If the Business remains at the qualifying location for ﬁve years, the loan shall be cancelled, and the promissory note returned to the Borrower as paid in full. Should a recipient not stay in their location for the full 5 years, the amount remaining will be owed to the City of Ontario. Economic Development Agency staﬀ will review all applications to ensure equipment is a qualiﬁed purchase, but may include purchase of commercial freezers, range, fermenters, walk-in cooler.

In order to proceed with the implementation of the program, the amended program guidelines need to be adopted. The program guidelines contain the details of the eligibility requirements, amount and type of ﬁnancial assistance oﬀered, eligible improvements, application, and procurement and award processes. Staﬀ recommends that the City Council adopt the Downtown Ontario Equipment Rebate Program Guidelines, to further the goal of revitalizing downtown and creating a destination for the community.
61 00071358.1

RESTAURANT/BREWERY REBATE PROGRAM

LOAN AGREEMENT
This AGREEMENT is made and entered into this __ day of (month), (year) (the “Effective Date”) by the CITY OF ONTARIO through its Economic Development Agency (“City” or “Lender”), and __________ (or “Borrower”) and the Party or Parties, on the terms and conditions set out below.

RECITALS
A. To encourage the continued development of Downtown Ontario and to help fill vacant commercial space with sustainable business, the City has developed a program to attract small local restaurants and craft breweries, distilleries or wineries to a designated area of Downtown Ontario within the boundaries extending to G Street on the North, Holt Boulevard to the South, Palm Avenue to the West and Plum Avenue to the East (the “Restaurant/Brewery Rebate Program” or “Program”); and
B. The City may in its sole and complete discretion make loans of up to $20,000 to business owners who provide evidence of leases within the Program area for which they have made qualifying purchases of certain capital equipment when such new businesses meet the applicable terms and conditions of the Program, including but not limited to, square footage and an administrative use permit (“AUP”); and
C. Borrower has obtained an AUP and has provided evidence of a lease within the qualifying location as well as of the purchase of a ___________ in the amount of and has applied for the loan within one year of that purchase; and
D. After review, the City has verified and determined that Borrower is eligible for such a loan.

Now, therefore, the Parties agree as follows:

1. Recitals: The Recitals set out above are true and correct.

2. Loan. Lender loans to Borrower and Borrower borrows from Lender, on the terms and conditions set out here, the total amount of $_________. The loan proceeds may be used for any business purpose related to borrower’s business within the Program area (a) The loan will be paid to Borrower in a lump sum upon execution of this Loan Agreement.
(b) The term of the loan is for a maximum of five (5) years commencing on the date of execution of this Loan Agreement.
(c) The loan will not bear interest.
62 00071358.1
(d) For each fiscal year after Effective Date of agreement (i.e. the first such year being July 1, 2020 through June 30, 2021), the balance of the loan shall be reduced by 20% if the Borrower has remained in business at the qualifying location. If the Borrower remains in business at the qualifying location for five (5) years from Effective Date, the loan shall be cancelled and the promissory note returned to the Borrower as paid in full.

3. Default. Borrowers shall be considered in default under (a), (b) or (c), as follows:
(a) In the event that the Borrower does not remain in business at the qualifying location at any time during the five (5) year period, the balance of the loan then owed shall be accelerated and due and payable in full, without interest to the City 30 calendar days from the date of closure or relocation of the business. In the event the loan is not paid within that 30-day time period, the balance shall bear simple interest at the rate of 10% per annum.

Thereafter, any payment shall be applied first to interest and then to principal. (b) The loan shall be considered in default and the balance due accelerated and due and payable within 30 calendar days in the event that the Borrower’s ABC license is suspended or cancelled or the AUP is suspended or cancelled. In event that the loan is not paid within that 30-day time period, the balance shall bear simple interest at the rate of 10% per annum. Thereafter, any payment shall be applied first to interest and then to principal. (c) Lender assigns the loan, the lease or sells or transfers the business. (d) Borrower must notify Lender immediately in writing in the event that either (a) or (b) above occurs or applies.
(e) In the event of a default, Lender may pursue any legal remedy available to it to secure payment of any and all monies owed by Borrower. Nothing herein shall preclude Lender from waiving any breach or breaches which, in the sole judgment of Lender, are not substantial or do not affect the repayment of the loan herein prescribed. The remedies provided by this paragraph are cumulative and in addition to and independent of any other remedies given Lender by law.

4. Additional Terms and Conditions:
(a) Borrower shall indemnify, hold harmless, and defend (with counsel of City’s choosing) Lender, its officers, officials, agents, volunteers and employees, from and against any and all claims, demands, damages, causes of action, costs, fines, expenses, liability or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of or pertaining to, the acquisition, development, operation or maintenance of the property described herein except for liability arising out of the sole negligence or willful misconduct of the Lender, its officers, officials, agents, volunteers or employees. In the event the City or its officers, officials, agents, volunteers or employees are named as co-defendant(s) in any court proceeding related to the business, the Borrower shall notify all affected parties of such fact and shall represent the Parties in such legal action unless the Parties undertake to represent themselves as co-defendant(s) in such legal action, in which event an individual Party shall bear its own litigation costs, expenses and attorney’s fees. 63 00071358.1
(b) No delay or failure of City in the exercise of any right or remedy hereunder shall affect any such right or remedy and no single or partial exercise of any such right or remedy shall preclude any further exercise thereof, and no action taken or omitted by City shall be deemed a waiver of any such right or remedy.
(c) Borrower waives demand, protest, presentment, notice of nonpayment, notice of protest, notice of dishonor, and diligence in bringing suit against any party and does hereby consent that time of payment of all or any part of said amount may be extended from time to time by the Lender hereof without notice.
(d) Borrower is responsible for any and all costs of collection of the loan amount, plus interest, including but not limited to any court costs and attorneys’ fees. (e) Any notice to the Borrower shall be given by personally delivering or mailing such notice by first-class mail, postage prepaid, addressed to the Borrower at the address set out below, or to such other address as the Borrower may designate by written notice to the Lender. Any notice to the Lender shall be given by mailing such notice by personal delivery or mailing such notice first class mail, postage prepaid, addressed to Lender at the address set out below. Notice shall be deemed received upon personal delivery or three (3) days after deposit in the U.S. Mail.

Borrower: _______________________________
_______________________________
_______________________________
Lender: City of Ontario
303 E. “B” Street
Ontario, CA 91764
In witness whereof, the Parties signing below and authorized to do so have executed this Agreement as of the date(s) set forth below.

Borrower: Lender:

By: By: City of Ontario
Date Date
64 Downtown Ontario Equipment Rebate Program

Page 1 of 5 ends

To encourage the continued development of Downtown Ontario and to help fill vacant commercial space with sustainable business, the City has developed a program to attract smal l local independent, full-service restaurants or wineries and craft breweries or distilleries to the City. The boundaries of this program will be adjustable at City discretion, based upon the fluid priorities of Economic Development.

1. Program Details:
• The City may in its sole and complete discretion make loans of up to $20,000 to business owners who provide evidence of leases within the current Program area for which they have made qualifying purchases of certain capital equipment. • The balance of the loan shall be reduced by 20% each year that the Borrower has remained in business at the qualifying location. If the Borrower remains in business at the qualifying location for five
(5) years, the loan shall be canceled, and the promissory note returned to the Borrower as paid in full. Should a recipient not stay in their location for the full 5 years, the amount remaining will be owed to the City of Ontario.
• Eligible equipment purchase must be necessary to the operation of the business. Examples of qualified equipment are provided as part of the application packet. Economic Development Agency staff will review all applications to ensure equipment is a qualified purchase.

2. Qualifications and Requirements:
• Must have lease agreement equal to or greater than 5 years. • Business must be under 10,000 square feet.
• Must be an approved business in the City of Ontario with current business license and applicable permits for location. This includes obtaining any necessary permits for instillation of equipment.
• Applicants must be a fall into current industry definitions for Craft Brewery, Craft Distillery, or be a qualified Independent Full-Service Restaurant or Winery.

3. Application Process:
• Complete the Restaurant/Brewery Equipment Purchase Program Application. Total cost of equipment purchases, and receipts will be included as part of application. • Provide proof of 5 year or longer lease agreement.
• Provide description of equipment use for operation of business and proof of installation at location.
• Economic Development Agency Staff wi ll review each application for accuracy and to ensure all eligibility requirements are met.
• Funding is subject to availability and will be paid to business upon approval o f application and confirmation of receipts detailing purchases , including inspection and verification of installation of equipment by City Staff.
65 Downtown Ontario Equipment Rebate Program

Page 2 of 5 ends

Map of Program Boundary
66 Downtown Ontario Equipment Rebate Program

Page 3 of 5 ends

Examples of Qualified Commercial Equipment with Estimated Prices:
o Beer Keg Shelf – $300–$500
o Cookers (Distilling) – $1,000–$5,000
o Crowler Machine – $2,500–$4,000
o Deep Fryer – $1,200–$3,500
o Dishwasher – $2,000–$5,000
o Draft Faucet – $200–$500
o Faucet Draft Tower – $1,500–$3,000
o Fermenter – $3,000–$10,000
o Freezer (Chest/Upright/Walk-In) – $1,000–$8,000
o Grill – $1,500–$6,000
o Nitro Faucet – $250–$600
o Oven – $2,000–$6,000
o Power Pack (Cooling System) – $3,000–$7,000
o Range – $2,000–$6,500
o Reach-In Cooler – $2,500–$7,000
o Refrigerator – $1,500–$6,000
o Sink – $300–$1,000
o Steam Table – $1,000–$2,500
o Still – $2,500–$10,000
o Walk-In Cooler – $6,000–$15,000
o Wine Racks – $500–$1,500
o Wine Refrigerator – $1,000–$3,000
67 Downtown Ontario Equipment Rebate Program

Page 4 of 5 ends

APPLICATION SUBMITTAL CHECK LIST
 Completed Application
 Proof of 5 year or longer lease agreement
 Total Cost and Receipts for Equipment being requested for rebate  Proof of Installation of equipment (City reserves right to inspect)  Business must have current Business License and all associated permits for operation (City Staff will verify for accuracy)
Submit all applications to the City of Ontario Economic Development Agency, Attention:

Equipment Rebate Program, 303 E. B Street Ontario, CA 91764.

Any questions that may arise or any needs of assistance please reach out to Peter Pallesen, Economic Development Coordinator: [email protected] & (909 395-2333) 68 Downtown Ontario Equipment Rebate Program

Page 5 of 5 ends

APPLICATION FOR EQUIPMENT REBATE PROGRAM
Date: / /____
APPLICANT NAME:

Name of Business:
_______________________________
Contact Person (if different from applicant): ___________________ Email: ____________________ Phone: _________________ Square Footage of Business: ______________
Current Business Address:

Application being submitted for:
 Craft Brewery
 Craft Distillery
 Independent Full-Service Restaurant
 Independent Winery
Please Describe Equipment Being Purchased (attach additional pages if needed):

Describe Equipment’s critical use in operation of the business (attach additional pages if needed):

Amount requested (maximum request $20,000)
Signature of Applicant Date
69 Department: Public Works
Prepared By: Daniel P Beers
Staff Member Presenting: Tito Haes, Executive
Director Public Works
Reviewed By: Andrea Ampig, Bonnie Tam
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 5
SUBJECT:

AUTHORIZE THE PURCHASE OF CHARGEPOINT ELECTRIC VEHICLE CHARGERS FOR THE CITY HALL PARKING STRUCTURE WITH BODEV, INC.

CITY OF ONTARIO
Agenda Report
April 15, 2025
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

That the City Council take the following actions:

A
.

Authorize the City Manager, or his designee, to execute all documents required for the completion of the project including, but not limited to agreements, assessments, easements, reduction of retention accounts, contracts amendments within the authorization limits, and filing a notice of completion at the conclusion of all construction related activities.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Invest in the City's Infrastructure (Water, Streets, Sewers, Parks, Storm Drains and Public Facilities)
FISCAL IMPACT:

The proposed Construction Contract with BodEV, Inc. is in the amount of $559,482 plus a contingency amount of $56,000 for a total not-to-exceed contract amount of $615,482. If approved, appropriations in the Air Quality Improvement Fund and Capital Projects Fund will be requested at future quarterly budget updates to the City Council for approval as needed.

BACKGROUND & ANALYSIS:

On April 4, 2023, the City Council authorized a Construction Contract with McCarthy Building Companies, Inc. to provide design-build construction services for the City Hall Parking Structure. Per the California Green Building Code, new non-residential facilities with over 201 parking spaces must make 20% of the total number of parking spaces EV capable and 25% of those parking spaces ready for use on day one. If approved, BodEV, Inc. will supply 19 Dual Port EV chargers and 6 Single Port EV Chargers for a total of 25 EV Chargers that will be ready and operable for use as of day one for the City Hall Parking Structure. 70 The City Hall Parking Structure is scheduled to become operational by Summer of 2025. 71 46700.00100\40935206.1

(BB&K 2024) - 1 - Goods and Services Agreement

CITY OF ONTARIO

GOODS & SERVICES AGREEMENT
This Agreement is made and entered into as of ____________, by and between the City of Ontario, a municipal corporation organized under the laws of the State of California with its principal place of business at 303 East “B” Street, Ontario, California 91764-4196, County of San Bernardino, State of California (“City”) and BodEV, Inc., a Corporation with its principal place of business at 2581 Union Ave, La Habra, CA 90631 (“Vendor”). City and Vendor are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.

RECITALS
A. Vendor desires to perform and assume responsibility for the provision of certain services and goods required by the City on the terms and conditions set forth in this Agreement.

Vendor represents that it is experienced in providing similar services and goods to public clients, that it and its employees or subcontractor s have all necessary licenses and permits to perform the services in the State of California and that is familiar with and understands the needs of City.

B. City desires to engage Vendor to sell to City the materials and/or equipment and/or render such services as more particularly described in this Agreement.

TERMS

1. SCOPE OF SERVICES.

1.1 General Scope of Services. Vendor promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the EV Chargers for the City Hall Parking Structure (“Services”) which are more particularly described in Exhibit “A” attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.

1.2 Goods. Vendor agrees to sell to City and City agrees to purchase the materials and/or equipment (“Goods”) as specified and per the specifications attached hereto and PAUL S. LEON
MAYOR

ALAN D. WAPNER

MAYOR PRO TEM

JIM W. BOWMAN

DEBRA PORADA

DAISY MACIAS

COUNCIL MEMBERS

SHEILA MAUTZ

CITY CLERK

JAMES R. MILHISER

CITY TREASURER

SCOTT OCHOA

CITY MANAGER
72 46700.00100\40935206.1

(BB&K 2024) - 2 - Goods and Services Agreement

incorporated herein as Exhibit “A.” Unless specifically stated otherwise, the Goods shall be new and unused and of the current production year.

2. TERM.

2.1 The term of this Agreement shall be from April 15, 2025, to October 31, 2025, unless earlier terminated as provided herein. Vendor shall provide all Goods and complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the work.

3. FEES AND PAYMENTS.

3.1 Compensation. Vendor shall receive compensation, including authorized reimbursements, for all Goods provided and Services rendered under this Agreement at the rates set forth in Exhibit “A” attached hereto and incorporated herein by reference. The total compensation shall not exceed Five Hundred Fifty-Nine Thousand Four Hundred Eighty-Two Dollars ($559,482) without written approval of City ’s Manager. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.

3.2 Payment of Compensation. Vendor shall submit to City a monthly itemized statement which indicates work completed and hours of Services rendered by Vendor and Goods provided. The statement shall describe the amount of Services and Goods provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the statement. City shall, within 45 days of receiving such statement, review the statement and pay all non-disputed and approved charges thereon.

3.3 Reimbursement for Expenses. Vendor shall not be reimbursed for any expenses unless authorized in writing by City.

3.4 Extra Work. At any time during the term of this Agreement, City may request that Vendor perform Extra Work. As used herein, “Extra Work” means any work which is determined by City to be necessary for the proper completion of the Goods and Services, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Vendor shall not perform, nor be compensated for, Extra Work without written authorization from City ’s Representative.

3.5 Automated Clearing House (“ACH”) payments. It is the City’s policy to pay its consultant invoices via electronic fund transfers through the ACH network. All payments due and owing pursuant to a properly issued and correct invoice or under this Agreement shall be made through electronic ACH transfers, unless otherwise agreed upon by both Parties in writing. Vendor shall provide the City with ACH payment details whereby the City shall initiate the ACH transfers to Vendor in the amount required pursuant to a properly issued and correct invoice or under this Agreement. Each Party shall undertake any and all required actions and execute any required documents, instruments, or agreements required to effectuate the requirements of this Section.

In the event the City erroneously deposits funds into an account, or otherwise deposits funds to which Vendor is not entitled: (1) Vendor shall immediately notify the City and the financial institution; (2) Vendor shall not withdraw any of the funds which were erroneously deposited or to which Vendor is not entitled; and (3) Vendor authorizes both the City and financial institution to 73 46700.00100\40935206.1

(BB&K 2024) - 3 - Goods and Services Agreement

take all actions necessary to correct the error and return to the City all funds erroneously deposited or to which Vendor is not entitled.

4. RESPONSIBILITIES OF VENDOR.

4.1 Control and Payment of Subordinates; Independent Contractor. The Services shall be performed by Vendor or under its supervision. Vendor will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Vendor on an independent contractor basis and not as an employee. Vendor retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Vendor shall also not be employees of City and shall at all times be under Vendor’s exclusive direction and control. Neither City, or any of its officials, officers, directors, employees or agents shall have control over the conduct of Vendor or any of Vendor ’s officers, employees or agents, except as set forth in this Agreement. Vendor shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of providing Goods and Services under this Agreement and as required by law. Vendor shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation insurance.

4.2 Schedule of Services.

4.2.1 Vendor shall perform the Services and provide Goods expeditiously, within the term of this Agreement, and in accordance with the Schedule of Goods and Services set forth in Exhibit “B” attached hereto and incorporated herein by reference (“Performance time”). Upon request of City, Vendor shall provide a more detailed schedule of anticipated performance to meet the Schedule of Goods and Services. Vendor agrees that if the Goods are not provided and/or the Services are not completed within the Performance Time, it is understood, acknowledged and agreed that the City will suffer damage.

4.2.2 Neither City nor Vendor shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non- performing Party. For purposes of this Agreement, such circumstances include a Force Majeure Event. A Force Majeure Event shall mean an event that materially affects a Party’s performance and is one or more of the following: (1) Acts of God or other natural disasters; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the services); (4) strikes and other organized labor action occurring at the site and the effects thereof on the services, only to the extent such strikes and other organized labor action are beyond the control of Vendor and its subcontractors, and to the extent the effects thereof cannot be avoided by use of replacement workers; and (5) pandemics, epidemics or quarantine rest rictions. For purposes of this S ection, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of a public agency applicable to the Agreement.

4.2.3 Should a Force Majeure Event occur, the non-performing Party shall, within a reasonable time of being prevented from performing, give written notice to the other Party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. Force Majeure Events and/or delays, regardless of the Party responsible for the delay, shall not entitle Vendor to any additional compensation. 74 46700.00100\40935206.1

(BB&K 2024) - 4 - Goods and Services Agreement

Notwithstanding the foregoing in this section, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement.

4.3 Conformance to Applicable Requirements. All work prepared by Vendor shall be subject to the approval of City.

4.4 Acceptance. The Goods shall be received subject to City’s inspection and right of rejection. The Goods shall not be considered accepted until inspection, testing and/or use of the Goods is found to be in accordance with the City’s specifications. Final inspection of the Goods shall be at the location specified herein, unless otherwise agreed in writing. If the Goods are found at any time to be defective in material or workmanship, or otherwise not in conformance with specifications, City shall have the right, in addition to any other rights which it may have under warranties or otherwise, to reject such Goods in whole or in part. Rejected Goods shall be held at Vendor’s risk for a reasonable time thereafter and shall be returned or disposed of at Vendor’s expense. No rejected Goods shall be replaced by Vendor without written instruction or authorization from City.

4.5 Coordination of Services . Vendor agrees to work closely with City staff in the performance of Services and shall be available to City ’s staff, consultants and other staff at all reasonable times.

4.6 Standard of Care; Performance of Employees. Vendor shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California.

Vendor represents and maintains that it is skilled in the professional calling necessary to perform the Services. Vendor warrants that all employees and subcontractor s shall have sufficient skill and experience to perform the Services as signed to them. Vendor represents that it, its employees and subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, including a City business license, and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Vendor shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Vendor’s failure to comply with the standard of care provided for herein. Any employee of the Vendor or its sub-Vendors who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Services , a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed by the Vendor and shall not be r e-employed to perform any of the Services provided under this Agreement.

4.7 Warranty. In addition to all warranties which may be provided by law, Vendor warrants that the Goods delivered hereunder shall, (a) be free from defect of material or workmanship and conform strictly to the specifications, drawings, or sample specified or furnished; (b) conform to drawings, plans, specifications, samples or other descriptions furnished, specified, accepted or approved by City ; and (c) be merchantable and fit for the purposes intended. The warranty shall be for a period of one (1) year, or such longer period as provided by a manufacturer’s warranty or as agreed to by Vendor and City, from the date of final written acceptance of the Goods by City. This warranty shall survive any inspection, delivery, acceptance, or payment by City of the Goods. Vendor, at its own expense, shall repair or replace, at the option of City, any defective Goods within two (2) business days after receipt of notice from City or within four (4) hours in case of emergency, as determined by City. Vendor also warrants 75 46700.00100\40935206.1

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that the Goods are free and clear of all liens and encumbrances whatsoever, that Vendor is conveying good and marketable title to same, and that Vendor owns or has a valid license for all of the proprietary technology and intellectual property incorporated within the Goods. Vendor agrees to indemnify, defend and hold City harmless against any and all third party claims resulting from the breach or inaccuracy of any of the foregoing warranties.

4.8 Reserved.

4.9 Disputes. Should any dispute arise respecting the true value of any work done, of any work omitted, or of any extra work which Vendor may be required to do, or respecting the size of any payment to Vendor during the performance of this Contract, Vendor shall continue to perform the Work while said dispute is decided by the City. If Vendor disputes the City’s decision, Vendor shall have such remedies as may be provided by law.

4.10 Laws and Regulations; Employee/Labor Certifications . Vendor shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner a ffecting its performance under this Agreement , including all Cal/OSHA requirements, and shall give all notices required by law. Vendor shall be liable for all violations of such laws and regulations in connection with this Agreement. If the Vendor performs any work knowing it to be contrary to such laws, rules and regulations and without giving written notice to the City, Vendor shall be solely responsible for all costs arising therefrom. City is a public entity of the State of California subject to certain provisions of the Health & Safety Code, Government Code, Public Contract Code, and Labor Code of the State. It is stipulated and agreed that all provisions of the law applicable to the public contracts of a municipality are a part of this Agreement to the same extent as though set forth herein and will be complied with. These include but are not limited to the payment of prevailing wages, the stipulation that eight (8) hours’ labor shall constitute a legal day’s work and that no worker shall be permitted to work in excess of eight (8) hours during any one calendar day except as permitted by law. Vendor shall defend, indemnify and hold City, its officials, directors, officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.

4.10.1 Employment Eligibility; Vendor. By executing this Agreement, Vendor verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time. Such requirements and restrictions include, but are not limited to, examination and retention of documentation confirming the identity and immigration status of each employee of the Vendor. Vendor also verifies that it has not committed a violation of any such law within the five (5) years immediately preceding the date of execution of this Agreement, and shall not violate any such law at any time during the term of the Agreement. Vendor shall avoid any violation of any such law during the term of this Agreement by participating in an electronic verification of work authorization program operated by the United States Department of Homeland Security, by participating in an equivalent federal work authorization program operated by the United States Department of Homeland Security to verify information of newly hired employees, or by some other legally acceptable method. Vendor shall maintain records of each such verification, and shall make them available to the City or its representatives for inspection and copy at any time during normal business hours. The City shall not be responsible for any costs or expenses related to Vendor ’s compliance with the requirements provided for in Section 4.10 or any of its sub-sections. 76 46700.00100\40935206.1

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4.10.2 Employment Eligibility; Subcontractors, and Consultants . To the same extent and under the same conditions as Vendor , Vendor shall require all of its subcontractors, and consultants performing any work relating to this Agreement to make the same verifications and comply with all requirements and restrictions provided for herein.

4.10.3 Employment Eligibility; Failure to Comply . Each person executing this Agreement on behalf of Vendor verifies that they are a duly authorized officer of Vendor, and understands that any of the following shall be grounds for the City to terminate the Agreement for cause: (1) failure of Vendor or its subcontractors, or consultants to meet any of the requirements provided for in Sections 4 .10.1 or 4. 10.2; (2) any misrepresentation or material omission concerning compliance with such requirements (including in those verifications provided to the Vendor under Section 4.10.2); or (3) failure to immediately remove from this contract any person found not to be in compliance with such requirements.

4.10.4 Labor Certification. By its signature hereunder, Vendor certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.

4.10.5 Equal Opportunity Employment . Vendor represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor , employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non -discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Vendor shall also comply with all relevant provisions of City’s Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.

4.10.6 Air Quality. Vendor must fully comply with all applicable laws, rules and regulations in furnishing or using equipment and/or providing services, including, but not limited to, emissions limits and permitting requirements imposed by the California Air Resources Board (CARB). Vendor shall specifically be aware of the CARB limits and requirements ’ application to “portable equipment”, which definition is considered by CARB to include any item of equipment with a fuel-powered engine. Vendor shall indemnify City against any fines or penalties imposed by CARB or any other governmental or regulatory agency for violations of applicable laws, rules and/or regulations by Vendor, its subcontractors, or others for whom Vendor is responsible under its indemnity obligations provided for in this Agreement.

4.10.7 Water Quality.

4.10.7.1 Management and Compliance. To the extent applicable, Vendor’s Services must account for, and fully comply with, all local, state and federal laws, rules and regulations that may impact water quality compliance, including, without limitation, all applicable provisions of the Federal Water Pollution Control Act (33 U.S.C. §§ 1300); the California Porter-Cologne Water Quality Control Act (Cal Water Code §§ 13000- 14950); laws, rules and regulations of the Environmental Protection Agency, the State Water Resources Control Board and the Santa Ana Regional Water Quality Control Board; the City’s ordinances regulating discharges of storm water; and any and all regulations, policies, or permits issued pursuant to any such authority regulating the discharge of polluta nts, as that term is used in the Porter -Cologne Water Quality Control Act, to any ground or surface water in the State. 77 46700.00100\40935206.1

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4.10.7.2 Liability for Non -Compliance. Failure to comply with the laws, regulations and policies described in this Section is a violation of law that may subject Vendor or City to penalties, fines, or additional regulatory requirements. Vendor shall defend, indemnify and hold the City, its directors, officials, officers, employees, volunteers and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from and against any and all fines, penalties, claims or other regulatory requirem ents imposed as a result of Vendor ’s non - compliance with the laws, regulations and policies described in this Section, unless such non - compliance is the result of the sole negligence or willful misconduct of the City, its officials, officers, agents, employees or authorized volunteers.

4.10.7.3 Training. In addition to any other standard of care requirements set forth in this Agreement, Vendor warrants that all employees and subcontractor s shall have sufficient skill and experience to perform the Services assigned to them without impacting water quality in violation of the laws, regulations and policies described in this Section. Vendor further warrants that it, its employees and subcontractor s will receive adequate training, as determined by City, regarding the requirements of the laws, regulations and policies described in this Section as they may relate to the Services provided under this Agreement. Upon request, City will provide Vendor with a list of training programs that meet the requirements of this paragraph.

5. P

ROJECT MANAGEMENT

5.1 City’s Representative . The City hereby designates Daniel Beers , Design & Construction Director, or his or her designee, to act as its representative for the performance of this Agreement (“City’s Representative”). City’s Representative shall have the power to act on behalf of the City for all purposes under this Agreement. Vendor shall not accept direction or orders from any person other than the City’s Representative or his or her designee.

5.2 Vendor’s Representative. Vendor hereby designates Brendan O’Donnell, Project Manager or his or her designee, to act as its representative for the performance of this Agreement (“Vendor’s Representative”). Vendor’s Representative shall have full authority to represent and act on behalf of the Vendor for all purposes under this Agreement. The Vendor’s Representative shall supervise and direct the Services, using his best skill and attention, and shall be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all work required under this Agreement.

6. INSURANCE.

6.1 Time for Compliance. Vendor shall not commence w ork under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this Section. In addition, Vendor shall not allow any subcontractor to commence work on any subcontract until it has provided evidence satisfactory to the City that the subcontractor has secured all insurance required under this Section.

6.2 Minimum Requirements. Vendor shall, at its expense, procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Agreement by the Vendor, its agents, representatives, employees or subcontractor s. Vendor shall also require all of its subcontractor s to procure and maintain the same insurance for the duration of the Agreement. Such insurance shall meet at least the following minimum levels of coverage:
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6.2.1 Minimum Scope of Insurance. Coverage shall be at least as broad as the latest version of the following: (1) General Liability : Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001); (2) Automobile Liability : Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto); and (3) Workers’ Compensation and Employer’s Liability: Workers’ Compensation insurance as required by the State of California and Employer ’s Liability Insurance. The policy shal l not contain any exclusion contrary to the Agreement, including but not limited to endorsements or provisions limiting coverage for (1) contractual liability (including but not limited to ISO CG 24 26 or 21 29); or (2) cross liability for claims or suits by one insured against another.

6.2.2 Minimum Limits of Insurance. Vendor shall maintain limits no less than: (1) General Liability : $2,000,000 MINIMUM per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with general aggregate limit is used including, but not limited to, form CG 2503, either the general aggregate limit shall apply separately to this Agreement/location or the general aggregate limit shall be twice the required occurrence limit; (2) Automobile Liability: $2,000,000 MINIMUM per accident for bodily injury and property damage; and (3) Workers’ Compensation and Employer’s Liability: Workers’ Compensation limits as required by the Labor Code of the State of California. Employer’s Liability limits of $1,000,000 MINIMUM per accident for bodily injury or disease. Defense costs shall be paid in addition to the limits.

6.2.3 Notices; Cancellation or Reduction of Coverage. At least fifteen (15) days prior to the expiration of any such policy, evidence showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or materially reduced, Vendor shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, the City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by the City will be promptly reimbursed by Vendor or the City may withhold amounts sufficient to pay premium from Vendor payments. In the alternative, the City may suspend or terminate this Agreement.

6.2.4 Additional Insured. The City of Ontario, its directors, officials, officers, employees, agents, and volunteers shall be named as a dditional insureds on Vendor ’s and its subcontractors’ policies of commercial general liability and automobile liability insurance using the endorsements and forms specified herein or exact equivalents.

6.3 Insurance Endorsements . The insurance policies shall contain the following provisions, or Vendor shall provide endorsements on forms supplied or approved by the City to add the following provisions to the insurance policies:

6.3.1 General Liability. The general liability policy shall include or be endorsed (amended) to state that: (1) using ISO CG forms 20 10 and 20 37, or endorsements providing the exact same coverage, the City of Ontario, its directors, officials, officers, employees, agents, and volunteers shall be covered as additional insured with respect to the Services or ongoing and complete operations performed by or on behalf of the Vendor , including materials, parts or equipment furnished in connection with such work; and (2) using ISO form 20 01, or endorsements providing the exact same coverage, the insurance coverage shall be primary insurance as respects the City, its directors, officials, officers, employees, agents, and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Vendor ’s scheduled underlying 79 46700.00100\40935206.1

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coverage. Any excess insurance shall contain a provision that such coverage shall also apply on a primary and noncontributory basis for the benefit of the City, before the City ’s own primary insurance, deductible, or self-insurance shall be called upon to protect it as a named insured. Any insurance, deductible, or self-insurance maintained by the City, its directors, officials, officers, employees, agents, and volunteers shall be excess of the Vendor ’s insurance and shall not be called upon to contribute with it in any way. Notwithstanding the minimum limits set forth in Section 6.2.2, any available insurance proceeds in excess of the specified minimum limits of coverage shall be available to the parties required to be named as additional insureds pursuant to this Section 6.3.1.

6.3.2 Automobile Liability . The automobile liability policy shall include or be endorsed (amended) to state that: (1) the City, its directors, officials, officers, employees, agents, and volunteers shall be covered as additional insureds with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Vendor or for which the Vendor is responsible; and (2) the insurance coverage shall be primary insurance as respects the City, its directors, officials, officers, employees, agents, and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Vendor ’s scheduled underlying coverage. Any insurance , deductible, or self-insurance maintained by the City, its directors, officials, officers, employees, agents, and volunteers shall be excess of the Vendor ’s insurance and shall not be called upon to contribute with it in any way. Policy shall contain or be endorsed to contain such provisions. Notwithstanding the minimum limits set forth in Section

6.2.2, any available insurance proceeds in excess of the specified minimum limits of coverage shall be available to the parties required to be named as additional ins ureds pursuant to this Section 6.3.2.

6.3.3 Workers’ Compensation and Employer’s Liability Coverage . The insurer shall agree to waive all rights of subrogation against the City, its directors, officials, officers, employees, agents, and volunteers for losses paid under the terms of the insurance policy which arise from work performed by the Vendor.

6.3.4 All Coverages. Each insurance policy required by this Agreement shall be endorsed to state that: (A) coverage shall not be suspended, voided, reduced or canceled except after thirty (30) days (10 days for nonpayment of premium) prior written notice by certified mail, return receipt requested, has been given to the City; and (B) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to the City , its directors, officials , officers, employees, agents, and volunteers. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officials, officers, employees, agents and volunteers, or any other additional insureds.

6.4 Separation of Insureds; No Special Limitations; Waiver of Subrogation. All insurance required by this Section shall contain standard separation of insureds provisions. In addition, such insurance shall not contain any special limitations on the scope of protection afforded to the City, its directors, officials, officers, employees, agents, and volunteers.

Requirement of specific coverage or minimum limits contained in this Section are not intended as a limitation on coverage, limits, or other requirement , or a waiver of any coverage normally provided by any insurance. All policies shall waive any right of subrogation of the insurer against the City, its officials, officers, employees, agents, and volunteers, or any other additional insureds, or shall specifically allow Vendor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Vendor hereby waives its own right of recovery against City, its officials, officers, employees, agents , and volunteers, or any other 80 46700.00100\40935206.1

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additional insureds, and shall require similar written express waivers and insurance clauses from each of its subcontractors.

6.5 Deductibles and Self -Insurance Retentions . Any deductibles or self -insured retentions must be declared to and approved by the City. Vendor shall guarantee that, at the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its directors, officials, officers, employees, agents, and volunteers; or (2) the Vendor shall procure a bond guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses.

6.6 Subcontractor Insurance Requirements . Vendor shall not allow any subcontractors to commence work on any subcontract relating to the work under the Agreement until they have provided evidence satisfactory to the City that they have secured all insurance required under this Section. If requested by Vendor , the City may approve different scopes or minimum limits of insurance for particular subcontractor s. The Vendor and the City shall be named as additional insureds on all subcontractors’ policies of Commercial General Liability using ISO form 20 38, or coverage at least as broad.

6.7 Acceptability of Insurers . Insurance is to be placed with insurers with a current A.M. Best’s rating no less than A:VIII, licensed to do business in California, and satisfactory to the City.

6.8 Verification of Coverage . Vendor shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Agreement on forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by the City if requested. All certificates and endorsements must be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, at any time.

6.9 Reporting of Claims. Vendor shall report to the City, in addition to Vendor’s insurer, any and all insurance claims submitted by Vendor in connection with the Services under this Agreement.

7. INDEMNIFICATION.

7.1 Scope of Indemnity. To the fullest extent permitted by law, Vendor shall defend, indemnify and hold the City, its officials, employees, agents and volunteers free and harmless from any and all claims, demands, causes of action, suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements, loss, damage or injury of any kind, in law or equity, regardless of whether the allegations are false, fraudulent, or groundless, to property or persons, including wrongful death, (collectively, “Claims”) in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Vendor, its officials, officers, employees, subcontractors, consultants or agents arising out of or in connecti on with the Services, the Goods or this Agreement, including without limitation the payment of all expert witness fees, attorneys’ fees and other related costs and expenses. Notwithstanding the foregoing, to the extent required by Civil Code section 2782, Vendor’s indemnity obligation shall not apply to such loss or damage which is caused by the sole negligence or willful misconduct of the City.
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7.2 Additional Indemnity Obligations . Vendor shall defend, with counsel of City’s choosing and at Vendor’s own cost, expense and risk, any and all Claims covered by this section that may be brought or instituted against City or its officials, employees, agents and volunteers.

In addition, Vendor shall pay and satisfy any judgment, award or decree that may be rendered against City or its officials, employees, agents and volunteers as part of any such claim, suit, action or other proceeding. Vendor shall also reimburse City for the cost of any settlement paid by City or its officials, employees, agents and volunteers as part of any such claim, suit, action or other proceeding. Such reimbursement shall include payment for City’s attorney’s fees and costs, including expert witness fees. Vendor shall reimburse City and its officials, employees, agents and volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Vendor ’s obligation to indemnify shall survive expiration or termination of this Agreement, and shall not be restricted to insurance proceeds, if any, received by the City, its officials, employees, agents and volunteers.

8. C

ALIFORNIA LABOR CODE

8.1 Prevailing Wages. Vendor is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “ public works ” and “maintenance” projects. If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, If the total compensation is $1,000 or more, Vendor agrees to fully comply with such Prevailing Wage Laws. City shall provide Vendor with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Vendor shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Vendor’s principal place of business and at the project si te. Vendor shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It is the intent of the parties to effectuate the requirements of sections 1771, 1774, 1775, 1776, 1777.5, 1813, and 1815 of the Labor Code within this Agreement, and Vendor shall therefore comply with such Labor Code sections to the fullest extent required by law.

8.2 Registration. Since the Services are being performed as part of an applicable “public works ” or “maintenance” project, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Vendor and all subcontractors must be registered with the Department of Industrial Relations. Vendor shall maintain registration for the duration of this Agreement and require the same of any subcontractor . Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 s hall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1.

8.3 Compliance Monitoring. This Agreement may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Vendor’s sole responsibility to comply with all applicable registration and labor compliance requirements. Any stop orders issued by the Department of Industrial Relations against Vendor or any subcontractor that affect Vendor ’s performance of Services, including any delay, shall be Vendor ’s sole responsibility. Any delay arising out of or resulting fr om such stop orders shall be considered Vendor caused delay and shall not be compensable by the City. Vendor shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim 82 46700.00100\40935206.1

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or liability arising out of stop orders issued by the Department of Industrial Relations against Vendor or any subcontractor.

9. SAFETY.

Vendor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its s ervices, the Vendor shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate l ife protection and life saving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.

10. A
CCOUNTING RECORDS.

Vendor shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Vendor shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Vendor shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement.

11. TERMINATION OF AGREEMENT.

11.1 Grounds for Termination. City may, by written notice to Vendor, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Vendor of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Vendor shall be compensated only for those Services and Goods which have been adequately rendered to City, and Vendor shall be entitled to no further compensation. If terminated for cause because the Vendor refused or failed to deliver the Goods , the City may obtain Goods by whatever method it may deem expedient. If City’s cost of obtaining the Goods, including compensation for additional managerial and administrative services, will exceed the unpaid balance of the Goods , Vendor will be liable for and will pay the difference to City. Vendor may not terminate this Agreement except for cause.

The rights and remedies of the City provided in this S ection shall not be exclusive and are in addition to any other rights and remedies provided by law, equity or under this Agreement.

11.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Vendor to provide all finished or unfinished documents and data and other information of any kind prepared by Vendor in connection with the performance of the Services under this Agreement. Vendor shall be required to provide such document and other information within fifteen (15) days of the request.

11.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, goods and services similar to those terminated. 83 46700.00100\40935206.1

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12. GENERAL PROVISIONS.

12.1 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:

Vendor:

BodEV, Inc.
2581 Union Ave
La Habra, CA 90631
Attn: Brendan O’Donnell
City:

City of Ontario
303 East “B” Street
Ontario, CA 91764-4196
Attn: Dan Beers, Principal Construction Project Manager Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate not ice on the date actual notice occurred, regardless of the method of service.

12.2 Subcontracting. Vendor shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City.

Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.

12.3 Governing Law; Government Code Claim Compliance. This Agreement shall be governed by the laws of the State of California. Venue shall be in San Bernardino County. In addition to any and all contract requirements pertaining to notices of and requests for compensation or payment for extra work, disput ed work, claims and/or changed conditions, Vendor must comply with the claim procedures set forth in Government Code sections 900 et seq. prior to filing any lawsuit against the City. Such Government Code claims and any subsequent lawsuit based upon the Government Code claims shall be limited to those matters that remain unresolved after all procedures pertaining to extra work, disputed work, claims, and/or changed conditions have been followed by Vendor. If no such Government Code claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified herein, Vendor shall be barred from bringing and maintaining a valid lawsuit against the City.

12.4 Time of Essence. Time is of the essence for each and every provision of this Agreement.

12.5 City’s Right to Employ Other Vendors. City reserves right to employ other Vendors in connection with the Goods and Services provided under this Agreement.

12.6 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.

12.7 Assignment or Transfer. Vendor shall not assign, hypothecate or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates 84 46700.00100\40935206.1

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or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.

12.8 Construction; References; Captions . Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Vendor include all personnel, employees, agents, and subcontractors of Vendor, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content or intent of this Agreement.

12.9 Amendment; Modification. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

12.10 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel or otherwise.

12.11 No Third Party Beneficiaries. Except to the extent expressly provided for in Section

12.7, there ar e no intended third party beneficiaries of any right or obligation assumed by the Parties.

12.12 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

12.13 Prohibited Interests. Vendor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Vendor , to solicit or secure this Agreement. Further, Vendor warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Vendor , any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Vendor further agrees to file, or shall cause its employees or subcontractors to file, a Statement of Economic Interest with the City ’s Filing Officer as required under state law in the performance of the Services. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

12.14 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.

12.15 Authority to Enter Agreement . Vendor has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.
85 46700.00100\40935206.1

(BB&K 2024) - 15 - Goods and Services Agreement

12.16 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.

12.17 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both parties.

SIGNATURES ON NEXT PAGE

86 46700.00100\40935206.1

(BB&K 2024) - 16 - Goods and Services Agreement

SIGNATURE PAGE FOR GOODS & SERVICES AGREEMENT

BETWEEN THE CITY OF ONTARIO
AND BODEV, INC.

IN WITNESS WHEREOF, the Parties have entered into this Agreement as of the day and year first above written.

CITY OF ONTARIO BodEV, INC.

By:

Its:

Printed Name:

By:

Its:

Printed Name:

[If Corporation, TWO SIGNATURES,
President OR Vice President AND
Secretary OR Treasurer REQUIRED]

Approved By:

Tito Haes
Executive Director Public Works
Approved as to Form:

_____________________________________
Best Best & Krieger LLP
City Attorney

Attested By:

Assistant City Clerk

87 EXHIBIT “A”

SCOPE OF SERVICES

88 46700.00100\40935206.1

(BB&K 2024) Exhibit B-1 Goods and Services Agreement

EXHIBIT “B”

SCHEDULE OF SERVICES
APRIL 15, 2025 TO OCTOBER 31, 2025

89 46700.00100\40935206.1

(BB&K 2024) Exhibit C-1 Goods and Services Agreement

EXHIBIT “C”

COMPENSATION
NTE AMOUNT OF $559,482

90 Department: Financial Services
Prepared By: Cruz Torres
Staff Member Presenting: Armen Harkalyan,
Executive Director of Finance
Reviewed By: Claudia Hernandez, Matthew
Hernandez
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 6
SUBJECT:

APPROVAL OF VARIOUS PROFESSIONAL SERVICES AGREEMENTS TO PROVIDE

SPECIAL TAX CONSULTING AND ADMINISTRATIVE SERVICES, COMMUNITY

FACILITIES DISTRICT FORMATION AND BOND COUNSEL SERVICES, APPRAISAL

AND HOUSING MARKET ECONOMIST SERVICES

CITY OF ONTARIO
Agenda Report
April 15, 2025
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Ensure the Development of a Well Planned, Balanced, and Self-Sustaining Community in Ontario Ranch
Operate in a Businesslike Manner
FISCAL IMPACT:

There is no ﬁscal impact to the General Fund with the proposed Professional Services Agreements. Special tax consulting services, community facilities district formations and costs associated with bond issuances will be funded with special tax revenues, developer deposits, or bond proceeds. Agreements will be for a term of three years, with an optional renewal period of two additional years. The three-year collective compensation for the proposed agreements is a not- to-exceed amount of $2,546,000. At the City's discretion to exercise the two additional years, the not-to-exceed amount is $4,538,830.

BACKGROUND & ANALYSIS:

The City administers the following Parkway Maintenance Districts and Street Lighting Maintenance Districts located within Old Model Colony providing landscaping and street lighting maintenance services:

Parkway Maintenance District No. 1 (includes 6 maintenance areas) Parkway Maintenance District No. 2 (includes 6 maintenance areas) 91 Parkway Maintenance District No. 3 (includes 15 maintenance areas in zone 1 and 3 maintenance areas in zone 2)
Parkway Maintenance District No. 4 (includes 6 maintenance areas) Street Lighting Maintenance District No. 1 (includes 2 zones) Street Lighting Maintenance District No. 2 (includes 12 maintenance areas) In addition, Staﬀ is responsible for the administration of sixty community facilities districts mostly located in Ontario Ranch. The administration of special districts involves managing operations, finances, services and compliance, requiring specialized expertise provided by consultants.

Furthermore, with the expected continued growth in Ontario Ranch and potential projects in the Old Model Colony the City will need to continue community facilities district formations, bond ﬁnancing, and other related services to fund municipal services and public infrastructure.

Therefore, it
is recommended that the City secure the services of experienced consultants specializing in these areas.

In December 2024, the City solicited three requests for proposals for Special Tax Consulting and Administrative Services; Community Facilities District Formation and Bond Counsel Services; and Appraisal and Housing Market Economist Services. The City received a total of thirteen proposals and Staﬀ evaluated each proposal based on experience, staﬀ qualiﬁcations, high quality of past performance with the City, and competitiveness of fees. Staﬀ has selected and recommends awarding the following professional services agreements:

Special Tax Consulting and Administrative Services
Community Facilities District Formation - Goodwin Consulting Group of Sacramento, CA Maintenance Districts - Willdan Financial Services, of Temecula, CA

Community Facilities District Formation and Bond Counsel Services Orrick, Herrington & Sutcliffe, LLP of Los Angeles, CA

Housing Market Economist Services
Empire Economics, Inc. of Capistrano Beach, CA

Real Estate Appraisal Services
Kitty Siino and Associates, of Tustin, CA
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Department: Utilities
Prepared By: Andy Marquez
Staff Member Presenting: Scott Burton, Utilities
General Manager
Reviewed By: Dennice Raygoza, Albert G
Gastelum, Michael Sigsbee
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 7
SUBJECT:

AN AMENDMENT TO THE CONSTRUCTION CONTRACT WITH G.M. SAGER CONSTRUCTION INC. FOR ON-CALL AND EMERGENCY UTILITY TRENCH PAVING

SERVICES

CITY OF ONTARIO
Agenda Report
April 15, 2025
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

That the City Council approve and authorize the City Manager, or designee, to execute Amendment No. 2 to the On-Call Services Contract with G.M. Sager Construction Inc., of Pomona, California, for On-Call and Emergency Utility Trench Paving services for a revised total not- to-exceed aggregate amount of $2,035,170 and a term from September 6, 2022 through June 30, 2026.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Invest in the City's Infrastructure (Water, Streets, Sewers, Parks, Storm Drains and Public Facilities)
FISCAL IMPACT:

The Fiscal Year 2024-25 Budget includes appropriations from the Water and Sewer Operating Fund for these on-call services. Additional appropriations will be included in the respective fiscal year. There is no impact to the General Fund.

Proposed Amendment No. 2 will increase the existing Contract amount by $211,600 for a total revised Contract aggregate amount of not-to-exceed $2,035,170. Actual expenses will be based on actual work performed.

BACKGROUND & ANALYSIS:

The Contract for repair and repaving of utility trenches throughout the City is essential for maintaining safe and functional roadways following planned and emergency water and sewer repairs. Due to increases in the size of necessary repairs associated with utility trench site requirements, the overall cost of trench repairs has increased. Added costs include additional traﬃc control measures and the depth of a trench. A funding adjustment to eﬀectively continue providing current and anticipated services is required.

This Contract provides for the repair and repaving of utility trenches at various locations 200
throughout the City on an as-needed basis. The work performed under this Contract consists of trench repairs associated with work performed by Staﬀ on water main and residential services, sewer mains, and various water
facilities. Trench repairs are coordinated with the Contractor following utility work to minimize disruption within the public right-of-way.

In June 2022, the City solicited bids for On-Call and Emergency Utility Trench Paving, and six bids were received through the City's electronic bid management system in response to Bid No. 1541, OMUC Contract No. UT-1068. City Council approved the Contract on September 6, 2022.

Staﬀ recommends approval of Amendment No. 2
to the On-Call Services Contract with
G.M. Sager Construction Inc. as they have performed this type of work in the past, including the previous annual contract, and is familiar with the City's requirements and has the ability to perform the work in a timely manner. 201
[INSERT CITY LETTERHEAD]
AMENDM
ENT NO. 2

TO THE ON-CALL SERVICES

FOR UTILITY TRENCH PAVING AGREEMENT

BETWEEN THE CITY OF ONTARIO AND
G.M. SAGER CONSTRUCTION CO, INC.

1. Parties and Date.

This Amendment No. 2 (“Amendment No. 2”) is made and entered into as of this ____ day of _____, 2025 by and between the City of Ontario (“City”) and G.M. Sager Construction Co, Inc. (“Contractor”). City and Cont ractor are so
metimes individually referred to as “Party” and
collectively as “Parties.”

2. Recitals.

2.1. Agreement. The Parties entered into an agreement entitled “On-Call Services for Utility Trench Paving” dated September 6, 2022 (“Original Agreement”), which is incorporated herein by reference. The Parties entered into Amendment No. 1 dated February 7, 2023 (“Amendment No. 1”), which is incorporated herein by reference. Amendment No. 1 added additional services for the Ontario Municipal Services Center Temporary Modular Purchase, and increased the total not-to-exceed (“NTE”) amount by One Hundred Twenty Eight Thousand, Fifty Eight and 0/100 Dollars ($128,058) to One Million, Eight Hundred Twenty-Three Thousand, Five Hundred Seventy and 0/100 Dollars ($1,823,570).

2.2. Amendment Purpose. The Parties desire to amend the Existing Agreement to increase the NTE amount by Two Hundred Eleven Thousand, Six Hundred and 0/100 Dollars ($211,600) to accommodate Work required by the City through June 30th, 2026.

2.3. Existing Agreement. This Amendment No. 2, is authorized pursuant to Article 3 of the agreement.

PAUL S. LEON
MAYOR
ALAN D. WAPNER

MAYOR PRO TEM
JIM W. BOWMAN

DEBRA PORADA

DAISY MACIAS

COUNCIL MEMBERS

SHEILA MAUTZ

CITY CLERK
JAMES R. MILHISER

CITY TREASURER

SCOTT OCHOA

CITY MANAGER
202

Page 2 of 3 ends

3. Terms.

ARTICLE 3. CONTRACT PRICE. The City shall pay to the
Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable ta xes and costs, the not to exceed sum of Two Million, Thirty-Five Thousand, One Hundred Seventy and 0/100 Dollars ($2,035,170), hereinafter the Contract Price. Payment shall be made as set forth in the General Conditions. The maximum compensation for the Work to be provided pursuant to each Task Order shall be set forth in the relevant Task Order.

3.2. Continuing Effect of Agreement. Except as amended by this Amendment No. 2, all other provisions of the Existing Agreement remain in full force and effect and shall govern the actions of the p arties under this Amendment No. 2. From and after the date of th is Amendment No. 2, whenever the term “Agreement” appears in th e Existing Agr eement, it shall mean the Existing Agreement as amended by this Amendment No. 2.

3.3. Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each receiv ed adequate and independent consideration for the perfor mance of the obligations they have undertaken pursuant to this Amendment No. 2.

3.4. Severability. If any po rtion of this Amendment No. 2 is declared invalid, illegal, or otherwise unenforceable b y a court of competen t jurisdiction, the remaining provisions shall continue in full force and effect.

3.5. Integration. This Amendment represents the entirety of the Parties’ understanding relating to th e subject of this Amendment, includin g written or verbal communications between the Parties, which shall have no relevance u nless expressly incorporated herein. This is an integrated amendment. [SIGNATURES ON THE FOLLOWING PAGE]

3.1 Amendment. Article 3 of the agreement is hereby amended in its entirety to read as follows:
203

Page 3 of 3 ends

SIGNATURE PAGE FOR AMENDMENT NO. 2 TO THE

ON-CALL SERVICES FOR UTILITY TRENCH PAVING AGREEMENT

BETWEEN THE CITY OF ONTARIO
AND G.M. SAGER CONSTRUCTION CO, INC.

IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 2 as of the day and year first above written.

CITY OF ONTARIO
Approved By:
_____________________________________
Scott Ochoa
City Manager
Approved as to Form
_____________________________________
Best Best & Krieger LLP
City Attorney
Attested By:
_____________________________________
City Clerk
G.M. SAGER CONSTRUCTION CO,
INC.
[If Corporation, TWO SIGNATURES,
President, OR Vice President AND Secretary
OR Treasurer REQUIRED]
By: _________________________________
Its: _________________________________
Printed Name: ________________________
By: _________________________________
Its: _________________________________
Printed Name: ________________________
204
Department: Community Life & Culture
Prepared By: Danielle Guevara
Department:

Prepared By: Danielle Guevara
Staff Member Presenting: Helen McAlary,
Executive Director Community Life and Culture
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 8
SUBJECT:

APPROVAL OF A SOLE SOURCE PURCHASE TO PROVIDE A CUSTOM DESIGNED

DRONE SHOW FOR TWO ANNUAL EVENTS

CITY OF ONTARIO
Agenda Report
April 15, 2025
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Operate in a Businesslike Manner
Encourage, Provide or Support Enhanced Recreational, Educational, Cultural and Healthy City Programs, Policies and Activities
FISCAL IMPACT:

The Fiscal Year 2024-25 Operating Budget includes appropriations in the General Fund related to the production of the Independence Day and Holiday Tree Lighting shows. The approval of a sole source vendor to provide a custom designed drone show for the annual Independence Day and Holiday Tree Lighting celebrations does not commit the City to any speciﬁc level of future expenditures with this vendor. Future expenditures for the vendor will not exceed the Recreation & Community Services Department's operating budget established by the City Council.

BACKGROUND & ANALYSIS:

The Recreation & Community Services Department hosts free annual celebrations for Independence Day and the Holiday Tree Lighting, bringing the community together to celebrate. These events feature several entertainment elements, including a 10-minute drone show and attract over 25,000 spectators each year.

The drone operator is responsible for providing
all pre-production services, music production and choreography, FAA licensing, and a specialized crew. Due to the high level of expertise required, strict safety regulations, and the City's insurance compliance standards, including FAA insurance, only a limited number of vendors in the region can provide this service.

Ontario Municipal Code Section 2-6.23(b) and 2-6.23(c) authorizes the Purchasing Oﬃcer to make 205
purchases without following the standard purchasing procedures whenever (1) the goods can be obtained from only one source, and/or (2) a breakdown in machinery, equipment, or an essential services which requires immediate purchase of supplies and equipment to protect public health, safety, and welfare generates circumstances that a competitive bid would thus be undesirable, impractical, or impossible.

Grizzly Entertainment has successfully completed ﬁve events with the City since October 2023.

These events include the Trunk or Treat Event in both October 2023 and 2024, the Holiday Tree Lighting Event in December 2023 and 2024, and the Fireworks Spectacular Event in July 2024.

Staﬀ recommends the approval of this vendor as a Sole Source based on their specialized services and previous experience providing services for the City of Ontario. 206

sUAS Service Agreement
This Small Unmanned Aerial System Service Agreement (“sUAS Agreement”) is entered into this Feb 12, 2025 (the “Effective Date”), by and between Grizzly Entertainment LLC ("GRZ"), of 1135 Passage Street, Palm Springs, CA 92262 and CITY OF ONTARIO ("COO"), of 1265 S Palmetto Avenue, Ontario, CA 91762 ("Customer") (collectively referred to as the “Parties”).

WHEREAS GRZ provides photography, videography, and data collection services (“sUAS Services”) using unmanned aerial vehicles (“UAVs”), also known as “drones”.

WHEREAS GRZ will provide sUAS Services and license or provide rights in its copyright protected photographs, video and/or data to Customer under the terms set forth in this Agreement.

WHEREAS GRZ provides sUAS Services and operates under FAA Part 107 Regulations, COAs, waivers and permissions issued by the FAA and/or Section 44807 Exemptions, as required.

WHEREAS GRZ is insured for liability and property damage coverage for its sUAS Services.

WHEREAS Customer wishes to hire GRZ to provide sUAS Services and license or transfer rights to certain photographs, video and/or data from GRZ as provided herein.

THEREFORE, in consideration of the mutual agreements hereinafter contained, and other good and valuable consideration the receipt and suﬃciency of which are hereby acknowledged, the Parties hereto, intending legally to be bound hereby, agree as follows:

1sUAS Services
GRZ will perform the following Services for Customer at Westwind Park:
a. Provide drones to perform a drone light show. (UP TO 500 drones) b. Provide a sample of animations for pre-approval.
c. Provide pilots and animators to operate the show.
d. FAA Regulatory Compliance & Reporting.

Zoho Sign Document ID: 4AC8C85E5-9SXX47TIHYRCXAPPLDSAZ1LROPOD7KOV_CW2-RCIVZG 2071148

e. Any location changes must be approved by GRZ prior to agreement completion. f. Other: N/A
2Fee
Customer will pay GRZ a ﬂat fee of SIXTY THOUSAND ($ 60,000.00) (“Flat Fee”) for the sUAS Services and all other services contemplated under the Agreement which includes, operating the UAV, and all other costs or fees associated with licensing, copyright etc.

2.1Animation Design and Lighting Changes
No animation changes can be made 7 days prior to the show.

If, however, a change is required for:
a. 1 formation change: GRZ will need to be notiﬁed 8 working days prior to the show. The Cost per formation change would be $1000.
b. Every other additional formation, an additional 5 working days notiﬁcation would be required. The Cost per formation change would be $1000.

2.2Other Fees
-
3 sUAS Service Deliverables
GRZ will license the following item as set forth in the Copyright Agreement set forth in Addendum A, to COO as part of its sUAS Services:

A. Sample animation for approval before proceeding with the ﬁnal animation.

B. One Drone Show with maximum 8 animations for the duration of 10‐12 minutes maximum.

C. Other: N/A
4 sUAS Service Dates
Customer understands that there are variables, some outside GRZ’s control, which affect GRZ’s ability to ﬂy on any given date and time at any given ﬂight location. These variables include, but are not limited to, compliance with FAA regulations, conditions, and limitations, third party permissions, weather conditions and safety issues.

Zoho Sign Document ID: 4AC8C85E5-9SXX47TIHYRCXAPPLDSAZ1LROPOD7KOV_CW2-RCIVZG 2081149

A. Subject to these variables, the Parties will in good faith work together to meet the following timelines:
i. the UAV ﬂight related activities will take place on or about Jul 4, 2025 ii. sUAS Deliverables will be provided to Customer before or about Jul 3, 2025.

B. Customer will provide right‐of‐entry on the ﬂight locations(s) for GRZ its agents, representatives, employees, and subcontractors, necessary to perform the sUAS Services. GRZ will obtain all other required permissions to provide the Services. In case of non-performance of the show through the fault of the Customer, its responsibility will be limited to re-scheduling for another jointly available date and all direct damages caused to the Customer.

5 Payment Terms

5.1Customer will pay as follows:

A. A deposit is in the amount of THIRTY THOUSAND ($ 30,000.00) is due upon execution of the Agreement. Remaining balance 3 days prior the Show execution.

B. The sUAS Service Fee is included as part of the Flat Fee.

C. The Copyright License Fee is included as part of the Flat Fee. In case of non-payment or change of plans by the Customer, no show will be held, and the GRZ will not have any responsibility for its cancellation.

5.2Other Payment terms:

A. 50% payment will be applied If cancellation occurs 60 days before the show.

B. 100% payment will be applied If cancellation occurs 30 days before the show.

C. If the show is booked in less than 30 days, then 100% payment will be applied.

D. In case of a cancellation due to weather or any other reason, then GRZ will reschedule the show at a convenient day and time for both parties. The customer will then undertake the cost of travel, accommodation, and local transportation expenses of GRZ 6 FAA Compliance & Insurance
GRZ warrants that it has obtained all required FAA approvals for the sUAS Services and maintains general liability insurance for bodily injury and property damage with an aggregate limit of Two Million Dollars ($2,000,000.00) per occurrence. GRZ will provide Customer upon the execution of the Agreement with certiﬁcates of insurance evidencing a policy endorsement naming CITY OF ONTARIO as an additional insured under the policy. GRZ agrees to hold

Zoho Sign Document ID: 4AC8C85E5-9SXX47TIHYRCXAPPLDSAZ1LROPOD7KOV_CW2-RCIVZG 2091150

Customer harmless from any loss, damage, injury, or liability, including wrongful death, in law or in equity, from negligent acts by GRZ, its employees, agents, and/or its representatives that are within the limits and coverage of said insurance and paid from the policy, and to hold Customer harmless from any third party claims against Customer alleging intellectual property infringement for the use of the Copyright protected Works. In addition to the general liability insurance requirements speciﬁed herein, the party shall also maintain Aviation and/or Drone Liability Insurance in the amount of $1,000,000 per occurrence.

7 Intellectual Property
GRZ owns any and all right, title and interest in and to, without exception and broadly deﬁned, Copyright Protected Works (as herein deﬁned), including, without limitation, all rights under copyright law worldwide and all right to exploit the Copyright Protected Works before, after or during the term of any License to Customer and for any purpose and regardless of the exclusivity of Customer’s license and otherwise subject only to the Terms. Works is deﬁned to include all images, videos, graphics, data, and data output, digital or otherwise, including, without limitation, maps, photographs, and videos created and/or generated by GRZ through, or related to, the use of Unmanned Aerial Systems as part of the sUAS Services and/or Deliverables.
8 Term
The Term of this Agreement shall be the Term set forth in Copyright Agreement set forth in Addendum A.
9 sUAS Service Warranty/Limitations
GRZ will perform sUAS Services with that level of care and skill ordinarily exercised by other UAS professionals practicing in the same discipline(s), contemporaneously under the same circumstances and in the same locality as Customer’s project. GRZ represents and warrants that all content created for or used to create the Copyright Protected Works, including but not limited to text, source code, images, photographs, videos, or designs, will not violate the rights of third parties, including without limitation intellectual property rights and rights of publicity or privacy. No other warranties, express or implied, or ﬁtness for a particular purpose are made with respect to this Agreement or the sUAS Services, Deliverables or License provided hereunder.

Zoho Sign Document ID: 4AC8C85E5-9SXX47TIHYRCXAPPLDSAZ1LROPOD7KOV_CW2-RCIVZG 2101151

10Integration and Modiﬁcations
GRZ hereby incorporates Addendum A into this Agreement. This Agreement constitutes the entire agreement between the parties. The parties further acknowledge that this Agreement supersedes all other proposals, agreements, and/or communications, oral or written between the Parties. No modiﬁcations of the Terms and/or Proposal are valid, unless the same is made in a written document executed by both parties.
11Governing Law, Venue & Personal Jurisdiction
GRZ and Customer consent to the jurisdiction of the State and/or Federal Courts located in Riverside County, California for the resolution of any and all disputes between the parties arising out of this Drone Services Agreement and agree that venue will be proper and convenient in Riverside County, California, and that neither party shall challenge venue in Riverside County, California. The validity and construction of the Drone Services Agreement, and the rights and duties of the parties thereunder, will be governed in accordance with the laws of the State of California.

This agreement has been signed by the parties.

Grizzly Entertainment LLC CITY OF ONTARIO

Full Name: Themis Violaris

Title: CEO

Date:

Signature:

Full Name:

Title:

Date:

Signature:

Zoho Sign Document ID: 4AC8C85E5-9SXX47TIHYRCXAPPLDSAZ1LROPOD7KOV_CW2-RCIVZG 2111152

Addendum A: Copyright Agreement

12Incorporation by Reference
This Copyright Agreement is an Addendum to the Agreement.

13The Copyright Protected Works
Customer agrees that the Copyrighted Works, whether registered or unregistered, are deﬁned to include:

1. All photographs and video taken by GRZ as part of the sUAS Services or Deliverables, whether raw, edited, unedited, reproduced, copied, modiﬁed or sampled by GRZ, Customer or any third party.

2. All data in whatever form, obtained as part of the sUAS Services or Deliverables including data that is input, output, copied, manipulated, incorporated, edited, reproduced or analyzed into or by any third‐party software.

14Type of License
Subject to the Terms and this Copyright Agreement, GRZ grants to Customer a license to use the Copyright Works provided by GRZ.

14.1Non-Exclusive
Customer shall have non‐exclusive rights in the Copyright Works during the Term of this Agreement

15 Assignment

15.1Non-assignable
Customer may not assign it rights and/or obligations under the Agreement to another party

Zoho Sign Document ID: 4AC8C85E5-9SXX47TIHYRCXAPPLDSAZ1LROPOD7KOV_CW2-RCIVZG 2121153

without the prior written consent of GRZ which consent shall not be unreasonably withheld.

16 Scope of Use
This license allows Customer to the following rights related to the Copyright Works (“Rights”), and subject to all other License provisions herein:

1. Reproduce the Copyright Works.

2. Distribute copies of the Copyright Works.

3. Display the Copyright Works.

4. Non-commercial use only

17 Territory
The licensed territory wherein the Customer may exercise Rights is limited to the following:

1. United States of America

18 Sublicense
GRZ grants to Customer the right to sublicense licensed Rights to a third party. If the agreement is sub‐licensable, Customer agrees as part of any sub‐license to require the licensee to abide by all the terms of this Agreement.

19 Expressly Prohibited Uses by Customer

1. Use that violates the rights of third parties or violates any applicable local, national, state, provincial, and/or international laws, treaties, and regulations.

2. Claim any proprietary rights of any sort in all or any portion of the Copyright Works or alter or remove any copyright or proprietary noticed contained in or in the Copyright Protected Works.

3. Use all or any portion of the Copyright Works that could be considered offensive, threatening, pornographic, defamatory, or unlawful.

20 Enforcement of Intellectual Property Rights

Zoho Sign Document ID: 4AC8C85E5-9SXX47TIHYRCXAPPLDSAZ1LROPOD7KOV_CW2-RCIVZG 2131154

GRZ reserves the exclusive right, but not the obligation, to enforce all copyrights against infringers at its own cost and to its exclusive beneﬁt.

21 Term & Termination
Subject to the Terms mentioned above and this Agreement, the Copyright License granted to Customer by GRZ shall be in effect for/until the date below, and all such licenses or sublicenses that may have been granted by Customer are terminated unless expressly renewed or extended in writing:

1. Perpetual and indeﬁnite.

22 Force Majeure
GRZ will not be liable in case of bad weather, force majeure, other restrictive measures or other reasons outside its responsibility and control, which will make the performance of the show impossible. In this case the show will be rescheduled for a commonly available date.

23 Other
-

Zoho Sign Document ID: 4AC8C85E5-9SXX47TIHYRCXAPPLDSAZ1LROPOD7KOV_CW2-RCIVZG 2141155
© Grizzly Entertainment 2025. All rights reserved.

Proposal for the City of Ontario

GRIZZLY DRONE LIGHT SHOWS
City of Ontario
Jose Coria
Ontario, CA
072GRZ2025
March 20th, 2025
Theofanis C. - CMO
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© Grizzly Entertainment 2025. All rights reserved.

What we offer

SPECTACULAR
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Ideas
Ideas and visions can get real in the night sky with the help of our professional team of designers. 217
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Previous Projects
With over 200 breathtaking drone shows, we can create unforgettable experiences tailored to your vision.

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The journey of creating a drone light show
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Important factors
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Drone number comparison
Ideas and visions can get real in the night sky with the help of our professional team of designers.

SPECTACULAR EXTRAORDINARY UNFORGETTABLE
Up To 100 Drones Up To 300 Drones Up To 600 Drones
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Bigger in the sky
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Terms & Conditions
Our pricing includes custom programming and animation, drones, and insurance.

Local permits and licenses are managed/handled with the assistance of the customer.

VAT or Sales Taxes are not included on the above prices.

Payment Terms for Shows - 1st Payment - 50% on Contract Signing, 2nd Payment - 50% three days before the Show Other Important Points
Integration with other external systems, (Lights, Sounds, etc.), has to be communicated, agreed and tested prior the official Show.

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Package Unit Price Number of Shows Amount
Up to 500 Drones $48,000 1 $48,000.00
Drone Show Charges
December 6, 2025
City of Ontario – Happy Holidays
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Grizzly Entertainment LLC
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226
Department: Community Improvement
Prepared By: Angel Hamilton
Staff Member Presenting: Rudy Zeledon,
Executive Director Community Development
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 9
SUBJECT:

A RESOLUTION FOR PLACEMENT OF SPECIAL ASSESSMENTS ON THE SAN

BERNARDINO COUNTY TAX ROLLS

CITY OF ONTARIO
Agenda Report
April 15, 2025
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

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

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Operate in a Businesslike Manner
Focus Resources in Ontario's Commercial and Residential Neighborhoods FISCAL IMPACT:

The levy of special assessments will result in the recovery of $37,122.36 in costs that the City has expended for inspection or abatement of property violations, as well as the collection of $12,740.00 associated with civil penalties and/or ﬁnes for continued violations, for a total of $49,862.36 related to 92 parcels. When received, these reimbursements will be deposited into the General Fund. The special assessment revenue is included in the Fiscal Year 2024-25 Budget.

BACKGROUND & ANALYSIS:

The City has established administrative citations and ﬁnes for property maintenance violations and fees and penalties associated with the Systematic Health and Safety Inspection Program, Abandoned and Distressed Property Program, and Weed and Refuse Abatement Program. These costs, ﬁnes, fees, and penalties are recovered through placement of special tax assessments upon the properties. The placement of special assessments and collection of revenue is done under Ordinance 3046, Property Appearance (Title 5, Chapter 22 of the Ontario Municipal Code); Chapter 9 of the Uniform Code for the Abatement of Dangerous Buildings; and Ordinance 2920 for civil penalties for continued violations of the Ontario Municipal Code and ﬁnes associated with administrative citations (Title 1, Chapters 2 and 5 of the Ontario Municipal Code).

The City and County currently have a contractual agreement regarding the implementation of special assessments; however, a Resolution authorizing the placement of the speciﬁc assessments is required. During this assessment cycle, the Community Improvement Department has billed property owners for: the abatement of violations; the issuance of ﬁnes associated with administrative citation; the issuance of fees and penalties associated with the Systematic Health 227
and Safety Inspection Program; the issuance of registration fees and civil penalties associated with the Abandoned and Distressed Property Program; the issuance of notice and re-inspection fees; and, civil penalties for the Weed and Refuse Abatement Program on 186 parcels. Of these, there are remaining amounts due on 92 parcels. Attached are itemized accounts that include: 1) costs associated with inspection or abatement as shown in Exhibit A of the Resolution; 2) civil penalties and/or ﬁnes for continued violations as shown in Exhibit B of the Resolution; and 3) total amounts per parcel as shown in Exhibit C of the Resolution. All aﬀected property owners were given notice of the imposition of special assessments via certiﬁed mail as provided in Ontario Municipal Code Section 1-4.05(a) and have either not requested an appeal or have exhausted the appellate procedure in Ontario Municipal Code Section 1-4.05(b).
228
RESOLUTION NO. ________

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

CALIFORNIA, ADOPTING A REPORT REQUESTING THE PLACEMENT

OF SPECIAL ASSESSMENTS ON PROPERTY TAX BILLS FOR CIVIL

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

WHEREAS, Ordinance No. 3046, Property Appearance (Title 5, Chapter 22, of the Ontario Municipal Code) and Chapter 9 of the Uniform Code for the Abatement of Dangerous Buildings provide for the abatement of property nuisances by repair, rehabilitation, demolition or removal; and
WHEREAS, under Resolution 94-112, Resolution ORA-499, and the Cooperation and Reimbursement Agreement entered into on the 15 th day of November, 1994, by the City of Ontario and the Ontario Redevelopment Agency, the Ontario Redevelopment Agency made a one-time advance to the City of One Hundred Fifty Thousand Dollars ($150,000) to repair or abate dangerous buildings and properties throughout the City; and WHEREAS, under a first amendment to the Cooperation and Reimbursement Agreement entered into on the 16th day of July 1996, by the City of Ontario and the Ontario Redevelopment Agency, the Ontario Redevelopment Agency made an additional advance to the City of One Hundred Thousand Dollars ($100,000) to continue to repair or abate dangerous buildings and properties throughout the City; and WHEREAS, under Resolution 94-113, Resolution ORA-500, and the Cooperation and Reimbursement Agreement entered into on the 15 th day of November 1994, by the City of Ontario and the Ontario Redevelopment Agency, the Ontario Redevelopment Agency made a one-time advance to the City of Thirty Thousand Dollars ($30,000) to repair or abate dangerous buildings and properties in the 6th and Grove area; and WHEREAS, under Resolution 94-12, Resolution ORA-464, and the Cooperation and Reimbursement Agreement entered into on the 22 nd day of February 1994, by the City of Ontario and the Ontario Redevelopment Agency, the Ontario Redevelopment Agency made a one-time advance to the City of One Hundred Fifty Thousand Dollars ($150,000) to repair or demolish dangerous buildings throughout the City; and WHEREAS, Ordinance No. 2894, Systematic Health and Safety Inspection Program (Title 8, Chapter 17, of the Ontario Municipal Code), provides for the collection of unpaid service fees, plus any penalties and accrued interest by Special Assessment; and WHEREAS, Ordinance No. 2920, provides for the assessment of civil penalties for continued violations of the Ontario Municipal Code (Title 1, Chapter 2 of the Ontario Municipal Code), and for fines associated with administrative citations to be collected by Special Assessment (Title 1, Chapter 5 of the Ontario Municipal Code), and establishes a uniform procedure before imposing such Special Assessments (Title 1, Chapter 4 of the Ontario Municipal Code); and
229
WHEREAS, the above said ordinances, resolutions and agreements provide for recovery of costs incurred in the abatement of violations by means of a Special Assessment placed on the tax rolls; and
WHEREAS, the City has incurred costs involved in the abatement of violations under the Ontario Municipal Code and Uniform Code for the Abatement of Dangerous Buildings, issuing Notices of Violation, and administering the Systematic Health and Safety Program and wishes to recover said costs; and
WHEREAS, the owners of all parcels listed in Exhibit A, B, and C were given notice of imposition of such Special Assessment as provided in Ontario Municipal Code Section 1-4.05(a), and either have not requested an appeal, or have exhausted the appellate procedure provided in Ontario Municipal Code Section 1-4.05(b); and WHEREAS, the City has an executed contract with the San Bernardino County Board of Supervisors for collection of said assessments; NOW, THEREFORE, BE IT RESOLVED that the City Council:

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

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

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

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

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

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

The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.
230
PASSED, APPROVED, AND ADOPTED this 15th day of April, 2025. _____________________________________
PAUL S. LEON, MAYOR
ATTEST:
____________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
____________________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY
231

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
232
City of Ontario
Community Improvement Department
2025/2026 Tax Roll Year Special Assessments
Exhibit A - Costs Associated with Inspection or Abatement Parcel Number Address Amount Due
0108-303-21 1383 E BONNIE BRAE ST, Ontario, CA 91764 541.00 0108-443-07 1376 E LA DENEY DR, Ontario, CA 91764 91.00 0108-523-07 1305 N LASSEN AV, Ontario, CA 91764 91.00
0108-551-61 0 E COMMON AREA, Ontario, CA 91764 91.00
0110-061-18 1329 E HOLT BL, Ontario, CA 91761 77.54
0110-111-01 1614 E HOLT BL, Building:1, Unit:105, Ontario, CA 91761 91.00 0110-161-19 903 N CALAVERAS AV, Ontario, CA 91764 3,667.35 0110-322-32 2200 E HOLT BL, Ontario, CA 91761 147.00
0110-343-04 1778 E FOURTH ST, Ontario, CA 91764 62.03
0113-491-75 2078 E FRANCIS ST, Building:1, Ontario, CA 91761 91.00 0210-182-60 0 N HAVEN AV, Ontario, CA 91764 1,842.50
0211-351-04 3100 E CEDAR ST, Unit:3, Ontario, CA 91761 91.00 0216-441-13 2713 S MILDRED PL, Ontario, CA 91761 91.00
0218-151-40 13350 S HAVEN AV, Ontario, CA 91761 91.00
0218-161-11 0 S MILL CK, Ontario, CA 91761 91.00
0218-272-29 3372 S PRIMROSE DR, Ontario, CA 91761 91.00 0218-545-03 3322 S NEWTON AV, Ontario, CA 91761 91.00
0218-714-12 3104 E LAVENDER DR, Ontario, CA 91762 91.00 0218-801-63 3707 S PALOMINO PL, Ontario, CA 91761 91.00 0218-911-01 2943 E THOROUGHBRED ST, Ontario, CA 91761 187.00 0238-051-33 0 E ONTARIO MILLS PW, Ontario, CA 91764 91.00 0238-051-40 5400 E ONTARIO MILLS PW, Building:1, Unit:400, Ontario, CA 91764 848.56 0238-152-25 2060 S WINEVILLE AV, Building:1, Unit:A, Ontario, CA 91761 91.00 1010-093-16 1435 W J ST, Ontario, CA 91762 1,085.75
1010-521-09 1141 W D ST, Unit:A, Ontario, CA 91762 62.03 1010-543-24 1265 W STONERIDGE CT, Unit:1, Ontario, CA 91762 187.94 1014-091-45 1315 S JASMINE PL, Ontario, CA 91762 1,227.00 1047-542-02 1106 N EUCLID AV, Ontario, CA 91764 91.00
1048-081-38 609 E PLAZA SERENA ST, Ontario, CA 91764 4,701.00 1048-362-04 515 N LEMON AV, Ontario, CA 91764 107.00
1048-491-42 951 E ELMA ST, Ontario, CA 91761 327.00
1048-566-05 317 N EUCLID AV, Building:1, Unit:A, Ontario, CA 91762 1,407.69 1048-566-07 106 W C ST, Building:1, Ontario, CA 91762 1,250.10 1048-566-07 303 N EUCLID AV, Building:1, Ontario, CA 91762 367.00 1048-566-07 307 N EUCLID AV, Building:1, Ontario, CA 91762 91.00 1049-101-34 767 E EMPORIA ST, Ontario, CA 91761 62.03
1049-101-40 900 E HOLT BL, Ontario, CA 91761 2,767.55
1049-111-06 235 S CAMPUS AV, Unit:A, Ontario, CA 91761 148.00 1049-111-07 807 E STATE ST, Building:1, Ontario, CA 91761 148.00 1049-201-07 439 S CAMPUS AV, Ontario, CA 91761 148.00
1049-232-20 560 E PARK ST, Ontario, CA 91761 91.00

Page 1 ends

City of Ontario
Community Improvement Department
2025/2026 Tax Roll Year Special Assessments
Exhibit A - Costs Associated with Inspection or Abatement Parcel Number Address Amount Due
1049-303-29 601 S CYPRESS AV, Ontario, CA 91762 334.00
1049-392-04 1030 S GROVE AV, Ontario, CA 91761 239.00
1049-392-05 1044 S GROVE AV, Ontario, CA 91761 148.00
1049-392-06 1050 S GROVE AV, Ontario, CA 91761 148.00
1049-451-20 1009 S CAMPUS AV, Ontario, CA 91761 2,613.39 1050-071-31 266 E DE ANZA CI, Ontario, CA 91761 2,823.25 1050-262-16 236 E LOCUST ST, Ontario, CA 91761 1,196.40 1050-624-15 2115 S SAN ANTONIO AV, Ontario, CA 91762 2,622.08 1051-041-14 2245 S SAN ANTONIO AV, Ontario, CA 91762 91.00 1051-081-03 310 E PHILADELPHIA ST, Building:1, Unit:9, Ontario, CA 91761 1,519.14 1051-121-61 2226 S PHOENIX AV, Ontario, CA 91761 62.03
1051-171-42 2410 S GROVE AV, Building:1, Ontario, CA 91761 1,403.30 1051-561-73 2842 S PARKSIDE AV, Ontario, CA 91761 327.00 1073-281-28 2717 E MURDOCK LN, Ontario, CA 91762 167.00 1073-361-29 4882 S JORDAN AV, Building:, Unit:, Ontario, CA 91762 91.00 1083-142-45 3202 E CLEAR LAKE RD, Ontario, CA 91761 91.00 1083-371-33 3572 E BIG CREEK RD, Ontario, CA 91761 91.00 1083-482-14 3932 E MERCED RIVER RD, Ontario, CA 91761 148.70 37,122.36

Page 2 ends

City of Ontario
Community Improvement Department
2025/2026 Tax Roll Year Special Assessments
Exhibit B - Civil Penalties and/or Fines for Continued Violations Parcel Number Address Amount Due
0108-551-61 0 E COMMON AREA, Ontario, CA 91764 120.00
0110-061-25 1241 E HOLT BL, Building:1, Ontario, CA 91761 170.00 0110-311-51 853 N QVC WY, Ontario, CA 91764 220.00
0113-285-08 2401 S VINEYARD AV, Building:1, Unit:B, Ontario, CA 91761 640.00 0113-415-22 1829 E ELM ST, Ontario, CA 91761 170.00
0113-621-02 1510 E CEDAR ST, Ontario, CA 91761 520.00
0210-211-43 735 N MILLIKEN AV, Unit:E, Ontario, CA 91764 120.00 0210-501-31 4155 E INLAND EMPIRE BL, Ontario, CA 91764 120.00 0210-551-50 3200 E GUASTI RD, Unit:100, Ontario, CA 91743 120.00 0216-281-02 2845 S WALKER AV, Ontario, CA 91761 420.00
0216-291-03 1539 E MERION ST, Ontario, CA 91761 220.00
0216-381-49 2616 S MILDRED PL, Ontario, CA 91761 320.00 0216-441-13 2713 S MILDRED PL, Ontario, CA 91761 220.00 0216-441-60 2737 S GROVE AV, Ontario, CA 91761 520.00
0218-094-32 3660 PECKHAM PASEO E, Unit:5, Ontario, CA 91761 340.00 0218-131-37 13610 S ARCHIBALD AV, Ontario, CA 91761 420.00 0218-151-40 13350 S HAVEN AV, Ontario, CA 91761 340.00
0218-273-41 3365 S PRIMROSE DR, Ontario, CA 91761 120.00 0218-462-74 3937 S OAKVILLE AV, Ontario, CA 91761 340.00 0218-714-12 3104 E LAVENDER DR, Ontario, CA 91762 120.00 0218-881-35 3238 S CENTURION PL, Ontario, CA 91761 320.00 1010-462-03 442 N MOUNTAIN AV, Building:1, Ontario, CA 91762 120.00 1047-372-15 652 E BONNIE BRAE CT, Ontario, CA 91764 20.00 1048-305-10 756 N CYPRESS AV, Ontario, CA 91762 120.00
1048-361-08 121 E F ST, Building:1, Ontario, CA 91764 120.00 1048-393-02 516 E E ST, Ontario, CA 91764 170.00
1048-432-42 441 N HOLMES AV, Ontario, CA 91764 520.00
1048-573-04 121 N FERN AV, Unit:1, Ontario, CA 91762 20.00 1049-111-06 235 S CAMPUS AV, Unit:A, Ontario, CA 91761 500.00 1049-111-07 807 E STATE ST, Building:1, Ontario, CA 91761 500.00 1049-201-07 439 S CAMPUS AV, Ontario, CA 91761 500.00
1049-231-05 520 E STATE ST, Ontario, CA 91761 320.00
1049-392-04 1030 S GROVE AV, Ontario, CA 91761 500.00
1049-392-05 1044 S GROVE AV, Ontario, CA 91761 500.00
1049-392-06 1050 S GROVE AV, Ontario, CA 91761 500.00
1050-081-03 1437 S EUCLID AV, Ontario, CA 91761 120.00
1050-361-16 1940 S FERN AV, Ontario, CA 91762 220.00
1050-623-03 2020 S VINE AV, Ontario, CA 91762 170.00
1051-011-92 2220 S HOLLY PL, Ontario, CA 91762 120.00
1051-041-13 2241 S SAN ANTONIO AV, Ontario, CA 91762 120.00 1051-041-14 2245 S SAN ANTONIO AV, Ontario, CA 91762 520.00

Page 1 ends

City of Ontario
Community Improvement Department
2025/2026 Tax Roll Year Special Assessments
Exhibit B - Civil Penalties and/or Fines for Continued Violations Parcel Number Address Amount Due
1053-601-02 14455 S EUCLID AV, Ontario, CA 91710 220.00 1073-292-30 4706 S KENT WY, Ontario, CA 91762 340.00
1073-311-08 4561 S ANNISTON AV, Building:, Unit:, Ontario, CA 91762 120.00 1073-361-29 4882 S JORDAN AV, Building:, Unit:, Ontario, CA 91762 120.00 1083-051-33 2832 S CANTERBURY TR, Ontario, CA 91761 120.00 1083-331-08 2585 S ROCK SPRINGS PL, Ontario, CA 91761 120.00 1083-371-33 3572 E BIG CREEK RD, Ontario, CA 91761 120.00 12,740.00

Page 2 ends

City of Ontario
Community Improvement Department
2025/2026 Tax Roll Year Special Assessments
Exhibit C - Total Amounts per Parcel
Parcel Number Address Amount Due
0108-303-21 1383 E BONNIE BRAE ST, Ontario, CA 91764 541.00 0108-443-07 1376 E LA DENEY DR, Ontario, CA 91764 91.00 0108-523-07 1305 N LASSEN AV, Ontario, CA 91764 91.00
0108-551-61 0 E COMMON AREA, Ontario, CA 91764 211.00
0110-061-18 1329 E HOLT BL, Ontario, CA 91761 77.54
0110-061-25 1241 E HOLT BL, Building:1, Ontario, CA 91761 170.00 0110-111-01 1614 E HOLT BL, Building:1, Unit:105, Ontario, CA 91761 91.00 0110-161-19 903 N CALAVERAS AV, Ontario, CA 91764 3,667.35 0110-311-51 853 N QVC WY, Ontario, CA 91764 220.00
0110-322-32 2200 E HOLT BL, Ontario, CA 91761 147.00
0110-343-04 1778 E FOURTH ST, Ontario, CA 91764 62.03
0113-285-08 2401 S VINEYARD AV, Building:1, Unit:B, Ontario, CA 91761 640.00 0113-415-22 1829 E ELM ST, Ontario, CA 91761 170.00
0113-491-75 2078 E FRANCIS ST, Building:1, Ontario, CA 91761 91.00 0113-621-02 1510 E CEDAR ST, Ontario, CA 91761 520.00
0210-182-60 0 N HAVEN AV, Ontario, CA 91764 1,842.50
0210-211-43 735 N MILLIKEN AV, Unit:E, Ontario, CA 91764 120.00 0210-501-31 4155 E INLAND EMPIRE BL, Ontario, CA 91764 120.00 0210-551-50 3200 E GUASTI RD, Unit:100, Ontario, CA 91743 120.00 0211-351-04 3100 E CEDAR ST, Unit:3, Ontario, CA 91761 91.00 0216-281-02 2845 S WALKER AV, Ontario, CA 91761 420.00
0216-291-03 1539 E MERION ST, Ontario, CA 91761 220.00
0216-381-49 2616 S MILDRED PL, Ontario, CA 91761 320.00 0216-441-13 2713 S MILDRED PL, Ontario, CA 91761 311.00 0216-441-60 2737 S GROVE AV, Ontario, CA 91761 520.00
0218-094-32 3660 PECKHAM PASEO E, Unit:5, Ontario, CA 91761 340.00 0218-131-37 13610 S ARCHIBALD AV, Ontario, CA 91761 420.00 0218-151-40 13350 S HAVEN AV, Ontario, CA 91761 431.00
0218-161-11 0 S MILL CK, Ontario, CA 91761 91.00
0218-272-29 3372 S PRIMROSE DR, Ontario, CA 91761 91.00 0218-273-41 3365 S PRIMROSE DR, Ontario, CA 91761 120.00 0218-462-74 3937 S OAKVILLE AV, Ontario, CA 91761 340.00 0218-545-03 3322 S NEWTON AV, Ontario, CA 91761 91.00
0218-714-12 3104 E LAVENDER DR, Ontario, CA 91762 211.00 0218-801-63 3707 S PALOMINO PL, Ontario, CA 91761 91.00 0218-881-35 3238 S CENTURION PL, Ontario, CA 91761 320.00 0218-911-01 2943 E THOROUGHBRED ST, Ontario, CA 91761 187.00 0238-051-33 0 E ONTARIO MILLS PW, Ontario, CA 91764 91.00 0238-051-40 5400 E ONTARIO MILLS PW, Building:1, Unit:400, Ontario, CA 91764 848.56 0238-152-25 2060 S WINEVILLE AV, Building:1, Unit:A, Ontario, CA 91761 91.00 1010-093-16 1435 W J ST, Ontario, CA 91762 1,085.75

Page 1 ends

City of Ontario
Community Improvement Department
2025/2026 Tax Roll Year Special Assessments
Exhibit C - Total Amounts per Parcel
Parcel Number Address Amount Due
1010-462-03 442 N MOUNTAIN AV, Building:1, Ontario, CA 91762 120.00 1010-521-09 1141 W D ST, Unit:A, Ontario, CA 91762 62.03 1010-543-24 1265 W STONERIDGE CT, Unit:1, Ontario, CA 91762 187.94 1014-091-45 1315 S JASMINE PL, Ontario, CA 91762 1,227.00 1047-372-15 652 E BONNIE BRAE CT, Ontario, CA 91764 20.00 1047-542-02 1106 N EUCLID AV, Ontario, CA 91764 91.00
1048-081-38 609 E PLAZA SERENA ST, Ontario, CA 91764 4,701.00 1048-305-10 756 N CYPRESS AV, Ontario, CA 91762 120.00
1048-361-08 121 E F ST, Building:1, Ontario, CA 91764 120.00 1048-362-04 515 N LEMON AV, Ontario, CA 91764 107.00
1048-393-02 516 E E ST, Ontario, CA 91764 170.00
1048-432-42 441 N HOLMES AV, Ontario, CA 91764 520.00
1048-491-42 951 E ELMA ST, Ontario, CA 91761 327.00
1048-566-05 317 N EUCLID AV, Building:1, Unit:A, Ontario, CA 91762 1,407.69 1048-566-07 106 W C ST, Building:1, Ontario, CA 91762 1,250.10 1048-566-07 303 N EUCLID AV, Building:1, Ontario, CA 91762 367.00 1048-566-07 307 N EUCLID AV, Building:1, Ontario, CA 91762 91.00 1048-573-04 121 N FERN AV, Unit:1, Ontario, CA 91762 20.00 1049-101-34 767 E EMPORIA ST, Ontario, CA 91761 62.03
1049-101-40 900 E HOLT BL, Ontario, CA 91761 2,767.55
1049-111-06 235 S CAMPUS AV, Unit:A, Ontario, CA 91761 648.00 1049-111-07 807 E STATE ST, Building:1, Ontario, CA 91761 648.00 1049-201-07 439 S CAMPUS AV, Ontario, CA 91761 648.00
1049-231-05 520 E STATE ST, Ontario, CA 91761 320.00
1049-232-20 560 E PARK ST, Ontario, CA 91761 91.00
1049-303-29 601 S CYPRESS AV, Ontario, CA 91762 334.00
1049-392-04 1030 S GROVE AV, Ontario, CA 91761 739.00
1049-392-05 1044 S GROVE AV, Ontario, CA 91761 648.00
1049-392-06 1050 S GROVE AV, Ontario, CA 91761 648.00
1049-451-20 1009 S CAMPUS AV, Ontario, CA 91761 2,613.39 1050-071-31 266 E DE ANZA CI, Ontario, CA 91761 2,823.25 1050-081-03 1437 S EUCLID AV, Ontario, CA 91761 120.00
1050-262-16 236 E LOCUST ST, Ontario, CA 91761 1,196.40 1050-361-16 1940 S FERN AV, Ontario, CA 91762 220.00
1050-623-03 2020 S VINE AV, Ontario, CA 91762 170.00
1050-624-15 2115 S SAN ANTONIO AV, Ontario, CA 91762 2,622.08 1051-011-92 2220 S HOLLY PL, Ontario, CA 91762 120.00
1051-041-13 2241 S SAN ANTONIO AV, Ontario, CA 91762 120.00 1051-041-14 2245 S SAN ANTONIO AV, Ontario, CA 91762 611.00 1051-081-03 310 E PHILADELPHIA ST, Building:1, Unit:9, Ontario, CA 91761 1,519.14 1051-121-61 2226 S PHOENIX AV, Ontario, CA 91761 62.03

Page 2 ends

City of Ontario
Community Improvement Department
2025/2026 Tax Roll Year Special Assessments
Exhibit C - Total Amounts per Parcel
Parcel Number Address Amount Due
1051-171-42 2410 S GROVE AV, Building:1, Ontario, CA 91761 1,403.30 1051-561-73 2842 S PARKSIDE AV, Ontario, CA 91761 327.00 1053-601-02 14455 S EUCLID AV, Ontario, CA 91710 220.00 1073-281-28 2717 E MURDOCK LN, Ontario, CA 91762 167.00 1073-292-30 4706 S KENT WY, Ontario, CA 91762 340.00
1073-311-08 4561 S ANNISTON AV, Building:, Unit:, Ontario, CA 91762 120.00 1073-361-29 4882 S JORDAN AV, Building:, Unit:, Ontario, CA 91762 211.00 1083-051-33 2832 S CANTERBURY TR, Ontario, CA 91761 120.00 1083-142-45 3202 E CLEAR LAKE RD, Ontario, CA 91761 91.00 1083-331-08 2585 S ROCK SPRINGS PL, Ontario, CA 91761 120.00 1083-371-33 3572 E BIG CREEK RD, Ontario, CA 91761 211.00 1083-482-14 3932 E MERCED RIVER RD, Ontario, CA 91761 148.70 92 49,862.36

Page 3 ends

Department: Utilities
Prepared By: Dennis Mejia
Staff Member Presenting: Scott Burton, Utilities
General Manager
Reviewed By: Dennice Raygoza, Albert G
Gastelum, Michael Sigsbee
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 10
SUBJECT:

A GOODS AND EQUIPMENT PURCHASE AGREEMENT WITH DE NORA WATER

TECHNOLOGIES, LLC FOR THE PURCHASE OF WATER DISINFECTION EQUIPMENT

AND AN AMENDMENT TO THE GOODS AND EQUIPMENT PURCHASE AGREEMENT

WITH D&H WATER SYSTEMS FOR THE PURCHASE OF REPLACEMENT PARTS FOR

GROUNDWATER WELL MAINTENANCE

CITY OF ONTARIO
Agenda Report
April 15, 2025
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

The City Council take the following actions:

A
.

B
.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Invest in the Growth and Evolution of the City's Economy Focus Resources in Ontario's Commercial and Residential Neighborhoods Operate in a Businesslike Manner
Invest in the City's Infrastructure (Water, Streets, Sewers, Parks, Storm Drains and Public Facilities)
FISCAL IMPACT:

The proposed Agreement with De Nora is for a total not-to-exceed amount of $1,416,076. The proposed Amendment No. 1 with D&H Water Systems increases the Agreement amount by $274,849 for a revised total not-to-exceed amount of $310,005. The total cost for the recommended action is $1,690,925.

The Fiscal Year 2024-2025 Capital Improvements Program Budget includes appropriations from the Water Capital Fund for the purchase of water disinfection equipment and replacement parts for groundwater well projects. There is no impact to the General Fund.
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BACKGROUND & ANALYSIS:

The City operates a total of nineteen active groundwater production wells. Water produced from these wells requires onsite disinfection before being introduced into the City’s water distribution system for customer use. The City utilizes onsite sodium hypochlorite generator (OSCG) units
from De Nora (formerly “Miox”) to generate a chlorine disinfection solution.

This solution is then introduced into the water using a Prominent brand injection pump system (distributed by D&H Water Systems) at all production wells.

At six of the active groundwater production well sites, the water disinfection equipment has reached its maximum useful life and requires replacement. To ensure safe and reliable operations while streamlining the maintenance process, the City will purchase the replacement water disinfection equipment and spare parts. Installation will either be completed by Staﬀ and/or a proposed future construction contract. This proactive measure ensures operational reliability and preparedness for emergency situations by mitigating supply chain delay issues.

To enhance operational eﬃciency and reduce maintenance complexity, Staﬀ has standardized the water disinfection equipment used at active well sites. This approach has established a cost- eﬀective routine maintenance program and supports a consistent operation and maintenance training program for City Staff, ensuring they can efficiently manage and maintain the equipment.

Per Section 2-6.23 (b) and (c) of the Ontario Municipal Code, non-competitive sole-source purchases are permitted when only one procurement source exists, or when competitive bidding would be impractical, unavailing, or would not produce an advantage. While there is one other alternative OSCG system on the market, this system is completely incompatible with the existing equipment already in use at the well sites. De Nora is the exclusive distributor in California for their OSCG equipment. D&H Water Systems is the exclusive distributor in California for the injection pump system manufactured by ProMinent. On July 17, 2024, the City entered into a sole source Goods and Equipment Agreement with D&H Water Systems to provide replacement parts for groundwater well maintenance; the contract value was for $35,156. Given these factors, the City has determined that a sole source procurement approach is the most practical and cost-effective solution.

Staﬀ have reviewed pricing and recommend the sole source awards to De Nora Water Technologies, LLC and D&H Water Systems.
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(BB&K 2024) 1 Goods and Equipment Agreement

PAUL S. LEON
MAYOR

ALAN D. WAPNER

MAYOR PRO TEM

JIM W. BOWMAN

DEBRA PORADA

DAISY MACIAS

COUNCIL MEMBERS

SHEILA MAUTZ

CITY CLERK

JAMES R. MILHISER

CITY TREASURER

SCOTT OCHOA

CITY MANAGER

CITY OF ONTARIO

GOODS AND EQUIPMENT PURCHASE AGREEMENT

This Goods and Equipment Purchase Agreement (“Agreement”) is made and entered as of ____________, by and between the City of Ontario, a municipal corporation organized under the laws of the State of California with its principal place of business at 303 East “B” Street, Ontario, California 91764 -4196, County of San Bernardino, State of California (“C ity”), and De Nora Water Technologies, LLC, a Pennsylvania limited liability company with its principal place of business at 3000 Advance Ln, Colmar, Pennsylvania 18915 (“Supplier”). City and Supplier are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.

Section 1. DEFINITIONS.

A. “Goods” means all machinery, equipment, supplies, items, parts, materials, labor or other services, including design, engineering and installation services, provided by Supplier as specified in Exhibit “A,” attached hereto and incorporated herein by reference.

B. “Delivery Date(s)” means that date or dates upon which the Goods is to be delivered to City, ready for approval, testing and/or use as specified in Exhibit “B.” Section 2. MATERIALS AND WORKMANSHIP.

When Exhibit “A” specifies machinery, equipment or material by manufacturer, model or trade name, no substitution will be made without City’s written approval. Machinery, equipment or material installed in the Goods without the approval required by this Section 2 will be deemed to be defective material for purposes of Section 4. Where machinery, equipment or materials are referred to in Exhibit “A” as equal to any particular standard, City will decide the question of equality. When requested by City, Supplier will furnish City with the name of the manufacturer, the performance capabilities and other pertinent information necessary to properly determine the quality and suitability of any machines, equipment and material to be incorporated in the Goods.

Material samples will be submitted at City’s request.

Section 3. INSPECTIONS AND TESTS.

City shall have the right to inspect and/or test the Goods prior to acceptance. If upon inspection or testing the Goods or any portion thereof are found to be nonconforming, unsatisfactory, defective, of inferior quality or workmanship, or fail to meet an y requirements or 242

(BB&K 2024) 2 Goods and Equipment Agreement

specifications contained in Exhibit “A,” then without prejudice to any other rights or remedies, City may reject the Goods or exercise any of its rights under Section 4.C. The inspection, failure to make inspection, acceptance of goods, or payment for goods shall not impair City’s right to reject nonconforming goods, irrespective of City’s failure to notify Supplier of a rejection of nonconforming goods or revocation of a cceptance thereof or to specify with particularity any defect in nonconforming goods after rejection or acceptance thereof.

Section 4. WARRANTY.

A. Supplier warrants that the Goods will be of merchantable quality and free from defects in design, engineering, material, and workmanship for a period of twelve (12) months from startup, or eighteen (18) months from delivery (whichever occurs earlier) , or such longer period as provided by a manufacturer’s warranty or as agreed to by Supplier and City,. Supplier further warrants that any services provided in connection with the Goods will be performed in a professional and workmanlike manner and in accordance with the highest industry standards.

B. Supplier further warrants that all machinery, equipment, or process included in the Goods will meet the performance requirements and specifications specified in Exhibit “A” and shall be fit for the purpose stated in the Agreement . City’s inspection, testing, approval, or acceptance of any such machinery, equipment, or process will not relieve Supplier of its obligations under this Section 4.B.

C. For any breach of the warranties contained in Section 4.A and Section 4.B , Supplier will, immediately after receiving notice from City, at the option of City, and at Supplier’s own expense and without cost to City:

1. Repair the defective Goods;

2. Replace the defective Goods with conforming Goods, F.O.B. Destination to City’s plant, office or other location of City where the Goods was originally performed or delivered; or

3. Repay to City the purchase price of the defective Goods, City to return the defective goods at Supplier’s sole cost and expense.

If City selects repair or replacement, any defects will be remedied without cost to City, including but not limited to, the costs of removal, repair, and replacement of the defective Goods, and reinstallation of new Goods. All such defective Goods that is so remedied will be similarly warranted as stated above. In addition, Supplier will repair or replace other items of the Goods which may have been damaged by such defects or the repairing of the same, all at its own expense and without cost to City.

D. Supplier also warrants that the Goods is free and clear of all liens and encumbrances whatsoever, that Supplier has a good and marketable title to same, and that Supplier owns or has a valid license for all of the proprietary technology and intellectual property incorporated within the Goods. Supplier agrees to indemnify, defend, and hold City harmless against any and all third party claims resulting from the breach or inaccuracy of any of the foregoing warranties.

E. In the event of a breach by Supplier of its obligations under this Section 4, City will not be limited to the remedies set forth in this Section 4, but will have all the rights and remedies 243

(BB&K 2024) 3 Goods and Equipment Agreement

permitted by applicable law, including without limitation, all of the rights and remedies afforded to City under the California Commercial Code.

Section 5. PRICES.

Unless expressly provided otherwise, all prices and fees specified in Exhibit “A,” attached hereto and incorporated herein by reference, are firm and shall not be subject to change without the written approval of City. No extra charges of any kind will be allowed unless specifically agreed to in writing by City’s authorized representative. The total price shall include (i) all federal, state and local sales, use, excise, privilege, payroll, occupational and other taxes applicable to the Goods furnished to City hereunder; and (ii) all charges for packing, freight and transportation to destination.

Section 6. CHANGES.

City, at any time, by a written order, and without notice to any surety, may make changes in the Goods, including but not limited to, City’s requirements and specifications. If such changes affect the cost of the Goods or time required for its performance, an equitable adjustment will be made in the price or time for performance or both. Any change in the price necessitated by such change will be agreed upon between City and Supplier and such change will be authorized by a change order document signed by City and accepted by Supplier.

Section 7. PAYMENTS.

A. Terms of payment, are net thirty (30) days, less any applicable retention, after receipt of invoice, or completion of applicable Progress Milestones. Final payment shall be made by City after Supplier has satisfied all contractual requirements. Payment of invoices shall not constitute acceptance of Goods.

B. If Progress Milestones have been specified in Exhibit “B,” then payments for the Goods will be made as the requirements of such Progress Milestones are met. Progress payments for the Goods will be made by City upon proper application by Supplier during th e progress of the Goods and according to the terms of payment as specified in Exhibit “B.” Supplier’s progress billing invoice will include progress payments due for the original scope of work and changes. Each “Item for Payment” shown in Exhibit “B” and each change order will be itemized on the invoice. Invoices for cost plus work, whether part of Exhibit “B” or a change order, must have subcontractor and/or supplier invoices attached to Supplier’s invoice. Other format and support documents for invoices will be determined by City in advance of the first invoice cycle.

C. Payments otherwise due may be withheld by City, with prior notice to Supplier, on account of defective Goods not remedied, liens or other claims filed, reasonable evidence indicating probable filing of liens or other claims, failure of Supplier to make payments properly to its subcontractors or for material or labor, the failure of Supplier to perform any of its other obligations under the Agreement, or to protect City against any liability arising out of Supplier’s failure to pay or discharge taxes or other obligations. If the causes for which payment is withheld are removed, the withheld payments will be made promptly. If the said causes are not removed within a reasonable period after written notice, City may remove them at Supplier’s expense.

D. Payment of the final Progress Milestone payment or any retention will be made by City upon:
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(BB&K 2024) 4 Goods and Equipment Agreement

1. Submission of an invoice for satisfactory completion of the requirements of a Progress Milestone as defined in Exhibit “B” and in the amount associated with the Progress Milestone;

2. Written acceptance of the Goods by City;

3. Delivery of all drawings and specifications, if required by City;

4. Delivery of executed full releases of any and all liens arising out of this Agreement; and

5. Delivery of an affidavit listing all persons who might otherwise be entitled to file, claim, or maintain a lien of any kind or character, and containing an averment that all of the said persons have been paid in full.

If any person refuses to furnish an actual release or receipt in full, Supplier may furnish a bond satisfactory to City to indemnify City against any claim or lien at no cost to City.

E. Acceptance by Supplier of payment of the final Progress Milestone payment pursuant to Section 7.D will constitute a waiver, release and discharge of any and all claims and demands of any kind or character which Supplier then has, or can subsequently acquire against City, its successors and assigns, for or on account of any matter or thing arising out of, or in any manner connected with, the performance of this Agreement. However, payment for the final Progress Milestone by City will not constitute a waiver, release or discharge of any claims or demands which City then has, or can subsequently acquire, against Supplier, its successors and assigns, for or on account of any matter or thing arising out of, or in any manner connected with, the performance of this Agreement.

F. Automated Clearing House (“ACH”) payments. It is the City’s policy to pay its consultant invoices via electronic fund transfers through the ACH network. All payments due and owing pursuant to a properly issued and correct invoice or under this Agreement shall be made through electronic ACH transfe rs, unless otherwise agreed upon by both Parties in writing.

Supplier shall provide the City with ACH payment details whereby the City shall initiate the ACH transfers to Supplier in the amount required pursuant to a properly issued and correct invoice or under this Agreement. Each Party shall undertake any and all required actions and execute any required documents, instruments, or agreements required to effectuate the requirements of this Section. In the event the City erroneously deposits funds into an account, or otherwise deposits funds to which Supplier is not entitled: (1) Supplier shall immediately notify the City and the financial institution; (2) Supplier shall not withdraw any of the funds which were erron eously deposited or to which Supplier is not entitled; and (3) Supplier authorizes both the City and financial institution to take all actions necessary to correct the error and return to the City all funds erroneously deposited or to which Supplier is not entitled.

Section 8. SCHEDULE FOR DELIVERY.

A. The time of Supplier’s performance is of the essence for this Agreement. The Goods will be delivered in accordance with the schedule set forth in Exhibit “B.” Supplier must immediately notify City in writing any time delivery is behind schedule or may no t be completed on schedule.
245

(BB&K 2024) 5 Goods and Equipment Agreement

B. In the event that the Goods is part of a larger project or projects that require the coordination of multiple contractors or suppliers, then Supplier will fully cooperate in scheduling the delivery so that City can maximize the efficient completion of such project(s).

Section 9. TAXES.

A. Supplier agrees to timely pay all sales and use tax (including any value added or gross receipts tax imposed similar to a sales and use tax) imposed by any federal, state or local taxing authority on the ultimate purchase price of the Goods provided under this Agreement.

B. Supplier will withhold, and require its subcontractors, where applicable, to withhold all required taxes and contributions of any federal, state or local taxing authority which is measured by wages, salaries or other remuneration of its employees or the employees of its subcontractors. Supplier will deposit, or cause to be deposited, in a timely manner with the appropriate taxing authorities all amounts required to be withheld.

C. All other taxes, however denominated or measured, imposed upon the price of the Goods provided hereunder, will be the responsibility of Supplier. In addition, all taxes assessed by any taxing jurisdiction based on Supplier property used or consumed in the provision of the Goods such as and including ad valorem, use, personal property and inventory taxes will be the responsibility of Supplier.

D. Supplier will, upon written request, submit to City written evidence of any filings or payments of all taxes required to be paid by Supplier hereunder.

Section 10. INDEPENDENT CONTRACTOR.

Supplier enters into this Agreement as an independent contractor and not as an employee of City. Supplier shall have no power or authority by this Agreement to bind City in any respect.

Nothing in this Agreement shall be construed to be inconsistent with this relationship or status.

All employees, agents, contractors or subcontractors hired or retained by the Supplier are employees, agents, contractors or subcontractors of the Supplier and not of City. City shall not be obligated in any way to pay any w age claims or other claims made against Supplier by any such employees, agents, contractors or subcontractors or any other person resulting from performance of this Agreement.

Section 11. SUBCONTRACTS.

Unless otherwise specified, Supplier must obtain City’s written permission before subcontracting any portion of the Goods. Except for the insurance requirements in Section 13.A, all subcontracts and orders for the purchase or rental of supplies, materials or equipment, or any other part of the Goods, will require that the subcontractor be bound by and subject to all of the terms and conditions of the Agreement. No subcontract o r order will relieve Supplier from its obligations to City, including, but not limited to Supplier’s insurance and indemnification obligations. No subcontract or order will bind City.

Section 12. TITLE AND RISK OF LOSS.

Unless otherwise agreed, City will have title to, and risk of loss of, all completed and partially completed portions of the Goods upon delivery, as well as materials delivered to and 246

(BB&K 2024) 6 Goods and Equipment Agreement

stored on City property which are intended to become a part of the Goods. However, Supplier will be liable for any loss or damage to the Goods and/or the materials caused by Supplier or its subcontractors, their agents or employees, and Supplier will repl ace or repair said Goods or materials at its own cost to the complete satisfaction of City. Notwithstanding the foregoing, in the event that the City has paid Supplier for all or a portion of the Goods which remains in the possession of Supplier, then Cit y shall have title to, and the right to take possession of, such Goods at any time following payment therefor. Risk of loss for any Goods which remains in the possession of Supplier shall remain with Supplier until such Goods has been delivered or City has taken possession thereof. Supplier will have risk of loss or damage to Supplier’s property used in the construction of the Goods but which does not become a part of the Goods.

Section 13. INDEMNIFICATION.

A. Supplier shall defend, indemnify and hold the City, its officials, officers, employees, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any alleged acts, omissions, negligence or willful misconduct of Supplier, its officials, officers, employees, agents, subcontractors and subconsultants arising out of or in connection with the Goods or the performance of this Agreement, including without limitation the payment of all consequential damages and attorneys’ fees and other related costs and expenses except such loss or damage which was caused by the sole negligence or willful misconduct of the City.

B. Supplier’s defense obligation for any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, employees, agents, or volunteers shall be at Supplier’s own co st, expense, and risk.

Supplier shall pay and satisfy any judgment, award, or decree that may be rendered against City or its officials, officers, employees, agents, or volunteers, in any such suit, action, or other legal proceeding. Supplier shall reimb urse City and its officials, officers, employees, agents, and/or volunteers, for any reasonable legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided.

C. Supplier’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, its officials, officers, employees, agents or volunteers.

Section 14. INSURANCE.

A. General. Supplier shall take out and maintain:

1. Commercial General Liability Insurance, of at least $2,000,000 per occurrence/ $4,000,000 aggregate for bodily injury, personal injury and property damage, at least as broad as Insurance Services Office Commercial General Liability most recent Occurrence Form CG 00 01;

2. Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non -owned and hired vehicles, of at least $2,000,000 per accident for bodily injury and property damage, at least as broad as most recent Insurance Services Office Form Number CA 00 01 covering automobile liability, Code 1 (any auto); 247

(BB&K 2024) 7 Goods and Equipment Agreement

3. Workers’ Compensation in compliance with applicable statutory requirements and Employer's Liability Coverage of at least $1,000,000 per occurrence; and

4. If Supplier is also the manufacturer of any equipment included in the Goods, Supplier shall carry Product Liability and/or Errors and Omissions Insurance which covers said equipment with limits of not less than $1,000,000.

B. Additional Insured; Primary; Waiver of Subrogation; No Limitation on Coverage .

The policies required under this Section shall give City, its officials, officers, employees, agents or volunteers additional insured status on commercial general liability and automobile liability insurance with the endorsements. Such policies shall c ontain a provision stating that Supplier’s policy is primary insurance and that any insurance, deductible, or self -insurance maintained by the City or any additional insureds shall not be called upon to contribute to any loss, and shall contain or be endor sed with a waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers. The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Requirements of specific coverage or limits contained in this section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance. Any available cove rage shall be provided to the parties required to be named as additional insured pursuant to this Agreement.

C. Cancellation. Each insurance policy required by this Agreement shall be endorsed to state that: (A) coverage shall not be suspended, voided, reduced or canceled except after thirty (30) days (10 days for nonpayment of premium) prior written notice by certified mail, return receipt requested, has been given to the City; and (B) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to the City, its directors, officials, officers, employees, agents, and volunteers. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officials, officers, employees, agents and voluntee rs, or any other additional insureds
D. Insurance Carrier. All insurance required under this Section is to be placed with insurers with a current A.M. Best’s rating no less than A-:VII, licensed to do business in California, and satisfactory to the City.

E. Evidence of Insurance . Supplier shall furnish City with original certificates of insurance and endorsements effecting coverage required by the Agreement. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms supplied or approved by the City. All certificates and endorsements must be received and approved by the City before delivery commences. The City reserves the right to require complete, certified copies of all required insurance policies, at any time.

F. Subcontractors. All subcontractors shall meet the requirements of this Section before commencing work. In addition, Supplier shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.

G. Freight. Supplier shall ensure that third party shippers contracted by Supplier have adequate insurance coverage for the shipped Goods.
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Section 15. LIENS.

A. Supplier, subcontractors and suppliers will not make, file or maintain a mechanic’s or other lien or claim of any kind or character against the Goods, for or on account of any labor, materials, fixtures, tools, machinery, equipment, or any other things furnished, or any other work done or performance given under, arising out of, or in any manner connected with the Agreement (such liens or claims referred to as “Claims”); and Supplier, subcontractor and suppliers expressly waive and relinquish any and all rights which they now have, or may subsequently acquire, to file or maintain any Claim and Supplier, subcontractor and suppliers agree that this provision waiving the right of Claims will be an independent covenant.

B. Supplier will save and hold City harmless from and against any and all Claims that may be filed by a subcontractor, supplier or any other person or entity and Supplier will, at its own expense, defend any and all actions based upon such Claims and will pay all charges of attorneys and all costs and other expenses arising from such Claims.

Section 16. TERMINATION OF AGREEMENT BY CITY.

A. Should Supplier at any time refuse or fail to deliver the Goods with promptness and diligence, or to perform any of its other obligations under the Agreement, City may terminate Supplier’s right to proceed with the delivery of the Goods by written notice t o Supplier. In such event City may obtain the Goods by whatever method it may deem expedient, including the hiring of another contractor or other contractors and, for that purpose, may take possession of all materials, machinery, equipment, tools and appl iances and exercise all rights, options and privileges of Supplier. In such case Supplier will not be entitled to receive any further payments until the Goods is delivered. If City’s cost of obtaining the Goods, including compensation for additional mana gerial and administrative services, will exceed the unpaid balance of the Agreement, Supplier will be liable for and will pay the difference to City.

B. City may, for its own convenience, terminate Supplier’s right to proceed with the delivery of any portion or all of the Goods by written notice to Supplier. Such termination will be effective in the manner specified in such notice, will be without prejudice to any claims which City may have against Supplier, and will not affect the obligations and duties of Supplier under the Agreement with respect to portions of the Goods not terminated.

C. On receipt of notice under Section 16.B, Supplier will, with respect to the portion of the Goods terminated, unless the notice states otherwise,

1. Immediately discontinue such portion of the Goods and the placing of orders for materials, facilities, and supplies in connection with the Goods,

2. Unless otherwise directed by City, make every reasonable effort to procure cancellation of all existing orders or contracts upon terms satisfactory to City; and

3. Deliver only such portions of the Goods which City deems necessary to preserve and protect those portions of the Goods already in progress and to protect material, plant and equipment at the Goods site or in transit to the Goods site.

D. Upon termination pursuant to Section 16.B, Supplier will be paid a pro rata portion of the compensation in the Agreement for any portion of the terminated Goods already delivered, 249

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including material and services for which it has made firm contracts which are not canceled, it being understood that City will be entitled to such material and services. Supplier shall also be compensated for all Equipment in progress and any reasonable expenses incurred by Supplier in terminating orders placed with its suppliers and/or sub -Suppliers. Upon determination of the amount of said pro rata compensation, City will promptly pay such amount to Supplier upon delivery by Supplier of the releases of liens and affidavit, pursuant to Section 7.C.

Section 17. LIMITATION OF LIABILITY
In no event shall Supplier be liable for any consequential, special, punitive, incidental, or indirection damages arising out of or relating to this Agreement, including but not limited to damages for loss of use, loss of income, or loss of profit. Except for (A) indemnification obligations for third-party claims; and (B) damages caused by Supplier’s fraud, gross negligence, or willful misconduct, in no event s hall Supplier’s liability to City for claims arising out of this Agreement exceed the total purchase price payable hereunder.

This section 17 shall not apply to Supplier’s indemnity obligations for third-party claims.

Section 18. FORCE MAJEURE
A. Supplier shall not be held responsible for failure or delay in shipping nor City for failure or delay in accepting goods described herein if such failure or delay is due to a Force Majeure Event.

B. A Force Majeure Event shall mean an event that materially affects a Party’s performance and is one or more of the following: (1) Acts of God or other natural disasters occurring at the project site; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the work); (4) pandemics, epidemics or quarantine restrictions; and (5) strikes and other organized labor action occurring at the project site and the effects thereof on the work, only to the extent such strikes and other organized labor action are beyond the control of Supplier and its subcontractors, of every tier, and t o the extent the effects thereof cannot be avoided by use of replacement workers. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of the City in its capacity as a municipal authority.

C. In the event of any such excused interference with shipments, City shall have the option either to reduce the quantity provided for in the order accordingly or to exercise its right of cancellation as set forth in this Agreement.

Section 19. MISCELLANEOUS PROVISIONS.

A. Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address or at such other address as the respective parties may provide in writing for this purpose:

CITY:

City of Ontario
SUPPLIER:

De Nora Water Technologies, LLC
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303 East “B” Street
Ontario, CA 91764
Attn: Chris Bonadurer, Water Production
Manager

3000 Advance Lane
Colmar, PA 18915
Attn: Emile Musallam, Regional Sales Rep
Cc: Brent Shelley, Americas General
Counsel
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

B. Assignment or Transfer. Supplier shall not assign or transfer any interest in this Agreement whether by assignment or novation, without the prior written consent of the City, which will not be unreasonably withheld. Provided, however, that claims for money due or to become due Supplier from the City under this Agreement may be assigned to a financial institution or to a trustee in bankruptcy, without such approval. Notice of any assignment or transfer, whether voluntary or involuntary, shall be furnished promptly to the City.

C. Successors and Assigns. This Agreement shall be binding on the successors and assigns of the Parties.

D. Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

E. Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel or otherwise.

F. Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in San Bernardino County.

G. Attorneys’ Fees and Costs. If any action in law or equity, including an action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement, each Party shall pay its own attorneys’ fees.

H. Interpretation. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party.

I. No Third Party Beneficiaries . There are no intended third party beneficiaries of any right or obligation assumed by the Parties.

J. Authority to Enter Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right and authority to make this Agreement and bind each respective Party.
251

(BB&K 2024) 11 Goods and Equipment Agreement

K. Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

L. Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.

M. City’s Right to Employ Other Suppliers . City reserves its right to employ other contractors in connection with the Goods.

N. Entire Agreement. This Agreement constitutes the entire agreement between the Parties relative to the Goods specified herein. There are no understandings, agreements, conditions, representations, warranties or promises with respect to this Agreement, except those contained in or referred to in the writing.

SIGNATURES ON FOLLOWING PAGE

252

(BB&K 2024) 12 Goods and Equipment Agreement

SIGNATURE PAGE TO GOODS AND EQUIPMENT PURCHASE AGREEMENT

BETWEEN THE CITY OF ONTARIO

AND DE NORA WATER TECHNOLOGIES, LLC

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date first above written.

CITY OF ONTARIO DE NORA WATER TECHNOLOGIES, LLC
By:

Its:

Printed Name:

By:

Its:

Printed Name:

[If Corporation, TWO SIGNATURES,
President OR Vice President AND Secretary
OR Treasurer REQUIRED]

Approved By:

Scott Ochoa
City Manager
Approved as to Form:

_____________________________________
Best Best & Krieger LLP
City Attorney

Attested By:

Assistant City Clerk

253

(BB&K 2024) Exhibit A - 1 Goods and Equipment Agreement

Attachment A
EXHIBIT “A” – Goods Specifications

Task Order Quote Description Not to Exceed Fee
Original
Agreement
Quote No. P-98181 Q-22489 Rev. 7, Dated: 2025/01/31

$1,416,076
Grand Total $1,416,076

254

(BB&K 2024) Exhibit A - 2 Goods and Equipment Agreement

Quote No. P-98181 Q-22489 Rev. 7

255

(BB&K 2024) Exhibit A - 3 Goods and Equipment Agreement

256

(BB&K 2024) Exhibit A - 4 Goods and Equipment Agreement

257

(BB&K 2024) Exhibit A - 5 Goods and Equipment Agreement

258

(BB&K 2024) Exhibit A - 6 Goods and Equipment Agreement

259

(BB&K 2024) Exhibit A - 7 Goods and Equipment Agreement

260

(BB&K 2024) Exhibit A - 8 Goods and Equipment Agreement

261

(BB&K 2024) Exhibit A - 9 Goods and Equipment Agreement

262

(BB&K 2024) Exhibit A - 10 Goods and Equipment Agreement

263

(BB&K 2024) Exhibit A - 11 Goods and Equipment Agreement

264

(BB&K 2024) Exhibit A - 12 Goods and Equipment Agreement

265

(BB&K 2024) Exhibit A - 13 Goods and Equipment Agreement

266

(BB&K 2024) Exhibit A - 14 Goods and Equipment Agreement

267

(BB&K 2024) Exhibit A - 15 Goods and Equipment Agreement

268

(BB&K 2024) Exhibit A - 16 Goods and Equipment Agreement

269

(BB&K 2024) Exhibit A - 17 Goods and Equipment Agreement

270

(BB&K 2024) Exhibit A - 18 Goods and Equipment Agreement

271

(BB&K 2024) Exhibit A - 19 Goods and Equipment Agreement

272

(BB&K 2024) Exhibit A - 20 Goods and Equipment Agreement

273

(BB&K 2024) Exhibit A - 21 Goods and Equipment Agreement

274

(BB&K 2024) Exhibit A - 22 Goods and Equipment Agreement

275

(BB&K 2024) Exhibit A - 23 Goods and Equipment Agreement

276

(BB&K 2024) Exhibit A - 24 Goods and Equipment Agreement

277

(BB&K 2024) Exhibit A - 25 Goods and Equipment Agreement

278

(BB&K 2024) Exhibit A - 26 Goods and Equipment Agreement

279

(BB&K 2024) Exhibit A - 27 Goods and Equipment Agreement

280

(BB&K 2024) Exhibit A - 28 Goods and Equipment Agreement

281

(BB&K 2024) Exhibit B-1 Goods and Equipment Agreement

Attachment B
EXHIBIT “B” – Delivery Schedule
The services shall be completed within the durations specified below, following issuance of Purchase Order.

Quote Description Project
Duration
Not to
Exceed Fee
P.O.

Number
Quote Titled: ClorTec On-Site Sodium
Hypochloorite Generation System, Dated:
2025/01/31
6 months $1,416,076

Pending

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BB&K 2020

PAUL S. LEON
MAYOR
ALAN D. WAPNER

MAYOR PRO TEM
JIM W. BOWMAN

DEBRA PORADA

DAISY MACIAS

COUNCIL MEMBERS

SHEILA MAUTZ

CITY CLERK
JAMES R. MILHISER

CITY TREASURER

SCOTT OCHOA

CITY MANAGER
AMENDMENT NO. 1

TO THE GOODS AND EQUIPMENT PURCHASE AGREEMENT

BETWEEN THE CITY OF ONTARIO AND

D&H WATER SYSTEMS

1. Parties and Date.

This Amendment No. 1 to the Agreement (as defined herein) is made and entered as of ____________, by and between the City of Ontario (“City”) and D&H Water Systems , a Sole source parts distributor in this region. (“ Supplier”). City and Supplier are sometimes individually referred to as “Party” and collectively as “Parties.”

2. Recitals.

2.1 Agreement. T he City and Supplier have entered into an agreement entitled “ Goods and Equipment Purchase Agreement” dated July 17, 2024. (“Agreement”).

2.2 Amendment Purpose . T he City and Supplier desire to amend the Agreement to increase the compensation by Two Hundred Seventy -Four Thousand , Eight Hundred Forty - Nine Dollars ($274,84 9) for a total -not-to-exceed compensation of Three Hundred Ten Thousand, Five Dollars ($310,005) and includes an additional proposal to the Exhibit A through Exhibit B . This increase in compensation is for the additional goods and equipment listed in the attached Suppliers’ Proposal titled “ProMinent Dual Pump ProMus Chemical Feed Skids” and dated January 24, 2025.

2.3 Amendment Authority. This Amendment No. 1 is authorized pursuant to Section 6 of the Agreement.

3. Terms.

3.1 Amendment. Sections 14.A.4 and 14.A.5 of the agreement are hereby deleted in their entirety. Exhibit “A” and Exhibit “B” of the agreement is hereby amended in its entirety to read as follows:
283
Exhibit “A” – Goods Specifications is hereby amended in its entirety and replaced with Attachment A attached hereto and incorporated herein by reference.

Exhibit “B” – Delivery Schedule is hereby amended in its entirety and replaced with Attachment B attached hereto and incorporated herein by reference.

3.2 Continuing Effect of Agreement. Except as amended by this Amendment No. 1, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 1. From and after the date of this Amendment No. 1, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 1.

3.3 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 1.

3.4 Severability. If any portion of this Amendment No.1 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.5 Integration. This Amendment represents the entirety of the Parties’ understanding relating to the subject of this Amendment, including written or verbal communications between the Parties, which shall have no relevance unless expressly incorporated herein. This is an integrated amendment.
[SIGNATURES ON FOLLOWING PAGE]

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BB&K 2020
46700.00100\33287662.1
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46700.00100\33287662.1

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BB&K 2020

SIGNATURE PAGE FOR AMENDMENT NO. 1 TO THE GOODS AND EQUIPMENT

PURCHASE AGREEMENT BETWEEN THE CITY OF ONTARIO

AND D&H WATER SYSTEMS
IN WITNESS WHEREOF, the Parties have entered into this Amendment No.1 as of the day and year first above written.

CITY OF ONTARIO D&H Water Systems
By:

Its:

Printed Name:

By:

Its:

Printed Name:
[If Corporation, TWO SIGNATURES,
President OR Vice President AND Secretary
OR Treasurer REQUIRED]
Approved By:

Scott Ochoa
City Manager
Approved as to Form:
_____________________________________
Best Best & Krieger LLP
City Attorney
Attested By:

City Clerk
285
46700.00100\33287662.1

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BB&K 2020

Attachment A
EXHIBIT “A” – Goods Specifications
Task Order Quote Description Not to Exceed Fee
Original
Agreement
Quote No. Q2023-1265, Dated: 2024/02/08 $35,156
Amendment 1.0 Quote Titled: ProMinent Dual Pump ProMus Chemical Feed Skids, Dated: 2025/01/24
$274,849
Grand Total $310,005
286
46700.00100\33287662.1

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BB&K 2020

Quote No. Q2023-1265
287
46700.00100\33287662.1

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BB&K 2020

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46700.00100\33287662.1

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BB&K 2020

Quote Titled: ProMinent Dual Pump ProMus Chemical Feed Skids 290
46700.00100\33287662.1

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BB&K 2020

Attachment B
EXHIBIT “B” – Delivery Schedule
The services shall be completed within the durations specified below, following issuance of Purchase Order.

Amend
No.

Quote Description Project
Duration
Not to
Exceed Fee
P.O.

Number

1.0 Quote Titled: ProMinent Dual Pump ProMus
Chemical Feed Skids, Dated: 2025/01/24
6 months $274,849 Pending
294
Department: Utilities
Prepared By: Thomas Lambertson
Staff Member Presenting: Scott Burton, Utilities
General Manager
Reviewed By: Dennice Raygoza, Albert G
Gastelum, Michael Sigsbee
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 11
SUBJECT:

ADOPT A RESOLUTION

AUTHORIZING SIGNATURE AUTHORITY FOR PROJECT

AGREEMENTS AND DOCUMENTS FOR THE

EUCLID RECYCLED WATER PROJECT
AND WELL 50 TREATMENT FACILITY WITH THE UNITED STATES ARMY CORPS OF

ENGINEERS

CITY OF ONTARIO
Agenda Report
April 15, 2025
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Invest in the City's Infrastructure (Water, Streets, Sewers, Parks, Storm Drains and Public Facilities)
FISCAL IMPACT:

There is no impact to the General Fund. The USACE received $200,000 of Federal funding (appropriations) through a project submitted by Congresswoman Norma J. Torres to support City projects authorized under the Water Resources Development Act (WRDA). Of this funding, $25,000 will be allocated to preparing project partnership agreements. There is a cost-share element that requires the City fund 25% of project costs, and all costs for associated work not included in the project partnership agreements. Upon execution of the project partnership agreements, the remainder of the grant funds will be applied to the 75% of other project costs.

Beyond the initial $200,000 appropriation, annual allocations will be solicited through the City’s United States Congressional District Oﬃce for approval and inclusion into the Federal budget. These funds will cover 75% of the USACE’s continuing work, with the City contributing the remaining 25%. Total project costs are estimated to be $26 million over the next ﬁve years for the Euclid Avenue Recycled Water Project and $6 million for Well 50 Treatment Facility, for a total of $31 million. The City’s 25% cost-share responsibility of the estimated total would be $7.75 million.

As a requirement, the City will annually request additional WRDA funding based on upcoming increments of work. The City’s annual ﬁnancial commitment will be dependent on the annual Federal appropriations authorized by USACE for these projects. The City’s cost-share portion will be appropriated from the Water 295
Capital Fund in future Quarterly Budget Update Reports to the City Council.

BACKGROUND & ANALYSIS:

WRDA is a comprehensive legislative package that provides for the conservation and development of water and related resources. It authorizes the Secretary of the Army, through the Assistant Secretary of the Army for Civil Works, to conduct studies, construct projects, and conduct research activities that can improve the rivers and harbors of the United States. However, WRDA serves only as authorizing legislation and does not provide direct funding. The funding of WRDA- authorized studies and projects is provided separately through the annual Energy and Water Development appropriations process and, at times, through supplemental appropriations. Federal funds are budgeted to USACE for 75% of the applicable project costs. The City is responsible for the remaining 25% of applicable project costs, cost overruns, and other costs required to support the project, such as State-speciﬁc environmental reviews, project related costs, including engineering, administrative, bidding, and construction tasks.

The City’s adopted 2020 Urban Water Management Plan (UWMP) identiﬁes recycled water as a key component of Ontario’s plan for ensuring a long-term sustainable water supply. Recycled water is approved for use by the California State Water Resources Control Board - Division of Drinking Water for irrigation and industrial applications. One such initiative is the Euclid Avenue Recycled Water Project, which is included in the Capital Improvement Program. This project will develop a network of transmission and distribution main pipelines to deliver recycled water for irrigating street corridors, schools, parks, and other community development spaces. The project area is bounded by Baker Avenue to the East, James Bryant Park and D Street to the North, Oaks Street to the West, and Centennial Park to the South.

The UWMP also identiﬁes groundwater as the City’s largest individual water source. To protect this resource and meet the growing potable water demands in Ontario Ranch, existing Well No. 50 – which is currently inactive due to perchlorate contaminant approaching the state’s Maximum Contaminant Level – must be restored through treatment.

To support these eﬀorts, the Euclid Recycled Water Project and Well 50 Ion Exchange Treatment Facility Project were submitted by Congresswoman Norma J. Torres for consideration under WRDA. In 2024, the City was notified that the projects had been authorized, with $200,000 of the requested funding budgeted to USACE to begin the work in ﬁscal year 2024-2025. Under a Federal arrangement, USACE is responsible for managing all work associated with the project. The City will act as a partner and owner of the projects, ensuring the ﬁnal product meets City standards through collaboration with USACE. The City will also submit annual requests to Federally fund USACE work on future increments of work associated with each project, which may require separate project agreements in compliance with USACE policies and procedures. Upon project completion, USACE will turn over the new facilities to the City for operation and maintenance.

Upon execution of the initial project agreement, USACE can begin work on the Euclid Recycled Water Project. Adoption of the attached resolution will further authorize the City Manager or his designee to review, negotiate, and execute resulting agreements and amendments with USACE to obtain funding for the full scope of the Euclid Recycled Water Project and the Well 50 Ion Exchange Treatment Facility. 296
RESOLUTION NO. __________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ONTARIO, CALIFORNIA, AUTHORIZING THE CITY

MANAGER TO NEGOTIATE AND SIGN PROJECT

PARTNERSHIP AGREEMENTS FOR THE EUCLID
RECYCLED WATER PROJECT AND WELL 50 TREATMENT

FACILITY WITH THE UNITED STATES ARMY CORPS OF
ENGINEERS.

WHEREAS, the United States Army Corps of Engineers (USACE) has been delegated the responsibility for the administration and prosecution of work to complete projects awarded by the United States Congress under the Water Resources Development Act (WRDA); and
WHEREAS, the City of Ontario (City) desires to partner with the USACE to complete the City’s recycled water and well treatment projects through the water resource improvement provisions of WRDA and submitted projects for federal authorization through their District Congressional Representative; and WHEREAS, Federal funding was approved for Fiscal Year 2024 to cover all USACE costs to set up and execute project agreements with the City for the authorized projects under WRDA; and
WHEREAS, the USACE requires the City Council by resolution to authorize the City Manager, or designee, to sign and execute project agreements and provide financial certifications for USACE to carry out necessary Project-related activities; and WHEREAS, the City shall through their Congressional Representative, solicit annual funding requests for USACE to continue the work, and will provide all necessary support documentation for USACE to administer and execute amendments or new agreements to complete the authorized projects; and
WHEREAS, the USACE will administer and execute the project agreements, utilizing annual awarded Federal Funds for 75-percent and annual City funds for 25- percent of the total work completed under the project agreements; and WHEREAS, the USACE will execute and modify the scope of work under the project agreements in collaboration with the City and in accordance with the City’s preferences so that upon completion of the work, the constructed facilities will be wholly and completely transferred by USACE to the City for their use and benefit.

NOW, THEREFORE, THE CITY OF ONTARIO DOES HEREBY RESOLVE, ORDER, AND DETERMINE AS FOLLOWS:

SECTION 1. The City Council does hereby find and declare that the above recitals are true and correct.
297
SECTION 2. The City Manager (the “Authorized Representative”), or designee, is hereby authorized and directed to sign and file, for and on the behalf of the City, project agreements and any amendments thereto from the USACE for the planning, design, and construction of the Euclid Avenue Recycled Water Project and the Well 50 Treatment Facility (the “Project”).

SECTION 3. This Authorized Representative, or designee, is designated to provide the assurances, certifications, and commitments required to prepare the project partnership agreements, including negotiation and execution of financial assistance agreements with the USACE and any amendments or changes thereto.

SECTION 4. The Authorized Representative, or designee, is designated to represent the City in carrying out the City’s responsibilities under the project agreements, including certifying disbursements on behalf of the City and compliance with applicable state and federal statutory and regulatory requirements related to these projects and any federal and state grants or other such funds received.

SECTION 5. Be it further resolved and ordered, that any and all actions, whether previously or subsequently taken by the City, which are consistent with the intent and purposes of the foregoing resolution, shall be, and hereby are, in all respects, ratified, approved and confirmed.

SECTION 6. The City Clerk shall certify to the adoption of this Resolution.

SECTION 7. This Resolution shall become effective 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 15th day of April, 2025. _____________________________________
PAUL S. LEON, MAYOR
ATTEST:
____________________________________

SHEILA MAUTZ, CITY CLERK
298
APPROVED AS TO FORM:
____________________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY
299

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
300
Department: Financial Services
Prepared By: Cruz Torres
Staff Member Presenting: Armen Harkalyan,
Executive Director of Finance
Reviewed By: Claudia Hernandez, Matthew
Hernandez
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 12
SUBJECT:

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA,

LEVYING SPECIAL TAXES WITHIN CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 73 (WILDFLOWER ACRES)

CITY OF ONTARIO
Agenda Report
April 15, 2025
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

That the City Council consider and adopt an Ordinance authorizing the levy of special taxes within City of Ontario Community Facilities District No. 73 (Wildflower Acres).

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Operate in a Businesslike Manner
Focus Resources in Ontario's Commercial and Residential Neighborhoods Ensure the Development of a Well Planned, Balanced, and Self-Sustaining Community in Ontario Ranch
FISCAL IMPACT:

The use of Mello-Roos ﬁnancing in the Wildﬂower Acres residential development is projected to generate approximately $445,357 per year, at build-out, to fund administrative fees and municipal services; and approximately
$17.7 million in bond proceeds to be used to fund a
portion of the public infrastructure improvements needed to serve the project. Mello-Roos bonds are not a direct obligation of the City and are paid from special taxes levied on each taxable parcel in the District; therefore, there is no ﬁscal impact to the General Fund from the issuance of Mello- Roos bonds. City Council approval will be required to process annual special tax levies in future years.

BACKGROUND & ANALYSIS:

The Mello-Roos Community Facilities Act of 1982 (the Act) 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 public infrastructure facilities and to fund municipal services.

At a public hearing conducted by the City Council on April 1, 2025, the City Council adopted a Resolution of Formation of Community Facilities District No. 73 (Wildﬂower Acres); authorized the levy of a special tax; established an appropriations limit of the Community Facilities District; and called a special election for the Community Facilities District. On that date, an election was held in 301
which the qualiﬁed electors of the Community Facilities District approved said proposition by more than the two-thirds vote required by the Act. Adoption of the proposed ordinance to authorize the levy of special taxes within the Community Facilities District will conclude the formation process for the City of Ontario Community Facilities District No. 73 (Wildflower Acres).

The Wildﬂower Acres is a residential project development that is approximately 31.18 gross acres located north of Eucalyptus Avenue, west of Hamner Avenue, east of Clifton Avenue, and south of Ontario Ranch Road. At build-out, the project is expected to include a total of 333 residential units, comprised of 177 single-family units and 156 attached units. 302
ORDINANCE NO. ________

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO,

CALIFORNIA, LEVYING A SPECIAL TAX WITHIN CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 73 (WILDFLOWER ACRES) WHEREAS, on February 18, 2025, 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. 73 (Wildflower Acres) and to Authorize the Levy of a Special Tax Therein,” stating its intention to establish City of Ontario Community Facilities District No. 73 (Wildflower Acres) (the “Community Facilities District”) and to authorize the Community Facilities District to levy a special tax (the “Special Tax”) within the Community Facilities District for the purpose of financing certain public facilities (the “Facilities”) and services (the “Services”); and
WHEREAS, on April 1, 2025, the City Council held a noticed public hearing on the establishment of the Community Facilities District, as required by the Act; and WHEREAS, subsequent to the close of said hearing, the City Council adopted resolutions entitled “A Resolution of the City Council of the City of Ontario, California, of Formation of City of Ontario Community Facilities District No. 73 (Wildflower Acres), Proposing that the Community Facilities District be Authorized to Levy a Special Tax and Proposing that an Appropriations Limit of the Community Facilities District be Established” (the “Resolution of Formation”), “A Resolution of the City Council of the City of Ontario, California, Deeming it Necessary for City of Ontario Community Facilities District No. 73 (Wildflower Acres) to Incur Bonded Indebtedness” and “A Resolution of the City Council of the City of Ontario, California, Calling Special Election for City of Ontario Community Facilities District No. 73 (Wildflower Acres),” which resolutions established the Community Facilities District, proposed that the Community Facilities District be authorized to levy the Special Tax within the Community Facilities District, proposed that an appropriations limit of the Community Facilities District be established and called a special election to submit to the qualified electors of the Community Facilities District the combined ballot proposition to authorize the Community Facilities District to incur bonded indebtedness, to authorize the Community Facilities District to levy the Special Tax and to establish the appropriations limit of the Community Facilities District; and
WHEREAS, on April 1, 2025, an election was held in which the qualified electors of the Community Facilities District approved said proposition by more than the two-thirds vote required by the Act; and
WHEREAS, the City Council is the legislative body of the Community Facilities District;
303
THE CITY COUNCIL OF THE CITY OF ONTARIO DOES ORDAIN AS FOLLOWS:

SECTION 1. The City Council hereby authorizes and levies the Special Tax within the Community Facilities District pursuant to Sections 53328 and 53340 of the Act, at the rate and in accordance with the method of apportionment set forth in Exhibit B to the Resolution of Formation (the “Rate and Method”). The Special Tax is hereby levied commencing in fiscal year 2025-26 and in each fiscal year thereafter until the last fiscal year in which the Special Tax is authorized to be levied pursuant to the Rate and Method.

SECTION 2. The City Council may, pursuant to subdivision (b) of Section 53340 of the Act, provide, by resolution, for the levy of the Special Tax in the current tax year or 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.

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.

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 or in such other manner as the City Council shall determine, including direct billing of the affected property owners.

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 15th day of April, 2025. _____________________________________
PAUL S. LEON, MAYOR
304
ATTEST:
_________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
_______________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY
305

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 April 1, 2025 and adopted at the regular meeting held April 15, 2025 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 April 15, 2025 and that Summaries of the Ordinance were published on ___________ and _____________, in the Inland Valley Daily Bulletin newspaper.
__________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
306
Department: Public Works
Prepared By: Daniel P Beers
Staff Member Presenting: Tito Haes, Executive
Director Public Works
Reviewed By: Andrea Ampig, Bonnie Tam
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 13
SUBJECT:

AUTHORIZE A CHANGE ORDER TO THE CONSTRUCTION CONTRACT WITH

PHILBIN CONSTRUCTION COMPANY FOR THE DEBRIS REMOVAL AND FINE GRADING FOR ONTARIO'S GRAND PARK PHASE 1 PROJECT

CITY OF ONTARIO
Agenda Report
April 15, 2025
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

That the City Council take the following actions:

A
.

Authorize the City Manager, or his designee, to execute Change Order No. 2 to the Construction Contract with Philbin Construction Company, of Laguna Niguel, California for the debris removal and ﬁne grading of Ontario’s Grand Park Phase 1 in the amount of $11,990,790 for a total contract amount of $17,420,243 plus a contingency of $2,409,507 to address any unforeseen issues that may arise during the demolition for a total not-to-exceed contract amount of $19,829,750; and
B
.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

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
Focus Resources in Ontario's Commercial and Residential Neighborhoods FISCAL IMPACT:

The recommended Change Order No. 2 to the Construction Contract with Philbin Construction Company is in the amount of $11,990,790 plus a contingency of $2,409,507 for a total not-to-exceed contract amount of $19,829,750. If approved, appropriations in the Park Impact Fund will be requested at future quarterly budget updates to the City Council for approval as needed.

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BACKGROUND & ANALYSIS:

On December 21, 2021, the City Council approved the conceptual "Grand Park" Master Plan and the Preliminary Park Design for Phase 1. Phase 1 builds upon the framework established in the Conceptual Park Master Plan and is comprised of approximately 130 acres of land and occurs within the eastern portion of Ontario Ranch. This phase is bordered by Grand Park Street to the north, Eucalyptus Avenue to the south, Haven Avenue on the east and Archibald Avenue on the west. This portion of the park contains meadows, trails, and a multi-use ﬁeld that also functions as a stormwater capture system. Day one core park amenities are proposed in the center of this phase, which include a Market Alley designed for farmers markets, food trucks, and community events. There are plans for a community barn and farm hub, Kids’ Corral (a children’s playground), and a 5,000 capacity amphitheater along the central plaza.

Ontario’s Grand Park is anticipated to be operational by Summer of 2027.

On October 15, 2024, City Council awarded a Construction Contract to Philbin Construction Company for the mass grading of Ontario’s Grand Park. During the grading, buried concrete and trash were found 15 feet below the surface which needs to be removed immediately. The recommended Change Order No. 2 with Philbin Construction Company includes the removal of debris and completion of fine grading of the project site.

Because this change order relates to latent subsurface conditions which are not amenable to competitive bidding, and because the Contract Documents ensure that compensation for latent subsurface conditions is compensated at fair and reasonable rates, this change order is authorized by law notwithstanding its magnitude.
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46700.00100\33457526.1

CITY OF ONTARIO

CHANGE ORDER

Project: D&C21-005 Grand Park Phase 1 Grading

Contract Date: October 15, 2024

Change Order Number: 2

Change Order Date:

To: Philbin Construction Company
28202 Cabot Rd, Suite 300
Laguna Niguel, CA 92677
Attn: Joe Philbin

THIS CHANGE ORDER FORM SHALL BE USED FOR ALL CHANGE ORDER S ASSOCIATED WITH THE WORK.

NO ADDITIONS OR DELETIONS TO THIS FORM SHALL BE ALLOWED, EXCEPT WITH PERMISSION OF THE CITY OF ONTARIO.

The Contract is changed as follows:

• Per PCO #8 – Debris Removal and crush concrete. NTE increase of $8,591,120. • Per PCO #9 – Fine grading. NTE increase of $3,399,670.

Contractor agrees to furnish all labor, materials, equipment and services to perform the Work, modified as described herein, in accordance with the Contract Documents as revised by this Change Order.

NOT VALID UNTIL SIGNED BY OWNER

In consideration of the change(s) described above, the Contract Price is adjusted as follows:

The original Contract Price was $ 4,534,000
Net change by previously authorized Change Orders $ 895,453 The Contract Price prior to this Change Order was $ 5,429,453 The Contract Price will be changed by this Change Order in the amount of $ 11,990,790 The new Contract Price including this Change Order will be $ 17,420,243

In consideration of the change(s) describe above, the Contract Time is adjusted as follows:

The Contract Time will be: increased
decreased unchanged by 180 Days
The Contract Time prior to this Change Order was 226 Days The new Contract Time including this Change Order will be 406 Days PAUL S. LEON
MAYOR

ALAN D. WAPNER

MAYOR PRO TEM

JIM W. BOWMAN

DEBRA PORADA

DAISY MACIAS

COUNCIL MEMBERS

SHEILA MAUTZ

CITY CLERK

JAMES R. MILHISER

CITY TREASURER

SCOTT OCHOA

CITY MANAGER
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46700.00100\33457526.1

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Ontario City CouncilApril 15, 2025

Ontario City Council
April 15, 2025