Agenda packet — Ontario City Council, June 16, 2026 (part 1 of 28)

CITY OF ONTARIO
Regular City Council/Housing Authority
Meeting
JUNE 16, 2026
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 submit written public comments by email, please send your name, the agenda item you are commenting on, and your comments to [email protected]. The public comment submission window opens at the time the agenda is published and remains open until 4:00 p.m. on the day of the meeting. All comments received during this timeframe 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 Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 1 ATTACHMENT: 20260616 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 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(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

PLEDGE OF ALLEGIANCE
CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 2 1. APPROVAL OF MINUTES
Council Member Porada

INVOCATION
Pastor Richard Hernandez, The Church of God

REPORT ON CLOSED SESSION
City Attorney
PUBLIC COMMENTS 6:30 P.M.

The Public Comment portion of the Council/Housing Authority meeting is limited to 30 minutes.

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. 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.

Minutes for the cancelled regular meetings of the City Council and Housing Authority of May CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 3 ATTACHMENT: 20260519 C Minutes (Not Official Until Approved).docx

2. BILLS & PAYROLL

3. AN ORDINANCE APPROVING A DEVELOPMENT AGREEMENT (FILE NO. PDA25-004)

BETWEEN THE CITY OF ONTARIO, SLV LC CENTER LLC, HCW LC CENTER LLC, STRACK FARMS LAND LLC, RHV EDISON AVE LLC, MV EDISON AVE LLC, AND EPC HOLDINGS 938 LLC
ATTACHMENT: File No. PDA25-004_Risewell Homes_01_EXH A&B.pdf ATTACHMENT: File No. PDA25-004 Risewell Homes 02 ORD_RM ATTACHMENT: File No. PDA25-004_Risewell Homes_03_DEV_AGR.doc

4. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, LEVYING SPECIAL TAXES WITHIN CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 77 (THE

RESORT AT ONTARIO RANCH FACILITIES)
ATTACHMENT: CFD_77_The_Resort_at_Ontario_Ranch_05_Ordinance_Levy_Tax__1_RM. docx

5. RESOLUTIONS TO CALL AND GIVE NOTICE, CONSOLIDATE AND ADOPT REGULATIONS FOR CANDIDATE STATEMENTS FOR THE GENERAL MUNICIPAL ELECTION OF NOVEMBER 3, 2026 19, 2026, and approving same as on file in the Records Management Department.

Bills May 15, 2026 through May 28, 2026, and Payroll May 3, 2026 through May 16, 2026.

That the City Council adopt an Ordinance Approving a Development Agreement (File No.

PDA25-004) between the City of Ontario, SLV LC Center LLC, HCW LC Center LLC, Strack Farms Land LLC, RHV Edison Ave LLC, MV Edison Ave LLC, and EPC Holdings 938 LLC

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, RECOMMENDING CITY COUNCIL APPROVE FILE NO. PDA25-004, A DEVELOPMENT AGREEMENT

BETWEEN THE CITY OF ONTARIO AND SLV LC CENTER LLC, HCW LC CENTER LLC, STRACK FARMS LAND LLC, RHV EDISON AVE LLC, MV EDISON AVE LLC, AND EPC HOLDINGS 938, LLC TO ESTABLISH THE TERMS AND CONDITIONS ASSOCIATED WITH TENTATIVE PARCEL MAP NO. 20779 (FILE NO. PMTT25-007), LOCATED ON THE NORTHWEST CORNER OF HAMNER AVENUE AND LADYBUG PASEO WITHIN PLANNING AREA 10A OF THE RICH-HAVEN SPECIFIC PLAN. (APN:
0218-211-40).

That the City Council adopt an Ordinance authorizing the levy of special taxes within City of Ontario Community Facilities District No. 77 (The Resort at Ontario Ranch Facilities).

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, LEVYING A SPECIAL TAX WITHIN CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 77 (THE RESORT AT ONTARIO RANCH FACILITIES).

That the City Council adopt the following Resolutions:

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 4 ATTACHMENT: Resolution Calling for Holding a General Municipal Election_01_RM ATTACHMENT: Resolution Request to Consolidate a General Municipal Election 02_RM ATTACHMENT: Resolution Regulations for Candidate Statements 03_RM

6. ANNUAL LEVY OF ASSESSMENTS WITHIN ONTARIO PARKWAY MAINTENANCE ASSESSMENT DISTRICT NOS. 1, 2, 3, AND 4 FOR FISCAL YEAR 2026-27 A. A Resolution to call and set the date for the General Municipal Election as November 3, 2026;
B. A Resolution to request the San Bernardino County Registrar of Voters to consolidate the election with the General Election; and
C. A Resolution establishing regulations pertaining to Candidate Statements

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

THE HOLDING OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 3, 2026, FOR THE ELECTION OF CERTAIN OFFICERS AS REQUIRED BY THE PROVISIONS OF THE LAWS OF THE STATE OF CALIFORNIA RELATING TO GENERAL LAW CITIES.

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

THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN BERNARDINO TO CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 3, 2026 WITH THE STATEWIDE GENERAL ELECTION, PURSUANT TO §10403 OF THE ELECTIONS CODE.

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

REGULATIONS FOR CANDIDATES FOR ELECTIVE OFFICE PERTAINING TO CANDIDATES

STATEMENTS SUBMITTED TO THE VOTERS AT AN ELECTION TO BE HELD ON TUESDAY, NOVEMBER 3, 2026.

That the City Council adopt:

A. A Resolution ordering the preparation of the Assessment Engineer's Reports for proceedings for the annual assessment levy within Ontario Parkway Maintenance Assessment District (OPMAD) Nos. 1, 2, 3, and 4;
B. A Resolution approving the Assessment Engineer's Reports for the annual levy of assessments within OPMAD Nos. 1, 2, 3, and 4; and
C. A Resolution for OPMAD Nos. 1, 2, and 3, and a separate Resolution for OPMAD No. 4, declaring the City’s intention to provide for an annual levy and collection of assessments for Fiscal Year 2026-27 and set the date of July 21, 2026, for a Public Hearing on each district in accordance with the Landscaping and Lighting Act of 1972.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, ORDERING THE PREPARATION OF THE ASSESSMENT ENGINEER’S REPORTS PURSUANT TO THE PROVISIONS OF DIVISION 15, PART 2, OF THE STREETS AND HIGHWAYS CODE OF THE STATE OF CALIFORNIA,

FOR PROCEEDINGS FOR THE ANNUAL ASSESSMENT LEVY WITHIN ONTARIO PARKWAY MAINTENANCE ASSESSMENT DISTRICTS NO. 1, 2, 3 AND 4 FOR FISCAL YEAR 2026-27.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING THE ASSESSMENT ENGINEER’S REPORTS FOR THE ANNUAL LEVY OF ASSESSMENTS WITHIN CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 5 ATTACHMENT: OPMAD Levy Table 01 Exhibit A
ATTACHMENT: OPMAD Levy 02 Vicinity Maps.pdf
ATTACHMENT: OPMAD Levy 03 Boundary and Inventory Maps.pdf ATTACHMENT: OPMAD Levy 04 RESO Ordering Engineer Report RM ATTACHMENT: OPMAD Levy 05 RESO Approving Engineer Report RM ATTACHMENT: OPMAD Levy 06 RESO Intention to Levy 1 2 and 3 RM ATTACHMENT: OPMAD Levy 07 RESO Intention to Levy 4 RM

7. ANNUAL LEVY OF ASSESSMENTS WITHIN STREET LIGHTING MAINTENANCE DISTRICT NOS. 1 AND 2 FOR FISCAL YEAR 2026-27
ONTARIO PARKWAY MAINTENANCE ASSESSMENT DISTRICTS NO. 1, 2, 3, AND 4 FOR FISCAL YEAR 2026-27.

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

INTENTION TO PROVIDE FOR AN ANNUAL LEVY AND COLLECTION OF ASSESSMENTS FOR FISCAL YEAR 2026-27 IN ONTARIO PARKWAY MAINTENANCE ASSESSMENT DISTRICTS NO. 1, 2, AND 3, PURSUANT TO THE PROVISIONS OF DIVISION 15, PART 2, OF THE STREETS AND

HIGHWAYS CODE OF THE STATE OF CALIFORNIA, AND SETTING A TIME AND PLACE FOR A PUBLIC HEARING THEREON.

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

INTENTION TO PROVIDE FOR AN ANNUAL LEVY AND COLLECTION OF ASSESSMENTS FOR FISCAL YEAR 2026-27 IN ONTARIO PARKWAY MAINTENANCE ASSESSMENT DISTRICT NO. 4, PURSUANT TO THE PROVISIONS OF DIVISION 15, PART 2, OF THE STREETS AND HIGHWAYS

CODE OF THE STATE OF CALIFORNIA, AND SETTING A TIME AND PLACE FOR A PUBLIC HEARING THEREON.

That the City Council consider and adopt:

A. A Resolution ordering the preparation of the Assessment Engineer’s Reports for proceedings for the annual assessment levy within Street Lighting Maintenance District (SLMD) Nos. 1 and 2;
B. A Resolution approving the Assessment Engineer's Reports for the annual levy of assessments within SLMD Nos. 1 and 2; and
C. A Resolution for each district declaring the City’s intention to provide for an annual levy and collection of assessments for Fiscal Year 2026-27 and set the date of July 21, 2026, for a Public Hearing on each district in accordance with the Landscaping and Lighting Act of 1972.

FOR PROCEEDINGS FOR THE ANNUAL ASSESSMENT LEVY WITHIN ONTARIO STREET LIGHTING MAINTENANCE DISTRICTS NO. 1 AND NO. 2 FOR FISCAL YEAR 2026-27.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING THE CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 6 ATTACHMENT: SLMD Levy Table 01 Exhibit A
ATTACHMENT: SLMD Levy 02 Vicinity Maps.pdf
ATTACHMENT: SLMD Levy 03 Boundary and Inventory Maps.pdf ATTACHMENT: SLMD Levy 04 RESO Ordering Engineer Report RM ATTACHMENT: SLMD Levy 05 RESO Approving Engineer Report RM ATTACHMENT: SLMD Levy 06 RESO Intention to Levy 1 RM
ATTACHMENT: SLMD Levy 07 RESO Intention to Levy 2 RM

8. INFORMATION TECHNOLOGY SERVICE REVENUE CONTRACT WITH THE COUNTY OF SAN

BERNARDINO FOR THE PUBLIC SAFETY COMMUNICATIONS SYSTEM ACCESS AND

MAINTENANCE SERVICES
ATTACHMENT: New Proposed Rates_55. City of Ontario-LTR-PSC Rate Change 2026-27 S.pdf
ATTACHMENT: Draft_County_Radio_Services_Agreement_Approved_BBK_- __BBK_04.30.26__44969437.1
ATTACHMENT: County Radio Projections_2026.pdf

9. A SOLE SOURCE PURCHASE WITH MOTOROLA SOLUTIONS, INC. FOR MOTOROLA RADIO

EQUIPMENT FOR THE FIRE ADMINISTRATION BUILDING PROJECT
ASSESSMENT ENGINEER’S REPORTS FOR THE ANNUAL LEVY OF ASSESSMENTS WITHIN ONTARIO STREET LIGHTING MAINTENANCE DISTRICTS NO. 1 AND NO. 2 FOR FISCAL YEAR 2026-27.

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

INTENTION TO PROVIDE FOR AN ANNUAL LEVY AND COLLECTION OF ASSESSMENTS FOR FISCAL YEAR 2026-27 IN ONTARIO STREET LIGHTING MAINTENANCE DISTRICT NO. 1 PURSUANT TO THE PROVISIONS OF DIVISION 15, PART 2, OF THE STREETS AND HIGHWAYS

CODE OF THE STATE OF CALIFORNIA, AND SETTING A TIME AND PLACE FOR A PUBLIC HEARING THEREON.

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

INTENTION TO PROVIDE FOR AN ANNUAL LEVY AND COLLECTION OF ASSESSMENTS FOR FISCAL YEAR 2026-27 IN ONTARIO STREET LIGHTING MAINTENANCE DISTRICT NO. 2, PURSUANT TO THE PROVISIONS OF DIVISION 15, PART 2, OF THE STREETS AND HIGHWAYS

CODE OF THE STATE OF CALIFORNIA, AND SETTING A TIME AND PLACE FOR A PUBLIC HEARING THEREON.

That the City Council authorize the City Manager, or his designee, to execute a five-year Information Technology Service Revenue Contract with the County of San Bernardino for the Public Safety Communications System Access and Maintenance Services for an estimated annual amount of $1,930,277 for an estimated total contract amount of $9,651,385.

That the City Council authorize the City Manager, or designee, to approve the purchase of Command Central AXS dispatch Dispatch Consoles, APX Consolettes with MCD5000 Desksets, and Site site networking equipment for the Fire Administration Building project from Motorola Solutions, Inc. (Motorola), of Chicago, Illinois, for a not-to-exceed total amount of not-toCITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 7 ATTACHMENT: Ontario FD Radio Console Quote.pdf

10. AN AMENDMENT TO THE DESIGN SERVICES AGREEMENT WITH HMC ARCHITECTS AND AN

AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH TILDEN-COIL CONSTRUCTORS, INC. FOR THE FIRE STATION 11/PUBLIC SAFETY CENTER AND ANIMAL

RESOURCE CENTER PROJECTS
ATTACHMENT: Amendment No. 5 - HMC.pdf
ATTACHMENT: Amendment No. 8 - Tilden Coil.pdf

11. AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH TRANSTECH ENGINEERS, INC. FOR THE SPORTS EMPIRE AND FIRE ADMINISTRATION BUILDING

PROJECTS
exceed $913,607.

That the City Council take the following actions:

A. Authorize the City Manager, or his designee, to execute Amendment No. 5 to the Design Services Agreement with HMC Architects, of Ontario, California, to provide architectural and engineering services for the D&C23-005 Fire Station 11/Public Safety Center project in the amount of $9,872,775 for a total not-to-exceed contract amount of $19,818,902; and
B. Authorize the City Manager, or his designee, to execute Amendment No. 8 to the Professional Services Agreement with Tilden-Coil Constructors, Inc., of Riverside, California, to provide construction management multi-prime services for the D&C23-005 Fire Station 11/Public Safety Center project and the Animal Resource Center project in the amount of $10,959,376 for a total not-to-exceed contract amount of $84,588,394; and
C. Authorize the City Manager, or his designee, to execute all documents required for the completion of the projects, which may include, but are 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 Amendment No. 8 to the Professional Services Agreement with Transtech Engineers, Inc., of Chino, California, to provide plan check, building official, and building inspection services for the Sports Empire project in the amount of $485,000 for a total not-to-exceed contract amount of $7,316,900; and
B. Authorize the City Manager, or his designee, to execute Amendment No. 13 to the Professional Services Agreement with Transtech Engineers, Inc., of Chino, California, to provide construction management services for the Fire Administration Building project in the amount of $388,300 for a total not-to-exceed contract amount of $6,714,839; and C. Authorize the City Manager, or his designee, to execute all documents required for the completion of the projects which may include, but not limited to, agreements, CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 8 ATTACHMENT: Amendment 8 - Transtech.pdf
ATTACHMENT: Amendment No. 13 - Transtech.pdf

12. A PROFESSIONAL SERVICES AGREEMENT WITH WEST YOST & ASSOCIATES, INC., FOR THE

LEAD AND COPPER RULE IMPROVEMENTS
ATTACHMENT: 20260616 PSA with West Yost and Associates 01 AGMT.pdf

13. AN AMENDMENT TO THE MAINTENANCE SERVICES AGREEMENT WITH WESTERN ALLIED

CORPORATION FOR HVAC MAINTENANCE AND REPAIR SERVICES AT VARIOUS CITY

FACILITIES
ATTACHMENT: Western Allied Amendment No. 5 final.pdf

14. AN AGREEMENT WITH CAL BUILDING SYSTEMS INC FOR FIRE SPRINKLER AND KITCHEN

SUPPRESSION SYSTEM SERVICES AT VARIOUS CITY LOCATIONS
ATTACHMENT: CAL BUILDING SYSTEMS INC.pdf

15. AN AMENDMENT TO THE DESIGN SERVICES AGREEMENT WITH GHD INC., FOR 1348

PRESSURE ZONE WATER TRANSMISSION MAIN IMPROVEMENT PROJECT ATTACHMENT: Exhibit A.pdf
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 designee, to execute a three-year Professional Services Agreement with West Yost & Associates, Inc., of Davis, California, for the Lead and Copper Rule Improvement Services for a total not-to-exceed amount of $250,000 and a term from July 1, 2026 to June 30, 2029, with the option to extend the Agreement for up to two additional one-year terms.

That the City Council authorize the City Manager, or designee, to execute Amendment No. 5 to the Maintenance Services Agreement with Western Allied Corporation of Santa Fe Springs, California, for HVAC (Heating, Ventilation, and Air Conditioning) maintenance and repair services at various City facilities in the amount of $765,000, for a total-not-to-exceed contract amount of $4,153,000, and extend the agreement for an additional one-year term.

That the City Council authorize the City Manager, or his designee, to Piggyback the Agreement between the City of Santa Ana of Santa Ana, California, and Cal Building System, Inc., of Yorba Linda, California for fire sprinkler and kitchen suppression system services at various City facilities for a total not-to-exceed amount of $252,600 through Fiscal Year 2027-28, with the option to extend the agreement for up to two additional one-year terms, consistent with the terms and conditions of the City of Santa Ana's Agreement Contract No. A-2025-140-04.

That the City Council authorize the City Manager, or designee, to execute Amendment No. 1 to the Design Services Agreement with GHD Inc., (GHD) of Irvine, California, to provide on-call design services for the 1348 Pressure Zone Water Transmission Main Improvement Project in the amount of $1,393,699 for a new total revised not-to-exceed amount of $1,993,669, and a term of June 4, 2024 to May 30, 2029.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 9 ATTACHMENT: 20260616 Amendment No. 1 to GHD 01 AGMT.pdf

16. AN AMENDMENT TO THE MAINTENANCE SERVICES AGREEMENT WITH HPS WEST, INC.,

DBA HYDROPRO SOLUTIONS FOR ADVANCED METERING INFRASTRUCTURE TECHNOLOGY PHASE 2 PROJECT
ATTACHMENT: Exhibit A.pdf
ATTACHMENT: 02 Hydropro MSA Amendment No. 1.pdf

17. AN AMENDMENT NO. 2 TO THE MAINTENANCE AND SERVICES AGREEMENT WITH CNC

TECHNOLOGIES, LLC FOR CNC LIVE AND DOWNLINK YEARLY SUBSCRIPTION, SERVICE AND

SUPPORT
ATTACHMENT: Amendment to Non-Construction Contract_CNC
Technologies_4.1.2026REV.doc
ATTACHMENT: Attachment A_OPD002242-105 Rev A- 04-16-2026 SS and T and CNC Live Service Extension 2026 - 2028 Alt.pdf

18. AN UPDATED LOAN AGREEMENT BETWEEN THE CITY OF ONTARIO AND CONFIRE JOINT

POWERS AUTHORITY FOR INITIAL CAPITAL FUNDING TO ESTABLISH AMBULANCE

SERVICING
ATTACHMENT: Ontario - CONFIRE Revised Loan Agreement_06.16.2026.docx

19. A RESOLUTION APPROVING AN UPDATE TO THE CITY'S 529 COLLEGE SAVINGS PLAN That the City Council approve and authorize the City Manager, or designee, to execute Amendment No. 1 to the Maintenance Services Agreement with HPS West, Inc., dba HydroPro Solutions of Ontario, California, to provide installation and maintenance services for the Advanced Metering Infrastructure (AMI) Technology Phase 2 Project in the amount of $700,266 for a new total revised not-to-exceed amount of $1,146,404, and a term of August 19, 2025 to June 30, 2030.

That the City Council authorize the City Manager, or his designee, to execute Amendment No. 2 to the Maintenance Services Agreement with CNC Technologies, LLC, of Oak Park, California, for the annual CNC Live and Downlink subscription, service, and support program; extend the agreement for an additional one-year term; and increase the contract amount by $82,150, for a revised total not-to-exceed amount of $195,025.

That the City Council authorize the City Manager or his designee to execute all documents related to the Loan Agreement between the City of Ontario and CONFIRE Joint Powers Authority in the amount of $20,000,000.

That the City Council adopt a Resolution designating a plan sponsor and a plan administrator for the City's voluntary 529 college savings plan administered by American Funds.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, DESIGNATING A PLAN SPONSOR AND PLAN ADMINISTRATOR FOR THE CITY’S VOLUNTARY 529 COLLEGE SAVINGS PLAN.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 10 ATTACHMENT: 529 College Savings Plan RESO RM.docx

20. A PUBLIC HEARING TO CONSIDER CITY COUNCIL CERTIFICATION OF A SUPPLEMENTAL

ENVIRONMENTAL IMPACT REPORT, INCLUDING ADOPTION OF A MITIGATION

MONITORING AND REPORTING PROGRAM AND A STATEMENT OF OVERRIDING CONSIDERATIONS; APPROVAL OF THE ONTARIO PLAN 2050 POLICY PLAN (GENERAL PLAN) AMENDMENT; AND APPROVAL OF A ZONING MAP AMENDMENT

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 conduct a public hearing and take the following actions:

A. Consider and adopt a Resolution certifying the Ontario Policy Plan Amendment Supplemental Environmental Impact Report (SEIR), including adoption of a Statement of Overriding Considerations and a Mitigation Monitoring and Reporting Program; and B. Consider and adopt a Resolution approving The Ontario Plan 2050 Policy Plan Amendment (General Plan), File No. PGPA25-002; and
C. Introduce and waive further reading of an Ordinance approving a Zoning Map Amendment, File No. PZC25-002, to implement the Policy Plan Amendment.

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

POLICY PLAN AMENDMENT SUPPLEMENTAL ENVIRONMENTAL IMPACT REPORT (SEIR) (STATE CLEARINGHOUSE NO. 2025110102), ADOPTING ENVIRONMENTAL FINDINGS AND A

STATEMENT OF OVERRIDING CONSIDERATIONS PURSUANT TO THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT, AND APPROVING A MITIGATION MONITORING AND REPORTING PROGRAM FOR THE ONTARIO PLAN 2050 POLICY PLAN AMENDMENT, THE

EUCALYPTUS BUSINESS PARK SPECIFIC PLAN, AND CITYWIDE ZONING MAP AMENDMENT FILE NOS. PGPA25-002 AND PZC25-002 AND — APNS: 0113-282-15, 0216-174-01, 0216-174-02, 0216-174-06, 0216-174-07, 0216-174-08, 0216-174-16, 0216-174-17, 0216-211-01, 0216-211-04, 0216-211-20, 0216-211-24, 0216-211-26, 0216-214-01, 0216-214-02, 0216-214-03, 0216-214-04, 0216-214-05, 0216-214-06, 0216-214-07 0216-311-03, 0216-311-04, 0216-311-05, 0216-311-08, 0216-311-09, 0216-312-02, 0216-312-03 0216-312-04, 0216-312-05, 0216-312-06, 0216-312-07, 0216-312-08, 0216-312-09, 0216-312-10, 0216-313-01, 0216-313-02, 0216-313-03, 0216-313-04, 0216-313-05, 0216-313-06, 0216-313-07, 0216-313-08, 0216-313-09, 0216-314-01, 0216-314-02, 0216-314-03, 0216-314-04, 0216-314-05, 0216-314-07, 0216-314-08, 0216-314-09, 0216-321-01, 0216-321-02, 0216-321-03, 0216-321-06, 0216-321-07, 0216-322-01, 0216-322-02, 0216-322-10, 0216-323-01, 0216-323-02, 0216-323-08, 0216-323-09, 0218-102-10, 0218-102-11, 0218-111-06, 0218-111-08, 0218-111-09, 0218-111-11, 0218-111-12, 0218-111-49, 0218-111-50, 0218-121-01, 0218-121-02, 0218-121-03, 0218-121-04, 0218-121-05, 0218-121-06, 0218-121-07, 0218-121-08, 0218-122-01, 0218-122-02, 0218-122-03, 0218-122-04, 0218-122-06, 0218-122-08, 0218-122-09, CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 11 0218-131-35, 0218-161-13, 0218-161-14, 0218-181-01, 0218-181-02, 0218-181-11, 0218-181-12, 0218-181-15, 0218-181-16, 0218-181-21, 0218-181-23, 0218-181-24, 0218-181-25, 0218-181-26, 0218-191-19, 0218-191-24, 0218-241-43, 0218-241-45, 0218-402-32, 1049-101-01, 1049-101-02, 1049-101-04, 1049-101-05, 1049-101-06, 1049-101-07, 1049-101-08, 1049-101-09, 1049-101-10, 1049-101-11, 1049-101-12, 1049-101-13, 1049-101-14, 1049-101-15, 1049-101-16, 1049-101-17, 1049-101-18, 1049-101-29, 1049-101-30, 1049-101-31, 1049-101-32, 1049-101-33, 1049-101-34, 1049-101-35, 1049-101-36, 1049-101-37, 1049-101-38, 1049-101-39, 1049-131-40, 1049-131-01, 1049-131-02, 1049-131-03, 1049-131-04, 1049-131-05, 1049-131-06, 1049-131-08, 1049-131-09, 1049-131-18, 1049-131-19, 1049-161-24, 1049-161-25, 1049-171-05, 1049-171-06, 1049-171-07, 1052-151-02, 1052-151-05, 1052-151-09, 1052-151-10, 1052-151-11, 1052-161-03, 1052-471-02, 1052-481-02, 1052-491-03, 1052-491-05, 1052-491-06, 1053-091-01, 1053-101-01, 1053-101-02, 1053-111-01, 1053-111-03, 1053-111-04, 1053-111-08, 1053-151-04, 1053-151-05, 1053-161-02, 1053-171-01, 1053-171-03, 1053-171-04, 1053-171-05, 1053-171-06, 1053-181-01, 1053-181-02, 1053-191-01, 1053-191-02, 1053-201-01, 1053-301-01, 1053-301-02, 1053-311-01, 1053-311-02, 1053-321-02, 1053-321-03, 1053-331-04, 1053-341-01, 1053-341-02, 1053-351-02, 1053-391-01, 1053-411-01, 1053-421-01, 1053-421-02, 1053-511-01, 1053-511-02, 1053-511-03, 1053-511-05, 1053-511-06, 1053-511-07, 1053-521-01, 1053-521-02, 1053-531-01, 1053-531-02, 1053-531-04, 1053-541-01, 1053-541-02, 1053-551-01, 1053-571-01, 1053-571-02, 1053-581-03, 1053-581-04, 1053-591-01, 1053-591-02, 1053-601-01, 1053-601-02, 1053-601-03, AND 1053-601-04.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PGPA25-002, A CITYWIDE AMENDMENT TO THE ONTARIO PLAN 2050 POLICY PLAN (GENERAL PLAN), AND MAKING FINDINGS IN SUPPORT THEREOF — APNS: 0113-282-15, 0216- 174-01, 0216-174-02, 0216-174-06, 0216-174-07, 0216-174-08, 0216-174-16, 0216-174-17, 0216-211-01, 0216-211-04, 0216-211-20, 0216-211-24, 0216-211-26, 0216-214-01, 0216-214-02, 0216-214-03, 0216-214-04, 0216-214-05, 0216-214-06, 0216-214-07, 0216-311-03, 0216-311-04, 0216-311-05, 0216-311-08, 0216-311-09, 0216-312-02, 0216-312-03, 0216-312-04, 0216-312-05, 0216-312-06, 0216-312-07, 0216-312-08, 216-312-09, 0216-312-10, 0216-313-01, 0216-313-02, 0216-313-03, 0216-313-04, 0216-313-05, 0216-313-06, 0216-313-07, 0216-313-08, 0216-313-09, 0216-314-01, 0216-314-02, 0216-314-03, 0216-314-04, 0216-314-05, 0216-314-07, 0216-314-08, 0216-314-09, 0216-321-01, 0216-321-02, 0216-321-03, 0216-321-06, 0216-321-07, 0216-322-01, 0216-322-02, 0216-322-10, 0216-323-01, 0216-323-02, 0216-323-08, 0216-323-09, 0218-102-10, 0218-102-11, 0218-111-06, 0218-111-08, 0218-111-09, 0218-111-11, 0218-111-12, 0218-111-49, 0218-111-50, 0218-121-01, 0218-121-02, 0218-121-03, 0218-121-04, 0218-121-05, 0218-121-06, 0218-121-07, 0218-121-08, 0218-122-01, 0218-122-02, 0218-122-03, 0218-122-04, 0218-122-06, 0218-122-08, 0218-122-09, 0218-131-35, 0218-161-13, 0218-161-14, 0218-181-01, 0218-181-02, 0218-181-11, 0218-181-12, 0218-181-15, 0218-181-16, 0218-181-21, 0218-181-23, 0218-181-24, 0218-181-25, 0218-181-26, 0218-191-19, 0218-191-24, 0218-241-43, 0218-241-45, 0218-402-32, 1049-101-01, 1049-101-02, 1049-101-04, 1049-101-05, 1049-101-06, 1049-101-07, 1049-101-08, 1049-101-09, 1049-101-10, 1049-101-11, 1049-101-12, 1049-101-13, 1049-101-14, 1049-101-15, 1049-101-16, 1049-101-17, 1049-101-18, 1049-101-29, 1049-101-30, 1049-101-31, 1049-101-32, 1049-101-33, 1049-101-34, 1049-101-35, 1049-101-36, 1049-101-37, 1049-101-38, 1049-101-39, 1049-131-40, 1049-131-01, 1049-131-02, 1049-131-03, 1049-131-04, 1049-131-05, 1049-131-06, 1049-131-08, 1049-131-09, 1049-131-18, 1049-131-19, 1049-161-24, 1049-161-25, 1049-171-05, 1049-171-06, 1049-171-07, 1052-151-02, 1052-151-05, 1052-151-09, 1052-151-10, 1052-151-11, 1052-161-03, 1052-471-02, 1052-481-02, 1052-491-03, 1052-491-05, 1052-491-06, 1053-091-01, CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 12 ATTACHMENT: 20260616 File Nos. PGPA25-002 & PZC25-002 PPA^01 PC Back-up.pdf ATTACHMENT: 20260616 File Nos. PGPA25-002 and PZC25-002 PPA_02 SEIR RESO_RM ATTACHMENT: 20260616 File Nos. PGPA25-002 & PZC25-002 PPA 03 SEIR RESO Attachment A_SEIR.pdf
ATTACHMENT: 20260616 File Nos. PGPA25-002 & PZC25-002 PPA 04 SEIR RESO Attachment B_FSEIR.pdf
1053-101-01, 1053-101-02, 1053-111-01, 1053-111-03, 1053-111-04, 1053-111-08, 1053-151-04, 1053-151-05, 1053-161-02, 1053-171-01, 1053-171-03, 1053-171-04, 1053-171-05, 1053-171-06, 1053-181-01, 1053-181-02, 1053-191-01, 1053-191-02, 1053-201-01, 1053-301-01, 1053-301-02, 1053-311-01, 1053-311-02, 1053-321-02, 1053-321-03, 1053-331-04, 1053-341-01, 1053-341-02, 1053-351-02, 1053-391-01, 1053-411-01, 1053-421-01, 1053-421-02, 1053-511-01, 1053-511-02, 1053-511-03, 1053-511-05, 1053-511-06, 1053-511-07, 1053-521-01, 1053-521-02, 1053-531-01, 1053-531-02, 1053-531-04, 1053-541-01, 1053-541-02, 1053-551-01, 1053-571-01, 1053-571-02, 1053-581-03, 1053-581-04, 1053-591-01, 1053-591-02, 1053-601-01, 1053-601-02, 1053-601-03, AND 1053-601-04.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PZC25-002, A CITYWIDE ZONING MAP AMENDMENT TO IMPLEMENT THE ONTARIO PLAN 2050 POLICY PLAN AMENDMENT, AND MAKING FINDINGS IN SUPPORT THEREOF — APNS: 0110-072-25, 0110-081-06, 0110-081-07, 0113-282-15, 0216-174-16, 0216-174-17, 0216- 214-05, 0216-214-06, 0216-214-07, 0216-311-08, 0216-311-09, 0216-312-08, 0216-312-09, 0216-312-10, 0216-313-01, 0216-313-03, 0216-313-04, 0216-313-05, 0216-313-06, 0216-313-07, 0216-313-09, 0216-314-01, 0216-314-03, 0216-314-04, 0216-314-05, 0216-314-07, 0216-314-08, 0216-314-09, 0216-321-01, 0216-321-02, 0216-321-03, 0216-321-06, 0216-321-07, 0216-322-01, 0216-322-02, 0216-322-10, 0218-102-10, 0218-102-11, 0218-111-06, 0218-111-08, 0218-111-09, 0218-111-10, 0218-111-11, 0218-111-50, 0218-111-67, 0218-111-68, 0218-111-69, 0218-121-01, 0218-121-02, 0218-121-03, 0218-121-04, 0218-121-05, 0218-121-06, 0218-122-01, 0218-122-02, 0218-122-03, 0218-122-04, 0218-122-06, 0218-122-08, 0218-122-09, 0218-122-10, 0218-181-11, 0218-181-16, 1049-101-01, 1049-101-02, 1049-101-04, 1049-101-05, 1049-101-06, 1049-101-07, 1049-101-08, 1049-101-09, 1049-101-10, 1049-101-11, 1049-101-12, 1049-101-13, 1049-101-14, 1049-101-15, 1049-101-16, 1049-101-17, 1049-101-18, 1049-101-29, 1049-101-30, 1049-101-31, 1049-101-32, 1049-101-33, 1049-101-34, 1049-101-35, 1049-101-36, 1049-101-37, 1049-101-38, 1049-101-39, 1049-101-40, 1049-131-01, 1049-131-02, 1049-131-03, 1049-131-04, 1049-131-05, 1049-131-06, 1049-131-08, 1049-131-09, 1049-131-18, 1049-131-19, 1049-131-20, 1049-131-21, 1049-131-22, 1049-161-01, 1049-161-24, 1049-161-25, 1049-171-05, 1049-171-06, 1049-171-07, 1052-151-05, 1052-151-09, 1052-151-10, 1052-151-11, 1052-161-03, 1053-111-01, 1053-111-03, 1053-111-04, 1053-171-01, 1053-171-04, 1053-171-06, 1053-171-07, 1053-181-01, 1053-181-02, 1053-191-01, 1053-191-02, 1053-201-01, 1053-281-08, 1053-301-01, 1053-301-02, 1053-311-01, 1053-311-02, 1053-321-01, 1053-321-02, 1053-321-03, 1053-331-02, 1053-331-04, 1053-341-01, 1053-341-02, 1053-351-02, 1053-361-02, 1053-371-01, 1053-391-01, 1053-411-01, 1053-421-01, 1053-421-02, 1053-511-01, 1053-511-05, 1053-511-06, 1053-511-07, 1053-511-08, 1053-521-01, 1053-521-02, 1053-531-01, 1053-531-04, 1053-541-01, 1053-551-01, 1053-571-01, 1053-571-02, 1053-581-03, 1053-581-04, 1053-591-01, 1053-591-02, 1053-601-01, 1053-601-02, 1053-601-03, 1053-601-04.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 13 ATTACHMENT: 20260616 File Nos. PGPA25-002 & PZC25-002 PPA 05 SEIR RESO Attachment C_SOC.pdf
ATTACHMENT: 20260616 File Nos. PGPA25-002 & PZC25-002 PPA 06 SEIR RESO Attachment D_FOF.pdf
ATTACHMENT: 20260616 File Nos. PGPA25-002 & PZC25-002 PPA 07 SEIR RESO Attachment E_MMRP.pdf
ATTACHMENT: 20260616 File Nos. PGPA25-002 and PZC25-002 PPA 08 GPA RESO_RM.docx
ATTACHMENT: 20260616 File Nos. PGPA25-002 & PZC25-002 PPA 09 GPA PPA Attachment A.pdf
ATTACHMENT: 20260616 File Nos PGPA25-002 and PZC25-002 PPA 10_ZC_ORD_RM ATTACHMENT: 20260616 File Nos. PGPA25-002 & PZC25-002 PPA 11 ZC Attachment A.pdf

21. A PUBLIC HEARING TO CONSIDER THE APPROVAL OF THE EUCALYPTUS BUSINESS PARK SPECIFIC PLAN, FILE NO. PSP24-003
ATTACHMENT: 20260616 File No. PSP24-003 01 PC Back-up.pdf ATTACHMENT: 20260616 File No. PSP24-003 02_SP Ordinance_RM ATTACHMENT: 20260616 File No. PSP24-003 03 SP.pdf
ATTACHMENT: 20260616 File No. PSP24-003 04 COA.docx

22. A PUBLIC HEARING TO CONSIDER AN AMENDMENT TO THE MEREDITH INTERNATIONAL CENTRE SPECIFIC PLAN (FILE NO. PSPA25-005) TO ESTABLISH A MIXED-USE OVERLAY DISTRICT (PLANNING AREA 3A) ON 25.38 ACRES OF LAND
That the City Council introduce and waive further reading of an Ordinance approving the Eucalyptus Business Park Specific Plan (File No. PSP24-003), appended to the attached Ordinance as "Attachment A", pursuant to the facts and reasons contained in the staff report and subject to the conditions of approval appended to the attached Ordinance as "Attachment B".

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PSP24-003, THE EUCALYPTUS BUSINESS PARK SPECIFIC PLAN, TO ESTABLISH THE

LAND USE DISTRICTS, DEVELOPMENT STANDARDS, DESIGN GUIDELINES, AND INFRASTRUCTURE IMPROVEMENTS FOR THE POTENTIAL DEVELOPMENT OF 2,939,000 SQUARE FEET OF BUSINESS PARK DEVELOPMENT, 10,000 SQUARE FEET OF COMMERCIAL DEVELOPMENT AND APPROXIMATELY 37 ACRES OF OPEN SPACE/PARKLAND ON APPROXIMATELY 189 ACRES OF LAND, AND MAKING FINDINGS IN SUPPORT THEREOF—APNS:
1053-531-01, 1053-531-02, 1053-531-03, 1053-531-04, 1053-541-01, 1053-541-02, 1053-551-01, 1053-371-01, 1053-371-02, 1053-581-03, 1053-581-04, 0216-321-01, 0216-321-02, 0216-321-06, 0216-321-07, 0216-322-01, 0216-322-02 AND 0216-322-10.

That the City Council consider and adopt:

A. A Resolution approving an Addendum to the Meredith International Centre Specific Plan Environmental Impact Report (State Clearinghouse No. 2014051020).

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 14 ATTACHMENT: 20260616 File No. PSPA25-005 - CC 01 PC Backup.pdf ATTACHMENT: 20260616 File No. PSPA25-005 - CC 02 RESO Addendum_RM ATTACHMENT: 20260616 File No. PSPA25-005 - CC 03_Meredith SPA_Final Addendum.pdf
ATTACHMENT: 20260616 File No. PSPA25-005 - CC 04 RESO PSPA_RM ATTACHMENT: 20260616 File No. PSPA25-005 - CC 05_Attachment A_MICSP Redlines.pdf
ATTACHMENT: 20260616 File No. PSPA25-005 - CC 06_Attachment B_COA_PSPA.pdf

23. TECHNOLOGICAL DISRUPTION POLICY
ATTACHMENT: Policy re Disruption of Remote Access to Meetings B. A Resolution approving a Specific Plan Amendment (File No. PSPA25-005) for the Meredith International Centre Specific Plan, appended to the attached Resolution as “Attachment A”, pursuant to the facts and reasons contained in the staff report and subject to the conditions of approval appended to the attached Resolution as “Attachment B”.

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

ADDENDUM TO THE MEREDITH INTERNATIONAL CENTRE SPECIFIC PLAN AMENDMENT ENVIRONMENTAL IMPACT REPORT (SCH # 2014051020), PURSUANT TO THE REQUIREMENTS OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, AS AMENDED, FOR FILE NO PSPA25-005 —APNS: 0110-321-74, 0110-321-75, 0110-321-76, 0110-321-29, AND 0110-321-77.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PSPA25-005, AN AMENDMENT TO THE MEREDITH INTERNATIONAL CENTRE SPECIFIC PLAN TO ESTABLISH A MIXED-USE OVERLAY DISTRICT (PLANNING AREA 3A) ON 25.38 ACRES OF LAND WITHIN THE PLANNING AREA 3 (URBAN COMMERCIAL) LAND USE DISTRICT, LOCATED AT

THE SOUTHWEST CORNER OF ARCHIBALD AVENUE AND INLAND EMPIRE BOULEVARD, AND MAKING FINDINGS IN SUPPORT THEREOF APNS: 0110-321-74, 0110-321-75, 0110-321-76, 0110-321-29, AND 0110-321-77.

ADMINISTRATIVE REPORTS/DISCUSSION/ACTION
That the City Council adopt a policy addressing technological disruption at Council meetings, in compliance with Senate Bill 707.

STAFF MATTERS
City Manager Ochoa

COUNCIL MATTERS
Mayor Leon
Mayor pro Tem Wapner
Council Member Bowman
CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 15 Council Member Porada
Council Member Macias

ADJOURNMENT
CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 16 1 of 1

CITY OF ONTARIO

CLOSED SESSION REPORT
City Council // Housing Authority // Other // (GC 54957.1) June 16, 2026
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(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
No Reportable Action Continue Approved
/ / / / / /
Disposition: _________________________________________________________________ Reported by:
___________________________________________
City Attorney / City Manager / Executive Director
17 ONTARIO CITY COUNCIL/

ONTARIO HOUSING AUTHORITY

MINUTES
MAY 19, 2026
(Not Official Until Approved)
(not official until approved)

JOINT MEETINGS
The Regular Joint Meetings of the Ontario City Council and the Ontario Housing Authority scheduled for May 19, 2026, were cancelled due to lack of quorum.

Respectfully submitted,
___________________________________________________
CLAUDIA Y. ISBELL, MMC,

ASSISTANT CITY CLERK/SECRETARY
APPROVED:
___________________________________________________
PAUL S. LEON, MAYOR/CHAIRMAN
18 Department: Financial Services
Prepared By: Pablo De Lara
Staff Member Presenting: Armen Harkalyan,
Executive Director of Finance
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 3
SUBJECT: AN ORDINANCE APPROVING A DEVELOPMENT AGREEMENT (FILE NO. PDA25- 004) BETWEEN THE CITY OF ONTARIO, SLV LC CENTER LLC, HCW LC CENTER LLC,

STRACK FARMS LAND LLC, RHV EDISON AVE LLC, MV EDISON AVE LLC, AND EPC HOLDINGS 938 LLC

CITY OF ONTARIO
Agenda Report
June 16, 2026
SECTION:

CONSENT CALENDAR
RECOMMENDATION: That the City Council adopt an Ordinance Approving a Development Agreement (File No. PDA25-004) between the City of Ontario, SLV LC Center LLC, HCW LC Center LLC, Strack Farms Land LLC, RHV Edison Ave LLC, MV Edison Ave LLC, and EPC Holdings 938 LLC 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 Invest in the City's Infrastructure (Water, Streets, Sewers, Parks, Storm Drains and Public Facilities)
Ensure the Development of a Well Planned, Balanced, and Self-Sustaining Community in Ontario Ranch
FISCAL IMPACT: There is no direct fiscal impact associated with this action. The Development Agreement will provide funding from the formation of a Community Facilities District (CFD) for City services and facilities required to support this Ontario Ranch project. In addition, the City will receive development impact, compliance processing, licensing, and permitting fees.

BACKGROUND & ANALYSIS: The Ontario Ranch financial commitments required for construction of properties within a Specific Plan are substantial. Therefore, to adequately forecast these costs and gain assurance that the project may proceed under the existing policies, rules, and regulations, SLV LC Center LLC, HCW LC Center LLC, Strack Farms Land LLC, RHV Edison Ave LLC, MV Edison Ave LLC, and EPC Holdings 938 LLC (collectively the "Applicant" or "Owner"), has requested that the City enter into negotiations to create a Development Agreement (Agreement).

The Agreement proposes to include 15.91 acres of land within Planning Area 10A of the Rich-Haven 19 Specific Plan, as shown on the attached Exhibit A. The Agreement grants the Applicant a vested right to develop Tentative Tract Map 20779 (the “Map”), provided that the Owner complies with the terms and conditions of the Specific Plan and related Environmental Impact Report (EIR).

The Map (see attached Exhibit B) located on the northwest corner of Hamner Avenue and Ladybug Paseo and proposes to subdivide 15.91 acres of land into 99 numbered lots and 16 lettered lots to facilitate the construction of 86 single-family dwelling units and 139 multiple-family dwelling units for condominium purposes.

The term of the Agreement is for ten years, with a five-year option to renew. The main points of the Agreement address funding for all new City expenses created by the project, which includes Development Impact Fees (DIF) for construction of public improvements (i.e. streets and bridges, sewer, water, storm drain and fiber), and the creation of a Community Facilities District (CFD) for the services and maintenance of public facilities.

In considering the Agreement at their meeting on April 28, 2026, the Planning Commission found the Agreement to be consistent with State law, The Ontario Plan, and the City's Development Agreement policies. As a result, the Planning Commission approved and adopted Resolution No.

PC26-019, recommending City Council approval of the Agreement.

On June 2, 2026, the City Council held a public hearing to introduce and waive further reading of an Ordinance approving the Development Agreement (File No. PDA25-004).

ENVIRONMENTAL REVIEW: The environmental impacts of this Project were previously reviewed in conjunction with the Rich-Haven Specific Plan Amendment (File No. PSPA22-001), for which an Environmental Impact Report (State Clearinghouse No. 2022100425) was adopted by the City Council on June 20, 2023. This Application introduces no new significant environmental impacts. All previously adopted mitigation measures are a condition of Project approval and are incorporated herein by this reference.
20 Exhibit A: RICH-HAVEN SPECIFIC PLAN LAND USE MAP
21 Exhibit B: TENTATIVE PARCEL MAP NO. 20779
22 ORDINANCE NO.___________

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, RECOMMENDING CITY COUNCIL APPROVE FILE NO.

PDA25-004, A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF

ONTARIO AND SLV LC CENTER LLC, HCW LC CENTER LLC, STRACK

FARMS LAND LLC, RHV EDISON AVE LLC, MV EDISON AVE LLC, AND EPC HOLDINGS 938, LLC TO ESTABLISH THE TERMS AND
CONDITIONS ASSOCIATED WITH TENTATIVE PARCEL MAP NO. 20779 (FILE NO. PMTT25-007), LOCATED ON THE NORTHWEST CORNER OF

HAMNER AVENUE AND LADYBUG PASEO WITHIN PLANNING AREA
10A OF THE RICH-HAVEN SPECIFIC PLAN. (APN: 0218-211-40).

WHEREAS, Risewell Homes ("Applicant") has filed an Application for the approval of a Development Agreement, File No. PDA25-004, as described in the title of this Resolution (hereinafter referred to as "Application" or "Project"); and WHEREAS, the Application applies to 15.91 acres of land, located on the northwest corner of Hamner Avenue and Ladybug Paseo within Planning Area 10A of the Rich-Haven Specific Plan; and
WHEREAS, the Applicant submitted Tentative Parcel Map No. 20779 (File No.

PMTT25-007), subdividing 15.91 acres of land to facilitate the construction of 86 singlefamily dwelling units and 139 multiple-family dwelling units and for condominium purposes; and
WHEREAS, the environmental impacts of this Project were previously reviewed in conjunction with the Rich-Haven Specific Plan Amendment (File No. PSPA22-001), for which an Environmental Impact Report (State Clearinghouse No. 2022100425) was adopted by the City Council on June 20, 2023. This Application introduces no new significant environmental impacts; and
WHEREAS, the City's "Local Guidelines for the Implementation of the California Environmental Quality Act (CEQA)" provide for the use of a single environmental assessment in situations where the impacts of subsequent projects are adequately analyzed; and
WHEREAS, Ontario Development Code Table 2.02-1 (Review Matrix) grants the City Council the responsibility and authority to review and make recommendations to the City Council on the subject Application; and
WHEREAS, the Project has been reviewed for consistency with the Housing Element of the Policy Plan component of The Ontario Plan, as State Housing Element law (as prescribed in Government Code Sections 65580 through 65589.8) requires that development projects must be consistent with the Housing Element, if upon consideration of all its aspects, it is found to further the purposes, principals, goals, and policies of the Housing Element; and
23 WHEREAS, the Project is located within the Airport Influence Area of Ontario International Airport, which encompasses lands within parts of San Bernardino, Riverside, and Los Angeles Counties, and is subject to, and must be consistent with, the policies and criteria set forth in the Ontario International Airport Land Use Compatibility Plan (hereinafter referred to as "ALUCP"), which applies only to jurisdictions within San Bernardino County, and addresses the noise, safety, airspace protection, and overflight impacts of current and future airport activity; and
WHEREAS, City of Ontario Development Code Division 2.03 (Public Hearings) prescribes the manner in which public notification shall be provided and hearing procedures to be followed, and all such notifications and procedures have been completed; and
WHEREAS, on April 28, 2026, the Planning Commission of the City of Ontario conducted a hearing to consider the Project, and concluded said hearing on that date; and
WHEREAS, on June 2, 2026, the City Council of the City of Ontario conducted a hearing to consider the Project, and concluded said hearing on that date; and WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.

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

SECTION 1: Environmental Determination and Findings. As the recommending body for the Project, the City Council has reviewed and considered the information contained in the previous Certified EIR and supporting documentation. Based upon the facts and information contained in the previous Certified EIR and supporting documentation, the City Council finds as follows:
(1) The environmental impacts of this Project were previously reviewed in conjunction with the Rich-Haven Specific Plan Amendment (File No. PSPA22-001), for which an Environmental Impact Report (State Clearinghouse No. 2022100425) was adopted by the City Council on June 20, 2023; and
(2) The previous Certified EIR contains a complete and accurate reporting of the environmental impacts associated with the Project; and
(3) The previous Certified EIR was completed in compliance with CEQA and the Guidelines promulgated thereunder; and
(4) The previous Certified EIR reflects the independent judgment of the City Council; and (5) The proposed Project will introduce no new significant environmental impacts beyond those previously analyzed in the previous Certified EIR, and all mitigation measures previously adopted with the Certified EIR, are incorporated herein by this reference.
24 SECTION 2: Subsequent or Supplemental Environmental Review Not Required. Based on the information presented to the City Council, and the specific findings set forth in Section 1, above, the City Council finds that the preparation of a subsequent or supplemental Certified EIR is not required for the Project, as the Project:
(1) Does not constitute substantial changes to the Certified EIR that will require major revisions to the Certified EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; and
(2) Does not constitute substantial changes with respect to the circumstances under which the Certified EIR was prepared, that will require major revisions to the Certified EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of the previously identified significant effects; and (3) Does not contain new information of substantial importance that was not known and could not have been known with the exercise of reasonable diligence at the time the Certified EIR was certified/adopted, that shows any of the following:
(a) The project will have one or more significant effects not discussed in the Certified EIR; or
(b) Significant effects previously examined will be substantially more severe than shown in the Certified EIR; or
(c) Mitigation measures or alternatives previously found not to be feasible would in fact be feasible and would substantially reduce one or more significant effects of the Project, but the City declined to adopt such measures; or (d) Mitigation measures or alternatives considerably different from those analyzed in the Certified EIR would substantially reduce one or more significant effects on the environment, but which the City declined to adopt.

SECTION 3: Housing Element Compliance. Pursuant to the requirements of California Government Code Chapter 3, Article 10.6, commencing with Section 65580, as the recommending body for the Project, the City Council finds that based on the facts and information contained in the Application and supporting documentation, at the time of Project implementation, the project is consistent with the Housing Element of the Policy Plan (General Plan) component of The Ontario Plan. The project site is not one of the properties in the Housing Element Sites contained in Tables B-1 and B-2 (Housing Element Sites Inventory) of the Housing Element Technical Report.

SECTION 4: Airport Land Use Compatibility Plan ("ALUCP") Compliance.

The California State Aeronautics Act (Public Utilities Code Section 21670 et seq.) requires that an Airport Land Use Compatibility Plan be prepared for all public use airports in the State; and requires that local land use plans and individual development proposals must be consistent with the policies set forth in the adopted Airport Land Use Compatibility Plan.
25 (1) On April 19, 2011, the City Council of the City of Ontario approved and adopted the Ontario International Airport Land use Compatibility Plan, establishing the Airport Influence Area for Ontario International Airport, which encompasses lands within parts of San Bernardino, Riverside, and Los Angeles Counties, and limits future land uses and development within the Airport Influence Area, as they relate to noise, safety, airspace protection, and overflight impacts of current and future airport activity. As the recommending body for the Project, the City Council has reviewed and considered the facts and information contained in the Application and supporting documentation against the ONT ALUCP compatibility factors, including [1] Safety Criteria (ONT ALUCP Table 2- 2) and Safety Zones (ONT ALUCP Map 2-2), [2] Noise Criteria (ONT ALUCP Table 2-3) and Noise Impact Zones (ONT ALUCP Map 2-3), [3] Airspace protection Zones (ONT ALUCP Map 2-4), and [4] Overflight Notification Zones (ONT ALUCP Map 2-5). As a result, the CITY COUNCIL, therefore, finds and determines that the Project is consistent with the policies and criteria set forth within the ONT ALUCP; and SECTION 5: Concluding Facts and Reasons. Based upon the substantial evidence presented to the City Council during the above-referenced hearing, and upon the specific findings set forth in Section 1 through 4, above, the City Council hereby concludes as follows:
(1) The Development Agreement applies to approximately 15.91 acres of land located on the northwest corner of Hamner Avenue and Ladybug Paseo within Planning Area 10A of the Rich-Haven Specific Plan; and
(2) The Development Agreement establishes parameters for the development of land within the Rich-Haven Specific Plan. The Development Agreement also grants the Applicant, the right to develop, the ability to quantify the fees; and establish the terms and conditions that apply to those projects. These terms and conditions are consistent with The Ontario Plan Policy Plan (General Plan), design guidelines and development standards for the Rich-Haven Specific Plan; and
(3) The Development Agreement grants the Applicant a vested right to develop Tentative Pacel Map 20779 (File No. PMTT25-007) as long as the Applicant complies with the terms and conditions of the Rich-Haven Specific Plan and EIR. Tentative Tract Map 20779 located on the northwest corner of Hamner Avenue and Ladybug Paseo proposes to subdivide 15.91 acres of land into 99 numbered lots and 16 lettered lots to facilitate the construction of 86 single-family dwelling units and 139 multiple-family dwelling units for condominium purposes; and
(4) The Development Agreement has been prepared in conformance with the goals and policies of The Ontario Plan Policy Plan (General Plan); and (5) The Development Agreement does not conflict with the Land Use Policies of The Ontario Plan Policy Plan (General Plan) and will provide for development, within the district, in a manner consistent with the Policy Plan and with related development; and
26 (6) This Development Agreement will promote the goals and objectives of the Land Use Element of the Policy Plan; and
(7) This Development Agreement will not be materially injurious or detrimental to the adjacent properties and will not have a significant impact on the environment or the surrounding properties for which an Addendum to Environmental Impact Report (State Clearinghouse No. 2022100425) was adopted by the City Council on June 20, 2023; and (8) This Application introduces no new significant environmental impacts. All previously adopted mitigation measures are a condition of project approval and are incorporated herein by this reference.

SECTION 6. Based upon the findings and conclusions set forth in Sections 1 through 5, above, the City Council hereby APPROVES the Development Agreement (File No. PDA24-004), attached hereto as "Attachment A," and incorporated herein by this reference.

SECTION 7. The City Council acknowledges that refinement and further development of the Ontario Ranch development area may demonstrate that changes are appropriate with respect to the details and performance of the parties under the Development Agreement. The City Council desires to retain a certain degree of flexibility with respect to the details of the Ontario Ranch developments, and with respect to those items covered in general terms under the Development Agreement. If and when the City Manager (or designee) and the Developer mutually find that changes, adjustments, or clarifications are appropriate to further the intended purposes of the Development Agreement, and such are not materially inconsistent with the Development Agreement, they may, unless otherwise required by law, effectuate such changes, adjustments, or clarifications by written amendment to this Agreement, or through one or more memoranda which are mutually approved by the City Manager on behalf of the City and by the Developer, and, after execution, shall be attached to the Development Agreement and become a part thereof. Unless otherwise required by law, no such changes, adjustments, or clarifications shall require prior notice or hearing before the City Council. The City Manager, with the approval of the City Attorney, shall have the authority but not the obligation to execute amendments, memoranda or other documents, and may take any action necessary to implement the Development Agreement.

SECTION 8. The Applicant shall agree to defend, indemnify and hold harmless, the City of Ontario or its agents, officers, and employees from any claim, action or proceeding against the City of Ontario or its agents, officers or employees to attack, set aside, void, or annul this approval. The City of Ontario shall promptly notify the applicant of any such claim, action, or proceeding, and the City of Ontario shall cooperate fully in the defense.

SECTION 9. The documents and materials that constitute the record of proceedings on which these findings have been based are located at the City of Ontario City Hall, 303 East "B" Street, Ontario, California 91764. The custodian for these records is the City Clerk of the City of Ontario.
27 SECTION 10. If any section, sentence, clause or phrase of this Ordinance or the application thereof to any entity, person or circumstance is held for any reason to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable.

The People of the City of Ontario hereby declare that they would have adopted this Ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

SECTION 11. This Ordinance shall become effective 30 days following its adoption.

SECTION 12. 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 15 days following 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 16th day of June 2026. _____________________________________
PAUL S. LEON, MAYOR
ATTEST:
_________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
_______________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY
28 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. 3334 was duly introduced at a regular meeting of the City Council of the City of Ontario held June 2, 2026 and adopted at the regular meeting held June 16, 2026 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. 3334 duly passed and adopted by the Ontario City Council at their regular meeting held June 16, 2026 and that Summaries of the Ordinance were published on June 9, 2026 and June 23, 2026, in the Inland Valley Daily Bulletin newspaper.
__________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
29 ATTACHMENT A:

FILE NO. PDA25-004

DEVELOPMENT AGREEMENT
By and Between
City of Ontario
a California municipal corporation
and
SLV LC Center LLC
a Florida limited liability company
and
HCW LC Center LLC
a Florida limited liability company
and
Strack Farms Land LLC
a Delaware limited liability company
and
RHV Edison Ave LLC
a Florida limited liability company
and
MV Edison Ave LLC
a Florida limited liability company
and
EPC Holdings 938 LLC
a Washington limited liability company
(Development Agreement to follow this page)
30 1

RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:

CITY OF ONTARIO

CITY CLERK / RECORDS MANAGEMENT
303 EAST “B” STREET
ONTARIO, CA 91764-4196
Exempt from Fees Per Gov. Code § 6103
______________________________________________________________________ Space above this line for Recorder’s Use Only
FILE NO. PDA25-004

DEVELOPMENT AGREEMENT PDA25-004
This Development Agreement (hereinafter “Agreement”) is entered into effective as of the ____ day of ____________, 2026 by and among the City of Ontario, a California municipal corporation (hereinafter “CITY”), and SLV LC Center LLC, HCW LC Center LLC, Strack Farms Land LLC, RHV Edison Ave LLC, MV Edison Ave LLC, and EPC Holdings 938 LLC (hereinafter “OWNER”):

RECITALS
WHEREAS, CITY is authorized to enter into binding development agreements with persons having legal or equitable interests in real property for the development of such property, pursuant to Section 65864, et seq. of the Government Code; and WHEREAS, OWNER has requested CITY to enter into a development agreement and proceedings have been taken in accordance with the rules and regulations of CITY; and
WHEREAS, by electing to enter into this Agreement, CITY shall bind future City Councils of CITY by the obligations specified herein and limit the future exercise of certain governmental and proprietary powers of CITY; and WHEREAS, the terms and conditions of this Agreement have undergone extensive review by CITY and the City Council and have been found to be fair, just and reasonable; and
WHEREAS, the best interests of the citizens of the CITY and the public health, safety and welfare will be served by entering into this Agreement; and WHEREAS, all of the procedures of the California Environmental Quality Act have been met with respect to the Project and the Agreement in that the Rich Haven Specific Plan (State Clearinghouse No. 2022100425 (the “FEIR”). The City Council found and determined that the FEIR was prepared in accordance with the requirements of the California Environmental Quality Act and adequately describes the impacts of the project described in the FEIR, which included consideration of this Agreement; and WHEREAS, this Agreement and the Project are consistent with the CITY’s Comprehensive General Plan and the Rich Haven Specific Plan; and WHEREAS, all actions taken and approvals given by CITY have been duly taken or approved in accordance with all applicable legal requirements for notice, public hearings, findings, votes, and other procedural matters; and WHEREAS, development of the Property in accordance with this Agreement will provide substantial benefits to CITY and will further important policies and goals of CITY; and
32 -3-

WHEREAS, this Agreement will eliminate uncertainty in planning and provide for the orderly development of the Property, ensure progressive installation of necessary improvements, provide for public services appropriate to the development of the Project, and generally serve the purposes for which development agreements under Sections 65864 et seq. of the Government Code are intended; and
WHEREAS, OWNER has incurred and will in the future incur substantial costs in excess of the generally applicable requirements in order to assure vesting of legal rights to develop the Property in accordance with this Agreement; and WHEREAS, the Property is located in an area of the City of Ontario that has been known as the “New Model Colony” area and the New Model Colony area has now been renamed as “Ontario Ranch.” and
WHEREAS, the property developer/owners are made aware of the South Archibald Trichloroethylene (TCE) Plume Disclosure Letter (Exhibit “G”). Property owner may wish to provide the attached Letter as part of the Real Estate Transfer Disclosure requirements under California Civil Code Section 1102 et seq. This may include notifications in the Covenants, Conditions and Restrictions (CC&Rs) or other documents related to property transfer and disclosures. Additional information on the plume is available from the Santa Ana Regional Water Quality Control Board at http://geotracker.waterboards.ca.gov/profile_report.asp?global_id=T10000004658.

COVENANTS
NOW, THEREFORE, in consideration of the above recitals and of the mutual covenants hereinafter contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1. DEFINITIONS AND EXHIBITS.

1.1 Definitions. The following terms when used in this Agreement shall be defined as follows:

1.1.1 “Agreement” means this Development Agreement.

1.1.2 “CITY” means the City of Ontario, California, a California municipal corporation.

1.1.3 “Construction Agreement” means that certain Agreement for the Financing and Construction of Phases I and II Infrastructure Improvements to Serve an Easterly Portion of the New Model Colony, entered into between the CITY and NMC Builders as of the 4th day of October, 2005, and all amendments thereto and “Construction Agreement Amendment” means that First Amended and Restated Agreement for the Financing and Construction of Limited Infrastructure Improvements to Serve and Easterly Portion of the New Model Colony entered into between the CITY and NMC Builders as of the 21st day of August 2012.
33 -4-

1.1.4 “Development” means the improvement of the Property for the purposes of completing the structures, improvements and facilities comprising the Project including, but not limited to: grading; the construction of public infrastructure and public facilities related to the Project whether located within or outside the Property; the construction of buildings and structures; and the installation of landscaping. “Development” does not include the maintenance, repair, reconstruction or redevelopment of any building, structure, improvement or facility after the construction and completion thereof.

1.1.5 “Development Approvals” means all permits and other entitlements for use subject to approval or issuance by CITY in connection with development of the Property including, but not limited to:
(a) specific plans and specific plan amendments;
(b) tentative and final subdivision and parcel maps;
(c) development plan review;
(d) conditional use permits (including model home use permits), public use permits and plot plans;
(e) zoning;
(f) grading and building permits.

1.1.6 “Development Exaction” means any requirement of CITY in connection with or pursuant to any Land Use Regulation or Development Approval for the dedication of land, the construction of improvements or public facilities, or the payment of fees in order to lessen, offset, mitigate or compensate for the impacts of development on the environment or other public interests.

1.1.7 “Development Impact Fee” means a monetary exaction, other than a tax or special assessment, whether characterized as a fee or a tax and whether established for a broad class of projects by legislation of general applicability or imposed on a specific project on an ad hoc basis, that is charged by a local agency to the applicant in connection with approval of a development project for the purpose of defraying all or a portion of the cost of public facilities related to the development project, and, for purposes of this Agreement only, includes fees collected under development agreements adopted pursuant to Article 2.5 of the Government Code (commencing with Section 65864) of Chapter 4, For purposes of this Agreement only, "Development Impact Fee" shall not include processing fees and charges imposed by CITY to cover the estimated actual costs to CITY of processing applications for Development Approvals or for monitoring compliance with any Development Approvals granted or issued, including, without limitation, fees for zoning variances; zoning changes; use permits; building inspections; building permits; filing and processing applications and petitions filed with the local agency formation commission or conducting preliminary proceedings or proceedings under the Cortese-Knox-Hertzberg Local Government 34 -5-

Reorganization Act of 2000, Division 3 (commencing with Section 56000) of Title 5 of the Government Code; the processing of maps under the provisions of the Subdivision Map Act, Division 2 (commencing with Section 66410) of Title 7 of the Government Code; or planning services under the authority of Chapter 3 (commencing with Section 65100) of Division 1 of Title 7 of the Government Code, fees and charges as described in Sections 51287, 56383, 57004, 65104, 65456, 65863.7, 65909.5, 66013, 66014, and 66451.2 of the Government Code, Sections 17951, 19132.3, and 19852 of the Health and Safety Code, Section 41901 of the Public Resources Code, and Section 21671.5 of the Public Utilities Code, as such codes may be amended or superceded, including by amendment or replacement.

1.1.8 “Development Plan” means the Existing Development Approvals and the Existing Land Use Regulations applicable to development of the Property.

1.1.9 “Effective Date” means the date that the ordinance approving this Agreement goes into effect.

1.1.10 “Existing Development Approvals” means all Development Approvals approved or issued prior to the Effective Date. Existing Development Approvals includes the Approvals incorporated herein as Exhibit “C” and all other Approvals which are a matter of public record on the Effective Date.

1.1.11 “Existing Land Use Regulations” means all Land Use Regulations in effect on the Effective Date. Existing Land Use Regulations includes the Regulations incorporated herein as Exhibit “D” and all other Land Use Regulations that are in effect and a matter of public record on the Effective Date.

1.1.12 “General Plan” means the General Plan adopted on August 16, 2022.

1.1.13 “Improvement” or “Improvements” means those public improvements required to support the development of the Project as described in the Tract Map conditions for Tract No. 20779 as further described in Exhibit “F” (the “Infrastructure Improvements Exhibit”).

1.1.14 “Land Use Regulations” means all ordinances, resolutions, codes, rules, regulations and official policies of CITY governing the development and use of land, including, without limitation, the permitted use of land, the density or intensity of use, subdivision requirements, timing and phasing of development, the maximum height and size of buildings, the provisions for reservation or dedication of land for public purposes, and the design, improvement and construction standards and specifications applicable to the development of the Property. “Land Use Regulations” does not include any CITY ordinance, resolution, code, rule, regulation or official policy, governing:
(a) the conduct of businesses, professions, and occupations; (b) taxes and assessments;
(c) the control and abatement of nuisances;
35 -6-

(d) the granting of encroachment permits and the conveyance of similar rights and interests that provide for the use of or the entry upon public property; (e) the exercise of the power of eminent domain.

1.1.15 “Mortgagee” means a mortgagee of a mortgage, a beneficiary under a deed of trust or any other security-device lender, and their successors and assigns.

1.1.16 “Model Units” means a maximum of 22 (XX) model units, private common recreation facilities and sales facilities constructed by OWNER prior to the construction of any Production units and not offered for sale and occupancy for a period of time after the issuance of permits for Production Units.

1.1.17 “Net MDD” means net maximum daily water demand.

1.1.18 “NMC Builders” means the consortium of investors and developers responsible for the construction of infrastructure within the New Model Colony incorporated as NMC Builders, LLC.

1.1.19 “OWNER” means the persons and entities listed as owner on page 1 of this Agreement and their permitted successors in interest to all or any part of the Property.

1.1.20 “Phase 2 Water EDUs” means the number of equivalent dwelling units or non-residential square footage assigned to OWERN upon payment to CITY of the Phase 2 Water Participation Fee for the Project and evidenced by the issuance by CITY of a Certificate of Phase 2 Net MDD Availability in the form attached as Exhibit “G”.

1.1.21 “Phase 2 Water Improvements” means the future water infrastructure Improvements required for the issuance by CITY of the “Water Availability Equivalents” (WAE) for the Project.

1.1.21 “Phase 2 Water Participation Fee” means the fee paid to City upon City approval of the first Development Entitlement for the Project, to fund the Property’s respective share of the projected costs of the design and construction of the Phase 2 Water Improvements by City. The Phase 2 Water Participation Fee shall be the calculated amount of the Regional Water DIF for the Project based upon the number of units, and land use category for residential units or the number of square feet, and land use category for non-residential square footage of the Project.

1.1.22 “Production Unit(s)” means all units constructed for sale and occupancy by OWNER and excludes the specified number of Model Units constructed by OWNER for promotion of sales.

1.1.23 “Project” means the development of the Property contemplated by the Development Plan, as such Plan may be further defined, enhanced or modified pursuant to the provisions of this Agreement.
36 -7-

1.1.24 “Property” means the real property described on Exhibit “A” and shown on Exhibit “B” to this Agreement.

1.1.25 “Reservations of Authority” means the rights and authority excepted from the assurances and rights provided to OWNER under this Agreement and reserved to CITY under Section 3.6 of this Agreement.

1.1.26 “Specific Plan” means that certain specific plan adopted by the City Council, and entitled, “Rich Haven Specific Plan.”

1.1.27 "Storm Water Treatment Capacity Availability” means a designated portion of the total Storm Water Treatment Capacity Availability made available through the completion of construction of a Phase of regional storm water treatment facilities by the NMC Builders LLC as described in the Construction Agreement Amendment. The amount, in acres, of Storm Water Treatment Capacity Availability required for the issuance of a grading permit shall be based upon the factors and assumptions listed in the Construction Agreement Amendment.

1.1.28 “Subsequent Development Approvals” means all Development Approvals required subsequent to the Effective Date in connection with development of the Property.

1.1.29 “Subsequent Land Use Regulations” means any Land Use Regulations adopted and effective after the Effective Date of this Agreement.

1.1.30 “Water Availability Equivalent (WAE)” means a designated portion of the total Net MDD made available through the construction of each Phase described in the Water Phasing Plan of the Construction Agreement. The number of Water Availability Equivalents (of portions thereof) required for the issuance of each building permit shall be based upon water demand factors and assumptions listed in the Construction Agreement and Construction Agreement Amendment as “Water Availability Equivalents by Land Use” for each land use category.

1.1.31 “Amendment to the Construction Agreement” means the amendment to the Construction Agreement modifying the boundaries of the property in Exhibit A of such Construction Agreement to include the Property covered by this Agreement and to provide for the additional funds required for CITY’s future construction of the “Phase 2 Water Improvements” described in a modification to Exhibit C-3 of the Construction Agreement.

1.2 Exhibits. The following documents are attached to, and by this reference made a part of, this Agreement:

Exhibit “A” — Legal Description of the Property.

Exhibit “B” — Map showing Property and its location.

Exhibit “C” — Existing Development Approvals.
37 -8-

Exhibit “D” — Existing Land Use Regulations.

Exhibit “E” — Description of Required Infrastructure Improvements Exhibit “F” — Depiction of Required Infrastructure Improvements Exhibit “G” - Form of Certificate of Net MDD to be issued by CITY Exhibit “H” – Form of Certificate of DIF Credit to be issued by CITY Exhibit “I-1” – Ontario Ranch Water Supply Phasing Plan Exhibit “I-2” - Water Demand Equivalents by Land Use
Exhibit “J” - Form of Plume Disclosure Letter

2. GENERAL PROVISIONS.

2.1 Binding Effect of Agreement. The Property is hereby made subject to this Agreement. Development of the Property is hereby authorized and shall be carried out only in accordance with the terms of this Agreement.

2.2 Ownership of Property. OWNER represents and covenants that it is the owner of the fee simple title to the Property or a portion thereof, or has the right to acquire fee simple title to the Property or a portion thereof from the current owner(s) thereof. To the extent OWNER does not own fee simple title to the Property, OWNER shall obtain written consent from the current fee owner of the Property agreeing to the terms of this Agreement and the recordation thereof.

2.3 Term. The term of this Agreement shall commence on the Effective Date and shall continue for an initial term of ten (10) years thereafter unless this term is modified or extended pursuant to the provisions of this Agreement. The term of this Agreement may be extended for an additional five (5) years following expiration of the initial ten (10) year term, provided the following have occurred:
(a) OWNER provides at least 180 days written notice to CITY prior to expiration of the initial term; and
(b) In non-mixed use and residential use only projects, the OWNER shall have obtained, as applicable, building permits for at least seventy percent (70%) of the actual number of residential units permitted under this Agreement; and (c) OWNER is not then in uncured default of this Agreement.

2.4 Assignment.

2.4.1 Right to Assign. OWNER shall have the right to sell, transfer or assign the Property in whole or in part (provided that no such partial transfer shall violate the Subdivision Map Act, Government Code Section 66410, et seq.), to any 38 -9-

person, partnership, limited liability company, joint venture, firm or corporation at any time during the term of this Agreement; provided, however, that any such sale, transfer or assignment shall include the assignment and assumption of the rights, duties and obligations arising under or from this Agreement and be made in strict compliance with the following:
(a) No sale, transfer or assignment of any right or interest under this Agreement shall be made unless made together with the sale, transfer or assignment of all or a part of the Property. OWNER may be required to provide disclosure that the Property is within the South Archibald Trichloroethylene (TCE) Plume. OWNER may wish to provide the attached Disclosure Letter (Exhibit G) as part of the Real Estate Transfer Disclosure requirements under California Civil Code Section 1102 et seq.(b) (b) Concurrent with any such sale, transfer or assignment, or within fifteen (15) business days thereafter, OWNER shall notify CITY’s City Manager, in writing, of such sale, transfer or assignment and shall provide CITY with: (1) an executed agreement, in a form reasonably acceptable to CITY, by the purchaser, transferee or assignee and providing therein that the purchaser, transferee or assignee expressly and unconditionally assumes all the duties and obligations of OWNER under this Agreement with respect to the portion of the Property so sold, transferred or assigned; and (2) the payment of the applicable processing charge to cover the CITY’s review and consideration of such sale, transfer or assignment. (c) Any sale, transfer or assignment not made in strict compliance with the foregoing conditions shall constitute a default by OWNER under this Agreement.

Notwithstanding the failure of any purchaser, transferee or assignee to execute the agreement required by Paragraph (b) of this Subsection 2.4.1, the burdens of this Agreement shall be binding upon such purchaser, transferee or assignee, but the benefits of this Agreement shall not inure to such purchaser, transferee or assignee until and unless such agreement is executed. The City Manager shall have the authority to review, consider and either approve, conditionally approve, or deny any proposed sale, transfer or assignment that is not made in compliance with this section 2.4.

2.4.2 Release of Transferring Owner. Notwithstanding any sale, transfer or assignment, a transferring OWNER shall continue to be obligated under this Agreement unless such transferring owner is given a release in writing by CITY, which release shall be provided by CITY upon the full satisfaction by such transferring owner of the following conditions:
(a) OWNER no longer has a legal or equitable interest in all or any part of the portion of the Property sold, transferred or assigned.
(b) OWNER is not then in default under this Agreement.
(c) OWNER has provided CITY with the notice and executed agreement required under Paragraph (b) of Subsection 2.4.1 above. 39 -10-

(d) The purchaser, transferee or assignee provides CITY with security equivalent to any security previously provided by OWNER to secure performance of its obligations hereunder.

2.4.3 Effect of Assignment and Release of Obligations. In the event of a sale, transfer or assignment pursuant to the provisions of Section 2.4.2 above:
(a) The assignee shall be liable for the performance of all obligations of OWNER with respect to transferred property, but shall have no obligations with respect to the portions of the Property, if any, not transferred (the “Retained Property”). (b) The owner of the Retained Property shall be liable for the performance of all obligations of OWNER with respect to Retained Property, but shall have no further obligations with respect to the transferred property.
(c) The assignee’s exercise, use and enjoyment of the Property or portion thereof shall be subject to the terms of this Agreement to the same extent as if the assignee were the OWNER.

2.4.4 Subsequent Assignment. Any subsequent sale, transfer or assignment after an initial sale, transfer or assignment shall be made only in accordance with and subject to the terms and conditions of this Section 2.4.

2.4.5 Termination of Agreement with Respect to Individual Lots Upon Sale to Public and Completion of Construction. The provisions of Subsection 2.4.1 shall not apply to the sale or lease (for a period longer than one year) of any lot which has been finally subdivided and is individually (and not in “bulk”) sold or leased to a member of the public or other ultimate user. Notwithstanding any other provisions of this Agreement, this Agreement shall terminate with respect to any lot and such lot shall be released and no longer be subject to this Agreement without the execution or recordation of any further document upon satisfaction of both of the following conditions:
(a) The lot has been finally subdivided and individually (and not in “bulk”) sold or leased (for a period longer than one year) to a member of the public or other ultimate user; and,
(b) A certificate of occupancy has been issued for a building on the lot, and the fees set forth under Section 4 of this Agreement have been paid.

2.4.6 Partial Assignment and Assumption. CITY and OWNER agree OWNER may partially assign its obligations and rights under this Agreement, and all amendments hereto, to a purchaser, transferee or assignee of a lot, which has been subdivided subject to provisions of a partial assignment and assumption agreement in a form approved by CITY. Any such complete and executed partial assignment and assumption of this Agreement shall be submitted to CITY for approval pursuant to Section 2.4.1 of this Agreement. CITY shall review, and if the above conditions, including but not limited to, those conditions in Section 2.4.2, are satisfied, CITY may approve the partial assignment and release and notify the purchaser, transferee or 40 -11-

assignee in writing thereof. No such release approved pursuant to this Subsection 2.4.6 shall cause, or otherwise affect, a release of OWNER from the duties and obligations under this Agreement that are retained by OWNER and excluded from the transfer or assignment.

2.5 Amendment or Cancellation of Agreement. This Agreement may be amended or cancelled in whole or in part only in the manner provided for in Government Code Section 65868.1. Any amendment of this Agreement, which amendment has been requested by OWNER, shall be considered by the CITY only upon the payment of the applicable processing charge. This provision shall not limit any remedy of CITY or OWNER as provided by this Agreement. Either Party or successor in interest, may propose an amendment to or cancellation, in whole or in part, of this Agreement. Any amendment or cancellation shall be by mutual consent of the parties or their successors in interest except as provided otherwise in this Agreement or in Government Code Section 65865.1. For purposes of this section, the term “successor in interest” shall mean any person having a legal or equitable interest in the whole of the Property, or any portion thereof as to which such person wishes to amend or cancel this Agreement.

The procedure for proposing and adopting an amendment to, or cancellation of, in whole or in part, this Agreement shall be the same as the procedure for adopting and entering into this Agreement in the first instance. Notwithstanding the foregoing sentence, if the CITY initiates the proposed amendment to, or cancellation of, in whole or in part, this Agreement, CITY shall first give notice to the OWNER of its intention to initiate such proceedings at least sixty (60) days in advance of the giving the public notice of intention to consider the amendment or cancellation.

2.5.1 Amendment to Reflect Consistency With Future Amendments to the Construction Agreement. To the extent any future amendment to the Construction Agreement provides for modifications to rights or obligations that differ from or alter the same or similar rights or obligations contained in this Development Agreement, OWNER reserves the right to request an amendment to the Development Agreement to reflect any or all of such modifications.

2.5.2 Minor Modification. Upon the written application of OWNER, minor modifications and changes to the Development Plan including modifications to building design or footprint (not affecting minimum setbacks), parking layout and design, and landscape area design may be approved by the Director of the Planning Department without the need to amend this Development Agreement. Other changes in the Development Plan shall be processed pursuant to the City Zoning Ordinance. It is also contemplated by CITY and OWNER that OWNER may, from time to time, seek amendments to one or more of the Development Approvals. Any such amendments are contemplated by CITY and OWNER as being within the scope of this Agreement as long as they are consistent with the Land Use Regulations and shall, upon approval by CITY, continue to constitute the Development Approvals as referenced herein. The parties agree that any such modifications or amendments shall not constitute an amendment to this Agreement nor require an amendment to this Agreement. 41 -12-

2.6 Termination. This Agreement shall be deemed terminated and of no further effect upon the occurrence of any of the following events:
(a) Expiration of the stated term of this Agreement as set forth in Section 2.3.
(b) Entry of a final judgment setting aside, voiding or annulling the adoption of the ordinance approving this Agreement.
(c) The adoption of a referendum measure overriding or repealing the ordinance approving this Agreement.
(d) Completion of the Project in accordance with the terms of this Agreement including issuance of all required occupancy permits and acceptance by CITY or applicable public agency of all required dedications.

Termination of this Agreement shall not constitute termination of any other land use entitlements approved for the Property. Upon the termination of this Agreement, no party shall have any further right or obligation hereunder except with respect to any obligation to have been performed prior to such termination or with respect to any default in the performance of the provisions of this Agreement which has occurred prior to such termination or with respect to any obligations which are specifically set forth as surviving this Agreement. Upon such termination, any public facilities and services mitigation fees paid pursuant to Section 4.2 of this Agreement by OWNER to CITY for residential units on which construction has not yet begun shall be refunded to OWNER by CITY.

2.7 Notices.
(a) As used in this Agreement, “notice” includes, but is not limited to, the communication of notice, request, demand, approval, statement, report, acceptance, consent, waiver, appointment or other communication required or permitted hereunder. (b) All notices shall be in writing and shall be considered given either: (i) when delivered in person, including, without limitation, by courier, to the recipient named below; or (ii) on the date of delivery shown on the return receipt, after deposit in the United States mail in a sealed envelope as either registered or certified mail with return receipt requested, and postage and postal charges prepaid, and addressed to the recipient named below. All notices shall be addressed as follows:

If to CITY:

Scott Ochoa, City Manager
City of Ontario
303 East "B" Street
Ontario, CA 91764
If to OWNER:

Richland
Attn: Craig Cristina, Vice President
3161 Michelson Drive, Suite 425
Irvine, CA 92612
42 -13-

with a copy to:

Ruben Duran, City Attorney
Best Best & Krieger, LLP
2855 E Guasti Road
Ontario, CA 91761
with a copy to:

Richland
Attn: Legal Department
3161 Michelson Drive, Suite 425
Irvine, CA 92612
(c) Either party may, by notice given at any time, require subsequent notices to be given to another person or entity, whether a party or an officer or representative of a party, or to a different address, or both. Notices given before actual receipt of notice of change shall not be invalidated by the change.

3. DEVELOPMENT OF THE PROPERTY.

3.1 Rights to Develop. Subject to the terms of this Agreement including the Reservations of Authority, OWNER shall have a vested right to develop the Property in accordance with, and to the extent of, the Development Plan. The Project shall remain subject to all Subsequent Development Approvals required to complete the Project as contemplated by the Development Plan. Except as otherwise provided in this Agreement, the permitted uses of the Property, the density and intensity of use, the maximum height and size of proposed buildings, and provisions for reservation and dedication of land for public purposes shall be those set forth in the Development Plan.

3.2 Effect of Agreement on Land Use Regulations. Except as otherwise provided under the terms of this Agreement including the Reservations of Authority, the rules, regulations and official policies governing permitted uses of the Property, the density and intensity of use of the Property, the maximum height and size of proposed buildings, and the design, improvement and construction standards and specifications applicable to development of the Property shall be the Existing Land Use Regulations.

In connection with any Subsequent Development Approval, CITY shall exercise discretion in accordance with the same manner as it exercises its discretion under its police powers, including the Reservations of Authority set forth herein; provided however, that such discretion shall not prevent development of the Property for the uses and to the density or intensity of development set forth in this Agreement.

3.3 Timing of Development. The parties acknowledge that OWNER cannot at this time predict when or the rate at which phases of the Property will be developed.

Such decisions depend upon numerous factors which are not within the control of OWNER, such as market orientation and demand, interest rates, absorption, completion and other similar factors. Since the California Supreme Court held in Pardee Construction Co. v. City of Camarillo (1984) 37 Ca1. 3d 465, that the failure of the 43 -14-

parties therein to provide for the timing of development resulted in a later adopted initiative restricting the timing of development to prevail over such parties’ agreement, it is the parties’ intent to cure that deficiency by acknowledging and providing that OWNER shall have the right to develop the Property in such order and at such rate and at such times as OWNER deems appropriate within the exercise of its subjective business judgment.

3.4 Requirement for Public Infrastructure Improvements. Development of the Property is contingent in part on the phasing of area-wide infrastructure improvements over which the OWNER has control. The issuance of building permits by CITY for Model Units and Production Units is, in general, contingent on OWNER’s completion of needed infrastructure improvements and the availability of improvements and services to serve the Property.

3.4.1 Attached hereto as Exhibit “F” is a description of the infrastructure improvements needed for the development of the Property (“the Infrastructure Improvement Exhibit”).

3.4.2 Subject to the prior submittal by OWNER and approval by CITY of a plan to provide sufficient public infrastructure for the construction of a maximum number of Twenty-two (22) Model Units, private common recreation facilities and sales facilities. CITY may issue a maximum of Twenty-two (22) building permits for Model Units, private common recreation facilities and sales facilities. The plan to be submitted by OWNER for CITY approval shall describe the utilities and other infrastructure necessary to provide sufficient fire protection and other public health and safety requirements for the Model Units and other facilities.

3.5 Changes and Amendments. The parties acknowledge that refinement and further development of the Project will require Subsequent Development Approvals and may demonstrate that changes are appropriate and mutually desirable in the Existing Development Approvals. In the event OWNER finds that a change in the Existing Development Approvals is necessary or appropriate, OWNER shall apply for a Subsequent Development Approval to effectuate such change and CITY shall process and act on such application in accordance with the Existing Land Use Regulations, except as otherwise provided by this Agreement including the Reservations of Authority.

If approved, any such change in the Existing Development Approvals shall be incorporated herein as an addendum to Exhibit “C”, and may be further changed from time to time as provided in this Section. Unless otherwise required by law, as determined in CITY’s reasonable discretion, a change to the Existing Development Approvals shall be deemed “minor” and not require an amendment to this Agreement provided such change does not:
(a) Alter the permitted uses of the Property as a whole; or, (b) Increase the density or intensity of use of the Property as a whole; or,
44 -15-

(c) Increase the maximum height and size of permitted buildings; or, (d) Delete a requirement for the reservation or dedication of land for public purposes within the Property as a whole; or,
(e) Constitute a project requiring a subsequent or supplemental environmental impact report pursuant to Section 21166 of the Public Resources Code.

3.6 Reservations of Authority.

3.6.1 Limitations, Reservations and Exceptions. Notwithstanding any other provision of this Agreement, the CITY shall not be prevented from applying new rules, regulations and policies upon the OWNER, nor shall a development agreement prevent the CITY from denying or conditionally approving any subsequent development project application on the basis of such new rules, regulations and policies where the new rules, regulations and policies consist of the following:
(a) Processing fees by CITY to cover costs of processing applications for development approvals or for monitoring compliance with any development approvals;
(b) Procedural regulations relating to hearing bodies, petitions, applications, notices, findings, records and any other matter of procedure;
(c) Regulations, policies and rules governing engineering and construction standards and specifications applicable to public and private improvements, including all uniform codes adopted by the CITY and any local amendments to those codes adopted by the CITY; provided however that, OWNER shall have a vested right to develop the Property in accordance with, and to the extent of, the standards and specifications that are expressly identified in the Specific Plan;
(d) Regulations that may conflict with this Agreement and the Development Plan but that are reasonably necessary to protect the residents of the project and/or of the immediate community from a condition perilous to their health or safety;
(e) Regulations that do not conflict with those rules, regulations and policies set forth in this Agreement or the Development Plan; (f) Regulations that may conflict but to which the OWNER consents.

3.6.2 Subsequent Development Approvals. This Agreement shall not prevent CITY, in acting on Subsequent Development Approvals, from applying 45 -16-

Subsequent Land Use Regulations that do not conflict with the Development Plan, nor shall this Agreement prevent CITY from denying or conditionally approving any Subsequent Development Approval on the basis of the Existing Land Use Regulations or any Subsequent Land Use Regulation not in conflict with the Development Plan.

3.6.3 Modification or Suspension by State or Federal Law. In the event that State or Federal laws or regulations, enacted after the Effective Date of this Agreement, prevent or preclude compliance with one or more of the provisions of this Agreement, such provisions of this Agreement shall be modified or suspended as may be necessary to comply with such State or Federal laws or regulations, provided, however, that this Agreement shall remain in full force and effect to the extent it is not inconsistent with such laws or regulations and to the extent such laws or regulations do not render such remaining provisions impractical to enforce. In the event OWNER alleges that such State or Federal laws or regulations preclude or prevent compliance with one or more provisions of this Agreement, and the CITY does not agree, the OWNER may, at its sole cost and expense, seek declaratory relief (or other similar non-monetary remedies); provided however, that nothing contained in this Section 3.6.3 shall impose on CITY any monetary liability for contesting such declaratory relief (or other similar non-monetary relief).

3.6.4 Intent. The parties acknowledge and agree that CITY is restricted in its authority to limit its police power by contract and that the foregoing limitations, reservations and exceptions are intended to reserve to CITY all of its police power which cannot be so limited. This Agreement shall be construed, contrary to its stated terms if necessary, to reserve to CITY all such power and authority which cannot be restricted by contract.

3.7 Public Works; Utilities. If OWNER is required by this Agreement to construct any public works facilities which will be dedicated to CITY or any other public agency upon completion, and if required by applicable laws to do so, OWNER shall perform such work in the same manner and subject to the same requirements as would be applicable to CITY or such other public agency should it have undertaken such construction. As a condition of development approval, OWNER shall connect the Project to all utilities necessary to provide adequate water, recycled water, sewer, gas, electric, and other utility service to the Project. As a further condition of development approval, OWNER shall contract with the CITY for CITY-owned or operated utilities for this purpose, for such price and on such terms as may be available to similarly situated customers in the CITY.
(INSERT SPECIFIC INFRASTRUCUTRE IMPROVEMENTS)

3.7.1 OWNER agrees that development of the Project shall require the construction of Storm Drain facilities from the Property to the connection with the County Line Channel as described in Exhibit F. OWNER shall be responsible for 46 -17-

the construction of the necessary extension of master planned Storm Drain facilities.

3.7.2 OWNER agrees that development of the Project shall require the construction of street improvements as described in Exhibit E and depicted in Exhibit F.

3.7.3 OWNER agrees that development of the Property shall require the extension of permanent water and recycled water utility infrastructure as described in Exhibit E and depicted in Exhibit F consisting generally of the construction of the extension of permanent water and recycled water utility improvements to serve the Property. OWNER agrees that no building permits shall be issued by CITY for Production Units prior to completion of the water and recycled water Improvements as described in Exhibit E and depicted in Exhibit F.

OWNER agrees that recycled water shall be available and utilized by OWNER for all construction-related water uses including prior to, and during, any grading of the Property.

3.7.4 OWNER agrees that NMC Builders shall be responsible for funding a portion of the design and construction of an additional extension of recycled water infrastructure in Riverside and Haven Avenues to be constructed by CITY.

These recycled water Improvements shall also serve the Project. OWNER shall deposit, or shall have deposited, with NMC Builders an amount equal to the OWNER’s capital contribution for the design and construction of the NMC Builders portion of the recycled water improvements in Riverside and Haven Avenues known as the “Phase 2 Recycled Water Improvements” within thirty (30) days after CITY requests such funds from NMC Builders. If OWNER has not deposited such amount, with NMC Builders within thirty (30) days after CITY requests such funds from NMC Builders, then CITY shall be entitled to withhold issuance of any further permits (whether discretionary or ministerial) for the Project unless and until OWNER deposits the amount of OWNER’s capital contribution with NMC Builders for the design and construction of the NMC Builders portion of the Phase 2 Recycled Water System Improvements.

3.7.5 OWNER agrees that development of the Property shall require the extension of permanent sewer improvements, at OWNER’s sole cost and expense, as described in the attached Exhibit E and depicted in Exhibit F consisting generally of the construction of the extension of sewer infrastructure to serve the Property.

3.7.6 OWNER agrees that development of the Property shall require the extension of permanent master planned fiber optic communications infrastructure, at OWNER’s sole cost and expense, as described in the attached Exhibit F consisting generally of the construction of the extension of fiber optic communications infrastructure to serve the Property.
47 -18-

3.8 Acquisition of Offsite Provision of Real Property Interests. In any instance where OWNER is required by any Development Approval or Land Use Regulation and the Construction Agreement to construct any public improvement on land not owned by OWNER (“Offsite Improvements”), the CITY and OWNER shall cooperate in acquiring the necessary legal interest (“Offsite Property”) in accordance with the procedures set forth in Section 2.4 of the Construction Agreement. This section 3.8 is not intended by the parties to impose upon the OWNER an enforceable duty to acquire land or construct any public improvements on land not owned by OWNER, except to the extent that the OWNER elects to proceed with the development of the Project, and then only in accordance with valid conditions imposed by the CITY upon the development of the Project under the Subdivision Map Act or other legal authority.

3.8.1 CITY Acquisition of Non-Construction Agreement Offsite Property. In the event OWNER is required to construct any public improvements on land not owned by OWNER, but such requirement is not based upon the Construction Agreement, Sections 3.8.1 and 3.8.2 shall control the acquisition of the necessary property interest(s) (“Non-Construction Agreement Offsite Property”).

If the OWNER is unable to acquire such Non-Construction Agreement Offsite Property, and following the written request from the OWNER to CITY, CITY agrees to use reasonable and diligent good faith efforts to acquire the NonConstruction Agreement Offsite Property from the owner or owners of record by negotiation to the extent permitted by law and consistent with this Agreement. If CITY is unable to acquire the Non-Construction Agreement Offsite Property by negotiation within thirty (30) days after OWNER’S written request, CITY shall, initiate proceedings utilizing its power of eminent domain to acquire that NonConstruction Agreement Subject Property at a public hearing noticed and conducted in accordance with California Code of Civil Procedure Section 1245.235 for the purpose of considering the adoption of a resolution of necessity concerning the Non-Construction Agreement Offsite Property, subject to the conditions set forth in this Section 3.8. The CITY and OWNER acknowledge that the timelines set forth in this Section 3.8.1 represent the maximum time periods which CITY and OWNER reasonably believe will be necessary to complete the acquisition of any Non-Construction Agreement Offsite Property. CITY agrees to use reasonable good faith efforts to complete the actions described within lesser time periods, to the extent that it is reasonably able to do so, consistent with the legal constraints imposed upon CITY.

3.8.2 Owner’s Option to Terminate Proceedings. CITY shall provide written notice to OWNER no later than fifteen (15) days prior to making an offer to the owner of the Non-Construction Agreement Offsite Property. At any time within that fifteen (15) day period, OWNER may, at its option, notify CITY that it wants CITY to cease all acquisition proceedings with respect to that Non-Construction Agreement Offsite Property, whereupon CITY shall cease such proceedings.

CITY shall provide written notice to OWNER no later than fifteen (15) days prior to the date of the hearing on CITY’S intent to consider the adoption of a resolution of necessity as to any Non-Construction Agreement Offsite Property.

At any time within that fifteen (15) day period, OWNER may, at its option, notify 48 -19-

CITY that it wants CITY to cease condemnation proceedings, whereupon CITY shall cease such proceedings. If OWNER does not notify CITY to cease condemnation proceedings within said fifteen (15) day period, then the CITY may proceed to consider and act upon the Non-Construction Agreement Offsite Property resolution of necessity. If CITY adopts such resolution of necessity, then CITY shall diligently institute condemnation proceedings and file a complaint in condemnation and seek an order of immediate possession with respect to the Non-Construction Agreement Offsite Property.

3.9 Regulation by Other Public Agencies. It is acknowledged by the parties that other public agencies not within the control of CITY possess authority to regulate aspects of the development of the Property separately from or jointly with CITY and this Agreement does not limit the authority of such other public agencies. CITY agrees to cooperate fully, at no cost to CITY, with OWNER in obtaining any required permits or compliance with the regulations of other public agencies provided such cooperation is not in conflict with any laws, regulations or policies of the CITY.

3.10 Tentative Tract Maps; Extension. With respect to applications by OWNER for tentative subdivision maps for portions of the Property, CITY agrees that OWNER may file and process tentative maps in accordance with Chapter 4.5 (commencing with Section 66498.1) of Division 2 of Title 7 of the California Government Code and the applicable provisions of CITY’s subdivision ordinance, as the same may be amended from time to time. In accordance with the provisions of Section 66452.6 of the Government Code, each tentative subdivision map or tentative parcel map, heretofore or hereafter approved in connection with development of the Property, shall be deemed to have been granted an extension of time to and until the date that is five (5) years following the Effective Date of this Agreement.; The CITY’s City Council may, in its discretion, extend any such map for an additional period of up to five (5) years beyond its original term, so long as the subdivider files a written request for an extension with the City prior to the expiration of the initial five (5) year term.

4. PUBLIC BENEFITS.

4.1 Intent. The parties acknowledge and agree that development of the Property will result in substantial public needs that will not be fully met by the Development Plan and further acknowledge and agree that this Agreement confers substantial private benefits on OWNER that should be balanced by commensurate public benefits. Accordingly, the parties intend to provide consideration to the public to balance the private benefits conferred on OWNER by providing more fully for the satisfaction of the public needs resulting from the Project.

4.2 Development Impact Fees.

4.2.1 Amount of Development Impact Fee. Development Impact Fees (DIF) shall be paid by OWNER. The Development Impact Fee amounts to be paid by OWNER shall be the amounts that are in effect at the time such amounts are due. Nothing contained in this Agreement shall affect the ability of the CITY to 49 -20-

impose new Development Impact Fees or amend the amounts of existing Development Impact Fees. Additionally, nothing contained in this Agreement shall affect the ability of other public agencies that are not controlled by CITY to impose and amend, from time to time, Development Impact Fees established or imposed by such other public agencies, even though such Development Impact Fees may be collected by CITY.

4.2.2 Time of Payment. The Development Impact Fees required pursuant to Subsection 4.2.1 shall be paid to CITY prior to the issuance of building permit for each applicable residential or other unit, except for the Open Space and Habitat Acquisition Development Impact fee, which shall be paid by OWNER to CITY prior to the issuance of a grading permit. Deferral of the payment of Development Impact Fees may be granted pursuant to a separate agreement approved by City pursuant to City policy. Any existing Development Impact Fee (DIF) credits held by the Owner or any affiliated entity shall be applied toward the payment of DIFs as required under Subsection 4.2.1.

4.2.3 Parkland and Quimby Act Fees. Pursuant to the General Plan (OntarioPlan) Goal PR1, Policy PR1-5 (achievement of a park standard of 5 acres of parkland per 1,000 residents) OWNER shall provide improved parks, developed in accordance with the City’s park standards in an amount equal to two (2) acres per 1,000 of projected population without credit, reimbursement, offset or consideration from City. Such areas shall either be dedicated to the City or transferred to a homeowners’ association. If approved by the City Manager, OWNER may satisfy this requirement through the development of non-public recreation facilities such as private recreational clubhouses or pool facilities.

Credit for such private recreational facilities areas shall be limited to a maximum of 50% of the foregoing park development requirement. If OWNER’s Project does not provide dedicated and developed park acreage equal to two (2) acres per 1,000 projected population, OWNER shall pay a fee in-lieu equal to the per acre estimated costs of acquisition and development of parkland in the City’s Development Impact Fee for the calculated park acreage deficiency. Such in-lieu fee shall be due and payable prior to the issuance of the first building permit for Production Units issued to OWNER. Any park dedication and/or improvements in excess of such two (2) acres per thousand standard, provided such park has been developed in accordance with the City’s park standards and is open to the public generally, shall entitle OWNER to a credit toward its obligations under the Quimby Act (Gov. Code, § 64477) and the City’s implementing ordinance and/or resolution (collectively “Quimby Act Obligations”), and to the extent OWNER’s Quimby Act Obligations are satisfied, OWNER shall be entitled to have the City acquire such developed and publicly available parks as Non-Program Interests in accordance with Section 4.3.3 below. (Other provisions will be added that are Project-specific, if applicable).

4.3 Responsibility for Construction of Public Improvements. 50 -21-

4.3.1 Timely Construction of Public Infrastructure. The phasing of the areawide infrastructure construction within the New Model Colony will be as approved by the CITY. OWNER shall be responsible for the timely construction and completion of all public infrastructure required for the Project as shown on the attached Exhibit “F” and any and all tentative tract map conditions. Unless otherwise specified in the Subdivision Agreement/Tract Map conditions, all other required Improvements for each Tract Map, shall be completed and operational prior to, and as a condition precedent to, OWNER requesting and CITY’s granting of the first building permit for production units for each such Tract Map.

All Infrastructure and Improvements shall be completed as required by the Subdivision Agreement/Tract Map conditions for Tract No. 20779.

4.3.2 Construction of DIF Program Infrastructure (Construction Agreement). To the extent OWNER is required to construct and completes construction of public improvements that are included in CITY’s Development Impact Fee Program and the Construction Agreement between CITY and NMC Builders LLC, CITY agrees that CITY shall issue DIF Credit in accordance with the provisions of the Construction Agreement and any amendments thereto. Use of DIF Credit issued to OWNER as a member of NMC Builders LLC to offset OWNER’s DIF payment obligations shall also be subject to the provisions of the Construction Agreement and any amendments thereto.

4.3.3 Construction of DIF Program Infrastructure (Non-Construction Agreement). To the extent OWNER is required to construct and completes construction of public improvements that are included in CITY’s Development Impact Fee Program and such public improvements are not included the Construction Agreement between CITY and NMC Builders LLC, CITY agrees that CITY shall issue DIF Credit and DIF Reimbursement in accordance with the provisions of a separate Fee Credit Agreement between CITY and OWNER.

Limitation on the use of DIF Credit issued to OWNER to offset OWNER’s DIF payment obligations shall also be subject to the provisions of a separate Fee Credit Agreement. OWNER may also be eligible to receive reimbursement from DIF collected by CITY and paid by other development that benefits from OWNER’s construction of DIF Program Infrastructure. Any such DIF Reimbursement shall be subject to a Fee Credit Agreement between CITY and OWNER. CITY and OWNER agree that the Fee Credit Agreement between CITY and OWNER shall comply with CITY’s adopted policies applicable to such agreements.

4.3.4 Availability and use of Recycled Water. OWNER agrees that recycled water shall be available and utilized by OWNER for all construction-related water uses including prior to, and during, any grading of the Property.

4.4 Affordable Housing Requirement.

4.4.1 Affordable Housing- Number of Units. OWNER shall provide a minimum number of affordable housing units, equivalent to 10% of the OWNER’s total 51 -22-

approved residential units within the Project, that are affordable to very low, low and moderate income households. Such requirement for affordable housing shall be met through one, or a combination of one or more, of the options provided in the following SectionsF 4.3.2.1 through 4.3.2.1. For the purposes of this Section, any term not defined in this Agreement shall be as defined by California Community Redevelopment Law (California Health and Safety Code Section 33000 et seq.).

4.4.2 Affordability Spread. Of the total number of residential dwelling units specified in Section 4.4.1, to be constructed or rehabilitated pursuant to Sections

4.4.2.1 or 4.4.2.2 respectively, thirty percent (30%) shall be available to very low income, thirty percent (30%) shall be available to low income and forty percent (40%) shall be available to moderate income households. “Households” shall be as defined by California Health and Safety Code Section 50053.

4.4.2.1 New Construction. If OWNER elects to fully or partially satisfy the affordable housing requirement by the construction of new residential units, it shall construct and restrict the affordability of residential dwelling units within its Project or, at OWNER’s option and with the approval of the City, within another project elsewhere within the City. The affordable units constructed shall be intermingled with other units as part of the Project, and shall be built to the same construction, design and aesthetic standards, as well as number of rooms, as other units constructed as part of that OWNER’s Project. In addition, the percentage ratio of affordable units offered for sale versus those offered for rent shall equal the percentage ratio of other units offered for sale versus for rent within OWNER’s Project.

Such construction shall be completed no later than the date that is five (5) years following the issuance of the first building permit for OWNER’s Project; provided however that to the extent OWNER has not constructed the required percentage of units, based on the number of building permits for non-restricted units, OWNER shall, prior to the issuance of such building permits, provide security (in the form and substance approved by the City Manager and City Attorney) to City in order to ensure the faithful completion of such required percentage of construction of affordable units.

If OWNER elects the option of constructing new affordable units, a detailed Affordable Housing Agreement specifying terms for the allowable monthly housing costs or rents (as applicable) and maintenance and occupancy standards shall be prepared, executed and recorded against such units as a condition to the issuance of a building permit. The Affordable Housing Agreement shall hold a recorded priority position senior to any other nonstatutory lien or encumbrance affecting the unit.

4.4.2.2 Rehabilitation. If OWNER elects to fully or partially satisfy the affordable housing requirement by the substantial rehabilitation of existing residential units in the City, it shall substantially rehabilitate and restrict the affordability of, the number of residential units specified in Section 4.4.1, provided that such units shall be provided elsewhere within the City. The 52 -23-

rehabilitation work shall be substantial and of high quality and shall also address any deferred property maintenance issues on the property. “Substantial rehabilitation” shall mean rehabilitated multi-family rented dwelling units with three or more units and the value of the rehabilitation constitutes 25 percent of the after rehabilitation value of the dwelling, inclusive of land value pursuant to Health and Safety Code Section 33413(b)(2)(A)(iii-iv) as such section exists as of the Effective Date of this Agreement. If OWNER chooses the option of rehabilitation of existing housing units within the City, a detailed Affordable Housing Agreement specifying the terms for the allowable month housing costs or rents (as applicable) and maintenance and occupancy standards shall be prepared, executed and recorded against such units as a condition to the issuance of a building permit. Such rehabilitation shall be completed no later than the date that is five (5) years following the issuance of the first building permit for OWNER’s Project; provided however that to the extent OWNER has not rehabilitated the required percentage of units, based on the number of building permits, OWNER shall, prior to the issuance of such building permits, provide security (in the form and substance approved by the City Manager and City Attorney) to the City in order to ensure the faithful completion of such required percentage of rehabilitation.

4.4.2.3 In-Lieu Fee. If OWNER has not fully complied with the requirements of Section 4.4.1 by providing the minimum number of affordable units through the construction of new affordable units or by the substantial rehabilitation of existing units, shall pay an “Affordability InLieu Fee”. If OWNER has not provided any affordable residential units by construction or rehabilitation, the Affordability In-Lieu fee shall be equal to Three Dollars and Forty-Six Cents ($3.46) per square foot of residential development within OWNER’s Project or, if pre-paid as set forth below, Three Dollars and Four Cents ($3.04) per square foot of residential development within OWNER’s Project. If OWNER has partially complied with the requirements of Section 4.4.1 by construction or rehabilitation of less than the minimum number of units, then the Affordability In-lieu Fee shall be recalculated and reduced in consideration of the number and type of affordable units provided. The Affordability In-Lieu Fee shall be paid by OWNER to City no later than prior to the issuance of each building permit within OWNER’s Project based on the square footage of the residential unit for which such building permit is sought; provided however that OWNER may, at OWNER’s election, pre-pay such Affordability In-Lieu Fee by paying such Affordability In-Lieu Fee within thirty (30) days following the earliest discretionary approval by the City for OWNER’s Project, including, but not limited to, any general plan amendment, specific plan adoption, development agreement, tentative map approval, variance, conditional use permit, or resolution of intention to form any public financing mechanism.

Three Dollars and Forty-Six Cents ($3.46) Three Dollars and Four Cents ($3.04) per square foot amounts shall automatically be increased annually, commencing on July 1, 2025, and automatically each July 1 thereafter. 53 -24-

Such adjustment shall be based on the percentage increase (but no decrease) in the Consumer Price Index (Riverside - San Bernardino - Ontario, CA), (December 2017=100) over the preceding year. The prepaid Affordability In-Lieu Fee shall be calculated based on the maximum floor area ratio (FAR) permitted within the General Plan and any applicable FAR contained within the applicable specific plan, whichever is greater, and the Maximum Development Density. For purposes of this Agreement, “Maximum Development Density” shall be determined by multiplying the OWNER’s Project’s density for residential development potential as set forth in the General Plan or the applicable Specific Plan, whichever is less, by the net acreage of land within OWNER’s Project. All “Affordability InLieu Fees” collected by the City shall be used to promote the construction of affordable housing within the City.

4.4.2.4 Affordability Covenants. Prior to the issuance of the first building permit for any affordable unit, the City and OWNER shall enter into an Affordable Housing Agreement Affordability shall be assured for a period of forty-five (45) years for for-sale units and fifty-five (55) years for rentals.

For rental units, base rents shall be established by the City and rental adjustments required by the City shall be performed on an annual basis. In addition, the Affordable Housing Agreement shall impose maximum occupancy limits of 2 occupants per bedroom plus 1 additional occupant per dwelling unit, and a requirement for the owner or tenant to properly maintain each dwelling unit.

4.4.2.5 Transfer of Affordable Project. No transfer of title to any affordable housing project shall occur without the prior written consent of the City. In the event OWNER transfers title to any affordable housing project required to be constructed pursuant to this Agreement to a non-profit entity, or other entity, that receives an exemption from ad valorem real property taxes, the City shall be required to assure payment of an annual in lieu fee to the City on July 1 of each year equal to one-tenth of one percent (0.1%) of the assessed value of such project. The City may permit OWNER to satisfy this obligation by recorded covenants against the property and enforceable against said entity by the City. Any such covenants shall be approved by the Planning Director and the City Attorney.

4.5 Schools Obligations.

4.5.1 Written Evidence of Compliance with Schools Obligations. OWNER shall, either through joint or individual agreements between OWNER and the applicable school district(s), shall satisfy its new school obligations. The new school obligations for the Mountain View School District in the Ontario Ranch area have been projected to include the acquisition or dedication of school sites for, and construction of, up to eight (8) schools. Of these eight (8) schools, six (6) are to be elementary (K-5) grade schools and two (2) are to be middle grade schools. The new school obligations for the Chaffey Joint Union High School 54 -25-

District in the Ontario Ranch area have been projected to include the dedication of a school site for, and construction of, an additional high school. The new school obligations for the applicable school district shall be met by a combination of the following: (1) designating and dedicating school site(s) within the Property as set forth in the General Plan, and/or (2) paying school impact fees, (3) entering into a joint mitigation agreement or individual mitigation agreements, or (4) any combination of the foregoing. Written evidence of approval by the applicable school district that OWNER has met their school obligations may be required by the City as the condition to the issuance by the City of any entitlements for OWNER’s Project. In the event OWNER is unable to provide such written evidence from the applicable school district(s), the City shall have the right to decline to honor any DIF Credit, Certificates of MDD Availability, Certificates of Storm Water Treatment Capacity Availability, or any combination thereof, presented by such OWNER, without liability to the City. To the extent that a joint mitigation agreement is approved by the applicable school district(s), and OWNER is a participant in good standing in such mitigation agreement, OWNER shall be deemed to have mitigated its new school obligations under this Section 4.4.1.

4.6 Net MDD/Water Availability Equivalents.

4.6.1 Effectiveness of Agreement. Notwithstanding anything else set forth in this Agreement, CITY and OWNER each acknowledge, confirm, and agree, that (i) the City approval of this Agreement and (ii) the effectiveness of this Agreement, in each case, is conditioned upon OWNER’s admission to NMC Builders as a “Member” thereof pursuant to the terms and conditions of the operating agreement of NMC Builders. OWNER and CITY agree that OWNER shall become a Member of NMC Builders within 30 days of the effective date of this Agreement.

4.6.1 Assigned Net MDD/Water Availability Equivalents. The City has agreed with NMC Builders LLC to reserve exclusively for Members of NMC Builders, including OWNER, Net MDD made available through the construction of water system improvements funded by NMC Builders LLC. NMC Builders has assigned to OWNER its allocable share of the Net MDD issued by City. The provisions of the Construction Agreement Amendment requires that the City shall not approval a final tract map or issue building permits or certificates of occupancy for the area of development within the New Model Colony served by the water system improvements funded by NMC Builders LLC, except to the bearer of an Assignment of Net MDD Water Availability.

4.6.2 Requirement of NMC Builders, LLC Membership as a Phase 2 Water Member. OWNER and CITY agree that OWNER’s’ payment to CITY required by Section 4.6.3 below represents OWNER’s contribution to the funding required for the future construction of the Phase 2 Water Improvements and the availability of additional Net MDD Water Availability required for the development of the Property described in Exhibit A of this Agreement.
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4.6.3 CITY issuance of Water Availability Equivalents. Within 30 days after the effectiveness of this Development Agreement OWNER shall pay or have paid to City the applicable Phase 2 Water Participation Fee. The Phase 2 Water Participation Fee shall be the calculated based on the amount of the Regional Water DIF for the applicable land use category and the square footage of the applicable buildings. The calculated amount of the Phase 2 Water Participation Fee shall be paid to City within 30 days after the effective date of this Agreement or, at OWNER’s option, the Phase 2 Water Participation Fee may be paid to City in two (2) installments. The first installment shall be fifty percent (50%) of the total Phase 2 Water Participation Fee and such first installment shall be due and payable to City within 30 days after the effective date of this Development Agreement. The second installment shall be the remaining amount of the Phase 2 Water Participation Fee and such second installment shall be due and payable to City within one (1) year after the payment of the first installment, or prior to, and as a condition precedent to, the recording of any final Parcel Map for the Project, whichever occurs first. Upon OWNER’s complete payment to CITY of the Phase 2 Water Participation Fee CITY shall issue a Certificate of Water Availability Equivalents in the form attached hereto as Exhibit G. Such Water Availability Equivalents Certificate shall be issued by CITY within thirty (30) days of the receipt of such required payment. CITY and OWNER agree that the amount of Water Availability Equivalents issued to OWNER shall be based on the maximum projected need for Water Availability Equivalents required for the Property based upon water demand factors and assumptions listed in Exhibit C2R of the Phase 2 Water Amendment to the Construction Agreement “Water Demand Equivalents by Land Use” for each land use category. Additionally, within five (5) business days of CITY’s receipt of OWNER’s payment as required under this Section 4.6.2, CITY shall issue a certificate of DIF Credit against OWNER’s DIF obligations in the Regional Water DIF Category.

4.6.2 Use of Assigned Net MDD Water Availability. OWNER shall provide evidence of sufficient Net MDD Water Availability Equivalents (or portions thereof) prior to and as a condition precedent to, the City’s approval of any and all tract maps for the Property. The amount of Net MDD Water Availability Equivalents required for City’s approval of a tract map shall be based upon water demand factors and assumptions listed in Exhibit C-2R of the Construction Agreement Amendment as “Water Demand Equivalents by Land Use” for each land use category.

4.6.3 Requirement for other Water System Improvements. A Certificate of Net MDD Availability is evidence only of available water capacity and does not satisfy any other conditions applicable to an OWNER’s Project, including those relating to design and construction of master-planned potable water and recycled water transmission and distribution system for the respective pressure zone and other public infrastructure requirements.

4.7 Storm Water Capacity Availability.
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4.7.1 Requirement for Storm Water Treatment Capacity Availability. OWNER shall provide evidence of sufficient Storm Water Treatment Capacity Availability as reserved in a Certificate of Storm Water Treatment Capacity Availability the same manner and subject to the same limitations as provided for the assignment of Certificates of Net MDD Availability in Section 4.6 of this Agreement.

4.7.2 Use of Storm Water Treatment Capacity Availability. The amount of Storm Water Treatment Capacity Availability required for the issuance of a grading permit to OWNER shall be based upon the Net Residential Acreage of the area to be graded regardless of the corresponding use.

4.7.3 Requirement for other Storm Water Improvements. The Certificate of Storm Water Treatment Capacity Availability is evidence only of available storm water treatment capacity and does not satisfy any other conditions applicable to a particular development project, including those relating to on-site water treatment, water quality, connection to the storm water collection system, or other public infrastructure requirements.

4.8 Maintenance of Open Space. OWNER shall provide for the ongoing maintenance of all park, common areas and open space areas within the Project as more particularly set forth in the Specific Plan, through a homeowners’ association as approved by the CITY. Covenants, conditions and restrictions establishing any homeowners’ association shall be approved by the Planning Director and City Attorney.

4.9 Compliance with Public Benefits Requirements.

4.9.1 Failure to Provide Public Benefits. In the event OWNER fails or refuses to comply with any condition referenced in Section 4.1 through 4.9, or challenges (whether administratively or through legal proceedings) the imposition of such conditions, OWNER shall be deemed in default of this Agreement pursuant to Section 8.4 hereof, thereby entitling the City to any and all remedies available to it, including, without limitation, the right of the City to withhold OWNER’s Projectrelated building permits, certificates of occupancy, or discretionary approvals, without liability.

5. FINANCING OF PUBLIC IMPROVEMENTS.

5.1 Financing Mechanism(s). In accordance with the Memorandum of Agreement between the CITY and NMC Builders, CITY will cooperate with OWNER in the formation of a CFD, or CFDs, to include all of the Project, to provide a financing mechanism to reimburse the OWNER for funds paid to NMC Builders LLC for OWNER’s share of the costs of public infrastructure pursuant to the Construction Agreement and to acquire other public facilities constructed by OWNER subject to the provisions of the Memorandum of Agreement between CITY and NMC Builders LLC.

Notwithstanding such reimbursements and acquisitions, OWNER shall remain entitled to DIF Credits as provided for in Article 3 of the Construction Agreement and/or as provided for in a separate Fee Credit Agreement between CITY and OWNER. OWNER 57 -28-

agrees that, prior to the recordation of any Tract Map for the Property, the Property shall be included in a CFD to finance City services through annual special taxes that will initially be $1,426.38 per Single Family Detached Dwelling Unit, $1,236.46 per MultipleFamily Dwelling Unit, $1,036.38 per Gated Apartment Community Dwelling Unit, and $.26 per square foot for Non-Residential buildings. These amounts shall be subject to an automatic increase at a rate not to exceed four (4%) percent per year, unless otherwise modified by the CITY. CITY shall be the sole and exclusive lead agency in the formation of any CFD, assessment district or other public financing mechanism within the Property; provided however, that the proceeds of any such CFD, assessment district, or financing mechanism may be used, subject to restrictions that may be imposed by applicable law, for the purposes of acquiring, constructing or maintaining public facilities to be owned or operated by other public agencies, including, without limitation those facilities owned or operated by a school district. In addition to the rights of the CITY pursuant to section 5.2 hereof, CITY shall have the right, but not the obligation, to condition the formation of any CFD, assessment district or other public financing mechanism within the Property on the OWNER mitigating all Project-related impacts to the applicable school district(s) as required by such school district(s).

Written evidence by such school district(s) may be required by the CITY as the condition to the formation of any CFD, assessment district or other public financing mechanism within the Property, or any steps preliminary thereto, including, without limitation, the adoption of any resolution of intention to form such CFD, assessment district or other public financing mechanism within the Property. It is not the intent of the parties hereto, by this provision, to prohibit or otherwise limit the City’s ability to take any and all necessary steps requisite to the formation of the CFD to finance City services through annual special taxes as set forth in this Section 5.1. Formation of any CFD, assessment district or other public financing mechanism within the Property, shall be subject to CITY’s ability to make all findings required by applicable law and complying with all applicable legal procedures and requirements including, without limitation, CITY’s public financing district policies as such policies may be amended from time to time. Notwithstanding the foregoing, it is acknowledged and agreed by the parties that nothing contained in this Agreement shall be construed as requiring CITY or the City Council to form any such district or to issue and sell bonds.

6. REVIEW FOR COMPLIANCE.

6.1 Periodic and Special Reviews.

6.1.1 Time for and Initiation of Periodic Review. The CITY shall review this Agreement every twelve (12) months from the Effective Date in order to ascertain the good faith compliance by the OWNER with the terms of this Agreement. The OWNER shall submit an Annual Monitoring Report to CITY, in a form acceptable to the City Manager, along with any applicable processing charge within ten (10) days after each anniversary date of the Effective Date of this Agreement. Within fifteen (15) days after the receipt of the Annual Monitoring Report, CITY shall review the Annual Monitoring Report. Prior to the expiration of the fifteen (15) day review period, CITY shall either issue a notice of continuing compliance or a 58 -29-

notice of non-compliance and a notice of CITY’s intent to conduct a Special Review pursuant to Sections 6.1.2 through 6.1.6. Issuance of a notice of continuing compliance may be issued by the City Manager or his designee.

6.1.2 Initiation of Special Review. A special review may be called either by agreement between the parties or by initiation in one or more of the following ways:
(1) Recommendation of the Planning staff;
(2) Affirmative vote of at least four (4) members of the Planning Commission; or
(3) Affirmative vote of at least three (3) members of the City Council.

6.1.3 Notice of Special Review. The City Manager shall begin the special review proceeding by giving notice that the CITY intends to undertake a special review of this Agreement to the OWNER. Such notice shall be given at least ten (10) days in advance of the time at which the matter will be considered by the Planning Commission.

6.1.4 Public Hearing. The Planning Commission shall conduct a hearing at which the OWNER must demonstrate good faith compliance with the terms of this Agreement. The burden of proof on this issue is upon the OWNER.

6.1.5 Findings Upon Public Hearing. The Planning Commission shall determine upon the basis of substantial evidence whether or not the OWNER has, for the period under review, complied in good faith with the terms and conditions of this Agreement.

6.1.6 Procedure Upon Findings.
(a) If the Planning Commission finds and determines on the basis of substantial evidence that the OWNER has complied in good faith with the terms and conditions of this Agreement during the period under review, the review for that period is concluded.
(b) If the Planning Commission finds and determines on the basis of substantial evidence that the OWNER has not complied in good faith with the terms and conditions of this Agreement during the period under review, the Planning Commission may recommend to the City Council to modify or terminate this Agreement. (c) The OWNER may appeal a determination pursuant to
paragraph (b) to the City Council in accordance with the CITY's rule for consideration of appeals in zoning matters generally.
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6.2 Proceedings Upon Modification or Termination. If, upon a finding under Section 6.1.6(b), the CITY determines to proceed with modification or termination of this Agreement, the CITY shall give notice to the property OWNER of its intention so to do.

The notice shall contain:
(a) The time and place of the hearing;
(b) A statement as to whether or not the CITY proposes to terminate or to modify this Agreement; and
(c) Other information that the CITY considers necessary to inform the OWNER of the nature of the proceeding.

6.3 Hearing on Modification or Termination. At the time and place set for the hearing on modification or termination, the OWNER shall be given an opportunity to be heard. The OWNER shall be required to demonstrate good faith compliance with the terms and conditions of this Agreement. The burden of proof on this issue shall be on the OWNER. If the City Council finds, based upon substantial evidence in the administrative record, that the OWNER has not complied in good faith with the terms and conditions of the agreement, the City Council may terminate or modify this Agreement and impose those conditions to the action it takes as it considers necessary to protect the interests of the CITY. The decision of the City Council shall be final, subject only to judicial review pursuant to Section 1094.5 of the Code of Civil Procedure.

6.4 Certificate of Agreement Compliance. If, at the conclusion of a Periodic or Special Review, OWNER is found to be in compliance with this Agreement, CITY shall, upon written request by OWNER, issue a Certificate of Agreement Compliance (“Certificate”) to OWNER stating that after the most recent Periodic or Special Review and based upon the information known or made known to the Planning Director and City Council that (1) this Agreement remains in effect and (2) OWNER is not in default.

The Certificate shall be in recordable form, shall contain information necessary to communicate constructive record notice of the finding of compliance, shall state whether the Certificate is issued after a Periodic or Special Review and shall state the anticipated date of commencement of the next Periodic Review. OWNER may record the Certificate with the County Recorder. Whether or not the Certificate is relied upon by assignees or other transferees or OWNER, CITY shall not be bound by a Certificate if a default existed at the time of the Periodic or Special Review, but was concealed from or otherwise not known to the Planning Director or City Council.

7. [RESERVED]

8. DEFAULT AND REMEDIES.

8.1 Remedies in General. It is acknowledged by the parties that CITY would not have entered into this Agreement if it were to be liable in damages under this Agreement, or with respect to this Agreement or the application thereof. 60 -31-

In general, each of the parties hereto may pursue any remedy at law or equity available for the breach of any provision of this Agreement, except that CITY shall not be liable in damages to OWNER, or to any successor in interest of OWNER, or to any other person, and OWNER covenants not to sue for damages or claim any damages:
(a) For any breach of this Agreement or for any cause of action which arises out of this Agreement; or
(b) For the taking, impairment or restriction of any right or interest conveyed or provided under or pursuant to this Agreement; or
(c) Arising out of or connected with any dispute, controversy or issue regarding the application or interpretation or effect of the provisions of this Agreement.

8.2 Specific Performance. The parties acknowledge that money damages and remedies at law generally are inadequate and specific performance and other nonmonetary relief are particularly appropriate remedies for the enforcement of this Agreement and should be available to all parties for the following reasons:
(a) Money damages are unavailable against CITY as provided in Section 8.1 above.
(b) Due to the size, nature and scope of the project, it may not be practical or possible to restore the Property to its natural condition once implementation of this Agreement has begun. After such implementation, OWNER may be foreclosed from other choices it may have had to utilize the Property or portions thereof. OWNER has invested significant time and resources and performed extensive planning and processing of the Project in agreeing to the terms of this Agreement and will be investing even more significant time and resources in implementing the Project in reliance upon the terms of this Agreement, and it is not possible to determine the sum of money which would adequately compensate OWNER for such efforts.

8.3 Release. Except for nondamage remedies, including the remedy of specific performance and judicial review as provided for in Section 6.5, OWNER, for itself, its successors and assignees, hereby releases the CITY, its officers, agents and employees from any and all claims, demands, actions, or suits of any kind or nature arising out of any liability, known or unknown, present or future, including, but not limited to, any claim or liability, based or asserted, pursuant to Article I, Section 19 of the California Constitution, the Fifth Amendment of the United States Constitution, or any other law or ordinance which seeks to impose any other liability or damage, whatsoever, upon the CITY because it entered into this Agreement or because of the terms of this Agreement.

8.4 Termination or Modification of Agreement for Default of OWNER. Subject to the provisions contained in Subsection 6.3 herein, CITY may terminate or modify this Agreement for any failure of OWNER to perform any material duty or obligation of OWNER under this Agreement, or to comply in good faith with the terms of this Agreement (hereinafter referred to as “default”); provided, however, CITY may terminate 61 -32-

or modify this Agreement pursuant to this Section only after providing written notice to OWNER of default setting forth the nature of the default and the actions, if any, required by OWNER to cure such default and, where the default can be cured, OWNER has failed to take such actions and cure such default within 60 days after the effective date of such notice or, in the event that such default cannot be cured within such 60 day period but can be cured within a longer time, has failed to commence the actions necessary to cure such default within such 60 day period and to diligently proceed to complete such actions and cure such default.

8.5 Termination of Agreement for Default of CITY. OWNER may terminate this Agreement only in the event of a default by CITY in the performance of a material term of this Agreement and only after providing written notice to CITY of default setting forth the nature of the default and the actions, if any, required by CITY to cure such default and, where the default can be cured, CITY has failed to take such actions and cure such default within 60 days after the effective date of such notice or, in the event that such default cannot be cured within such 60 day period but can be cured within a longer time, has failed to commence the actions necessary to cure such default within such 60 day period and to diligently proceed to complete such actions and cure such default.

9. THIRD PARTY LITIGATION.

9.1 General Plan Litigation. CITY has determined that this Agreement is consistent with its Comprehensive General Plan, as such General Plan exists as of the Effective Date (“General Plan”), and that the General Plan meets all requirements of law. OWNER has reviewed the General Plan and concurs with CITY’s determination.

CITY shall have no liability in damages under this Agreement for any failure of CITY to perform under this Agreement or the inability of OWNER to develop the Property as contemplated by the Development Plan of this Agreement as the result of a judicial determination that on the Effective Date, or at any time thereafter, the General Plan, or portions thereof, are invalid or inadequate or not in compliance with law.

9.2 Third Party Litigation Concerning Agreement. OWNER shall defend, at its expense, including attorneys’ fees, indemnify, and hold harmless CITY, its agents, officers and employees from any claim, action or proceeding against CITY, its agents, officers, or employees to attack, set aside, void, or annul the approval of this Agreement or the approval of any permit granted pursuant to this Agreement. CITY shall promptly notify OWNER of any such claim, action or proceeding, and CITY shall cooperate in the defense. If CITY fails to promptly notify OWNER of any such claim, action or proceeding, or if CITY fails to cooperate in the defense, OWNER shall not thereafter be responsible to defend, indemnify, or hold harmless CITY. CITY may in its discretion participate in the defense of any such claim, action or proceeding.

9.3 Indemnity. In addition to the provisions of 9.2 above, OWNER shall indemnify and hold CITY, its officers, agents, employees and independent contractors free and harmless from any liability whatsoever, based or asserted upon any act or omission of OWNER, its officers, agents, employees, subcontractors and independent contractors, for property damage, bodily injury, or death (OWNER’s employees 62 -33-

included) or any other element of damage of any kind or nature, relating to or in any way connected with or arising from the activities contemplated hereunder, including, but not limited to, the study, design, engineering, construction, completion, failure and conveyance of the public improvements, save and except claims for damages arising through the sole active negligence or sole willful misconduct of CITY. OWNER shall defend, at its expense, including attorneys’ fees, CITY, its officers, agents, employees and independent contractors in any legal action based upon such alleged acts or omissions. CITY may in its discretion participate in the defense of any such legal action.

9.4 Environment Assurances. OWNER shall indemnify and hold CITY, its officers, agents, and employees free and harmless from any liability, based or asserted, upon any act or omission of OWNER, its officers, agents, employees, subcontractors, predecessors in interest, successors, assigns and independent contractors for any violation of any federal, state or local law, ordinance or regulation relating to industrial hygiene or to environmental conditions on, under or about the Property, including, but not limited to, soil and groundwater conditions, and OWNER shall defend, at its expense, including attorneys’ fees, CITY, its officers, agents and employees in any action based or asserted upon any such alleged act or omission. CITY may in its discretion participate in the defense of any such action.

9.5 Reservation of Rights. With respect to Sections 9.2, 9.3 and 9.4 herein, CITY reserves the right to either (1) approve the attorney(s) which OWNER selects, hires or otherwise engages to defend CITY hereunder, which approval shall not be unreasonably withheld, or (2) conduct its own defense, provided, however, that OWNER shall reimburse CITY forthwith for any and all reasonable expenses incurred for such defense, including attorneys’ fees, upon billing and accounting therefor.

9.6 Survival. The provisions of this Sections 9.1 through 9.6, inclusive, shall survive the termination of this Agreement.

10. MORTGAGEE PROTECTION.

The parties hereto agree that this Agreement shall not prevent or limit OWNER, in any manner, at OWNER’s sole discretion, from encumbering the Property or any portion thereof or any improvement thereon by any mortgage, deed of trust or other security device securing financing with respect to the Property. CITY acknowledges that the lenders providing such financing may require certain Agreement interpretations and modifications and agrees upon request, from time to time, to meet with OWNER and representatives of such lenders to negotiate in good faith any such request for interpretation or modification. CITY will not unreasonably withhold its consent to any such requested interpretation or modification provided such interpretation or modification is consistent with the intent and purposes of this Agreement. Any Mortgagee of the Property shall be entitled to the following rights and privileges:
(a) Neither entering into this Agreement nor a breach of this Agreement shall defeat, render invalid, diminish or impair the lien of any mortgage on the Property made in good faith and for value, unless otherwise required by law. 63 -34-

(b) The Mortgagee of any mortgage or deed of trust encumbering the Property, or any part thereof, which Mortgagee, has submitted a request in writing to the CITY in the manner specified herein for giving notices, shall be entitled to receive written notification from CITY of any default by OWNER in the performance of OWNER’s obligations under this Agreement.
(c) If CITY timely receives a request from a Mortgagee requesting a copy of any notice of default given to OWNER under the terms of this Agreement, CITY shall provide a copy of that notice to the Mortgagee within ten (10) days of sending the notice of default to OWNER. The Mortgagee shall have the right, but not the obligation, to cure the default during the remaining cure period allowed such party under this Agreement. (d) Any Mortgagee who comes into possession of the Property, or any part thereof, pursuant to foreclosure of the mortgage or deed of trust, or deed in lieu of such foreclosure, shall take the Property, or part thereof, subject to the terms of this Agreement. Notwithstanding any other provision of this Agreement to the contrary, no Mortgagee shall have an obligation or duty under this Agreement to perform any of OWNER’s obligations or other affirmative covenants of OWNER hereunder, or to guarantee such performance; provided, however, that to the extent that any covenant to be performed by OWNER is a condition precedent to the performance of a covenant by CITY, the performance thereof shall continue to be a condition precedent to CITY’s performance hereunder, and further provided that any sale, transfer or assignment by any Mortgagee in possession shall be subject to the provisions of Section 2.4 of this Agreement.

11. MISCELLANEOUS PROVISIONS.

11.1 Recordation of Agreement. This Agreement and any amendment or cancellation thereof shall be recorded with the San Bernardino County Recorder by the City Clerk within the ten (10) days after the CITY executes this Agreement, as required by Section 65868.5 of the Government Code. If the parties to this Agreement or their successors in interest amend or cancel this Agreement as provided for herein and in Government Code Section 65868, or if the CITY terminates or modifies the agreement as provided for herein and in Government Code Section 65865.1 for failure of the applicant to comply in good faith with the terms or conditions of this Agreement, the City Clerk shall have notice of such action recorded with the San Bernardino County Recorder.

11.2 Entire Agreement. This Agreement sets forth and contains the entire understanding and agreement of the parties, and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements which are not contained or expressly referred to herein. No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement.
64 -35-

11.3 Severability. If any term, provision, covenant or condition of this Agreement shall be determined invalid, void or unenforceable, the remainder of this Agreement shall not be affected thereby to the extent such remaining provisions are not rendered impractical to perform taking into consideration the purposes of this Agreement. Notwithstanding the foregoing, the provision of the Public Benefits set forth in Section 4 of this Agreement, including the payment of the fees set forth therein, are essential elements of this Agreement and CITY would not have entered into this Agreement but for such provisions, and therefore in the event such provisions are determined to be invalid, void or unenforceable, this entire Agreement shall be null and void and of no force and effect whatsoever.

11.4 Interpretation and Governing Law. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this Agreement, all parties having been represented by counsel in the negotiation and preparation hereof.

11.5 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement.

11.6 Singular and Plural. As used herein, the singular of any word includes the plural.

11.7 Joint and Several Obligations. Subject to section 2.4, if at any time during the term of this Agreement the Property is owned, in whole or in part, by more than one owner, all obligations of such owners under this Agreement shall be joint and several, and the default of any such owner shall be the default of all such owners.

Notwithstanding the foregoing, no owner of a single lot which has been finally subdivided and sold to such owner as a member of the general public or otherwise as an ultimate user shall have any obligation under this Agreement except as provided under Section 4 hereof.

11.8 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element.

11.9 Waiver. Failure by a party to insist upon the strict performance of any of the provisions of this Agreement by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party’s right to insist and demand strict compliance by the other party with the terms of this Agreement thereafter.

11.10 No Third Party Beneficiaries. This Agreement is made and entered into for the sole protection and benefit of the parties and their successors and assigns. No other person shall have any right of action based upon any provision of this Agreement. 65 -36-

11.11 Force Majeure. Neither party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by floods, earthquakes, other Acts of God, fires, wars, riots or similar hostilities, strikes and other labor difficulties beyond the party’s control, (including the party’s employment force), government regulations, court actions (such as restraining orders or injunctions), or other causes beyond the party’s control. If any such events shall occur, the term of this Agreement and the time for performance by either party of any of its obligations hereunder may be extended by the written agreement of the parties for the period of time that such events prevented such performance, provided that the term of this Agreement shall not be extended under any circumstances for more than five (5) years.

11.12 Mutual Covenants. The covenants contained herein are mutual covenants and also constitute conditions to the concurrent or subsequent performance by the party benefited thereby of the covenants to be performed hereunder by such benefited party.

11.13 Successors in Interest. The burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to, all successors in interest to the parties to this Agreement. All provisions of this Agreement shall be enforceable as equitable servitudes and constitute covenants running with the land. Each covenant to do or refrain from doing some act hereunder with regard to development of the Property: (a) is for the benefit of and is a burden upon every portion of the Property; (b) runs with the Property and each portion thereof; and, (c) is binding upon each party and each successor in interest during ownership of the Property or any portion thereof.

11.14 Counterparts. This Agreement may be executed by the parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the parties had executed the same instrument.

11.15 Jurisdiction and Venue. Any action at law or in equity arising under this Agreement or brought by a party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of San Bernardino, State of California, and the parties hereto waive all provisions of law providing for the filing, removal or change of venue to any other court.

11.16 Project as a Private Undertaking. It is specifically understood and agreed by and between the parties hereto that the development of the Project is a private development, that neither party is acting as the agent of the other in any respect hereunder, and that each party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. No partnership, joint venture or other association of any kind is formed by this Agreement. The only relationship between CITY and OWNER is that of a government entity regulating the development of private property and the owner of such property.

11.17 Further Actions and Instruments. Each of the parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this Agreement and the satisfaction of the 66 -37-

conditions of this Agreement. Upon the request of either party at any time, the other party shall promptly execute, with acknowledgment or affidavit if reasonably required, and file or record such required instruments and writings and take any actions as may be reasonably necessary under the terms of this Agreement to carry out the intent and to fulfill the provisions of this Agreement or to evidence or consummate the transactions contemplated by this Agreement. The City Manager may delegate his powers and duties under this Agreement to an Assistant City Manager or other management level employee of the CITY.

11.18 Eminent Domain. No provision of this Agreement shall be construed to limit or restrict the exercise by CITY of its power of eminent domain.

11.19 Agent for Service of Process. In the event OWNER is not a resident of the State of California or it is an association, partnership or joint venture without a member, partner or joint venturer resident of the State of California, or it is a foreign corporation, then in any such event, OWNER shall file with the Planning Director, upon its execution of this Agreement, a designation of a natural person residing in the State of California, giving his or her name, residence and business addresses, as its agent for the purpose of service of process in any court action arising out of or based upon this Agreement, and the delivery to such agent of a copy of any process in any such action shall constitute valid service upon OWNER. If for any reason service of such process upon such agent is not feasible, then in such event OWNER may be personally served with such process out of this County and such service shall constitute valid service upon OWNER. OWNER is amenable to the process so served, submits to the jurisdiction of the Court so obtained and waives any and all objections and protests thereto. OWNER for itself, assigns and successors hereby waives the provisions of the Hague Convention (Convention on the Service Abroad of Judicial and Extra Judicial Documents in Civil or Commercial Matters, 20 U.S.T. 361, T.I.A.S. No. 6638).

11.20 Estoppel Certificate. Within thirty (30) business days following a written request by any of the parties, the other party shall execute and deliver to the requesting party a statement certifying that (i) either this Agreement is unmodified and in full force and effect or there have been specified (date and nature) modifications to the Agreement, but it remains in full force and effect as modified; and (ii) either there are no known current uncured defaults under this Agreement or that the responding party alleges that specified (date and nature) defaults exist. The statement shall also provide any other reasonable information requested. The failure to timely deliver this statement shall constitute a conclusive presumption that this Agreement is in full force and effect without modification except as may be represented by the requesting party and that there are no uncured defaults in the performance of the requesting party, except as may be represented by the requesting party. OWNER shall pay to CITY all costs incurred by CITY in connection with the issuance of estoppel certificates under this Section 11.20 prior to CITY’s issuance of such certificates.

11.21 Authority to Execute. The person or persons executing this Agreement on behalf of OWNER warrants and represents that he or she/they have the authority to execute this Agreement on behalf of his or her/their corporation, partnership or business 67 -38-

entity and warrants and represents that he or she/they has/have the authority to bind OWNER to the performance of its obligations hereunder.

11.22 Prevailing Wage. OWNER, for itself, its successors, and assigns, agrees, covenants, and warrants that the development of the Property, if any, shall comply with all applicable federal and state labor laws (including, without limitation, the requirement under California law to pay prevailing wages and hire apprentices), and all obligations as set forth herein.

11.22.1 CITY makes no representations concerning prevailing wages in compliance with California Labor Code Section 1770 et seq.

11.22.2 OWNER acknowledges and agrees that it shall be independently responsible for reviewing the applicable laws and regulations with respect to the payment of prevailing wages and complying therewith. OWNER shall bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation of Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law.

11.22.3 The foregoing indemnity shall survive termination of this Agreement and shall continue after completion of the construction and development of the Property by OWNER, its successors or assigns. OWNER shall be solely responsible for determining and effectuating compliance with such laws.

11.22.4 OWNER, ON BEHALF OF ITSELF, ITS SUCCESSORS, AND

ASSIGNS, WAIVES AND RELEASES CITY FROM ANY RIGHT OF ACTION THAT MAY BE AVAILABLE TO OWNER PURSUANT TO LABOR CODE SECTION 1781 OR THE DAVIS BACON ACT. RELATIVE TO THE WAIVER AND RELEASE CONTAINED IN THIS SECTION 11.22, OWNER ACKNOWLEDGES THE PROTECTIONS OF CIVIL CODE SECTION 1542, WHICH READS AS FOLLOWS: A GENERAL RELEASE DOES

NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES

NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF

EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE

MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.

INITIALS. BY INITIALING BELOW, OWNER KNOWINGLY AND VOLUNTARILY WAIVES THE PROVISIONS OF SECTION 1542 SOLELY WITH THE MATTERS WHICH ARE THE SUBJECT OF THE FOREGOING WAIVERS AND RELEASES:
_______________
(Owner's Initials)
68 -39-

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year set forth below.
[SIGNATURES CONTAINED ON FOLLOWING PAGE]
69 -40-

SIGNATURE PAGE
TO DEVELOPMENT AGREEMENT FILE NO. PDA25-004
"OWNER"
SLV LC Center LLC
a Florida limited liability company
HCW LC Center LLC
a Florida limited liability company
Strack Farms Land LLC
a Delaware limited liability company
RHV Edison Ave LLC
a Florida limited liability company
MV Edison Ave LLC
a Florida limited liability company
EPC Holdings 938 LLC
a Washington limited liability company

By: ________________________
John Troutman
Vice President

Date: ___________________
"CITY"

CITY OF ONTARIO
By:

Scott Ochoa
City Manager
Date: ___________________
ATTEST:

City Clerk, Ontario
APPROVED AS TO FORM:

BEST BEST KRIEGER, LLP
City Attorney
70 ACKNOWLEDGEMENT

STATE OF CALIFORNIA )
COUNTY OF____________________ )
On _________________, 20_____, before me,______________________________________, Date Insert Name and Title of the Officer
personally appeared ___________________________________________________________ Name(s) of Signer(s)
____________________________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity, and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature________________________________
Signature of Notary Public
Place Notary Seal Above
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 71 ACKNOWLEDGEMENT

STATE OF CALIFORNIA )
COUNTY OF____________________ )
On _________________, 20_____, before
me__________________________________,
Date Insert Name and Title of the Officer
personally appeared
________________________________________________________ Name(s) of Signer(s)
__________________________________________________________________ ______, who proved to me on the basis of satisfactory evidence to be the person whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity, and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

TO DEVELOPMENT AGREEMENT
Legal Description of Property

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF

ONTARIO, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:

PARCEL 1:

PARCEL A OF LOT LINE ADJUSTMENTS NO. LLA 22-024 RECORDED MAY 10, 2023 AS INSTRUMENT NO. 2023-0113164 OF OFFICIAL RECORDS AND MORE PARTICULARLY DESCRIBED AS FOLLOWS:

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF

ONTARIO COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, BEING

A PORTION OF THE EAST HALF OF THE NORTHEAST QUARTER OF
SECTION 13, TOWNSHIP 2 SOUTH, RANGE 7 WEST, SAN BERNARDINO BASE AND MERIDIAN, MORE PARTICULARLY Y DESCRIBED BELOW:

COMMENCING AT THE NORTHEAST CORNER OF SECTION 13 AS SHOWN ON RECORD OF SURVEY RECORDED IN BOOK 139, PAGES 66 THROUGH 70, RECORDS OF SURVEY OF SAID COUNTY, SAID CORNER ALSO BEING

THE INTERSECTION OF THE CENTERLINES OF SCHAFFER AVENUE AND HAMNER AVENUE; THENCE SOUTH 00°19’17" EAST ALONG THE
CENTERLINE OF HAMNER AVENUE, 30 FOOT HALF WIDTH, A DISTANCE OF 1,987.75 FEET;THENCE SOUTH 89°40'43" WEST TO A POINT IN THE

WESTERLY RIGHT-OF-WAY OF SAID HAMNER AVENUE, A DISTANCE OF

30.00 FEET; THENCE SOUTH 00°19’17" EAST ALONG SAID WESTERLY RIGHT-OF-WAY, A DISTANCE OF 478.19 FEET TO THE TRUE POINT OF BEGINNING; THENCE NORTH 89°58'36" WEST, A DISTANCE OF 277.94 FEET;
THENCE NORTH 00°05'44" WEST, A DISTANCE OF 479.31 FEET TO A

POINT IN THE NORTH LINE OF THE SOUTH HALF OF THE SOUTH HALF OF THE EAST HALF OF THE NORTHEAST QUARTER OF SAID SECTION 13; THENCE NORTH 89°44'35" WEST, A DISTANCE OF 1,016.39 FEET TO THE

NORTHWEST CORNER OF THE SOUTH HALF OF THE SOUTH HALF OF THE EAST HALF OF THE NORTHEAST QUARTER OF SAID SECTION 13; THENCE SOUTH 00°18'27" EAST, ALONG THE WEST LINE OF THE SOUTH

HALF OF THE SOUTH HALF OF THE EAST HALF OF THE NORTHEAST QUARTER OF SAID SECTION 13, A DISTANCE OF 661.14 FEET TO A POINT IN THE CENTERLINE OF EDISON AVENUE;
THENCE SOUTH 89°40'34" EAST, ALONG SAID CENTERLINE, A DISTANCE OF 1,292.62 FEET TO A POINT IN THE WESTERLY RIGHT-OF-WAY OF SAID HAMNER AVENUE; THENCE NORTH 00°19'17" WEST, ALONG SAID
73 WESTERLY RIGHT OF WAY, A DISTANCE OF 184.45 FEET TO THE POINT OF BEGINNING. ALSO EXCEPTING THEREFROM ALL RIGHTS TO

MINERALS, OIL AND HYDROCARBONS, OR GAS LYING BELOW A DEPTH OF 500 FEET, PROVIDED FURTHER THAT GRANTOR SHALL HAVE NO

RIGHTS OF SURFACE ENTRY OR INGRESS OR EGRESS FROM PROPERTY DESCRIBED HEREIN, AS RESERVED IN DEED RECORDED JUNE 14, 1956, IN BOOK 3962, PAGE 569, OFFICIAL RECORDS.

APN: 0218-211-40-0-000
74 EXHIBIT "B"

TO DEVELOPMENT AGREEMENT
Map showing Property and its location
75 EXHIBIT "C"

TO DEVELOPMENT AGREEMENT
Existing Development Approvals
On October 23, 2007 the Planning Commission:
a) Issued Resolution No. PC07-125 recommending City Council certification of the Rich-Haven Specific Plan EIR (SCH#2006051081).
b) Issued Resolution No. PC07-127 recommending to City Council approval of the Rich-Haven Specific Plan (File No. PSP05-004).

On December 4, 2007, the City Council:
a) Issued Resolution No. 2007-145 certifying the Rich-Haven Specific Plan EIR (SCH#2006051081).
b) Adopted Ordinance No. 2884 approving the Rich-Haven Specific Plan.

On February 23, 2016, the Planning Commission:
a) Issued Resolution No. PC16-003 recommending City Council adoption of an Addendum to the Rich-Haven Specific Plan EIR (SCH#2006051081) and The Ontario Plan EIR (SCH#2008101140).
b) Issued Resolution PC16-004 recommending approval of the Rich-Haven Specific Plan Amendment (File No. PSPA16-001).

On March 15, 2016, the City Council:
a) Issued Resolution No. 2016-024 for the adoption of an Addendum (File No. PSPA16-001) to the Rich-Haven Specific Plan EIR.
b) Issued Resolution No. 2016-025 approving an Amendment (File No.

PSPA16-001) to the Rich-Haven Specific Plan EIR (SCH#2006051081) and The Ontario Plan EIR (SCH#2008101140).

On January 23, 2018, the Planning Commission:
a) Issued Resolution No. PC18-014 recommending City Council adoption of an Addendum to The Ontario Plan EIR (SCH#2008101140).
b) Issued Resolution No. PC18-015 recommending City Council adoption of the Rich-Haven Specific Plan Amendment (File No. PSPA16-005).

On February 20, 2018, the City Council:
a) Issued Resolution No. 2018-017 for the adoption of an Addendum (File No. PSPA16-005) to The Ontario Plan EIR (SCH#2008101140). b) Issued Resolution No. 2018-018 approving an Amendment (File No.

PSPA16-005) to the Rich-Haven Specific Plan.

On May 23, 2023, the Planning Commission:
76 a) Issued Resolution No. PC23-042 recommending City Council adoption of an Environmental Impact Report (State Clearinghouse No. 2022100425) in conjunction with File No. PSPA22-001 for the Rich Haven Specific Plan Amendment.
b) Issued Resolution No. PC23-043 recommending City Council adoption of the Rich-Haven Specific Plan Amendment (File No. PSPA22-001).

On June 20,2023, the City Council:
a) Issued Resolution No. 2023-060 approving an Environmental Impact Report (State Clearinghouse No. 2022100425) in conjunction with File No.

PSPA22-001 for the Rich Haven Specific Plan Amendment.
b) Issued Resolution No. 2023-061 approving the Rich-Haven Specific Plan Amendment (File No. PSPA22-001).
77 EXHIBIT "D"

TO DEVELOPMENT AGREEMENT
Existing Land Use Regulations
These documents are listed for reference only:

1. The Rich-Haven Specific Plan (File No. PSP05-004) Environmental Impact Report, Resolution No. 2007-145.

2. The Rich-Haven Specific Plan (File No. PSP05-004), Ordinance No. 2884.

3. Addendum to the Rich-Haven Specific Plan (File No. PSPA16-001) Environmental Impact Report, Resolution No. 2016-024.

4. Amendment to the Rich-Haven Specific Plan (File No. PSPA16-001), Resolution No. 2016-025.

5. Addendum to the Rich-Haven Specific Plan (File No. PSPA16-005) Environmental Impact Report, Resolution No. 2018-017.

6. Amendment to the Rich-Haven Specific Plan (File No. PSPA16-005), Resolution No. 2018-018.

7. The Rich-Haven Specific Plan Amendment (File No. PSP22-001) Environmental Impact Report (State Clearinghouse No. 2022100425), Resolution No. 2023-060.

8. Amendment to the Rich-Haven Specific Plan (File No. PSPA22-001), Resolution No. 2023-061.

9. City of Ontario Municipal Code
a. Six – Sanitation & Health
b. Seven – Public Works
c. Eight – Building Regulations
d. Nine – Development Code
e. Ten – Parks & Recreation
78 EXHIBIT "E"

TO DEVELOPMENT AGREEMENT
Description of Required Infrastructure Improvements
OWNER shall design, construct, and complete the following Street (ST), Sewer (SW), Storm Drain (SD), Potable Water (PW), Recycled Water (RW), and Fiber Optic (FO) improvements, prior to OWNER’s request for building permits for Production Units.

STREETS (ST)
a. Last lane improvements on Hamner Avenue along the project frontage b. Last lane improvements on Hamner Avenue along the N.A.P. (218-211- 41) parcel.
c. East side of Clifton Avenue improvements, including chockers, ADA curb ramps, and sidewalk.

FIBER OPTICS (FO)
a. FO improvements on ‘D’ Street from Ladybug Paseo to ‘A’ Street b. FO improvements on A’ Street from ‘B’ Street to ‘D’ Street c. FO improvements on ‘B’ Street from the northern to southern project boundaries
d. FO improvements on ‘C’ Street from ‘B’ Street to ‘D’ Street e. FO improvements on Ladybug Paseo from Orchid Paseo to Hamner Avenue
f. FO improvements on Hamner Avenue along the project frontage

SEWER (SW)
a. SW improvements on ‘A’ Street from Clifton Avenue to ‘D’ Street b. SW improvements on ‘B’ Street from the northern to southern project boundaries
c. SW improvements on ‘C’ Street from ‘B’ Street to ‘D’ Street d. SW improvements on Orchid Paseo extending north in ‘D’ Street to south of ‘A’ Street
e. Proposed SW required to support project in Clifton Avenue, to Eucalyptus Avenue, to Mill Creek Avenue, to point of accepted SW in Bellegrave Avenue
79 f. Proposed SW required to support project in Orchid Paseo continuing downstream within TM-20451, to Clifton Avenue, to Eucalyptus Avenue, to Mill Creek Avenue, to point of accepted SW in Bellegrave Avenue

POTABLE WATER (PW)
a. PW improvements on ‘D’ Street from Ladybug Paseo to ‘C’ Street b. PW improvements on ‘A’ Street from ‘D’ Street to Clifton Avenue c. PW improvements on ‘B’ Street from the northern to southern project boundaries
d. PW improvements on ‘C’ Street from ‘B’ Street to ‘D’ Street e. Proposed PW is required to support project in Clifton Avenue connecting to Almond Blossom Street, to Mill Creek Avenue, to the point of accepted PW in Ontario Ranch Road.
f. Proposed PW is required to support project in Ladybug Paseo to the point of Accepted PW in Hamner Avenue

RECYCLED WATER (RW)
a. Proposed RW is required to support project in Ladybug Paseo to the point of Accepted RW in Hamner Avenue

STORM DRAIN (SD)
a. SD improvements on ‘A’ Street from ‘B’ Street to ‘D’ Street b. SD improvements on ‘C’ Street from ‘B’ Street to ‘D’ Street c. SD improvements on ‘D’ Street from ‘C’ Street to Ladybug Paseo d. SD improvements within PUE from ‘D’ Street to Hamner Avenue 80 EXHIBIT “F”

TO DEVELOPMENT AGREEMENT
Depiction of Required Infrastructure Improvements
(SEE ATTACHED EXHBITS)
81 82
EXHIBIT "G"

TO DEVELOPMENT AGREEMENT

FORM OF CERTIFICATE OF NET MDD AVAILABILITY
Pursuant to Section ___ of this Agreement between the City of Ontario, a California municipal corporation, and ________________, a __________________ company, hereinafter called "OWNER", the terms and definitions of which are hereby incorporated herein by this reference and hereinafter called "Agreement", the City of Ontario hereby certifies based on CITY receipt of payment of OWNER’s share of the funding for the Phase 2 Water Improvements, that OWNER is entitled to the following Net MDD Water Availability.

Amount of Net MDD _________________________ gpm
________________________________________
Scott Ochoa, City Manager
Dated:_________________________________
83 EXHIBIT “H”

TO DEVELOPMENT AGREEMENT

FORM OF CERTIFICATE OF REGIONAL DIF CREDIT
Pursuant to Section 4.5.2 of this Agreement by and between the City of Ontario and ____________________, dated _______________, 202_, the terms and definitions of which are hereby incorporated herein by this reference and hereinafter called the “Development Agreement’, the City of Ontario hereby certifies that OWNER is entitled to the following amount and nature of DIF Credits in the Regional Water DIF Infrastructure Category:

Amount of Credit: $
Scott Ochoa, City Manager
Dated:
84 Exhibit “I-1”

ONTARIO RANCH

WATER SUPPLY PHASING PLAN
Phase 2 Water
Availability
Equivalency
Estimated
Net MDD Available1
Phase 2 A
Supply & Storage

1. 1 - Additional Ground Water Well and Collection lines - Design and Construction
8,250 gpm2 7,750 gpm2
Pipelines (Transmission & Distribution)2

2. 925 Zone Transmission lines – Design and Construction

3. Temporary Pressure Reducing Station3 – Design and
Construction
Phase 2B
Supply & Storage

4. 1 – Additional Ground Water Well and Collection lines – Design and Construction

5. 1 – 6 million gallon Reservoir – 925 Zone – Design and Construction
10,500 gpm2 9,860 gpm2
(1) Upon Completion of the construction of all of the improvements described for each Phase a Certificate of Net MDD Availability shall be issued to Developer for the corresponding amount of Net MDD. Net MDD means the maximum daily demand on the potable water supply, net of the water requirements for public schools and parks. The Water Availability Equivalency includes the estimated requirements for public schools and parks. The amount of Net MDD specified is the cumulative amount for which building permits may be issued upon funding of the corresponding and all preceding Phases of improvements.
(2) The ability of a particular development to utilize Net MDD assigned to it by the Developer will require the completion of design and construction of Master-planned potable and recycled water transmission and distribution pipelines for the respective pressure zone. Other factors may include its location, the particular land use and Water Availability Equivalents assigned to it as specified in Exhibit C2. (3) Pressure reducing stations are a component of the pipeline transmission and distribution system. 85 EXHIBIT “I-2”
Available Water Supply - See Exhibit C-1R for Net MDD Available Table A - Water Demand Equivalents By Land Use
Water
Demand
Equivalents
(WDE)2
Recycled
Water
Demand
Factor1
(ADD)
Recycled
Water
Demand Of
Total Water
Demand
(gpd/du) (gpd/ac) (gpm/unit) (gpd/ac) (%)
Detached Dwellings (less than 5 units per acre) 544 0.57 900 28% Detached or Attached Dwellings (between 5 and 11 units per acre) 464 0.48 1,000 21% Attached Dwellings (between 11 and 25 units per acre) 323 0.34 1,500 18% High Density Dwellings (25+ units per acre) 152 0.16 1,500 27% Commercial Lodging 150 0.16 1,700 50%
Retail/Services Uses 2,200 2.29 2,300 51%
Office Uses 3,400 3.54 2,300 40%
Business Park Uses 2,200 2.29 2,200 50%
Industrial Uses 2,000 2.08 2,200 52%
Institutional Use 2,200 2.29 1,600 42%
Parks 1,000 1.04 1,400 58%
Schools 3,500 3.65 1,600 31%
Table B - Example Water Supply Calculation
Land Use Residential
Units
WDE Factor
(gpm)
Potable
MDD
(gpm)
Development
Detached Dwellings (less than 5 units per acre) 5,061 0.57 2,868 Detached or Attached Dw ellings (betw een 5 and 11 units per acre) 2,530 0.48 1,223 Attached Dwellings (between 11 and 25 units per acre) 3,410 0.34 1,147 Retail/Services Uses (per acre)2 2.29 239
TOTAL 11,001 5,477
Three (3) Wells Are required to Support this example, assuming each w ell produces 2,000 gpm and connection to the Recycled Water System maximizing Recycled Water Use. 1 Residential Acres are estimated based on the w eighted average derived from the average number of units per land use category. 2 Commercial acreage is calculated from a total square footage of 1,361,000 SF w ith an average Floor to Area Ratio (FAR) of 0.30 for commercial services in The Ontario Plan. 1Recycled Water Demands include irrigation for right-of-w ay (medians and parkw ays), neighborhood edge, pocket parks, and common areas.

The Ontario Plan Potable Water Recycled Water
Land Use
1,428
166
194 202
1,950
1,284
Acres1
(gross)
104
369
803
Recycled
Water ADD
(gpm)
Water Demand Factor
(ADD)
256
2 The WDE is based on the Maximum Day Demand (MDD) w ith a peaking factor of 1.5 in the NMC for all land use categories. 86 Exhibit “J”
Form of Plume Disclosure Letter
87 Department: Financial Services
Prepared By: Cruz Torres
Staff Member Presenting: Armen Harkalyan,
Executive Director of Finance
Reviewed By: Matthew Hernandez, Claudia
Hernandez
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 4
SUBJECT: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA,

LEVYING SPECIAL TAXES WITHIN CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 77 (THE RESORT AT ONTARIO RANCH FACILITIES)

CITY OF ONTARIO
Agenda Report
June 16, 2026
SECTION:

CONSENT CALENDAR
RECOMMENDATION: That the City Council adopt an Ordinance authorizing the levy of special taxes within City of Ontario Community Facilities District No. 77 (The Resort at Ontario Ranch Facilities).

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: Mello-Roos financing in The Resort at Ontario Ranch Facilities residential development is projected to generate approximately $11.5 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 on 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 June 2, 2026, the City Council adopted a Resolution of Formation of Community Facilities District No. 77 (The Resort at Ontario Ranch Facilities); 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 which the qualified electors of the Community Facilities District approved said 88 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. 77 (The Resort at Ontario Ranch Facilities).

The Resort at Ontario Ranch is a residential development project on approximately 18.19 gross acres, located south of Eucalyptus Avenue, north of Parkview Street, east of Haven Avenue, and west of Cleveland Avenue. At build-out, the project is expected to include a total of 331 residential units consisting of 116, 3-story attached homes, 100, 2-story detached homes, and 115, 3-story detached homes.
89 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. 77 (THE RESORT AT
ONTARIO RANCH FACILITIES).

WHEREAS, on April 7, 2026, 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. 77 (The Resort at Ontario Ranch Facilities) and to Authorize the Levy of a Special Tax Therein,” stating its intention to establish City of Ontario Community Facilities District No. 77 (The Resort at Ontario Ranch Facilities) (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 June 2, 2026, 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. 77 (The Resort at Ontario Ranch Facilities), 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. 77 (The Resort at Ontario Ranch Facilities) 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. 77 (The Resort at Ontario Ranch Facilities),” 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 June 2, 2026, 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;
90 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 2026-27 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 16th day of June 2026. _____________________________________
PAUL S. LEON, MAYOR
91 ATTEST:
_________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
_________________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY
92 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. 3335 was duly introduced at a regular meeting of the City Council of the City of Ontario held June 2, 2026 and adopted at the regular meeting held June 16, 2026 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. 3335 duly passed and adopted by the Ontario City Council at their regular meeting held June 16, 2026, and that Summaries of the Ordinance were published on June 9, 2026 and June 23, 2026, in the Inland Valley Daily Bulletin newspaper.
__________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
93 Department: Records Management
Prepared By: Claudia Y Isbell
Staff Member Presenting: Claudia Y. Isbell,
Assistant City Clerk
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 5
SUBJECT: RESOLUTIONS TO CALL AND GIVE NOTICE, CONSOLIDATE AND ADOPT

REGULATIONS FOR CANDIDATE STATEMENTS FOR THE GENERAL MUNICIPAL ELECTION OF NOVEMBER 3, 2026

CITY OF ONTARIO
Agenda Report
June 16, 2026
SECTION:

CONSENT CALENDAR
RECOMMENDATION: That the City Council adopt the following Resolutions:

A. A Resolution to call and set the date for the General Municipal Election as November 3, 2026; B. A Resolution to request the San Bernardino County Registrar of Voters to consolidate the election with the General Election; and
C. A Resolution establishing regulations pertaining to Candidate Statements THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Operate in a Businesslike Manner
FISCAL IMPACT: The cost of the election services to be provided by the County of San Bernardino is anticipated to be around $250,000. Appropriations are included in the Fiscal Year 2026-2027 adopted budget. Increases to appropriations for election costs will be added at a future quarterly budget update, as necessary.

BACKGROUND & ANALYSIS: California Government Code provides that general law cities conduct elections every two years for the purpose of electing their public officials. On July 21, 1987, the City Council adopted Ordinance No. 2392 providing for consolidation of general municipal elections with the state's General Elections. On November 3, 2026, the community will be asked to elect one Member of the City Council representing District 2, one Member of the City Council representing District 3, and one Mayor at large.

The proposed Resolutions are required by the California Elections Code and cover the options available for the translation, printing, and payment for candidate statements. In past elections, candidates have had the option of submitting a candidate statement for inclusion in the voter information pamphlet. State law also requires that a Spanish language translation of each candidate statement be included in the voter information pamphlet. Additionally, Election Code Section 13307(a)(1) allows the governmental body of a local agency to determine either a 200 or 94 400 word limitation for candidate statements. Consistent with past City Council elections, Staff is recommending a 400 word count limitation for candidate statements. The cost of translation and printing of candidate statements has historically been the responsibility of the candidates. These costs vary each election based on a number of factors including; actual printing costs, the number of candidate statements submitted, and the number of registered voters. The final cost for translating, printing and publishing a 400 word candidate statement for this year's election is currently under purview of the County. An estimate for this cost will be collected from the candidates and subsequently reconciled after the County confirms final costs.

Staff recommends that the City Council adopt the proposed Resolutions necessary for the General Municipal Election on November 3, 2026.
95 RESOLUTION NO. _______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ONTARIO, CALIFORNIA, CALLING FOR THE HOLDING OF A GENERAL

MUNICIPAL ELECTION TO BE HELD ON TUESDAY,
NOVEMBER 3, 2026, FOR THE ELECTION OF CERTAIN OFFICERS AS

REQUIRED BY THE PROVISIONS OF THE LAWS OF THE STATE OF
CALIFORNIA RELATING TO GENERAL LAW CITIES.

WHEREAS, under the provisions of the laws relating to general law cities in the State of California, a General Municipal election shall be held on November 3, 2026, for the election of Municipal Officers.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF

ONTARIO, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. That pursuant to the requirements of the laws of the State of California relating to General Law Cities, there is called and ordered to be held in the City of Ontario, California, on Tuesday, November 3, 2026, a General Municipal Election for the purpose of electing one (1) Member of the City Council representing District 2 for the full term of four years; one (1) Member of the City Council representing District 3 for the full term of four years; and one (1) Mayor for the full term of four years.

SECTION 2. That the ballots to be used at the election shall be in form and content as required by law.

SECTION 3. That the City Clerk is authorized, instructed and directed to coordinate with the County of San Bernardino Registrar of Voters to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election.

SECTION 4. That the vote center locations and hours of operations, ballot drop box locations and hours of operations, vote-by-mail procedures and timing, the election officers, and all other persons and procedures for the General Municipal Election shall be the same as those utilized by the County of San Bernardino and in compliance with the Elections Code of the State of California.

SECTION 5. That all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections.

SECTION 6. That notice of the time and place of holding the election is given and the City Clerk is authorized instructed and directed to give further or additional notice of the election, in time, form and manner as required by law. 96 SECTION 7. That in the event of a tie vote (if any two or more persons receive an equal and the highest number of votes for an office) as certified by the San Bernardino County Registrar of Voters, in accordance with Election Code §15651 (a) shall set a date and time and place and summons the candidates who have received the tie votes to appear and will determine the tie by lot.

SECTION 8. The City Council authorizes the San Bernardino Registrar of Voters to canvass and certify the results of the election to be presented to the Ontario City Council for ratification.

SECTION 9. The City Council authorizes the City Clerk or her designee to administer said election and all reasonable and actual election expenses shall be paid by the City upon presentation of a properly submitted bill.

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

PASSED, APPROVED, AND ADOPTED this 16
th day of June 2026.
_____________________________________
PAUL S. LEON, MAYOR
ATTEST:
__________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
__________________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY
97 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. 2026- __ was duly passed and adopted by the City Council of the City of Ontario at their regular meeting held June 16, 2026, by the following roll call vote, to wit:

AYES: MAYOR/COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
The foregoing is the original of Resolution No. 2026-_____ duly passed and adopted by the Ontario City Council at their regular meeting held June 16, 2026. _____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
98 RESOLUTION NO. _______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ONTARIO, CALIFORNIA, REQUESTING THE BOARD OF

SUPERVISORS OF THE COUNTY OF SAN BERNARDINO TO

CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE HELD ON
TUESDAY, NOVEMBER 3, 2026 WITH THE STATEWIDE GENERAL
ELECTION, PURSUANT TO §10403 OF THE ELECTIONS CODE.

WHEREAS, the City Council of the City of Ontario has called a General Municipal Election to be held on November 3, 2026, for the purpose of the election of one (1) Member of the City Council representing District 2, one (1) Member of the City Council representing District 3, and one (1) Mayor; and
WHEREAS, it is desirable that the General Municipal Election be consolidated with the Statewide General Election to be held on the same date and that within the City the precincts, polling places and election officers of the two elections be the same and that the county election department of the County of San Bernardino canvass the returns of the General Municipal Election and that the election be held in all respects as if there were only one election.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF

ONTARIO, CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. That pursuant to the requirements of §10403 of the Elections Code, the Board of Supervisors of the County of San Bernardino is here by requested to consent an agree to the consolidation of a General Municipal Election with the Statewide General Election to be held on Tuesday, November 3, 2026 for the purpose of the election of one (1) Member of the City Council representing District 2, one (1) Member of the City Council representing District 3, and one (1) Mayor for a term of office which ends November, 2030.

SECTION 2. That the county election department is authorized to canvass the returns of the General Municipal Election. The election shall be held in all respects as if there were only one election, and shall be in the form and content as required by law.

Pursuant to §10418 of the Elections Code, the election will be held and conducted in accordance with the provisions of law regulating the statewide election.

SECTION 3. That the Board of Supervisors is requested to issue instructions to the county election department to take any and all steps necessary for the holding of the consolidated election.

SECTION 4. That the City of Ontario recognizes that additional costs will be incurred by the County by reason of this consolidate and agrees to reimburse the County for any costs.
99 SECTION 5. That the City Clerk is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the county election department of the County of San Bernardino.

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

PASSED, APPROVED, AND ADOPTED this 16
th day of June 2026.
_____________________________________
PAUL S. LEON, MAYOR
ATTEST:
____________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
_______________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY
100

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. _______ was duly passed and adopted by the City Council of the City of Ontario at their regular meeting held June 16, 2026 by the following roll call vote, to wit:

AYES: MAYOR/COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
The foregoing is the original of Resolution No. _______ duly passed and adopted by the Ontario City Council at their regular meeting held June 16, 2026. _____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
101
RESOLUTION NO. _______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ONTARIO, CALIFORNIA, ADOPTING REGULATIONS FOR
CANDIDATES FOR ELECTIVE OFFICE PERTAINING TO CANDIDATE’S

STATEMENTS SUBMITTED TO THE VOTERS AT AN ELECTION TO BE HELD ON TUESDAY, NOVEMBER 3, 2026.

WHEREAS, §13307 of the Elections Code of the State of California provides that the governing body of any local agency adopt regulations pertaining to materials prepared by any candidate for a municipal election, including costs of the candidate’s statement.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF

ONTARIO, CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. General Provisions. That pursuant to §13307 and 13308 of the Elections Code of the State of California, each candidate for elective office to be voted for at an Election to be held in the City of Ontario on November 3, 2026 may prepare a candidate’s statement on an appropriate form provided by the City Clerk’s office. The statement may include the name, age and occupation of the candidate and a brief description of no more than 400 words of the candidate’s education and qualifications expressed by the candidate himself or herself. The statement shall not include party affiliation of the candidate, nor membership or activity in partisan political organizations.

In addition, the statement shall be limited to a recitation of the candidate’s own personal background and qualifications and shall not in any way make reference to other candidates for that office or to another candidate’s qualifications, character, or activities.

The statement shall be filed electronically in typewritten form to the office of the City Clerk at the time the candidate’s nomination papers are filed. The statement may be withdrawn, but not changed, during the period for filing nomination papers and until 5:00 p.m. of the next working day after the close of the nomination period.

SECTION 2. Foreign Language Policy.

A. Pursuant to the Federal Voting Rights Act, candidate’s statements will be translated into the languages required by the County of San Bernardino.

The county is required to translate candidate’s statements into the following language: Spanish.

B. The County will mail separate voter information guides and candidate’s statements in Spanish to only those voters who are on the county voter file as having requested a voter information guide in Spanish. The county will also make the voter information guides and candidate’s statements in Spanish available at all polling places on the County’s website and in the Election Official’s office.
102
SECTION 3. Payment.

A. Translation. The candidate shall be required to pay for the cost of translating the candidate’s statement into any required foreign language as specified in (A) or (B) of Section 2 above pursuant to Federal and/or State law.

B. Printing.

1. The candidate shall be required to pay for the cost of printing the candidate’s statement in English in the main voter pamphlet.

2. The candidate shall be required to pay for the cost of printing the candidate’s statement in a foreign language required in (A) of Section 2 above in the main voter pamphlet.

SECTION 4. Miscellaneous.

A. All translations shall be provided by professionally certified translators.

B. The City Clerk’s office shall not allow bold type, underlining, capitalizations, indentations, bullets, or leading hyphens.

C. The City Clerk’s office shall comply with all recommendations and standards set forth by the California Secretary of State regarding occupational designations and other matters relating to elections.

SECTION 5. Additional Materials. No candidate will be permitted to include additional materials in the voter information guide.

SECTION 6. The City Clerk’s office shall provide each candidate or the candidate’s representative a copy of this Resolution at the time nomination petitions are issued.

SECTION 7. That all previous resolutions establishing council policy on payment for candidate’s statements are repealed.

SECTION 8. That this Resolution shall apply only to the election to be held on November 3, 2026 and shall then be repealed.

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

PASSED, APPROVED, AND ADOPTED this 16
th day of June 2026.
_____________________________________
PAUL S. LEON, MAYOR
103
ATTEST:
____________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
____________________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY
104

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. ________ was duly passed and adopted by the City Council of the City of Ontario at their regular meeting held June 16, 2026 by the following roll call vote, to wit:

AYES: MAYOR/COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
The foregoing is the original of Resolution No. ________ duly passed and adopted by the Ontario City Council at their regular meeting held June 16, 2026. _____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
105
Department: Financial Services
Prepared By: Cruz Torres
Staff Member Presenting: Armen Harkalyan,
Executive Director of Finance
Reviewed By: Matthew Hernandez, Claudia
Hernandez
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 6
SUBJECT: ANNUAL LEVY OF ASSESSMENTS WITHIN ONTARIO PARKWAY MAINTENANCE ASSESSMENT DISTRICT NOS. 1, 2, 3, AND 4 FOR FISCAL YEAR 2026-27

CITY OF ONTARIO
Agenda Report
June 16, 2026
SECTION:

CONSENT CALENDAR
RECOMMENDATION: That the City Council adopt:

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Operate in a Businesslike Manner
Focus Resources in Ontario's Commercial and Residential Neighborhoods FISCAL IMPACT: As proposed, the assessment revenue will generate approximately $690,838 from OPMAD Nos. 1, 2, 3, and 4 for Fiscal Year 2026-27. For OPMAD Nos. 1, 2, 3 (Zone 2000-1) the total estimated cost of $665,062 for administrative, operation and maintenance will exceed the assessment revenues of $264,555 (maximum assessment) by $400,507. If approved, appropriations in the General fund will be included in future Annual Budgets to City Council for approval as needed for the City Contribution to Parkway Maintenance. The assessment revenues for OPMAD No. 3 (Zone 2000-2) and OPMAD No. 4 are sufficient to pay all expenses within the district.

BACKGROUND & ANALYSIS: The first of these districts was formed in 1976 pursuant to the Landscaping and Lighting Act of 1972 (the 1972 Act). Additional territories are annexed to the districts from time to time as development proceeds. The districts were formed to help minimize 106
the continually increasing cost of maintaining and operating the landscaping along public streets where the property owners do not have direct access to the landscaping. An assessment is levied annually on benefiting properties for the cost of operation and maintenance of certain parkway landscaping facilities within the districts. The City’s Public Works Agency establishes the annual operation, and maintenance costs and administers the maintenance of the landscaping. Annually, an Engineer’s Report for each district must be prepared which apportions these costs to each parcel within the districts. The locations of the districts are shown on the maps included in the Engineer's Reports.

OPMAD Nos. 1, 2, and 3 are comprised of single-family residential developments. Due to varying characteristics, the districts are organized into benefit zones and/or maintenance areas. Each zone/maintenance area is assessed for only the operation and maintenance of the facilities from which it receives special direct benefit. The total assessment for each maintenance area is then apportioned to its constituent parcels. The assessment revenue from OPMAD Nos. 1, 2, and 3 will generate a combined amount of $289,488. In addition, a transfer-out will be included from OPMAD No. 3 (Zone 2000-2) reserve fund in the amount of $18,046 to cover expenses within the district.

The assessed tax rates for Fiscal Year 2025-26, and the proposed and maximum tax rates for Fiscal Year 2026-27, are shown in Exhibit A.

OPMAD No. 4 is comprised of single-family residential tracts and the Ontario Mills development area. The district is organized into 6 maintenance areas. Each maintenance area is assessed for only the operation and maintenance of the facilities from which it receives direct special benefit. The total assessment for each maintenance area is then apportioned to its constituent parcels. The assessments for OPMAD No. 4 will generate a total of $401,350. The assessed tax rates for Fiscal Year 2025-26, and the maximum and proposed tax rates for Fiscal Year 2026-27, are shown in Exhibit A.

Pursuant to the 1972 Act, Engineer’s Reports have been prepared for each district and are on file with the Records Management Department. Each report includes plans and specifications for the improvements and maintenance, an estimate of costs, a diagram of the area proposed to be assessed (boundary and inventory maps), and an assessment of the costs to the various parcels within each district.

A public hearing is required for each district prior to adoption of the proposed assessments. A combined public hearing will be held on July 21, 2026. Following consideration of all public comments and written protests at a noticed public hearing and review of the Engineer's Reports, the City Council may order amendments to the Reports or confirm the Reports as submitted. At the conclusion of the public hearing, the City Council will consider adoption of Resolutions confirming the assessments and ordering the levy of the assessments for Fiscal Year 2026-27. Notice of the public hearing for the levy of assessments will be published in the local newspaper, in accordance with the applicable statutes.
107
Prior Year Maximum
2025-26 2026-27
OPMAD No. 1 $ 66.32 per Lot $ 66.32 per Lot $ 66.32 per Lot OPMAD No. 2 $ 34.04 per Lot $ 34.04 per Lot $ 34.04 per Lot OPMAD No. 3, Zone 2000-1 $ 41.29 per Lot $ 41.29 per Lot $ 41.29 per Lot OPMAD No. 3, Zone 2000-2 $ 213.72 per Lot $ 312.85 per Lot $ 220.65 per Lot Prior Year Maximum
2025-26 2026-27
MA#99-1 $ 63.81 per Lot $ 76.12 per Lot $ 65.88 per Lot MA#99-2 $ 415.76 per Lot $ 480.18 per Lot $ 429.23 per Lot MA#99-3 $ 1,291.87 per Acre $ 1,724.18 per Acre $ 1,333.72 per Acre MA#00-1 $ 303.69 per Lot $ 472.91 per Lot $ 313.53 per Lot MA#04-1 $ 1,221.60 per Lot $ 3,012.37 per Lot $ 1,261.18 per Lot MA#05-1 $ 1,678.31 per Lot $ 3,733.99 per Lot $ 1,732.69 per Lot Proposed
2026-27
Exhibit A
Ontario Parkway Maintenance Assessment Districts 1, 2 & 3 Proposed Levy Rates FY 2026-27
Ontario Parkway Maintenance Assessment District 4
Proposed Levy Rates FY 2026-27
Proposed
2026-27
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
RESOLUTION NO. ________

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

CALIFORNIA, ORDERING THE PREPARATION OF THE ASSESSMENT
ENGINEER’S REPORTS PURSUANT TO THE PROVISIONS OF DIVISION 15, PART 2, OF THE STREETS AND HIGHWAYS CODE OF THE STATE

OF CALIFORNIA, FOR PROCEEDINGS FOR THE ANNUAL ASSESSMENT

LEVY WITHIN ONTARIO PARKWAY MAINTENANCE ASSESSMENT
DISTRICTS NO. 1, 2, 3 AND 4 FOR FISCAL YEAR 2026-27.

WHEREAS, the City Council of the City of Ontario, California, previously formed maintenance districts pursuant to the terms and provisions of the “Landscaping and Lighting Act of 1972,” being Division 15, Part 2, of the Streets and Highways Code of the State of California (the “1972 Act”), known and designated as

CITY OF ONTARIO
PARKWAY MAINTENANCE ASSESSMENT DISTRICTS NO. 1, 2, 3 AND 4 (the “Districts”); and
WHEREAS, at this time the City Council desires to initiate proceedings to provide for the annual levy of assessments for the ensuing fiscal year to provide for the annual costs for maintenance of improvements within the Districts; and WHEREAS, the proceedings for the annual levy of assessments shall relate to the fiscal year commencing July 1, 2026, and ending June 30, 2027; and WHEREAS, there has been submitted to this City Council for its consideration at this time, maps showing the boundaries of the area affected by the levy of the assessment for the above-referenced fiscal year, and inventory maps showing and describing in general the works of improvement proposed to be maintained in said Districts, said description being sufficient to identify the works of improvement and the areas proposed to be assessed for said maintenance thereof.

NOW, THEREFORE, IT IS HEREBY RESOLVED as follows:

SECTION 1. That the above recitals are all true and correct.

SECTION 2. That the maps entitled

CITY OF ONTARIO
PARKWAY MAINTENANCE ASSESSMENT DISTRICTS NO. 1, 2, 3 AND 4

BOUNDARY AND INVENTORY MAPS
attached hereto, as submitted to this City Council, showing the boundaries of the proposed areas to be assessed and showing the works of improvement to be maintained, are hereby approved, and a copy thereof shall be on file in the Records Management Department and open to public inspection. The parcels and properties within said area are those proposed to be assessed to pay the costs and expenses for said maintenance work. 126
SECTION 3. That the proposed maintenance work within the area proposed to be assessed shall be for certain landscaping and appurtenant improvements, as said maintenance work is set forth in the Engineer’s Reports to be presented to this City Council for consideration.

SECTION 4. That the Assessment Engineer, Willdan Financial Services, is hereby ordered to prepare and file with this City Council the Assessment Engineer’s Reports relating to said annual assessment and levy in accordance with the provisions of 1972 Act, Article XIII D of the Constitution of the State of California (“Article XIIID”), and the Proposition 218 Omnibus Implementation Act (Government Code Section 53750 and following) (the “Implementation Act”) (the 1972 Act, Article XIII D and the Implementation Act are referred to collectively as the “Assessment Law”).

SECTION 5. That upon completion, said Assessment Engineer’s Reports shall be filed with the City Clerk, who shall then submit the same to this City Council for its consideration pursuant to the Assessment Law.

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

PASSED, APPROVED, AND ADOPTED this 16
th day of June 2026.
_____________________________________
PAUL S. LEON, MAYOR
ATTEST:
____________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
____________________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY
127

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. 2026- was duly passed and adopted by the City Council of the City of Ontario at their regular meeting held June 16, 2026 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. 2026- duly passed and adopted by the Ontario City Council at their regular meeting held June 16, 2026. _____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
128
RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING THE ASSESSMENT ENGINEER’S

REPORTS FOR THE ANNUAL LEVY OF ASSESSMENTS WITHIN
ONTARIO PARKWAY MAINTENANCE ASSESSMENT DISTRICTS NO. 1, 2, 3 AND 4 FOR FISCAL YEAR 2026-27.

WHEREAS, the City Council of the City of Ontario, California, pursuant to the provisions of Division 15, Part 2, of the Streets and Highways Code of the State of California (the “1972 Act”), Article XIII D of the Constitution of the State of California (“Article XIII D”), and the Proposition 218 Omnibus Implementation Act (Government Code Section 53750 and following) (the “Implementation Act”) (the 1972 Act, Article XIII D and the Implementation Act are referred to collectively as the “Assessment Law”), did, by previous Resolution, order the preparation of the Assessment Engineer’s Reports for the annual levy of assessments for Fiscal Year 2026-27 in the maintenance assessment districts known and designated as

CITY OF ONTARIO
PARKWAY MAINTENANCE ASSESSMENT DISTRICTS NO. 1, 2, 3 AND 4 (the “Districts”); and
WHEREAS, there has now been presented to this City Council the Assessment Engineer’s Reports as required by the Assessment Law and as previously directed by Resolution; and
WHEREAS, this City Council has now examined and reviewed the Assessment Engineer’s Reports as presented, and is satisfied with each and all of the items and documents as set forth therein, and is satisfied that the assessments on a preliminary basis, have been spread in accordance with the special benefits received from the improvements to be maintained, as set forth in said Assessment Engineer’s Reports.

NOW, THEREFORE, IT IS HEREBY RESOLVED as follows:

SECTION 1. That the above recitals are all true and correct.

SECTION 2. That the Assessment Engineer’s Reports as presented, consisting of the following:

A. Plans and specifications describing the general nature, location, and extent of the improvements to be maintained and the extent of such maintenance; B. An estimate of the cost of the maintenance of the improvements for the Districts for Fiscal Year 2026-27;
C. A diagram for each District, showing the area and properties proposed to be assessed; and
129
D. An annual assessment for Fiscal Year 2026-27 of the estimated costs of the maintenance of those improvements to be maintained during such Fiscal Year, assessing the net amount upon all assessable lots and/or parcels within the Districts in proportion to the special benefits received; are hereby approved on a preliminary basis and are ordered to be filed in the Records Management Department as a permanent record and to remain open to public inspection.

SECTION 3. That the City Clerk shall certify to the passage and adoption of this Resolution, and the minutes of this meeting shall so reflect the presentation of the Assessment Engineer’s Reports.

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

PASSED, APPROVED, AND ADOPTED this 16
th day of June 2026.
_____________________________________
PAUL S. LEON, MAYOR
ATTEST:
____________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
____________________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY
130

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
131
RESOLUTION NO. ________

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

CALIFORNIA, DECLARING ITS INTENTION TO PROVIDE FOR AN

ANNUAL LEVY AND COLLECTION OF ASSESSMENTS FOR FISCAL
YEAR 2026-27 IN ONTARIO PARKWAY MAINTENANCE ASSESSMENT
DISTRICTS NO. 1, 2 AND 3, PURSUANT TO THE PROVISIONS OF DIVISION 15, PART 2, OF THE STREETS AND HIGHWAYS CODE OF

THE STATE OF CALIFORNIA, AND SETTING A TIME AND PLACE FOR A PUBLIC HEARING THEREON.

WHEREAS, the City Council of the City of Ontario, California, has previously formed landscaping maintenance assessment districts pursuant to the terms and provisions of the "Landscaping and Lighting Act of 1972," being Division 15, Part 2, of the Streets and Highways Code of the State of California, in what is known and designated as

CITY OF ONTARIO
PARKWAY MAINTENANCE ASSESSMENT DISTRICTS NO. 1, 2 AND 3 (hereinafter referred to as the Districts); and
WHEREAS, at this time, this City Council desires to conduct proceedings to provide for the annual levy of assessments for the ensuing fiscal year, to provide for the costs and expenses necessary for continued maintenance of improvements within said Districts; and
WHEREAS, at this time, there has been presented and approved by this City Council, the Engineer's Reports as required by law, and this City Council desires to conduct the proceedings for said annual levy.

NOW, THEREFORE, IT IS HEREBY RESOLVED as follows:

SECTION 1. That the above recitals are all true and correct.

SECTION 2. That the public interest and convenience requires, and it is the intention of this City Council, to undertake proceedings for the annual levy and collection of special assessments for Fiscal Year 2026-27 for the continued maintenance of certain improvements, all to service and benefit said Districts as said area is shown and delineated on the maps as previously approved by this City Council and on file with the City Clerk in the Records Management Department, open to public inspection, and herein so referenced and made a part hereof, and proposed changes thereto are set forth in the Engineer’s Reports, incorporated herein as a part hereof. 132
REPORT
SECTION 3. That the Engineer’s Reports regarding the annual levy for said Districts, which Reports are for maintenance for said fiscal year, are hereby approved and are directed to be filed with the City Clerk in the Records Management Department.

ASSESSMENT
SECTION 4. That the public interest and convenience requires, and it is the intention of this City Council to order the annual assessment levy for the Districts for Fiscal Year 2026-27 as set forth and described in said Engineer's Reports, and further it is determined to be in the best public interest and convenience to levy and collect annual assessments to pay the costs and expenses of said maintenance and improvement as estimated in said Reports. The assessments for Districts No. 1, 2, and 3 (Zone 2000-1) is not proposed to increase from the previous year. The assessment for District No. 3 (Zone 2000-2) is proposed to adjust by 3.24% but do not exceed the maximum annual assessments as previously authorized to be levied and, therefore, the proposed levy of assessments for Fiscal Year 2026-27 are not deemed to be “increased” over the maximum annual assessments.

DESCRIPTION OF MAINTENANCE
SECTION 5. The assessments levied and collected shall be for the maintenance of certain parkway landscaping and appurtenant improvements, as set forth in the Engineer's Reports, referenced and so incorporated herein.

BOUNDARIES OF DISTRICTS
SECTION 6. Said contemplated maintenance work is in the opinion of this City Council, of direct benefit to the properties within the boundaries of the Districts, and this City Council makes the costs and expenses of said maintenance chargeable upon the Districts benefited by said improvement and maintenance, and the Districts shall be assessed to pay the costs and expenses thereof. Said Districts shall include each and every parcel of land within the boundaries of said Districts, as said Districts are shown on the maps as approved by this City Council and on file in the Records Management Department.

PUBLIC PROPERTY
SECTION 7. Any lots or parcels of land known as public property, as the same are defined in Section 22663 of Division 15, Part 2, of the Streets and Highways Code of the State of California, which are included within the boundaries of the Districts, shall be omitted and exempt from any assessment to be made under these proceedings to cover any of the costs and expenses of said improvement and maintenance work. 133

PUBLIC HEARING
SECTION 8. NOTICE IS HEREBY GIVEN THAT A PUBLIC HEARING WILL BE HELD THE 21st DAY OF JULY, 2026, AT 6:30 P.M., AT THE REGULAR MEETING OF THE CITY COUNCIL, IN THE COUNCIL CHAMBERS, LOCATED AT CITY HALL, 303

EAST B STREET, ONTARIO, CA, WHICH IS THE TIME AND PLACE FIXED BY THIS

CITY COUNCIL FOR THE HEARING OF PROTESTS OR OBJECTIONS IN REFERENCE

TO THE ANNUAL LEVY OF ASSESSMENTS, TO THE EXTENT OF THE

MAINTENANCE, BY PROPERTY OWNERS AFFECTED HEREBY AND ANY OTHER MATTERS CONTAINED IN THIS RESOLUTION; PROVIDED, THAT, IN THE EVENT THE JULY 21, 2026 CITY COUNCIL MEETING IS HELD VIA TELECONFERENCE AND/OR

VIDEO CONFERENCE ONLY, THE MEANS BY WHICH THE PUBLIC MAY OBSERVE

SUCH PUBLIC HEARING AND OFFER PUBLIC COMMENT SHALL BE PRESCRIBED IN THE NOTICE AND AGENDA FOR SUCH CITY COUNCIL MEETING. ANY PERSONS

WHO WISH TO OBJECT TO THE PROCEEDINGS FOR THE ANNUAL LEVY SHOULD

FILE A WRITTEN PROTEST WITH THE CITY CLERK PRIOR TO THE TIME SET AND SCHEDULED FOR SAID PUBLIC HEARING.

NOTICE
SECTION 9. That the City Clerk is hereby authorized and directed to publish, pursuant to Government Code Section 6061, a copy of this Resolution in a newspaper of general circulation within said City, said publication shall be made one time and not less than ten (10) days before the date set for the Public Hearing.

SECTION 10. That this Resolution shall take effect immediately upon its adoption.

SECTION 11. For any and all information relating to the proceedings, protest procedure, any documentation and/or information of a procedural or technical nature, your attention is directed to the below listed person at the local agency or department so designated:

Claudia Hernandez
City of Ontario
303 East “B” Street
Ontario, California 91764
(909) 395-2261
The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.

PASSED, APPROVED, AND ADOPTED this 16
th day of June, 2026.
_____________________________________
PAUL S. LEON, MAYOR
134
ATTEST:
____________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
____________________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY
135

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
136
RESOLUTION NO. ________

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

CALIFORNIA, DECLARING ITS INTENTION TO PROVIDE FOR AN

ANNUAL LEVY AND COLLECTION OF ASSESSMENTS FOR FISCAL
YEAR 2026-27 IN ONTARIO PARKWAY MAINTENANCE ASSESSMENT
DISTRICT NO. 4, PURSUANT TO THE PROVISIONS OF DIVISION 15, PART 2, OF THE STREETS AND HIGHWAYS CODE OF THE STATE OF

CALIFORNIA, AND SETTING A TIME AND PLACE FOR A PUBLIC
HEARING THEREON.

WHEREAS, the City Council of the City of Ontario, California, has previously formed a landscaping maintenance assessment district, and authorized the levy of assessments therein pursuant to the terms and provisions of the “Landscaping and Lighting Act of 1972,” being Division 15, Part 2, of the Streets and Highways Code of the State of California (the “1972 Act”), Article XIII D of the Constitution of the State of California (“Article XIIID”), and the Proposition 218 Omnibus Implementation Act (Government Code Section 53750 and following) (the “Implementation Act”) (the 1972 Act, Article XIII D and the Implementation Act are referred to collectively as the “Assessment Law”) in what is known and designated as

CITY OF ONTARIO
PARKWAY MAINTENANCE ASSESSMENT DISTRICT NO. 4
(the “District”); and
WHEREAS, the City Council previously undertook proceedings as required by the Assessment Law to consider the approval of the levy of (a) maximum annual assessments to finance the estimated costs of the maintenance of all of the improvements to ultimately be maintained upon the completion and acceptance thereof for maintenance, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefits received; together with a formula pursuant to which such maximum assessment may be adjusted annually for inflation, and (b) an initial annual assessment of the estimated costs of the maintenance of those improvements to be maintained during the Fiscal Year, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefits received; and WHEREAS, upon the conclusion of the public hearing related to the proposed levy of the maximum annual assessments referred to in the preceding recital, the assessment ballots submitted in favor of the maximum annual assessments and the assessment ballots received in opposition to the levy of the maximum annual assessments were tabulated with assessment ballots weighted according to the proportional financial obligation of the affected properties; and
WHEREAS, as a result of the tabulation of the assessment ballots submitted, it was determined that the assessment ballots submitted, and not withdrawn, in favor of the proposed maximum annual assessment exceeded the assessment ballots submitted, and not withdrawn, in opposition to the levy of the maximum annual assessment; and 137
WHEREAS, this City Council has initiated proceedings to provide for the annual levy of assessments for referenced Fiscal Year 2026-27, to finance the costs and expenses necessary for continual maintenance of improvements within said District; and WHEREAS, at this time, there has been presented and approved by this City Council, the Assessment Engineer’s Report as required by the Assessment Law, and this City Council desires to conduct the proceedings to authorize said annual levy; and WHEREAS, the proposed annual assessments of 3.24% for Fiscal Year 2026-27 as set forth in the Assessment Engineer’s Report do not exceed the maximum annual assessments as previously authorized to be levied and, therefore, the proposed levy of assessments for Fiscal Year 2026-27 are not deemed to be “increased” over the maximum annual assessments.

NOW, THEREFORE, IT IS HEREBY RESOLVED as follows:

RECITALS
SECTION 1. That the above recitals are all true and correct.

IMPROVEMENTS AND MAINTENANCE
SECTION 2. That the public interest and convenience requires, and it is the intention of this City Council, to undertake proceedings for the annual levy and collection of special assessments for Fiscal Year 2026-27 for the continued maintenance of the improvements described below, all to service and specially benefit the properties within said District as shown and delineated on a map as previously approved by this City Council and on file with the City Clerk in the Records Management Department, open to public inspection, and herein so referenced and made a part hereof.

The improvements to be maintained include the landscaping, planting, shrubbery, trees, irrigation systems, hardscapes, fixtures, sidewalks within designated medians, parkways, other public rights-of-way and dedicated easements specially benefiting the properties within the District.

The maintenance of such landscaping shall include the furnishing of services and materials for the ordinary and usual maintenance and servicing of the improvements, including:
(a) Repair, removal, or replacement of all or any part of any improvement; (b) Providing for the life, growth, health, and beauty of the improvements, including cultivation, irrigation, trimming, spraying, fertilizing, and/or treating for disease and injury; and
(c) The removal of trimmings, rubbish, and debris.

The annual assessment for Fiscal Year 2026-27 shall be levied only for those improvements completed or projected to be completed and accepted by this City Council for maintenance prior to or during said Fiscal Year.
138
ASSESSMENT ENGINEER’S REPORT
SECTION 3. That the Assessment Engineer’s Report regarding the annual levy for said District, which Report is for maintenance for Fiscal Year 2026-27, is hereby approved and is directed to be filed with the City Clerk in the Records Management Department. Reference is made to such Report for a full and detailed description of the improvements to be maintained, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District.

ASSESSMENT
SECTION 4. That the public interest and convenience requires, and it is the intention of this City Council to order the annual assessment levy for the District for Fiscal Year 2026-27 as set forth and described in said Assessment Engineer’s Report, and further it is determined to be in the best public interest and convenience to levy and collect annual assessments to pay the costs and expenses of said maintenance and improvement as estimated in the Assessment Engineer’s Report.

BOUNDARIES OF DISTRICT
SECTION 5. Said contemplated maintenance work is in the opinion of this City Council, of direct benefit to the properties within the boundaries of the District, and this City Council makes the costs and expenses of said maintenance chargeable upon the District, which is benefited by said improvement and maintenance, and the District shall be assessed to pay the costs and expenses thereof. Said District shall include each and every parcel of land within the boundaries of said District, as said District is shown on a map as approved by this City Council and on file in the Records Management Department, and so designated by the name of the District.

PUBLIC HEARING
SECTION 6. NOTICE IS HEREBY GIVEN THAT A PUBLIC HEARING WILL BE HELD THE 21st DAY OF JULY, 2026, AT 6:30 P.M., AT THE REGULAR MEETING OF THE CITY COUNCIL, IN THE COUNCIL CHAMBERS, LOCATED AT CITY HALL, 303 EAST B

STREET, ONTARIO, CA, WHICH IS THE TIME AND PLACE FIXED BY THIS CITY

COUNCIL FOR THE HEARING OF PROTESTS OR OBJECTIONS IN REFERENCE TO

THE ANNUAL LEVY OF ASSESSMENTS, TO THE EXTENT OF THE MAINTENANCE, BY

ANY INTERESTED PERSON AND ANY OTHER MATTERS CONTAINED IN THIS RESOLUTION; PROVIDED, THAT, IN THE EVENT THE JULY 21, 2026 CITY COUNCIL

MEETING IS HELD VIA TELECONFERENCE AND/OR VIDEO CONFERENCE ONLY,

THE MEANS BY WHICH THE PUBLIC MAY OBSERVE SUCH PUBLIC HEARING AND

OFFER PUBLIC COMMENT SHALL BE PRESCRIBED IN THE NOTICE AND AGENDA FOR SUCH CITY COUNCIL MEETING. ANY PERSONS WHO WISH TO OBJECT TO THE

PROCEEDINGS FOR THE ANNUAL LEVY SHOULD FILE A WRITTEN PROTEST WITH

THE CITY CLERK PRIOR TO THE TIME SET AND SCHEDULED FOR SAID PUBLIC HEARING.
139
NOTICE
SECTION 7. That the City Clerk is hereby authorized and directed to publish, pursuant to Government Code Section 6061, a copy of this Resolution in a newspaper of general circulation within said City, said publication shall be made one time and not less than ten (10) days before the date set for the Public Hearing.

EFFECTIVE DATE OF RESOLUTION
SECTION 8. That this Resolution shall take effect immediately upon its adoption.

PROCEEDING INQUIRIES
SECTION 9. For any and all information relating to the proceedings, protest procedure, any documentation and/or information of a procedural or technical nature, your attention is directed to the below listed person at the local agency or department so designated:

Claudia Hernandez
City of Ontario
303 East “B” Street
Ontario, California 91764
(909) 395-2261
The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.

PASSED, APPROVED, AND ADOPTED this 16
th day of June, 2026.
_____________________________________
PAUL S. LEON, MAYOR
ATTEST:
____________________________________

SHEILA MAUTZ, CITY CLERK
140
APPROVED AS TO FORM:
____________________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY
141

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
142
Department: Financial Services
Prepared By: Cruz Torres
Staff Member Presenting: Armen Harkalyan,
Executive Director of Finance
Reviewed By: Matthew Hernandez, Claudia
Hernandez
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 7
SUBJECT: ANNUAL LEVY OF ASSESSMENTS WITHIN STREET LIGHTING MAINTENANCE DISTRICT NOS. 1 AND 2 FOR FISCAL YEAR 2026-27

CITY OF ONTARIO
Agenda Report
June 16, 2026
SECTION:

CONSENT CALENDAR
RECOMMENDATION: That the City Council consider and adopt:

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Operate in a Businesslike Manner
Focus Resources in Ontario's Commercial and Residential Neighborhoods FISCAL IMPACT: As proposed, special assessment revenue will be generated in the amount of $380,046 from SLMD No. 1 and $108,174 from SLMD No. 2 during Fiscal Year 2026-27. A portion of the facilities within SLMD No. 1 provide a general benefit to the public at large and cannot be funded with the assessment. The amount of the general benefit is $40,538. If approved, appropriations in the General Fund will be included in future Annual Budgets to City Council for approval as needed for the City Contribution to Streetlight Maintenance.

BACKGROUND & ANALYSIS: Street Lighting Maintenance District No. 1 was formed in 1984, and Street Lighting Maintenance District No. 2 was formed in 1999, pursuant to the Landscaping and Lighting Act of 1972 (the 1972 Act), to help minimize the continually increasing cost for maintaining and operating the City's street lighting system. A special assessment is levied annually on benefiting properties for the cost of maintenance and operation of certain street lighting facilities 143
within the districts. The locations of the districts are shown on the maps included in the Engineer's Reports.

The City’s Public Works Agency establishes the annual maintenance costs and maintains the street lighting system. An Engineer’s Report for each district must be prepared annually, apportioning the costs to each parcel within the districts. The districts are comprised of commercial, industrial and some multi-family residential properties. Due to varying characteristics, the districts are organized into benefit zones and/or maintenance areas. Each zone/maintenance area is assessed for only the operation and maintenance of the facilities from which it receives direct special benefit. The total assessment for each zone/maintenance area is then apportioned to its constituent parcels.

Therefore, the assessments are unique and specific to each individual parcel of property.

In 2021, the City conducted a study of the current status of the improvements maintained in Street Lighting Maintenance Districts No. 1 and 2 to determine the funding that will be required for upcoming upgrades and normal replacement cycles. The capital replacement cost for Fiscal Year 2026-27 is $127,003 and was apportioned as follows: $106,950 for SLMD No. 1 (Zone 2000-1); $6,684 for SLMD No. 1 (Zone 2000-2); and $13,369 for SLMD No. 2.

The total assessment during Fiscal Year 2025-26 was $ 368,131 in SLMD No. 1, and $104,777 in SLMD No. 2. The proposed Fiscal Year 2026-27 assessment for the two street light maintenance districts is based on estimated costs for the operation, maintenance, and servicing of the facilities included in the Fiscal Year 2026-27 Proposed Budget. The proposed total assessments for Fiscal Year 2026-27 are $380,046 in SLMD No. 1, and $108,174 in SLMD No. 2. A portion of the facilities within SLMD No. 1 provide a general benefit to the public at large and cannot be funded with the assessment. The amount of this general benefit is $40,538 for Fiscal Year 2026-27. The general benefit will rely on a General Fund subsidy, and it will be included in the City's budget for Fiscal Year 2026-27. The assessed tax rates for Fiscal Year 2025-26, and the proposed and maximum tax rates for Fiscal Year 2026-27, are shown in Exhibit A.

Pursuant to the 1972 Act, Engineer’s Reports have been prepared for each district and are on file with the Records Management Department. Each report includes plans and specifications for the improvements being operated and maintained, an estimate of costs, a diagram of the area proposed to be assessed (boundary and inventory maps), and an assessment of the costs to the various parcels within the districts.

Notice of the public hearing for the levy of assessments will be published in the local newspaper, in accordance with the applicable statutes.
144
Prior Year Maximum Proposed
2025-26 2026-27 2026-27
SLMD No. 1, Zone 2000-1 per AU $ 122.67 $ 202.23 $ 126.64 SLMD No. 1, Zone 2000-2 per AU $ 71.35 $ 165.74 $ 73.66 SLMD No. 2, MA# 99-1 $ 4,883.00 $ 14,423.00 $ 5,698.00
SLMD No. 2, MA# 99-2 $ 2,347.00 $ 7,171.00 $ 2,322.00
SLMD No. 2, MA# 99-3 $ 3,912.00 $ 11,952.00 $ 3,870.00
SLMD No. 2, MA# 99-4 $ 1,565.00 $ 4,787.00 $ 1,548.00
SLMD No. 2, MA# 99-5 $ 2,723.00 $ 4,487.00 $ 2,856.00
SLMD No. 2, MA# 99-6 $ 14,201.00 $ 41,883.00 $ 14,941.00 SLMD No. 2, MA# 99-7 $ 1,062.00 $ 1,295.00 $ 1,050.00
SLMD No. 2, MA# 99-8 $ 3,912.00 $ 9,562.00 $ 3,870.00
SLMD No. 2, MA# 00-1 $ 3,912.00 $ 4,400.00 $ 3,870.00
SLMD No. 2, MA# 00-2 $ 1,565.00 $ 2,935.00 $ 1,548.00
SLMD No. 2, MA# 00-3 $ 8,607.00 $ 16,134.00 $ 8,512.00
SLMD No. 2, MA# 00-4 $ 56,088.00 $ 92,384.00 $ 58,090.00

EXHIBIT A
Street Light Maintenance Districts Proposed Levy Rates FY 2026-27 145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
RESOLUTION NO. ________

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

CALIFORNIA, ORDERING THE PREPARATION OF THE ASSESSMENT
ENGINEER’S REPORTS PURSUANT TO THE PROVISIONS OF DIVISION 15, PART 2, OF THE STREETS AND HIGHWAYS CODE OF THE STATE

OF CALIFORNIA, FOR PROCEEDINGS FOR THE ANNUAL ASSESSMENT

LEVY WITHIN ONTARIO STREET LIGHTING MAINTENANCE DISTRICTS NO. 1 AND NO. 2 FOR FISCAL YEAR 2026-27.

CITY OF ONTARIO
STREET LIGHTING MAINTENANCE DISTRICTS NO. 1 AND 2
(the “Districts”); and
WHEREAS, at this time the City Council desires to initiate proceedings to provide for the annual levy of assessments for Fiscal Year 2026-27 to provide for the annual costs for maintenance of improvements within the Districts; and WHEREAS, the proceedings for the annual levy of assessments shall relate to the Fiscal Year commencing July 1, 2026, and ending June 30, 2027; and WHEREAS, there has been submitted to this City Council for its consideration at this time, maps showing the boundaries of the areas affected by the levy of the assessments for the above-referenced Fiscal Year, and inventory maps showing and describing in general the works of improvement proposed to be maintained in said Districts, said description being sufficient to identify the works of improvement and the areas proposed to be assessed for said maintenance thereof.

NOW, THEREFORE, IT IS HEREBY RESOLVED as follows:

SECTION 1. That the above recitals are all true and correct.

SECTION 2. That the maps entitled

CITY OF ONTARIO
STREET LIGHTING MAINTENANCE DISTRICTS NO. 1 AND 2

BOUNDARY MAP AND INVENTORY MAPS
attached hereto, as submitted to this City Council, showing the boundaries of the proposed areas to be assessed and showing the works of improvement to be maintained, are hereby approved, and a copy thereof shall be on file with the City Clerk in the Records Management Department and open to public inspection. The proposed parcels and properties within said areas are those to be assessed to pay the costs and expenses for said maintenance work. 162
SECTION 3. That the proposed maintenance work within the areas proposed to be assessed shall be for street lighting and signal and appurtenant improvements, as said maintenance work is set forth in the Reports to be presented to this City Council for consideration.

SECTION 4. That the Assessment Engineer, Willdan Financial Services, is hereby ordered to prepare and file with this City Council the Assessment Engineer’s Reports relating to said annual assessment and levy in accordance with the provisions of 1972 Act, Article XIII D of the Constitution of the State of California (“Article XIII D”), and the Proposition 218 Omnibus Implementation Act (Government Code Section 53750 and following) (the “Implementation Act”) (the 1972 Act, Article XIII D and the Implementation Act are referred to collectively as the “Assessment Law”).

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

PASSED, APPROVED, AND ADOPTED this 16
th day of June 2026.
_____________________________________
PAUL S. LEON, MAYOR
ATTEST:
____________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
____________________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY
163

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
164
RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING THE ASSESSMENT ENGINEER’S

REPORTS FOR THE ANNUAL LEVY OF ASSESSMENTS WITHIN
ONTARIO STREET LIGHTING MAINTENANCE DISTRICTS NO. 1
AND NO. 2 FOR FISCAL YEAR 2026-27.

WHEREAS, the City Council of the City of Ontario, California, pursuant to the provisions of Division 15, Part 2, of the Streets and Highways Code of the State of California (the “1972 Act”), Article XIII D of the Constitution of the State of California (“Article XIII D”), and the Proposition 218 Omnibus Implementation Act (Government Code Section 53750 and following) (the “Implementation Act”) (the 1972 Act, Article XIII D and the Implementation Act are referred to collectively as the “Assessment Law”), did, by previous Resolution, order the preparation of the Assessment Engineer’s Reports for the annual levy of assessments for the referenced Fiscal Year in the maintenance assessment districts known and designated as

CITY OF ONTARIO
STREET LIGHTING MAINTENANCE DISTRICTS NO. 1 AND 2
(the “Districts”); and
WHEREAS, there has now been presented to this City Council the Assessment Engineer’s Reports as required by the Assessment Law and as previously directed by Resolution; and
WHEREAS, this City Council has now examined and reviewed the Assessment Engineer’s Reports as presented, and is satisfied with each and all of the items and documents as set forth therein, and is satisfied that the assessments on a preliminary basis, have been assessed in accordance with the special benefits received from the improvements to be maintained, as set forth in said Assessment Engineer’s Reports.

NOW, THEREFORE, IT IS HEREBY RESOLVED as follows:

SECTION 1. That the above recitals are all true and correct.

SECTION 2. That the Assessment Engineer’s Reports as presented, consisting of the following:

A. Plans and specifications describing the general nature, location, and extent of the improvements to be maintained and the extent of such maintenance for each District;
B. An estimate of the cost of the maintenance of the improvements for each District for Fiscal Year 2026-27;
165
C. A diagram for each District, showing the area and properties proposed to be assessed; and
D. An annual assessment within each District for Fiscal Year 2026-27 of the estimated costs of the maintenance of those improvements to be maintained during such Fiscal Year, assessing the net amount upon all assessable lots and/or parcels within each District in proportion to the special benefits received;
are hereby approved on a preliminary basis and are ordered to be filed in the Records Management Department as a permanent record and to remain open to public inspection.

SECTION 3. That the City Clerk shall certify to the passage and adoption of this Resolution, and the minutes of this meeting shall so reflect the presentation of the Assessment Engineer’s Reports.

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

PASSED, APPROVED, AND ADOPTED this 16th day of June, 2026. _____________________________________
PAUL S. LEON, MAYOR
ATTEST:
____________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
____________________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY
166

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
167
RESOLUTION NO. ________

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

CALIFORNIA, DECLARING ITS INTENTION TO PROVIDE FOR AN

ANNUAL LEVY AND COLLECTION OF ASSESSMENTS FOR
FISCAL YEAR 2026-27 IN ONTARIO STREET LIGHTING MAINTENANCE DISTRICT NO. 1 PURSUANT TO THE PROVISIONS OF DIVISION 15, PART 2, OF THE STREETS AND HIGHWAYS CODE OF THE STATE OF

CALIFORNIA, AND SETTING A TIME AND PLACE FOR A PUBLIC
HEARING THEREON.

WHEREAS, the City Council of the City of Ontario, California, has previously formed a street lighting maintenance assessment district pursuant to the terms and provisions of the "Landscaping and Lighting Act of 1972," being Division 15, Part 2, of the Streets and Highways Code of the State of California (the “1972 Act”), in what is known and designated as

CITY OF ONTARIO
STREET LIGHTING MAINTENANCE DISTRICT NO. 1
(hereinafter referred to as the District); and
WHEREAS, the City Council has previously undertaken proceedings as required by the 1972 Act, Article XIII D of the Constitution of the State of California (“Article XIII D”), and the Proposition 218 Omnibus Implementation Act (Government Code Section 53750 and following) (the “Implementation Act and, together with the 1972 Act and Article XIII D, the “Assessment Law”) to approve and has approved the levy of maximum annual assessments to finance the estimated costs of the maintenance of all of the improvements to be maintained, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefits received; together with a formula pursuant to which such maximum assessments may be adjusted annually for inflation; and WHEREAS, at this time, this City Council desires to conduct proceedings to provide for the annual levy of assessments for referenced Fiscal Year 2026-27, to provide for the costs and expenses necessary for continual maintenance of improvements within said District; and
WHEREAS, at this time, there has been presented and approved by this City Council, the Engineer's Report as required by law, and this City Council desires to conduct the proceedings for said annual levy; and
WHEREAS, the proposed annual assessments for Fiscal Year 2026-27 as set forth in the Assessment Engineer’s Report increased by an average of 3.24% and do not exceed the maximum annual assessments as previously authorized to be levied and, therefore, the proposed levy of assessments for Fiscal Year 2026-27 are not deemed to be “increased” over the maximum annual assessments.
168
NOW, THEREFORE, IT IS HEREBY RESOLVED as follows:

SECTION 1. That the above recitals are all true and correct.

SECTION 2. That the public interest and convenience requires, and it is the intention of this City Council, to undertake proceedings for the annual levy and collection of special assessments for Fiscal Year 2026-27 for the continued maintenance of certain improvements, all to service and specially benefit said District s shown and delineated on the maps as previously approved by this City Council and on file with the City Clerk in the Records Management Department, open to public inspection, and herein so referenced and made a part hereof, and proposed changes thereto are set forth in the Engineer’s Report, incorporated herein as a part hereof.

REPORT
SECTION 3. That the Engineer’s Report regarding the annual levy for said District, which Report is for maintenance for Fiscal Year 2026-27, is hereby approved and is directed to be filed with the City Clerk in the Records Management Department.

Reference is made to such Report for a full and detailed description of the improvements to be maintained, the boundaries of the District and the zones therein, and the proposed assessments on assessable lots and parcels of land within the District.

ASSESSMENT
SECTION 4. That the public interest and convenience requires, and it is the intention of this City Council to order the annual assessment levy for the District for Fiscal Year 2026-27 as set forth and described in said Engineer's Report, and further it is determined to be in the best public interest and convenience to levy and collect annual assessments to pay the costs and expenses of said maintenance and improvement as estimated in said Report.

DESCRIPTION OF MAINTENANCE
SECTION 5. The assessments levied and collected shall be for the maintenance of certain street lighting and appurtenant improvements, as set forth in the Engineer's Report, referenced and so incorporated herein.

BOUNDARIES OF DISTRICT
SECTION 6. Said contemplated maintenance work is in the opinion of this City Council, of special benefit to the properties within the boundaries of the District, and this City Council makes the costs and expenses of said maintenance chargeable upon the District, which is specially benefited by said improvement and maintenance, and the District shall be assessed to pay the costs and expenses thereof. Said District shall include each and every parcel of land within the boundaries of said District, as said District is shown on the maps as approved by this City Council and on file in the Records Management Department.
169

PUBLIC HEARING
SECTION 7. NOTICE IS HEREBY GIVEN THAT A PUBLIC HEARING WILL BE HELD THE 21st DAY OF JULY, 2026, AT 6:30 P.M., AT THE REGULAR MEETING

OF THE CITY COUNCIL, IN THE COUNCIL CHAMBERS, LOCATED AT CITY HALL, 303 EAST B STREET, ONTARIO, CA, WHICH IS THE TIME AND PLACE FIXED BY

THIS CITY COUNCIL FOR THE HEARING OF PROTESTS OR OBJECTIONS IN

REFERENCE TO THE ANNUAL LEVY OF ASSESSMENTS, TO THE EXTENT OF THE

MAINTENANCE, BY PROPERTY OWNERS AFFECTED HEREBY AND ANY OTHER MATTERS CONTAINED IN THIS RESOLUTION; PROVIDED, THAT, IN THE EVENT THE JULY 21, 2026 CITY COUNCIL MEETING IS HELD VIA TELECONFERENCE

AND/OR VIDEO CONFERENCE ONLY, THE MEANS BY WHICH THE PUBLIC MAY

OBSERVE SUCH PUBLIC HEARING AND OFFER PUBLIC COMMENT SHALL BE PRESCRIBED IN THE NOTICE AND AGENDA FOR SUCH CITY COUNCIL MEETING.

ANY PERSONS WHO WISH TO OBJECT TO THE PROCEEDINGS FOR THE ANNUAL

LEVY SHOULD FILE A WRITTEN PROTEST WITH THE CITY CLERK PRIOR TO THE TIME SET AND SCHEDULED FOR SAID PUBLIC HEARING.

NOTICE
SECTION 8. That the City Clerk is hereby authorized and directed to publish, pursuant to Government Code Section 6061, a copy of this Resolution in a newspaper of general circulation within said City, said publication shall be made one time and not less than ten (10) days before the date set for the Public Hearing.

SECTION 9. That this Resolution shall take effect immediately upon its adoption.

SECTION 10. For any and all information relating to the proceedings, protest procedure, any documentation and/or information of a procedural or technical nature, your attention is directed to the below listed person at the local agency or department so designated:

Claudia Hernandez
City of Ontario
303 East “B” Street
Ontario, California 91764
(909) 395-2261
The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.
170
PASSED, APPROVED, AND ADOPTED this 16th day of June, 2026. _____________________________________
PAUL S. LEON, MAYOR
ATTEST:
____________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
____________________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY
171

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
172
RESOLUTION NO. ________

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

CALIFORNIA, DECLARING ITS INTENTION TO PROVIDE FOR AN

ANNUAL LEVY AND COLLECTION OF ASSESSMENTS FOR
FISCAL YEAR 2026-27 IN ONTARIO STREET LIGHTING MAINTENANCE DISTRICT NO. 2, PURSUANT TO THE PROVISIONS OF DIVISION 15, PART 2, OF THE STREETS AND HIGHWAYS CODE OF THE STATE OF

CALIFORNIA, AND SETTING A TIME AND PLACE FOR A PUBLIC
HEARING THEREON.

WHEREAS, the City Council of the City of Ontario, California, has previously formed a street lighting maintenance assessment district, and authorized the levy of assessments therein pursuant to the terms and provisions of the “Landscaping and Lighting Act of 1972,” being Division 15, Part 2, of the Streets and Highways Code of the State of California (the “1972 Act”), Article XIII D of the Constitution of the State of California (“Article XIII D”), and the Proposition 218 Omnibus Implementation Act (Government Code Section 53750 and following) (the “Implementation Act”) (the 1972 Act, Article XIII D and the Implementation Act are referred to collectively as the “Assessment Law”) in what is known and designated as

CITY OF ONTARIO
STREET LIGHTING MAINTENANCE DISTRICT NO. 2
(the “District”); and
WHEREAS, the City Council previously undertook proceedings as required by the Assessment Law to consider the approval of the levy of (a) maximum annual assessments to finance the estimated costs of the maintenance of all of the improvements to ultimately be maintained upon the completion and acceptance thereof for maintenance, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefits received; together with a formula pursuant to which such maximum assessment may be adjusted annually for inflation, and (b) an initial annual assessment of the estimated costs of the maintenance of those improvements to be maintained during the Fiscal Year, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefits received; and WHEREAS, upon the conclusion of the public hearing related to the proposed levy of the maximum annual assessments referred to in the preceding recital, the assessment ballots submitted in favor of the maximum annual assessments and the assessment ballots received in opposition to the levy of the maximum annual assessments were tabulated with assessment ballots weighted according to the proportional financial obligation of the affected properties; and
173
WHEREAS, as a result of the tabulation of the assessment ballots submitted, it was determined that the assessment ballots submitted, and not withdrawn, in favor of the proposed maximum annual assessment exceeded the assessment ballots submitted, and not withdrawn, in opposition to the levy of the maximum annual assessment; and WHEREAS, this City Council has initiated proceedings to provide for the annual levy of assessments for Fiscal Year 2026-27, to finance the costs and expenses necessary for continued maintenance of improvements within said District; and WHEREAS, at this time, there has been presented and approved by this City Council, the Assessment Engineer’s Report as required by the Assessment Law, and this City Council desires to conduct the proceedings to authorize said annual levy; and WHEREAS, the proposed annual assessments for Fiscal Year 2026-27 as set forth in the Assessment Engineer’s Report increased by a net average of 3.24% and do not exceed the maximum annual assessments as previously authorized to be levied and, therefore, the proposed levy of assessments for Fiscal Year 2026-27 are not deemed to be “increased” over the maximum annual assessments.

NOW, THEREFORE, IT IS HEREBY RESOLVED as follows:

RECITALS
SECTION 1. That the above recitals are all true and correct.

IMPROVEMENTS AND MAINTENANCE
SECTION 2. That the public interest and convenience requires, and it is the intention of this City Council, to undertake proceedings for the annual levy and collection of special assessments for Fiscal Year 2026-27 for the continued maintenance of the improvements described below, all to service and specially benefit the properties within said District as said area is shown and delineated on a map as previously approved by this City Council and on file with the City Clerk in the Records Management Department, open to public inspection, and herein so referenced and made a part hereof:

The improvements to be maintained include street lighting facilities specially benefiting the properties within the District. Such street lighting facilities include all works or improvements used or useful for street lighting, including luminaires, poles, supports, tunnels, manholes, vaults, conduits, pipes, wires, conductors, guys, stubs, platforms, braces, transformers, insulators, contacts, switches, capacitors, meters, communications circuits, appliances, attachments and appurtenances.

The maintenance of such street lighting facilities shall include the furnishing of services and materials for the ordinary and usual maintenance and servicing of the street lighting facilities, including:
174
(a) Repair, removal, or replacement of all or any part of any street lighting facility; and
(b) The provision of electric current for the operation of such street lighting facilities.

Reference is made to the Assessment Engineer’s Report for further information regarding the improvements to be maintained and the scope of such maintenance.

The annual assessment for the referenced Fiscal Year shall be levied only for those improvements completed or projected to be completed and accepted by this City Council for maintenance prior to or during said Fiscal Year.

ASSESSMENT ENGINEER’S REPORT
SECTION 3. That the Assessment Engineer’s Report regarding the annual levy for said District, which Report is for maintenance for Fiscal Year 2026-27, is hereby approved and is directed to be filed with the City Clerk in the Records Management Department. Reference is made to such Report for a full and detailed description of the improvements to be maintained, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District.

BOUNDARIES OF DISTRICT
SECTION 5. Said contemplated maintenance work is in the opinion of this City Council, of direct benefit to the properties within the boundaries of the District, and this City Council makes the costs and expenses of said maintenance chargeable upon a District, which is benefited by said improvement and maintenance, and the District shall be further assessed to pay the costs and expenses thereof. Said District shall include each and every parcel of land within the boundaries of said District, as said District is shown on a map as approved by this City Council and on file in the Records Management Department, and so designated by the name of the District. 175

PUBLIC HEARING
SECTION 6. NOTICE IS HEREBY GIVEN THAT A PUBLIC HEARING WILL BE HELD THE 21st DAY OF JULY, 2026, AT 6:30 P.M., AT THE REGULAR MEETING

OF THE CITY COUNCIL, BEING IN THE COUNCIL CHAMBERS, LOCATED AT CITY HALL, 303 EAST B STREET, ONTARIO, CA, WHICH IS THE TIME AND PLACE FIXED

BY THIS CITY COUNCIL FOR THE HEARING OF PROTESTS OR OBJECTIONS IN

REFERENCE TO THE ANNUAL LEVY OF ASSESSMENTS, TO THE EXTENT OF THE

MAINTENANCE, BY ANY INTERESTED PERSON AND ANY OTHER MATTERS CONTAINED IN THIS RESOLUTION; PROVIDED, THAT, IN THE EVENT THE JULY 21, 2026 CITY COUNCIL MEETING IS HELD VIA TELECONFERENCE AND/OR VIDEO

CONFERENCE ONLY, THE MEANS BY WHICH THE PUBLIC MAY OBSERVE SUCH

PUBLIC HEARING AND OFFER PUBLIC COMMENT SHALL BE PRESCRIBED IN THE NOTICE AND AGENDA FOR SUCH CITY COUNCIL MEETING. ANY PERSONS WHO

WISH TO OBJECT TO THE PROCEEDINGS FOR THE ANNUAL LEVY SHOULD FILE

A WRITTEN PROTEST WITH THE CITY CLERK PRIOR TO THE TIME SET AND SCHEDULED FOR SAID PUBLIC HEARING.

NOTICE
SECTION 7. That the City Clerk is hereby authorized and directed to publish, pursuant to Government Code Section 6061, a copy of this Resolution in a newspaper of general circulation within said City, said publication shall be made one time and not less than ten (10) days before the date set for the Public Hearing.

EFFECTIVE DATE OF RESOLUTION
SECTION 8. That this Resolution shall take effect immediately upon its adoption.

Claudia Hernandez
City of Ontario
303 East “B” Street
Ontario, California 91764
(909) 395-2261
The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.
176
PASSED, APPROVED, AND ADOPTED this 16th day of June, 2026. _____________________________________
PAUL S. LEON, MAYOR
ATTEST:
____________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
____________________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY
177

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
178
Department: Information Technology
Prepared By: Samantha Robles
Staff Member Presenting: Colin Fernandes,
Executive Director Information Technology
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 8
SUBJECT: INFORMATION TECHNOLOGY SERVICE REVENUE CONTRACT WITH THE COUNTY

OF SAN BERNARDINO FOR THE PUBLIC SAFETY COMMUNICATIONS SYSTEM

ACCESS AND MAINTENANCE SERVICES

CITY OF ONTARIO
Agenda Report
June 16, 2026
SECTION:

CONSENT CALENDAR
RECOMMENDATION: That the City Council authorize the City Manager, or his designee, to execute a five-year Information Technology Service Revenue Contract with the County of San Bernardino for the Public Safety Communications System Access and Maintenance Services for an estimated annual amount of $1,930,277 for an estimated total contract amount of $9,651,385.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Operate in a Businesslike Manner
FISCAL IMPACT: The Fiscal Year 2025-26 Adopted Budget includes appropriations from the Information Technology Fund for radio service and maintenance. The estimated annual cost for the Public Safety Communications System Access and Maintenance Services with the County of San Bernardino over a five-year term is $1,930,277, including a 5% annual contingency, for an estimated total contract amount of $9,651,385. The fixed billing rates specified in the current Agreement will determine the amount charged for services and reflect the actual services provided. If approved, appropriations will be included in future Fiscal Year Proposed Budgets consistent with the annual adoption process.

BACKGROUND & ANALYSIS:

San Bernardino County operates and maintains the regional 800 MHz public safety radio system used by agencies throughout the county. The system provides reliable, interoperable communications for routine operations, emergency response, mutual aid incidents, and disasters.

The City currently utilizes approximately 1,713 mobile and handheld radios across Police, Fire, Community Improvement, and Public Works operations. This Agreement ensures continued access to the County's radio network, including maintenance, system support, and interoperability with County and regional partners. Continued participation reduces the risk of communication failures and supports continuity of operations during emergencies. 179
The County of San Bernardino is the sole provider and operator of this regional radio system.

Because access to and operation of the network are proprietary to the County and no alternative provider can furnish these services, the procurement qualifies for the exceptions set forth in Ontario Municipal Code Sections 2-6.23(b) and (c). Competitive solicitation would be impractical and would not provide any advantage to the City.

Over the past five years, the City's radio inventory has increased from approximately 1,358 to 1,713 radios. In addition, dispatch console capacity is expected to increase from 16 to approximately 20 consoles by the end of 2026 with the transition to the City's new dispatch center. Staff recommends City Council approve an agreement with the County of San Bernardino in an amount not to exceed $9,651,385 for a five-year term.
180

October 31, 2025
ATTN: Finance Management
Customer Name: City of Ontario
Subject: Upcoming Public Safety Communication Service Rate Adjustments for 2026-27 We are writing to inform you of upcoming adjustments to the County’s Innovation and Technology Department Public Safety Communication (PSC) system service rates for 2026-27.

The County’s PSC system has historically been funded by a combination of customer-paid service rates and County General Fund. Starting in 2026-27, a full cost recovery model will be implemented for PSC service rates. This model includes necessary system equipment upgrades identified through 2034-35, which were not previously factored into rates.

Service rate impacts are detailed and estimated below. Final rates are contingent on approval by the County Board of Supervisors. Any changes to the below estimated service rates will be communicated to customers.

Radio Access and Maintenance: This existing rate is expected to increase from $59.29 per radio per month to $76.37 per radio per month (estimated) as a result of this change. This service rate includes core system infrastructure equipment upgrades required to replace unsupportable and obsolete equipment through 2034-35.

Cost Center: 6000-00DY
Radio Count as of June 2025: 1,012
Estimated Total 2026-27 Cost: $927,437
Cost Center: 6000-00DZ
Radio Count as of June 2025: 328
Estimated Total 2026-27 Cost: $300,592
Cost Center: 6000-01EE
Radio Count as of June 2025: 517
Estimated Total 2026-27 Cost: $473,799
Dispatch Console Upgrade Replacement: This is a new rate of $5,879.94 per console per year (estimated) that will apply to customers who have existing dispatch consoles that have not been self-upgraded to the new console model (Command Central AXS). Customers may choose to purchase their dispatch consoles outright from ITD at an upfront cost of $52,919.46. If selecting this option, please notify ITD by June 30, 2026, to ensure proper chargeback processing. Dispatch console upgrades are required to keep the consoles up-toInnovation and Technology Department
Lynn Fyhrlund
Chief Information Officer
851 E. Cooley Drive, Colton, CA 92324 | Phone: 909.388.5500 Fax: 909.388.5555 181
Upcoming Public Safety Communication Service Rate Adjustments for 2026-27 October 31, 2025
PAGE 2 of 2
date and functioning optimally and are not optional. Upgrade replacements will occur over the next two years, beginning in 2025-26.

Cost Center: 6000-00DY
Console Count: 11
Estimated Total 2026-27 Cost: $64,679
Dispatch Console Access, Maintenance, Software Upgrade, and Replacement: This existing rate methodology is unchanged; however, decreased customer costs are anticipated due increased customer usage which spreads the cost to maintain the consoles across a larger customer base. The existing rate is expected to decrease from $642.75 per console per month to $487.15 per console per month (estimated).

Cost Center: 6000-00DY
Console Count: 11
Estimated Total 2026-27 Cost: $64,304
I will follow up with a meeting request in the coming weeks to address any questions or concerns you may have.

I appreciate your understanding.

Cody Barnes
IT Chief Finance Officer
(909) 388-5524
[email protected]
182
Standard Contract Page 1 of 16

THE INFORMATION IN THIS BOX IS NOT A PART OF THE CONTRACT AND IS FOR COUNTY USE ONLY Innovation and Technology Department
Department Contract Representative Jeremiah Thomas
Telephone Number (909) 388-0641
Customer City of Ontario (6000-00DZ) (6000-
00DY) (6000-01EE)
Customer Representative Jose Andrade
Telephone Number (909) 395-2000
Contract Term 7/1/2026 – 6/30/2031
Original Contract Amount Based on Actual Usage
Amendment Amount N/A
Total Contract Amount Based on Actual Usage
Cost Center Varies

INFORMATION TECHNOLOGY SERVICE REVENUE CONTRACT
This CONTRACT is entered into in the State of California by and between San Bernardino County, hereinafter called, “County”, and City of Ontario, hereinafter called “Customer”.

Name
City of Ontario
Address
303 East B Street
Ontario, CA 91674
Telephone
(909) 395 - 2000
Federal ID No. or Social Security No.

IT IS HEREBY AGREED AS FOLLOWS:

Contract Number
ITD-26002
SAP Number
N/A
183
Revised 1/10/23 Page 2 of 8
A. CONTRACTED SERVICES (Select all that apply):

General ITD Services (Attachment A)
Defined as all services contained in Attachment A “ITD Rate Sheet – External Customers” with exception to Public Safety Communication Services.

Public Safety Communications Services (Attachment B)
Defined under Public Safety Communication Services in Attachment B “ITD Rate Sheet – External Customers”.

Wide Area Network (WAN) Services (Attachment C)
Defined in Attachment C “Wide Area Network Services”.

B. PROVISION OF SERVICES
This is the County standard revenue contract to provide information technology services, hereinafter, “Services,” to Customer by the County Innovation and Technology Department, hereinafter, “ITD”.

Customer understands that County may elect to have other vendors provide similar professional services under other contracts.

All Services available under this Contract are listed in full in the Attachments and are detailed by Service name, Service description, rate, and charge measurement as applicable and as identified in the Attachments.

Services are initiated at Customer’s request, subject to ITD’s acceptance, and consist of the following types of charges, as further set forth in the Attachments:

B.1 Per item; one-time charge as requested.

B.2 Per month; per unit charge ongoing until Customer submits a request to cancel.

B.3 Per hour; per work order, project, or quote.

C. CUSTOMER RESPONSIBILITIES
Customer will:

C.1 Determine the Services needed, including any adjustments to ongoing Services.

C.2 Initiate or cancel any Services via submission of a Help Desk Ticket. Contact County Help Desk by calling: 909-884-4884 or [email protected] (email for non-urgent requests only).

C.3 Promptly inform County, in writing, of any pending changes in programs/funding applicable to Services provided herein.

D. COUNTY RESPONSIBILITIES
County will:

D.1 Provide the Services requested by Customer, subject to ITD’s approval, and in accordance with established work schedules and County Board of Supervisor (Board) approved service rates in effect at the time Service is provided.

D.2 Perform the Services in a workmanlike manner, but County assumes no liability for failure to provide or delay in providing Services under this Contract.

D.3 Furnish the necessary equipment and personnel to perform the Services, but County assumes no liability for equipment failure or adverse consequences cause by such failed equipment.

E. GENERAL CONTRACT REQUIREMENTS
E.1 Contract Amendments
Both parties agree that any alterations, variations, modifications, or waivers of the provisions of the Contract, shall be valid only when reduced to writing, executed and attached to the original Contract and approved by the person(s) authorized to do so on behalf of Customer and County.

E.2 Contract Assignability
184
Revised 1/10/23 Page 3 of 8
Without the prior written consent of the County, the Contract is not assignable by Customer either in whole or in part.

E.3 Permits
Customer is responsible for obtaining and paying any costs of all permits, licenses or approvals by any regulatory bodies having jurisdiction over the uses authorized herein, as appropriate.

E.4 Attorney’s Fees and Costs
If any legal action is instituted to enforce any party’s rights hereunder, each party shall bear its own costs and attorney fees, regardless of who is the prevailing party. This paragraph shall not apply to those costs and attorney fees directly arising from a third-party legal action against a party hereto and payable under Indemnification and Insurance Requirements.

E.5 Change of Address
Customer shall notify the County, in writing, of any change in mailing address within ten (10) business days of the change.

E.6 Choice of Law
This Contract shall be governed by and construed according to the laws of the State of California.

E.7 Confidentiality
To the extent applicable and with exception to Federal, State, Local Laws, and/or the California Public Records Act, if Customer is a business that collects the personal information of a consumer(s) in performing Services pursuant to this Contract, Contractor must comply with the provisions of the California Consumer Privacy Act (CCPA). (Cal. Civil Code §§1798.100, et seq.).

For purposes of this provision, “business,” “consumer,” and “personal information” shall have the same meanings as set forth at Civil Code section 1798.140. Customer must contact the County within 1 business day upon receipt of any request by a consumer submitted pursuant to the CCPA that requires any action on the part of the County, including but not limited to, providing a list of disclosures or deleting personal information. Customer must not sell, market or otherwise disclose personal information of a consumer provided by the County unless specifically authorized pursuant to terms of this Contract. Customer must immediately provide to the County any notice provided by a consumer to Customer pursuant to Civil Code section 1798.150(b) alleging a violation of the CCPA, that involves personal information received or maintained pursuant to this Contract. Customer must immediately notify the County if it receives a notice of violation from the California Attorney General pursuant to Civil Code section 1798.155(b).

Customer shall hold as confidential and use reasonable care to prevent unauthorized access by, storage, disclosure, publication, dissemination to and/or use by third parties of, confidential information that is either: (1) provided by the County to Customer or an agent of Customer or otherwise made available to Customer or Customer’s agent in connection with this Contract; or, (2) information and/or data acquired, obtained, or learned by Customer or an agent of Customer regarding this Contract.

For the purposes of this provision and consistent with California Civil Code Section 1798.29, PII, is any information that can be used to distinguish or trace an individual’s identity, for example, any combination of name, social security number, date and place of birth, mother’s maiden name, or biometric records; and any other information that is linked or linkable to an individual, such as medical, educational, financial, and employment information.

E.8 Primary Point of Contact
Customer will designate an individual to serve as the primary point of contact for the Contract.

Customer shall not change the primary contact without prior written notice to the County.

Customer will also designate a back-up point of contact in the event the primary contact is not available.

E.9 Contract Authorization
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Customer warrants and represents that the individual signing this Contract is a properly authorized representative of the Customer and has the full power and authority to enter into this Contract on the Customer’s behalf.

E.10 County Representative
The County Chief Information Officer or his/her designee shall represent the County in all matters pertaining to the Services to be rendered under this Contract, including termination and assignment of this Contract, and shall be the final authority in all matters pertaining to the Services/Scope of Work by County.

E.11 Duration of Terms
This Contract, and all of its terms and conditions, shall be binding upon and shall inure to the benefit of the heirs, executors, administrators, successors, and assigns of the respective parties, provided no such assignment is made in violation of the provisions of this Contract.

E.12 Legality and Severability
The parties’ actions under the Contract shall comply with all applicable laws, rules, regulations, court orders and governmental agency orders. The provisions of this Contract are specifically made severable. If a provision of the Contract is terminated or held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall remain in full effect.

E.13 Mutual Covenants
The parties to this Contract mutually covenant to perform all of their obligations hereunder, to exercise all discretion and rights granted hereunder, and to give all consents in a reasonable manner consistent with the standards of “good faith” and “fair dealing”.

E.14 Relationship of the Parties
Nothing contained in this Contract shall be construed as creating a joint venture, partnership, or employment arrangement between the parties hereto, nor shall either party have the right, power or authority to create an obligation or duty, expressed or implied, on behalf of the other Party hereto.

E.15 Release of Information
No news releases, advertisements, public announcements, or photographs arising out of the performance of the Contract or Customer’s relationship with County may be made or used without prior written approval of the County, as applicable.

E.16 Strict Performance
Failure by a party to insist upon the strict performance of any of the provisions of this Contract by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party’s right to insist and demand strict compliance by the other party with the terms of this Contract thereafter.

E.17 Subpoena
In the event that a subpoena or other legal process commenced by a third party in any way concerning the Services provided under this Contract is served upon Customer or County, such party agrees to notify the other party in the most expeditious fashion possible following receipt of such subpoena or other legal process. Customer and County further agree to cooperate with the other party in any lawful effort by such other party to contest the legal validity of such subpoena or other legal process commenced by a third party as may be reasonably required and at the expense of the party to whom the legal process is directed.

E.18 Termination for Convenience
The County and the Customer each reserve the right to terminate the Contract, for any reason, with a thirty (30) day written notice of termination. Such termination may include all or part of the Services provided hereunder. Upon such termination, payment will be made to the County for Services rendered and expenses reasonably incurred prior to the effective date of termination. Upon receipt of termination notice County shall promptly discontinue Services unless the notice directs otherwise. 186
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E.19 Contract Exclusivity
This is not an exclusive Contract. Customer reserves the right to enter into a contract with other contractors for the same or similar services. The Customer does not guarantee or represent that the County will be permitted to perform any minimum amount of work, or receive compensation other than on a per order basis, under the terms of this Contract.

E.20 Information Dispute Resolution
In the event the Customer determines that Service in unsatisfactory, or in the event of any other dispute, claim, question or disagreement arising from or relating to this Contract or breach thereof, the parties hereto shall use their best efforts to settle the dispute, claim, question or disagreement.

To this effect, they shall consult and negotiate with each other in good faith, and recognizing their mutual interests, attempt to reach a just and equitable solution satisfactory to both parties.

E.21 Venue
The parties acknowledge and agree that this Contract was entered into and intended to be performed in San Bernardino County, California. The parties agree that the venue of any action or claim brought by any party to this Contract will be the Superior Court of California, San Bernardino County, San Bernardino District. Each party hereby waives any law or rule of the court which would allow them to request or demand a change of venue. If any action or claim concerning this Contract is brought by any third party and filed in another venue, the parties hereto agree to use their best efforts to obtain a change of venue to the Superior Court of California, San Bernardino County, and San Bernardino District.

F. TERM OF CONTRACT
This Contract is effective as of July 1, 2026 (Effective Date) and remains in effect for a period of five (5) years, unless terminated earlier in accordance with provisions of this Contract.

G. TERMINATION OR SUSPENSION OF SERVICES
G.1 Immediate Suspension, Uncured Termination
The County may, in its sole discretion and without prior notice, immediately suspend all or part of the Servicesforbreach of any of the conditions identified below. The County will provide Customer a written notice of breach and allow the Customer 30 days to correct the condition giving rise to such breach. If the Customer fails to remedy the breach within the 30-day cure period, the County may immediately terminate the Services with no further notice required.

G.1.1 Customer shall comply with all applicable laws, statutes, ordinances, administrative orders, rules or regulations relating to its duties, obligations and performance under the terms of the Contract. Customer shall ensure that it has all necessary licenses and permits required by the laws of the United States, State of California, County, and all other appropriate governmental agencies, and agrees to maintain these licenses and permits in effect for the duration of the Agreement. Customer shall notify County immediately of loss or suspension of any such required licenses and permits.

G.1.2 Customer represents and warrants to County that (i) the information Customer provides in connection with registration for the Services is accurate and complete; (ii) Customer’s use of the System is not illegal, defamatory, malicious, harmful, or discriminatory based on race, sex, religion, nationality, disability, sexual orientation, or age; (iii) Customer’s use of the Services complies with all applicable laws, rules and regulations; (iv) Customer has obtained all consents and licenses required to legally access and use the System; (v) the execution and delivery of this Agreement will not conflict with, or violate any provision of, Customer’s charter, by-laws or other governing documents; and (vi) Customer has otherwise taken all necessary steps to legally execute this Agreement.

G.1.3 Customer agrees to abide by all existing and future security practices, policies and protocols established by the County, which the County has established to ensure the integrity of the System. Customer understands that the County closely monitors the 187
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System and may perform periodic security audits to provide insight into any potential abnormalities that may impact ensuring confidentiality, integrity, and availability.

G.1.4 Customer agrees to implement measures that are reasonable for Customer’s use of the System to prevent interference with the operation of the System. NEITHER COUNTY

NOR ANY OF ITS EMPLOYEES, AGENTS, REPRESENTATIVES, SERVICE

SUPPLIERSOR LICENSORS WILL BE LIABLE FOR UNAUTHORIZED ACCESS TO, MISUSE OF, CUSTOMER’S INABILITY TO ACCESS, OR DAMAGE TO THE SYSTEM OR CUSTOMER’S FIELD EQUIPMENT, EXCEPT TO THE EXTENT CAUSED BY COUNTY’SNEGLIGENCEORINTENTIONALMISCONDUCT,UNLESSANDONLYTO THE EXTENT THAT THIS DISCLAIMER IS PROHIBITED BY APPLICABLE LAW.

G.2 Immediate Termination
The County may, in its sole discretion and without prior notice, immediately suspend or terminate all or part of the Services for any of the conditions identified below. The County will promptly provide Customer a written notice of termination or suspension of Services to Customer.

G.2.1 County discovers that Customer provided false registration information, or that Customer lacked the capacity to enter into this Agreement at the time of its consummation; G.2.2 County determines, in its sole discretion, that Customer’s use of the Services poses a threat or an adverse effect to the security, privacy, or performance of the System or to any of County’s other users or suppliers;
G.2.3 County determines, in its sole discretion, that Customer’s use of the Services is illegal; G.2.4 County reasonably believes that Customer’s use of the Services has or will subject County to civil or criminal liability;
G.2.5 Customer fails to make any payment when due; or
G.2.6 Customer breaches any of the other material terms and conditions in this Agreement.

H. FISCAL PROVISIONS
H.1 There is no minimum or maximum amount of payment under this Contract.

H.2 Services are charged equitably to all customers in accordance with State Controller's Handbook of Cost Plan Procedures for California Counties.

H.3 Charges will be based on actual usage at the rates effective at the time Services are rendered (see Attachment A “ITD Rate Sheet – External Customers” and Attachment C “Wide Area Network Services”, if applicable). Rates are reviewed and subject to change annually based on the cost to provide services to Customers and are effective July 1st of each year. Rates are also subject to change throughout the year via a mid-year rate change, if deemed appropriate based on the cost to provide services to Customers being significantly higher or lower than anticipated during the annual review. County will not amend this Contract due to rate changes or changes in usage amounts by Customer. Attachment A includes the list of County service rates effective at the time this Contract is entered into. County will attempt to provide at least thirty (30) days advance written notice of any rate change, which will be sent to Customer at the following address:

City of Ontario
ATTN: Jose Andrade, IT Manager - Operations
303 East B Street Ontario, CA 91674
H.4 Services will be billed on a monthly basis for actual expenses incurred and claimed by ITD for the preceding month.

H.4.1 For Customers that use the County’s Enterprise Financial Management System:

Monthly charges will be handled by an automated transfer processed by ITD via the County’s Enterprise Financial Management System. A copy of the billing statement can 188
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be accessed via the ITD Billing System by Customer, provided that Customer has the necessary permission on the County’s network.

H.4.2 For Customers that do not use the County’s Enterprise Finance Management System:

County will mail an invoice on a monthly basis starting on the Effective Date of this Contract, or starting on the installation or implementation date, if applicable. Payment shall be due sixty (60) days from date of invoice.

Payment can be made by check or electronic funds transfer (EFT). Checks shall be made payable to San Bernardino County. Customers requesting to make payments to County via electronic funds transfer (EFT) directly deposited into the County’s designated bank account shall provide County with instructions to process EFT payments.

Payment address is:

Innovation and Technology Department
670 E. Gilbert Street, First Floor
San Bernardino, CA 92415-0915
Attn: Administration Services
I. DEFAULT
If the Customer does not make timely payment of amounts due under this Contract or breaches any term or condition of this Contract, County may declare immediately due and payable the entire unpaid amount, plus all other amounts due hereunder, less any unearned charges.

J. INDEMNIFICATION
The County agrees to defend and indemnify the Customer and its authorized officers, employees, agents and volunteers from any and all claims, actions, losses, damages, and/or liability arising solely out of the acts, errors or omissions of County in the performance of this Agreement, except where such indemnification is prohibited by law. At its sole discretion, Customer may participate at its own expense in the defense of any claim, action or proceeding, but such participation shall not relieve County of any obligation imposed by this Contract. Customer shall notify County promptly of any claim, action or proceeding and cooperate fully in the defense. Customer hereby agrees to defend and indemnify the County, its agents, officers and employees from any claim, action, or proceeding against County, arising solely out of the acts or omissions of Customer in the performance of this Agreement. At its sole discretion, County may participate at its own expense in the defense of any such claim, action or proceeding, but such participation shall not relieve Customer of any obligation imposed by this Contract.

County shall notify Customer promptly of any claim, action or proceeding and cooperate fully in the defense. In the event that County and/or Customer are determined to be comparatively at fault for any claim, action, loss or damage that results from their respective obligations under this Agreement, County and/or Customer shall indemnify the other to the extent of its comparative fault.

K. INSURANCE
County is an authorized self-insured public entity for purposes of General Liability and warrants that through its program of self-insurance, it has adequate coverage or resources to protect against liabilities arising out of the performance of the terms, conditions or obligations of this Agreement.

L. NOTICES
All written notices provided for in this Contract or which either party desires to give to the other shall be deemed fully given, when made in writing and either served personally, or by facsimile, or deposited in the United States mail, postage prepaid, and addressed to the other party as follows:

San Bernardino County
Innovation and Technology Department
City of Ontario
670 E. Gilbert Street, First Floor
San Bernardino, CA 92415-0915
303 East B Street
Ontario, CA 91674
Attn: Administration Services Attn: Jose Andrade, IT Manager - Operations 189
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Notice shall be deemed communicated two (2) County working days from the time of mailing if mailed as provided in this paragraph.

M. FORCE MAJEURE
Except for payment obligations and as otherwise provided herein, when either party has knowledge that any actual or potential situation is delaying or threatens to delay the timely performance of this Contract, that party shall, within twenty-four (24) hours, give notice thereof, including all relevant information with respect thereto, to the other party. County shall not be held liable for any delay or failure in performance of any part of this Contract from any cause beyond its control and without its fault or negligence, such as acts of God, acts of civil or military authority, government regulations, strikes, labor disputes, embargoes, epidemics, war, terrorist acts, riots, insurrections, fire, explosions, earthquakes, nuclear accidents, floods, power blackouts, brownouts, or surges, volcanic action, other major environmental disturbances, unusually severe weather conditions, inability to secure product or services of other persons or transportation facilities, or acts or omissions of transportation common carriers.

N. ENTIRE AGREEMENT
This Contract, including all Attachments, which are attached hereto and incorporated by reference, and other documents incorporated herein, represents the final, complete and exclusive agreement between the parties hereto. Any prior agreement, promises, negotiations or representations relating to the subject matter of this Contract not expressly set forth herein are of no force or effect. This Contract is executed without reliance upon any promise, warranty or representation by any party or any representative of any party other than those expressly contained herein. Each party has carefully read this Contract and signs the same of its own free will. This Contract may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, and such counterparts shall together constitute one and the same Contract. The parties shall be entitled to sign and transmit an electronic signature of this Contract (whether by facsimile, PDF or other email transmission), which signature shall be binding on the party whose name is contained therein. Each party providing an electronic signature agrees to promptly execute and deliver to the other party an original signed Contract upon request.

IN WITNESS WHEREOF, San Bernardino County and Customer have each caused this Contract to be subscribed by its respective duly authorized officers, on its behalf.

FOR COUNTY USE ONLY

SAN BERNARDINO COUNTY
(Print or type name of Customer)
By
Lynn Fyhrlund, Chief Information Officer (Authorized signature - sign in blue ink) Dated: ____________________ Name
(Print or type name of person signing contract)
Title
(Print or Type)
Dated:

Address
Approved as to Legal Form
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County Counsel
Date
191

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Ontario City CouncilJune 16, 2026

Ontario City Council
June 16, 2026