Agenda packet — Mayor and City Council, July 20, 2022 (part 7 of 9)

City of San Bernardino
Request for Council Action

CONSENT CALENDAR
Date: July 20, 2022
To: Honorable Mayor and City Council Members
From: Robert D. Field, City Manager;
Barbara Whitehorn, Agency Director of Administrative Services Department: Finance
Subject: Initiation of Proceedings to Form Proposed Community Facilities District No. 2022-1 (Highland/Medical)
Recommendation
The Mayor and City Council of the City of San Bernardino, California:

1. Adopt Resolution No. 2022-141of the Mayor and City Council of the City of San Bernardino, California, Declaring Intention to Establish Proposed Community Facilities District No. 2022-1 (Highland/Medical) of the City of San Bernardino;

2. Adopt Resolution No. 2022-142 of the Mayor and City Council of the City of San Bernardino, California, Declaring Necessity to Incur a Bonded Indebtedness of Proposed Community Facilities District No. 2022-1 (Highland/Medical) of the City of San Bernardino
Background
The City has received a petition from PI Properties, LLC, the owner of APN No. 0143-191- 59-0000 (the “Property”) requesting the formation of the proposed community facilities district, encompassing the Property, to finance:
(a) Acquisition, design, construction of local and regional circulation systems, storm drain improvements, parkland and open space, and sewer and water improvements (the “Facilities”); and
(b) The incidental expenses proposed to be incurred are: (i) the cost of planning and designing the public facilities and the cost of environmental evaluations thereof, (ii) all costs associated with the formation of the proposed community facilities district, the issuance of the bonds thereof, the determination of the amount of and collection of special taxes, the payment of special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the proposed community facilities district, and (iii) any other expenses incidental to the construction, completion, and inspection of the public Facilities (the “Incidental Expenses”).

The proposed development includes approximately 10.10 gross acres of zoned residential property to include 95 detached single-family residential lots. The Property is located south Packet Pg. 1617

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of W. Highland Ave. west of Medical Center Dr.

Discussion
Approval of the resolutions described above is the first step to establish the proposed community facilities district for the Property. The resolutions:
 approve the boundaries of the proposed community facilities district;  specify the Facilities to be financed;
 specify that special taxes will be levied on all parcels of taxable property in the proposed community facilities district to pay principal of and interest on the bonds of the district which will be issued to finance the Facilities,  declare the necessity to incur bonded indebtedness; and  schedule public hearings regarding the formation of the community facilities district and the necessity to incur bonded indebtedness.

The final steps for the formation of the proposed community facilities district will occur at the Mayor and City Council’s meeting on September 7, 2022. The Mayor and the City Council will conduct a public hearing on such day and following the public hearing may adopt resolutions to form the proposed community facilities district, determine the necessity to incur bonded indebtedness and call a special election of the qualified voters to approve the levy of special taxes and incur bonded indebtedness, conduct a special election and declare election results.
2021-2025 Key Strategic Targets and Goals
This project is consistent with Key Target No 1. Improved Operational & Financial Capacity and Key Target No. 4: Economic Growth & Development. This project will contribute to ensure that the City is clean and attractive and provide infrastructure designed for long term economic growth.

Financial Impact
No fiscal impact to the City as the costs for formation of Community Facilities District No. 2022-1 is paid through a deposit provided by the developer and on-going administrative costs are paid through the levy of special taxes within Community Facilities District No. 2022-

1. Conclusion
The Mayor and City Council of the City of San Bernardino, California:

1. Adopt Resolution No. 2022-141 of the Mayor and City Council of the City of San Bernardino, California, Declaring Intention to Establish Proposed Community Facilities District No. 2022-1 (Highland/Medical) of the City of San Bernardino;

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Attachments
Attachment 1 - Resolution Declaring Intention to Establish Attachment 2 - Resolution Declaring Necessity to Incur a Bonded Indebtedness Attachment 3 - Boundary Map
Ward: 6
Synopsis of Previous Council Actions
None previously taken.

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Resolution No. 2022-141
RESOLUTION NO. 2022-141

RESOLUTION OF THE MAYOR AND CITY COUNCIL OF

THE CITY OF SAN BERNARDINO, CALIFORNIA,

DECLARING INTENTION TO ESTABLISH PROPOSED
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(HIGHLAND/MEDICAL) OF THE CITY OF SAN

BERNARDINO
WHEREAS, the City Council (the “City Council”) of the City of San Bernardino (the “City”) has received a written petition from the owner of certain real property (the “Owner”) within the City of San Bernardino (the “City”) requesting that the City Council initiate proceedings for the formation of a community facilities district, pursuant to Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the “Mello-Roos Community Facilities Act of 1982,” (the “Act”) for the purpose of financing the public facilities which are necessary to meet increased demands placed upon the City as a result of the development of said real property; and WHEREAS, the Owner is the owner of all of the property which is proposed to be included within the proposed community facilities district; and WHEREAS, the Act provides that the City Council may initiate proceedings to establish a community facilities district only if it has first considered and adopted local goals and policies concerning the use of community facilities districts; and WHEREAS, the City Council has been presented with its Local Goals and Policies for all Community Facilities Districts of the City of San Bernardino (the “Policies”) for consideration, and the proposed public facilities comply with the Policies; and WHEREAS, pursuant to Section 53320 of the Act, having received such a petition, the City Council is required to institute proceedings for the formation of the proposed community facilities district by the adoption of a resolution of intention pursuant to Section 53321 of the Act.

BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:

SECTION 1. Findings. The above recitals are true and correct and are incorporated herein by this reference.

SECTION 2. Proposed Community Facilities District. A community facilities district is proposed to be established under the provisions of the Act. The name proposed for the community facilities district is “Community Facilities District No. 2022-1 (Highland/Medical) of the City of San Bernardino, County of San Bernardino, State of California” herein referred to as CFD No. 2022-1.

SECTION 3. Description and Map of Boundaries. The boundaries of the proposed CFD No. 2022-1 are described and shown on the map entitled “Proposed Boundary Map Community Packet Pg. 1621
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Facilities District No. 2022-1 (Highland/Medical) City of San Bernardino, County of San Bernardino, State of California,” which is on file with the City Clerk. Said map is approved and, pursuant to Section 3110 of the California Streets and Highways Code, the City Clerk shall, after conforming with the other requirements of Section 3111 of said Code, record the original of said map in her office, and not later than fifteen (15) days prior to the date of the public hearing set forth in Section 10 hereof shall file a copy of said map with the County Recorder of the County of San Bernardino.

SECTION 4. Types of Facilities; Incidental Expenses.

The types of public facilities to be financed by the proposed CFD No. 2022-1, which may be provided by the construction or acquisition thereof or the financing of impact fees to be used for the construction or acquisition thereof (herein, the “Facilities”) include but are not limited to:
(a) Acquisition, design, construction of local and regional circulation systems, storm drain improvements, parkland and open space, and sewer and water improvements; and
(b) The incidental expenses proposed to be incurred are: (i) the cost of planning and designing the public facilities and the cost of environmental evaluations thereof, (ii) all costs associated with the formation of the proposed CFD No. 2022-1, the issuance of the bonds thereof, the determination of the amount of and collection of special taxes, the payment of special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the proposed CFD No. 2022-1, and (iii) any other expenses incidental to the construction, completion, and inspection of the public Facilities (the “Incidental Expenses”).

SECTION 5. Special Taxes. Except where funds are otherwise available, a special tax sufficient to finance the Facilities and related Incidental Expenses secured by the recordation of a continuing lien against all taxable or nonexempt property in CFD No. 2022-1, shall be annually levied within CFD No. 2022-1.

Under no circumstances will Special Taxes levied in any fiscal year against any parcel used for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within CFD No. 2022-1 by more than 10 percent (10%) above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults. A parcel shall be considered “used for private residential purposes” not later than the date on which an occupancy permit or the equivalent for private residential use is issued and for such parcel.

For further particulars as to the rate and method of apportionment of the Special Taxes to be levied on parcels of taxable property in CFD No. 2022-1 reference is made to the attached and incorporated Exhibit A (the “Rate and Method”) which sets forth in sufficient detail the rate and method of apportionment of the Special Taxes to allow each landowner or resident within CFD No. 2022-1 to clearly estimate the maximum amount that such person will have to pay.

The conditions under which the obligation to pay Special Taxes may be prepaid and permanently satisfied are as set forth in the Rate and Method.

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Pursuant to Section 53340 of the Act, said Special Taxes shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided however, that CFD No. 2022-1 may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent assessor’s parcels as permitted by the Act.

Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the Special Taxes shall attach to all non-exempt real property in CFD No. 2022-1, and that lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien is canceled in accordance with law or until collection of the Special Taxes ceases.

SECTION 6. Exempt Properties. Pursuant to Section 53340 of the Act, and except as provided in Section 53317.3 of the Act, properties of entities of the state, federal, and local governments shall be exempt from the levy of Special Taxes.

SECTION 7. Necessity. The City Council finds that the Facilities described in Section 4 hereof are necessary to meet increased demands placed upon the City as a result of new development occurring within the boundaries of proposed CFD No. 2022-1.

SECTION 8. Repayment of Funds Advanced or Work-in-Kind. Pursuant to Section 53314.9 of the Act, the City Council proposes to accept advances of funds or work-in-kind from private persons or private entities and to provide, by resolution, for the use of those funds or that work-in-kind for any authorized purpose, including but not limited to, paying any costs incurred by the City in creating proposed CFD No. 2022-1, and to enter into an agreement, by resolution, with the person or entity advancing the funds or work-in-kind to repay funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work-in-kind, as determined by the City Council.

SECTION 9. Prohibition of Owner Contracts. Pursuant to Section 53329.5 of the Act, the City Council finds that the public interest will not be served by allowing the owners of property within proposed CFD No. 2022-1 to enter into a contract in accordance with subdivision (a) of that section, and that such owners shall not be permitted to elect to perform the work and enter into a written contract with the City for the construction for the Facilities pursuant to said Section 53329.5.

SECTION 10. Hearing. A public hearing on the formation of proposed CFD No. 2022- 1 shall be held at 7:00 p.m. on September 7, 2022 in the Bing Wong Auditorium of the Norman F. Feldheym Public Library located at 555 W. 6th Street, San Bernardino, California or via teleconference as directed by the City due to COVID-19 social distancing guidelines.

SECTION 11. Notice of Hearing. The City Clerk shall publish a notice of the time and place of said hearing as required by Section 53322 of the Act, and may also give notice of the time and place of said hearing by first-class mail to each registered voter and to each landowner within CFD No. 2022-1 as prescribed by Section 53322.4 of said Code. Said notice shall be published at least seven (7) days and mailed at least fifteen (15) days before the date of the hearing, and shall contain the information required by said Section 53322.

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SECTION 12. Report. The officers of the City who will be responsible for providing the proposed Facilities to be provided within and financed by proposed CFD No. 2022-1, if it is established, shall study proposed CFD No. 2022-1, and, at or before the time of said hearing, file a report or reports with the City Council containing a brief description of the Facilities by type which will in their opinion be required to adequately meet the needs of proposed CFD No. 2022- 1 and their estimate of the fair and reasonable cost of providing the Facilities and the related Incidental Expenses to be incurred in connection therewith. All such reports shall be made a part of the record of the hearing to be held pursuant to Section 10 hereof.

SECTION 13. Description of Voting Procedures. The voting procedures to be followed shall be pursuant to Section 53326 of the Act and pursuant to the applicable provisions of the California Election Code.

SECTION 14. Approval of Policies. The Policies are hereby approved as presented to the City Council at this meeting.

SECTION 15. CEQA. The City Council finds this Resolution is not subject to the California Environmental Quality Act (“CEQA”) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

SECTION 16. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable.

SECTION 17. Effective Date. This Resolution shall become effective immediately.

APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 20th day of July, 2022.

John Valdivia, Mayor
City of San Bernardino
Attest:

Genoveva Rocha, CMC, City Clerk
Approved as to form:

Sonia R. Carvalho, City Attorney
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CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss

CITY OF SAN BERNARDINO )
I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2022-141, adopted at a regular meeting held on the 20th day of July, 2022 by the following vote:

Council Members: AYES NAYS ABSTAIN ABSENT
SANCHEZ _____ _____ _______ _______
IBARRA _____ _____ _______ _______
FIGUEROA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
REYNOSO _____ _____ _______ _______
CALVIN _____ _____ _______ _______
ALEXANDER _____ _____ _______ _______
WITNESS my hand and official seal of the City of San Bernardino this ____ day of __________, 2022.
______________________________
Genoveva Rocha, CMC, City Clerk
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EXHIBIT A

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2022-1 (HIGHLAND/MEDICAL)

OF THE CITY OF SAN BERNARDINO
A Special Tax (all capitalized terms not otherwise defined herein are defined in Section A, “Definitions”, below) shall be applicable to each Assessor’s Parcel of Taxable Property located within the boundaries of Community Facilities District No. 2022-1 (Highland/Medical) of the City of San Bernardino ("CFD No. 2022-1"). The amount of Special Tax to be levied in each Fiscal Year, on an Assessor’s Parcel, shall be determined by the City Council of the City of San Bernardino, acting in its capacity as the legislative body of CFD No. 2022-1 by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, and Provisional Undeveloped Property that is not Exempt Property as set forth below. All of the real property, unless exempted by law or by the provisions hereof in Section F, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Accessory Dwelling Unit” means a residential unit of limited size including a smaller second unit that shares an Assessor’s Parcel as a Single Family Residential Property with a stand-alone Residential Unit.
"Acre” or “Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded parcel map or instrument. The square footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means the actual or reasonably estimated costs related to the administration of CFD No. 2022-1, levy on the Special Tax therein and payment of debt service on the outstanding Bonds, including but not limited to, the costs of computing the Special Taxes and preparing the Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting Special Taxes to the Trustee; the costs of the Trustee (including legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2022-1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2022-1 or any designee thereof of complying with continuing disclosure requirements of the City, CFD No. 2022-1 and any major property owner associated with applicable federal and state securities laws and the Act; litigation related to or arising out of CFD No. 2022-1; legal costs; compliance with continuing disclosure undertakings, the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Packet Pg. 1626
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Taxes; the costs of the City, CFD No. 2022-1 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses. Administration Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 2022- 1 for any other administrative purposes of CFD No. 2022-1, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.
"Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a building permit on or before May 1 st preceding the Fiscal Year in which the Special Tax is being levied. "Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
"Assessor’s Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification.
"Assigned Special Tax" means the Special Tax of that name described in Section D below. "Backup Special Tax" means the Special Tax of that name described in Section D below. "Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which Special Tax within CFD No. 2022-1 have been pledged. "Boundary Map" means a recorded map of the CFD which indicates the boundaries of the CFD.
"Building Permit" means the first legal document issued by a local agency giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include expired or cancelled building permits, or any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses. "Building Square Footage" or "BSF" means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the Building Permit for such Assessor’s Parcel.

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"Calendar Year" means the period commencing January 1 of any year and ending the following December 31.
"CFD” or “CFD No. 2022-1" means Community Facilities District No. 2022-1 (Highland/Medical) of the City of San Bernardino established by the City under the Act. “CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, and providing for the levy and collection of the Special Taxes.
“City” means the City of San Bernardino, State of California. "City Council" means the City Council of the City of San Bernardino, acting as the Legislative Body of CFD No. 2022-1, or its designee.
“Condominium Plan" means a condominium plan pursuant to California Civil Code, Section 6624 et seq.
"County" means the County of San Bernardino, State of California. "Developed Property" means all Assessor’s Parcels of Taxable Property that: (i) are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) a Building Permit for new construction was issued on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied. "Exempt Property" means all Assessor’s Parcels designated as being exempt from Special Taxes as provided for in Section F.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) o or recordation of a Condominium Plan pursuant to California Civil Code Section 6624 et seq. that creates individual lots for which Building Permits may be issued without further subdivision.
"Fiscal Year" means the period commencing on July 1st of any year and ending the following June 30th.
“Indenture” means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Category” means any of the categories listed in Table 1 of Section D. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 2022-1 in any Fiscal Year on any Assessor’s Parcel.

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“Multifamily Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing a building or buildings comprised of attached Residential Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the CFD Administrator. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a Building Permit(s) was issued for a non-residential use. The CFD Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property. "Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2. "Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1.
“Proportionately” means for Taxable Property for Special Tax that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Special Tax is the same for all Assessor’s Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property or Provisional Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is the same for all Assessor’s Parcels of Undeveloped Property or Provisional Undeveloped Property. "Provisional Undeveloped Property" means all Assessor’s Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section F, but cannot be classified as Exempt Property because to do so would be reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Section F. "Residential Property" means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more Residential Units. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the CFD Administrator. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Residential Property shall not be considered a Residential Unit for purposes of this RMA. “RMA" means this Rate and Method of Apportionment of Special Taxes. “Single Family Residential Property” means all Assessor’s Parcels of Residential Property other than Multifamily Property on an Assessor’s Parcel. "Special Tax" or “Special Taxes” means any of the special taxes authorized to be levied within CFD No. 2022-1 pursuant to the Act to fund the Special Tax Requirement. "Special Tax Requirement " means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to establish or replenish any reserve Packet Pg. 1629
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funds established under the Indenture in association with the Bonds to the extent that replenishment has not been included in the computation of the Special Tax Requirement in a previous Fiscal Year, (v) to cure any delinquencies in the amount of principal or interest on the Bonds that occurred in a previous Fiscal Year, and (vi) the collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 2022-1 provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Undeveloped Property as set forth in Step Three of Section E., less (vii) any amounts available to pay debt service or other periodic costs on the Bonds pursuant to the Indenture. "Taxable Property" means all Assessor’s Parcels within CFD No. 2022-1, which are not Exempt Property.
“Taxable Unit” means either a Residential Unit or an Acre. "Tract(s)" means an area of land within a subdivision identified by a particular tract number on a Final Map approved for the subdivision.
“Trustee” means the trustee, fiscal agent, or paying agent under the Indenture. "Undeveloped Property" means all Assessor’s Parcels of Taxable Property which are not Developed Property, Approved Property, Provisional Undeveloped Property. "Welfare Exempt Property" means, in any Fiscal Year, all Assessor’s Parcels within the boundaries of CFD No. 2022-1 that have been granted a welfare exemption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code.

B. SPECIAL TAX
Commencing Fiscal Year 2022-2023 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property, up to the applicable Maximum Special Tax to fund the Special Tax Requirement.

C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX
Each Fiscal Year, beginning with Fiscal Year 2022-2023, each Assessor’s Parcel within CFD No. 2022-1 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property.

Assessor’s Parcels of Developed Property shall further be classified as Residential Property or Non-Residential Property. Each Assessor’s Parcel of Residential Property shall further be classified as a Single Family Residential Property or Multifamily Property. Each Assessor’s Parcel of Single Family Residential Property shall be further assigned to a Land Use Category based on its Building Square Footage.

In the event that there are parent Assessor’s Parcel(s) for which one or more Building Permits have been issued and the County has not yet assigned final Assessor’s Parcel Number(s) to the lots on which the Residential Unit(s) have been or will be built (in accordance with the Final Packet Pg. 1630
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Map or Condominium Plan) on such parent Assessor’s Parcel, the amount of the Special Tax on such parent Assessor’s Parcel shall be determined as follows: (1) the CFD Administrator shall first determine an amount of the Maximum Special Tax levy for such Assessor’s Parcel, based on the classification of such Assessor’s Parcel as Undeveloped Property; (2) the amount of the Special Tax for the Residential Units on such Assessor’s Parcel for which Building Permits have been issued shall be determined based on the Developed Property Special Tax rates and such amounts shall be levied as Developed Property in accordance with Step 1 and, if applicable, Step 4 of Section E below; and (3) the amount of the Special Tax levy on the Taxable Property in such Assessor’s Parcel not subject to the Special Tax levy in clause (2) shall be equal to: (A) the percentage of the Maximum Special Tax rate levied on Undeveloped Property pursuant to Step 3 of Section E below, multiplied by the total of the amount determined in clause (1), less (B) the amount determined in clause (2).

D. MAXIMUM SPECIAL TAX

1. Developed Property
The Maximum Special Tax for each Assessor’s Parcel of Single Family Residential Property in any Fiscal Year shall be the greater of (i) the Assigned Special Tax or (ii) the Backup Special Tax.

The Maximum Special Tax for each Assessor’s Parcel of Non-Residential Property and Multifamily Property shall be the applicable Assigned Special Tax described in Table 1 of Section D.
a. Assigned Special Tax
Each Fiscal Year, each Assessor’s Parcel of Single Family Residential Property, Multifamily Property or Non-Residential Property shall be subject to an Assigned Special Tax. The Assigned Special Tax applicable to an Assessor's Parcel of Developed Property for Fiscal Year 2022-2023 shall be determined pursuant to Table 1 below.

TABLE 1

ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 2022-2023
Land Use Category
Taxable
Unit Building Square Footage
Assigned
Special Tax Per
Taxable Unit

1. Single Family Residential Property RU Less than 1,800 sq. ft $2,790

2. Single Family Residential Property RU 1,800 sq. ft to 2,000 sq. ft $3,080

3. Single Family Residential Property RU Greater than 2,000 sq. ft $3,209

4. Multifamily Property Acre N/A $49,620

5. Non-Residential Property Acre N/A $49,620
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b. Multiple Land Use Categories
In some instances an Assessor’s Parcel of Developed Property may contain more than one Land Use Type. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax for each Taxable Unit for all Land Use Categories located on the Assessor’s Parcel. The CFD Administrator’s allocation to each type of property shall be final. c. Backup Special Tax
The Backup Special Tax for an Assessor’s Parcel within a Final Map classified as Single Family Residential Property shall be calculated according to the following formula.

B = (U x A) / L
The terms above have the following meanings:

B = Backup Special Tax per Assessor’s Parcel classified as Single Family Residential Property within the Final Map.

U = Maximum Special Tax per Acre of Undeveloped Property per Section D.3 below.

A = Acreage of net taxable Single Family Residential Property that exists or is expected to exist in such Final Map at the time of calculation, as determined by the Administrator.

L = Number of Assessor’s Parcels of Single Family Residential Property expected to exist after build out in such Final Map at the time of calculation, as determined by the Administrator.

In the event any portion of the Final Map is changed or modified, the Backup Special Tax for all Assessor’s Parcels within such changed or modified area shall be $49,620 per Acre.

Notwithstanding the foregoing, the Backup Special Tax for an Assessor’s Parcel of Developer Property for which a certificate of occupancy has been granted may not be revised.

In the event any superseding Final Map is recorded as a Final Map within the boundaries of the CFD, the Backup Special Tax for all Assessor’s Parcels within such Final Map shall be $49,620 per Acre. The Backup Special Tax shall not apply to Multifamily Residential Property or Non-Residential Property.

2. Approved Property
The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified as Single Family Property shall be the Backup Special Tax computed pursuant to Section D.1.c above.

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The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified as Multifamily Residential Property or Non-Residential Property shall be $49,620 per Acre.

3. Undeveloped Property and Provisional Undeveloped Property The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property and Provisional Undeveloped Property shall be $49,620 per Acre.

E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing Fiscal Year 2022-2023 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property in accordance with the following steps:

Step One: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax rates in Table 1 to satisfy the Special Tax Requirement.

Step Two: If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Approved Property at up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.

Step Three: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Annual Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.

Step Four: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is the Backup Special Tax shall be increased in equal percentages from the Assigned Special Tax up to 100% of the Backup Special Tax as needed to satisfy the Special Tax Requirement.

Step Five: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Provisional Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.

Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal Year against any Assessor’s Parcel of Residential Property for which an occupancy permit for a private residential use has been issued as a result of a delinquency in the payment of the Special Tax applicable to any other Assessor’s Parcel be increased by more than ten percent (10%) Packet Pg. 1633
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above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default.

F. EXEMPTIONS
The City shall classify as Exempt Property, in the chronological order in which the property becomes exempt, (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a homeowners' association, (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely for public uses, or (vi) Assessor’s Parcels restricted to other types of public uses determined by the City Council, provided that no such classification would reduce the sum of all Taxable Property to less than 6.46 Acres.

Notwithstanding the above, the City Council shall not classify an Assessor’s Parcel as Exempt Property if such classification would reduce the sum of all Taxable Property to less than 6.46 Acres. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than 6.46 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E.

Welfare Exempt Property shall be exempt from the payment of the Special Tax so long as the property qualifies as a Welfare Exempt Property.

G. PREPAYMENT OF SPECIAL TAX
The following additional definitions apply to this Section G:
“CFD Public Facilities” means $4,000,000 expressed in 2022 dollars, which shall increase by the Construction Inflation Index on July 1, 2023, and on each July 1 thereafter, or such lower amount (i) determined by the City Council as sufficient to provide the public facilities under the authorized bonding program for CFD No. 2022-1, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds to be supported by Special Tax levied under this Rate and Method of Apportionment. “Construction Fund” means an account specifically identified in the Indenture or functionally equivalent to hold funds, which are currently available for expenditure to acquire or construct public facilities eligible under CFD No. 2022-1.
“Construction Inflation Index” means the annual percentage change in the Engineering NewsRecord Building Cost Index for the city of Los Angeles, measured as of the Calendar Year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Packet Pg. 1634
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Inflation Index shall be another index as determined by the City that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of Los Angeles. “Future Facilities Costs” means the CFD Public Facilities minus public facility costs available to be funded, or that were funded, through existing construction or escrow accounts or funded by the Outstanding Bonds or Special Taxes, and minus public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment. “Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Tax which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Tax.

1. Prepayment in Full
The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Approved Property or Undeveloped Property for which a Building Permit has been issued, (iii) Approved or Undeveloped Property for which a Building Permit has not been issued, and (iv) Assessor’s Parcels of Provisional Undeveloped Property. The Maximum Special Tax obligation applicable to an Assessor’s Parcel may be fully prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Maximum Special Tax obligation for such Assessor’s Parcel shall provide the CFD Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Prepayment Amount (as defined below) for the Assessor’s Parcel. Within 15 days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel.

Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Taxes.

The Prepayment Amount shall be calculated as follows (some capitalized terms are defined below):

Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Equals: Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:

1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.

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2. For an Assessor’s Parcel of Developed Property, compute the Maximum Special Tax for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for the Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped Property for which a Building Permit has not been issued, or Provisional Undeveloped Property to be prepaid, compute the Maximum Special Tax for the Assessor’s Parcel.

3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount of Special Taxes that could be levied the Maximum Special Tax assuming build out of all Assessor’s Parcels of Taxable Property based on the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property not including any Assessor’s Parcels for which the Special Tax obligation has been previously prepaid.

4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the Prepayment Amount (the “Bond Redemption Amount”).

5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).

6. Determine the Future Facilities Costs.

7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to determine the amount of Future Facilities Costs for the Assessor’s Parcel (the “Future Facilities Amount”).

8. Determine the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from Special Tax prepayments.

9. Determine the Special Taxes levied on the Assessor’s Parcel in the current Fiscal Year which have not yet been paid.

10. Determine the amount the CFD Administrator reasonably expects to derive from the investment of the Bond Redemption Amount and the Redemption Premium from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the Prepayment Amount.

11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”).

12. Verify the administrative fees and expenses of the CFD, the cost to invest the Prepayment Amount, the cost of redeeming the Outstanding Bonds, and the cost of recording Packet Pg. 1636
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notices to evidence the prepayment of the Maximum Special Tax obligation for the Assessor’s Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”).

13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.

14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the Administrative Fees and Expenses, less the Reserve Fund Credit.

15. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and Defeasance Amount shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Bonds or make debt service payments. The Future Facilities Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall be retained by the CFD.

The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds.

In such event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next redemption from other Special Tax prepayments of Outstanding Bonds or to make debt service payments.

As a result of the payment of the current Fiscal Year’s Special Tax levy as determined pursuant to paragraph 9 above, the CFD Administrator shall remove the current Fiscal Year’s Special Tax levy for the Assessor’s Parcel from the County tax roll. With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is prepaid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Maximum Special Tax obligation and the release of the Special Tax lien for the Assessor’s Parcel, and the obligation to pay the Special Tax for such Assessor’s Parcel shall cease.

Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Tax that may be levied on all non-delinquent Assessor’s Parcels of Taxable Property after the proposed prepayment will be at least 1.1 times maximum annual debt service on the Bonds that will remain outstanding after the prepayment plus the estimated annual Administrative Expenses.

Tenders of Bonds in prepayment of the Maximum Special Tax obligation may be accepted upon the terms and conditions established by the City Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the City Council.

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2. Prepayment in Part
The Maximum Special Tax obligation for an Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property may be partially prepaid. For purposes of determining the partial prepayment amount, the provisions of Section G.1 shall be modified as provided by the following formula:

PP = ((PE –A) x F) +A
These terms have the following meaning:

PP = Partial Prepayment Amount
PE = the Prepayment Amount calculated according to Section G.1 F = the percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the Maximum Special Tax obligation
A = the Administrative Fees and Expenses determined pursuant to Section G.1 The owner of an Assessor’s Parcel who desires to partially prepay the Maximum Special Tax obligation for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any. Within 5 days of receipt of such notice, the CFD Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the amount of a partial prepayment. Within 15 business days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the amount of the Partial Prepayment Amount for the Assessor’s Parcel. A Partial Prepayment Amount must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment Amount.

With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is partially prepaid, the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in Paragraph 15 of Section G.1, and (ii) indicate in the records of the CFD that there has been a Partial Prepayment Amount for the Assessor’s Parcel and that a portion of the Special Tax obligation equal to the remaining percentage (1.00 - F) of Special Tax obligation will continue on the Assessor’s Parcel pursuant to Section E.

H. TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Special Tax shall be levied on all Assessor’s Parcels subject to the Special Tax. The Special Tax shall cease not later than the 2064-2065 Fiscal Year, however, Special Tax will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all the required interest and principal payments on the CFD No. 2022-1 Bonds have been paid; (ii) all authorized facilities of CFD No. 2022-1 have been acquired and all reimbursements to the developer have been paid, (iii) no delinquent Special Tax remain uncollected and (iv) all other obligations of CFD No. 2022-1 have been satisfied.

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I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2022-1 may collect Special Tax at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act.

J. APPEALS OF SPECIAL TAXES
Any taxpayer may file a written appeal of the Special Taxes on his/her Assessor’s Parcel(s) with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant’s Assessor’s Parcel(s). No refunds of previously paid Special Taxes shall be made.

The CFD Administrator shall interpret this Rate and Method of Apportionment and make determinations relative to the annual levy and administration of the Special Taxes and any taxpayer who appeals, as herein specified.

Packet Pg. 1639
Resolution No. 2022-142
RESOLUTION NO. 2022-142

RESOLUTION OF THE MAYOR AND CITY COUNCIL OF

THE CITY OF SAN BERNARDINO, CALIFORNIA

DECLARING NECESSITY TO INCUR A BONDED

INDEBTEDNESS OF PROPOSED COMMUNITY
FACILITIES DISTRICT NO. 2022-1
(HIGHLAND/MEDICAL) OF THE CITY OF SAN

BERNARDINO
WHEREAS, pursuant to Section 53321 of the California Government Code, the City Council (the “City Council”) of the City of San Bernardino (the “City”) has adopted a resolution (the “Resolution of Intention”) declaring its intention to establish proposed Community Facilities District No. 2022-1 (Highland/Medical) of the City of San Bernardino, County of Riverside, State of California (“CFD No. 2022-1”), for the purpose of providing and financing certain public facilities described in Exhibit A attached hereto and incorporated herein by this reference (the “Facilities”) which are necessary to meet increased demands placed upon the City as a result of development which will occur within CFD No. 2022-1; and WHEREAS, the City Council has determined that it is necessary for proposed CFD No. 2022-1 to incur a bonded indebtedness for the purpose of providing and financing such Facilities; and
WHEREAS, it is the intention of this City Council to finance the acquisition or construction of all or a portion of such Facilities through the levy of special taxes on taxable property within CFD No. 2022-1 and the issuance of bonds of CFD No. 2022-1, such bonds to be secured by such special taxes to be levied on taxable property within CFD No. 2022-1, all as authorized pursuant to the Act.

BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:

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

SECTION 2. Declaration of Convenience and Necessity. This City Council declares that the public convenience and necessity requires that a bonded indebtedness be incurred by CFD No. 2022-1 to contribute to the financing of all or a portion of the Facilities.

SECTION 3. Purpose for Proposed Indebtedness. The purpose for the proposed debt of CFD No. 2022-1 is to contribute to the financing of the acquisition or construction of the Facilities.

SECTION 4. Bond Authorization. The amount of the bonded indebtedness of CFD No. 2022-1 may include all costs and estimated costs incidental to, or connected with, the accomplishment of the purpose for which the indebtedness is proposed to be incurred as authorized pursuant to the Act. The amount of the indebtedness proposed to be authorized for CFD No. 2022-1 is $5,000,000.

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Resolution No. 2022-142
-2-
SECTION 5. Hearing. A public hearing on the proposed bonded indebtedness for CFD No. 2022-1 shall be held at 7:00 p.m. on September 7, 2022, in the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California or via teleconference as directed by the City due to COVID-19 social distancing guidelines. Said hearing shall be conducted concurrently with the hearing on the formation of CFD No. 2022-1.

SECTION 6. Notice. The City Clerk shall publish a notice of the time and place of said hearing pursuant to Section 53346 of the Act and may also give notice of the time and place of said hearing by first-class mail to each registered voter and to each landowner within CFD No. 2022-1.

SECTION 7. CEQA. The City Council finds this Resolution is not subject to the California Environmental Quality Act (“CEQA”) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

SECTION 8. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable.

SECTION 9. Effective Date. This Resolution shall become effective immediately.

APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 20th day of July, 2022.
____________________________________
John Valdivia, Mayor
City of San Bernardino
Attest:
__________________________________
Genoveva Rocha, CMC, City Clerk
Approved as to form:
__________________________________
Sonia R. Carvalho, City Attorney
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Resolution No. 2022-142
-3-

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss

CITY OF SAN BERNARDINO )
I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2022-142, adopted at a regular meeting held on the 20th day of July, 2022 by the following vote:

EXHIBIT A

FACILITIES
The types of public facilities to be financed by the proposed CFD No. 2022-1, which may be provided by the construction or acquisition thereof or the financing of impact fees to be used for the construction or acquisition thereof (herein, the “Facilities”) include but are not limited to:
(a) Acquisition, design, construction of local and regional circulation systems, storm drain improvements, parkland and open space, and sewer and water improvements; and
(b) The incidental expenses proposed to be incurred are: (i) the cost of planning and designing the public facilities and the cost of environmental evaluations thereof, (ii) all costs associated with the formation of the proposed CFD No. 2022-1, the issuance of the bonds thereof, the determination of the amount of and collection of special taxes, the payment of special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the proposed CFD No. 2022-1, and (iii) any other expenses incidental to the construction, completion, and inspection of the public Facilities.

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20TH ST

HIGHLAND AVE

MADISON ST

GARDENA ST
0143-191-59
·|þ}210

PROPOSED BOUNDARY MAP
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(HIGHLAND/MEDICAL)

CITY OF SAN BERNARDINO

COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA
SHEET 1 OF 1 SHEET
I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSEDBOUNDARIES OF COMMUNITY FACILITIES DISTRICT 2022-1(HIGHLAND/MEDICAL) FOR THE CITY OF SAN BERNARDINO,COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, WASAPPROVED BY THE CITY COUNCIL OF THE CITY OF SANBERNARDINO AT A REGULAR MEETING THEREOF, HELDON THE ____ DAY OF ____________________, 20 ____. BY ITS RESOLUTION NO. ____________________ _________________________________________ CITY CLERK, CITY OF SAN BERNARDINO FILED IN THE OFFICE OF THE CITY CLERK THIS _____ DAY OF________, 20 ____. _________________________________________ CITY CLERK, CITY OF SAN BERNARDINO CFD 2022-1
_
£¤66
£¤66
£¤66 §¨¦215
§¨¦10
·|þ}259
·|þ}330
·|þ}18
·|þ}210
THIS BOUNDARY MAP CORRECTLY SHOWS THE BOUNDARIESOF THE COMMUNITY FACILITIES DISTRICT. FOR DETAILSCONCERNING THE LINES AND DIMENSIONS OF LOTS ORPARCEL REFER TO THE COUNTY ASSESSOR'S MAPS FORFISCAL YEAR 2021-22. 02 125 50 500 Feet
LEGEND

CFD BOUNDARYPARCEL BOUNDARY

XXXX-XXX-XX ASSESSOR PARCEL NUMBER

CITY BOUNDARY
-
THIS MAP WAS FILED UNDER DOCUMENT NUMBER_____________, THIS ____ DAY OF _______, 20 ____, AT_____ M. IN BOOK ___ OF __________ AT PAGE ____, ATTHE REQUEST OF _____________________________IN THE AMOUNT OF $_________ BOB DUTTONASSESSOR-RECORDER SAN BERNARDINO COUNTY BY:________________________________

DEPUTY RECORDER

SAN BERNARDINO COUNTY RECORDER'S CERTIFICATE
   
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City of San Bernardino
Request for Council Action

CONSENT

CALENDAR
Date: July 20, 2022
To: Honorable Mayor and City Council Members
From: Robert D. Field, City Manager;
Barbara Whitehorn, Director of Finance
Department: Finance
Subject: Initiation of Proceedings to Form Proposed
Community Facilities District No. 2022-2
(Palm)
Recommendation:

The Mayor and City Council of the City of San Bernardino, California:

1. Adopt Resolution No. 2022-143 of the Mayor and City Council of the City of San Bernardino, California, Declaring Intention to Establish Proposed Community Facilities District No. 2022-2 (Palm) of the City of San Bernardino;

2. Adopt Resolution No. 2022-144 of the Mayor and City Council of the City of San Bernardino, California, Declaring Necessity to Incur a Bonded Indebtedness of Proposed Community Facilities District No. 2022-2 (Palm) of the City of San Bernardino
Background:

The City has received petitions from Pacific West Company, the owner of APN Nos. 0285- 211-21-00000, 0285-211-23-0000, and 0285-211-22-0000, and Hanhsing Li, Chenmei Cheng, and Ann C. Lau, the owners of APN Nos. 0285-211-05-0000 and 0285-211-25-0000, (the “Property”) requesting the formation of the proposed community facilities district, encompassing the Property, to finance:
(a) Acquisition, design, construction of local and regional circulation systems, storm drain improvements, and parkland and open space (the “Facilities”); and (b) The incidental expenses proposed to be incurred are: (i) the cost of planning and designing the public facilities and the cost of environmental evaluations thereof, (ii) all costs associated with the formation of the proposed community facilities district, the issuance of the bonds thereof, the determination of the amount of and collection of special taxes, the payment of special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the proposed community facilities district, and (iii) any other expenses incidental to the construction, completion, and inspection of the public Facilities (the “Incidental Expenses”).

The proposed development includes approximately 15.51 gross acres of zoned residential property to include 133 detached single-family residential lots. The Property is located at the Packet Pg. 1645

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northwest intersection of E Highland Ave. and N Palm Ave.

Discussion:

Approval of the resolutions described above is the first step to establish the proposed community facilities district for the Property. The resolutions:
 approve the boundaries of the proposed community facilities district;  specify the Facilities to be financed;
 specify that special taxes will be levied on all parcels of taxable property in the proposed community facilities district to pay principal of and interest on the bonds of the district which will be issued to finance the Facilities,  declare the necessity to incur bonded indebtedness; and  schedule public hearings regarding the formation of the community facilities district and the necessity to incur bonded indebtedness.

Should you have any questions, someone from our office will be present at the meeting for your convenience.
2021-2025 Key Strategic Targets and Goals:

This project is consistent with Key Target No 1. Improved Operational & Financial Capacity and Key Target No. 4: Economic Growth & Development. This project will contribute to ensure that the City is clean and attractive and provide infrastructure designed for long term economic growth.

Fiscal Impact:

No fiscal impact to the City as the costs for formation of Community Facilities District No. 2022- 2 is paid through a deposit provided by the developer and on-going administrative costs are paid through the levy of special taxes within Community Facilities District No. 2022-2.

Conclusion:

The Mayor and City Council of the City of San Bernardino, California:

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Attachments:

Attachment 1 - Resolution Declaring Intention to Establish Attachment 2 - Resolution Declaring Necessity to Incur a Bonded Indebtedness Attachment 3 - Boundary Map
Ward: 4
Synopsis of Previous Council Actions:

None previously taken.

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Resolution No. 2022-143
Resolution No. 2022-143
July 20, 2022

Page 1 of 3 ends

RESOLUTION NO. 2022-143

RESOLUTION OF THE MAYOR AND CITY COUNCIL OF

THE CITY OF SAN BERNARDINO, CALIFORNIA,

DECLARING INTENTION TO ESTABLISH PROPOSED
COMMUNITY FACILITIES DISTRICT NO. 2022-2 (PALM)

OF THE CITY OF SAN BERNARDINO
WHEREAS, the City Council (the “City Council”) of the City of San Bernardino (the “City”) has received a written petition from the owners of certain real property (the “Owner’) within the City of San Bernardino (the “City”) requesting that the City Council initiate proceedings for the formation of a community facilities district, pursuant to Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the “Mello-Roos Community Facilities Act of 1982,” (the “Act”) for the purpose of financing the public facilities which are necessary to meet increased demands placed upon the City as a result of the development of said real property; and WHEREAS, the Owners are the owners of all of the property which is proposed to be included within the proposed community facilities district; and WHEREAS, the Act provides that the City Council may initiate proceedings to establish a community facilities district only if it has first considered and adopted local goals and policies concerning the use of community facilities districts; and WHEREAS, the City Council has been presented with its Local Goals and Policies for all Community Facilities Districts of the City of San Bernardino (the “Policies”) for consideration, and the proposed public facilities comply with the Policies; and WHEREAS, pursuant to Section 53320 of the Act, having received such a petition, the City Council is required to institute proceedings for the formation of the proposed community facilities district by the adoption of a resolution of intention pursuant to Section 53321 of the Act.

BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:

SECTION 1. Findings. The above recitals are true and correct and are incorporated herein by this reference.

SECTION 2. Proposed Community Facilities District. A community facilities district is proposed to be established under the provisions of the Act. The name proposed for the community facilities district is “Community Facilities District No. 2022-2 (Palm) of the City of San Bernardino, County of San Bernardino, State of California” herein referred to as CFD No. 2022-

2. SECTION 3. Description and Map of Boundaries. The boundaries of the proposed CFD No. 2022-2 are described and shown on the map entitled “Proposed Boundary Map Community Packet Pg. 1649
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Facilities District No. 2022-2 (Palm) City of San Bernardino, County of San Bernardino, State of California,” which is on file with the City Clerk. Said map is approved and, pursuant to Section 3110 of the California Streets and Highways Code, the City Clerk shall, after conforming with the other requirements of Section 3111 of said Code, record the original of said map in her office, and not later than fifteen (15) days prior to the date of the public hearing set forth in Section 10 hereof shall file a copy of said map with the County Recorder of the County of San Bernardino.

SECTION 4. Types of Facilities; Incidental Expenses.

The types of public facilities to be financed by the proposed CFD No. 2022-2, which may be provided by the construction or acquisition thereof or the financing of impact fees to be used for the construction or acquisition thereof (herein, the “Facilities”) include but are not limited to:
(a) Acquisition, design, construction of local and regional circulation systems, storm drain improvements, and parkland and open space; and (b) The incidental expenses proposed to be incurred are: (i) the cost of planning and designing the public facilities and the cost of environmental evaluations thereof, (ii) all costs associated with the formation of the proposed CFD No. 2022-2, the issuance of the bonds thereof, the determination of the amount of and collection of special taxes, the payment of special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the proposed CFD No. 2022-2, and (iii) any other expenses incidental to the construction, completion, and inspection of the public Facilities (the “Incidental Expenses”).

Under no circumstances will Special Taxes levied in any fiscal year against any parcel used for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within CFD No. 2022-2 by more than 10 percent (10%) above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults. A parcel shall be considered “used for private residential purposes” not later than the date on which an occupancy permit or the equivalent for private residential use is issued and for such parcel.

For further particulars as to the rate and method of apportionment of the Special Taxes to be levied on parcels of taxable property in CFD No. 2022-2 reference is made to the attached and incorporated Exhibit A (the “Rate and Method”) which sets forth in sufficient detail the rate and method of apportionment of the Special Taxes to allow each landowner or resident within CFD No. 2022-2 to clearly estimate the maximum amount that such person will have to pay.

The conditions under which the obligation to pay Special Taxes may be prepaid and permanently satisfied are as set forth in the Rate and Method.

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Pursuant to Section 53340 of the Act, said Special Taxes shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided however, that CFD No. 2022-2 may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent assessor’s parcels as permitted by the Act.

Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the Special Taxes shall attach to all non-exempt real property in CFD No. 2022-2, and that lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien is canceled in accordance with law or until collection of the Special Taxes ceases.

SECTION 8. Repayment of Funds Advanced or Work-in-Kind. Pursuant to Section 53314.9 of the Act, the City Council proposes to accept advances of funds or work-in-kind from private persons or private entities and to provide, by resolution, for the use of those funds or that work-in-kind for any authorized purpose, including but not limited to, paying any costs incurred by the City in creating proposed CFD No. 2022-2, and to enter into an agreement, by resolution, with the person or entity advancing the funds or work-in-kind to repay funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work-in-kind, as determined by the City Council.

SECTION 9. Prohibition of Owner Contracts. Pursuant to Section 53329.5 of the Act, the City Council finds that the public interest will not be served by allowing the owners of property within proposed CFD No. 2022-2 to enter into a contract in accordance with subdivision (a) of that section, and that such owners shall not be permitted to elect to perform the work and enter into a written contract with the City for the construction for the Facilities pursuant to said Section 53329.5.

SECTION 10. Hearing. A public hearing on the formation of proposed CFD No. 2022-2 shall be held at 7:00 p.m. on September 7, 2022 in the Bing Wong Auditorium of the Norman F.

Feldheym Public Library located at 555 W. 6th Street, San Bernardino, California or via teleconference as directed by the City due to COVID-19 social distancing guidelines.

SECTION 11. Notice of Hearing. The City Clerk shall publish a notice of the time and place of said hearing as required by Section 53322 of the Act, and may also give notice of the time and place of said hearing by first-class mail to each registered voter and to each landowner within CFD No. 2022-2 as prescribed by Section 53322.4 of said Code. Said notice shall be published at least seven (7) days and mailed at least fifteen (15) days before the date of the hearing, and shall contain the information required by said Section 53322.

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SECTION 12. Report. The officers of the City who will be responsible for providing the proposed Facilities to be provided within and financed by proposed CFD No. 2022-2, if it is established, shall study proposed CFD No. 2022-2, and, at or before the time of said hearing, file a report or reports with the City Council containing a brief description of the Facilities by type which will in their opinion be required to adequately meet the needs of proposed CFD No. 2022- 2 and their estimate of the fair and reasonable cost of providing the Facilities and the related Incidental Expenses to be incurred in connection therewith. All such reports shall be made a part of the record of the hearing to be held pursuant to Section 10 hereof.

SECTION 14. Approval of Policies. The Policies are hereby approved as presented to the City Council at this meeting.

SECTION 17. Effective Date. This Resolution shall become effective immediately.

APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 20th day of July, 2022.

John Valdivia, Mayor
City of San Bernardino
Attest:

Genoveva Rocha, CMC, City Clerk
Approved as to form:

Sonia R. Carvalho, City Attorney
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CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss

CITY OF SAN BERNARDINO )
I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2022-___, adopted at a regular meeting held on the 20th day of July, 2022 by the following vote:

EXHIBIT A

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2022-2 (PALM)

OF THE CITY OF SAN BERNARDINO
A Special Tax (all capitalized terms not otherwise defined herein are defined in Section A, “Definitions”, below) shall be applicable to each Assessor’s Parcel of Taxable Property located within the boundaries of Community Facilities District No. 2022-2 (Palm) of the City of San Bernardino ("CFD No. 2022-2"). The amount of Special Tax to be levied in each Fiscal Year, on an Assessor’s Parcel, shall be determined by the City Council of the City of San Bernardino, acting in its capacity as the legislative body of CFD No. 2022-2 by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, and Provisional Undeveloped Property that is not Exempt Property as set forth below. All of the real property, unless exempted by law or by the provisions hereof in Section F, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Accessory Dwelling Unit” means a residential unit of limited size including a smaller second unit that shares an Assessor’s Parcel as a Single Family Residential Property with a stand-alone Residential Unit.
"Acre” or “Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded parcel map or instrument. The square footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means the actual or reasonably estimated costs related to the administration of CFD No. 2022-2, levy on the Special Tax therein and payment of debt service on the outstanding Bonds, including but not limited to, the costs of computing the Special Taxes and preparing the Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting Special Taxes to the Trustee; the costs of the Trustee (including legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2022-2 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2022-2 or any designee thereof of complying with continuing disclosure requirements of the City, CFD No. 2022-2 and any major property owner associated with applicable federal and state securities laws and the Act; litigation related to or arising out of CFD No. 2022-2; legal costs; compliance with continuing disclosure undertakings, the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs Packet Pg. 1654
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of the City, CFD No. 2022-2 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses. Administration Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 2022-2 for any other administrative purposes of CFD No. 2022-2, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a building permit on or before May 1 st preceding the Fiscal Year in which the Special Tax is being levied. "Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
"Assessor’s Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification.
"Assigned Special Tax" means the Special Tax of that name described in Section D below. "Backup Special Tax" means the Special Tax of that name described in Section D below. "Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which Special Tax within CFD No. 2022-2 have been pledged. "Boundary Map" means a recorded map of the CFD which indicates the boundaries of the CFD. "Building Permit" means the first legal document issued by a local agency giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include expired or cancelled building permits, or any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses.
"Building Square Footage" or "BSF" means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the Building Permit for such Assessor’s Parcel.
"Calendar Year" means the period commencing January 1 of any year and ending the following December 31.

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"CFD” or “CFD No. 2022-2" means Community Facilities District No. 2022-2 (Palm) of the City of San Bernardino established by the City under the Act. “CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, and providing for the levy and collection of the Special Taxes.
“City” means the City of San Bernardino, State of California. "City Council" means the City Council of the City of San Bernardino, acting as the Legislative Body of CFD No. 2022-2, or its designee.
“Condominium Plan" means a condominium plan pursuant to California Civil Code, Section 6624 et seq.
"County" means the County of San Bernardino, State of California. "Developed Property" means all Assessor’s Parcels of Taxable Property that: (i) are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) a Building Permit for new construction was issued on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied. "Exempt Property" means all Assessor’s Parcels designated as being exempt from Special Taxes as provided for in Section F.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) o or recordation of a Condominium Plan pursuant to California Civil Code Section 6624 et seq. that creates individual lots for which Building Permits may be issued without further subdivision.
"Fiscal Year" means the period commencing on July 1st of any year and ending the following June 30th.
“Indenture” means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same.
“Land Use Category” means any of the categories listed in Table 1 of Section D. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 2022-2 in any Fiscal Year on any Assessor’s Parcel.
“Multifamily Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing a building or buildings comprised of attached Residential Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the CFD Administrator.

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"Non-Residential Property" means all Assessor's Parcels of Developed Property for which a Building Permit(s) was issued for a non-residential use. The CFD Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property. "Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2. "Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1.
“Proportionately” means for Taxable Property for Special Tax that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Special Tax is the same for all Assessor’s Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property or Provisional Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is the same for all Assessor’s Parcels of Undeveloped Property or Provisional Undeveloped Property. "Provisional Undeveloped Property" means all Assessor’s Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section F, but cannot be classified as Exempt Property because to do so would be reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Section F. "Residential Property" means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more Residential Units. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the CFD Administrator. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Residential Property shall not be considered a Residential Unit for purposes of this RMA. “RMA" means this Rate and Method of Apportionment of Special Taxes. “Single Family Residential Property” means all Assessor’s Parcels of Residential Property other than Multifamily Property on an Assessor’s Parcel.
"Special Tax" or “Special Taxes” means any of the special taxes authorized to be levied within CFD No. 2022-2 pursuant to the Act to fund the Special Tax Requirement. "Special Tax Requirement " means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to establish or replenish any reserve funds established under the Indenture in association with the Bonds to the extent that replenishment has not been included in the computation of the Special Tax Requirement in a previous Fiscal Year, (v) to cure any delinquencies in the amount of principal or interest on the Bonds that occurred in a previous Fiscal Year, and (vi) the collection or accumulation of funds for the acquisition or Packet Pg. 1657
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construction of facilities authorized by CFD No. 2022-2 provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Undeveloped Property as set forth in Step Three of Section E., less (vii) any amounts available to pay debt service or other periodic costs on the Bonds pursuant to the Indenture.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2022-2, which are not Exempt Property.
“Taxable Unit” means either a Residential Unit or an Acre. "Tract(s)" means an area of land within a subdivision identified by a particular tract number on a Final Map approved for the subdivision.
“Trustee” means the trustee, fiscal agent, or paying agent under the Indenture. "Undeveloped Property" means all Assessor’s Parcels of Taxable Property which are not Developed Property, Approved Property, Provisional Undeveloped Property. "Welfare Exempt Property" means, in any Fiscal Year, all Assessor’s Parcels within the boundaries of CFD No. 2022-1 that have been granted a welfare exemption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code.

C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX
Each Fiscal Year, beginning with Fiscal Year 2022-2023, each Assessor’s Parcel within CFD No. 2022-2 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property.

In the event that there are parent Assessor’s Parcel(s) for which one or more Building Permits have been issued and the County has not yet assigned final Assessor’s Parcel Number(s) to the lots on which the Residential Unit(s) have been or will be built (in accordance with the Final Map or Condominium Plan) on such parent Assessor’s Parcel, the amount of the Special Tax on such parent Assessor’s Parcel shall be determined as follows: (1) the CFD Administrator shall first determine an amount of the Maximum Special Tax levy for such Assessor’s Parcel, based on the classification of such Assessor’s Parcel as Undeveloped Property; (2) the amount of the Special Packet Pg. 1658
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Tax for the Residential Units on such Assessor’s Parcel for which Building Permits have been issued shall be determined based on the Developed Property Special Tax rates and such amounts shall be levied as Developed Property in accordance with Step 1 and, if applicable, Step 4 of Section E below; and (3) the amount of the Special Tax levy on the Taxable Property in such Assessor’s Parcel not subject to the Special Tax levy in clause (2) shall be equal to: (A) the percentage of the Maximum Special Tax rate levied on Undeveloped Property pursuant to Step 3 of Section E below, multiplied by the total of the amount determined in clause (1), less (B) the amount determined in clause (2).

D. MAXIMUM SPECIAL TAX

TABLE 1

ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 2022-2023
Land Use Category
Taxable
Unit Building Square Footage
Assigned
Special Tax Per
Taxable Unit

1. Single Family Residential Property RU Less than 1,800 sq. ft $1,552

2. Single Family Residential Property RU 1,800 sq. ft to 1,950 sq. ft $1,595

3. Single Family Residential Property RU 1,951 sq. ft to 2,100 sq. ft $1,637

4. Single Family Residential Property RU 2,101 sq. ft to 2,250 sq. ft $1,764

5. Single Family Residential Property RU 2,251 sq. ft to 2,400 sq. ft $1,806

6. Single Family Residential Property RU Greater than 2,400 sq. ft $1,849

7. Multifamily Property Acre N/A $27,459

8. Non-Residential Property Acre N/A $27,459
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b. Multiple Land Use Categories
In some instances an Assessor’s Parcel of Developed Property may contain more than one Land Use Type. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax for each Taxable Unit for all Land Use Categories located on the Assessor’s Parcel. The CFD Administrator’s allocation to each type of property shall be final. c. Backup Special Tax
The Backup Special Tax for an Assessor’s Parcel within a Final Map classified as Single Family Residential Property shall be calculated according to the following formula.

B = (U x A) / L
The terms above have the following meanings:

B = Backup Special Tax per Assessor’s Parcel classified as Single Family Residential Property within the Final Map.

U = Maximum Special Tax per Acre of Undeveloped Property per Section D.3 below.

A = Acreage of net taxable Single Family Residential Property that exists or is expected to exist in such Final Map at the time of calculation, as determined by the Administrator.

L = Number of Assessor’s Parcels of Single Family Residential Property expected to exist after build out in such Final Map at the time of calculation, as determined by the Administrator.

In the event any portion of the Final Map is changed or modified, the Backup Special Tax for all Assessor’s Parcels within such changed or modified area shall be $27,459 per Acre.

Notwithstanding the foregoing, the Backup Special Tax for an Assessor’s Parcel of Developer Property for which a certificate of occupancy has been granted may not be revised.

In the event any superseding Final Map is recorded as a Final Map within the boundaries of the CFD, the Backup Special Tax for all Assessor’s Parcels within such Final Map shall be $27,459 per Acre. The Backup Special Tax shall not apply to Multifamily Residential Property or NonResidential Property.

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The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified as Multifamily Residential Property or Non-Residential Property shall be $27,459 per Acre.

Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal Year against any Assessor’s Parcel of Residential Property for which an occupancy permit for a private residential use has been issued as a result of a delinquency in the payment of the Special Tax applicable to any other Assessor’s Parcel be increased by more than ten percent (10%) above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default.

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F. EXEMPTIONS
The City shall classify as Exempt Property, in the chronological order in which the property becomes exempt, (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a homeowners' association, (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely for public uses, or (vi) Assessor’s Parcels restricted to other types of public uses determined by the City Council, provided that no such classification would reduce the sum of all Taxable Property to less than 9.11 Acres.

Notwithstanding the above, the City Council shall not classify an Assessor’s Parcel as Exempt Property if such classification would reduce the sum of all Taxable Property to less than 9.11 Acres. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than 9.11 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E.

Welfare Exempt Property shall be exempt from the payment of the Special Tax so long as the property qualifies as a Welfare Exempt Property.

G. PREPAYMENT OF SPECIAL TAX
The following additional definitions apply to this Section G:
“CFD Public Facilities” means $3,000,000 expressed in 2022 dollars, which shall increase by the Construction Inflation Index on July 1, 2023, and on each July 1 thereafter, or such lower amount (i) determined by the City Council as sufficient to provide the public facilities under the authorized bonding program for CFD No. 2022-2, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds to be supported by Special Tax levied under this Rate and Method of Apportionment.
“Construction Fund” means an account specifically identified in the Indenture or functionally equivalent to hold funds, which are currently available for expenditure to acquire or construct public facilities eligible under CFD No. 2022-2.
“Construction Inflation Index” means the annual percentage change in the Engineering NewsRecord Building Cost Index for the city of Los Angeles, measured as of the Calendar Year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the City that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of Los Angeles.

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“Future Facilities Costs” means the CFD Public Facilities minus public facility costs available to be funded, or that were funded, through existing construction or escrow accounts or funded by the Outstanding Bonds or Special Taxes, and minus public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment. “Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Tax which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Tax.

An owner of an Assessor’s Parcel intending to prepay the Maximum Special Tax obligation for such Assessor’s Parcel shall provide the CFD Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Prepayment Amount (as defined below) for the Assessor’s Parcel.

Within 15 days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Taxes.

The Prepayment Amount shall be calculated as follows (some capitalized terms are defined below):

1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.

2. For an Assessor’s Parcel of Developed Property, compute the Maximum Special Tax for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped Property Packet Pg. 1663
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for which a Building Permit has been issued, compute the Maximum Special Tax for the Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped Property for which a Building Permit has not been issued, or Provisional Undeveloped Property to be prepaid, compute the Maximum Special Tax for the Assessor’s Parcel.

5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).

6. Determine the Future Facilities Costs.

9. Determine the Special Taxes levied on the Assessor’s Parcel in the current Fiscal Year which have not yet been paid.

11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”).

12. Verify the administrative fees and expenses of the CFD, the cost to invest the Prepayment Amount, the cost of redeeming the Outstanding Bonds, and the cost of recording notices to evidence the prepayment of the Maximum Special Tax obligation for the Assessor’s Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”).

13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of: (a) the Packet Pg. 1664
A-12
expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.

The Future Facilities Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall be retained by the CFD.

The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next redemption from other Special Tax prepayments of Outstanding Bonds or to make debt service payments.

For purposes of determining the partial prepayment amount, the provisions of Section G.1 shall be modified as provided by the following formula:

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PP = ((PE –A) x F) +A
These terms have the following meaning:

H. TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Special Tax shall be levied on all Assessor’s Parcels subject to the Special Tax. The Special Tax shall cease not later than the 2064- 2065 Fiscal Year, however, Special Tax will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all the required interest and principal payments on the CFD No. 2022-2 Bonds have been paid; (ii) all authorized facilities of CFD No. 2022-2 have been acquired and all reimbursements to the developer have been paid, (iii) no delinquent Special Tax remain uncollected and (iv) all other obligations of CFD No. 2022-2 have been satisfied.

I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2022-2 may collect Special Tax at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act.

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J. APPEALS OF SPECIAL TAXES
Any taxpayer may file a written appeal of the Special Taxes on his/her Assessor’s Parcel(s) with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes.

During pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant’s Assessor’s Parcel(s).

No refunds of previously paid Special Taxes shall be made.

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Resolution No. 2022-144
Resolution No. 2022-144
July 20, 2022

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RESOLUTION NO. 2022-144

RESOLUTION OF THE MAYOR AND CITY COUNCIL OF

THE CITY OF SAN BERNARDINO, CALIFORNIA

DECLARING NECESSITY TO INCUR A BONDED

INDEBTEDNESS OF PROPOSED COMMUNITY
FACILITIES DISTRICT NO. 2022-2 (PALM) OF THE CITY

OF SAN BERNARDINO
WHEREAS, pursuant to Section 53321 of the California Government Code, the City Council (the “City Council”) of the City of San Bernardino (the “City”) has adopted a resolution (the “Resolution of Intention”) declaring its intention to establish proposed Community Facilities District No. 2022-2 (Palm) of the City of San Bernardino, County of Riverside, State of California (“CFD No. 2022-2”), for the purpose of providing and financing certain public facilities described in Exhibit A attached hereto and incorporated herein by this reference (the “Facilities”) which are necessary to meet increased demands placed upon the City as a result of development which will occur within CFD No. 2022-2; and
WHEREAS, the City Council has determined that it is necessary for proposed CFD No. 2022-2 to incur a bonded indebtedness for the purpose of providing and financing such Facilities; and
WHEREAS, it is the intention of this City Council to finance the acquisition or construction of all or a portion of such Facilities through the levy of special taxes on taxable property within CFD No. 2022-2 and the issuance of bonds of CFD No. 2022-2, such bonds to be secured by such special taxes to be levied on taxable property within CFD No. 2022-2, all as authorized pursuant to the Act.

BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:

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

SECTION 2. Declaration of Convenience and Necessity. This City Council declares that the public convenience and necessity requires that a bonded indebtedness be incurred by CFD No. 2022-2 to contribute to the financing of all or a portion of the Facilities.

SECTION 3. Purpose for Proposed Indebtedness. The purpose for the proposed debt of CFD No. 2022-2 is to contribute to the financing of the acquisition or construction of the Facilities.

SECTION 4. Bond Authorization. The amount of the bonded indebtedness of CFD No. 2022-2 may include all costs and estimated costs incidental to, or connected with, the accomplishment of the purpose for which the indebtedness is proposed to be incurred as authorized pursuant to the Act. The amount of the indebtedness proposed to be authorized for CFD No. 2022-2 is $4,000,000.

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SECTION 5. Hearing. A public hearing on the proposed bonded indebtedness for CFD No. 2022-2 shall be held at 7:00 p.m. on September 7, 2022, in the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California or via teleconference as directed by the City due to COVID-19 social distancing guidelines. Said hearing shall be conducted concurrently with the hearing on the formation of CFD No. 2022-2.

SECTION 9. Effective Date. This Resolution shall become effective immediately.

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CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss

CITY OF SAN BERNARDINO )
I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2022-144, adopted at a regular meeting held on the 20th day of July, 2022 by the following vote:

EXHIBIT A

FACILITIES
The types of public facilities to be financed by the proposed CFD No. 2022-2, which may be provided by the construction or acquisition thereof or the financing of impact fees to be used for the construction or acquisition thereof (herein, the “Facilities”) include but are not limited to:
(a) Acquisition, design, construction of local and regional circulation systems, storm drain improvements, and parkland and open space; and (b) The incidental expenses proposed to be incurred are: (i) the cost of planning and designing the public facilities and the cost of environmental evaluations thereof, (ii) all costs associated with the formation of the proposed CFD No. 2022-2, the issuance of the bonds thereof, the determination of the amount of and collection of special taxes, the payment of special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the proposed CFD No. 2022-2, and (iii) any other expenses incidental to the construction, completion, and inspection of the public Facilities.

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PLEASANT HILL DR

ORANGE ST

PALM AVE

HIGHLAND AVE
0285-211-23 0285-211-05
0285-211-22
0285-211-21 0285-211-25

PROPOSED BOUNDARY MAP
COMMUNITY FACILITIES DISTRICT NO. 2022-2
(PALM)

CITY OF SAN BERNARDINO

COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA
SHEET 1 OF 1 SHEET
I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSEDBOUNDARIES OF COMMUNITY FACILITIES DISTRICT 2022-2(PALM) FOR THE CITY OF SAN BERNARDINO,COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, WASAPPROVED BY THE CITY COUNCIL OF THE CITY OF SANBERNARDINO AT A REGULAR MEETING THEREOF, HELDON THE ____ DAY OF ____________________, 20 ____. BY ITS RESOLUTION NO. ____________________ _________________________________________ CITY CLERK, CITY OF SAN BERNARDINO FILED IN THE OFFICE OF THE CITY CLERK THIS _____ DAY OF________, 20 ____. _________________________________________ CITY CLERK, CITY OF SAN BERNARDINO CFD 2022-2
_
£¤66
§¨¦215
§¨¦10
·|}þ259
·|}þ18
·|}þ330
·|}þ38
·|}þ210
THIS BOUNDARY MAP CORRECTLY SHOWS THE BOUNDARIESOF THE COMMUNITY FACILITIES DISTRICT. FOR DETAILSCONCERNING THE LINES AND DIMENSIONS OF LOTS ORPARCEL REFER TO THE COUNTY ASSESSOR'S MAPS FORFISCAL YEAR 2021-22. 0 250 500 125 Feet
LEGEND

CFD BOUNDARYPARCEL BOUNDARY

XXXX-XXX-XX ASSESSOR PARCEL NUMBER

CITY BOUNDARY
-
THIS MAP WAS FILED UNDER DOCUMENT NUMBER_____________, THIS ____ DAY OF _______, 20 ____, AT_____ M. IN BOOK ___ OF __________ AT PAGE ____, ATTHE REQUEST OF _____________________________IN THE AMOUNT OF $_________ BOB DUTTON ASSESSOR-RECORDER SAN BERNARDINO COUNTY BY:________________________________ DEPUTY RECORDER

SAN BERNARDINO COUNTY RECORDER'S CERTIFICATE
   
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City of San Bernardino
Request for Council Action

CONSENT

CALENDAR
Date: July 20, 2022
To: Honorable Mayor and City Council Members
From: Robert D. Field, City Manager;
Barbara Whitehorn, Agency Director of Administrative
Services.

Department: Finance
Subject: Resolution Declaring Intent to Annex Territory:

Community Facilities District No. 2018-1 (Safety
Services) Annexation No. 6, (TR 20494)
Recommendation:

Adopt Resolution No. 2022-145 of the Mayor and City Council of the City of San Bernardino, California, declaring its intention to annex territory into Community Facilities District No. 2018-1 (Safety Services) of the City of San Bernardino, adopting a map of the area to be proposed (Annexation No. 6) and authorizing the levy of special taxes therein.

Background:

On September 19, 2018, the Mayor and City Council approved Resolution No. 2018-264 establishing Community Facilities District No. 2018-1 (Safety Services), of the City of San Bernardino, (the "CFD No. 2018-1" or "District") for the purpose of levying special taxes on parcels of taxable property to provide certain services which are necessary to meet increased demands placed upon the City.

Discussion:

Development projects are subject to conditions of approval that require projects to form/annex a services district. These districts apply an annual fee or special tax upon properties within the District which provide the revenue to offset the cost of public safety necessary to serve the development. PI Properties, LLC (the “Owner”) has agreed to initiate and conduct the CFD annexation proceedings pursuant to the Act. To that end, the Owner has submitted a "Consent and Waiver" form, which is on file in the City Clerk's office that authorizes the City to (1) hold the election and declare election results; (2) shorten election time requirements; (3) waive analysis and arguments; (4) waive all notice requirements relating to the conduct of the election immediately following the public hearing.

The public services proposed to be financed within and for the benefit of the territory to be annexed to the District are the following:

1. Police protection services (including but not limited to criminal justice services) and paramedic services; and
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2. City and County costs associated with the setting, levying and collection of the special tax, and in the administration of the District including the contract administration and for the collection of reserve funds.

The proposed development includes approximately 10.10 gross acres of zoned residential property to include 95 detached single-family residential lots. The property is located south of W. Highland Ave. west of Medical Center Dr. This development will be Annexation No. 6 within CFD No. 2018-1, as shown in the boundary map and included in the Resolution of Intention as Exhibit “D”. In order to annex into CFD No. 2018-1, a Resolution of Intention to annex property must be approved to identify the services and establish the maximum special tax for this annexation. The Resolution of Intention shall also set the date and time for the public hearing.

The rate and method of apportionment of the special tax for Annexation No. 6, is included as Exhibit “C” to the Resolution of Intention. The maximum annual special tax for this development has been calculated to be $385 per residential unit for FY 2022/23. If the maximum allowable annual fee were levied, the revenue generated would be $36,575 per year.

In order to annex property to CFD No. 2018-1 pursuant to the provisions of California Government Code Section 53311 et seq., the City must adopt a series of three statutorily required Resolutions and an Ordinance which are summarized below.  Resolution declaring City intent to annex territory to Community Facilities District No. 2018-1 including the boundary of the area to be annexed and the rate and method of apportionment of special taxes within the annexation area (the special tax applies only to properties within the annexation area).
 Resolution calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to the District.  Resolution declaring the results of the election and directing the recording of the notice of special tax lien.
 Amend the Ordinance and order the levy and collection of special taxes in the District.

With the adoption of the Resolution of Intention, the Public Hearing would be scheduled for September 7, 2022.
2021-2025 Key Strategic Targets and Goals:

Financial Impact:

The individual property owners in the CFD will be responsible for annual payments of special taxes. Upon full completion of the development, it is estimated that there will be an annual collection of special tax revenues of approximately $36,575 to be used to pay for safety services. The Maximum Special Tax rate is proposed to escalate each year after July 1, 2024 by four percent (4.0%).

All costs associated with annexation into the CFD have been borne by the Developer.

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Conclusion:

Attachments:

Attachment 1 – Resolution 2022-145
Attachment 2 – Exhibit A – Description of Territory
Attachment 3 – Exhibit B – Description of Authorized Services Attachment 4 – Exhibit C – Rate and Method of Apportionment Attachment 5 – Exhibit D – Annexation and Potential Annexation Boundary Maps Attachment 6 – Exhibit E – Signed Petition, Waiver and Consent Attachment 7 – Exhibit F – Notice of Public Hearing
Attachment 8 – Exhibit G – Special Election Ballot
Attachment 9 – Project/Location Map
Ward: 6
Synopsis of Previous Council Actions:

August 15, 2018 Mayor and City Council adopted Resolution No. 2018-239, a Resolution of Intention to form Community Facilities District No. 2018-1 (Safety Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the MelloRoos Community Facilities Act of 1982”.

September 19, 2018 Resolution No. 2018-264 was adopted establishing Community Facilities District No. 2018-1; Resolution No. 2018-265 was adopted declaring election results for Community Facilities District No. 2018-1; and first reading of Ordinance No. MC-1506 levying special taxes to be collected during FY 2019-20 to pay annual costs of safety services and expenses with respect to Community Facilities District No. 2018-1.

October 3, 2018 Final reading of Ordinance No. MC-1506 levying special taxes to be collected during FY 2019-20 to pay annual costs of safety services and expenses with respect to Community Facilities District No. 2018-1.

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July 20, 2022

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RESOLUTION NO. 2022-145

RESOLUTION OF THE MAYOR AND CITY COUNCIL OF

THE CITY OF SAN BERNARDINO, CALIFORNIA, ACTING

AS THE LEGISLATIVE BODY OF COMMUNITY
FACILITIES DISTRICT NO. 2018-1 OF THE CITY OF SAN

BERNARDINO (SAFETY SERVICES), DECLARING ITS

INTENTION TO CONSIDER ANNEXING TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2018-1 OF THE

CITY OF SAN BERNARDINO (SAFETY SERVICES)

ADOPTING A MAP OF THE AREA TO BE PROPOSED
(ANNEXATION NO. 6) AND AUTHORIZING THE LEVY OF

SPECIAL TAXES THEREIN
WHEREAS, on August 15, 2018 the Mayor and City Council (the “City Council”) of the City of San Bernardino adopted Resolution No. 2018-239 (the “Resolution of Intention”), declaring its intention to establish Community Facilities District No. 2018-1 of the City of San Bernardino (Safety Services) (“Community Facilities District No. 2018-1” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”); and WHEREAS, after a duly noticed public hearing, the Mayor and City Council adopted Resolution No. 2018-264 (the “Resolution of Formation”) establishing Community Facilities District No. 2018-1 and calling a special election therein to authorize (i) the levy of special taxes pursuant to the rate and method of apportionment of the special tax, as set forth in Exhibit “C” attached to the Resolution of Intention (the “Original Rate and Method”), and (ii) the establishment of an appropriations limit for Community Facilities District No. 2018-1; and WHEREAS, the Mayor and City Council have received a petition form and signed by PI Properties, LLC, requesting (i) the annexation of the territory within the boundaries set forth in Exhibit “A”, hereto (the “Annexation Territory”) to the District; (ii) the levy of the special tax within the Annexation Territory in accordance with the Rate and Method of Apportionment of Special Tax attached as Exhibit “C”, hereto (the “Rate and Method”), which Rate and Method is identical to the Original Rate and Method in all respects except that Appendix A thereto has been updated in accordance with the terms of the Original Rate and Method to reflect the annexation described herein and (iii) the waiving certain election requirements; and

BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:

SECTION 1. The above recitals are true and correct and are incorporated herein by this reference.

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SECTION 2. Intent to Annex. The City Council declares its intention to conduct proceedings pursuant to the Act for the annexation to the District of the Annexation Territory.

SECTION 3. Description of Territory Proposed to be Annexed, Annexation Map. The map showing the original boundaries of the District designated as “Map of Proposed Boundaries of Community Facilities District No. 2018-1 of the City of San Bernardino (Safety Services),” which map is on file in the office of the City Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the City of County Book of Maps of Assessment and Community Facilities Districts in the Assessor-County Clerk-Recorder’s office of the County of San Bernardino in Book No. 87 Page No. 96, on August 16, 2018 as Instrument No. 2018- 0300849.

The boundaries of the Annexation Territory proposed to be annexed to the District and be made subject to taxation are as shown on the annexation map set forth in Exhibit “D” hereto (the “Boundary Map”). The City Clerk is hereby directed to sign the boundary map and record it with all proper endorsements thereon with the County Recorder of the County of San Bernardino within 15 days after the adoption of this resolution, all as required by Section 3111 of the Streets and Highways Code of the State of California.

SECTION 4. Description of Authorized Services. The Services (as defined in the Rate and Method) proposed to be provided for the benefit of the Annexation Territory are public services as defined in the Act, and this City Council finds and determines that the Services to be financed are in addition to those provided in the territory the Annexation Territory, at the present time and do not supplant services already available within the Annexation Territory at the present time. The City Council hereby finds and determines that the description of the Services herein is sufficiently informative to allow taxpayers within the Annexation Territory, to understand what the funds of the District may be used to finance. The Services Incidental Expenses (as defined in the Rate and Method) expected to be incurred within the Annexation Territory are set forth in the Rate and Method. The amount and term of the special tax to be levied by the District within the Annexation Territory and the Services to be provided by the District within the Annexation Territory shall be identical to those within the original boundaries of the District.

SECTION 5. Levy of Special Taxes. Except where funds are otherwise available, it is the intention of the City Council to levy annually in accordance with the procedures contained in the Act a separate special tax, secured by recordation of a continuing lien against all nonexempt real property in the Annexation Territory, sufficient to pay for the Services and the Services Incidental Expenses. The rate and method of apportionment and manner of collection of the special taxes set forth in Exhibit “C” allows each homeowner within the Annexation Territory to estimate the maximum amount that may be levied against each parcel.

The special taxes for Services may be increased by an amount not to exceed four percent (4%) per year after July 1, 2024 to the extent permitted in the Rate and Method. The special tax Packet Pg. 1679
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for Services may be levied for such period as the Services are needed, as further described in Exhibit “B” hereto.

The special taxes are based on the expected demand that each parcel of real property within the Annexation Territory will place on the Services. The City Council hereby determines that the proposed Services are necessary to meet the increased demand placed upon the City and the existing police and paramedic services in the City as a result of the development of the land proposed for annexation to the District. The City Council hereby determines the rate and method of apportionment of the special taxes to be reasonable. The special tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act and such special taxes are not on or based upon value or ownership of real property.

SECTION 6. Public Hearing. A public hearing (the “Hearing”) on the annexation of the Annexation Territory to the District, the levy of the special tax within the Annexation Territory in accordance with the Rate and Method to finance the Services shall be held at 7:00 p.m., or as soon thereafter as practicable, on September 7, 2022, Bing Wong Auditorium of the Norman F.

Feldheym Public Library at 555 W. 6th Street, San Bernardino, California. Should the City Council determine to annex the Annexation Territory to the District, a special election will be held to authorize the levy of the special taxes in accordance with the procedures contained in Government Code Section 53326. If held, the proposed voting procedure at the election will be a landowner vote with each landowner who is the owner of record of land within Annexation Territory at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within the Annexation Territory. Ballots for the special election may be distributed by mail or by personal service.

SECTION 7. Adjustments. The City Council does not intend to make any adjustment in property taxation pursuant to Sections 53313.6 and 53313.7 of the Act.

SECTION 8. Public Hearing. At the time and place set forth above for the Hearing, any interested person, including all persons owning lands or registered to vote within the Annexation Territory, may appear to be heard.

SECTION 9. Notice of Public Hearing. The City Clerk is hereby directed to publish a notice (the “Notice”) of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of the Annexation Territory. The City Clerk is further directed to mail a copy of the Notice to each landowner within the Annexation Territory at least 15 days prior to the Hearing. The Notice shall contain the text or a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the proposed district and a description of the proposed voting procedure for the election required by the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing.

SECTION 10. The Mayor and City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule Packet Pg. 1680
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that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

SECTION 11. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable.

SECTION 12. Effective Date. This Resolution shall become effective immediately.

APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 20th day of July 2022.

John Valdivia, Mayor
City of San Bernardino
Attest:

Genoveva Rocha, CMC, City Clerk
Approved as to form:

Sonia Carvalho, City Attorney
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CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) ss

CITY OF SAN BERNARDINO )
I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2022-145, adopted at a regular meeting held on the 20th day of July 2022 by the following vote:

Genoveva Rocha, CMC, City Clerk
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EXHIBIT A

DESCRIPTION OF PROPOSED TERRITORY TO BE ANNEXED
The City of San Bernardino Community Facilities District No. 2018-1 (Safety Services) (the “CFD No. 2018-1”) Annexation No. 6 is currently comprised of one (1) parcel, located within the city boundaries. The property is identified by the following San Bernardino County Assessor's Parcel Number (APN).

APN Tract Number Owner Name
0143-191-59 TR 20494 PI Properties, LLC
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EXHIBIT B

CITY OF SAN BERNARDINO
COMMUNITY FACILITIES DISTRICT NO. 2018-1
(SAFETY SERVICES)

DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2018-1, as provided by Section 53313 of the Act, will include some or all of the costs attributable to public safety.

These services include police protection services (including but not limited to criminal justice services) and paramedic services.

In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses” as said term is defined in the Rate and Method of Apportionment and to establish an operating reserve for the costs of services as determined by the Administrator.

The above services shall be limited to those provided within the boundaries of CFD No. 2018-1 for the benefit of the properties within the boundaries of CFD No. 2018-1 and said services may be financed by proceeds of the special tax of CFD No. 2018-1 only to the extent that they are in addition to those provided in the territory of CFD No. 2018-1 before CFD No. 2018-1 was created.

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EXHIBIT C
City of San Bernardino Page 1
Community Facilities District No. 2018‐1 (Safety Services)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2018‐1 (SAFETY SERVICES)

OF THE CITY OF SAN BERNARDINO
A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2018‐1 (Safety Services) (the “CFD No. 2018‐1” or “CFD”; defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2019, in an amount determined by the City Council of the City of San Bernardino, acting in its capacity as the legislative body of CFD No. 2018‐1, by applying the rate and method of apportionment set forth below.

All of the real property in CFD No. 2018‐1, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein.

A. DEFINITIONS
“Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation and administration of CFD No. 2018‐1 including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2018‐1, or any designee thereof associated with fulfilling the CFD No. 2018‐1 reporting requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2018‐1 or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2018‐1 for any other administrative purposes of CFD No. 2018‐1, including attorney's fees and other costsrelated to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.
“Administrator” means the City Manager of the City of San Bernardino, or his or her designee. “Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of San Bernardino. “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means the identification number assigned to a parcel by the County Assessor of the County of San Bernardino.
“CFD” or “CFD No. 2018‐1” means the City of San Bernardino Community Facilities District No. 2018‐ 1 (Safety Services).
“City” means the City of San Bernardino.
“County” means the County of San Bernardino.
“Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit for new construction has been issued on or prior to June 1 preceding the Fiscal Year in which the Special Tax is being levied.

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Community Facilities District No. 2018‐1 (Safety Services) “Developed Multi‐Family Property” means all Assessor's Parcels of Developed Property for which a building permit or use permit for the construction of a residential structure with two or more Residential Units that share a single Assessor's Parcel Number, as determined by the Administrator, has been issued prior to June 1 preceding the Fiscal Year in which the Special Tax is being levied. “Developed Single Family Property” means any residential property other than a Developed Multi‐ Family Property on an Assessor’s Parcel for which a building permit for new construction has been issued by the City on or prior to June 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section D.
“Fiscal Year” means the period from and including July 1st of any year to and including the following June 30th.
“Maximum Special Tax” means the Maximum Special Tax, as applicable, levied within the CFD for any Fiscal Year.
“Proportionately” means for Taxable Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. “Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed Residential Units have been constructed or for which building permits have been or may be issued for purposes of constructing one or more Residential Units. “Services” means services permitted under the Mello‐Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2018‐1 as set forth in Appendix B.
“Special Tax” means the Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.
"Special Tax Requirement" means the amount to be collected in any Fiscal Year to pay for certain costs as required to meet the public safety needs of CFD No. 2018‐1 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for (i) police protection services, (ii) paramedic services, (iii) fund an operating reserve for the costs of Services as determined by the Administrator, and (iv) Administrative Expenses. Under no circumstances shall the Special Tax Requirement include funds for bonds.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2018‐1, which are not Exempt Property.
“Taxable Unit” means a Residential Unit.

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City of San Bernardino Page 3
Community Facilities District No. 2018‐1 (Safety Services) B. RATE AND METHOD OF APPORTIONMENT OF MAXIMUM SPECIAL TAX RATES As of July 1 of each Fiscal Year, commencing July 1, 2019, the Council shall determine the Special Tax Requirement and shall levy the Special Tax upon each of the Assessor’s Parcels within the CFD which constitute a Developed Single Family Property or a Developed Multi‐Family Property until the aggregate amount of Special Tax equals the Special Tax Requirement. The Special Tax shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax Requirement.

The Maximum Special Tax for Fiscal Year 2019‐2020 for a Developed Single Family Property and a Developed Multi‐Family Property are shown below in Table 1.

TABLE 1

MAXIMUM SPECIAL TAX RATES
FISCAL YEAR 2019‐2020
Description
Taxable
Unit
Maximum
Special Tax
Developed Single Family Property RU $385
Developed Multi‐Family Property RU $358
Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2024 the Maximum Special Tax for Developed Property shall increase by four percent (4.0%).

No Special Tax shall be levied on property which, at the time of adoption of the Resolution of Formation for CFD No. 2018‐1 is an Exempt Property.

C. TERM OF SPECIAL TAX
For each Fiscal Year, the Maximum Special Taxes shall be levied as long as the Services are being provided within the boundaries of CFD No. 2018‐1.

D. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2018‐1, any Assessor’s Parcel in any of the following categories; (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) Assessor’s Parcels which are privately owned but are encumbered by or restricted solely for public uses; (iv) any Assessor’s Parcel which is in use in the performance of a public function as determined by the Administrator; or (v) any Assessor’s Parcel which is not a Developed Single Family Property or a Developed Multi‐Family Property.

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Community Facilities District No. 2018‐1 (Safety Services) E. APPEALS
Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disputed. The Administrator shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the Administrator’s decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustmentshall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).

F. MANNER OF COLLECTION
The Maximum Special Taxes levied in each Fiscal Year 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 case of delinquency as is provided for ad valorem taxes.

However, the District may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.

The Maximum Special Taxes when levied shall be secured by the lien imposed pursuant to Section 3115.5 of the Streets and Highways Code. This lien shall be a continuing lien and shall secure each levy of Maximum Special Taxes. The lien of Maximum Special Taxes shall continue in force and effect until the Special Tax ceasesto be levied in the manner provided by Section 53330.5 of the Government Code.

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Community Facilities District No. 2018‐1 (Safety Services)

APPENDIX A

CITY OF SAN BERNARDINO
COMMUNITY FACILITIES DISTRICT NO. 2018‐1
(SAFETY SERVICES)
ANNEXATION SUMMARY
Safety Services ‐ It is estimated that the cost of providing police and paramedic services being funded by the Special Tax for the Community Facilities District No. 2018‐1 (Safety Services) will be as follows for the Fiscal Year 2022‐2023:
 $385 per residential unit for Developed Single Family Residential Property  $358 per residential unit for Developed Multi‐Family Residential Property Annual Escalation ‐ On each July 1, commencing on July 1, 2024 the Maximum Special Tax for Developed Property shall increase by four percent (4.0%).

Annex.
#
Fiscal
Year
Tract/
APN
Development
Name
No. of
Taxable
Units
Land Use
Category
Maximum
Special Tax Subdivider
Original 2019‐20 TR 17329
Verdemont
Ranch 74
Developed Single
Family Property $385 17329, LLC
1 2020‐21 TR 20006 Rancho Palma 119
Developed Single
Family Property $385 TH Rancho Palms LLC
2 2020‐21 TR 20261 Hispano Inv. 5
Developed Single
Family Property $385 Hispano Investors Inc
3 2021‐22 TR 20293 ICO Fund 96
Developed Single
Family Property $385 ICO Fund VI, LLC
4 2022‐23 TR 20145 Belmont 16
Developed Single
Family Property $385 RCH‐CWI Belmont, LP
5 2022‐23 TR 20258 N. Meridian 6
Developed Single
Family Property $385 RGC Family Trust
6 2022‐23 TR 20494
Medical/
Highland 95
Developed Single
Family Property $385 PI Properties, LLC
7 2022‐23 TR 20495 Palm 133
Developed Single
Family Property $385
Pacific West Company,
et al.

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Community Facilities District No. 2018‐1 (Safety Services)

APPENDIX B

CITY OF SAN BERNARDINO
COMMUNITY FACILITIES DISTRICT NO. 2018‐1
(SAFETY SERVICES)

DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2018‐1, as provided by Section 53313 of the Act, will include some or all of the costs attributable to public safety.

These servicesinclude police protection services(including but not limited to criminal justice services) and paramedic services.

The above services shall be limited to those provided within the boundaries of CFD No. 2018‐1 for the benefit of the properties within the boundaries of CFD No. 2018‐1 and said services may be financed by proceeds of the special tax of CFD No. 2018‐1 only to the extent that they are in addition to those provided in the territory of CFD No. 2018‐1 before CFD No. 2018‐1 was created.

Packet Pg. 1690
20TH ST

HIGHLAND AVE

GARDENA ST

MADISON ST
·|}þ210
0143-191-59
ANNEXATION MAP NO. 6
COMMUNITY FACILITIES DISTRICT NO. 2018-1
(SAFETY SERVICES)

CITY OF SAN BERNARDINO

COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA
SHEET 1 OF 1 SHEET
CFD 2018-1
ANNEX 6
^_
·|þ}259
·|þ}18
·|þ}210
§¨¦215
£¤66
£¤66
THIS ANNEXATION MAP CORRECTY SHOWS THE LOT ORPARCEL OF LAND INCLUDED WITHIN THE BOUNDARIES OFTHE COMMUNITY FACILITIES DISTRICT. FOR DETAILSCONCERNING THE LINES AND DIMENSIONS OF LOTS ORPARCEL REFER TO THE COUNTY ASSESSOR MAPS FORFISCAL YEAR 2022-23. -
THIS MAP SHOWS THE BOUNDARIES OF AREAS TO BEANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2018-1(SAFETY SERVICES), OF THE CITY OF SANBERNARDINO, COUNTY OF SAN BERNARDINO, STATE OFCALIFORNIA. THE BOUNDARIES OF WHICH COMMUNITY FACILITIESDISTRICT ARE SHOWN AND DESCRIBED ON THE MAPTHEREOF WHICH WAS PREVIOUSLY RECORDED ONAUGUST 16, 2018 IN BOOK 87 OF MAPS OF ASSESSMENTAND COMMUNITY FACILITIES DISTRICT AT PAGE 96 ANDAS INSTRUMENT NO. 2018-0300849 IN THE OFFICE OF THECOUNTY RECORDER OF THE COUNTY OF SAN BERNARDINO,STATE OF CALIFORNIA. I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSEDBOUNDARIES OF COMMUNITY FACILITIES DISTRICT 2018-1(SAFETY SERVICES) FOR THE CITY OF SAN BERNARDINO,COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, WASAPPROVED BY THE CITY COUNCIL OF THE CITY OF SANBERNARDINO AT A REGULAR MEETING THEREOF, HELDON THE ____ DAY OF ____________________, 20 ____. BY ITS RESOLUTION NO. ____________________ _________________________________________ CITY CLERK, CITY OF SAN BERNARDINO FILED IN THE OFFICE OF THE CITY CLERK THIS _____ DAY OF________, 20 ____. _________________________________________ CITY CLERK, CITY OF SAN BERNARDINO LEGEND

ANNEXATION AREA BOUNDARYPARCEL LINECITY BOUNDARY

XXXX-XXX-XX ASSESSOR PARCEL NUMBER
THIS MAP WAS FILED UNDER DOCUMENT NUMBER_____________, THIS ____ DAY OF _______, 20 ____, AT_____ M. IN BOOK ___ OF __________ AT PAGE ____, ATTHE REQUEST OF _____________________________IN THE AMOUNT OF $_________ BOB DUTTONASSESSOR-RECORDER SAN BERNARDINO COUNTY BY:________________________________

DEPUTY RECORDER

SAN BERNARDINO COUNTY RECORDER'S CERTIFICATE

EXHIBIT D
   
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PETITION TO THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN

BERNARDINO REQUESTING TO ANNEX TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 2018-1 WITHIN THE CITY OF SAN BERNARDINO AND A

WAIVER WITH RESPECTS TO CERTAIN PROCEDURAL MATTERS UNDER THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982 AND CONSENTING TO THE

LEVY OF SPECIAL TAXES THEREON TO PAY THE COSTS OF SERVICES TO BE

PROVIDED BY THE COMMUNITY FACILITIES DISTRICT

1. The undersigned requests that the City Council of the City of San Bernardino, initiate and conduct proceedings pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”) (Government Code Section 53311 et seq.), for the annexation of territory to Community Facilities District No. 2018-1 (the “Community Facilities District”) of the property described below and consents to the annual levy of special taxes on such property to pay the costs of services to be provided by the community facilities district.

2. The undersigned requests that the community facilities district provide any services that are permitted under the Act including, but not limited to, all necessary service, operations, administration required to provide police protection services, including but not limited to criminal justice services in the area surrounding the subject project.

3. The undersigned hereby certifies that as of the date indicated opposite its signature, it is the owner of all the property within the proposed boundaries of the annexation area to the Community Facilities District as described in Exhibit A hereto and as shown on the map Exhibit B hereto.

4. The undersigned requests that a special election be held under the Act to authorize the special taxes for the proposed community facilities district. The undersigned waives any requirement for the mailing of the ballot for the special election and expressly agrees that said election may be conducted by mailed or hand-delivered ballot to be returned as quickly as possible to the designated election official, being the office of the City Clerk and the undersigned request that the results of said election be canvassed and reported to the City Council at the same meeting of the City Council as the public hearing on the annexation of territory to the Community Facilities District or at the next available meeting.

5. Pursuant to Sections 53326(a) and 53327(b) of the Act, the undersigned expressly waives all applicable waiting periods for the election and waives the requirement for analysis and arguments relating to the special election, and consents to not having such materials provided to the landowner in the ballot packet, and expressly waives any requirements as to the form of the ballot. The undersigned expressly waives all notice requirements relating to hearings and special elections (except for published notices required by the Act), and whether such requirements are found in the California Elections Code, the California Government Code or other laws or procedures, including but not limited to any notice provided for by compliance with the provisions of Section 4101 of the California Elections Code.

6. The undersigned hereby consents to and expressly waives any and all claims based on any irregularity, error, mistake or departure from the provisions of the Act or other laws of the State and any and all laws and requirements incorporated therein, and no step or action in any proceeding relative to annex territory to the Community Facilities District of the portion of the incorporated area of the City of San Bernardino or the special election therein shall be invalidated or affected by any such irregularity, error mistake or departure.

EXHIBIT E
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EXHIBIT F

NOTICE OF PUBLIC HEARING ON INTENTION TO ANNEX TERRITORY TO AN EXISTING COMMUNITY FACILITIES DISTRICT 2018-1 (SAFETY SERVICES) (ANNEXATION NO. 6)
NOTICE IS HEREBY GIVEN that the City Council of the City of San Bernardino on July 20, 2022 adopted its Resolution No. 2022-___, in which it declared its intention to annex territory to existing Community Facilities District No. 2018-1 (Safety Services) (the "CFD No. 2018-1"), and to levy a special tax to pay for certain safety services, all pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, Chapter 2.5, Part 1, Division 2, Title 5 of the California Government Code. The resolution describes the territory to be annexed and describes the rate and method of apportionment of the proposed special tax.

No change in the tax levied in the existing CFD No. 2018-1 is proposed.

NOTICE IS HEREBY FURTHER GIVEN that the City Council has fixed 7:00 p.m., or as soon thereafter as practicable, Wednesday, September 7, 2022 at the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, as the time and place when and where the City Council will conduct a public hearing on the annexation of territory to CFD No. 2018-1. At the hearing, the testimony of all interest persons for or against the annexation of the territory or the levying of the special taxes will be heard. If and to the extent participation in the September 7, 2022 meeting must occur by teleconference, videoconference, or other electronic means authorized by the Ralph M. Brown Act or an Executive Order of the Governor of California, the means and methods for participating the meeting shall be posted on the Agenda for said meeting, which shall be posted at least 72 hours prior to the meeting on the City of San Bernardino (www.sbcity.org), and outside of the Bing Wong Auditorium of the Norman F.

Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92410. A copy of the Agenda will be made available upon request to the San Bernardino City Clerk's office at 909-384-5002.

DATED: ____________, 2022 _________________________________________ City Clerk of the City of San Bernardino
PUB: _______________, 2022
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EXHIBIT G

CITY OF SAN BERNARDINO

COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SAFETY SERVICES) ANNEXATION NO. 6
(September 7, 2022)
This ballot is for the use of the authorized representative of the following owner of land within Community Facilities District No. 2018-1 (Safety Services) (“CFD No. 2018-1”) of the City of San Bernardino:

Name of Landowner Number of Acres Owned Total Votes
PI Properties, LLC 10.10 11
According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of San Bernardino (the “City”), the above-named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax.

This special tax ballot is for the use of the property owner of the parcels identified below, which parcels are located within the territory proposed to form the CFD No. 2018-1, City of San Bernardino, County of San Bernardino, State of California. Please advise the City Clerk, at (909) 384-5002 if the name set forth below is incorrect or if you are no longer one of the owners of these parcels. This special tax ballot may be used to express either support for or opposition to the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows:

Mail
Delivery: If by mail, place ballot in the return envelope provided, and mail no later than August 24, 2022, two calendar weeks prior to the date set for the election. Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted.

Personal
Delivery: If in person, deliver to the City Clerk at any time up to 7:00 p.m. on September 7, 2022, at the Clerk’s office at 201 N. “E” Street, Bldg A, City of San Bernardino, CA 92401.

However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on September 7, 2022.

Very truly yours,
Genoveva Rocha, CMC, City Clerk
Packet Pg. 1696
TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

OFFICIAL SPECIAL TAX BALLOT
Name & Address of Property Owner: Assessor’s Parcel Number(s):

PI Properties, LLC
Attn: Rao Yalamanchili
610 n. Santa Anita Ave.

Arcadia, CA 91006
0143-191-59

CITY OF SAN BERNARDINO

COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SAFETY SERVICES) AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT PROPOSITION A MARK “YES” OR “NO” WITH AN “X”:

Shall the territory described in Attachment “A” of
Resolution No. 2022-___ of the Mayor and City
Council of the City of San Bernardino be annexed to
Community Facilities District No. 2018-1 (Safety
Services)?
YES _________
NO _________
PROPOSITION B MARK “YES” OR “NO” WITH AN “X”:

Shall a special tax with a rate and method of
apportionment as provided in Attachment “C” to
Resolution No. 2022-___ of the Mayor and City
Council of the City of San Bernardino be levied to pay
for the Services and other purposes described in
Resolution No. 2018-264?
YES _________
NO _________
Certification for Special Election Ballot
The undersigned is an authorized representative of the above-named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 20__.

Pi Properties, LLC
By: Rao Yalamanchili
President

Signature
Print Name
Title
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MEDIC
AL CEN
TER
D
R

HIGHLAND AVE
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^_

MED CI AL CENTER DR

MOUNT VERNON AVE

PENNSYLVANIA AVE

NINTEENTH ST

ORANGE ST

CALIFORNIA ST CALIFORNIA AVE

MAGNOLIA AVE

HIGHLAND AVE
13TH ST
L ST

UNION ST
17TH ST

VIRGINIA ST
19TH ST £¤66
£¤66
§¨¦215
·|}þ259
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CFD NO. 2018-1 (MAINTENANCE SERVICES)
ANNEXATION NO. 6

PROJECT MAP
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City of San Bernardino
Request for Council Action

CONSENT

CALENDAR
Date: July 20, 2022
To: Honorable Mayor and City Council Members
From: Robert D. Field, City Manager;
Barbara Whitehorn, Agency Director of
Administrative Services
Department: Finance
Subject: Resolution Declaring Intent to Annex
Territory: Community Facilities District No.
2018-1 (Safety Services) Annexation No. 7,
(TR 20495) (Ward 4)
Recommendation:

Adopt Resolution No. 2022-146 of the Mayor and City Council of the City of San Bernardino, California, declaring its intention to consider annexing territory to Community Facilities District No. 2018-1 (Safety Services) of the City of San Bernardino, adopting a map of the area to be proposed (Annexation No. 7) and authorizing the levy of special taxes therein.

Background:

On September 19, 2018, the Mayor and City Council approved Resolution No. 2018-264 establishing Community Facilities District No. 2018-1 (Safety Services) of the City of San Bernardino (the "CFD No. 2018-1" or "District") for the purpose of levying special taxes on parcels of taxable property to provide certain services which are necessary to meet increased demands placed upon the City.

Discussion:

Development projects are subject to conditions of approval that require projects to form/annex a services district. These districts apply an annual fee or special tax upon properties within the District which provide the revenue to offset the cost of public safety necessary to serve the development. Pacific West Company, et al. (the “Owners”) have agreed to initiate and conduct the CFD annexation proceedings pursuant to the Act. To that end, the Owner has submitted a "Consent and Waiver" form, which is on file in the City Clerk's office that authorizes the City to (1) hold the election and declare election results; (2) shorten election time requirements; (3) waive analysis and arguments; (4) waive all notice requirements relating to the conduct of the election immediately following the public hearing.

The public services proposed to be financed within and for the benefit of the territory to be annexed to the District are the following:

1. Police protection services (including but not limited to criminal justice services) and paramedic services; and Packet Pg. 1699

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The proposed development includes approximately 15.51 gross acres of zoned residential property to include 133 detached single-family residential lots. The property is located at the northwest intersection of E Highland Ave. and N Palm Ave. This development will be Annexation No. 7 within CFD No. 2018-1, as shown in the boundary map and included in the Resolution of Intention as Exhibit “D”. In order to annex into CFD No. 2018-1, a Resolution of Intention to annex property must be approved to identify the services and establish the maximum special tax for this annexation. The Resolution of Intention shall also set the date and time for the public hearing.

The rate and method of apportionment of the special tax for Annexation No. 7, is included as Exhibit “C” to the Resolution of Intention. The maximum annual special tax for this development has been calculated to be $385 per residential unit for FY 2022/23. If the maximum allowable annual fee were levied, the revenue generated would be $51,205 per year.

With the adoption of the Resolution of Intention, the Public Hearing would be scheduled for September 7, 2022.
2021-2025 Key Strategic Targets and Goals:

Financial Impact:

The individual property owners in the CFD will be responsible for annual payments of special taxes. Upon full completion of the development, it is estimated that there will be an annual collection of special tax revenues of approximately $51,205 to be used to pay for safety services. The Maximum Special Tax rate is proposed to escalate each year after July 1, 2024 Packet Pg. 1700

Page 3 ends

by four percent (4.0%). All costs associated with annexation into the CFD have been borne by the Developer.

Conclusion:

Attachments:

Attachment 1 – Resolution 2022-146
Attachment 2 – Exhibit A – Description of Territory
Attachment 3 – Exhibit B – Description of Authorized Services Attachment 4 – Exhibit C – Rate and Method of Apportionment Attachment 5 – Exhibit D – Annexation and Potential Annexation Boundary Maps Attachment 6 – Exhibit E – Signed Petition, Waiver and Consent Attachment 7 – Exhibit F – Notice of Public Hearing
Attachment 8 – Exhibit G – Special Election Ballot
Attachment 9 – Project/Location Map
Ward: 4
Synopsis of Previous Council Actions:

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Resolution No. 2022-146
Resolution 2022-146
July 20, 2022

Page 1 of 5 ends

RESOLUTION NO. 2022-146

RESOLUTION OF THE MAYOR AND CITY COUNCIL OF

THE CITY OF SAN BERNARDINO, CALIFORNIA, ACTING

AS THE LEGISLATIVE BODY OF COMMUNITY
FACILITIES DISTRICT NO. 2018-1 OF THE CITY OF SAN

BERNARDINO (SAFETY SERVICES), DECLARING ITS

INTENTION TO CONSIDER ANNEXING TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2018-1
(SAFETY SERVICES) OF THE CITY OF SAN

BERNARDINO, ADOPTING A MAP OF THE AREA TO BE
PROPOSED (ANNEXATION NO. 7) AND AUTHORIZING

THE LEVY OF SPECIAL TAXES THEREIN
WHEREAS, on August 15, 2018 the Mayor and City Council (the “City Council”) of the City of San Bernardino adopted Resolution No. 2018-239 (the “Resolution of Intention”), declaring its intention to establish Community Facilities District No. 2018-1 of the City of San Bernardino (Safety Services) (“Community Facilities District No. 2018-1” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”); and WHEREAS, after a duly noticed public hearing, the Mayor and City Council adopted Resolution No. 2018-264 (the “Resolution of Formation”) establishing Community Facilities District No. 2018-1 and calling a special election therein to authorize (i) the levy of special taxes pursuant to the rate and method of apportionment of the special tax, as set forth in Exhibit “C” attached to the Resolution of Intention (the “Original Rate and Method”), and (ii) the establishment of an appropriations limit for Community Facilities District No. 2018-1; and WHEREAS, the Mayor and City Council have received a petition form and signed by Pacific West Company, et al., requesting (i) the annexation of the territory within the boundaries set forth in Exhibit “A”, hereto (the “Annexation Territory”) to the District; (ii) the levy of the special tax within the Annexation Territory in accordance with the Rate and Method of Apportionment of Special Tax attached as Exhibit “C”, hereto (the “Rate and Method”), which Rate and Method is identical to the Original Rate and Method in all respects except that Appendix A thereto has been updated in accordance with the terms of the Original Rate and Method to reflect the annexation described herein and (iii) the waiving certain election requirements; and

BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:

SECTION 1. The above recitals are true and correct and are incorporated herein by this reference.

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Resolution No. 2022-146
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July 20, 2022

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SECTION 2. Intent to Annex. The City Council declares its intention to conduct proceedings pursuant to the Act for the annexation to the District of the Annexation Territory.

The special taxes for Services may be increased by an amount not to exceed four percent (4%) per year after July 1, 2024 to the extent permitted in the Rate and Method. The special tax for Services may be levied for such period as the Services are needed, as further described in Exhibit “B” hereto.

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Resolution 2022-146
July 20, 2022

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SECTION 7. Adjustments. The City Council does not intend to make any adjustment in property taxation pursuant to Sections 53313.6 and 53313.7 of the Act.

SECTION 10. The Mayor and City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that Packet Pg. 1705
Resolution No. 2022-146
Resolution 2022-146
July 20, 2022

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the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

SECTION 12. Effective Date. This Resolution shall become effective immediately.

APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 20th day of July 2022.

John Valdivia, Mayor
City of San Bernardino
Attest:

Genoveva Rocha, CMC, City Clerk
Approved as to form:

Sonia Carvalho, City Attorney
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Resolution No. 2022-146
Resolution 2022-146
July 20, 2022

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CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) ss

CITY OF SAN BERNARDINO )
I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2022-146, adopted at a regular meeting held on the 20th day of July 2022 by the following vote:

Genoveva Rocha, CMC, City Clerk
Packet Pg. 1707

EXHIBIT A

DESCRIPTION OF PROPOSED TERRITORY TO BE ANNEXED
The City of San Bernardino Community Facilities District No. 2018-1 (Safety Services) (the “CFD No. 2018-1”) Annexation No. 7 is currently comprised of five (5) parcels, located within the city boundaries. The property is identified by the following San Bernardino County Assessor's Parcel Number (APN).

APN Tract Number Owner Name
0285-211-05 TR 20495 Pacific West Co., et al.
0285-211-21 TR 20495 Pacific West Co., et al.
0285-211-22 TR 20495 Pacific West Co., et al.
0285-211-23 TR 20495 Pacific West Co., et al.
0285-211-25 TR 20495 Pacific West Co., et al.

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EXHIBIT B

CITY OF SAN BERNARDINO
COMMUNITY FACILITIES DISTRICT NO. 2018-1
(SAFETY SERVICES)

These services include police protection services (including but not limited to criminal justice services) and paramedic services.

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EXHIBIT C
City of San Bernardino Page 1
Community Facilities District No. 2018‐1 (Safety Services)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2018‐1 (SAFETY SERVICES)

All of the real property in CFD No. 2018‐1, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein.

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City of San Bernardino Page 2
Community Facilities District No. 2018‐1 (Safety Services) “Developed Multi‐Family Property” means all Assessor's Parcels of Developed Property for which a building permit or use permit for the construction of a residential structure with two or more Residential Units that share a single Assessor's Parcel Number, as determined by the Administrator, has been issued prior to June 1 preceding the Fiscal Year in which the Special Tax is being levied. “Developed Single Family Property” means any residential property other than a Developed Multi‐ Family Property on an Assessor’s Parcel for which a building permit for new construction has been issued by the City on or prior to June 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section D.
“Fiscal Year” means the period from and including July 1st of any year to and including the following June 30th.
“Maximum Special Tax” means the Maximum Special Tax, as applicable, levied within the CFD for any Fiscal Year.
“Proportionately” means for Taxable Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. “Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed Residential Units have been constructed or for which building permits have been or may be issued for purposes of constructing one or more Residential Units. “Services” means services permitted under the Mello‐Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2018‐1 as set forth in Appendix B.
“Special Tax” means the Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.
"Special Tax Requirement" means the amount to be collected in any Fiscal Year to pay for certain costs as required to meet the public safety needs of CFD No. 2018‐1 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for (i) police protection services, (ii) paramedic services, (iii) fund an operating reserve for the costs of Services as determined by the Administrator, and (iv) Administrative Expenses. Under no circumstances shall the Special Tax Requirement include funds for bonds.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2018‐1, which are not Exempt Property.
“Taxable Unit” means a Residential Unit.

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City of San Bernardino Page 3
Community Facilities District No. 2018‐1 (Safety Services) B. RATE AND METHOD OF APPORTIONMENT OF MAXIMUM SPECIAL TAX RATES As of July 1 of each Fiscal Year, commencing July 1, 2019, the Council shall determine the Special Tax Requirement and shall levy the Special Tax upon each of the Assessor’s Parcels within the CFD which constitute a Developed Single Family Property or a Developed Multi‐Family Property until the aggregate amount of Special Tax equals the Special Tax Requirement. The Special Tax shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax Requirement.

The Maximum Special Tax for Fiscal Year 2019‐2020 for a Developed Single Family Property and a Developed Multi‐Family Property are shown below in Table 1.

TABLE 1

No Special Tax shall be levied on property which, at the time of adoption of the Resolution of Formation for CFD No. 2018‐1 is an Exempt Property.

C. TERM OF SPECIAL TAX
For each Fiscal Year, the Maximum Special Taxes shall be levied as long as the Services are being provided within the boundaries of CFD No. 2018‐1.

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City of San Bernardino Page 4
Community Facilities District No. 2018‐1 (Safety Services) E. APPEALS
Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disputed. The Administrator shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the Administrator’s decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustmentshall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).

However, the District may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.

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City of San Bernardino Page 5
Community Facilities District No. 2018‐1 (Safety Services)

APPENDIX A

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City of San Bernardino Page 6
Community Facilities District No. 2018‐1 (Safety Services)

APPENDIX B

CITY OF SAN BERNARDINO
COMMUNITY FACILITIES DISTRICT NO. 2018‐1
(SAFETY SERVICES)

These servicesinclude police protection services(including but not limited to criminal justice services) and paramedic services.

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PLEASANT HILL DR

ORANGE ST

PALM AVE

HIGHLAND AVE
0285-211-23 0285-211-05
0285-211-22
0285-211-21
0285-211-25
ANNEXATION MAP NO. 7
COMMUNITY FACILITIES DISTRICT NO. 2018-1
(SAFETY SERVICES)

CITY OF SAN BERNARDINO

COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA
SHEET 1 OF 1 SHEET
CFD 2018-1
ANNEX 7
^_
·|}þ210
·|}þ18 ·|}þ330
·|}þ38
·|}þ210
§¨¦10
THIS ANNEXATION MAP CORRECTY SHOWS THE LOT ORPARCEL OF LAND INCLUDED WITHIN THE BOUNDARIES OFTHE COMMUNITY FACILITIES DISTRICT. FOR DETAILSCONCERNING THE LINES AND DIMENSIONS OF LOTS ORPARCEL REFER TO THE COUNTY ASSESSOR MAPS FORFISCAL YEAR 2022-23. -
THIS MAP SHOWS THE BOUNDARIES OF AREAS TO BEANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2018-1(SAFETY SERVICES), OF THE CITY OF SANBERNARDINO, COUNTY OF SAN BERNARDINO, STATE OFCALIFORNIA. THE BOUNDARIES OF WHICH COMMUNITY FACILITIESDISTRICT ARE SHOWN AND DESCRIBED ON THE MAPTHEREOF WHICH WAS PREVIOUSLY RECORDED ONAUGUST 16, 2018 IN BOOK 87 OF MAPS OF ASSESSMENTAND COMMUNITY FACILITIES DISTRICT AT PAGE 96 ANDAS INSTRUMENT NO. 2018-0300849 IN THE OFFICE OF THECOUNTY RECORDER OF THE COUNTY OF SAN BERNARDINO,STATE OF CALIFORNIA. I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSEDBOUNDARIES OF COMMUNITY FACILITIES DISTRICT 2018-1(SAFETY SERVICES) FOR THE CITY OF SAN BERNARDINO,COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, WASAPPROVED BY THE CITY COUNCIL OF THE CITY OF SANBERNARDINO AT A REGULAR MEETING THEREOF, HELDON THE ____ DAY OF ____________________, 20 ____. BY ITS RESOLUTION NO. ____________________ _________________________________________CITY CLERK, CITY OF SAN BERNARDINO FILED IN THE OFFICE OF THE CITY CLERK THIS _____ DAY OF________, 20 ____. _________________________________________ CITY CLERK, CITY OF SAN BERNARDINO LEGEND

ANNEXATION AREA BOUNDARYPARCEL LINECITY BOUNDARY

DEPUTY RECORDER

SAN BERNARDINO COUNTY RECORDER'S CERTIFICATE

EXHIBIT D
   
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PETITION TO THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN

BERNARDINO REQUESTING TO ANNEX TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 2018-1 WITHIN THE CITY OF SAN BERNARDINO AND A

WAIVER WITH RESPECTS TO CERTAIN PROCEDURAL MATTERS UNDER THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982 AND CONSENTING TO THE

LEVY OF SPECIAL TAXES THEREON TO PAY THE COSTS OF SERVICES TO BE

PROVIDED BY THE COMMUNITY FACILITIES DISTRICT

EXHIBIT E
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EXHIBIT F

NOTICE OF PUBLIC HEARING ON INTENTION TO ANNEX TERRITORY TO AN EXISTING COMMUNITY FACILITIES DISTRICT 2018-1 (SAFETY SERVICES) (ANNEXATION NO. 7)
NOTICE IS HEREBY GIVEN that the City Council of the City of San Bernardino on July 20, 2022 adopted its Resolution No. 2022-___, in which it declared its intention to annex territory to existing Community Facilities District No. 2018-1 (Safety Services) (the "CFD No. 2018-1"), and to levy a special tax to pay for certain safety services, all pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, Chapter 2.5, Part 1, Division 2, Title 5 of the California Government Code. The resolution describes the territory to be annexed and describes the rate and method of apportionment of the proposed special tax.

No change in the tax levied in the existing CFD No. 2018-1 is proposed.

Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92410. A copy of the Agenda will be made available upon request to the San Bernardino City Clerk's office at 909-384-5002.

DATED: ____________, 2022 _________________________________________ City Clerk of the City of San Bernardino
PUB: _______________, 2022
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EXHIBIT G

CITY OF SAN BERNARDINO

COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SAFETY SERVICES) ANNEXATION NO. 7
(September 7, 2022)
This ballot is for the use of the authorized representative of the following owner of land within Community Facilities District No. 2018-1 (Safety Services) (“CFD No. 2018-1”) of the City of San Bernardino:

Name of Landowner Number of Acres Owned Total Votes
Chenmei Cheng 4.265 5
According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of San Bernardino (the “City”), the above-named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax.

However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on September 7, 2022.

Very truly yours,
Genoveva Rocha, CMC, City Clerk
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TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

OFFICIAL SPECIAL TAX BALLOT
Name & Address of Property Owner: Assessor’s Parcel Number(s):

Chenmei Cheng
Attn: Matthew Esquivel
3090 Pullman Street
Costa Mesa, CA 92626
0285-211-05 and 0285-211-25

CITY OF SAN BERNARDINO

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 20__.

Chenmei Cheng
Owner

Signature
Print Name
Title
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EXHIBIT G

CITY OF SAN BERNARDINO

Name of Landowner Number of Acres Owned Total Votes
Ann C. Lau 0.853 1
According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of San Bernardino (the “City”), the above-named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax.

However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on September 7, 2022.

Very truly yours,
Genoveva Rocha, CMC, City Clerk
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TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

OFFICIAL SPECIAL TAX BALLOT
Name & Address of Property Owner: Assessor’s Parcel Number(s):

Ann C. Lau
Attn: Matthew Esquivel
3090 Pullman Street
Costa Mesa, CA 92626
0285-211-05 and 0285-211-25

CITY OF SAN BERNARDINO

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 20__.

Ann C. Lau
Owner

Signature
Print Name
Title
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EXHIBIT G

CITY OF SAN BERNARDINO

Name of Landowner Number of Acres Owned Total Votes
Hanhsing Li 3.412 4
According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of San Bernardino (the “City”), the above-named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax.

However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on September 7, 2022.

Very truly yours,
Genoveva Rocha, CMC, City Clerk
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TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

OFFICIAL SPECIAL TAX BALLOT
Name & Address of Property Owner: Assessor’s Parcel Number(s):

Hanhsing Li
Attn: Matthew Esquivel
3090 Pullman Street
Costa Mesa, CA 92626
0285-211-05 and 0285-211-25

CITY OF SAN BERNARDINO

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 20__.

Hanhsing Li
Owner

Signature
Print Name
Title
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EXHIBIT G

CITY OF SAN BERNARDINO

Name of Landowner Number of Acres Owned Total Votes
Pacific West Company 6.599 7
According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of San Bernardino (the “City”), the above-named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax.

However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on September 7, 2022.

Very truly yours,
Genoveva Rocha, CMC, City Clerk
Packet Pg. 1729
TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

OFFICIAL SPECIAL TAX BALLOT
Name & Address of Property Owner: Assessor’s Parcel Number(s):

Pacific West Company
Attn: Matthew Esquivel
3090 Pullman Street
Costa Mesa, CA 92626
0285-211-21, -22, -23

CITY OF SAN BERNARDINO

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 20__.

Pacific West Company
Owner

Signature
Print Name
Title
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O
R
A
N
GE S
T
PALM
AVE

HIGHLAND AVE
^_
16TH ST ORANGE ST

CITRUS ST

PIEDMONT DR

HIGHLAND AVE

SEINEAVE

PALM AVE

CENTRAL AVE

HEMLOCK DR

PALM CREST DR

PACIFIC ST
·|}þ330
·|}þ210
CFD NO. 2018-1 (MAINTENANCE SERVICES)
ANNEXATION NO. 7

PROJECT MAP
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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: July 20, 2022
To: Honorable Mayor and City Council Members
From: Robert D. Field, City Manager;
Barbara Whitehorn, Agency Director of Administrative Services Department: Finance
Subject: Investment Portfolio Report for April and May 2022 (All Wards) Recommendation
It is recommended that the Mayor and City Council of the City of San Bernardino, California, accept and file the Monthly Investment Portfolio Report for April and May 2022.

Background
The City’s Statement of Investment Policy requires that a monthly Investment Portfolio Report be prepared and submitted to the Mayor and City Council. The Director of Finance will prepare, review, and present the City’s Investment Portfolio Report and confirm that the portfolio is in compliance with the City’s Investment Policy.

Discussion
The Investment Portfolio Report provides a synopsis of investment activity for the City’s investment portfolio for the month ended April 30 and May 31, 2022. The City’s Investment Portfolio is in full compliance with the City’s current Investment Policy and California Government Code section 53601, and there is sufficient cash flow from a combination of liquid and maturing securities, bank deposits, and income to meet the City’s expenditure requirements.
2021-2025 Key Strategic Targets and Goals
The acceptance and filing of the attached Investment Portfolio Report aligns with Key Target No. 1: Improved Operational & Financial Capacity by implementing, maintaining, and updating a fiscal accountability plan.

Financial Impact
There is no fiscal impact associated with receiving and filing the monthly investment report.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, Packet Pg. 1732

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California, accept and file the Monthly Investment Portfolio Report for April and May 2022.

Attachments
Attachment 1 Investment Portfolio Management Summary Report April 2022 Attachment 2 Investment Portfolio Management Summary Report May 2022 Ward: All Wards
Synopsis of Previous Council Actions: N/A
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City of San Bernardino
Request for Council Action

CONSENT CALENDAR
Date: July 20, 2022
To: Honorable Mayor and City Council Members
From: Robert D. Field, City Manager
By: Barbara Whitehorn, Agency Director of Administrative Services Department: Finance
Subject: Approval of Commercial and Payroll Disbursements (All Wards)
Recommendation
It is recommended that the Mayor and City Council of the City of San Bernardino, California approve the commercial and payroll disbursements for May and June 2022.

Background
Completed commercial and payroll disbursement registers are submitted to the Mayor and City Council for approval. This happens on a regular basis, typically every meeting for the most recently completed disbursement registers. The detailed warrant registers are available on the City Website and are updated weekly by the Finance Department.

The registers may be accessed by copying the following link into an internet browser:
https://www.sbcity.org/city_hall/finance/warrant_register Discussion
Gross Payroll
Bi-Weekly for May 26, 2022 $2,488,032.71
Bi-Weekly for June 9, 2022 $2,530,533.71
Bi-Weekly for June 23, 2022 $2,527,233.86
Monthly for June 15, 2022 $11,666.69
Total Payroll Demands: $7,557,466.97
The following check registers are being presented for approval:

May 19, 2022 2021/22 (Register #45) $1,547,193.30
May 26, 2022 2021/22 (Register #46) $3,190,645.71
June 2, 2022 2021/22 (Register #47) $1,298,918.80
June 9, 2022 2021/22 (Register #48) $913,385.02
June 16, 2022 2021/22 (Register #49) $1,761,978.06
June 26, 2022 2021/22 (Register #50) $1,971,778.58
Total commercial check demands: $10,683,899.47
The following Electronic Funds Transfer (EFT) registers presented for approval:

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April 27 to April 29, 2022 2021/22 (Register #1296-#1301) $ 1,079,329.67 May 11, 2022 2021/22 (Register #1302-#1305) $ 5,125.57
May 18 to May 19, 2022 2021/22 (Register #1306-#1310) $ 1,161,147.81 May 26 to May 27, 2022 2021/22 (Register #1311-#1314) $ 585,631.85 Total commercial EFT demands: $ 2,831,234.90
2021-2025 Key Strategic Targets and Goals
Approval of the noted check and EFT registers for commercial and payroll disbursements align with Key Target No. 1: Improved Operational & Financial Capacity by creating a framework for spending decisions.

Financial Impact
Amounts noted in the disbursement registers have no further fiscal impact. Amounts were paid consistent with existing budget authorization and no further budgetary impact is required.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California approve the commercial and payroll disbursements for May and June 2022.

Attachments
Attachment 1 Payroll Summary Report for May-June 2022
Attachment 2 Commercial checks & Payroll Register #45
Attachment 3 Commercial checks & Payroll Register #46
Attachment 4 Commercial checks & Payroll Register #47
Attachment 5 Commercial checks & Payroll Register #48
Attachment 6 Commercial checks & Payroll Register #49
Attachment 7 Commercial checks & Payroll Register #50
Attachment 8 Commercial EFT Registers #1296-1301
Attachment 9 Commercial EFT Registers #1302-1305
Attachment 10 Commercial EFT Registers #1306-1310
Attachment 11 Commercial EFT Registers #1311-1314
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Ward: All
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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: July 20, 2022
To: Honorable Mayor and City Council Members
From: Robert D. Field, City Manager;
Darren Goodman, Chief of Police
Department: Police
Subject: Authorize the City Manager to Execute a Police Services Agreement with Dignity Health Corporation
Recommendation
Authorize the City Manager to execute the Proposed Fifth Amendment to the Agreement with Dignity Health Corporation for Police services at two locations.

Background
On December 20, 2017, Mayor and City Council adopted Resolution No. 2017-214, authorizing the City Manager to execute an agreement with Dignity Health Corporation and the City of San Bernardino Police Department, to provide police services to Community Hospital and St. Bernardine’s Hospital. The agreement stipulated Dignity Health would fund two full-time sworn Police Officer or Police Detective overtime positions, assigning a Police Officer in each emergency room, two days per week. A renewed agreement spanning January 1, 2019, to December 31, 2021, was executed on February 19, 2019, under Resolution No. 2018-245, and signed by then City Manager Andrea Miller. This agreement provided Dignity Health would fund two fulltime sworn Police Officer positions, one at Community Hospital and one at St.

Bernardine’s Hospital, Thursday through Sunday, 1400-2400 hours. This agreement expired on December 31, 2021; however, extensions (see attached amendments) were agreed upon until June 30, 2022. During the span of these contracts, officers have handled hundreds of incidents that would have traditionally required a police patrol response. The location of these officers has proven valuable to the San Packet Pg. 1887
Bernardino Police Department, providing for more Police Officers to remain available for incidents throughout the City.

Discussion
Dignity Health is desirous of continuing a Policing Services Agreement until December 31, 2024, agreeing to continue funding the fully burdened rate of two full-time sworn Police Officer positions. Dignity Health funding will comprehensively include salary, benefit costs, and overtime costs. For FY 21/22, the expense to Dignity Health is $341,782 and increases to $365,490 by December 31, 2024. The proposed Fifth Amendment will accomplish these changes and will also clarify the City’s rights to assign personnel to these duties.
2021-2025 Strategic Targets and Goals
The funding of these positions by Dignity Health is aligned with Key Target No.1:

Financial Stability. The ability to “Secure a long-term revenue source,” aligns with this Agreement. Dignity Health will fund the positions for a period of 3 years, causing no fiscal impact to the City. This creates two Police Officer positions for police services.

The request to renew an agreement with Dignity Health is aligned with Key Target No. 3: Improved Quality of Life. The constant evaluation of public safety services and the vessel for which it is provided, synthesizes to this agreement. Police Officers assigned to the emergency rooms, during peak hours, provides immediate police presence, for incidents traditionally requiring a police patrol response. These positions mitigate the necessity for a patrol officer to respond to an emergency room for policing service.

Fiscal Impact
Dignity Health is funding the fully burdened rate of the positions. There is no fiscal impact to the City.

Conclusion
Authorize the City Manager to execute the Proposed Fifth Amendment to the Agreement with Dignity Health Corporation for Police services at two locations.

Attachments
Attachment 1 Proposed Fifth Amendment dated July 1, 2022 Attachment 2 Fourth Amendment dated June 1, 2022
Attachment 3 Third Amendment dated May 1, 2022
Attachment 4 Second Amendment dated March 1, 2022
Attachment 5 First Amendment dated January 1, 2022
Attachment 6 Original Agreement dated January 1, 2019
Ward: Second Ward; Sixth Ward
Packet Pg. 1888
Synopsis of Previous Council Actions:

February 19, 2019 The Mayor and City Council adopted Resolution No. 2019-8, to amend the adopted FY 2018/2019 Budget, to transfer funds to increase personnel and the authorization for then City Manager Andrea Miller, to sign an Agreement with Dignity Health Corporation.

December 20, 2017 The Mayor and City Council adopted Resolution No. 2017-245, approving the authorization of the City Manager to execute an Agreement between Dignity Health and the City of San
Bernardino Police Department.

Packet Pg. 1889
[210782]260768.1393453 Page 1 of 2

FIFTH AMENDMENT TO INDEPENDENT CONTRACTOR AGREEMENT
Neighborhood Policing Program Services
THIS FIFTH AMENDMENT TO INDEPENDENT CONTRACTOR AGREEMENT (“Fifth Amendment”) is entered into effective July 1, 2022 (“Renewal Effective Date”), by and among Dignity Health, a California nonprofit public benefit corporation, d/b/a St. Bernardine Medical Center; Community Hospital of San Bernardino, a California nonprofit public benefit corporation; and City of San Bernardino, a charter city and municipal corporation, on behalf of the City of San Bernardino Police Department, amending that certain Independent Contractor Agreement entered into among the Parties effective January 1, 2019, as amended (collectively, the “Agreement”).

THE PARTIES agree as follows:

1. The Parties amend Section E of the Key Informational Terms of the Agreement to read as follows:
“Term. Notwithstanding the initial Effective Date and Expiration Date, this Agreement shall be renewed on the Renewal Effective Date set forth in the Fifth Amendment. This Agreement shall expire on December 31, 2024 (the “Expiration Date”).”

2. The Parties amend in full Part I (Terms and Conditions), Section 1.2 of the Agreement to read as follows:
“Time and Manner of Performance. Contractor shall ensure that only fully qualified Personnel perform Services under this Agreement, and such Personnel shall perform Services diligently and in a timely manner, according to the highest applicable standards. Contractor shall select the Personnel to perform the Services under this Agreement. If Affiliate requests alternative Personnel to that selected by Contractor, the Parties agree to meet and confer in good faith.”

3. The Parties delete Part I, Section 1.7 (Health Screening and Immunization) of the Agreement.

4. The Parties delete the last dot point of Part II (Services and Fees), Section a (Description of Services), Subsection (2) of the Agreement.

5. The Parties amend Part II (Services and Fees), Section b (Fees), Subsection 3 of the Agreement to read as follows:
“3. Overtime expenditures will be calculated at 1.5 times the specific Officer’s hourly salary, will be paid by Affiliate, and will be no greater than:

Hourly Rate (with benefits) Overtime Hourly Rate
Effective September 1, 2021 $82.16 $84.70
Effective July 1, 2022 $84.00 $88.66
Effective July 1, 2023 $85.90 $90.96
Effective July 1, 2024 $87.86 $93.30

6. All other terms and conditions of the Agreement remain unchanged, and except as expressly modified by this Fifth Amendment, the Agreement shall remain in full force and effect. This Fifth Amendment may be executed by the Parties in any number of separate counterparts and all of said counterparts taken together shall be deemed to constitute one and the same instrument. Capitalized terms not otherwise defined herein shall have the meaning set forth in the Agreement. [Signatures Follow]
Packet Pg. 1890
[210782]260768.1393453 Page 2 of 2
IN WITNESS WHEREOF, this Fifth Amendment has been executed by and on behalf of the Parties.

AFFILIATE
Dignity Health, a California nonprofit public benefit
corporation, d/b/a St. Bernardine Medical Center
Printed Name:

Title:

Date:

CONTRACTOR
City of San Bernardino, a charter city and municipal
corporation, on behalf of the City of San Bernardino
Police Department
Printed Name:

Title:

Date:

Community Hospital of San Bernardino, a California
nonprofit public benefit corporation
Printed Name:

Title:

Date:

Packet Pg. 1891
[210782]260093.1386911 Page 1 of 1

FOURTH AMENDMENT TO INDEPENDENT CONTRACTOR AGREEMENT
Neighborhood Policing Program Services
THIS FOURTH AMENDMENT TO INDEPENDENT CONTRACTOR AGREEMENT (“Fourth Amendment”) is entered into effective June 1, 2022, by and among Dignity Health, a California nonprofit public benefit corporation, d/b/a St. Bernardine Medical Center; Community Hospital of San Bernardino, a California nonprofit public benefit corporation; and City of San Bernardino, a charter city and municipal corporation, on behalf of the City of San Bernardino Police Department, amending that certain Independent Contractor Agreement entered into among the Parties effective January 1, 2019, as amended (collectively, the “Agreement”).

THE PARTIES agree as follows:

1. The Parties amend Section E of the Key Informational Terms of the Agreement to read as follows:
“Term. Notwithstanding the initial Effective Date and Expiration Date, the term of this Agreement shall be extended to June 30, 2022 (the “Expiration Date”).”

2. All other terms and conditions of the Agreement remain unchanged, and except as expressly modified by this Fourth Amendment, the Agreement shall remain in full force and effect. This Fourth Amendment may be executed by the Parties in any number of separate counterparts and all of said counterparts taken together shall be deemed to constitute one and the same instrument. Capitalized terms not otherwise defined herein shall have the meaning set forth in the Agreement.

IN WITNESS WHEREOF, this Fourth Amendment has been executed by and on behalf of the Parties.

AFFILIATE
Dignity Health, a California nonprofit public benefit
corporation, d/b/a St. Bernardine Medical Center
Printed Name:

Title:

Date:

CONTRACTOR
City of San Bernardino, a charter city and municipal
corporation, on behalf of the City of San Bernardino
Police Department
Printed Name:

Title:

Date:

Community Hospital of San Bernardino, a California
nonprofit public benefit corporation
Printed Name:

Title:

Date:

City Manager Robert D. Field President
June Collison President Douglas Kleam
DocuSign Envelope ID: 6054021B-E8C8-48EA-AFD7-82AB3FF0E1A8 May 31, 2022
May 31, 2022
Packet Pg. 1892
Certificate Of Completion
Envelope Id: 6054021BE8C848EAAFD782AB3FF0E1A8 Status: Completed Subject: Please DocuSign: SBPD Extension
Source Envelope:

Document Pages: 1 Signatures: 2 Envelope Originator:

Certificate Pages: 5 Initials: 0 Corrina Sanchez
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
2101 North Waterman Ave
San Bernardino, CA 92404
[email protected]
IP Address: 162.135.0.63
Record Tracking
Status: Original
5/31/2022 3:30:58 PM
Holder: Corrina Sanchez
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Douglas Kleam
[email protected]
President
Security Level: Email, Account Authentication
(None) Signature Adoption: Pre-selected Style
Signed by link sent to
[email protected]
Using IP Address: 97.93.83.78
Signed using mobile
Sent: 5/31/2022 4:11:13 PM
Viewed: 5/31/2022 6:59:08 PM
Signed: 5/31/2022 6:59:17 PM
Electronic Record and Signature Disclosure:

Accepted: 5/31/2022 6:59:08 PM
ID: 1ffd1629-cbca-4c80-bff4-0d487059c7a7
June Collison
[email protected]
President
Dignity Health SSRM
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Signed by link sent to
[email protected]
Using IP Address: 162.135.0.6
Sent: 5/31/2022 4:11:14 PM
Viewed: 5/31/2022 4:13:41 PM
Signed: 5/31/2022 4:20:27 PM
Electronic Record and Signature Disclosure:

Accepted: 8/31/2020 4:28:01 PM
ID: bf728aa6-359a-4772-866d-6f53b68b340e
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
Carbon Copy Events Status Timestamp
Witness Events Signature Timestamp
Notary Events Signature Timestamp
Packet Pg. 1893
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 5/31/2022 4:11:14 PM
Certified Delivered Security Checked 5/31/2022 4:13:41 PM Signing Complete Security Checked 5/31/2022 4:20:27 PM
Completed Security Checked 5/31/2022 6:59:17 PM
Payment Events Status Timestamps
Electronic Record and Signature Disclosure
Packet Pg. 1894
Consent to Electronic Signatures and Communications
Under certain laws, Dignity Health (including its subsidiaries and affiliated entities and collectively referred to as “Dignity Health” in this Consent) is required to obtain your authorization and consent to obtain your electronic signature on documents related to your interactions with Dignity Health (the “Interactions”) and to receive electronically copies of such documents. As a result, we are providing this notice to you in order to obtain your agreement and consent to conduct our business with you electronically, including your consent to electronically sign documents arising from Interactions with Dignity Health and to confirm your consent to provide you with electronic copies of the same.

Please note that we will not provide you with a paper copy of your documents, but we will email a copy to you and you may otherwise print or save a copy of these documents for your records.

Scope of Your Consent
An "electronic signature" may be clicking a check box, orally stating "I Agree", or otherwise taking any other action that indicates your agreement to and receipt of a document. By indicating your consent below, you are agreeing that any electronic signatures that you may provide are legally binding signatures with the full legal force of a handwritten signature, which does not need to be verified, validated or certified by any third party. By indicating your consent below you are also agreeing that we can send you and you will receive electronically disclosures, communications, notices, forms, applications, policies and modifications to the same, which we choose to provide you electronically, unless and until you withdraw your consent as set forth below.

This Consent is voluntary and you may refuse to sign this Consent, but your ability to submit your request for services electronically will be restricted and potentially delayed.

If you (1) do not wish to consent to electronic signatures in connection with the Services, (2) do not consent to the electronic submission and receipt of disclosures, communications, notices, forms, applications, policies and modifications related to the Services or (3) otherwise wish not to engage in electronic transactions, you may contact us at [email protected] for alternatives to submit your paperwork.

In the event that we elect to discontinue the provision of any electronic communications or change the terms and conditions on which we provide electronic communications, we will provide you with any notice of such discontinuance or changes as required by law.

Obtaining a Paper Copy
Your copy of this Consent and all disclosures and communications related to this Consent, including documents in relation to the Service, will be sent and received electronically as set forth below. We reserve the right, but assume no obligation except as set forth in this Consent to provide a paper copy of any communication that you have authorized us to provide electronically.

Electronic Record and Signature Disclosure created on: 8/26/2020 12:14:59 PM Parties agreed to: Douglas Kleam, June Collison
Packet Pg. 1895
You may save a paper copy of certain disclosures and communications by printing them. You may obtain additional paper copies by contacting us at:
[email protected]. There will be no additional charge for obtaining paper copies.

Accessing Your Electronic Records
In order to receive documents electronically, you need a valid email address, Internet access and a computer that meets the following minimum hardware and software requirements.

Required hardware and software
Operating
Systems: Windows® 2000, Windows® XP, Windows Vista®; Mac OS® X Browsers:

Final release versions of Internet Explorer® 6.0 or above (Windows only); Mozilla Firefox 2.0 or above (Windows and Mac); Safari™ 3.0 or above (Mac only)
PDF Reader: Acrobat® or similar software may be required to view and print PDF files Screen
Resolution: 800 x 600 minimum
Enabled Security
Settings: Allow per session cookies
** These minimum requirements are subject to change. If these requirements change, you will be asked to re-accept the disclosure. Pre-release (e.g. beta) versions of operating systems and browsers are not supported.

In addition, if you wish to print copies of your documents or otherwise retain your own soft copy, you will need to have a printer attached to the computer you are using or access to a hard drive or other electronic storage device, such as a hard drive or USB drive.

By signing below, you are representing that you have access to the minimum requirements above.

All communications and disclosures related to the Service provided to you electronically will be provided either via email or via download of a file that contains the electronic record Withdrawing Your Consent
You may withdraw your consent to engage in electronic communications and transactions as described in this Consent at any time by contacting Dignity Health’s Supply and Service Resource Management Department at: [email protected]. Any withdrawal of consent will be effective only after we have a reasonable period of time for us to process your withdrawal.

There is no charge for withdrawing your consent. However, in the event you withdraw your consent, you will not be able to receive electronically information and materials related to the Service. Withdrawing your consent does not invalidate any electronic signatures you have Packet Pg. 1896
previously executed, which remain valid and enforceable as electronic signatures and you authorize us to continue to take action in reliance on such electronic signatures and the activities authorized by the same, unless and until you direct us otherwise. In addition, we have no obligation to provide you paper copies of documents that you previously consented to receive electronically, although you may request additional paper copies as set forth above.

Updating Your Records
In order to ensure that you will continue to receive electronic communications from us, you must notify us of any updates to your email address. You may update your electronic contact information that we have on file by contacting us at [email protected].

If you provide us with an invalid email address or your email address ceases to function, we may consider such occurrence as a withdrawal of your consent to receive electronic communications and transactions.

Electronic Signature
You understand that by signing this document, you are confirming your agreement to sign this Consent electronically. A copy of this consent will be made available to you via email.

You will receive only an electronic copy of your signature to this Consent. You are also confirming your agreement to use electronic signatures and receive electronic communications and records from Dignity Health and that you have access to a computer that meets the minimum requirements previously mentioned. Your act of clicking “I Agree” below is your legally binding electronic signature and agreement to the above terms, consents and disclosures. If you agree, please check “I Agree”. If you do not agree, you may not proceed with the electronic application, but may contact us to alternatively submit your paperwork.

Packet Pg. 1897
Packet Pg. 1898
[210782]256627.1359517 Page 1 of 1

SECOND AMENDMENT TO INDEPENDENT CONTRACTOR AGREEMENT
Neighborhood Policing Program Services
THIS SECOND AMENDMENT TO INDEPENDENT CONTRACTOR AGREEMENT (“Second Amendment”) is entered into effective March 1, 2022, by and among Dignity Health, a California nonprofit public benefit corporation, d/b/a St. Bernardine Medical Center; Community Hospital of San Bernardino, a California nonprofit public benefit corporation; and City of San Bernardino, a charter city and municipal corporation, on behalf of the City of San Bernardino Police Department, amending that certain Independent Contractor Agreement entered into among the Parties effective January 1, 2019, as amended (collectively, the “Agreement”).

THE PARTIES agree as follows:

2. All other terms and conditions of the Agreement remain unchanged, and except as expressly modified by this Second Amendment, the Agreement shall remain in full force and effect. This Second Amendment may be executed by the Parties in any number of separate counterparts and all of said counterparts taken together shall be deemed to constitute one and the same instrument. Capitalized terms not otherwise defined herein shall have the meaning set forth in the Agreement.

IN WITNESS WHEREOF, this Second Amendment has been executed by and on behalf of the Parties.

AFFILIATE
Dignity Health, a California nonprofit public benefit
corporation, d/b/a St. Bernardine Medical Center
Printed Name:

Title:

Date:

CONTRACTOR
City of San Bernardino, a charter city and municipal
corporation, on behalf of the City of San Bernardino
Police Department
Printed Name:

Title:

Date:

Community Hospital of San Bernardino, a California
nonprofit public benefit corporation
Printed Name:

Title:

Date:

Packet Pg. 1899
Dave Evans
CFO
Douglas Kleam
President
DocuSign Envelope ID: 7F301F8E-2667-4697-992F-F014AB7EBE19 Dec 28, 2021
Dec 27, 2021
Packet Pg. 1900
Certificate Of Completion
Envelope Id: 7F301F8E26674697992FF014AB7EBE19 Status: Completed Subject: Please DocuSign: SBPD MFIE Policing Agreement A1 PAS-210782-254294.pdf Source Envelope:

Document Pages: 1 Signatures: 2 Envelope Originator:

Certificate Pages: 5 Initials: 0 Corrina Sanchez
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
2101 North Waterman Ave
San Bernardino, CA 92404
[email protected]
IP Address: 162.135.0.60
Record Tracking
Status: Original
12/27/2021 3:31:34 PM
Holder: Corrina Sanchez
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Dave Evans
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 162.135.0.59
Sent: 12/27/2021 3:32:28 PM
Viewed: 12/28/2021 11:14:18 AM
Signed: 12/28/2021 11:14:20 AM
Electronic Record and Signature Disclosure:

Accepted: 9/25/2020 3:50:08 PM
ID: eb4490a9-39fe-45c5-9b9e-69ebcf93407a
Douglas Kleam
[email protected]
President
Security Level: Email, Account Authentication
(None) Signature Adoption: Pre-selected Style
Using IP Address: 76.86.196.151
Signed using mobile
Sent: 12/27/2021 3:32:27 PM
Viewed: 12/27/2021 3:40:58 PM
Signed: 12/27/2021 3:41:09 PM
Electronic Record and Signature Disclosure:

Accepted: 12/27/2021 3:40:58 PM
ID: 8713d1eb-fe4b-4e23-9d17-8aad38ce8624
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
Carbon Copy Events Status Timestamp
Witness Events Signature Timestamp
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 12/27/2021 3:32:28 PM
Certified Delivered Security Checked 12/27/2021 3:40:58 PM Packet Pg. 1901
Envelope Summary Events Status Timestamps
Signing Complete Security Checked 12/27/2021 3:41:09 PM Completed Security Checked 12/28/2021 11:14:20 AM
Payment Events Status Timestamps
Electronic Record and Signature Disclosure
Packet Pg. 1902
Consent to Electronic Signatures and Communications
Under certain laws, Dignity Health (including its subsidiaries and affiliated entities and collectively referred to as “Dignity Health” in this Consent) is required to obtain your authorization and consent to obtain your electronic signature on documents related to your interactions with Dignity Health (the “Interactions”) and to receive electronically copies of such documents. As a result, we are providing this notice to you in order to obtain your agreement and consent to conduct our business with you electronically, including your consent to electronically sign documents arising from Interactions with Dignity Health and to confirm your consent to provide you with electronic copies of the same.

Please note that we will not provide you with a paper copy of your documents, but we will email a copy to you and you may otherwise print or save a copy of these documents for your records.

This Consent is voluntary and you may refuse to sign this Consent, but your ability to submit your request for services electronically will be restricted and potentially delayed.

Electronic Record and Signature Disclosure created on: 8/26/2020 12:14:59 PM Parties agreed to: Dave Evans, Douglas Kleam
Packet Pg. 1903
You may save a paper copy of certain disclosures and communications by printing them. You may obtain additional paper copies by contacting us at:
[email protected]. There will be no additional charge for obtaining paper copies.

Required hardware and software
Operating
Systems: Windows® 2000, Windows® XP, Windows Vista®; Mac OS® X Browsers:

By signing below, you are representing that you have access to the minimum requirements above.

There is no charge for withdrawing your consent. However, in the event you withdraw your consent, you will not be able to receive electronically information and materials related to the Service. Withdrawing your consent does not invalidate any electronic signatures you have Packet Pg. 1904
previously executed, which remain valid and enforceable as electronic signatures and you authorize us to continue to take action in reliance on such electronic signatures and the activities authorized by the same, unless and until you direct us otherwise. In addition, we have no obligation to provide you paper copies of documents that you previously consented to receive electronically, although you may request additional paper copies as set forth above.

Packet Pg. 1905

INDEPENDENT CONTRACTOR AGREEMENT
Neighborhood Policing Program Services
THIS INDEPENDENT CONTRACTOR AGREEMENT ("Agreement") is made and entered into by and between the Dignity Health affiliated entities identified in the Key Infmmational Te1ms below (each and collectively, an "Affiliate" or "Hospital"), and the independent contractor identified in the Key Informational Terms below ("Contractor"). Contractor and Affiliate (each a "Party" and collectively the "Parties") agree as follows:

KEY INFORMATIONAL TERMS
A. Dignity Health Affiliate(s).

Dignity Health, a California nonprofit public
benefit corporation, doing business as St.

Bernardine Medical Center
Community Hospital of San Bernardino, a
California nonprofit public benefit corporation
State in which Affiliates are located: California
("State")
C. Contractor's Name and Description.

City of San Bernardino, a charter city and
municipal corporation, on behalfofthe City of
San Bernardino Police Department
E. Term. This Agreement commences on January I,
2019 (the "Effective Date" ) and expires on
December 31 , 2021 (the "Expiration Date" ).

G. Parts. This Agreement is comprised of the
following parts:
(i) Part I Dignity Health Terms and Conditions.
(ii) Part II Services and Fees.
(iii) Part III HIPAA Compliance.
(iv) Part IV Insurance Requirements
(210782]. l 097300
B. Affiliate Notice Address.

St. Bernardine Medical Center
210 I North Waterman Avenue
San Bernardino, California 92404
Community Hospital of San Bernardino
1805 Medical Center Drive
San Bernardino, California 92411
Copy to: Dignity Health Legal Department
185 Berry Street, Suite 300
San Francisco, CA 94107
D. Contractor's Notice Address.
710 No1ih D Street
San Bernardino, California 9240 I
Copy to: City of San Bernardino
290 No1ih D Street
San Bernardino, CA 92401
Attn : City Attorney
F. Without Cause Termination. Number of days'
notice required for without cause termination: 180
H. HIP AA Terms and Conditions. As set forth in Paii
llI HIP AA Compliance, the Parties agree that the
following HIPAA Terms and Conditions apply to
this Agreement:
[:gj Contractor shall not have access to protected
health information ("PHI") under this
Agreement.

D Contractor shall be treated as a member of
Affiliate 's workforce for purposes ofHIPAA
compliance.

D Contractor shall be a business associate of
Affiliate.

Page 1 of 9 ends

Packet Pg. 1906
IN WITNESS WHEREOF, this Agreement has been executed by and on behalf of the Parties.

AFFILIATE
Dignity Health, a California nonprofit public benefit
corporation, doing business as St. Bernardine
Medical Center
Community Hospital of San Bernardino, a
California nonprofit public benefit corporation
PrintedName:Oa AJ !d k\Jt\ k1S'
Titlo \IP Ir~ Date: ·2-J 2-{)_____tj_
[210782]. l 097300

CONTRACTOR
PrintedName: ANu1ZilA /'11t.t...l'Z/Z
Title: _ _.:=-c=-...:...-''----'-/11_.::_ ,_/,;tt.....::::..: ~ 1..:: 1 ..:.... / =-- { . ____ _ Date: :2. - If - I 2

Page 2 ends

Packet Pg. 1907
Part I

INDEPENDENT CONTRACTOR AGREEMENT (NON-CLINICAL LF)

DIGNITY HEAL TH TERMS AND CONDITIONS

1. CONTRACTOR'S OBLIGATIONS

1.1 Services. Contractor and/or employees or agents of Contractor ("Personnef') shall perform the services set forth in Part II (the "Services") in accordance with the terms of this Agreement.

1.2 Time and Manner of Performance. Contractor shall ensure that only fully qualified Personnel perform Services under this Agreement, and such Personnel shall perform Services diligently and in a timely manner, according to the highest applicable standards. Affiliate reserves the right to refuse to use any Personnel assigned to provide Services under this Agreement and to have removed from its premises any Personnel.

1.3 Warranties. Contractor represents and warrants that:
a. Contractor and Personnel, if applicable, have and shall maintain all licenses and certifications necessary to do business and perfonn the Services in the State. Contractor shall provide Affiliate with a copy of such license(s) upon request and shall promptly notify Affiliate in the event of any limitation or loss of such license(s) and certification(s ).
b. Contractor represents and warrants that Contractor and Personnel are not and at no time have been excluded from participating in Medicare, Medicaid, or any other Federal healthcare program, as defined at 42 U .S.C. Section l 320a-7b(f) (each, a " Federal Healthcare Program"). Contractor shall within 30 days prior to the Effective Date and no less than monthly thereafter check the OIG List of Excluded Contractors and the General Services Administration list of pa1iies excluded from participation in Federal Healthcare Programs to ensure that neither Contractor nor any Personnel appear on said lists. Contractor shall immediately notify Affiliate of any threatened or actual exclusion from any Federal Healthcare Program. In the event that Contractor or any Personnel is excluded from participating in any Federal Healthcare Program, this Agreement shall automatically terminate as of the date of such exclusion (unless such Personnel is immediately removed from performing Services under this Agreement). Contractor shall indemnify and hold harmless Affil iate for, from, and against any and all claims, liabilities, losses, damages, penalties, and costs, including reasonable attorneys' fees and costs, incurred by Affiliate arising directly or indirectly, out of any violation of this Section by Contractor, or due to the exclusion of Contractor or any Personnel from any Federal Healthcare Program.
c. Contractor represents and warrants that prior to the Effective Date, Contractor conducted background screenings and Contractor and Personnel successfully passed in accordance with the standards required by Law and consistent with the California Background Investigation Manual. Contractor shall provide proof of compliance with this Section prior to commencing Services and no less than annually thereafter. d. No doctor of medicine, osteopathy, podiatry, optometry, dentistry, or chiropractic (or any immediate family member thereof) possesses any form of ownership or investment interest in Contractor. Contractor has no compensation arrangement with any of the aforementioned medical professionals that in any way varies based upon the value or volume of referrals or other business generated by such medical professional (or any immediate family member) to Affiliate.

1.4 Laws and Standards. Contractor shall comply with the following, as amended from time to time, to the extent applicable to the provision of Services under this Agreement: (a) Affiliate 's corporate integrity program and any Dignity Health Corporate Integrity Agreement(s); (b) Dignity Health's Standards of Conduct; (c) all applicable federal, state, and local laws and regulations (collectively, "Laws"); and (d) the policies, procedures, and rules of Affiliate (the "Affiliate Rules" ).

1.5 Medicare Records. To the extent required by Laws, Contractor shall make available, upon written request from Affiliate, the Secretary of Health and Human Services, the Comptroller General of the United States, or any other authorized agency, this Agreement and Contractor's books, documents, and records ("Contractor's Records").

Contractor shall preserve and make available Contractor's Records for a period of four years after the end of the term of this Agreement. If Contractor is requested to disclose Contractor's Records pursuant to this Section, Contractor [210782]. l 097300 Page 3 of9
Packet Pg. 1908
shall notify Affiliate of the nature and scope of such request, and Contractor shall make available to Affiliate all such Contractor's Records.

1.6 Use of Affiliate's Premises. Contractor shall not use any part of the Affiliate's premises as an office for private business. Contractor and Personnel shall only enter those areas of Affiliate 's facility that are necessary for the performance of Contractor's Services.

1. 7 Health Screening and Immunization. If the provision of Services requires Contractor and/or Personnel to be present in patient care areas or to have direct contact with patients, Contractor, at Contractor's expense, shall assure that Contractor and all Personnel have met all health screening and immunization requirements in accordance with Affiliate's policies prior to providing Services. If applicable, Contactor shall provide written documentation of compliance with this Section prior to commencing Services and at least annually thereafter.

2. COMPENSATION

2.1 Reports. Contractor shall submit to Affiliate, on a periodic basis, a report in a form reasonably acceptable to Affiliate that accurately documents Services provided by Contractor (the "Report').

2.2 Pavment. Affiliate shall, within 30 days after receiving an undisputed Report, pay to Contractor the fees set forth in Part II for Services performed by Contractor.

2.3 Sole Compensation. Contractor agrees that the compensation, as specified above, is the sole and exclusive compensation for Services provided pursuant to this Agreement.

3. TERMINATION

3. I Termination Without Cause. Each Party may tetminate this Agreement without cause, expense, or penalty effective upon expiration of the number of days' prior written notice set forth in Section F of the Key Informational Terms above.

3.2 Termination Upon Breach. Each Party may terminate this Agreement upon any breach by the other Party if such breach is not cured to the satisfaction of the non-breaching Party within 15 days after written notice of such breach is given by the non-breaching Party.

3.3 Effect of Termination or Expiration. Upon termination or expiration of this Agreement, all rights and obligations of the Parties shall cease except those rights and obligations that have accrued and remain unsatisfied prior to the date of termination or expiration, and those rights and obligations that expressly survive termination or expiration of this Agreement. The followi ng Sections of this Part I shall survive expiration or termination of the Agreement: 1.5 (Medicare Records), 4 (Protected Information), 5 (Insurance and Indemnification), 6.3 (Dispute Resolution), and 6.8 (Notices).

4. PROTECTED INFORMATION

4.1 HIPAA. Contractor shall comply with the HIPAA provision set forth in Part III.

4.2 Confidential Information. Contractor shall not use or disclose any Confidential Information (as defined below) for any purpose not expressly permitted by this Agreement without the prior written consent of Affiliate.

Contractor shall protect Confidential Information from unauthorized use, access, or disclosure with no less than reasonable care. "Confidential Information" means any proprietary or confidential information of Affiliate or any other Dignity Health affiliate, any Affiliate patient's protected health infotmation, as defined by HIPAA, and any information, records, and proceedings of Affiliate and/or Medical Staff committees and peer review bodies.

Confidential Information also includes proprietary or confidential information of any third party that may be in Affiliate 's possession.

4.3 Work Product. Contractor acknowledges and agrees that Affiliate shall have sole title to and exclusive ownership of all reports, deliverables, and other work product (collectively the "Work Product'). The Work Product shall be deemed a "work made for hire" as that term is defined under Section IO 1 of the U.S. Copyright Act and Affiliate shall be considered the person for whom the work was prepared for the purpose of determining authorship of any copyright in the Work Product. To the extent a Work Product is not a work made for hire under U.S law or any (2 I 0782]. l 097300 Page 4 of9
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other jurisdiction, Contractor hereby assigns all right, title, and interest in the Work Product to Affiliate and retains no interest therein. Contractor agrees to execute any instruments requested by Affiliate during or after completion of the Services to (i) transfer to Affiliate any rights Contractor may retain in the Work Product, and (ii) enable Affiliate perfect its rights, title, and interest in the Work Product. For purposes of this section, police reports and other investigative documents completed by Officers during the course of their duties shall not be construed as Work Product.

5. INSURANCE AND INDEMNIFICATION

5.1 Insurance Requirements. Contractor shall comply with the insurance requirements set forth in Part JV of this Agreement.

5.2 Mutual Indemnification. Each Party shall indemnify and hold the other Party harmless for, from, and against any and all claims, liabilities, losses, damages, penalties, and costs, including reasonable attorneys' fees and costs, incurred by the indemnified Party and arising out of or resulting from the negligent or willful acts or omissions or breach of this Agreement by the indemnifying Party or the indemnifying Party's employees or agents.

6. MISCELLANEOUS PROVISIONS

6.1 Assignment. Contractor may not assign Contractor's rights or obligations under this Agreement without Affiliate's prior written consent.

6.2 Counterparts, Signatures. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. When signed in pen ink, this Agreement may be delivered by facsimile or by scanned email attachment, and said copies shall be treated as original. Amendments to this Agreement shall be similarly executed by the Parties.

6.3 Entire Agreement, Amendment. This Agreement is the entire understanding and agreement of the Parties regarding its subject matter, and supersedes any prior oral or written agreements, representations, or discussions between the Parties with respect to such subject matter. This Agreement may be amended only by mutual agreement set forth in writing, signed, and dated by the Parties.

6.4 Independent Contractor. The Parties shall at all times be independent contractors in performing under this Agreement.

6.5 No Conflicting Obligations. Contractor represents and warrants that it is not a party to any arrangement that may materially interfere with Contractor's obligations under this Agreement, and Contractor shall immediately notify Affiliate if Contractor becomes involved in any such arrangement.

6.6 Non-Discrimination. Contractor and Affiliate shall be in full compliance with Section 504 of the Rehabilitation Act of 1973, Titles VI and VII of the 1964 Civil Rights Act, and regulations issued pursuant thereto.

Neither Contractor nor Affiliate shall differentiate or discriminate in the provision of services on any basis prohibited by Laws or Affiliate Rules.

6. 7 Notices. Notices under this Agreement shall be given in writing and delivered by either: (a) personal delivery, in which case such notice shall be deemed given on the date of delivery; (b) next business day courier service (e.g., FedEx, UPS, or similar service), in which case such notice shall be deemed given on the business day following the date of deposit with the courier service; or (c) U.S. mail, first class, postage prepaid, registered or certified, return receipt requested, in which case such notice shall be deemed given on the third business day following the date of deposit with the United States Postal Service. Notices shall be delivered to the notice addresses set forth in the Key Information Terms above.

6.8 Referrals. Nothing in this Agreement or in any other written or oral agreement between Affiliate and Contractor contemplates or requires the admission or referral of any patients or business to Affiliate or any affiliate of Affiliate.

6.9 Waiver. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of such provision or any other provision. Any waiver granted by a Party must be in writing and shall apply solely to the specific instance expressly stated.
[210782].1097300 Page 5 of9
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6.10 Title 22 Compliance. If Affiliate is an acute care hospital located in California only: Without limiting the obligations of Contractor, Affiliate shall retain administrative responsibility for its operation, as required by Title 22, California Code of Regulations, Section 70713.

6.11 California Non-resident Withholding. For Services rendered in California by nonresident Contractors only:

Contractor shall, prior to commencing Services, complete all documentation requested by Affiliate in order to assist Affiliate's compliance with California tax withholding requirements, including California Revenue and Taxation Code Section 18662. Such documentation may include: (i) California Franchise Tax Board Fotm 587 (Nonresident Withholding Allocation Worksheet), or (ii) California Franchise Tax Board Form 590 (Withholding Exemption Certificate). Contractor shall be solely responsible for filing California tax returns and the satisfaction of any taxes due with respect to payments under this Agreement. Contractor acknowledges that Affiliate is entitled to rely on the certifications provided in Form 587 or Form 590 and hereby releases Affiliate from any liability with respect to any withholdings paid to the California Franchise Tax Board; except to the extent any withholdings are refunded to Affiliate. Contractor shall promptly notify Affiliate of the change of any reported facts that are part of Form 587 or Form 590, and shall provide Affiliate with an updated Form.

6.12 Venue. This Agreement is governed by and is to be interpreted in accordance with the laws of the State of California without regard to any conflict of law provisions if and as applicable. Venue shall be in San Bernardino County or, if applicable, the Eastern Division of the Central District of California of the United States District Court.

6.13 Severabilitv. Each provision, term, condition, covenant and/or restriction, in whole and in part, of this Agreement shall be considered severable. ln the event any provision, term, condition, covenant and/or restriction, in whole and/or in part, of this Agreement is declared invalid, unconstitutional, or void for any reason, such provision or part thereof shall be severed from this Agreement and shall not affect any other provision, term, condition, covenant and/or restriction of this Agreement, and the remainder of the Agreement shall continue in full force and effect.

6.14 Authority. The individuals executing this Agreement and the instruments referenced herein on behalf of the Parties each represent and warrant that they have the legal power, right, and actual authority to bind the applicable Party to the terms and conditions hereof and thereof.

6.15 Interpretation. The Parties acknowledge and agree that this Agreement is the product of mutual arms-length negotiations and accordingly, the rule of construction, which provides that the ambiguities in a document shall be construed against the drafter of that document, shall have no application to the interpretation and enforcement of this Agreement. Titles and captions are for convenience of reference only and do not define, describe, or limit the scope or the intent of the Agreement or any of its terms. References to section numbers are to sections in the Agreement unless expressly stated otherwise.

6.16 No Third Partv Beneficiaries. The Parties to this Agreement do not intend for any third party to obtain a right by virtue of this Agreement.

7. ADDITIONAL PROVISIONS

7.1 Contractor and the City of San Bernardino Police Department ("Police Department") shall obtain Hospital 's prior written consent of the text of any proposed publicity concerning the Neighborhood Policing Program ("Program") prior to the release of such publicity. Hospital may include information regarding this Program, including the amount and purpose of the Program, any photographs provided by Contractor or Police Department, its logo or trademark, or other information or materials about Police Department's organizations and activities, in Hospital 's periodic public reports, newsletters, and news releases as approved by the City of San Bernardino City Manager.

7.2 In addition to the obligations under this Agreement, at all times when performing services under the Program, police officers shall be subject to and required to comply with the rules and regulations of Police Department, including use of force.

7.3 The use of the Police Department or City of San Bernardino logo requires prior written approval by the Contractor.

7.4 All Police Department employees abide by the Law Enforcement Code of Ethics and all Police Department policies and procedures.
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Part II

INDEPENDENT CONTRACTOR AGREEMENT

SERVICES AND FEES
a. Description of Services. Contractor shall cause the City of San Bernardino Police Department ("Police Department" ) to provide the Services:
(! ) Program Goals. The goal of the Neighborhood Policing Program ("Program") is to implement a comprehensive facility policing program with Hospital.
(2) Program Objectives and Deliverables.
b. Fees.
o Police Department shall provide two (2) full-time Officers such that one (I) full-time Officer will be stationed at each Hospital's emergency department a minimum of four (4) days a week for a total of 40 hours weekly, Thursday through Sunday, at a timeframe to be mutually determined by the Parties. Officers will dedicate all of their time on the Hospital campuses in the emergency department waiting rooms or as otherwise mutually agreed upon by Hospital and Police Department.
o Police Department will provide periodic training seminars to enhance personal safety and awareness as mutually agreed to by Police Department and each Hospital in writing. o Police Depaiiment will assist Hospitals' security staff in providing police services for the Hospitals' campuses and immediate area.
o At Hospital 's reasonable request, Police Department shall promptly remove an Officer providing services under this Program and replace him or her with another Officer reasonably acceptable to Hospital.

I. Affil iate agrees to compensate Contractor in the amount not to exceed $200,000 annually per fulltime Officer, which amount shall include any overtime expenditures. The compensation per fulltime Officer will be based on the seniority level of the Officer who provides the Services and will be billed quarterly.

2. Contractor shall invoice Affiliate on a fiscal year quarter basis (itemized by month). The compensation billed quarterly shall be prorated based on the number of days this Agreement is in effect in the case of any partial month or fiscal year quarter at the beginning or the end of the term of this Agreement. The first three (3) month fiscal year quarter shall commence on January 1, 2019 and continue through March 31, 2019. Contractor shall only invoice Affiliate for any applicable pro-rata period for a partial fiscal year quarter. Contractor shall submit an invoice to Affiliate at the end of each fiscal year quarter or applicable pro-rata period.

3. Any overtime expenditures that are directly related to the Services must be approved in advance by Affiliate. Such overtime expenditures will be calculated at 1.5 times the specific Officer's hourly salary, will be paid by Affiliate, and will be no greater than· Hourly Rate Overtime Hourly Rate
Effective August I , 20 18 $53 .21 $79.81
Effective August 1, 2019 $55.02 $82.53
Effective August 1, 2020 $56.90 $85.35
c. Reasonable Expenses. Affiliate shall reimburse Contractor for: (a) reasonable and necessary business expenses incurred in connection with the performance of the Services if: (i) Affiliate approves the expenses in writing, in advance; (ii) the expenses relate directly to Contractor's performance of Services; (iii) the expenses meet the requirements for reimbursement under the Affiliate Rules; and (iv) Contractor submits receipts to Affiliate within 60 days of incurring the expenses. [210782]. l 097300 Page 7 of 9
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Part III

INDEPENDENT CONTRACTOR AGREEMENT (NON-CLINICAL LF)

HIPAA COMPLIANCE
"Hf PAA" means the Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191 ), Title XIII of the American Recovery and Reinvestment Act of 2009 (Public Law 111 -005) and the rules, guidance and regulations promulgated thereunder, as amended from time to time, including 45 Code of Federal Regulations, Parts 160 and 164.

NO ACCESS TO PHI
The Parties acknowledge and agree that Contractor and Personnel shall neither have nor require access to or use of any of Affiliate's Sensitive Information (defined below) or protected health information ("PHI"), as such term is defined under HIPAA, for purposes of Contractor meeting its obligations hereunder. Accordingly, the Parties agree that neither Contractor nor Personnel shall have access to or use of any Sensitive Infotmation or PHI. Any action by Contractor or Personnel to access Sensitive Information or PHI shall be a material breach of this Agreement. To the extent that Contractor and Personnel receive any personal information from patients, including Sensitive Information or PHI, Contractor and Personnel shall treat such information as strictly confidential and shall not disclose such information (other than as required by law) to any third patiy. Contractor shall be solely liable for any violations of privacy laws by Contractor and Personnel. "Sensitive Information" includes any information in any form that identifies, relates to, describes, or is capable of being associated with a particular individual and that is not generally available to the public, such as social security number, employee identification number, tax identification number, passport number, driver's license or state identification card number, insurance policy number, employment histoty, bank account number, credit card number, debit card number or any financial information. The terms of this Part ITI shall survive termination or expiration of this Agreement. [210782]. l 097300 Page 8 of9
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Part IV

INDEPENDENT CONTRACTOR AGREEMENT (NON-CLINICAL LF)

INSURANCE REQUIREMENTS
Contractor shall obtain and continuously maintain during the term hereof and for not less than three (3) years following the Expiration Date or earlier termination of this Agreement the following insurance coverages naming Contractor and Personnel as named insureds:
a) Commercial and general liability insurance with a limit of not less than $1 ,000,000 per occurrence and $3,000,000 annual aggregate.
b) Workers' Compensation insurance, as required by Laws. c) Employer's liability insurance with a limit of not less than $1 ,000,000 for each occurrence. d) Business automobile liability insurance covering hired, owned and non-owned vehicles used to provide Services under the Agreement, if applicable, with a limit of not less than $1 ,000,000 for each occurrence. e) Errors and omissions insurance with a limit ofnot less than $1 ,000,000 per occurrence and $3,000,000 annual aggregate.

Contractor shall provide Affiliate with certificates of insurance prior to the Effective Date and as of each annual renewal during the term of this Agreement. In the event of any modification, termination, expiration, non-renewal or cancellation of any of such insurance policy, Contractor shall give written notice thereof to Affiliate not more than ten ( l 0) days following Contractor's receipt of such notification. Contractor may meet the obligations of this Part IV by being self-insured.
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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date:

To:

From:

Department:

Subject:

July 20, 2022
Honorable Mayor and City Council Members
Robert D. Field, City Manager;
Darren Goodman, Chief of Police
Police
Acceptance of 2020 and 2021 JAG Grants
Recommendation
Adopt Resolution No. 2022-147 of the Mayor and City Council of the City of San Bernardino, California, authorizing the acceptance of the 2020 and 2021 Edward Byrne Justice Assistance Grants and increasing the FY2022/23 Adopted Budget grant revenue and expenditures $379,025.

Background
The San Bernardino Police Department receives formulary grant funds from the Edward Byrne Memorial Justice Assistance Grant (JAG) as a sub-recipient of the County of San Bernardino. The last grant received was the 2016 award in the amount of $154,574. In 2017 the federal government-imposed conditions on federal grant funds awarded to local law enforcement requiring immigration enforcement. In August 2017 the Attorney General challenged this ruling. City and county agencies delayed acceptance of their annual awards until the lawsuits concluded which did not occur until 2019. Annual grant applications were submitted, and allocations determined by the Department of Justice, but all federal funding was delayed for 2017, 2018, 2019, 2021, and 2021. In 2022 the grant funds became available for spending.

Grant funding is allocated on a formula that includes population and a three-year average of reported violent crime for each jurisdiction. The City of San Bernardino has been designated as a disparate jurisdiction, which is defined as a city receiving oneand-one half the County allocation.

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The County of San Bernardino serves as the grant administrator and fiscal agent for the JAG program funds and charges each jurisdiction a 5% administrative fee. Below is a table illustrating the City’s allocation and award amounts, as well as the County’s 5% Administrative fees and grant periods. JAG grants are cash grants paid in advance and there are no matching funds required by this grant.

Year Total
Allocation
Administrative
Fees
City
Award Amount
2020 $184,334 $9,217 $175,117
2021 $214,640 $10,732 $203,908
Discussion
The San Bernardino Police Department submitted projects for both the 2020 and 2021 JAG grants and those projects involved the purchase of additional patrol vehicles. Due to the delay in the release of 2020 and 2021 JAG funds for spending, the Police Department funded the purchase of vehicles through other sources, freeing the grant allocation for 2020 and 2021 to be used for the purchase of equipment and services that will better serve the current needs of the department. 2021-2025 Strategic Targets and Goals
The request to authorize the receipt, obligation and expenditure of the 2020 and 2021 Edward Byrne Memorial Justice Assistance Grants aligns with Goal No.

1. Financial Stability: Implement, maintain, and update a fiscal accountability plan.

Fiscal Impact
The fiscal impact to the City is a budget amendment of $379,025 to revenue and expenditures in the FY2022/23 adopted budget. Grant account numbers to be established after approval of this item. There is no match requirement for this grant.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2022-147, authorizing the acceptance of the 2020 and 2021 Edward Byrne Justice Assistance Grants and increasing the FY2022/23 Adopted Budget grant revenue and expenditures $379,025.

Attachments
Attachment 1 Resolution No. 2022-147; Exhibit A - 2020 JAG Agreement; Exhibit B - 2021 JAG Agreement
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Ward All Wards
Synopsis of Previous Council Actions
On 9/20/20, the Mayor and City Council adopted Resolution No. 2020-220, accepting the 2017, 2018, and 2019 JAG grants in the total amount of $533,314.

On 11/7/16 the Mayor and City Council adopted Resolution No. 2016-230, authorizing acceptance of the FY 2016/17 JAG grant in the amount of $154,574.

On 5/2/16, the Mayor and City Council adopted Resolution No. 2016-87, authorizing acceptance of the FY 2015/16 JAG grant in the amount of $136,504.

On 6/16/14, the Mayor and City Council adopted Resolution No. 2014-170, authorizing the acceptance of the FY 14/15 JAG grant in the amount of $142,943.

On 8/5/2013, the Mayor and City Council adopted Resolution No. 2013-230, authorizing the acceptance of the FY 13/14 JAG grant in the amount of $130,007.

On 5/7/2012, the Mayor and City Council adopted Resolution No. 2012-75, authorizing the acceptance of the FY 12/13 JAG grant in the amount of $136,168.

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Resolution No. 2022-147
Resolution 2022-147
July 20, 2022

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Mayor and City CouncilJuly 20, 2022

Mayor and City Council
July 20, 2022