Agenda packet — Mayor and City Council, August 3, 2022 (part 1 of 3)

Mayor and City Council of the City of San Bernardino Page 1

CITY OF SAN BERNARDINO
AGENDA

FOR THE

REGULAR MEETING OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO,

MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR

AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN

BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT

AGENCY, AND MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE

HOUSING AUTHORITY, AND MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO

ACTING AS THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY WEDNESDAY, AUGUST 03, 2022
NO ITEMS FOR CLOSED SESSION 7:00 PM OPEN SESSION
FELDHEYM CENTRAL LIBRARY • SAN BERNARDINO, CA 92410 • WWW.SBCITY.ORG Theodore Sanchez John Valdivia Damon L. Alexander
COUNCIL MEMBER, WARD 1 COUNCIL MEMBER, WARD 7
MAYOR
Sandra Ibarra Robert D. Field
COUNCIL MEMBER, WARD 2 CITY MANAGER
Juan Figueroa Sonia Carvalho
COUNCIL MEMBER, WARD 3 CITY ATTORNEY
Fred Shorett Genoveva Rocha
COUNCIL MEMBER, WARD 4 CITY CLERK
Ben Reynoso
COUNCIL MEMBER, WARD 5
Kimberly Calvin
COUNCIL MEMBER, WARD 6
Welcome to a meeting of the Mayor and City Council of the City of San Bernardino.

PLEASE VIEW THE LAST PAGES OF THE AGENDA FOR PUBLIC
COMMENT OPTIONS OR CLICK ON THE FOLLOWING LINK:
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To view PowerPoint presentations, written comments, or any revised documents for this meeting date, select the link https://tinyurl.com/agendabackup080322 From the City's homepage www.sbcity.org select the Government category > City Clerk > on the Navigation menu select Search for Records Online > Council Agendas > Current Year 2022 > Meeting Date
Mayor and City Council of the City of San Bernardino Page 2

CALL TO ORDER
Attendee Name
Council Member, Ward 1 Theodore Sanchez
Council Member, Ward 2 Sandra Ibarra
Mayor Pro-Tem, Ward 3 Juan Figueroa
Council Member, Ward 4 Fred Shorett
Council Member, Ward 5 Ben Reynoso
Council Member, Ward 6 Kimberly Calvin
Council Member, Ward 7 Damon L Alexander
Mayor John Valdivia
City Manager Robert D. Field
City Attorney Sonia Carvalho
City Clerk Genoveva Rocha
7:00 P.M.

INVOCATION AND PLEDGE OF ALLEGIANCE

CITY MANAGER UPDATE

MAYOR & CITY COUNCIL UPDATES/REPORTS ON CONFERENCES & MEETINGS

PRESENTATIONS

1. Resolution Celebrating the 50th Anniversary of the 1972 Civic Athletic Club (CAC) Little League Baseball All Star Team

PUBLIC COMMENTS FOR ITEMS LISTED AND NOT LISTED ON THE AGENDA

DISCUSSION

2. Cancel the September 7, 2022, Mayor and City Council Meeting Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the proposed amendment to the 2022 Mayor and City Council Meeting Schedule canceling the September 7, 2022, Mayor and City Council Meeting.

3. Third Amendment to Exclusive Negotiating Agreement (ENA) – Carousel Mall (Ward1)
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California:

1. Approve the Amendment to the Exclusive Negotiating Agreement (“ENA”) between the City of San Bernardino and San Bernardino Development Company, LLC and LPC West, Inc., for the development of Carousel Mall; and

2. Authorize the City Manager, or designee, to take any further actions and execute any further documents as necessary to effectuate the agreements. p. 13
p. 15
p. 19
Mayor and City Council of the City of San Bernardino Page 3

4. Adopt a Master Equity Lease Agreement for Light Duty Vehicles Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the City Manager to enter into a Master Equity Lease Agreement with Enterprise Fleet Management, Inc., for light-duty vehicles and authorize the Agency Director of Administrative Services to issue a purchase order in an amount not to exceed $1,200,000 to Enterprise Fleet Management.

PUBLIC HEARINGS

5. Public Hearing on Annexation No. 5 to Community Facilities District 20181 (Safety Services), (TR 20258), Adoption of Resolutions for Annexing into the Community Facilities District (Ward 7)
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California:

1. Hold a Public Hearing;

2. Adopt Resolution No. 2022161 of the Mayor and City Council of the City of San Bernardino, California, acting as the legislative body of the City of San Bernardino Community Facilities District No. 20181 (Safety Services), annexing territory to Community Facilities district No. 20181 (Safety Services) and calling elections therein;

3. Hold a special landowner election and canvass the election;

4. Adopt Resolution No. 2022162 Resolution of the Mayor and City Council of the City of San Bernardino, California, acting as the legislative body of the City of San Bernardino Community Facilities District No. 20181 (Safety Services) certifying the results of the August 3, 2022 annexation and special tax election.

6. Public Hearing on Annexation No. 18 to Community Facilities District 20191 (Ward 6)
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California:

1. Hold a Public Hearing;

2. Adopt Resolution No. 2022163 of the Mayor and City Council of the City of San Bernardino, California, calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to Community Facilities District No. 20191 (Maintenance Services) (Annexation No. 18);

3. Hold a special landowner election and canvass the election;

4. Adopt Resolution No. 2022164 of the Mayor and City Council of the City of San Bernardino, California, declaring election results for Community Facilities District No. 2019 1 (Maintenance Services) (Annexation No. 18); p. 68
p. 131
p. 159
Mayor and City Council of the City of San Bernardino Page 4

5. Introduce, read by title only, and waive further reading of Ordinance No. MC1590 of the Mayor and City Council of the City of San Bernardino, California, amending Ordinance No. MC1522 and levying special taxes to be collected during Fiscal Year 20222023 to pay annual costs of the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, parks and trail maintenance, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 20191 (Maintenance Services); and

6. Schedule the final reading and adoption of Ordinance No MC1590 for August 17, 2022.

7. Development Code Amendment 2203 (Accessory Dwelling Units) (All Wards) Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California:

1. Introduce, read by title only, and waive further reading of Ordinance No.

MC1591 of the Mayor and City Council of the City of San Bernardino, California, approving Development Code Amendment 2203 amending Section 19.04.030(2)(P)(6)(a)(i)
Specific ADU Requirements) of the City of San Bernardino Municipal Code (Title 19) to increase the maximum size of a detached or attached Accessory Dwelling Unit from 1,000 square feet to 1,200 square feet; and finding the Ordinance is exempt under the California Environmental Quality Act (Attachment 1) (Attachment 1); and

2. Schedule the adoption of the above Ordinance for the regularly scheduled meeting of the Mayor and City Council on August 17, 2022.

8. Development Code Amendment 2204 (Alcoholic Beverage Sales Locational Restrictions) (All Wards)
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1) Introduce, read by title only, and waive further reading of Ordinance No.

MC1592 of the Mayor and City Council of the City of San Bernardino, California, approving Development Code Amendment 2204 amending Section 19.06.030(2)(B) Article II Section III(A) (Alcohol Beverage Sales – Locational Restrictions) and Section 19.06.030(2)(B) Article II Section VI(D)(E) (Alcohol Beverage Sales – Permit Application) of the City of San Bernardino Municipal Code (Title 19) to increase the locational restriction from 500 feet to 1,000 feet for new alcoholic beverage sales activities from sensitive land uses; and finding the Ordinance is exempt under the California Environmental Quality Act (Attachment 1) (Attachment 1); and
2) Schedule the adoption of the above Ordinance for the regularly scheduled meeting of the Mayor and City Council on August 17, 2022.
p. 214
p. 235
Mayor and City Council of the City of San Bernardino Page 5

CONSENT CALENDAR

9. Amendment No. 1 to Owner Occupied Rehabilitation Program (OORP) Agreement with Neighborhood Partnership Housing Services, Inc. (NPHS)p. 258 Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino approve Amendment No. 1 to the Owner-Occupied Rehabilitation Program (OORP) Agreement with Neighborhood Partnership Housing Services, Inc. (NPHS)

10. Final Reading and Adoption of Ordinance MC1589 Warmington Homes Medical Center Drive Project p. 422
Recommendation:

Adopt Ordinance No. MC-1589 approving Development Code Amendment (Zoning Map Amendment) 21-06 changing the Zoning District Classification of one (1) parcel (APN: 0143-191-59) containing approximately 9.9 acres from Commercial General (CG-1) to Residential Medium (RM), pursuant to a Mitigated Negative Declaration (Attachment 1).

11. Final Reading and Adoption of Ordinance MC1588 – Warmington Homes Palm Avenue Project p. 430
Recommendation:

Adopt Ordinance No. MC-1588 approving Development Code Amendment (Zoning Map Amendment) 21-07 changing the Zoning District Classification of five (5) parcels (APN: 0285-211-05, 21, 22, 23 and 25) containing a total of approximately

14.70 acres from Commercial General (CG-1) to Residential Medium (RM), pursuant to a Mitigated Negative Declaration (Attachment 1).

12. Final Reading and Adoption of Ordinance No. MC1583 (Home Occupation Permits) (All Wards) p. 439
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Ordinance No. MC-1583 adopting Development Code Amendment 22-01 amending Section 19.54.030 (Operating Standards) of the City of San Bernardino Municipal Code (Title 19) to update the standards for home occupations (Attachment 1).

13. Approval of Commercial and Payroll Disbursements (All Wards) p. 449 Recommendation:

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

14. Investment Portfolio Report for June 2022 (All Wards)p. 490 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 June 2022.

Mayor and City Council of the City of San Bernardino Page 6

15. Resolutions Authorizing Fiscal Year 202223 Special Tax Levies for Previously Formed Community Facilities Districts p. 502 Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt the following resolutions:

1. Adopt Resolution No. 2022-165 of the Mayor and City Council of the City of San Bernardino, California, Levying Special Taxes to be Collected During Fiscal Year 2022-23 to Pay the Annual Cost of Public Safety Services and Administrative Expenses within Community Facilities District No. 2018-1 (Safety Services) of the City of San Bernardino

2. Adopt Resolution No. 2022-166 of the Mayor and City Council of the City of San Bernardino, California, Levying Special Taxes to be Collected During Fiscal Year 2022-23 to Pay for Facilities or to Pay Principal and Interest on Bonds and Administrative Expenses within Community Facilities District No 2018-2 (Verdemont Ranch);

3. Adopt Resolution No. 2022- 167 of the Mayor and City Council of the City of San Bernardino, California Levying Special Taxes to be Collected During Fiscal Year 2022-23 to Pay the Annual Cost of Maintenance Services and Administrative Expenses within Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino;

4. Adopt Resolution No. 2022-168 of the Mayor and City Council of the City of San Bernardino, California, Levying Special Taxes to be Collected During Fiscal Year 2022-23 to Pay for Facilities or to Pay Principal and Interest on Bonds and Administrative Expenses within Community Facilities District No. 2020-1 (Rancho Palma) of the City of San Bernardino; and

5. Adopt Resolution No. 2022-169 of the Mayor and City Council of the City of San Bernardino, California, Levying Special Taxes to be Collected During Fiscal Year 2022-23 to pay for Facilities or to Pay Principal and Interest on Bonds and Administrative Expenses within Community Facilities District No. 2021-1 (Ferree Street) of the City of San Bernardino.

16. Amendment No. 2 to Agreement with California Computer Options, Inc. (All Wards) p. 545
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize Amendment No. 2 to the Professional Service Agreement with California Computer Options Inc., for information technology assistance in the City’s migration to Office 365 and related server and other required upgrades.

17. Purchase of Patrol Vehicle Equipment p. 560
Recommendation:

Authorize the Finance Department to issue a purchase order to DuraTech USA for up to
$185,000 for the purchase of patrol vehicle equipment.

Mayor and City Council of the City of San Bernardino Page 7

18. Final Reading and Adoption of Ordinance No. MC1582 (Ward 3) p. 600 Recommendation:

Adopt Ordinance No. MC-1582 of the Mayor and City Council of the City of San Bernardino amending Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2022-2023 to pay the annual costs of the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, parks and trail maintenance, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services).

19. Resolution Declaring Intent to Annex Territory: Community Facilities District No. 20191 (Maintenance Services): Annexation No. 22, Tax Zone No. 23 (1300 E Highland) (Ward 7) p. 610
Recommendation:

Adopt Resolution No. 2022-171 of the Mayor and City Council of the City of San Bernardino declaring its intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino, adopting a map of the area to be proposed (Annexation No. 22) and authorizing the levy of a special taxes therein.

20. Establish a “No Parking 6 PM to 6 AM” Parking Restrictions on the Westside of State Route 18 (SR18) Turnout South of Old Waterman Canyon Road p. 649 (Ward 4)
Recommendation:

Adopt Resolution No. 2022-172 of the Mayor and City Council of the City of San Bernardino, California, amending Resolution No. 3985 entitled, in Part, “A Resolution… Prohibiting Parking Upon Certain Designated Streets, Alleys or Portion Thereof…” to establish a “No Parking 6PM to 6AM” Parking Restriction on the Westside of State Route 18 (SR-18) Turnout South of OldWaterman Canyon Road.

21. Construction Contract Award Pepper Avenue Street Improvement Project (Ward 3, 6) p. 657
Recommendation:

Adopt Resolution No. 2022-173 of the Mayor and City Council of the City of San Bernardino, California: 1. Approving the award of a construction contract with Hillcrest Contracting, Inc., in the amount of $5,553,697 for the Pepper Avenue street improvement project; and 2. Authorizing and directing the City Manager to execute the Administrative Settlement Agreement regarding partial purchase of 795 N. Pepper Ave., San Bernardino, California: APN: 0142-344-24; and 3.

Authorizing the Agency Director of Administrative Services to issue a check for $14,000 to satisfy the terms of the Administrative Settlement Agreement regarding the partial purchase of 795 N. Pepper Ave., San Bernardino, California; and 4.

Authorizing construction, construction contingencies and inspection costs in the total amount of $6,610,000 for the Pepper Avenue street improvement project; and 5.

Authorizing the City Manager or designee, to execute all documents for the construction of the Pepper Avenue street improvement project with Hillcrest Contracting, Inc.; and 6. Authorizing the City Manager or designee, to expend the contingency fund, if necessary, to complete the project.

Mayor and City Council of the City of San Bernardino Page 8

22. Agreement with Inland Empire Landscape, Inc. for Landscape Maintenance at City Street Medians, Islands, and LMDs (All Wards) p. 707 Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California:

1. Authorize the City Manager to execute a Maintenance Services Agreement with Inland Empire, Inc., for landscape maintenance at all City medians and Landscape Maintenance Districts (LMDs); and
2 Authorize the Agency Director of Administrative Services to appropriate funds in the amount of $1,138,367.98 to the Public Works Operations and Maintenance Division General Fund; and issue a purchase order in the amount of $1,138,367.98 for Fiscal Year 2022/23; and
3 Adopt Resolution No. 2022175 Authorizing the Agency Director of Administrative Services to amend the FY 2022/23 General Fund Operating Budget revenue and expenditure by $241,956 for landscape maintenance at City Street medians, islands, and landscape maintenance districts (LMDs).

23. Amendment No. 2 to Agreement with Kabbara Engineering for Pepper Avenue Rehabilitation Project (Wards 3, 6) p. 1086
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the City Manager to execute all documents in support of Amendment No. 2 to the Professional Engineering Services Agreement with Kabbara Engineering for design services related to the Pepper Avenue rehabilitation from Baseline Road to Mill Street.

24. Amendment No. 1 to Agreement with RHA Landscape Architects – Planners, Inc. for Nicholson Park Design (Ward 6) p. 1111
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve Amendment No. 1 to the Professional Design Service Agreement with RHA Landscape Architects - Planners, Inc. adding extra design services in the amount of
$197,250 and increasing the purchase order to a total amount not-to-exceed $412,545 for the preliminary design of the Nicholson Park.

25. Final Reading and Adoption of Ordinance No. MC1587 - Annexation No. 23 (Ward 7) p. 1159
Recommendation:

Adopt Ordinance No. MC-1587 of the Mayor and City Council of the City of San Bernardino amending Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2022-2023 to pay the annual costs of the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, parks and trail maintenance, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance
Services).

Mayor and City Council of the City of San Bernardino Page 9

26. Final Reading and Adoption of Ordinance MC1586 - Annexation No. 20 (Ward 7) p. 1169
Recommendation:

Adopt Ordinance MC-1586 of the Mayor and City Council of the City of San Bernardino, California, amending Ordinance MC-1522 and levying special taxes to be collected during Fiscal Year 2022-2023 to pay the annual costs of the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, parks and trail maintenance, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services).

27. Resolution Approving Acceptance of Grant Funds From the Clean California Local Grant Program (Ward 1) p. 1179
Recommendation:

Adopt Resolution No. 2022-174 of the Mayor and City Council of the City of San Bernardino, California, approving acceptance of grant funds from the Clean California Local Grant Program in the amount of $722,727, and authorizing a budget amendment to reflect acceptance of the grant funds, and authorizing the City Manager or designee to expend the funds and complete any contract documents associated with the grant.

ITEMS TO BE CONSIDERED FOR FUTURE MEETINGS

28. Give the Chief Procurement Officer a dollar authorization of $50,000 and increase City Manager’s signing authority to $100,000 (All Wards) – Council Member Alexander p. 1188

29. Regulation of ShortTerm Residential Rentals (All Wards) – Council Member Sanchez p. 1189

ADJOURNMENT
The next joint regular meeting of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency will be held on August 17, 2022 at the Feldheym Central Library located at 555 West 6th Street, San Bernardino, California 92401. Closed Session will begin at 5:30 p.m. and Open Session will begin at 7:00 p.m.

Mayor and City Council of the City of San Bernardino Page 10

CERTIFICATION OF POSTING
AGENDA
I, Genoveva Rocha, CMC, City Clerk for the City of San Bernardino, California, hereby certify that the agenda for the August 03, 2022 Regular Meeting of the Mayor and City Council and the Mayor and City Council acting as the Successor Agency to the Redevelopment Agency was posted on the City's bulletin board located at 201 North "E" Street, San Bernardino, California, at the Feldheym Central Library located at 555 West 6th Street, San Bernardino, California, and on the City's website sbcity.org on Friday, July 29, 2022.

I declare under the penalty of perjury that the foregoing is true and correct.

Mayor and City Council of the City of San Bernardino Page 11 NOTICE: Any member of the public may address this meeting of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency on any item appearing on the agenda by approaching the microphone in the Council Chamber when the item about which the member desires to speak is called and by asking to be recognized.

Any member of the public desiring to speak to the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency concerning any matter not on the agenda but which is within the subject matter jurisdiction of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency may address the body at the end of the meeting, during the period reserved for public comments. Said total period for public comments shall not exceed 60 minutes, unless such time limit is extended by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. A three minute limitation shall apply to each member of the public, unless such time limit is extended by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. No member of the public shall be permitted to "share" his/her three minutes with any other member of the public.

Speakers who wish to present documents to the governing body may hand the documents to the City Clerk at the time the request to speak is made.

The Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency may refer any item raised by the public to staff, or to any commission, board, bureau, or committee for appropriate action or have the item placed on the next agenda of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. However, no other action shall be taken nor discussion held by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency on any item which does not appear on the agenda unless the action is otherwise authorized in accordance with the provisions of subdivision (b) of Section 54954.2 of the Government Code.

Public comments will not be received on any item on the agenda when a public hearing has been conducted and closed.

Mayor and City Council of the City of San Bernardino Page 12

PUBLIC COMMENT OPTIONS
Please use ONE of the following options to provide a public comment:
1) Written comments can be emailed to [email protected]. Written public comments received up to 4:00 p.m. on the day of the meeting (or otherwise indicated on the agenda) will be provided to the Mayor and City council and made part of the meeting record. They will not be read aloud unless you require an ADA accommodation.

Please note: messages submitted via email and this page are only monitored from the publication of the final agenda until the deadline to submit public comments. Please contact the City Clerk at 9093845002 or [email protected] for assistance outside of this timeframe. 2) Attend the meeting in person and fill out a speaker slip. Please note that the meeting Chair decides the cutoff time for public comment, and the time may vary per meeting. If you wish to submit your speaker slip in advance of the meeting, please submit your request to speak using the form on the following page:
https://sbcity.tiny.us/PublicCommentOptions.
3) REMOTE PARTICIPATION VIA ZOOM (For public comment only meeting will not be viewable on Zoom)
a) You can use a mobile phone or a landline to dial into a Zoom meeting. i) Dial (669) 9006833. When prompted, enter the Meeting ID: 6778459453 Passcode:2021
The public may begin joining the meeting on Zoom or by callingin to be added to the speaker queue at 5:15 PM for Closed Session.

Once admitted to the Zoom Public Comment meeting to request to speak at the appropriate time:
ii) Dial *9 from your phone to raise your hand via Zoom If calling in staff will confirm the last four digits of the caller's phone number and unmute them, the caller must then press *6 to speak from their device. Callers are encouraged, but not required, to identify themselves by name. Each caller will be provided three (3) minutes to speak. If you are calling in, please turn your volume down on your television or other devices to limit any feedback when you speak.
b) Join the Meeting by clicking on the Zoom link below:
https://us06web.zoom.us/j/6778459453?pwd=ZTkzdUJtcDMrbmFNQnVDSFhva XQxZz09 Mayor and City Council of the City of San Bernardino Page 13 Meeting ID: 677 845 9453
Passcode:2021
You can also Go to Zoom.us and click "Join a Meeting" at the top.

Enter the Meeting ID: 6778459453
Passcode:2021
Public Hearings:

If you are commenting on a Public Hearing, please stay signed on to the Zoom session or sign on when the Public Hearing is announced. You will be prompted by staff when the item is being discussed.

Printed on 07/29/2022

PRESENTATIONS
City of San Bernardino
Request for Council Action

Date: August 3, 2022
To: Honorable Mayor and City Council Members
From: Robert D. Field, City Manager
Department: Mayor's Office
Subject: Resolution Celebrating the 50th Anniversary of the 1972 Civic Athletic Club (CAC) Little League Baseball All Star Team
Packet Pg. 13
Resolution Celebrating the 50th Anniversary of the
1972 Civic Athletic Club (CAC)
Little League Baseball All Star Team
WHEREAS; July 2022 marks the historical 50th Anniversary of the 1972 Civic Athletic Club Little League Baseball All Star Team, known as “CAC”. CAC made national headlines to win the first and only California Little League State Championship from San Bernardino, CA; and WHEREAS; CAC, Civic Athletic Club was from San Bernardino’s Sixth Ward. CAC, used to practice and play at former Muscott Park, formerly surrounded by orange groves across the street from San Bernardino Community Hospital.

WHEREAS; This All-Star team (which was made of players from teams with names like the Gas Hogs, Cars, Missiles, Jets and Rockets) took San Bernardino on an incredible journey and would go down in history for the Westside community. The 1972 Civic Athletic Club All-Star team, CAC, was coached by Al Jury a renowned record setting National Football League referee and icon of San Bernardino and Leonard (Sonny) Davis (deceased). No one could have imagined this team would have united the City of San Bernardino the way that they did; and WHEREAS; July 2022 marks the inaugural year of the Western Region Little Headquarters in San Bernardino where CAC’s most memorable team was just two games away from earning a spot to play in the Little League World Series in Williamsport, Pennsylvania. Unfortunately, CAC lost to Hawaii in the semi-finals; and
WHEREAS; the summer of 1972 was a flash point for the sixth ward and the city of San Bernardino. The entire community, as well as the city, was very proud of this group of young men. The team makeup was comprised of the League President Mr. Felton Anderson and the Vice President Mr. Bobby Caldwell (deceased). The Manager Mr. Al Jury and his Coach Mr.

Leonard Davis (deceased) and Juanita Louise Jury, Treasurer/Statistician. The team all-stars included: Michael Adams, Paul Anderson, Harry (Teddy) Brown, Bobby Caldwell, Lynn Davis, Gary Dawson, Gerald Jacks, John Jordan, Kevin McDowell, Kevin Mosley, Zachary Russ, Ladell Taylor, Byron Wilhite (deceased), and William (Billy) Wilson NOW THEREFORE BE IT RESOLVED; that the City of San Bernardino does hereby congratulate the 1972 Civic Athletic Club (CAC) Little League Baseball All Star Team on their 50th anniversary. On this occasion, we honor and celebrate your unforgettable, amazing, fantastic, victorious title and are forever grateful for your contributions to Little League Baseball.

Presented on this 20th day of July 2022
Packet Pg. 14

DISCUSSION
City of San Bernardino
Request for Council Action
Date: August 3, 2022
To: Honorable Mayor and City Council Members
From: Robert D. Field, City Manager
Department: City Manager's Office
Subject: Cancel the September 7, 2022, Mayor and City Council Meeting
Recommendation
It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the proposed amendment to the 2022 Mayor and City Council Meeting Schedule canceling the September 7, 2022, Mayor and City Council Meeting.

Background
At the December 15, 2021, Mayor and City Council meeting, the 2022 Mayor and City Council Meeting Schedule was approved with modifications (Attachment 1). The modifications included canceling the following meetings due to how close they are to City holidays.

Mayor and City Council Meeting Cancelations:
 January 5, 2022
 April 20, 2022
 July 6, 2022
 December 21, 2022
At the July 20, 2022, Mayor and City Council meeting, the City Council pre-approved travel for the Mayor and City Council Members to attend a variety of professional engagements including the upcoming League of California Cities Annual Conference and Expo in Long Beach, CA, in September 2022.

Packet Pg. 15
Discussion
As a result of Council action at the July 20, 2022, Mayor and City Council meeting, staff recommend an amendment to the adopted 2022 Mayor and City Council Meeting Schedule. The recommended amendment would cancel the regularly scheduled meeting on Wednesday, September 7, 2022, and allow the City’s full participation at the League of California Cities 2022 Annual Conference and Expo, which will take place from September 7-9.
2021-2025 Key Strategic Targets and Goals
Amending the 2022 Mayor and City Council meeting schedule aligns with Key Target No. 2c: Re-establish City as the Regional Leader/County Seat by providing an opportunity for both staff and members of the City Council to be present all three days of the conference to advocate for the City.

Fiscal Impact
There is no fiscal impact associated with amending the 2022 Mayor and City Council meeting schedule.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the proposed amendment to the 2022 Mayor and City Council Meeting Schedule canceling the September 7, 2022, Mayor and City Council Meeting.

Attachments
Attachment 1 – 2022 Mayor and City Council Meeting Schedule Ward
All Wards
Synopsis of Previous Council Actions
December 15, 2021 Mayor and City Council adopted the 2022 Mayor and City Council Meeting Schedule.

July 20, 2022 Mayor and City Council pre-approved travel for City Council Members to attend the League of California Cities Annual Conference and Expo in Long Beach, CA, in September 2022.

Packet Pg. 16
2022 Regular City Council Meeting Schedule
Month
1 st Wednesday
Meeting Date
2 nd Wednesday
Meeting Date
January January 5, 2022:

Canceled
January 19, 2022
February February 2, 2022 February 16, 2022
March March 2, 2022 March 16, 2022
April April 6, 2022 April 20, 2022:

Canceled
May May 4, 2022 May 18, 2022
June June 1, 2022 June 15, 2022
July July 6, 2022:

Canceled
July 20, 2022
August August 3, 2022 August 17, 2022
September September 7, 2022:

Recommending cancellation
September 21, 2022
October October 5, 2022 October 19, 2022
November November 2, 2022 November 16, 2022
December December 7, 2022 December 21, 2022:

Canceled
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DISCUSSION
City of San Bernardino
Request for Council Action
Date: August 3, 2022
To: Honorable Mayor and City Council Members
From: Robert D. Field, City Manager;
Nathan Freeman, Agency Director of Community, Housing,
and Economic Development
Department: Community & Economic Development (CED)
Subject: Third Amendment to Exclusive Negotiating Agreement (ENA) – Carousel Mall (Ward 1)
Recommendation
It is recommended that the Mayor and City Council of the City of San Bernardino, California:

2. Authorize the City Manager, or designee, to take any further actions and execute any further documents as necessary to effectuate the agreements.

Background
On January 27, 2021, staff conducted a workshop with the Mayor and the City Council.

This workshop was intended to allow the final two development teams, Renaissance Downtown USA/ICO Real Estate Group, and SCG America, to present their concept for the development of the Carousel Mall to the Mayor and City Council and the community at large. The Mayor and City Council received 55 written comments and 76 recorded comments from the public that were heard during the workshop. No decision was scheduled to be made at the workshop.

On March 3, 2021, staff presented the results of the Request for Proposal (RFP) and provided the Mayor and City Council with several alternatives for their consideration.

Subsequent to Mayor and City Council discussion, the Council selected Renaissance Downtown USA/ICO Real Estate Group (RDICO) as the preferred development team for the Carousel Mall property. As a component of the selection, the City Council requested that the majority of the deal points, terms and conditions be Packet Pg. 19
presented for consideration with six months, and that the City Council receive regular updates on the progress of negotiations.

At the June 2, 2021 Mayor and City Council Meeting, staff provided an update on the progress of the negotiations between the City and RDICO. The update included staff’s perspective on the progress along with the March and April updates from RDICO.

At the June 16, 2021 Mayor and City Council Meeting, staff provided an update on the progress of the negotiations between the City and RDICO. As a result of the update, the City Council created a Council Committee to work with and participate in the negotiation of the ENA.

At the August 18, 2021 Mayor and City Council Meeting, Resolution No. 2021-214 was adopted, which authorized the City Manager to execute the ENA between the City of San Bernardino and San Bernardino Development Company LLC (SBDC) also known as RDICO for the Carousel Mall property.

On Mach 13, 2022, as allowed by Section 3(b) of the original ENA, the City and SBDC entered into the First Amendment to the original ENA (Attachment 2), which extended the term of the original ENA by 90 days or until June 13, 2022.

On June 10, 2022, again, as allowed by Section 3(b) of the original ENA, the City and SBDC entered into the Second Amendment to the original ENA (Attachment 3), which extended the term of the original ENA by another 90 days or until September 8, 2022.

On July 20, 2022, the City Council considered the proposed 3rd Amendment to the ENA for the Carousel Mall and moved to continue the item to August 3, 2022, for further discussion and review.

Discussion
The parties to the ENA, the City and SBDC, desire to enter this Third Amendment (Attachment 4) to add LPC West, Inc. (also known as the Lincoln Property Company) as a party to the original ENA and as the sole and exclusive developer for all purposes under the original ENA, extend the term of the original ENA to September 12, 2023, and update the original ENA’s Schedule of Performance (the Schedule of Performance attached as Exhibit C to the Third Amendment shall supersede and replace Exhibit C of the original ENA).

The Lincoln Property Company, with regional offices in Irvine and Los Angeles, is a privately-owned real estate firm involved in real estate investment, development, property management, and leasing worldwide. Lincoln’s cumulative development efforts have produced over 130 million square feet of commercial space and over 212,000 multifamily residential units. The Lincoln Property Company is also the second largest apartment manager in the United States.

Notable Southern California projects developed by the Lincoln Property Company include the Flight at Tustin Legacy (Tustin), Runway at Playa Vista (Playa Vista), 10 Packet Pg. 20
West (Pasadena), 8777 Washington Boulevard Office Development (Culver City), and the Anaheim Regional Transportation Intermodal Center (Anaheim).

Lincoln’s participation in the Carousel mall redevelopment project is welcome given their experience in successfully developing, financing, and delivering mixed-use projects, across the country, of similar size and scope as the proposed Carousel mall redevelopment project.

Moreover, the proposed extension of the original ENA to September 12, 2023, will allow Lincoln, and staff, the necessary time to properly negotiate the ultimate Disposition and Development Agreement (DDA) for the Carousel mall property. The original ENA’s Schedule of Performance has been revised to reflect the proposed extension of the original ENA.

Lastly, included within the Third Amendment is a caveat that, as long as Lincoln is making good faith progress in the negotiation of the DDA and toward completion of the Project milestones, the City and the Lincoln, by written agreement of both parties, may extend the term and negotiation period for up to two additional periods of one hundred eighty days each.
2021-2025 Strategic Targets and Goals
Approving the Amendment to the ENA aligns with Key Target No. 4: Economic Growth and Development. Specifically, the redevelopment of the Carousel Mall will be a catalyst for future growth and development within the entire community.

Fiscal Impact
No fiscal impact.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:

2. Authorize the City Manager or designee to take any further actions and execute any further documents as necessary to effectuate the agreements.

Attachments
Attachment 1 - Original ENA
Attachment 2 - First Amendment to ENA
Attachment 3 – Second Amendment to ENA
Attachment 4 - Third Amendment to ENA
Attachment 5 - Presentation
Ward: First Ward
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Synopsis of Previous Council Actions
March 3, 2021: Mayor and City Council selected Renaissance Downtown USA/ICO Real Estate Group (RDICO) as the preferred development team for the Carousel Mall property.

August 18, 2021: Mayor and City Council Meeting, Resolution No. 2021-214 was adopted, which authorized the City Manager to execute the ENA between the City of San Bernardino and San Bernardino Development Company LLC also known as RDICO for the Carousel Mall property.

July 20, 2022: The City Council considered the proposed 3rd Amendment to the ENA for the Carousel Mall and moved to continue the item to August 3, 2022.

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Negotiation Period) attached to this Agreement as Exhibit `B" and which is incorporated into this Agreement by this reference (" Project"); and
I
The Parties agree that the exploration of a form based zoning code for the development of the Project will lead to the greatest likelihood of successful development of the Property. City and Developer will work together to develop such a code for the Property.

Developer will also be an actively involved stakeholder in the City lead development of a form based zoning code as part of the Downtown Specific Plan currently being prepared by the City; and
J The intent of both the City and the Developer in entering into this Agreement is to establish a specific, limited period oftime to negotiate regarding a future agreement between them governing the potential acquisition ofthe Property and development ofthe Project on the Property, all subject to mutually agreeable terms, conditions, covenants, restrictions and agreements to be negotiated and documented in a future disposition and development agreement (" DDA") The Parties agree and acknowledge that Developer may act as a Master Developer for the Property and, as such, the Developer is not anticipated to develop the 43 acre site itself.

NOW, THEREFORE, IN VIEW OF THE GOALS AND OBJECTIVES OF THE CITY

RELATING TO THE SALE AND DEVELOPMENT OF THE PROPERTY AND THE

PROMISES OF THE CITY AND THE DEVELOPER SET FORTH IN THIS AGREEMENT, THE CITY AND THE DEVELOPER AGREE, AS FOLLOWS:

1. Incorporation of Recitals. The Recitals offact set forth above are true and correct and are incorporated into this Agreement, in their entirety, by this reference.

2. Deposits.
a) Not later than three ( 3) business days following the Effective Date ( as defined below) ofthis Agreement, the Developer shall provide to the City a deposit in the amount of One Hundred Thousand Dollars ($ 100,000) in immediately available funds (" Initial Deposit") to ensure that the City and Developer will proceed diligently and in good faith to fulfill their respective obligations under this Agreement during the Negotiation Period (as defined in Section 3( a)), and as part ofthe consideration for the City' s agreement not to negotiate with other persons during the Negotiation Period, and to defray certain costs of the City incurred on or after the Effective Date in pursuing the contemplated negotiations with the Developer during the Negotiation Period. The City shall provide Developer with a summary of costs charged against the Initial Deposit ( and, if applicable, the Extension Deposit) in sixty ( 60) day intervals after the Effective Date. Said summaries of costs shall be for informational purposes only and the Parties agree that the Deposit shall be used in the City' s discretion in furtherance of the negotiations and development of the Project. At the termination of this Agreement, any remaining funds shall, at the Developer' s option, either be applied to the purchase price or returned to the Developer within thirty ( 30) days after request from Developer. Developer acknowledges that the Initial Deposit shall be in addition to those fees and expenses required by the City for any permit, other required entitlement or Project processing. A portion of the Initial Deposit in an amount equal to One Hundred Dollars ($ 100) shall immediately become non- refundable upon Developer' s transfer ofthe 5097426. 1 - L853. 1
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Initial Deposit to the City under this Agreement as consideration for the City' s agreement not to negotiate with other persons during the Negotiation Period.

3. Term of Agreement.
a) - The rights and duties of the City and the Developer established by this Agreement shall commence on the first date on which all of the following have occurred ( the Effective Date"): ( 1) execution of this Agreement by the authorized representative( s) of the Developer and delivery of such executed Agreement to the City, (2) payment ofthe Initial Deposit to the City by the Developer, in accordance with Section 2( a), ( 3) approval of this Agreement by the City governing body and execution of this Agreement by the authorized representative( s) of the City, and ( 4) delivery of such fully executed Agreement to the Developer, the exact date of which shall be mutually agreed to by the Parties promptly after Developer' s receipt of the fully executed Agreement from the City as evidenced in writing signed by their respective authorized representatives. The City shall deliver a fully executed counterpart original of this Agreement to the Developer, within ten ( 10) calendar days following the City governing body' s approval ofthis Agreement, and the execution of this Agreement by the authorized representative( s) of the City.

This Agreement shall continue in effect for the period of One Hundred Eighty ( 180) consecutive calendar days immediately following the Effective Date (" Negotiation Period"), subject to the limitations of Sections 3( b). During the Negotiation Period, the Parties shall work collaboratively in good faith to develop and agree upon a DDA.
b) The Parties, by written agreement of the Developer and the City Manager of the City (the " City Manager"), may extend the Negotiating Period for up to two ( 2) additional periods of ninety ( 90) days each. The term " Negotiating Period" as used herein shall include any extensions of such Negotiating Period pursuant to this Section. c) Upon each extension of the Negotiation Period, if any, the Developer shall provide to the City an additional deposit of Fifty Thousand Dollars ($ 50, 000) in immediately available funds on the first day of any extension of the Negotiation Period ( each, an " Extension Deposit"). Each Extension Deposit is intended to ensure that the Parties will proceed diligently and in good faith to fulfill the obligations under this Agreement during any extension of the Negotiation Period, as part of the consideration for the City' s agreement not to negotiate with other persons during any such extension of the Negotiation Period, and to defray certain costs of the City. Notwithstanding the immediately preceding sentence or any other part of this Agreement, in no event shall the Negotiation Period exceed Three Hundred Sixty (360) consecutive calendar days from the Effective Date.
d) This Agreement shall automatically expire and be of no further force or effect at the end of the Negotiation Period ( as the same may be extended). Notwithstanding the foregoing, if before this Agreement expires, both the City and the Developer approve and execute a DDA acceptable to both the City and the Developer, in their respective sole and absolute discretion, then this Agreement will terminate on the effective date of such DDA. e) If during the term of this Agreement the City receives a Notice of Violation NOV") or similar communication of non-compliance with the provisions of the SLA from the California Department ofHousing and Community Development (" HCD") related to compliance 5097426. 1 - L853. 1
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with the SLA, the City shall return the Initial Deposit to the Developer and the term of this Agreement shall be tolled until: the date of the NOV determines the City has complied with the terms of the SLA, at which point the Developer shall immediately return the Initial Deposit to the City. If the SLA issues are resolved to the City and Developer' s reasonable satisfaction then the term of this Agreement shall recommence and the number of days that the Agreement was tolled shall be extended to the Initial Term.

4. Obligations of Developer. During the Negotiation Period, and pursuant to the attached Milestone Schedule ( Exhibit C) in furtherance of the creation of a DDA, Developer shall proceed diligently and in good faith to develop and present to City staff and, subsequently, to the City governing body, for review, of the following:
a) A proposed complete conceptual development plan for the Project on the Property that describes and depicts: ( 1) the location and placement of proposed buildings and ( 2) the architecture and elevations ofthe proposed buildings; b) Proposed zoning change or changes to the City' s General Plan, if any, necessary to accommodate the Project on the Property, including working with the City' s planning consultants on a form based development zoning code specific to the Property and participating as a stakeholder in the development of the overall downtown specific plan development; c) A list of potential users or tenants for the Property, as developed with the Project;
d) A proposed time schedule and cost estimates for the development of the Project on the Property;
e) A proposed financing plan identifying financing sources for all private and public improvements proposed for the Project; and
f) A preliminary financial analysis demonstrating the costs and benefits to the City regarding all construction, maintenance and operations of all proposed public improvements, the costs of additional or increased levels of public services and any new public revenues anticipated to be generated by the Project.
g) During the Negotiation Period, Developer shall not make or commit to making any political contributions to the City' s legislative governing body.

5. Negotiation of DDA.
a) Duringthe Negotiation Period, each ofthe City and Developer shall proceed to work diligently and in good faith to negotiate a DDA between them. The City and Developer shall generally cooperate with each other, including, without limitation, making themselves available to meet and discuss the Project and any other matters pertaining to the development of the Property such as evaluating existing municipal infrastructure and water facilities to facilitate future development and supply such available documents and information as may be reasonably requested by the other to facilitate the conduct ofthe negotiations. 5097426. 1 -- L853. 1
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b) Both the City and Developer shall exercise commercially reasonable efforts to complete discussions relating to the terms and conditions of a DDA and such other matters, as may be mutually acceptable to both the City and Developer, in their respective sole discretion. The exact terms and conditions of a DDA, if any, shall be determined during the course of these negotiations. Nothing in this Agreement shall. be interpreted or construed to be a representation or agreement by either the City or Developer that a mutually acceptable DDA will be produced from negotiations under this Agreement. Nothing in this Agreement shall impose any obligation on either Party to agree to a definitive DDA in the future. Nothing in this Agreement shall be interpreted or construed to be a guaranty, warranty or representation that any proposed DDA that may be negotiated by City staff and Developer will be approved by the City governing body.

Developer acknowledges and agrees that the City' s consideration of any DDA is subject to the sole and absolute discretion of the City governing body and all legally required public hearings, public meetings, notices, factual findings and other determinations required by law. c) The City and Developer shall meet during the Negotiation Period to discuss appropriate development issues including approaches to appraising the Property for purposes of setting the fair market value price of the Property.

6. Restrictions Against Change in Ownership, Management and Control of Developer and Assignment of Agreement.
a) The qualifications and identity of Developer and its principals are of particular concern to the City. It is because of these qualifications and identity that the City has entered into this Agreement with Developer. During the Negotiation Period, no voluntary or involuntary successor -in -interest of Developer shall acquire any rights or powers under this Agreement, except as provided in Section 6( c).
b) Developer shall promptly notify the City in writing of any and all changes whatsoever in the identity of the business entities or individuals either comprising or in Control as defined in Section 6( d)) of Developer, as well as any and all changes in the interest or the degree of Control of Developer by any such person, of which information Developer or any of its shareholders, partners, members, directors, managers or officers are notified or may otherwise have knowledge or information. Upon the occurrence of any significant or material change, whether voluntary or involuntary, in ownership, management or Control of Developer ( other than such changes occasioned by the death or incapacity of any individual) that has not been approved by the City, which approval shall not be unreasonably withheld, prior to the time of such change, the City may terminate this Agreement, without liability to Developer or any other person and refund any remaining deposit funds provided by Developer to the pursuant to Section 2( a), above, by sending written notice of termination to the Developer, referencing this Section 6( b). c) Developer may assign its rights under this Agreement to an Affiliate ( as defined in Section 6( d)), on the condition that such Affiliate expressly assumes all of the obligations ofDeveloper under this Agreement in a writing reasonably satisfactory to the City, and further provided that Developer shall at all times, control any such Affiliate and be responsible and obligated directly to the City for performance of the Developer' s obligations under this Agreement.
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d) For the purposes ofthis Agreement, the term "Affiliate" means any person, directly or indirectly, controlling or controlled by or under common control with the Developer, whether by direct or indirect ownership of equity interests, by contract, or otherwise. For the purposes of this Agreement, " Control" means possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of an entity, whether by ownership of equity interests, by contract, or otherwise.
e) Notwithstanding the provisions of this Section 6, Developer shall have the right to bring in one or more participating developers, subject to the City' s approval, which shall not be unreasonably withheld, conditioned or delayed; provided that Developer maintains a controlling interest in the Project.

7. Obligations to Review Draft Agreements and Attend Meetings. a) During the Negotiation Period, the Parties shall establish a schedule for in person/virtual meetings as may be necessary to meet the deadlines for preparing and executing a DDA within the Negotiation Period. Each Party shall diligently review and promptly comment on draft versions of a DDA provided by the other Party and, ifthe terms and conditions of such a DDA are agreed upon between City staff and Developer, Developer shall submit the DDA fully executed by the authorized representative( s) of Developer to the City Manager for submission to the City governing body for consideration. Any future DDA shall consist of terms and conditions acceptable to both Developer and the City governing body, in their respective sole and absolute discretion. b) During the Negotiation Period, Developer shall also keep City staff advised on the progress of the Developer in performing its obligations under this Agreement, on a regular basis, but no less than monthly, or as requested by City staff, including, without limitation, having one or more of Developer' s employees or consultants who are knowledgeable regarding this Agreement, the design and planning of the Project and the progress of negotiation of a DDA, such that such person( s) can meaningfully respond to City and/ or City staff questions regarding the progress of the design and planning of the Project or the negotiation of a DDA, attend both: ( 1) periodic meetings with City staff, as reasonably scheduled and requested by City staff during the Negotiation Period, and ( 2) meetings of the City governing body, when reasonably requested to do so by City staff.
c) The Parties agree that keeping the public informed of the progress being made on the Project is important to the overall success of the Project. In furtherance ofthe above:
i) Developer shall provide City staff with biweekly reports summarizing Developer' s activities in relation to the Project which staff will share with the Council and, when appropriate disseminate to the public through the media or social media outlets, and place on the City' s webpage dedicated to the Downtown Specific Plan project. ii) City shall keep Developer reasonably and timely advised of pertinent developments affecting the Project.
iii) The Parties agree that public presentations will be made jointly or if individually then with the knowledge of the other Party. 5097426. 1 -- L853. 1
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8. Developer to Pay All Costs and Expenses. All fees or expenses of engineers, architects, financial consultants, legal, planning or other consultants or contractors, retained by Developer for any study, analysis, evaluation, report, schedule, estimate, environmental review, planning and/or design activities, drawings, specifications or other activity or matter relating to the Property or the Project or negotiation of a DDA that may be undertaken by Developer during the Negotiation Period, pursuant to or in reliance upon this Agreement or in Developer' s discretion, regarding any matter relating to a DDA, the Property or the Project, shall be the sole responsibility of and undertaken at the sole cost and expense of Developer and no such activity or matter shall be deemed to be undertaken for the benefit of, at the expense of or in reliance upon the City.

Developer shall also pay all fees, charges and costs, make all deposits and provide all bonds or other security associated with the submission to and processing by the City of any and all applications and other documents and information to be submitted to the City by Developer pursuant to this Agreement or otherwise associated with the Project. The City shall not be obligated to pay or reimburse any expenses, fees, charges or costs incurred by Developer in pursuit of any study, analysis, evaluation, report, schedule, estimate, environmental review, planning and/or design activities, drawings, specifications or other activity or matter relating to the Property or the Project or negotiation of a DDA that may be undertaken by Developer during the Negotiation Period, whether or not this Agreement is, eventually, terminated or extended or a DDA is entered into between the City and Developer, in the future.

9. City Not To Negotiate With Others. During the Negotiation Period, the City and City staff shall not negotiate with any other person regarding the sale or redevelopment of the Property. The term " negotiate," as used in this Agreement, means and refers to engaging in any discussions with a person other than Developer, regardless of how initiated, with respect to the availability of the Property or that person' s redevelopment of the Property, without Developer' s prior written consent. Developer acknowledges that City may receive and retain unsolicited offers regarding redevelopment of the Property, but the City shall not entertain any offer or negotiate with the proponent of any such offer during the Negotiation Period; provided, however, that the City shall notify such proponent that it is a party to this Agreement and, provided, further, that the City shall disclose and promptly provide to Developer copies of any such unsolicited offers.

Developer acknowledges that the City is a public agency and subject to the provisions of the California Public Records Act, Government Code Section 6254, et. seq. ( the " Act"). The City shall inform Developer of any request for information received pursuant to the Act and shall not disclose any financial or other information marked or otherwise designated as confidential without first notifying Developer and providing Developer with reasonable notice of the request. If Developer believes the information requested is confidential, Developer may pursue a court order preventing the release of the requested information, and the City shall refrain from disclosing the information pending the court's determination. In such case, Developer shall defend, indemnify and hold the City, its officers, officials, agents, and employees harmless from and against any and all liability, loss, expense ( including reasonable attorneys' fees), or claims for injury or damages, whether actual, alleged, or threatened, arising out of or in any way attributable to a request related to or a claim under the Act.

14. Acknowledgments and Reservations.
a) Except as otherwise provided in this Agreement, the City and Developer agree that, if this Agreement expires or is terminated for any reason, or a future DDA is not 5097426. 1 -- LS53. 1
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approved and executed by both the City and Developer, for any reason, neither the City nor Developer shall be under any obligation, nor have any liability to each other or any other person regarding the sale or other disposition of the Property or the redevelopment of the Project or the Property; provided, however, that in the event this Agreement terminates, the City shall return to Developer within ten ( 10) business days of such termination ( i) any and all deposits due to be refunded pursuant to Section 2 ofthis Agreement.
b) Developer acknowledges and agrees that no provision of this Agreement shall be deemed to be an offer by the City, nor an acceptance by the City of any offer or proposal from Developer for the City to convey any estate or interest in the Property to Developer or for the City to provide any financial or other assistance to Developer for redevelopment of the Project or the Property.
c) Developer acknowledges and agrees that Developer has not acquired, nor will acquire, by virtue of the terms of this Agreement, any legal or equitable interest in real or personal property from the City.
d) Certain development standards and design controls for the Project may be established between Developer and the City, but it is understood and agreed between the City and Developer that the Project and the redevelopment of the Property must conform to all City and other applicable governmental development, land use and architectural regulations and standards, except as may otherwise be provided in the DDA. Drawings, plans and specifications for the Project shall be subject to the approval of the City through the standard development application process for projects ofthis nature. Nothing in this Agreement shall be considered approval of any plans or specifications for the Project or of the Project itself by the City. e) The City reserves the right to reasonably obtain further available information and data to ascertain the ability and capacity of the Developer to acquire or lease, develop and operate the Property and/or the Project. The Developer acknowledges that it may be requested to make certain financial disclosures to the City, its staff, legal counsel or other consultants, as part of the financial due diligence investigations ofthe City relating to the potential sale of the Property and redevelopment of the Project on the Property by the Developer and that any such disclosures may become public records. The City shall maintain the confidentiality of financial information of the Developer to the extent allowed by law, as determined by the City Attorney. If, however, any individual for privacy reasons chooses not to furnish any personal financial information, then the City shall rely solely on the financial disclosures provided by Developer. If an individual fails to provide the requested personal financial information the City may accept or reject, with explanation, the financial disclosure provided by Developer. f) Any information, drawings, designs, plans, specifications, studies, reports, sketches, conceptual plans, development plans and financing plans relating to the Project collectively, the " Information") prepared for and/ or developed by Developer and furnished to the City, excluding any matters of public record or matters generally known to the public, shall be treated by the City as a trade secret and/ or proprietary and confidential and, except as may be required by law, will not be disclosed by the City to anyone other than on a need -to -know basis and to the City's consultants and attorneys who agree to maintain the confidentiality of the 5097426. 1-- LB53. 1
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Information. Developer shall be the owner of and possess all intellectual property rights to the Information.

11. Nondiscrimination. Developer shall not discriminate against nor segregate any person, or group ofpersons on account ofrace, color, creed, religion, sex, marital status, handicap, national origin or ancestry in undertaking its obligations under this Agreement.

12. Limitation on Damages and Remedies.

THE DEVELOPER AND THE CITY ACKNOWLEDGE THAT IT IS

EXTREMELY DIFFICULT AND IMPRACTICAL TO ASCERTAIN THE AMOUNT OF

DAMAGES THAT WOULD BE SUFFERED BYTHE DEVELOPER UPON THE BREACH OF THIS AGREEMENT BY THE CITY. HAVING MADE DILIGENT BUT UNSUCCESSFUL

ATTEMPTS TO ASCERTAIN THE ACTUAL DAMAGES THE DEVELOPER WOULD

SUFFER UPON THE BREACH OF THIS AGREEMENT BY THE CITY, THE DEVELOPER

AND THE CITY AGREE THAT A REASONABLE ESTIMATE OF THE DEVELOPER' S DAMAGES IN SUCH EVENT IS ONE HUNDRED THOUSAND DOLLARS ($100, 000) ( THE LIQUIDATED DAMAGES AMOUNT"). THEREFORE, UPON THE BREACH OF THIS

AGREEMENT BY THE CITY, THE CITY SHALL PAY THE LIQUIDATED DAMAGES AMOUNT TO THE DEVELOPER AND THIS AGREEMENT SHALL TERMINATE.

RECEIPT OF THE LIQUIDATED DAMAGES AMOUNT SHALL BE THE DEVELOPER' S

SOLE AND EXCLUSIVE REMEDY ARISING FROM ANY BREACH OF THIS AGREEMENT BY THE CITY.

Initials of Authorized Initials ofAuthorized
Representative of City Representative of Developer
a) THE CITY AND THE DEVELOPER EACH ACKNOWLEDGE AND

AGREE THAT THE CITY WOULD NOT HAVE ENTERED INTO THIS AGREEMENT, IF IT

WERE TO BE LIABLE TO THE DEVELOPER FOR ANY MONETARY DAMAGES,

MONETARY RECOVERY OR ANY REMEDY OTHER THAN TERMINATION OF THIS AGREEMENT AND PAYMENT OF THE LIQUIDATED DAMAGES AMOUNT.

ACCORDINGLY, THE CITY AND THE DEVELOPER AGREE THAT THE DEVELOPER' S

SOLE AND EXCLUSIVE RIGHT AND REMEDY UPON THE BREACH OF THIS

AGREEMENT BY THE CITY IS TO TERMINATE THIS AGREEMENT AND RECEIVE THE LIQUIDATED DAMAGES AMOUNT.
b) THE CITY AND THE DEVELOPER EACH FURTHER

ACKNOWLEDGE AND AGREE THAT THE DEVELOPER WOULD NOT HAVE ENTERED

INTO THIS AGREEMENT, IF IT WERE TO BE LIABLE TO THE CITY FOR ANY

MONETARY DAMAGES, MONETARY RECOVERY OR ANY REMEDY OTHER THAN

TERMINATION OF THIS AGREEMENT AND PAYMENT OF PROVABLE ACTUAL

DAMAGES UP TO AND NOT TO EXCEED THE AMOUNT OF ONE HUNDRED THOUSAND DOLLARS ($ 100, 000). ACCORDINGLY, THE CITY AND THE DEVELOPER

AGREE THAT THE CITY' S SOLE AND EXCLUSIVE RIGHT AND REMEDY UPON THE

BREACH OF THIS AGREEMENT BY THE DEVELOPER IS TO TERMINATE THIS

AGREEMENT AND RECEIVE PAYMENT OF PROVABLE ACTUAL DAMAGES UP TO 5097426. 1 - L853. 1
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AND NOT TO EXCEED THE AMOUNT ONE HUNDRED THOUSAND DOLLARS 100, 000).
c) EACH OF THE CITY AND THE DEVELOPER ACKNOWLEDGES

THAT IT IS AWARE OF THE MEANING AND LEGAL EFFECT OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR

OR THE RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER

FAVOR AT THE TIME OF EXECUTING THE RELEASE AND, THAT IF KNOWN BY HIM

OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.
d) CALIFORNIA CIVIL CODE SECTION 1542 NOTWITHSTANDING, IT

IS THE INTENTION OF THE PARTIES TO BE BOUND BY THE LIMITATION ON DAMAGES, RECOVERY AND REMEDIES SET FORTH IN THIS SECTION 12, AND

PARTY HEREBY RELEASES ANY AND ALL CLAIMS AGAINST THE OTHER PARTY

FOR MONETARY DAMAGES, MONETARY RECOVERY OR OTHER LEGAL OR

EQUITABLE RELIEF RELATED TO ANY BREACH OF THIS AGREEMENT, EXCEPT

WITH RESPECT TO THE DEVELOPER RECEIPT OF THE LIQUIDATED DAMAGES

AMOUNT, WHETHER OR NOT ANY SUCH RELEASED CLAIMS WERE KNOWN OR

UNKNOWN TO THE DEVELOPER AS OF THE EFFECTIVE DATE OF THE

TERMINATION OF THIS AGREEMENT, AND WITH RESPECT TO THE CITY RECEIPT

OF PROVABLE ACTUAL DAMAGES UP TO AND NOT TO EXCEED ONE HUNDRED THOUSAND DOLLARS ($ 100, 000), WHETHER OR NOT ANY SUCH RELEASED CLAIMS

WERE KNOWN OR UNKNOWN TO THE CITY AS OF THE EFFECTIVE DATE OF THE TERMINATION OF THIS AGREEMENT. EACH OF THE CITY AND THE DEVELOPER SPECIFICALLY WAIVES THE BENEFITS OF CALIFORNIA CIVIL CODE SECTION 1542

AND ALL OTHER STATUTES AND JUDICIAL DECISIONS ( WHETHER STATE OR

FEDERAL) OF SIMILAR EFFECT WITH REGARD TO THE LIMITATIONS ON DAMAGES

AND REMEDIES AND WAIVERS OF ANY SUCH DAMAGES AND REMEDIES CONTAINED IN THIS SECTION 12.

Initials of Authorized
Representative of City

13. Default.
0 Initials of Authorized
Representative of Developer
a) Failure or delay by either Party to perform any material term or provision ofthis Agreement shall constitute a default under this Agreement. Ifthe Party who receives notice of a default from the other Party cures, corrects or remedies the alleged default within fifteen ( 15) calendar days after receipt of written notice by the other Party specifying such default, such Party shall not be in default under this Agreement. In such cases where more than fifteen ( 15) calendar days are reasonably required to cure said default the defaulting Party shall commence the cure within fifteen ( 15) calendar days and diligently pursue the cure. Any monetary default shall be cured within the fifteen ( 15) calendar day cure period. Notwithstanding, anything contrary in this Agreement, under all circumstances, each Party shall exercise good faith and commercially 5097426. 1 - L853. 1
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reasonable efforts to cure, correct or remedy any default, time being of the essence. If there are less than fifteen ( 15) days remaining in the Negotiation Period, the cure period allowed pursuant to this Section 13( a) shall be automatically reduced to the number of days remaining in the Negotiation Period.
b) The Party claiming that a default has occurred shall give written notice of default to the Party claimed to be in default, specifying the alleged default. Delay in giving such notice shall not constitute a waiver of any default nor shall it change the time of default. However, the injured Party shall have no right to exercise any remedy for a default under this Agreement, without first delivering written notice of the default and allowing the applicable period to cure any such default as set forth in Section 13( a).
c) Any failure or delay by a Party in asserting any of its rights or remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default.
d) Subject to Section 13( a), if a default of either Party remains uncured for more than fifteen ( 15) calendar days following receipt of written notice of such default, a " breach" of this Agreement by the defaulting Party shall be deemed to have occurred. In the event of a breach of this Agreement, the sole and exclusive remedy ofthe Party who is not in default shall be to terminate this Agreement by serving written notice of termination on the Party in breach and the non -defaulting Party shall also be entitled to receive the damages as provided for in Section

12. 14. Compliance with Law. Developer acknowledges that any future DDA, if approved by the governing body of the City, will require Developer ( among other things) to carry out the development of the Project in conformity with all applicable laws, including all applicable building, planning and zoning laws, environmental laws, safety laws and federal and state labor and wage laws.

15. Press Releases. The Developer agrees to obtain the approval of the City Manager or his or her designee or successor in function of any press releases Developer may propose relating to the lease or redevelopment of the Property or negotiation of a DDA with the City, prior to publication. The rights and obligations in this provision shall not apply to leasing and marketing brochures and/ or information distributed by email or placed online on a brokerage website or real estate website such as LoopNet. com.

16. Notice. All notices required under this Agreement shall be presented in person, by nationally recognized overnight delivery service or by facsimile and confirmed by first class certified or registered United States Mail, with return receipt requested, to the address and/ or fax number for the Party set forth in this Section 16. Notice shall be deemed confirmed by United States Mail effective the third ( 3rd) business day after deposit with the United States Postal Service. The Party tendering notice shall maintain proof of delivery and provide such proof if requested by the other Party. Notice by personal service or nationally recognized overnight delivery service shall be effective upon delivery. Either Party may change its address for receipt of notices by notifying the other Party in writing. Delivery of notices to courtesy copy recipients shall not be required for valid notice to a Party:
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TO DEVELOPER: San Bernardino Development Company
LLC
ATTN: Ran Torkan
4221 Wilshire Boulevard, Suite 380
Los Angeles, CA 90010
Telephone: 323. 932. 7777
Email: jtorkan@icoreg. com
COPY TO: Renaissance Downtowns USA LLC
ATTN: Donald Monti
410 Jericho Turnpike, Suite 202
Jericho, NY 11753
Telephone: 516.457. 7545
Email:
dmonti@renaissancedowntownsusa. com
Ernesto Hidalgo
1050 W. Alameda Ave., 4501
Burbank, CA 91506
Telephone: 818.454.8762
Email:
ehidalgo@renaissancedowntownsusa. com
AlvaradoSmith, APC
633 W. 5t' Street, Suite 900
Los Angeles, CA 90071
Attn: Raul F. Salinas
Attn: Jerry J. Ruiz
Email: rsalinas@alvamdosmith. com and
jruiz@alvamdosmith. com
TO CITY Robert D. Field
City Manager
City of San Bernardino
290 North " D" Street
San Bernardino, California 92401
Office: 909. 384. 5122 1 Fax: 909.384. 5138
Field—[email protected]
COPY TO: Michael A. Huntley
Director of Community and Economic Development
City of San Bernardino
290 North " D" Street
San Bernardino, CA 92401
Office: 909- 3 84- 5357
Huntle±
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Sonia Carvalho
City Attorney
City of San Bernardino
18101 Von Karman Ave
Suite 1000
Irvine, CA 92612
Office: ( 949) 263- 2600
Fax: ( 949) 260- 0972

17. Warranty Against Payment of Consideration for Agreement. Developer warrants that it has not paid or given, and will not pay or give, any third party any money or other consideration for obtaining this Agreement. Third parties, for the purposes of this Section 17, shall not include persons to whom fees are paid for professional services, if rendered by attorneys, financial consultants, accountants, engineers, architects, brokers, marketing and public relations consultants and other consultants, when such fees and services are considered necessary by Developer.

18. Acceptance of Agreement by Developer. Developer shall acknowledge its acceptance of this Agreement by delivering to the City three ( 3) original counterpart executed copies ofthis Agreement signed by the authorized representative(s) of Developer.

19. Counterpart Originals. This Agreement may be executed by the City and Developer in multiple counterpart originals, all of which together shall constitute a single agreement.

20. No Third -Party Beneficiaries. Nothing in this Agreement is intended to benefit any person or entity other than the City or Developer.

21. Governing Law. The City and Developer acknowledge and agree that this Agreement was negotiated, entered into and is to be fully performed in the City of San Bernardino, California. -The City and Developer agree that this Agreement shall be governed by, interpreted under, and construed and enforced in accordance with the laws of the State of California, without application of such laws' conflicts of laws principles. The venue for any such action shall be San Bernardino County.

22. Waivers. No waiver of any breach of any term or condition contained in this Agreement shall be deemed a waiver of any preceding or succeeding breach of such term or condition, or of any other term or condition contained in this Agreement. No extension of the time for performance of any obligation or act, no waiver of any term or condition of this Agreement, nor any modification of this Agreement shall be enforceable against the City or the Developer, unless made in writing and executed by both the City and the Developer.

23. Construction. Headings at the beginning of each section and sub -section of this Agreement are solely for the convenience of reference of the City and Developer and are not a part of this Agreement. Whenever required by the context ofthis Agreement, the singular shall include the plural and the masculine shall include the feminine and vice versa. This Agreement shall not 5097426. 1- 1. 853. 1
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be construed as if it had been prepared by one or the other of the City or Developer, but rather as if both the City and Developer prepared this Agreement. Unless otherwise indicated, all references to sections are to this Agreement. All exhibits referred to in this Agreement are attached to this Agreement and incorporated into this Agreement by this reference. Ifthe date on which the City or Developer is required to take any action pursuant to the terms ofthis Agreement is not a business day ofthe City, the action shall be taken on the next succeeding business day of the City.

24. Attorneys' Fees. If either Party hereto files any action or brings any action or proceeding against the other arising out of this Agreement, then the prevailing Party shall be entitled to recover as an element of its costs of suit, and not as damages, its reasonable attorneys' fees as fixed by the court, in such action or proceeding or in a separate action or proceeding brought to recover such attorneys' fees. For the purposes hereof the words " reasonable attorneys' fees" mean and include, in the case of either Party, salaries and expenses of the lawyers working for or employed by such Party ( allocated on an hourly basis) to the extent they provide legal services to such Party in connection with the representation of that Party in any such matter.

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THE CITY OF SAN BERNARDINO

EXCLUSIVE NEGOTIATION AGREEMENT
Carousel Mall)
IN WITNESS WHEREOF, the City and the Developer have executed this Negotiation Agreement on the dates indicated next to each ofthe signatures of their authorized representatives, as appear below.

DEVELOPER:

SAN BERNARDINO DEVELOPMENT

COMPANY, LLC
Dated: 8/ 11/ 2021 By: T>&91a" N&M4ZIts: Authorized Representative CITY:

THE CITY AN B RDINO
By:

ATTES
By: ZL'4
City Clerk
APPROVED AS TO FORM:

BEST BEST & KRIEGER, LLP
13 City Attorney
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EXHIBIT " A"
TO

NEGOTIATION AGREEMENT
Property Le, --al Descri: tion
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Exhibit " A"
Legal Description
All that certain Real Property situated in the City of San Bernardino, County of San Bernardino, State of California, described as follows:

Parcels 4, 5, 6, 7, 8, 9, 10, 11, 13, 14, 15, 16, 18, 19, 20 of Parcel Map No. 688, in the City of San Bernardino, County of San Bernardino, State of California, as per plat recorded in Book 25, Pages 47 through 58, inclusive, of Parcel Maps in the Office of the County Recorder of said County.

Along with those certain easements created by, or arising out of, that certain instrument entitled Declaration of Restrictions, Construction, Operation, Restriction and Easement Agreement" dated as of December 24, 1970, executed by the Redevelopment Agency of the City of San Bernardino, a public body corporate and politic, John S. Griffith & Co., a corporation, and Curci- Turner Co., a partnership, Joint Venturers under the name and style of Central City Company, J. C. Penney Company, Inc., a corporation, Monwar Property Corporation, a corporation, The Harris Company, a corporation, City of San Bernardino, California, a municipal corporation, Upham Development Company, a Texas limited partnership, and Connecticut General Mortgage and Realty Investments, a Massachusetts business trust, which instrument was recorded on December 24, 1970, in Book 7580, Page 280, Official Records of San Bernardino, California, including rights of pedestrian and vehicular ingress, egress and access, as said easements are more particularly described therein.

APNs: 0134- 181- 28 0134- 231- 27
0134- 201- 25 0134- 231- 28
0134- 211- 34 0134- 231- 29
0134- 211- 36 0134- 231- 31
0134- 211- 38 0134- 291- 11
0134- 221- 43 0134- 301- 20
0134- 221- 45 0134- 301- 22
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EXHIBIT " B"
WC

NEGOTIATION AGREEMENT
Conceptual Site Plan
r
a
rs
rIre
ay
0 ,, _
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EXHIBIT " C"
TO

NEGOTIATION AGREEMENT
Schedule of Performance
Within 15 Days of Effective Date ( , 2021) of ENA
Deal Term Memo
Developer shall submit a list of deal terms for discussion which shall be utilized in the City' s preparation of the first draft of the DDA.

Within 30 days of Effective Date (_, 2021) of ENA
DDA Negotiation Sessions Developer and City shall hold the first meeting to negotiate the DDA and establish a meeting schedule for the negotiation of the DDA..

Within 90 Days of Effective Date ( , 2021) of ENA
Project Development A proposed time schedule and cost estimates for the development of the Project on Schedule and Cost the Property
Estimate
Full Project Submittal Submit a proposed complete conceptual development plan for the Project on the Property that describes and depicts: ( 1) the location and placement of proposed buildings and ( 2) the architecture and elevations of the proposed buildings.

Within 120 Days of Effective Date ( ) of ENA
Submit proposed zoning change parameters or changes to the City' s General Plan, as Zoning/ FBC it relates to the development of the Property and the Specific Plan for the redevelopment of the City' s Downtown Core Area, if any, necessary to accommodate the Project on the Property, including recommendations for a form based development zoning code specific to the Property
Tenant/ Development Provide staff with a list of potential users/ tenants for the Property and development Partners partners or merchant builders for the development of the Property.

Proforma and
Development Schedule
Fiscal Impact/ Benefit
Analysis
Submit proforma and preliminary development schedule including a proposed financing plan identifying financing sources for all private and public improvements proposed for the Project.

Developer shall submit a preliminary financial analysis demonstrating the costs and benefits to the City for all construction, maintenance and operations of all proposed public improvements, the costs of additional or increased levels of public services an any new public revenues anticipated to be generated by the Project Development Partners Submit letter( s) identifying investment partners. and Structure
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Submit letter(s) of interest (" LOI") identifying lenders and proof of ability to obtain Funding Partners and financing for what is to be developed on the Property under a revised Form Based Structure Zoning Code..

Within 150 Days of Effective Date (_) of ENA
Draft DDA I Complete negotiations and draft Disposition and Development Agreement.

Final Revisions I Finalize revisions to development proposal and all relevant materials City Council Hearing
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Within 180 Days of Effective Date (_) of ENA
Present development proposal and DDA to Council for final review and approval Packet Pg. 43

MANAGER' S CERTIFICATE

SAN BERNARDINO DEVELOPMENT COMPANY LLC)
The undersigned, DONALD MONTI. in his capacity as Manager of San Bernardino Development Company LLC, a California limited liability company (" Company"), solely in such capacity, hereby certifies to the City of San Bernardino that:

1. Attached hereto as Exhibit A is a true, correct and complete copy of the Certified Copy ofthe Articles ofOrganization ofthe Company, filed with the California Secretary ofState on April 27, 2021, Entity (File) Number 202111710716, which Articles ofOrganization have not been amended or modified and are in full force and effect as of the date hereof.

2. Attached hereto as Exhibit B is a true, correct and complete copy of Schedule I to the Operating Agreement of the Company that lists the name and address of each Member, which Schedule 1 has not been amended or modified and is in full force and effect as of the date hereof.

3. The Employer Identification Number (" EIN") of the Company is 87- 2101138.

IN WITNESS WHEREOF, the undersigned has executed this Manager' s Certificate as ofthis 101' day ofAugust, 2021.

T. c? i2ertzi

DONALD MONTI
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EXHIBIT A
Certified Copy of Articles of Organization of San Bernardino Development Company LLC California Secretary of State
Electronic Certified Copy j
I, SHIRLEY N. WEBER, Ph. D.. Secretary of State of the State of California, hereby certify that the attached transcript of 1 page is a full, true and correct copy of the original record in the custody of the California Secretary of State' s office.

IN WITNESS WHEREOF, I execute
this certificate and affix the Great
Seal of the State of California on
this day of April 27, 2021
SHIRLEY N. WEBER, Ph. D.

Secretary of State
Verification Number: KGVEUY
Entity ( File) Number: 202111710716
To verify the issuance of this certificate, use the Verification Number above with the Secretary of State Electronic Veriication Search.ava;1abie at bfzffle.sos.ca.gav
Exhibit A
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i
California Secretary of State
Electronic Filing Secretary of State
State of California
LLC Registration — Articles of Organization
Entity Name: >- San Bemardino Development Z)
Company LLC j
Entity ( File) Number. 202111710716 Y
File Date: 04/23/2021 L
Entity Type: Domestic LLC g
Jurisdiction: California E
Detailed Filing Information r $

1. Enemy Name: San Bemardino Development Comparry LLC
o

2. BusinessAddresses:
a. kutial StreetAddress of +-
Designated Office in California: 4221 W51shire Blvd, Suite 380 ( q
Los Angeles, California 90010
United States
b. Initial NW14rg Address:

U
4221 14' ilstlire Blvd. Suite MO
Los Angeles, California 90010
United States

3. Agent for Service of Process: Jien Torkan
4221 WVsture Boulevard, Suite 3tk1
Los Angeles Callfomia [ Colo
unm States

4. Management structure: More than One Manager

5. Purpose statement: The purpose ofthe limited liability company is to engage in any IawfW act
or activity forwhich a limited liability
company may be organized underthe
California Revised Uniform Limited
LiabilityCompanyAct.

Electronic signature:

The organizer affirms the information contained herein Is true and correct.

Organizer. Jlsn Torkan
Use blslffe. sos. ca. govroronlineMing& searches. buslness records. andre" Wos.

Exhibit A
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FXHTRTT R
Schedule 1 to Operating Agreement
of San Bernardino Development Company LLC
Member Address Membershi ) Interest
Donald Monti c/o Renaissance Downtowns USA LLC 50%
410 Jericho Turnpike
Suite 202
Jericho, New York 11753
Jian Torkan c/o ICO Real Estate Group, Inc. 50%
4221 Wilshire Blvd.

Suite 380
Los Angeles, California 90010
Exhibit B
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FIRST AMENDMENT TO

THE CITY OF SAN BERNARDINO

EXCLUSIVE NEGOTIATION AGREEMENT
Carousel Mall)

THIS FIRST AMENDMENT TO THE EXCLUSIVE NEGOTIATION AGREEMENT Agreement") is dated as ofMarch 13, 2022, for reference purposes only, and is entered into by and between the City of San Bernardino, a public body corporate and politic (" City") and San Bernardino Development Company, LLC, a California limited liability company (" Developer"), to provide a specified period of time to attempt to negotiate a disposition and development agreement. The City and the Developer are sometimes referred to in this Agreement individually, as a " Party" and, collectively, as the " Parties." This Agreement is entered into by the Parties with reference to the following recited facts ( each, a " Recital"):

RECITALS
A The City is the owner of that certain real property located at 295 Carousel Mall, San Bernardino, CA 92401, San Bernardino ( APN ) and more specifically described in Exhibit A ("Property"); and
B The City has an interest in developing the Property and issued a Request for Qualifications; and
C The City received qualification submittals from multiple development teams and after review and clarification has chosen to proceed with Developer; and D The City complied with the Surplus Land Act (" SLA") ( Gov' t Code Section 54220 et seq.) and received confirmation from the California Department of Housing and Community Development on September 2, 2021; and
E The City and Developer entered into the original ENA ("Original ENA") effective September 13, 2021 for a term of 180 days; and
F The Original ENA expires on March 14, 2022 and the parties desire to extend the term ofthe Original ENA administratively as provided for in Section 3( b) ofthe Original ENA for ninety ( 90) days.

NOW, THEREFORE, IN VIEW OF THE GOALS AND OBJECTIVES OF THE CITY

RELATING TO THE SALE AND DEVELOPMENT OF THE PROPERTY AND THE

PROMISES OF THE CITY AND THE DEVELOPER SET FORTH IN THIS AGREEMENT, THE CITY AND THE DEVELOPER AGREE, AS FOLLOWS:

1. Incorporation of Recitals. The Recitals of fact set forth above are true and correct and are incorporated into this Agreement, in their entirety, by this reference. 5097426. 1 - L853. 1
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2. Term. The Term of the ENA is hereby extended administratively pursuant to Section 3( b) ofthe Original Agreement for ninety (90) days and shall now expire on Monday, June 13, 2022, unless extended as provided for in the Original ENA.

3. Affirmation Regarding Absence of Defaults. Each Parry hereby represents and warrants to the other Party that, as of the Effective Date of this First Amendment, the non - representing Party is not in material uncured default ofthe Original ENA and that there have been no events that, with the passage of time, the giving of notice, or both, would constitute an event of default under the Original ENA. Each Parry understands that the foregoing representation and warranty constitutes material consideration to the other Parry for the other Party's entry into this First Amendment.

4. Effectiveness of First Amendment. The rights and duties of the City and the Developer established by this First Amendment shall commence on the first date on which all of the following have occurred: ( 1) execution of this First Amendment by the authorized representative(s) ofthe Developer and delivery of such executed First Amendment to the City, and 2) approval ofthis First Amendment by the City Manager as provided in Section 3 ofthe Original ENA and delivery of such executed First Amendment to the Developer.

5. Effect Upon Original ENA. Except as expressly amended by this First Amendment, the Original ENA remains in full force and effect, unmodified except as otherwise expressly herein provided. Wherever the term " Agreement" appears in the Original ENA, it shall be read and understood to mean the Original ENA as amended by this First Amendment. In the event of any direct conflict or inconsistency between the terms ofthe Original ENA and this First Amendment, the terms ofthis First Amendment shall be controlling to the extent of such conflict or inconsistency.

Signatures on following page]
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THE CITY OF SAN BERNARDINO

FRIST AMENDMENT TO THE EXCLUSIVE NEGOTIATION AGREEMENT
Carousel Mall)
IN WITNESS WHEREOF, the City and the Developer have executed this First Amendment to the Exclusive Negotiation Agreement on the dates indicated next to each of the signatures of their authorized representatives, as appear below.

Dated: 3/ 14/ 22

DEVELOPER -

SAN BERNARDINO DEVELOPMENT

COMPANY, LLC
LIM
Its: Authorized Representative
CITY:

THE CITY 9Z SAN BERNARDINO
By.

ATTEST
By
City Clerk
APPROVED AS TO FORM: -

BEST BEST & KRIEGER, LLP
B
CityAttorney
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Exclusive Negotiating Agreement – 3
rd Amendment for Carousel Mall
Redevelopment
Presented by: Nathan Freeman, Agency Director of Community, Housing, and Economic Development
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Exclusive Negotiating Agreement – 3rd Amendment
3 rd Amendment Terms:
• Adds LPC West (aka Lincoln Property Company) as a party to the original ENA and as the sole and exclusive developer.
• ENA term is extended to September 12, 2023.
• ENA schedule of performance is updated to reflect new ENA term.

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ABOUT LINCOLN PROPERTY COMPANY
• Lincoln is a nationwide real estate firm, with regional offices in Irvine and Los Angeles.
• As one of the largest companies of their type in the United States, Lincoln successfully develops, finances, develops, and operates mixed-use projects of similar size and scope as the proposed Carousel mall redevelopment project throughout the country.
• Lincoln’s cumulative development efforts have produced over 130 million square feet of commercial space and over 212,000 multifamily residential units. • Second largest apartment manager in the country.

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Staff recommends that the Mayor and City Council of the City of San Bernardino, California:
• Approve the Amendment to the Exclusive Negotiating Agreement between the City of San Bernardino and San Bernardino Development Company, LLC and LPC West, Inc., for the development of Carousel Mall; and
• Authorize the City Manager, or designee, to take any further actions and execute any further documents as necessary to effectuate the agreements.

CONCLUSION
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DISCUSSION
City of San Bernardino
Request for Council Action
Date: August 3, 2022
To: Honorable Mayor and City Council Members
From: Robert D. Field, City Manager;
Barbara Whitehorn, Agency Director of Administrative Services Department: Finance
Subject: Adopt a Master Equity Lease Agreement for Light Duty Vehicles
Recommendation
It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the City Manager to enter into a Master Equity Lease Agreement and related lease documents with Enterprise Fleet Management, Inc., for light-duty vehicles, authorize the Agency Director of Administrative Services to issue a purchase order in an amount not to exceed $1,200,000 to Enterprise Fleet Management, and adopt Resolution No. 2022-170 authorizing the Agency Director of Administrative Services to transfer $1,200,000 from the General Fund Operating Budget to the Fleet Fund.

Background
The Department of Public Works Facilities and Fleet Maintenance Division is responsible for repairing and maintaining over 350 City vehicles in addition to several hundred pieces of equipment. The Adopted Vehicle Maintenance Budget has averaged about $3.2 million over the last three years, excluding the cost of purchasing new vehicles. The FY 2022/23 and 2023/24 budgets are $4,384,049 and $5,698,695, respectively.

The City has not established a systematic vehicle replacement program. Instead, vehicles are replaced when they reach the end of their lifecycle rather than a beneficial Packet Pg. 68
financial point in the vehicle's lifecycle cost. As a result, the City has retained older vehicles with more significant depreciation, increased maintenance and fuel costs, less dependability, and that lack updated safety features.

City staff has researched vehicle replacement and maintenance programs and determined that it is financially feasible to lease vehicles rather than purchase them.

Leasing vehicles will reduce operational costs while establishing a systematic, structured approach to vehicle replacement and maintenance.

Discussion
A comprehensive vehicle replacement plan is fundamental to efficient fleet management. The cost to operate a vehicle increases over time while the value decreases simultaneously. Consequently, the City should replace vehicles at the optimal time in the economic life rather than the vehicle's actual operational life.

Replacing vehicles at the optimal time will allow the City to get the most use during the period of the lowest operating cost before selling the vehicle while it retains more significant monetary value. An efficient replacement plan capitalizes on the ability to purchase new vehicles at reduced government pricing before selling them at an opportune time to benefit from the higher-priced public market. In addition, proceeds generated from the sale of replaced vehicles would augment funding for the City's vehicle replacement and maintenance program.

The City’s current vehicle replacement practices are not economical. Organizations typically use years in service, mileage, and maintenance cost to determine when to replace vehicles. Some common standards used by organizations like the American Public Works Association (APWA) are listed below:

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 5-7 years for non-emergency vehicles
 75,000 - 100,000 Miles
 Maintenance cost exceeds 50% of the vehicle purchase value The following statistics represent the City's fleet compared to commonly accepted replacement and safety standards.
 38% of current vehicles are more than ten years old
 43% of the existing vehicles are more than seven years old  38% of current vehicles have over 75,000 miles on the odometer  10 vehicles predate Airbag standards (1998)
 84 vehicles predate Anti-lock brake standards (2007)
 141 vehicles predate Electronic Stability Control standards (2012) Retaining vehicles beyond the optimal time of replacement may result in some or all the following conditions:
 Increase in total operating cost and fleet budget
 Extended vehicle downtime as the complexity of repairs increases and availability of parts decrease
 Decrease in fleet dependability
 Increase in costs associated with lack of productivity  Vehicle underutilization
 Decrease in salvage value as assets age
 Compromised operator safety as vehicles age and lack updated safety features  Some vehicles may age out of compliance with regulatory requirements  Diminished public perception of City Government based on vehicle appearance Vehicle Leasing
To reduce cost and increase fleet efficiency, staff has researched alternative vehicle replacement and maintenance solutions and determined that leasing vehicles rather than purchasing them outright is the most cost-effective option for the City. Many cities across the nation have transitioned to vehicle lease programs and contract services for vehicle maintenance. Staff researched the following local cities, and all identified the benefits and cost-saving of a vehicle leasing and maintenance program:

City Saving
Redlands Projected Savings of $1,904,758 over 10 years.

Westminster The leasing program has saved the city approximately $133,000 a year.

San Marcos Projected $1,100,000 savings over 10 years. The city decreased the cost to purchase and maintain vehicles by 27%.

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La Quinta Realized a 70% reduction in maintenance costs upon implementation. The city is projected to save 12% of fleet operating cost over 10 years. Enterprise has exceeded estimated resale value of vehicles by an average of $740 per vehicle.

Fontana Entered into leasing agreement 2021.

Rialto Entered into leasing agreement 2021.

The cities mentioned above have entered into Master Equity Lease Agreements with Enterprise Fleet Management, Inc., utilizing the existing Sourcewell contract resulting from RFP #060618. Sourcewell is a government agency that has provided cooperative purchasing programs throughout North America for more than 40 years. Sourcewell streamlines the procurement process by developing RFPs for competitive solicitations that meet or exceed local requirements. San Bernardino Municipal Code section 3.04.010 states the City may make, “Purchases from, or sales to a government or governmental agency, or through any advantageous governmental contract approved by the Council, …”
City staff has identified the following benefits to leasing vehicles:
 A lease agreement will provide more flexibility as electric vehicle technology improves should the City decide to transition towards an electric-powered fleet.  Open-end lease structure allows the City to replace more vehicles upfront with less capital.
 The City pays sales tax based on the cost of the lease payments rather than the total cost of the vehicle.
 The City has all rights of ownership and can modify and install aftermarket products on vehicles.
 Leasing would provide the opportunity to minimize the amount of large capital outlay necessary for purchasing vehicles.
 No mileage restrictions, no abnormal wear and tear, and no early termination penalties would allow the City's fleet to increase or decrease each year to reduce underutilization and meet City needs.
 A local account team will be assigned to monitor the City's fleet and implement a consistent, proactive fleet replacement plan.
 Newer vehicles will improve safety and reduce costs related to maintenance, fuel, and lack of production from vehicles out of service.
 Replacing and reselling vehicles at the optimal time will recover more equity from city vehicles which may be used to fund the leasing program.

Enterprise Fleet Management is the largest fleet management provider in the United States and an expert in fleet management, maintenance, acquisition, and sales. Entering into a Master Equity Lease Agreement will allow the City to capitalize on Enterprise Fleet Packet Pg. 71
Management's expertise, resources, and extensive resale network, to operate the most efficient fleet.

City staff has communicated with Enterprise representatives and established the following parameters for the lease program:

1. The City will continue to purchase specialty vehicles such as construction vehicles, motorcycles, tactical vehicles, and any required to be purchased through grants or contractual agreements.

2. The City will replace most light-duty vehicles through the leasing program.

3. Enterprise will provide a local Account Team to assist the City that will:
a. Compile analysis to identify the best alternative fuel vehicles b. Make recommendations on the most cost-effective vehicles in each class c. Review the best time to order or sell vehicles
d. Monitor the fleet to ensure efficiencies with maintenance and fuel e. Review mileage patterns and fuel miles per gallon
f. Establish a proactive replacement plan

4. The City will establish a viable vehicle replacement program with a four to five-year replacement cycle, depending on the economic feasibility.

5. City staff will identify the required specifications and types of replacement vehicles and establish a list of the vehicles marked for replacement.

6. The replacement list will meet the goal of lowering the fleet's average age and reducing maintenance and fuel costs.

7. The City will identify any after-market equipment required for vehicles.

8. The City will select which dealerships Enterprise will use to order and deliver vehicles.

Optional Vehicle Maintenance
Enterprise Fleet Management's complete maintenance plan will provide maintenance for all non-emergency vehicles. The cost for a full maintenance plan is approximately $564 a year per vehicle. The price may vary slightly depending on the type of vehicle and projected miles the vehicle will travel annually. The full maintenance plan covers all major or minor vehicle repairs through a list of approved vendors.

Enterprise does not provide full maintenance for emergency vehicles (patrol vehicles) or current City-owned vehicles. Instead, Enterprise offers a maintenance management program. A maintenance management plan allows the city to use approved vendors to provide services for vehicles. An Enterprise Analyst would be assigned to the City's account to analyze and manage repairs. The analyst will be authorized to approve repairs up to an established amount before seeking approval from a City representative. The City is then billed for all repairs. The maintenance management plan costs $72 annually per vehicle.

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Staff does not recommend the vehicle maintenance program. After contacting other cities that are using Enterprise Leasing, some using the maintenance and others that are not, staff found that the cities using the maintenance did not consider it a significant value add to the program. Currently the City’s major maintenance issues are driven by the age of the City’s fleet. As vehicles are replaced with newer models, most major maintenance will be covered under warranty, and optimal replacement scheduling will ensure that vehicles are replaced before they reach the point at which maintenance becomes a significant factor in operating costs. Regular maintenance, tune-ups, and oil and filter changes can be scheduled and completed in-house without City staff taking time away from regular duties to drive a vehicle to an approved vendor shop, wait for repairs, and then return to work. The leasing program will enable existing fleet staff to more efficiently manage heavy equipment repair and regular maintenance, as the City replaces older vehicles with newer models that require less major maintenance work. This will also keep staff that require vehicles to do their jobs working, rather than waiting for repairs.

Cost Analysis of a Master Equity Lease Agreement for Most Light-Duty Vehicles A 10-year analysis of the City’s fleet and current replacement practices by Enterprise suggests that adopting a leasing model may result in a saving of over $6 million; however, staff’s recommendation is not based on the potential savings identified by the recommended vendor. Staff evaluated the cost of leasing as well as the benefit of consistent replacement of vehicles, ensuring that City vehicles are equipped with the latest safety features, and the opportunity for the City to invest in alternative fuel vehicles whenever possible. The fleet replacement schedule for this plan and estimated lease cost are shown in the table below. By the fifth year of the leasing agreement, most of the City’s light duty vehicles will be leased for a projected recurring annual fee of approximately $2,608,519. The annual lease cost does not include maintenance and is an estimate that may vary depending on the type of replacement vehicles selected.

Fiscal
Year
Estimated
Number of
Vehicles to be
Replaced
Replacement Criteria Approximate Annual
Lease Cost
2023 151 10 years old and older, or
odometer over 100,000 miles
$1,028,317
2024 28 8 years old and older, or
odometer over 80,000 miles
$1,265,180
2025 53 5 years old and older, or
odometer over 50,000 miles
$1,694,483
2026 61 3 years old and older, or
odometer over 30,000 miles
$2,214,965
2027 49 Vehicle replacement will be
managed by Enterprise
$2,608,519
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Enterprise, in their assessment of the City’s fleet practices and potential savings, looked at the City’s current replacement schedules and annual investments. While this comparison results in a potential savings, in order to evaluate the true cost/benefit of leasing, finance staff did a side-by-side comparison of the five-year lease cost depicted above, compared to the cost should the City invest in directly purchasing and replacing vehicles on the same schedule that Enterprise recommended. This analysis is attached in Appendix A.

One of the challenges the City faces when directly purchasing and reselling vehicles is a lack of the economy of scale that Enterprise enjoys as the largest fleet management provider in the country. The City pays more for vehicles on the front end, and resale at auction generally brings in less than what Enterprise is able to recoup per vehicle at auction. The resale difference reduces the amount of money flowing back into the program to fund purchases each year, increasing the cost to the General Fund.

Additionally, as previously mentioned in the benefits to leasing, if the City directly purchases vehicles, the amount of sales tax the City pays is based on the full cost of the vehicle, increasing the total cost of each vehicle, as opposed to paying tax on the value of the lease payment.

The chart below provides a summary of the results detailed in Appendix A. The side-byside analysis includes all fleet division costs, including personnel, general maintenance, heavy equipment maintenance, fuel, and other costs to provide an all-in cost comparison.

Please note that the total cost with a lease program is higher than the previous table that includes only the approximate cost of the annual lease without other costs.

The result of the analysis shows that over five years, the City would spend nearly $25 million to implement the same fleet replacement schedule, versus approximately $15 million using the Enterprise leasing model.

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Timing
The timing for entering into the leasing program is critical. As the City has been attempting to order vehicles for departments, staff has found that the window for ordering new vehicles is becoming tighter and tighter. In two recent cases, the ordering window for 2023 vehicles opened and closed within a 24-hour period, and the next opportunity to order is not anticipated to be available for six to nine months. City staff is less able to track the opening of ordering windows for vehicles, and while Enterprise has the advantage of economies of scale and the ability to order vehicles from multiple dealerships, they are nevertheless faced with similar challenges in ordering vehicles given the overall lack of inventory. Staff recommends that the City enter into the agreement with Enterprise as soon as possible to ensure that Enterprise can obtain vehicles for the City within a reasonable timeframe.
2021-2025 Strategic Targets and Goals
Authorization of this agreement aligns with Key Target No. 1.f. Improved Operational and Financial Capacity: Create an asset management plan.

Fiscal Impact
There is no financial impact to the General Fund. $1,200,000 will be transferred from the General Fund to the Fleet Fund; however, the Fleet Fund is an internal service fund with costs allocated to General Fund departments. Existing budgets in departments for fleet-related costs for FY 2022/23 will be used to fund the lease, and equity from the sale of City vehicles will be rolled back into the program.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the City Manager to enter into a Master Equity Lease Agreement and related lease documents with Enterprise Fleet Management, Inc., for light-duty vehicles, authorize the Agency Director of Administrative Services to issue a purchase order in an amount not to exceed $1,200,000 to Enterprise Fleet Management, and adopt Resolution No. 2022-170 authorizing the Agency Director of Administrative Services to transfer $1,200,000 from the General Fund Operating Budget to the Fleet Fund.

Attachments
Attachment 1 Appendix A Side-by-Side Cost Analysis
Attachment 2 Master Equity Lease Agreement
Attachment 3 Sourcewell Equity Lease Agreement
Attachment 4 PowerPoint Presentation Equity Leasing
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Attachment 5 Resolution 2022-170
Ward:

All Wards
Synopsis of Previous Council Actions:

N/A
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APPENDIX A
Fiscal Year Vehicle Cost Tax
Sub-Total
Vehicle
Purchase
Equity
Estimate, City
Auction
Fleet
Division
Personnel
Fleet Division
Vehicle Repair
Fleet Division
Heavy Equip.

Sub-Total
Fleet Division Fuel
Purchase
Cost TOTAL
2022/23 4,447,730 389,176 4,836,906 (419,879) 294,000 766,800 50,000 1,110,800 1,629,646 7,157,474 2023/24 1,086,480 95,067 1,181,547 (168,455) 308,700 783,000 51,500 1,143,200 1,599,527 3,755,819 2024/25 2,071,652 181,270 2,252,922 (451,950) 324,135 783,000 53,045 1,160,180 1,542,516 4,503,667 2025/26 2,342,060 204,930 2,546,990 (502,701) 340,342 783,000 54,636 1,177,978 1,476,901 4,699,168 2026/27 2,364,040 206,854 2,570,894 (430,718) 357,359 783,000 56,275 1,196,634 1,424,192 4,761,002 Cost Over 5 Years 24,877,131
Fiscal Year Lease Cost
Equity,
Leased
Equity,
Purchased
Sub-Total
Equity
Fleet
Division
Personnel
Fleet Division
Vehicle Repair
Fleet Division
Heavy Equip.

Sub-Total
Fleet Division Fuel
Lease Cost
TOTAL
2022/23 1,028,317 (233,739) (559,838) (793,577) 294,000 427,800 50,000 771,800 1,629,646 2,636,186 2023/24 1,265,180 (233,739) (224,606) (458,345) 308,700 394,200 51,500 754,400 1,599,527 3,160,762 2024/25 1,694,483 (656,493) (602,600) (1,259,093) 324,135 330,600 53,045 707,780 1,542,516 2,685,686 2025/26 2,214,965 (256,226) (670,268) (926,494) 340,342 257,400 54,636 652,378 1,476,901 3,417,750 2026/27 2,608,519 (984,075) (574,290) (1,558,365) 357,359 198,600 56,275 612,234 1,424,192 3,086,580 Cost Over 5 Years 14,986,964
MODEL: All Vehicles Purchased, Replacement Schedule for Maximum Utility and Equity Realization MODEL: All Vehicles Leased, Replacement Schedule for Maximum Utility and Equity Realization Assumptions:
75% Likely percentage of Enterprise equity estimate recouped through auction 5% Percentage increase in Fleet salary and benefits year-over-year 331 Total regular vehicles, 2021/22
340 Total regular vehicles, 2022/23; to accommodate new positions hired in 2021/22 95 Patrol vehicles beginning 2022/23
$150 per vehicle per month for maintenance, OWNED
$50 per vehicle per month for vehicles, LEASED
$280,000 base year (2021/22) salary and benefits for Fleet Division $50,000 base year (2022/23) assumption for cost of heavy equipment repair 3% Percentage increase annually in cost of heavy equipment repair Fuel cost includes a 40% increase in 2022/23 over FY 2021/22 budgeted amount Fuel savings estimate based on Enterprise model with improved fuel efficiency of fleet Packet Pg. 77
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AMENDMENT TO MASTER EQUITY LEASE AGREEMENT
THIS AMENDMENT (“Amendment”) dated this ____ day of ___________, 2022 is attached to, and made a part of, the MASTER EQUITY LEASE AGREEMENT entered into on the ____ day of __________, 2022 (“Agreement”) by and between Enterprise FM Trust, a Delaware statutory trust (“Lessor”) and City of San Bernardino ("Lessee"). This Amendment is made for good and valuable consideration, the receipt of which is hereby acknowledged by the parties.

Section 17 of the Master Equity Lease Agreement is amended to read as follows:

Subject to the provisions of Section 15, this Agreement will be binding upon Lessee and its heirs, executors, personal representatives, successors and assigns, and will inure to the benefit of Lessor, Servicer, any other agent of Lessor and their respective successors and assigns. This Agreement will be governed by and construed in accordance with the substantive laws of the State of California (determined without reference to conflict of law principles).

All references in the Agreement and in the various Schedules and addenda to the Agreement and any other references of similar import shall henceforth mean the Agreement as amended by this Amendment. Except to the extent specifically amended by this Amendment, all of the terms, provisions, conditions, covenants, representations and warranties contained in the Agreement shall be and remain in full force and effect and the same are hereby ratified and confirmed.

IN WITNESS WHEREOF, Lessor and Lessee have executed this Amendment to Master Equity Lease Agreement as of the day and year first above written.

City of San Bernardino (Lessee) Enterprise FM Trust (Lessor) By: Enterprise Fleet Management, Inc., its attorney in fact By By
Title: Title:

Date Signed:__________________, _______ Date Signed:_______________________, _______ Packet Pg. 83
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INDEMNITY AGREEMENT
This Agreement is entered into as of the ___ day of ________, 2022, by and between Enterprise Fleet Management, Inc., (EFM), a Missouri corporation, and City of San Bernardino.

WITNESSETH:

INDEMNITY: Enterprise Fleet Management, Inc. ("EFM") agrees to defend and indemnify City of San Bernardino from and against any and all losses, damages, liabilities, suits, claims, demands, costs and expenses (including, without limitation, reasonable attorneys' fees and expenses) which City of San Bernardino may incur by reason of EFM's breach or violation of, or failure to observe or perform, any of its obligations as Servicer (EFM in such capacity, "Servicer") for Enterprise FM Trust in connection with the Master Equity Lease Agreement between City of San Bernardino and Enterprise FM Trust dated as of the date hereof, or as a result of any loss, damage, theft or destruction of any Vehicle or related to or arising out of or in connection with the use, operation or condition of any Vehicle, in each case, while the Vehicle was in possession of the Servicer.

Capitalized terms used herein and not defined herein shall have the meanings given in the Lease.

IN WITNESS WHEREOF, EFM and City of San Bernardino have executed this Indemnity Agreement as of the day and year first above written.

Company: City of San Bernardino EFM: ENTERPRISE FLEET MANAGEMENT INC. _________________________________ _________________________________ By: ____________ By: ____________ Title: ____________ Title: ____________
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Enterprise Leasing Fleet
Management
Barbara Whitehorn
Agency Director of Administrative Services
August 3, 2022
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• Fleet Management
• Current Model
• Best Practice
• Leasing Model
• Municipal Leasing Defined
• Benefits to the City
• Cost Analysis
• Discussion
2 Presentation Overview
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Fleet Management – Current Model
3 • Current Model
• Aging Fleet, vehicles replaced well-past useful
life
• High maintenance costs
• Low value when sold
• Management systems lack evaluation of
potential efficiencies and optimization
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Fleet Management – Best Practice
4 Best Practice
• Track Fleet:
• Age (Potential Resale
Value)
• Cost of Maintenance
• Fuel Efficiency
• Replace when:
• Costs are increasing and
value is decreasing
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Leasing Model – Municipal Leasing
Municipal Leasing DOES NOT:
• Work like an auto-dealer lease
• No max. mileage
• No early termination penalties
• No wear-and-tear fees
• It does not lock the City into a long-term contract
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Leasing Model – Municipal Leasing
Municipal Leasing DOES:
• Work like a financing plan
• Provide flexibility
• i.e., enable the City to move toward electrification
• Allow more frequent replacement of vehicles
• Provide Economies of Scale
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Benefits to the City
7 1) Replace more vehicles with
less capital.
2) City maintains rights of
ownership, may modify
vehicles.
3) Newer vehicles improve
safety.
4) Flexibility allows easier
transition to alternative power
vehicles and fleet
ltifiti
5) Optimal timing for
replacement provides:
a. Highest equity at time of
sale.
b. Staff maintenance efficiency.
6) Staff dedicated to keeping
old cars running can be
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Cost Analysis
8 • Side-by-Side “apple to apples” comparison
• Replacing same number of vehicles annually over five years • Leasing versus purchasing outright
• Both models assume fleet becomes more fuel efficient and less costly to maintain
• Key Differences:
• Leasing lowers initial capital outlay on vehicles
• Equity recouped through Enterprise auction assumed to be 25% higher due to economies of scale
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Cost Analysis
9 Purchase
Estimated cost over
5-years:
$25M
Lease
Estimated cost over
5-years:
$15M
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Timing and Scale
10 • Order Windows
• 2023 Model inventory is low
• Windows for ordering are opening and closing within
days
• Scale
• City can only order from limited dealers (based on
contracts)
• Enterprise has nationwide network of dealerships
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Conclusion
ü Flexibility- the City can pivot to alternative fuel
vehicles more easily as technology improves.
ü Safety- providing newer model vehicles with the
latest safety features.
ü Sustainability- financial and environmental.
ü less expensive, financially flexible model.
ümore efficient vehicles.
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Resolution No. 2022-170
Resolution 2022-170
August 3, 2022

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RESOLUTION NO. 2022-170

RESOLUTION OF THE MAYOR AND CITY COUNCIL OF

THE CITY OF SAN BERNARDINO, CALIFORNIA,

AUTHORIZING THE AGENCY DIRECTOR OF
ADMINISTRATIVE SERVICES TO TRANSFER $1,200,000
IN THE FISCAL YEAR 2022/23 OPERATING BUDGET
FROM THE GENERAL FUND TO THE FLEET FUND.

WHEREAS, the FY 2022/23 General Fund operating budget allocated $2,037,806 for the replacement of motor vehicles; and
WHEREAS, the City of San Bernardino is focused on establishing a streamlined vehicle replacement program to ensure the efficient and effective use of public funds; and WHEREAS, staff has determined that entering into a master equity lease agreement allows for a modern vehicle replacement program to achieve financial and environmental goals; and WHEREAS, in order to centralize the lease in one fund, $1,200,000 in operating budget funds will need to be transferred.

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.

SECTION 2. Mayor and City Council hereby authorize the City Manager to amend the FY 2022/23 General Fund Operating Budget by transferring $1,200,000 from the General Fund to the Fleet Fund.

SECTION 3. 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 the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

SECTION 4. 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 5. Effective Date. This Resolution shall become effective immediately.

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Resolution No. 2022-170
Resolution 2022-170
August 3, 2022

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APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 3rd day of August, 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. 2022-170
Resolution 2022-170
August 3, 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. 2021-170, adopted at a regular meeting held on the 3rd day of August 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 ____________ 2021.

Genoveva Rocha, CMC, City Clerk
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Public Hearing
City of San Bernardino
Request for Council Action
Date: August 3, 2022
To: Honorable Mayor and City Council Members
From: Robert D. Field, City Manager;
Barbara Whitehorn, Agency Director of Administrative Services Subject: Public Hearing on Annexation No. 5 to Community Facilities District 2018-1 (Safety Services), (TR 20258), Adoption of Resolutions for Annexing into the Community Facilities District (Ward 6)
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California:

1. Hold a Public Hearing;

2. Adopt Resolution No. 2022-161 of the Mayor and City Council of the City of San Bernardino, California acting as the legislative body of the City of San Bernardino Community Facilities District No. 2018-1 (Safety Services), annexing territory to Community Facilities district No. 2018-1 (Safety Services) and calling elections therein;

3. Hold a special landowner election and canvass the election;

4. Adopt Resolution No. 2022-162 of the Mayor and City Council of the City of San Bernardino, California, acting as the legislative body of the City of San Bernardino Community Facilities District No. 2018-1 (Safety Services) certifying the results of the August 3, 2022 annexation and special tax election.

Background
On June 15, 2022, the Mayor and City Council adopted Resolution No. 2022-124, a Resolution of Intention to annex territory into Community Facilities District No. 2018-1 (Safety Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”. A public hearing was set for August 3, 2022, on the proposed annexation of the said territory into the community facilities district. As required by the Resolution of Intention, a boundary map was recorded on June 21, 2022, at 10:48 a.m. in Book 90 Page 37, Document No. 2022- Packet Pg. 131
0219974 of Maps of Assessment and Community Facilities Districts with the San Bernardino County Recorder.

The Resolution of Intention was adopted by the Mayor and City Council in response to a petition filed by the property owner of approximately 1.05 gross acres of a zoned residential lot within the City, to include 6 detached single-family residences upon buildout, requesting that the City assist them in annexing their properties into CFD No. 2018-1 under the Mello-Roos Act. The property is located at the east side of N. Meridian Avenue and west side of N. Marvin Drive, between W. 5th and 6th Street, as shown in Attachment #1. The State legislature enacted the Mello-Roos Act in 1982 to assist public agencies in financing certain public improvements by either issuing tax exempt securities that are repaid by annual levy of special taxes, or to provide for the financing of on-going public services. The landowner requested the City annex into CFD No. 2018-1 to levy a special tax to cover the costs associated with financing public safety costs. The public services to be financed within 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

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 operating reserves.

The proposed total maximum tax rate is $385 per residential unit for FY 2022/23. The maximum annual tax rate is proposed to escalate each year after July 1, 2024 by four percent (4.0%). The property owners have agreed to initiate and conduct the CFD annexation proceedings pursuant to the Mello-Roos Act of 1982. The property owners have submitted a “Consent and Waiver” form on file in the City Clerk’s Office to initiate and conduct proceedings pursuant to the Mello-Roos Act in 1982, for the annexation into the CFD and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election.

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 three statutorily required Resolutions 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), adopted June 15, 2022.  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.

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Discussion
The Resolution of Intention called for a public hearing to be held on August 3, 2022, on the issue of the annexation of territory into CFD No. 2018-1. Under the Mello-Roos Act, the Mayor and City Council must hold the public hearing and consider any protests against the formation of the CFD. If the owners of one half or more of the land within the proposed boundaries of the CFD file written protests against the establishment of the CFD, the Council may not create the CFD. If a majority protest is not filed, the Mayor and City Council may adopt the resolution establishing the CFD.

Adoption of Resolution No. 2018-264 on September 19, 2018, established CFD 2018-1, pursuant to the requirements of Government Code Section 53325.1. After a CFD is formed, the Mello-Roos Act requires that for any annexations into the CFD an election be held on the question of whether the proposed special taxes should be levied. The election requires a two-thirds vote in favor of levying the special tax. The landowners filed waivers with respect to the conduct of the election pursuant to Government Code Sections 53326(a) and 53327(b), meaning that the time limits and procedural requirements for conducting an election under the Mello-Roos Act do not have to be followed. Accordingly, City staff has already mailed the election ballots to the landowners and required the ballots to be returned by the close of the public hearing. If the Mayor and City Council adopt Resolution No. 2022-161, it may immediately proceed to the opening of the ballots and adopt Resolution No. 2022-162 declaring the results of the election. 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
There is no fiscal impact to the General Fund at this time. 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 $2,310 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.

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

1. Hold a Public Hearing;

2. Adopt Resolution No. 2022-161 of the Mayor and City Council of the City of San Bernardino, California, acting as the legislative body of the City of San Bernardino Community Facilities District No. 2018-1 (Safety Services), Packet Pg. 133
annexing territory to Community Facilities district No. 2018-1 (Safety Services) and calling elections therein;

3. Hold a special landowner election and canvass the election;

4. Adopt Resolution No. 2022-162 Resolution of the Mayor and City Council of the City of San Bernardino, California, acting as the legislative body of the City of San Bernardino Community Facilities District No. 2018-1 (Safety Services) certifying the results of the August 3, 2022, annexation and special tax election.

Attachments
Attachment 1 - Project Map
Attachment 2 - Resolution No. 2022-161 (Resolution Calling Election, Authorizing Levy); Attachment 3 - Exhibit A - Ballot
Attachment 4 - Resolution No. 2022-162 (Resolution Declaring Election Results); Attachment 5 - Exhibit A – Ballot;
Attachment 6 - Exhibit B – Certificate of Election Results Attachment 7 - Registrar of Voters Certificate
Attachment 8 – PowerPoint Presentation
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 “Mello-Roos 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.

June 15, 2022 Mayor and City Council adopted Resolution No. 2022-124, a Resolution of Intention to annex territory into Community Facilities District No. 2018-1 (Safety Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the Packet Pg. 134
provisions of the “Mello-Roos Community Facilities Act of 1982”.

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CFD NO. 2018-1 (SAFETY SERVICES)
ANNEXATION NO. 5

PROJECT MAP
Packet Pg. 136
Resolution No. 2022-161
RESOLUTION NO. 2022-161

RESOLUTION OF THE MAYOR AND CITY COUNCIL OF

THE CITY OF SAN BERNARDINO, CALIFORNIA, ACTING

AS THE LEGISLATIVE BODY OF THE CITY OF SAN
BERNARDINO COMMUNITY FACILITIES DISTRICT NO.
2018-1 (SAFETY SERVICES), ANNEXING TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2018-1
(SAFETY SERVICES), AND CALLING ELECTIONS

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, 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 Attachment “D” attached to the Resolution No. 2018-239 (the “Original Rate and Method”), and (ii) the establishment of an appropriations limit for Community Facilities District No. 2018-1; and WHEREAS, pursuant to a petition signed by RGC Family Trust (the “Owner”), on June 15, 2022, the Mayor and City Council adopted Resolution No. 2022-124 (the “Resolution of Intention”), stating its intention to annex the territory described in Attachment “A” to the Resolution of Intention (the “Annexation Territory”) to the District; and WHEREAS, a notice of a public hearing to be held on August 3, 2022 was published and mailed to all landowners of the land proposed to be included within the Annexation Territory as required by law relative to the intention of the Mayor and City Council to annex the Annexation Territory to the District and to levy a special tax in accordance with the Rate and Method (as defined below); and
WHEREAS, on August 3, 2022, this Mayor and City Council held a noticed public hearing as required by law relative to the proposed annexation of the Annexation Territory, the levy of special taxes therein in accordance with the attached as Attachment “C” to the Resolution of Intention (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 WHEREAS, at the August 3, 2022 public hearing all persons desiring to be heard on all matters pertaining to the proposed annexation of the Annexation Territory to the District and the levy of the special taxes within the Annexation Territory in accordance with the Rate and Method were heard and a full and fair hearing was held; and
Packet Pg. 137
Resolution No. 2022-161
WHEREAS, at the public hearing, evidence was presented to the Mayor and City Council on the matters before it, and the proposed annexation of the Annexation Territory to the District and the levy of special taxes within the Annexation Territory in accordance with the Rate and Method was not precluded by a majority protest of the type described in Section 53339.6 of the Act, and this Mayor and City Council at the conclusion of the hearing is fully advised as to all matters relating to the annexation of the Annexation Territory and the levy of the special taxes in accordance with the Rate and Method; and
WHEREAS, the Mayor and City Council has determined that there have been fewer than twelve registered voters residing in the Annexation Territory for the period of 90 days prior to August 3, 2022 and that the qualified electors in Annexation Territory are the landowners therein; and
WHEREAS, on the basis of all of the foregoing, the Mayor and City Council has determined at this time to proceed with the annexation of the Annexation Territory to the District and to call an election within the Annexation Territory to authorize the levy of special taxes pursuant to the Rate and Method;

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

SECTION 1. Each of the above recitals is true and correct.

SECTION 2. The Mayor and City Council hereby finds and determines that all prior proceedings taken with respect to the establishment of the District and the proposed annexation of the Annexation Territory to the District were valid and in conformity with the requirements of law, including the Act.

SECTION 3. 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 map showing the Annexation Territory proposed to be annexed to the District and be made subject to taxation are as shown 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. 90 Page No. 37, on June 21, 2022 as Instrument No. 2022-0219974.

SECTION 4. The Mayor and City Council hereby adopts the Rate and Method attached as Attachment “C” to the Resolution of Intention as the applicable rate and method for the Annexation Territory. Except where funds are otherwise available, it is the intention of the Mayor and City Council, subject to the approval of the eligible voters within the Annexation Territory, to levy the proposed special taxes at the rates within the Annexation Territory set forth in the Rate Packet Pg. 138
Resolution No. 2022-161
and Method on all non-exempt property within the Annexation Territory sufficient to pay for (i) the Services (as defined in the Rate and Method), (ii) fund an operating reserve for the costs of Services as determined by the City, and (v) Administrative Expenses (as defined in the Rate and Method). The District expects to incur, and in certain cases has already incurred, Administrative Expenses in connection with the annexation of the Annexation Territory to the District. The rate and method of apportionment of the special tax applicable to the Annexation Territory is described in detail in Attachment “C” to the Resolution of Intention which is incorporated herein by this reference, and the Mayor and City Council hereby finds that Attachment “C” to the Resolution of Intention contains sufficient detail to allow each landowner within the Annexation Territory to estimate the maximum amount that may be levied against each parcel. The special tax is apportioned to each parcel on the foregoing bases pursuant to Section 53325.3 of the Act and such special tax is not on or based upon the ownership of real property.

SECTION 5. The City’s City Manager will be responsible for preparing annually, or authorizing a designee to prepare, a current roll of special tax levy obligations by assessor’s parcel number and will be responsible for estimating future special tax levies pursuant to Section 53340.2 of the Act. The special tax may be levied for such period as the Services are needed, as further described in Attachment “B” to the Resolution of Intention.

SECTION 6. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code, a continuing lien to secure each levy of the special tax shall attach to all non-exempt real property in the Annexation Territory and this lien shall continue in force and effect until the levy of the special tax by the District ceases in accordance with the Rate and Method.

SECTION 7. Consistent with Section 53325.6 of the Act, the Mayor and City Council finds and determines that the land within the Annexation Territory, if any, devoted primarily to agricultural, timber or livestock uses and being used for the commercial production of agricultural, timber or livestock products is contiguous to other land within the Annexation Territory and will be benefited by the Services proposed to be provided within Community Facilities District No. 2018-1 and the Annexation Territory.

SECTION 8. It is hereby further determined that there is no ad valorem property tax currently being levied on property within the Annexation Territory for the exclusive purpose of paying for the same services as are proposed to be provided by Community Facilities District No. 2018-1.

SECTION 9. Written protests against the annexation of the Annexation Territory to the District and the levy of the special tax therein have not been filed by one-half or more of the registered voters within the boundaries of the Annexation Territory to the District or by the property owners of one-half or more of the area of land within the boundaries of the Annexation Territory. The Mayor and City Council hereby finds that the proposed special tax for the Annexation Territory has not been precluded by a majority protest pursuant to Section 53324 of the Act.

SECTION 10. An election is hereby called for the Annexation Territory on the propositions of annexation to the District and the levying the special tax on the property within Packet Pg. 139
Resolution No. 2022-161
such Annexation Territory, pursuant to Section 53339.7 of the Act. The propositions to be placed on the ballot for the Annexation Territory are attached hereto as Attachment “A.” SECTION 11. The date of the foregoing elections for each Proposed Annexation Territory shall be August 3, 2022, or such later date as is consented to by the City Clerk and the landowners within the Annexation Territory. The City Clerk shall conduct the elections. Except as otherwise provided by the Act, the elections shall be conducted by personally delivered or mailed ballot and, except as otherwise provided by the Act, the elections shall be conducted in accordance with the provisions of law regulating elections of the City insofar as such provisions are determined by the City Clerk to be applicable.

SECTION 12. It is hereby found that there are not more than twelve registered voters within the territory of the Annexation Territory, and, pursuant to Section 53339.7 of the Act, each landowner who is the owner of record on the date hereof, or the authorized representative thereof, shall have one vote for each acre or portion thereof that he or she owns within the Annexation Territory.

SECTION 13. That 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 the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

SECTION 14. 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 15. 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 3rd day of August 2022.

John Valdivia, Mayor
City of San Bernardino
Attest:

Packet Pg. 140
Resolution No. 2022-161
Genoveva Rocha, CMC, City Clerk
Approved as to form:

Sonia Carvalho, City Attorney
Packet Pg. 141
Resolution No. 2022-161

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. 2022-161, adopted at a regular meeting held on the 3rd day of August 2022 by the following vote:

Genoveva Rocha, CMC, City Clerk
Packet Pg. 142

EXHIBIT A

CITY OF SAN BERNARDINO

COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SAFETY SERVICES) ANNEXATION NO. 5
(August 3, 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
RGC Family Trust 1.05 2
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 July 20, 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 August 3, 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 August 3, 2022.

Very truly yours,
Genoveva Rocha, CMC, City Clerk
Packet Pg. 143
TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

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

RGC Family Trust
Attn: Roger Chi
117 W. Las Flores Ave.

Arcadia, CA 91007
0142-325-04

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__.

RGC Family Trust
By: Roger Chi
Owner

Signature
Print Name
Title
Packet Pg. 144
Resolution No. 2022-162
RESOLUTION NO. 2022-162

RESOLUTION OF THE MAYOR AND CITY COUNCIL OF

THE CITY OF SAN BERNARDINO, CALIFORNIA, ACTING

AS THE LEGISLATIVE BODY OF THE CITY OF SAN
BERNARDINO COMMUNITY FACILITIES DISTRICT NO.
2018-1 (SAFETY SERVICES) CERTIFYING THE RESULTS
OF THE AUGUST 3, 2022 ANNEXATION AND SPECIAL

TAX ELECTION
WHEREAS, the Mayor and City Council (the “City Council”) of City of San Bernardino (the “City”) called and duly held consolidated elections on August 3, 2022 within the boundaries of certain territory (the “Annexation Territory”) described in Attachment “A” to Resolution No. 2022-124 adopted by the Mayor and City Council on June 15, 2022, which territory is to be annexed to Community Facilities District No. 2018-1 (Safety Services) of the City of San Bernardino (“Community Facilities District No. 2018-1” or the “District”) pursuant to Resolution No. 2022-162 for the purpose of presenting to the qualified electors within the Annexation Territory the propositions attached hereto as Attachment A; and WHEREAS, there has been presented to this Mayor and City Council a certificate of the City Clerk canvassing the results of the election, a copy of which is attached hereto as Attachment B;

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

SECTION 1. Each of the above recitals is true and correct and is adopted by the legislative body of the District.

SECTION 2. The Proposition presented to the qualified electors of the Annexation Territory on August 3, 2022 were approved by more than two-thirds of the votes cast at the election held for the Annexation Territory and Propositions A and B each has carried. The Mayor and City Council, acting as the legislative body of the District, is hereby authorized to levy on the land within the Annexation Territory, which is hereby annexed to the District in accordance with Proposition A, the special tax described in Proposition B for the purposes described therein.

SECTION 3. The Mayor and City Council, acting as the legislative body of the District, is hereby authorized to take the necessary steps to levy the special tax authorized by Proposition B in accordance with Ordinance No. MC-1506 approved by the Mayor and City Council, acting as the legislative body of the District.

SECTION 4. The City Clerk is hereby directed to record in the Office of the County Recorder within fifteen days of the date hereof a notice of special tax lien for the Annexation Territory which Bond Counsel to the District shall prepare in the form required by Streets and Highways Code Section 3114.5.

Packet Pg. 145
Resolution No. 2022-162
SECTION 5. That 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 the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

SECTION 6. 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 7. 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 3rd day of August 2022.

John Valdivia, Mayor
City of San Bernardino
Attest:

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

Sonia Carvalho, City Attorney
Packet Pg. 146
Resolution No. 2022-162

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. 2022-162, adopted at a regular meeting held on the 3rd day of August 2022 by the following vote:

Genoveva Rocha, CMC, City Clerk
Packet Pg. 147

EXHIBIT A

CITY OF SAN BERNARDINO

Personal
Delivery: If in person, deliver to the City Clerk at any time up to 7:00 p.m. on August 3, 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 August 3, 2022.

Very truly yours,
Genoveva Rocha, CMC, City Clerk
Packet Pg. 148
TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

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

RGC Family Trust
Attn: Roger Chi
117 W. Las Flores Ave.

Arcadia, CA 91007
0142-325-04

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__.

RGC Family Trust
By: Roger Chi
Owner

Signature
Print Name
Title
Packet Pg. 149

EXHIBIT B

CITY OF SAN BERNARDINO
COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SAFETY SERVICES) ANNEXATION NO. 5

CERTIFICATE OF ELECTION RESULTS
I, the undersigned, being the Deputy City Clerk or the Acting City Clerk, as the case may be, hereby certify:

In connection with the special mailed-ballot election called by the Mayor and City Council (the “City Council”) of the City of San Bernardino (the “City”) on this same date in the proceedings of the City Council for the annexation of territory to the above-entitled community facilities district, I personally received (a) a signed and dated waiver and consent form and (b) a signed, dated and marked election ballot(s) on behalf of the owner(s) listed below, the entity named as the sole landowner of the land within the boundary of the above-entitled community facilities district in the Certificate Regarding Registered Voters and Landowners, dated June 13, 2022, and on file in the office of the City Clerk of the City in connection with the City Council actions on that date. Copies of the completed waiver and consent form and the completed ballot received by me and on file in my office are attached hereto.

Following such receipt, I have personally, and in the presence of all persons present, reviewed the ballot to confirm that it is properly marked and signed, and I hereby certify the result of that count to be that the ballot was cast in favor of the measure.

Based upon the foregoing, all votes that were cast having been cast “Yes”, in favor of the ballot measures, the measures has therefore passed.

PROPOSITION A PROPOSITION B
Landowner
Qualified
Landowner
Votes
Votes
Cast YES NO YES NO
RGC Family Trust 2 2
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 ____________, 2022.

Genoveva Rocha, MMC
City Clerk
City of San Bernardino
By:

(Attach completed copies of Waiver/Consent and Ballot)
Packet Pg. 150
Packet Pg. 151
Public Hearing
CFD No. 2018-1 Annexation No. 5:
(TR 20258) APN 0142-325-04
Packet Pg. 152
Public Hearing on CFD 2018-1 Annexation No. 5
Discussion
• Owner: RGC Family Trust
• Requested City annexation into CFD No. 2018-1
• Cover the costs associated with Public Safety services • Proposed area- Annexation No. 5, APN 0142-32-04 within TR 20258
• Proposed development: 6 detached single-family residential lots. • Previous Action
• On June 15, 2022, City Council adopted Resolution No. 2022-124a:

Resolution of Intention to annex these properties into CFD No. 2018-1 and hold a Public Hearing on August 3, 2022.
• Property owner consented to waiving certain time restriction and conduct the election the same night. Packet Pg. 153
Public Hearing on CFD 2018-1 Annexation No. 5
Discussion (Cont.)
• Fiscal Year 2022-23 proposed maximum annual tax per
residential unit: $385
• Special Tax proposed to escalate 4% each year after July 1, 2024
• The services which may be funded with proceeds of the special tax include:
• Police protection services (including but not limited to criminal justice services) and paramedic services; and
• City and County costs associated with the setting, levying and collection of the special tax, and the administration of the District. Packet Pg. 154 Project Location
Packet Pg. 155
Public Hearing on CFD 2018-1 Annexation No. 5
Fiscal Impact
• At build-out total Special Tax revenues will be
approximately $2,310.
• All costs associated with the annexation is borne by
the Developer.
• There is no fiscal impact to the City’s General Fund.

Packet Pg. 156
Public Hearing on CFD 2018-1 Annexation No. 5
Recommended Action

CITY COUNCIL INITIATE ANNEXATION OF TERRITORY TO CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SAFETY SERVICES) ("CFD NO. 2018-1" OR "CFD") BY TAKING THE FOLLOWING ACTIONS:

A. HOLD PUBLIC HEARING,
B. ADOPT A RESOLUTION CALLING THE ELECTION,
C. HOLD A SPECIAL LANDOWNER ELECTION AND CANVASS THE ELECTION, D. ADOPT A RESOLUTION DECLARING RESULTS OF SPECIAL LANDOWNER ELECTION.

Packet Pg. 157
Packet Pg. 158
7/29/2022 9:31 PM
Public Hearing
City of San Bernardino
Request for Council Action
Date: August 3, 2022
To: Honorable Mayor and City Council Members
From: Robert D. Field, City Manager;
Daniel Hernandez, Agency Director of Public Works, Operations, and Maintenance
Subject: Public Hearing on Annexation No. 18 to Community Facilities District 2019-1 (Ward 6)
Recommendation
It is recommended that the Mayor and City Council of the City of San Bernardino, California:

1. Hold a Public Hearing;

2. Adopt Resolution No. 2022-163 of the Mayor and City Council of the City of San Bernardino, California, calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to Community Facilities District No. 2019-1 (Maintenance Services) (Annexation No. 18);

3. Hold a special landowner election and canvass the election;

4. Adopt Resolution No. 2022-164 of the Mayor and City Council of the City of San Bernardino, California, declaring election results for Community Facilities District No. 2019-1 (Maintenance Services) (Annexation No. 18);

5. Introduce, read by title only, and waive further reading of Ordinance No. MC1590 of the Mayor and City Council of the City of San Bernardino, California, amending Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2022-2023 to pay annual costs of the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, parks and trail maintenance, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services); and
Packet Pg. 159
7/29/2022 9:31 PM

6. Schedule the adoption of Ordinance No. MC-1590 for August 17, 2022.

Background
On June 15, 2022, the Mayor and City Council adopted Resolution No. 2022-131, a Resolution of Intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”. A public hearing was set for August 3, 2022 on the proposed annexation of the said territory into the community facilities district. As required by the Resolution of Intention, a boundary map was recorded on June 21, 2022, at 10:48 a.m. in Book 90 Page 38, Document No. 2022-0219975 of Maps of Assessment and Community Facilities Districts with the San Bernardino County Recorder.

The Resolution of Intention was adopted by the Mayor and City Council in response to a petition filed by the property owner of approximately 1.05 gross acres of a zoned residential lot within the City, requesting that the City assist them in annexing their properties into CFD No. 2019-1 under the Mello-Roos Act. The State legislature enacted the Mello-Roos Act in 1982 to assist public agencies in financing certain public improvements by either issuing tax exempt securities that are repaid by annual levy of special taxes, or to provide for the financing of on-going public services. The landowner requested the City annex into CFD No. 2019-1 to levy a special tax to cover the costs associated with the maintenance of public improvements. The public facilities and services proposed to be financed within the territory to be annexed to the District are the following:

1. Maintenance of streets, including pavement management; and

2. Maintenance of Parks; and

3. Graffiti abatement; and

4. 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 area to be annexed into the CFD will be included in Tax Zone 19 and is located at the east side of N. Meridian Avenue and west side of N. Marvin Drive, between W. 5th and 6th Street, as shown in Attachment #13.

The maximum annual special tax for this development has been calculated to be $588 per unit per year for FY 2022/23. Annual Special Tax rate is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. The property owners have agreed to initiate and conduct the CFD annexation proceedings pursuant to the MelloRoos Act of 1982. The property owners have submitted a “Consent and Waiver” form on file in the City Clerk’s Office to initiate and conduct proceedings pursuant to the MelloRoos Act in 1982, for the annexation into the CFD and consenting to the shortening of Packet Pg. 160
7/29/2022 9:31 PM
election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election.

In order to annex property to CFD No. 2019-1 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. 2019-1 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), adopted June 15, 2022.  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 Resolutions and the first reading of the amended Ordinance, the amended Ordinance would be scheduled for adoption on August 17, 2022.

Discussion
The Resolution of Intention called for a public hearing to be held on August 3, 2022 on the issue of the annexation of territory into CFD No. 2019-1. Under the Mello-Roos Act, the Mayor and City Council must hold the public hearing and consider any protests against the formation of the CFD. If the owners of one half or more of the land within the proposed boundaries of the CFD file written protests against the establishment of the CFD, the Council may not create the CFD. If a majority protest is not filed, the Mayor and City Council may adopt the resolution establishing the CFD.

Adoption of Resolution No. 2019-178 on July 17, 2019 established CFD 2019-1, pursuant to the requirements of Government Code Section 53325.1. After a CFD is formed, the Mello-Roos Act requires that for any annexations into the CFD an election be held on the question of whether the proposed special taxes should be levied. The election requires a two-thirds vote in favor of levying the special tax. The landowners filed waivers with respect to the conduct of the election pursuant to Government Code Sections 53326(a) and 53327(b), meaning that the time limits and procedural requirements for conducting an election under the Mello-Roos Act do not have to be followed. Accordingly, City staff has already mailed the election ballots to the landowners and required the ballots to be returned by the close of the public hearing. If the Mayor and City Council adopt Resolution No. 2022-163 it may immediately proceed to the opening of the ballots and adopt Resolution No. 2022-164 declaring the results of the election. 2021-2025 Key Strategic Targets and Goals
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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
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 $3,526 to be used to pay for maintenance costs.

On March 1 of each year, every taxable unit for which a building permit has been issued within the boundaries of the CFD, will be subject to the special tax for the ensuing Fiscal Year. If the anticipated costs of maintaining the facilities in any given Fiscal Year, prior to buildout of the project, exceeds the special tax revenues available from parcels for which building permits have been issued, then the special tax may also be applied to property within recorded final subdivision maps, as well as other undeveloped property within the boundaries of the CFD.

All costs associated with annexation into the CFD have been borne by the Developer. By annexing into the CFD, the costs of maintaining improvements located within the development will be financed through special taxes levied on the parcels within CFD No. 2019-1 and not through the City’s General Fund.

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

1. Hold a Public Hearing;

3. Hold a special landowner election and canvass the election;

5. Introduce, read by title only, and waive further reading of Ordinance No. MC1590 of the Mayor and City Council of the City of San Bernardino, California, amending Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2022-2023 to pay annual costs of the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, Packet Pg. 162
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street sweeping, parks and trail maintenance, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services); and

6. Schedule the adoption of Ordinance No MC-1590 for August 17, 2022.

Attachments
Attachment 1 - Resolution No. 2022-163 - Resolution Calling Election Attachment 2 - Exhibit A Description of Territory
Attachment 3 - Exhibit B Rate and Method of Apportionment Attachment 4 - Exhibit C Special Election Ballot
Attachment 5 - Resolution No. 2022-164 - Resolution Declaring Election Results Attachment 6 - Exhibit A Certificate of Election Results Attachment 7 – Ordinance No. MC-1590
Attachment 8 - Exhibit A Description of Services
Attachment 9 - Exhibit B Parcel List
Attachment 10 – Signed Petition and Waiver
Attachment 11 – Proof of Publication Notice of Public Hearing Attachment 12 - PowerPoint Presentation
Attachment 13 - Project Map
Ward: 6
Synopsis of Previous Council Actions:

June 5, 2019 Mayor and City Council adopted Resolution No. 2019-81, a Resolution of Intention to form Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “MelloRoos Community Facilities Act of 1982.” July 17, 2019 Resolution No. 2019-178 was adopted establishing Community Facilities District No. 2019-1; Resolution No. 2019-179 was adopted declaring election results for Community Facilities District No. 2019- 1; and first reading of Ordinance No. MC-1522 levying special taxes to be collected during FY 2019-20 to pay annual costs of maintenance, services and expenses with respect to Community Facilities District No. 2019-1.

August 7, 2019 Final reading of Ordinance No. MC-1522 levying special taxes to be collected during FY 2019-20 to pay annual costs of maintenance, services and expenses with respect to Community Facilities District No. 2019-1.

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June 15, 2022 Mayor and City Council adopted Resolution No. 2022-131, a Resolution of Intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”.

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RESOLUTION NO. 2022-163

RESOLUTION OF THE MAYOR AND CITY COUNCIL OF

THE CITY OF SAN BERNARDINO, CALIFORNIA,

CALLING AN ELECTION TO SUBMIT TO THE

QUALIFIED ELECTORS THE QUESTION OF LEVYING A

SPECIAL TAX WITHIN THE AREA PROPOSED TO BE
ANNEXED TO COMMUNITY FACILITIES DISTRICT NO.
2019-1 (MAINTENANCE SERVICES) (ANNEXATION NO.
18)
WHEREAS, the Mayor and City Council (the “City Council”) of the City of San Bernardino (the “City”), adopted its Resolution No. 2019-081, (the “Resolution of Intention”) (i) declaring its intention to establish Community Facilities District No. 2019-1 (Maintenance Services) (the “CFD No. 2019-1”) pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), commencing with Section 53311 of the California Government Code (the “Government Code”), (ii) proposing to levy a special taxes within CFD No. 2019-1 pursuant to the terms of the Act to fund the cost of providing maintenance services (the “Services”) described in Exhibit B of the Resolution of Intention, and
WHEREAS, the Mayor and City Council set a public hearing for July 17, 2019 after which the Council adopted Resolution No. 2019-178 forming the CFD No. 2019-1 and calling a special election at which the questions of levying a special tax and establishing an appropriations limit with respect to the CFD No. 2019-1 were submitted to the qualified electors within the CFD No. 2019-1; and
WHEREAS, on July 17, 2019, the Mayor and City Council adopted Resolution No. 2019- 179 declaring the results of the special election and finding that more than two-thirds (2/3) of all votes cast at the special election were cast in favor of the proposition presented, and such proposition passed; and
WHEREAS, the Mayor and City Council is authorized by Article 3.5 (commencing with Section 53339) of Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code as amended (the "Act"), to annex territory into an existing community facilities district by complying with the procedures set forth in said Article 3.5; and
WHEREAS, the Mayor and City Council on June 15, 2022 duly adopted Resolution No. 2022-131 (the “Resolution of Intention”) declaring its intention to annex certain territory to CFD No. 2019-1 (Maintenance Services) and to levy a special tax within that territory to pay for certain services and setting a time and place for the public hearing on the proposed annexation for August 3, 2022; and
WHEREAS, the territory proposed to be annexed is identified in a map entitled "Annexation Map No. 18 Community Facilities District No. 2019-1 (Maintenance Services)" a copy of which was recorded, on June 21, 2022, in Book 90 of Maps of Assessment and Community Facilities Districts at Page 38, in the office of the San Bernardino County Recorder; and Packet Pg. 165
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WHEREAS, pursuant to the Act and the Resolution of Intention, a noticed public hearing was convened by the Mayor and City Council on August 3, 2022, not earlier than the hour of 7:00 p.m. at the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92410, relative to the proposed annexation of said territory to CFD No. 2019-1. At the hearing, the testimony of all interested 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 August 3, 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; and
WHEREAS, written protests have not been filed by fifty percent (50%) or more of the registered voters residing within the CFD No 2019-1, or by fifty percent (50%) or more of the registered voters residing within the territory to be annexed, or by the owners of one-half (1/2) or more of the area within the CFD No. 2019-1, or by the owners of one-half (1/2) or more of the territory to be annexed; and
WHEREAS, the Mayor City Council has determined that there are fewer than twelve registered voters residing in the territory proposed to be annexed to the CFD No. 2019-1 and that the qualified electors in such territory are the landowners; and WHEREAS, on the basis of all of the foregoing, the Mayor and City Council has determined at this time to call an election to authorize the annexation of territory to the CFD No. 2019-1 and the levying of a special tax as described in Exhibit A hereto; and WHEREAS, the Mayor and City Council has received a written instrument from each landowner in the territory proposed to be annexed to the CFD No. 2019-1 consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election; and WHEREAS, the City Clerk has concurred in the election date set forth herein.

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.

SECTION 2. Conformation of Finding in Resolution of Intention. The Mayor and City Council reconfirms all of its findings and determinations as set forth in the Resolution of Intention.

SECTION 3. Findings Regarding Protests. The Mayor and City Council finds and determines that written protests to the proposed annexation of territory to the CFD No. 2019-1 and Packet Pg. 166
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the levy of the special tax within such territory are insufficient in number and in amount under the Act, and the Mayor and City Council hereby further orders and determines that all such protests are hereby overruled.

SECTION 4. Findings Regarding Prior Proceedings. The Mayor and City Council finds and determines that all prior proceedings had and taken by the Mayor and City Council with respect to the annexation of territory to CFD No. 2019-1 are valid and in conformity with the requirements of the Act.

SECTION 5. Levy of Special Tax. As stated in the Resolution of Intention, except where funds are otherwise available, subject to the approval of the qualified electors of territory proposed to be annexed to CFD No. 2019-1, a special tax sufficient to pay the costs of the Services (including incidental expenses as described in the Resolution of Intention), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2019-1, will be levied annually in CFD No. 2019-1. The rate and method of apportionment, and manner of collection of the special tax are specified in Exhibit B hereto.

SECTION 6. Apportionment of Tax. The special tax as apportioned to each parcel is based on the cost of making the Services available to each parcel, or other reasonable basis, and is not based on or upon the ownership of real property.

SECTION 7. Tax Roll Preparation. The office of the Public Works Director, 201 North “E” Street, San Bernardino, California 92401, is hereby designated as the office that will be responsible for annually preparing a current roll of special tax levy obligations by assessor’s parcel number and that will be responsible for estimating future special tax levies pursuant to Government Code section 53340.2. The Public Works Director may cause these functions to be performed by his or her deputies, assistants, or other designated agents.

SECTION 8. Accountability Measures. Pursuant to Section 50075.1 of the California Government Code, the City shall create a separate account into which tax proceeds will be deposited; and the Public Works Director annually shall file a report with the Mayor and City Council that will state (a) the amount of funds collected and expended and (b) the status of the Services financed in CFD No. 2019-1.

SECTION 9. Special Election; Voting Procedures. The Mayor and City Council hereby submits the questions of levying the special tax within the territory proposed to be annexed to the qualified electors, in accordance with and subject to the Act. The special election shall be held on August 3, 2022, and shall be conducted as follows:
(a) Qualified Electors. The Mayor and City Council hereby determines that the Services are necessary to meet increased demands placed upon the City as a result of development occurring within the boundaries of CFD No. 2019-1. Because fewer than twelve registered voters resided within the territory proposed to be annexed to CFD No. 2019-1 on June 13, 2022 (a date within the 90 days preceding the close of the public hearing on the territory proposed to be annexed to CFD No. 2019-1), the qualified electors shall be the landowners within territory proposed to be annexed, and each landowner who was the owner of record at the close of the hearing shall have Packet Pg. 167
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one vote for each acre or portion of an acre of land that such landowner owns within the territory proposed to be annexed to CFD No. 2019-1.
(b) Consolidation of Elections; Combination of Propositions on Ballot. The election on the question of levying the special tax and establishing an appropriations limit for CFD No. 2019-1 shall be consolidated, and the two proportions shall be combined into a single ballot proposition for submission to the voters, as authorized by Government Code Section 53353.5. (c) Mail Ballot Election. Pursuant to Government Code section 53327.5, the election shall be conducted as a mail ballot election. The Mayor and City Council hereby ratifies the City Clerk’s delivery of a ballot to each landowner within the territory proposed to be annexed to CFD No. 2019-1. The Mayor and City Council hereby ratifies the form of the ballot, which is attached hereto as Exhibit C.
(d) Return of Ballots. The City Clerk shall accept the ballots of the landowners up to 7:00 p.m. on August 3, 2022. The City Clerk shall have available ballots that may be marked at the City Clerk’s office on the election day by voters. Once all qualified electors have voted, the City Clerk may close the election.
(e) Canvass of Election. The City Clerk shall commence the canvass of the returns of the special election as soon as the election is closed (on August 3, 2022, or when all qualified electors have voted) at the City Clerk’s office. At the conclusion of the canvass, the City Clerk shall declare the results of the election.
(f) Declaration of Results. The Mayor and City Council shall declare the results of the special election following the completion of the canvass of the returns and shall cause to be inserted into its minutes a statement of the results of the special election as ascertained by the canvass of the returns.

SECTION 10. Filing of Resolution and Map with City Clerk. The Mayor and City Council hereby directs the City Clerk to file a copy of this resolution and the annexation map of the boundaries of CFD No. 2019-1 in her office.

SECTION 11. 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 the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

SECTION 12. 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 13. Effective Date. This Resolution shall become effective immediately.

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APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 3rd day of August 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. 2022-163, adopted at a regular meeting held on the 3rd day of August 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. 2019-1 (Maintenance Services) (the “CFD No. 2019-1”) Annexation No. 18 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 Owner Name
0142-325-04 RGC Family Trust
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EXHIBIT B
City of San Bernardino 1
Community Facilities District No. 2019‐1 (Maintenance Services)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2019‐1 (MAINTENANCE 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. 2019‐1 (Maintenance Services) (the “CFD No. 2019‐1” 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. 2019‐1, by applying the rate and method of apportionment set forth below. All of the real property in CFD No. 2019‐1, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein.

A. DEFINITIONS
“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator.
“Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation, annexation, and administration of CFD No. 2019‐1 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 coststo the City, CFD No. 2019‐1, or any designee thereof associated with fulfilling the CFD No. 2019‐1 disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2019‐1 or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees including payment of a proportional share of salaries and benefits of any City employees and City overhead whose duties are related to the administration and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2019‐1 for any other administrative purposes of CFD No. 2019‐1, including attorney's fees and other costs related 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. “Approved Property” means all Assessor’s Parcels of Taxable Property that are included in a Final Map that was recorded prior to the March 1 preceding the Fiscal Year in which the Special Tax is being levied, and that have not been issued a building permit on or prior to the March 1 preceding the Fiscal year in which the special tax is being levied.
“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 that identification number assigned to a parcel by the County Assessor of the County.

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Community Facilities District No. 2019‐1 (Maintenance Services) “Building Square Footage” or “BSF” means the floor area square footage reflected on the original construction building permit issued for construction of a building of Non‐Residential Property and any Building Square Footage subsequently added to a building of such Taxable Property after issuance of a building permit for expansion or renovation of such building. “Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD” or “CFD No. 2019‐1” means the City of San Bernardino Community Facilities District No. 2019‐ 1 (Maintenance Services).
“City” means the City of San Bernardino.
“Contingent Special Tax B Requirement” means that amount required in any Fiscal Year, if the POA is unable to maintain the Service(s) to: (i) pay the costs of Services incurred or otherwise payable in the Calendar Year commencing in such Fiscal Year; (ii) fund an operating reserve for the costs of Services as determined by the Administrator; less a credit for funds available to reduce the annual Special Tax B (Contingent) levy as determined by the Administrator. “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 March 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 G.
“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 etseq.) or recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for which building permits may be issued without further subdivision. “Fiscal Year” means the period from and including July 1st of any year to and including the following June 30th.
“Land Use Category” or “LUC” means any of the categories contained in Section B hereof to which an Assessor’s Parcel is assigned consistent with the land use approvals that have been received or proposed for the Assessor’s Parcel as of March 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Maximum Special Tax” means either Maximum Special Tax A and/or Maximum Special Tax B (Contingent), as applicable.
“Maximum Special Tax A” means the Maximum Special Tax A, as determined in accordance with Section C below that can be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property within CFD No. 2019‐1.

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Community Facilities District No. 2019‐1 (Maintenance Services) “Maximum Special Tax B (Contingent)” means the Maximum Special Tax B (Contingent), as determined in accordance with Section C below that can be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property within CFD No. 2019‐1.
“Multi‐Family Residential Property” means any Assessor’s Parcel of residential property that consists of a building or buildings comprised of attached Residential Units sharing at least one common wall with another unit.
“Non‐Residential Property” or “NR” means all Assessor's Parcels of Taxable Property for which a building permit(s) was issued for a non‐residential use. The Administrator shall make the determination if an Assessor’s Parcel is Non‐Residential Property. “Property Owner’s Association” or “POA” means the property owner’s association or homeowner’s association established to maintain certain landscaping within a Tax Zone. “Proportionately” means for Taxable Property that is: (i) Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Developed Property with the same Tax Zone, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property with the same Tax Zone, and (iii) 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 Parcels of Undeveloped Property with the same Tax Zone. “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. “Service(s)” means services permitted under the Mello‐Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2019‐1 as set forth in the documents adopted by the City Council at the time the CFD was formed. “Single Family Residential Property” means any residential property other than Multi‐Family Residential Property on an Assessor’s Parcel.
“Special Tax(es)” means the Special Tax A and/or Special Tax B (Contingent) to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.
“Special Tax A” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax A Requirement. "Special Tax A Requirement" means for each Tax Zone, that amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs for such Tax Zone of CFD No. 2019‐1 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for maintenance services including but not limited to (i) maintenance and lighting of parks, parkways, streets, roads and open space, (ii) maintenance and operation of water quality improvements, (iii) public street sweeping, (iv) fund an operating reserve for the costs of Services as determined by the Administrator, and (v) Administrative Expenses. Under no circumstances shall the Special Tax A Requirement include funds for Bonds.

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Community Facilities District No. 2019‐1 (Maintenance Services) “Special Tax B (Contingent)” means the Special Tax B (Contingent) to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Contingent Special Tax B Requirement, if required.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2019‐1, which are not Exempt Property.
“Taxable Unit” means a Residential Unit, Building Square Footage, or an Acre. "Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax rates may be levied pursuant to this Rate and Method of Apportionment of Special Tax. Appendix C identifies the Tax Zone in CFD No. 2019‐1 at formation; additional Tax Zones may be created when property is annexed into the CFD.
"Tax Zone 1" means the specific geographic area identified on the CFD Boundary Map as Tax Zone 1. "Tract(s)" means an area of land; i) within a subdivision identified by a particular tract number on a Final Map, ii) identified within a Parcel Map; or iii) identified within lot line adjustment approved for subdivision.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Approved Property.

B. ASSIGNMENT TO LAND USE CATEGORIES
For each Fiscal Year, all Assessor’s Parcels of Taxable Property within CFD No. 2019‐1 shall be classified as Developed Property, Approved Property, or Undeveloped Property, and shall be subject to the levy of Special Taxes as determined pursuant to Sections C and D below. Assessor’s Parcels of Developed Property and Approved Property shall be classified as either Residential Property or Non‐Residential Property. Residential Property shall be further classified as Single Family Residential Property or Multi‐Family Residential Property and the number of Residential Units shall be determined by the Administrator.

C. MAXIMUM SPECIAL TAX RATES
For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Residential Property, all such Assessor’s Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon as specified in or shown on the building permit(s) issued or Final Map as determined by the Administrator. For Parcels of undeveloped property zoned for development of single family attached or multi‐family units, the number of Residential Units shall be determined by referencing the condominium plan, apartment plan, site plan or other development plan, or by assigning the maximum allowable units permitted based on the underlying zoning for the Parcel. Once a single family attached or multi‐family building or buildings have been built on an Assessor's Parcel, the Administrator shall determine the actual number of Residential Units contained within the building or buildings, and the Special Tax A levied against the Parcel in the next Fiscal Year shall be calculated by multiplying the actual number of Residential Units by the Maximum Special Tax per Residential Unit identified for the Tract below or as included in Appendix A as each Annexation occurs.

For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Non‐Residential Property, all such Assessor’s Packet Pg. 175
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Community Facilities District No. 2019‐1 (Maintenance Services) Parcels shall be assigned the number of Building Square Footage or Acres as shown on the Final Map as determined by the Administrator. Once the Administrator determines the actual number of Building Square Footage or Acres for the Assessor’s Parcels, the Special Tax A levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the number of Building Square Footage or Acres by the Maximum Special Tax per Taxable Unit identified for the Tax Zone below or as included in Appendix A as each Annexation occurs.

1. Special Tax A
a. Developed Property
(i) Maximum Special Tax A
The Maximum Special Tax A for each Assessor’s Parcel of Developed Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2019‐1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zones annexed and included in Appendix A. The Maximum Special Tax A for Developed Property for Fiscal Year 2019‐2020 within Tax Zone 1 isidentified in Table 1 below:

TABLE 1

MAXIMUM SPECIAL TAX A RATES

DEVELOPED PROPERTY
Tax
Zone  Tract Land Use Category
Taxable
Unit
Maximum
Special Tax A
1 TR 17170 Single Family Residential Property RU $961
(ii) Increase in the Maximum Special Tax A
On each July 1, commencing on July 1, 2020 the Maximum Special Tax A for Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. (iii) Multiple Land Use Categories
In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Category.  The Maximum Special Tax A that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax A that can be levied for each Land Use Category located on that Assessor's Parcel.  For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel.  The Administrator's allocation to each type of property shall be final.
b.   Approved Property
The Maximum Special Tax A for each Assessor’s Parcel of Approved  Property shall be specific to each Tax Zone within the CFD.  When additional property is annexed into CFD No. 2019‐1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone annexed and included in Appendix A.  The Maximum Special Tax A for Approved property Fiscal Year 2019‐20 within Tax Zone 1 is identified in Table 2 below:

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Community Facilities District No. 2019‐1 (Maintenance Services) TABLE 2

MAXIMUM SPECIAL TAX A RATES

APPROVED PROPERTY
Tax
Zone  Tract Land Use Category
Taxable
Unit
Maximum
Special Tax A
1 TR 17170 Single Family Residential RU $961
On each July 1, commencing on July 1, 2020 the Maximum Special Tax A for Approved Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
c.   Undeveloped Property
The Maximum Special Tax A for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD.  When additional property is annexed into CFD No. 2019‐1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone annexed and included in Appendix A.  The Maximum Special Tax A for Undeveloped Property for Fiscal Year 2019‐20 within Tax Zone 1 is identified in Table 3 below:

TABLE 3

MAXIMUM SPECIAL TAX A RATES

UNDEVELOPED PROPERTY
Tax Zone Tracts Taxable Unit Maximum Special Tax A
1 TR 17170 Acre $4,338
On each July 1, commencing on July 1, 2020 the Maximum Special Tax A for Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

2. Special Tax B (Contingent)
The City Council shall levy Special Tax B (Contingent) only in the event the POA defaults in its obligation to maintain the Contingent Services, which default shall be deemed to have occurred, as determined by the Administrator, in each of the following circumstances:
(a) The POA files for bankruptcy;
(b) The POA is dissolved;
(c) The POA ceases to levy annual assessments for the Contingent Services; or (d) The POA fails to provide the Contingent Services at the same level as the City provides similar services and maintains similar improvements throughout the City and within ninety (90) days after written notice from the City, or such longer period permitted by the City Manager, fails to remedy the deficiency to the reasonable satisfaction of the City Council. a. Developed Property
(i) Maximum Special Tax B (Contingent)
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City of San Bernardino 7
Community Facilities District No. 2019‐1 (Maintenance Services) The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 4 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2019‐1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for each Tax Zones annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2019‐20 within Tax Zone 1 is identified in Table 4 below:

TABLE 4

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

DEVELOPED PROPERTY
Tax
Zone  Tract Land Use Category
Taxable
Unit
Maximum Special
Tax B (Contingent)
1 TR 17170 Single Family Residential Property RU $0
(ii) Increase in the Maximum Special Tax B (Contingent) On each July 1, commencing on July 1, 2020 the Maximum Special Tax B (Contingent) for Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. (iii) Multiple Land Use Categories
In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Category.   The Maximum Special Tax B (Contingent) that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax B (Contingent) that can be levied for each Land Use Category located on that Assessor's Parcel.  For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel.   The Administrator's allocation to each type of property shall be final. b.   Approved Property
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 5 and shall be specific to each Tax Zone within the CFD.  When additional property is annexed into CFD No. 2019‐1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A.

The Maximum Special Tax B (Contingent) for Fiscal Year 2019‐20 within the Tax Zone is identified in Table 5 below:

TABLE 5

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

APPROVED PROPERTY
Tax
Zone  Tract Land Use Category
Taxable
Unit
Maximum Special
Tax B (Contingent)
1 TR 17170 Single Family Residential Property RU $0
On each July 1, commencing on July 1, 2020 the Maximum Special Tax B (Contingent) for Approved Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Packet Pg. 178
City of San Bernardino 8
Community Facilities District No. 2019‐1 (Maintenance Services) Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. c.   Undeveloped Property
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 6 and shall be specific to each Tax Zone within the CFD.  When additional property is annexed into CFD No. 2019‐1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A.

The Maximum Special Tax B (Contingent) for Fiscal Year 2019‐20 within the Tax Zone is identified in Table 6 below:

TABLE 6

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

UNDEVELOPED PROPERTY
Tax Zone
Tracts Taxable Unit
Maximum Special
Tax B (Contingent)
1 TR 17170 Acre $0
On each July 1, commencing on July 1, 2020 the Maximum Special Tax B (Contingent) for Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX

1. Special Tax A
Commencing with Fiscal Year 2019‐20 and for each following Fiscal Year, the Council shall determine the Special Tax A Requirement and shall levy the Special Tax A on all Assessor’s Parcels of Taxable Property until the aggregate amount of Special Tax A equals the Special Tax A Requirement for each Tax Zone. The Special Tax A shall be levied for each Fiscal Year as follows:

First: The Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Developed Property within each Tax Zone up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax A Requirement for such Tax Zone;
Second: If additional moneys are needed to satisfy the Special Tax A Requirement for a Tax Zone after the first step has been completed, the Special Tax A shall be levied Proportionately on each Parcel of Approved Property within such Tax Zone up to 100% of the Maximum Special Tax A for Approved Property;
Third: If additional monies are needed to satisfy the Special Tax A Requirement for a Tax Zone after the first two steps has been completed, the Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property within such Tax Zone up to 100% of the Maximum Special Tax A for Undeveloped Property.

2. Special Tax B (Contingent)
Commencing with Fiscal Year in which Special Tax B (Contingent) is authorized to be levied and for each following Fiscal Year, the City Council shall determine the Contingent Special Tax B (Contingent) Requirement for each Tax Zone, if any, and shall levy the Special Tax on all Assessor’s Parcels of Packet Pg. 179
City of San Bernardino 9
Community Facilities District No. 2019‐1 (Maintenance Services) Taxable Property within such Tax Zone until the aggregate amount of Special Tax B (Contingent) equals the Special Tax B ( Contingent) Requirement for such Tax Zone. The Special Tax B (Contingent) Shall be levied for each Fiscal Year as follows:

First: The Special Tax shall be levied Proportionately on all Assessor’s Parcels of Developed Property for a Tax Zone up to 100% of the applicable Maximum Special Tax B (Contingent) to satisfy the Contingent Special Tax B Requirement;
Second: If additional moneys are needed to satisfy the Contingent Special Tax B Requirement after the first step has been completed, the Special Tax B (Contingent) shall be levied Proportionately on each Parcel of Approved Property within such Tax Zone up to 100% of the Maximum Special Tax B (Contingent) for Approved Property;
Third: If additional monies are needed to satisfy the Contingent Special Tax B Requirement after the first two steps has been completed, the Special Tax B (Contingent) shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property within such Tax Zone up to 100% of the Maximum Special Tax B (Contingent) for Undeveloped Property.

E. FUTURE ANNEXATIONS
It is anticipated that additional properties will be annexed to CFD No. 2019‐1 from time to time. As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Services. Based on this analysis, the property to be annexed, pursuant to California Government Code section 53339 et seq. will be assigned to the appropriate Maximum Special Tax rate for the Tax Zone when annexed and included in Appendix A.

F. DURATION OF SPECIAL TAX
For each Fiscal Year, the Special Tax A shall be levied as long as the Services are being provided.

For each Fiscal Year, the Special Tax B (Contingent) shall be levied as long as the Contingent Services are being provided.

G. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2019‐1, any Assessor’s Parcels; (i) which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) with public or utility easements making impractical their utilization for other than the purposesset forth in the easement; (iii) which are privately owned but are encumbered by or restricted solely for public uses; or (iv) which is in use in the performance of a public function as determined by the Administrator.

H. 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. A representative(s) of CFD No. 2019‐1 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 representative’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 adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).

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City of San Bernardino 10
Community Facilities District No. 2019‐1 (Maintenance Services)

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. 2019‐1 may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.

Packet Pg. 181
City of San Bernardino 11
Community Facilities District No. 2019‐1 (Maintenance Services)

APPENDIX A

CITY OF SAN BERNARDINO
COMMUNITY FACILITIES DISTRICT NO. 2019‐1 (MAINTENANCE SERVICES)

COST ESTIMATE
Special Tax A Services ‐ The estimate breaks down the costs of providing one year's maintenance services for Fiscal Year 2022‐23. These services are being funded by the levy of Special Tax A for Community Facilities District No. 2019‐1.

TAX ZONE 19
TR 20258
Item Description Estimated Cost
1 Streets $1,663
2 Parks $780
3 Graffiti $33
4 Reserves $50
5 Admin $1,000
Total $3,526
Special Tax B Contingent Services – There are no services being funded by the levy of Special Tax B (Contingent) for Community Facilities District No. 2019‐1. However, additional Tax Zones may have Special Tax B Contingent Services being provided.

TAX ZONE 19
FY 2022‐23 MAXIMUM SPECIAL TAX RATES

DEVELOPED PROPERTY AND APPROVED PROPERTY
Land Use
Category
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Single‐Family Residential RU $588 $0
Multi‐Family Residential RU $588 $0
Non‐Residential Property Acre $3,371 $0
TAX ZONE 19
FY 2022‐23 MAXIMUM SPECIAL TAX RATES

UNDEVELOPED PROPERTY
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Acre $3,371 $0

Packet Pg. 182
City of San Bernardino 12
Community Facilities District No. 2019‐1 (Maintenance Services)

TAX ZONE SUMMARY
Annexation
Tax
Zone
Tract
APN
Fiscal
Year
Maximum
Special Tax A
Maximum
Special Tax B Subdivider
Original 1 17170 2019‐20 $961 / RU $0 / RU Santiago Communities, Inc. 1 2 17329 2019‐20 $473 / RU $0 / RU JEC Enterprises, Inc. 2 3 PM 19814 2020‐21 $608 / Acre $0 / Acre GWS #4 Development, LLC 3 4 0266‐041‐39 2019‐20 $1,136 / Acre $0 / Acre Devore Storage Facility, LLC 4 5 TR 20006 2020‐21 $344 / RU $57 / RU TH Rancho Palma, LLC 5 6 PM 19701 2020‐21 $1,895 / Acre $528 / Acre Strata Palma, LLC 6 7 PM 20112 2020‐21 $3,197 / Acre $0 / Acre San Bernardino Medical Center LLC
7 8 TR 20293 2021‐22 $2,913 / Acre $334 / Acre ICO Fund VI, LLC 8 9 LM 2019‐021 2021‐22 $815 / Acre $232 / Acre TR 2600 Cajon Industrial LLC 9 10 TR 20189 2021‐22 $490 / Acre $154 / Acre Central Commerce Center, LLC 10 11 LD 1900086 2021‐22 $1,472 / Acre $0 / Acre Lankershim Industrial, LLC 11 12 TR 20305 2022‐23 $175 / Acre $0 / Acre Prologis, LP 12 13 LLA 2020‐004 2022‐23 $1,169 / Acre $0 / Acre Dreamland Real Estate Holdings 13 14 TR 5907 2022‐23 $2,268 / Acre $0 / Acre Magic Laundry Services, Inc. 14 15 0136‐191‐21 2022‐23 $5,277 / Acre $0 / Acre Ahmad Family Trust 15 16 TR 20216 2022‐23 $7,089 / Acre $0 / Acre Gateway SB, LLC 16 17 TR 20145 2022‐23 $646 / RU $0 / RU RCH‐CWI Belmont, LP 17 18 CUP 20‐07 2022‐23 $7,433 / Acre $0 / Acre George A. Pearson 18 19 TR 20258 2022‐23 $588 / RU $0 / RU RGC Family Trust 19 20 LM 21‐10 2022‐23 $5,284 / Acre $0 / Acre 170 East 40th Street, LLC 20 21 LM 22‐04 2022‐23 $6,397 / Acre $0 / Acre 108 Highland, LP 21 To Be Determined
22 23 TR 4592 2022‐23 $847 / Acre $320 / Acre 1300 E Highland Ave LLC 23 24 LLA 2020‐005 2022‐23 $1,385 / Acre $978 / Acre Vone SB, LLC

ESCALATION OF MAXIMUM SPECIAL TAXES
On each July 1, commencing on July 1, 2020 the Maximum Special Tax shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

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City of San Bernardino 13
Community Facilities District No. 2019‐1 (Maintenance Services)

APPENDIX B

CITY OF SAN BERNARDINO
COMMUNITY FACILITIES DISTRICT NO. 2019‐1 (MAINTENANCE SERVICES)

DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2019‐1, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right‐of‐ways, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways,streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and (b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right‐of‐way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance, servicing; or both of the water quality basin improvements within flood control channel improvements; and
(c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2019‐1; as well as local roads within residential subdivisions located within CFD No. 2019‐1; and any portions adjacent to the properties within CFD No. 2019‐1; and 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.

The above services shall be limited to those provided within the boundaries of CFD No. 2019‐1 or for the benefit of the properties within the boundaries of CFD No. 2019‐1, asthe boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2019‐1 only to the extent that they are in addition to those provided in the territory of CFD No. 2019‐1 before CFD No. 2019‐1 was created.

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City of San Bernardino 14
Community Facilities District No. 2019‐1 (Maintenance Services)

APPENDIX C

CITY OF SAN BERNARDINO
COMMUNITY FACILITIES DISTRICT NO. 2019‐1 (MAINTENANCE SERVICES)

PROPOSED BOUNDARIES AND POTENTIAL ANNEXATION AREA BOUNDARIES Packet Pg. 185

EXHIBIT C

CITY OF SAN BERNARDINO

COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 18
(August 3, 2022)
This ballot is for the use of the authorized representative of the following owner of land within Community Facilities District No. 2019-1 (Maintenance Services) (“CFD No. 2019-1”) of the City of San Bernardino:

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. 2019-1, 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:

Personal
Delivery: If in person, deliver to the City Clerk at any time up to 7:00 p.m. on August 3, 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 August 3, 2022.

Very truly yours,
Genoveva Rocha, CMC, City Clerk
Packet Pg. 186
TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

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

RGC Family Trust
Attn: Roger Chi
117 W. Las Flores Ave.

Arcadia, CA 91007
0142-325-04

CITY OF SAN BERNARDINO

COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT SPECIAL TAX BALLOT MEASURE MARK “YES” OR “NO”
WITH AN “X”:

Shall the City Council of the City of San Bernardino be authorized to levy a special tax on an annual basis at the rates and apportioned as described in Exhibit C to the Resolution Declaring its Intention to Annex territory to Community Facilities District No. 2019-1 (Maintenance Services) adopted by the City Council on June 15, 2022 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 18 of Community Facilities District No. 2019-1 (Maintenance Services) City of San Bernardino” to finance certain services as set forth in Section 4 to the Resolution (including incidental expenses), and shall an appropriation limit be established for the Community Facilities District No. 2019-1 (Maintenance Services) in the amount of special taxes collected?
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__.

RGC Family Trust
By. Roger Chi
Owner

Signature
Print Name
Title
Packet Pg. 187
Resolution No. 2022-164
Resolution 2022-164
August 3, 2022

Page 1 of 3 ends

RESOLUTION NO. 2022-164

RESOLUTION OF THE MAYOR AND CITY COUNCIL OF

THE CITY OF SAN BERNARDINO, CALIFORNIA

DECLARING ELECTION RESULTS FOR FACILITIES
DISTRICT NO. 2019-1 (MAINTENANCE SERVICES)
(ANNEXATION NO. 18)
WHEREAS, the Mayor and City Council (the "City Council") of the City of San Bernardino (the "City") has heretofore conducted proceedings for the area proposed to be annexed to Community Facilities District No. 2019-1 (Maintenance Services) (the "CFD No. 2019-1") of the City of San Bernardino, including conducting a public hearing pursuant to Section 53339.5 of the Government Code; and
WHEREAS, at the conclusion of said public hearing, the Mayor and City Council adopted a resolution calling a special election for August 3, 2022, and submitting to the qualified electors of the territory to be annexed to the CFD No. 2019-1 the question of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City as a result of the development of said real property as provided in the form of special election ballot; and WHEREAS, a Certificate of Election Results, attached thereto as Exhibit A, dated August 3, 2022, executed by the City Clerk (or, in the absence of the City Clerk, the Acting City Clerk – in either case, the “Clerk”), has been filed with this Council, certifying that a completed ballot has been returned to the Clerk for each landowner-voter(s) eligible to cast a ballot in said special election, with all votes cast as “Yes” votes in favor of the ballot measure, and further certifying on said basis that the special mailed-ballot election was closed; and WHEREAS, this Council has received, reviewed and hereby accepts the Clerk’s Certificate of Election Results and wishes by this resolution to declare the results of the special mailed-ballot election;

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.

SECTION 2. Ballot Measure. This Council hereby finds, determines and declares that the ballot measure submitted to the qualified electors of the territory to be annexed to CFD No. 2019-1 has been passed and approved by those qualified electors in accordance with Sections 53328 and 53329 of the Government Code.

SECTION 3. Annexation. This Council hereby finds, determines and declares that pursuant to Section 53339.8 of the Government Code, the Mayor and City Council is authorized to determine that the territory to be annexed has been added to and become a part of the CFD No. 2019-1 with full legal effect, and the Mayor and City Council is also authorized, pursuant to said Packet Pg. 188
Resolution No. 2022-164
Resolution 2022-164
August 3, 2022

Page 2 of 3 ends

Section 53339.8, to annually levy special taxes within the territory to be annexed to pay the costs of the services to be provided by the CFD No. 2019-1 as specified in Resolution No. 2022-131 adopted by the Mayor and City Council on June 15, 2022. The boundaries of the territory annexed are shown on the map entitled, "Annexation Map No. 18 Community Facilities District No. 2019-1 (Maintenance Services)" a copy of which was recorded, on June 21, 2022, in Book 90 of Maps of Assessment and Community Facilities Districts at Page 38, in the office of the San Bernardino County Recorder.

SECTION 4. Notice of Special Tax Lien. Pursuant to Section 53339.8 of the Government Code and Section 3117.5 of the Streets and Highways Code, the City Clerk shall cause to be filed with the County Recorder of the County of San Bernardino an amendment of the notice of special tax lien and a map of the amended boundaries of the CFD No. 2019-1 including the annexed territory.

SECTION 5. 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 the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

SECTION 7. 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 3rd day of August 2022.

John Valdivia, Mayor
City of San Bernardino
Attest:

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

Sonia Carvalho, City Attorney
Packet Pg. 189
Resolution No. 2022-164
Resolution 2022-164
August 3, 2022

Page 3 of 3 ends

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. 2022-164, adopted at a regular meeting held on the 3rd day of August 2022 by the ollowing vote:

Genoveva Rocha, CMC, City Clerk
Packet Pg. 190

EXHIBIT A

CITY OF SAN BERNARDINO
COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 18

CERTIFICATE OF ELECTION RESULTS
I, the undersigned, being the City Clerk or the Acting City Clerk, as the case may be, hereby certify:

In connection with the special mailed-ballot election called by the City Council (the “City Council”) of the City of San Bernardino (the “City”) on this same date in the proceedings of the City Council for the annexation of territory to the above-entitled community facilities district, I personally received (a) a signed and dated waiver and consent form and (b) a signed, dated and marked election ballot(s) on behalf of the owner(s) listed below, the entity named as the sole landowner of the land within the boundary of the above-entitled community facilities district in the Certificate Regarding Registered Voters and Landowners, date June 27, 2022, and on file in the office of the City Clerk of the City in connection with the City Council actions on that date. Copies of the completed waiver and consent form and the completed ballot received by me and on file in my office are attached hereto.

Based upon the foregoing, all votes that were cast having been cast “Yes”, in favor of the ballot measure, the measure has therefore passed.

Landowner
Qualified
Landowner Votes Votes Cast YES NO
RGC Family Trust 2 2
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 ____________, 2022.

Genoveva Rocha, CMC
City Clerk
City of San Bernardino
By:

(Attach completed copies of Waiver/Consent and Ballot)
Packet Pg. 191
Ordinance No. MC-1590
1 ORDINANCE NO. MC-1590

AN ORDINANCE OF THE MAYOR AND CITY COUNCIL

OF THE CITY OF SAN BERNARDINO, CALIFORNIA,
AMENDING ORDINANCE NO. MC-1522 AND LEVYING

SPECIAL TAXES TO BE COLLECTED DURING FISCAL
YEAR 2022-2023 TO PAY THE ANNUAL COSTS OF THE

MAINTENANCE AND SERVICING OF LANDSCAPING,

LIGHTING, WATER QUALITY IMPROVEMENTS,

GRAFFITI, STREETS, STREET SWEEPING, PARKS AND

TRAIL MAINTENANCE, A RESERVE FUND FOR

CAPITAL REPLACEMENT, AND ADMINISTRATIVE

EXPENSES WITH RESPECT TO CITY OF SAN
BERNARDINO COMMUNITY FACILITIES DISTRICT NO.
2019-1 (MAINTENANCE SERVICES)
WHEREAS, the Mayor and City Council (the "City Council") of the City of San Bernardino (the "City") has heretofore adopted Resolution No. 2019-81, stating that a community facilities district to be known as "City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services), County of San Bernardino, State of California" (the "Community Facilities District"), is proposed to be established under the provisions of 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"), and fixing the time and place for a public hearing on the formation of the Community Facilities District; and
WHEREAS, notice was published and mailed to the owners of the property in the Community Facilities District as required by law relative to the intention of the Mayor and City Council to establish the Community Facilities District and the levy of the special taxes therein to provide certain services, and of the time and place of said public hearing; and WHEREAS, on August 3, 2022, at the time and place specified in said published and mailed notice, the Mayor and City Council opened and held a public hearing as required by law relative to the formation of the Community Facilities District, the levy of the special taxes therein and the provision of services by the Community Facilities District; and WHEREAS, at the public hearing all persons desiring to be heard on all matters pertaining to the formation of the Community Facilities District, the levy of the special taxes and the provision of services therein were heard, and a full and fair hearing was held; and WHEREAS, subsequent to said hearing, the Mayor and City Council adopted resolutions entitled "Resolution of the Mayor and City Council of the City of San Bernardino Establishing Calling An Election for the Purpose of Submitting the Question of the Levy of the Proposed Special Tax to the Qualified Electors of the Proposed Community Facilities District; Authorizing the Levy of Special Taxes; and Establishing the Appropriations Limit for the Proposed Community Facilities District" (the "Resolution of Formation") which resolution established the Community Facilities District, authorized the levy of a special tax within the District, and called an election Packet Pg. 192
Ordinance No. MC-1590
2 within the District on the proposition of levying a special tax, and establishing an appropriations limit within the District; and
WHEREAS, an election was held within the Community Facilities District in which the sole eligible landowner elector approved said propositions by more than the two-thirds vote required by the Act.

THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS:

SECTION 1. Findings. It is necessary that the Mayor and City Council of the City of San Bernardino levy special taxes pursuant to Sections 53340 of the Government Code to provide and finance the costs of certain types of services, and related costs within the Community Facilities District, including (i) the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, and park maintenance, (ii) a reserve fund for capital replacement, and (iii) administrative expenses, all as more completely described in Exhibit "A" to Resolution No. 2019-81, attached hereto and by this reference made a part hereof.

SECTION 2. Levy of Special Taxes. Special taxes shall be and are hereby levied for the Fiscal Year 2022-2023, and each Fiscal Year thereafter, on all parcels of real property within the District which are subject to taxation, which are identified in Exhibit "B" attached hereto. Pursuant to said Section 53340, such special taxes 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.

SECTION 3. Transmittal to County. The City Clerk shall immediately following adoption of this ordinance transmit a copy hereof to the Board of Supervisors and the County Auditor of the County of San Bernardino together with a request that the special taxes as levied hereby be collected on the tax bills for the parcels identified in Exhibit "B" hereto, along with the ordinary ad valorem property taxes to be levied on and collected from the owners of said parcels.

SECTION 4. Authorization to Publish Ordinance. City Clerk of the City of San Bernardino shall certify to the adoption of this Ordinance and cause publication to occur in a newspaper of general circulation and published and circulated in the City in a manner permitted under section 36933 of the Government Code of the State of California.

SECTION 5. Effective Date. This ordinance shall become effective thirty (30) days after its adoption.

APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ____ day of _______, 2022.

John Valdivia, Mayor
City of San Bernardino
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Ordinance No. MC-1590
3 Attest:

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

Sonia Carvalho, City Attorney
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Ordinance No. MC-1590
4 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 Ordinance No. MC-1590, introduced by the Mayor and City Council of the City of San Bernardino, California, at a regular meeting held the 3rd day of August 2022. Ordinance No. MC- ____ was approved, passed and adopted at a regular meeting held the ____ day of ______, 2022 by the following vote:

Genoveva Rocha, CMC, City Clerk
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EXHIBIT A

DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2019-1, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right-of-ways, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and (b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance, servicing; or both of the water quality basin improvements within flood control channel improvements; and (c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2019-1; as well as local roads within residential subdivisions located within CFD No. 2019-1; and any portions adjacent to the properties within CFD No. 2019-1.

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 Exhibit B to this resolution of intention.

The above services shall be limited to those provided within the boundaries of CFD No. 2019-1 or for the benefit of the properties within the boundaries of CFD No. 2019-1, as the boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2019-1 only to the extent that they are in addition to those provided in the territory of CFD No. 2019-1 before CFD No. 2019-1 was created.

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EXHIBIT B
COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) SPECIAL TAX FISCAL YEAR 2022-23
(Effective as of August 17, 2022)

ASSESSOR'S PARCEL NUMBERS
Annexation Owner Assessor's Parcel Numbers
Original Formation Cauffman Family Trust 4/20/98 0142-041-43 Cauffman Family Trust 5/4/11 0142-041-46
1 17329, LLC 0348-111-52, 0261-031-10, -11,
and 0261-062-11 thru -14
2 GWS #4 Development, LLC 0141-431-24
3 Devore Storage Facility, LLC 0266-041-39
4 TH Rancho Palma, LLC 0261-181-16, -17
5 Strata Palma, LLC 0261-182-41
6 San Bernardino Medical Center, LLC 0147-114-01
7 ICO Fund VI, LLC 0281-161-48
8 TR 2600 Cajon Industrial LLC 0148-122-04
9 Central Commerce Center, LLC 0280-151-02 thru -09, -20, -21 10 Lankershim Industrial, LP 1192-311-01
11 Prologis, LP
0137-011-01, -31, 0137-051-27
(Por.), 0137-052-46, 0274-011-11,
-12, -34, -35, -42, -43
12 Dreamland Real Estate Holdings 0281-061-35
13 Magic Laundry Services, Inc. 0141-282-05 and -06
14 Ahmad Family Trust 0136-191-21
15 Gateway SB, LLC
0134-054-02 (Por.), -07 (Por.),
-08(Por.), -09 (Por.), -20 (Por.),
-24, -25, -33
16 RCH-CWI Belmont, LP 0261-712-01 thru -16
17 George A. Pearson 0142-212-18
18 RGC Family Trust 0142-325-04
19 170 East 40th Street, LLC 0154-242-22 and -23
20 108 Highland, LP 0150-221-78
21 To Be Determined
22 1300 E Highland Ave LLC 0150-471-04, -05, -06, -07, -08 23 Vone SB, LLC 0272-161-17 and -18
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This space for filing stamp only
OR#:

O R A N G E C O U N T Y R E P O R T E R
~ SINCE 1921 ~
600 W. Santa Ana Blvd., Suite 205, Santa Ana, California 92701-4542 Telephone (714) 543-2027 / Fax (714) 542-6841

PROOF OF PUBLICATION
(2015.5 C.C.P.)
State of California )
County of Orange ) ss
Notice Type:

Ad Description:

I am a citizen of the United States and a resident of the State of California; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am the principal clerk of the printer and publisher of the ORANGE COUNTY REPORTER, a newspaper published in the English language in the City of Santa Ana, and adjudged a newspaper of general circulation as defined by the laws of the State of California by the Superior Court of the County of Orange, State of California, under date of June 2, 1922, Case No. 13,421. That the notice, of which the annexed is a printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit:

Executed on: 10/10/2004
At Riverside, California
I certify (or declare) under penalty of perjury that the foregoing is true and correct.

Signature

SAN BERNARDINO COUNTY SUN
473 E CARNEGIE DR #200, SAN BERNARDINO, CA 92408
(909) 889-9666 (909) 884-2536
SB 3605076

PERLA LOPEZ

CITY OF SAN BERNARDINO CITY CLERK
290 NORTH D ST.

SAN BERNARDINO, CA - 92401

HRGSB - NOTICE OF HEARING-SB
Notice of PH Annex 18
I am a citizen of the United States and a resident of the State of California; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am the principal clerk of the printer and publisher of the SAN BERNARDINO COUNTY SUN, a newspaper published in the English language in the city of SAN BERNARDINO, county of SAN BERNARDINO, and adjudged a newspaper of general circulation as defined by the laws of the State of California by the Superior Court of the County of SAN BERNARDINO, State of California, under date 06/27/1952, Case No. 73081. That the notice, of which the annexed is a printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit:
07/15/2022
07/15/2022

SAN BERNARDINO
!A000006070238! Email

NOTICE OF PUBLIC HEARING

ON INTENTION TO ANNEX

TERRITORY TO AN EXISTING

COMMUNITY FACILITIES
DISTRICT 2019-1
(MAINTENANCE SERVICES)
(ANNEXATION NO. 18)
NOTICE IS HEREBY GIVEN that
the City Council of the City of San
Bernardino on June 15, 2022 adopted
its Resolution No. 2022-131, in which
it declared its intention to annex
territory to existing Community
Facilities District No. 2019-1
(Maintenance Services) (the "CFD
No. 2019-1"), and to levy a special tax
to pay for certain maintenance
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. 2019-1
is proposed.

NOTICE IS HEREBY FURTHER
GIVEN that the City Council has
fixed 7:00 p.m., or as soon thereafter
as practicable, Wednesday, August
3, 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. 2019-1. 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 August 3, 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, 92418. A
copy of the Agenda will be made
available upon request to the San
Bernardino City Clerk's office at 909-
384-5002.

DATED: July 12th, 2022
Genoveva Rocha
City Clerk of the City of San
Bernardino
PUB: July 15th, 2022
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7/15/22
SBS-3605076#
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Public Hearing
CFD No. 2019-1 Annexation No. 18:

TR 20258 (RGC Family Trust)
Presented by Alex Qishta City Engineer
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Public Hearing on CFD 2019-1 Annexation No. 18
Recommended Action

1. CITY COUNCIL INITIATE ANNEXATION OF TERRITORY TO CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) ("CFD NO. 2019-1" OR "CFD") BY TAKING THE FOLLOWING ACTIONS:

2. UPON APPROVAL OF THE PRECEDING RESOLUTIONS, INTRODUCE AN ORDINANCE AMENDING ORDINANCE NO. MC1522 AND LEVYING AND APPORTIONING THE SPECIAL TAX IN CFD NO. 2019-1 (AS IT NOW EXISTS AND WILL EXIST IN THE FUTURE); AND

3. SCHEDULE THE FINAL READING AND ADOPTION OF THE AMENDED ORDINANCE FOR AUGUST 17, 2022.

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Public Hearing on CFD 2019-1 Annexation No. 18
Discussion
• The Property Owner, RGC Family Trust, has requested the City assist them in annexing territory into CFD No. 2019-1 to cover the costs associated with the maintenance of Public
Improvements.
• The area proposed within Annexation No. 18 includes one parcel APN 0142-325-04.
• On June 15, 2022 the City Council adopted Resolution No. 2022-131, a Resolution of Intention to annex these properties into CFD No. 2019-1 and hold a Public Hearing on August 3, 2022. The property owner consented to waiving certain time restriction and conduct the election the same night.

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Public Hearing on CFD 2019-1 Annexation No. 18
Discussion (Cont.)
• The proposed maximum annual tax of $588 per unit will be included in CFD No. 2019-1 as Tax Zone 19.
• The maximum annual tax is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%.

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Public Hearing on CFD 2019-1 Annexation No. 18
Discussion (Cont.)
• The services, which may be funded with proceeds of the special tax include:
• All costs attributable to Maintenance of median landscaping and other public improvements installed within the public rights-of-way • Public lighting including street lights and traffic signals, • Maintenance of streets, including pavement management, and street sweeping,
• Maintenance and operation of water quality improvements including storm drainage and flood protection facilities
• In addition to the costs of the forgoing services, proceeds of the special tax may be expended to pay administrative expenses and for the collection of reserve funds. Packet Pg. 209
Project Location
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Public Hearing on CFD 2019-1 Annexation No. 18
Fiscal Impact
• It is anticipated that at build-out the total Special Tax revenues to pay for maintenance costs will be
approximately $3,526. All costs associated with the
annexation is borne by the Developer. There is no fiscal impact to the City’s General Fund.

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Questions?
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CFD NO. 2019-1 (MAINTENANCE SERVICES)
ANNEXATION NO. 18

PROJECT MAP
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Public Hearing
City of San Bernardino
Request for Council Action
Date: August 3, 2022
To: Honorable Mayor and City Council Members
From: Robert D. Field, City Manager;
Nathan R. Freeman, Agency Director, Community, Housing, and Economic Development;
Oliver Mujica, Planning Division Manager
Subject: Development Code Amendment 22-03 (Accessory Dwelling Units) (All Wards)
Recommendation
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1) Introduce, read by title only, and waive further reading of Ordinance No. MC1591 of the Mayor and City Council of the City of San Bernardino, California, approving Development Code Amendment 22-03 amending Section

19.04.030(2)(P)(6)(a)(i) (Specific ADU Requirements) of the City of San Bernardino Municipal Code (Title 19) to increase the maximum size of a detached or attached Accessory Dwelling Unit from 1,000 square feet to 1,200 square feet; and finding the Ordinance is exempt under the California Environmental Quality Act (Attachment 1) (Attachment 1); and
2) Schedule the adoption of the above Ordinance for the regularly scheduled meeting of the Mayor and City Council on August 17, 2022.

Background
The State of California has identified an Accessory Dwelling Unit as providing an important housing option to both renters and homeowners. Due to their limited size, Accessory Dwelling Units typically cost less to construct than other types of housing, provide convenient housing for family members, help ease a severe shortage of rental housing in the state, maximize limited land resources, and assist homeowners with supplemental income.

On April 21, 2021, the Mayor and City Council introduced Ordinance No. MC-1559 approving Development Code Amendment 21-01 amending Title 19 (Development Code) of the City of San Bernardino Municipal Code establishing the standards for Accessory Packet Pg. 214
Dwelling Units. The second reading was conducted on May 5, 2021, and the Ordinance became effective on June 5, 2021.

The California Government Code gave local jurisdictions the authority to adopt restrictions regarding the following:
 The maximum unit size of a detached or attached Accessory Dwelling Unit may be limited up to 1,200 square feet. The City adopted a maximum size of up to 1,000 square feet.
 There is no maximum height limitation for a detached or attached Accessory Dwelling Unit. The City adopted a maximum height of one (1) story up to sixteen (16) feet.

Since the adoption of Ordinance No. MC-1559, the Mayor and City Council directed Staff to return with an amendment to increase the maximum allowable size of ADU’s from 1,000 square feet to 1,200 square feet.

On April 12, 2022, the Planning Commission conducted a public hearing on this item, and deliberated on the following:
 In considering the appropriate square footage for the maximum size of a detached and attached ADU, the Planning Commission noted the variety of lot sizes within the City and the varying size of existing single-family residences. In some areas of the City, the size of the properties within the residential neighborhoods may not be sufficient in size to accommodate a detached or attached ADU without impacting the aesthetics of the neighborhood because of the potential for over-building the properties and thus invading the privacy of the neighbors.

After closing the public hearing, Vice Chairperson Armstead made a motion and seconded by Commissioner Quiel to forward a recommendation of denial to the Mayor and City Council regarding Development Code Amendment 22-03, and the motion passed by the following vote:

Ayes: Flores, Lewis, Lopez, Morales, Quiel, Sanchez, Armstead and Guerrero
Nays: None
On May 10, 2022, Resolution No. 2022-019 ratifying the Planning Commission’s decision recommending denial of Development Code Amendment 22-03 was presented to the Planning Commission for their consideration of ratification. During their deliberation, the Planning Commission continued this item to their Regular Meeting on June 14, 2022 and clarified their findings for their recommendation of denial, as follows:

Finding No. 1: The proposed amendment is not consistent with the General Plan.

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The adoption and implementation of Development Code
Amendment 22-03 is not consistent with the City’s General Plan by allowing for the development of Accessory Dwelling Units within the single-family residential and multi-family residential zones in a manner that will not prevent negative impacts to the existing residential neighborhoods and the community at-large. There is a variety of lot sizes within the City and varying sizes of existing single-family residences. In some areas of the City, the size of the properties within the residential neighborhoods may not be sufficient in size to accommodate a detached or attached Accessory Dwelling
Units without impacting the aesthetics of the neighborhood because of the potential for over-building the properties and thus invading the privacy of the neighbors.

Finding No. 2: The proposed amendment would be detrimental to the public interest, health, safety, convenience, or welfare of the City.

The adoption and implementation of Ordinance No. MC-1559 establishing the standards for Accessory Dwelling Units was necessary and desirable for the development of the
community and is in the interests or furtherance of the public health, safety, convenience, and general welfare. In enacting the aforementioned legislation, the State Legislature identified Accessory Dwelling Units has an important housing option for renters and homeowners, given the undersupply of housing that exists in the State. Ordinance No. MC-1559 brought the City’s Development Code into compliance with these
aforementioned statutes. Increasing the maximum size of detached and attached Accessory Dwelling Units will impact the aesthetics of the neighborhood because of the potential for over-building the properties and thus invading the privacy of the neighbors.

On June 14, 2022, Resolution No. 2022-019 recommending denial of Development Code Amendment 22-03 was unanimously ratified by the Planning Commission (Attachment 2).

Given the City Council’s direction to process this Development Code Amendment, staff is presenting this item for approval.

Public Hearing Noticing
July 23, 2022: Legal advertisement was published in the San Bernardino Sun Newspaper (Attachment 3).

Discussion
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Under proposed Development Code Amendment 22-03, Section 19.04.030(2)(P)(6)(a)(i) (Specific ADU Requirements) of the City of San Bernardino Development Code will be amended to read, as follows:
“a. Maximum Size.
i. The maximum size of a detached or attached ADU subject to this subsection (6) is 1,200 850 square feet for a studio or onebedroom unit and 1,000 square feet for a unit with two or more bedrooms.”
General Plan Goals and Policies
The City of San Bernardino General Plan includes goals and policies to guide future Accessory Dwelling Units, as follow:
 Land Use Goal 2.1: Preserve and enhance San Bernardino’s unique Neighborhoods.
 Land Use Element Policy 2.1.1: Actively enforce development standards, design guidelines, and policies to preserve and enhance the character of San Bernardino’s neighborhoods.

San Bernardino contains a wide range of neighborhoods accommodating an assortment of lifestyles: from the urban downtown multiple-family dwellings, to student housing, to new and older suburban enclaves, to hillside and golf course estates, to rural estates.

Each neighborhood has, or can have, its own unique character that is a source of pride for the residents. Neighborhood character is defined by many factors: what the neighborhood looks like, what it feels like, how well it is maintained, etc. But more importantly, it is an image in the minds of those who live and work there and in the perceptions of those who visit. Some neighborhoods in San Bernardino are a source of pride for residents, as reflected by the quality of their homes, the diversity of their residents, the beauty of their streetscapes, and the availability of and access to, open space and recreation opportunities. Other neighborhoods are in need of assistance to help maintain, upgrade, and improve safety and aesthetics. One thing for certain in the vision for San Bernardino is that there is a strong desire to maintain, enhance, and improve the various neighborhoods in the community.

The adoption and implementation of Development Code Amendment 22-03 is consistent with the City’s General Plan by allowing for the development of detached and attached Accessory Dwelling Units within the residential zones in a manner that will prevent negative impacts to the existing residential neighborhoods and the community at-large.

While at the same time, as regulated by Development Code Amendment 22-03, new Accessory Dwelling Units will serve the City’s housing needs in compliance with California Government Code § 65852.2 and § 65852.22.
2020-2025 Key Strategic Targets and Goals
Development Code Amendment 22-03 aligns with Key Target No. 4: Economic Growth and Development, under 4(b): Update the General Plan and Development Code.

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Specifically, the amendment to the Development Code for Accessory Dwelling Units proposed under Development Code Amendment 22-03 will ensure that the City’s Development Code is consistent with State law.

Fiscal Impact
There will be no fiscal impact to the City’s General Fund as a result of this action.

California Environmental Quality Act
The Planning Division conducted an environmental evaluation in connection with proposed Development Code Amendment 22-03 and concluded that it is exempt from CEQA under Public Resources Code Section 21080.17 and California Code of Regulations, Title 14, Chapter 3, Section 15282(h). Moreover, this Ordinance is exempt from further environmental review under CEQA pursuant to Title 14 of the California Code of Regulations Section 15060(c)(1), as it implements provisions of Government Code Sections 65852.2 and 65852.22, which require ministerial review and approval of accessory dwelling units and junior accessory dwelling units, and, therefore, does not involve the exercise of discretionary powers by the City.

Conclusion
It is recommended that the Mayor and City Council:
1) Introduce, read by title only, and waive further reading of Ordinance No. MC-1591 of the Mayor and City Council of the City of San Bernardino, California, approving Development Code Amendment 22-03 amending Section 19.04.030(2)(P)(6)(a)(i) (Specific ADU Requirements) of the City of San Bernardino Municipal Code (Title 19) to increase the maximum size of a detached or attached Accessory Dwelling Unit from 1,000 square feet to 1,200 square feet; and finding the Ordinance is exempt under the California Environmental Quality Act (Attachment 1) (Attachment 1); and
2) Schedule the adoption of the above Ordinance for the regularly scheduled meeting of the Mayor and City Council on August 17, 2022.

Attachments
Attachment 1 Ordinance No. MC-1591 (Accessory Dwelling Units) Attachment 2 Planning Commission Resolution No. 22-019
Attachment 3 Proof of Publication – Public Hearing Notice Ward: All Wards
Synopsis of Previous Council Actions:

April 21, 2021 Mayor and City Council introduced Ordinance No. MC-1559 approving Development Code Amendment 21-01
May 5, 2021 Mayor and City Council conducted the second reading.

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ORDINANCE NO. MC-1591
1 ORDINANCE NO. MC-1591

ORDINANCE OF THE MAYOR AND CITY COUNCIL OF

THE CITY OF SAN BERNARDINO, CALIFORNIA,
APPROVING DEVELOPMENT CODE AMENDMENT 22-03
AMENDING SECTION 19.04.030(2)(P)(6)(a)(i) (SPECIFIC

ADU REQUIREMENTS) OF THE CITY OF SAN
BERNARDINO MUNICIPAL CODE (TITLE 19) TO

INCREASE THE MAXIMUM SIZE OF A DETACHED AND
ATTACHED ACCESSORY DWELLING UNIT FROM 1,000
SQUARE FEET TO 1,200 SQUARE FEETS; AND FINDING

THE ORDINANCE IS EXEMPT UNDER THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT.

WHEREAS, on September 27, 2016, the Governor signed Assembly Bill 2299 and Senate Bill 1069 amending Government Code §65852.2 as it pertained to the development of Accessory Dwelling Units (ADUs); and
WHEREAS, on January 1, 2017, amended Government Code §65852.2 came into effect nullifying Section 19.04.030(2)(P) of the City of San Bernardino Development Code regarding Accessory Dwelling Units; and
WHEREAS, on October 8, 2017, the Governor signed Assembly Bill 494 and Senate Bill 229 further amending Government Code §65852.2 as it pertained to the development of Accessory Dwelling Units (ADUs); and
WHEREAS, on October 9, 2019, the Governor signed Assembly Bill 494 and Senate Bill 229 further amending Government Code §65852.2 and §65852.22 as they pertained to the development of Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs); and
WHEREAS, on September 28, 2020, the Governor signed Assembly Bill 3182 further amending Government Code §65852.2 and §65852.22 as they pertained to the development of Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs); and WHEREAS, on January 1, 2021, amended Government Code §65852.2 and §65852.22 came into effect; and
WHEREAS, on April 21, 2021, the Mayor and City Council introduced Ordinance No.

MC-1559 approving Development Code Amendment 21-01 amending Title 19 (Development Code) of the City of San Bernardino Municipal Code establishing the standards for Accessory Dwelling Units. The second reading was conducted on May 5, 2021, and the Ordinance became effective on June 5, 2021; and
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ORDINANCE NO. MC-1591
2 WHEREAS, the California Government Code gave local jurisdictions the authority to adopt restrictions regarding the following:
 The maximum unit size of a detached or attached Accessory Dwelling Unit may be limited up to 1,200 square feet. The City adopted a maximum size of up to 1,000 square feet.
 There is no maximum height limitation for a detached or attached Accessory Dwelling Unit. The City adopted a maximum height of one (1) story up to sixteen (16) feet; and
WHEREAS, since the adoption of Ordinance No. MC-1559, the Mayor and City Council directed Staff to return with an amendment to increase the maximum allowable size of ADU’s from 1,000 square feet to 1,200 square feet; and
WHEREAS, Development Code Amendment 22-03 is a City-initiated amendment to Section 19.04.030(2)(P)(6)(a) (Specific ADU Requirements) of the City of San Bernardino Municipal Code (Title 19) to increase the maximum size of a detached or attached Accessory Dwelling Unit from 1,000 square feet to 1,200 square feet; and WHEREAS, the Planning Division of the Community and Economic Development Department of the City of San Bernardino has prepared Development Code Amendment 22-03 consistent with the City of San Bernardino General Plan and compliance with the City of San Bernardino Development Code; and
WHEREAS, pursuant to requirements of the California Environmental Quality Act (“CEQA”), the Planning Division of the Community and Economic Development Department evaluated Development Code Amendment 22-03 and determined that it is exempt from CEQA under Public Resources Code Section 21080.17 and California Code of Regulations, Title 14, Chapter 3, Section 15282(h), and is exempt from further environmental review under CEQA pursuant to Title 14 of the California Code of Regulations Section 15060(c)(1), as it implements provisions of Government Code Sections 65852.2 and 65852.22, which require ministerial review and approval of accessory dwelling units and junior accessory dwelling units, and, therefore, does not involve the exercise of discretionary powers by the City; and WHEREAS, on April 12, 2022, the Planning Commission conducted a public hearing on Development Code Amendment 22-03, and deliberated on the following:
 In considering the appropriate square footage for the maximum size of a detached and attached ADU, the Planning Commission noted the variety of lot sizes within the City and the varying size of existing single-family residences. In some areas of the City, the size of the properties within the residential neighborhoods may not be sufficient in size to accommodate a detached or attached ADU without impacting the aesthetics of the neighborhood because of the potential for over-building the properties and thus invading the privacy of the neighbors.

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3 WHEREAS, after closing the public hearing, Vice Chairperson Armstead made a motion and seconded by Commissioner Quiel to forward a recommendation of denial to the Mayor and City Council regarding Development Code Amendment 22-03, and the motion passed by the following vote:

Ayes: Flores, Lewis, Lopez, Morales, Quiel, Sanchez, Armstead and Guerrero Nays: None
WHEREAS, on May 10, 2022, Resolution No. 2022-019 ratifying the Planning Commission’s decision recommending denial of Development Code Amendment 22-03 was presented to the Planning Commission for their consideration of ratification. During their deliberation, the Planning Commission continued this item to their Regular Meeting on June 14, 2022 and clarified their findings for their recommendation of denial, as follows:

Finding No. 1: The proposed amendment is not consistent with the General Plan.

The adoption and implementation of Development Code Amendment 22-03 is not consistent with the City’s General Plan by allowing for the development of Accessory Dwelling Units within the single-family residential and multi-family residential zones in a manner that will not prevent negative impacts to the existing residential neighborhoods and the community at-large. There is a variety of lot sizes within the City and varying sizes of existing single-family residences. In some areas of the City, the size of the properties within the residential neighborhoods may not be sufficient in size to accommodate a detached or attached Accessory Dwelling Units without impacting the aesthetics of the neighborhood because of the potential for over-building the properties and thus invading the privacy of the neighbors.

Finding No. 2: The proposed amendment would be detrimental to the public interest, health, safety, convenience, or welfare of the City.

The adoption and implementation of Ordinance No. MC-1559 establishing the standards for Accessory Dwelling Units was necessary and desirable for the development of the community and is in the interests or furtherance of the public health, safety, convenience, and general welfare. In enacting the aforementioned legislation, the State Legislature identified Accessory Dwelling Units has an important housing option for renters and homeowners, given the undersupply of housing that exists in the State. Ordinance No. MC-1559 brought the City’s Development Code into compliance with these aforementioned statutes. Increasing the maximum size of detached and attached Accessory Dwelling Units will impact the aesthetics of the neighborhood because of the potential for over-building the properties and thus invading the privacy of the neighbors.

WHEREAS, on June 14, 2022, Resolution No. 2022-019 recommending denial of Development Code Amendment 22-03 was unanimously ratified by the Planning Commission; and Packet Pg. 221
ORDINANCE NO. MC-1591
4 WHEREAS, notice of the August 3, 2022 public hearing for the Mayor and City Council's consideration of this proposed Ordinance was published in The Sun newspaper on July 23, 2022 in accordance with Development Code Chapter 19.52; and
WHEREAS, pursuant to the requirements of Chapters 19.52 (Hearing and Appeals) and Chapter 19.42 (Development Code Amendments) of the City of San Bernardino Development Code, the Mayor and City Council have the authority to take action on Ordinance No. MC-____.

NOW THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, DO ORDAIN AS FOLLOWS:

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

SECTION 2. Compliance with the California Environmental Quality Act. As the decision-making body for the project, the Mayor and City Council has reviewed and considered the information contained in the administrative record for Development Code Amendment 22-03.

Moreover, this Ordinance is exempt from further environmental review under CEQA pursuant to Title 14 of the California Code of Regulations Section 15060(c)(1), as it implements provisions of Government Code Sections 65852.2 and 65852.22, which require ministerial review and approval of accessory dwelling units and junior accessory dwelling units, and, therefore, does not involve the exercise of discretionary powers by the City; and
(3) The determination of CEQA exemption reflects the independent judgment of the Mayor and City Council.

SECTION 3. FINDINGS FOR DEVELOPMENT CODE AMENDMENT 22-03:

Section 19.42.050 (Findings) of the City of San Bernardino Development Code requires that Development Code Amendments meet certain finding prior to approval by the Mayor and City Council. Accordingly, the following findings are provided in support of the approval of Development Code Amendment 22-03:

Finding No. 1: The proposed amendment is consistent with the General Plan.

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ORDINANCE NO. MC-1591
5 Finding of Fact: Development Code Amendment 22-03 is consistent with the General Plan, as follows:
 Land Use Goal 2.1: Preserve and enhance San Bernardino’s unique Neighborhoods.
 Land Use Element Policy 2.1.1: Actively enforce
development standards, design guidelines, and policies to preserve and enhance the character of San Bernardino’s
neighborhoods.

Neighborhood character is defined by many factors: what the neighborhood looks like, what it feels like, how well it is maintained, etc. But more importantly, it is an image in the minds of those who live and work there and in the perceptions of those who visit. Some neighborhoods in San Bernardino are a source of pride for residents, as reflected by the quality of their homes, the diversity of their residents, the beauty of their streetscapes, and the availability of and access to, open space and recreation opportunities. Other neighborhoods are in need of assistance to help maintain, upgrade, and improve safety and aesthetics. One thing for certain in the vision for San Bernardino is that there is a strong desire to maintain, enhance, and improve the various neighborhoods in the community.

The adoption and implementation of Development Code Amendment 22- 03 is consistent with the City’s General Plan by allowing for the development of Accessory Dwelling Units within the single-family residential and multi-family residential zones in a manner that will prevent negative impacts to the existing residential neighborhoods and the community at-large. While at the same time, as regulated by Development Code Amendment 22-03, new Accessory Dwelling Units will serve the City’s housing needs in compliance with California Government Code §65852.2 and §65852.22.

Finding No. 2: The proposed amendment would not be detrimental to the public interest, health, safety, convenience, or welfare of the City.

Finding of Fact: The adoption and implementation of Development Code Amendment 22- 03 is necessary and desirable for the development of the community and is in the interests or furtherance of the public health, safety, convenience, and general welfare. In enacting the aforementioned legislation the State Legislature identified Accessory Dwelling Units (ADU) has an important housing option for renters and homeowners, given the undersupply of Packet Pg. 223
ORDINANCE NO. MC-1591
6 housing that exists in the State. Development Code Amendment 22-03 will bring the City’s Development Code into compliance with these aforementioned statutes.

SECTION 4. Section 19.04.030(2)(P)(6)(a)(i) (Specific ADU Requirements) of the City of San Bernardino Municipal Code (Title 19) is hereby amended to read as follows:
“a. Maximum Size.
i. The maximum size of a detached or attached ADU subject to this subsection (6) is 1,200 square feet.”
SECTION 5. Notice of Exemption: The Planning Division of the Community and Economic Development Department is hereby directed to file a Notice of Exemption with the County Clerk of the County of San Bernardino within five (5) working days of final project approval certifying the City’s compliance with the California Environmental Quality Act in approving the Project.

SECTION 6. Severability: If any section, subsection, subdivision, sentence, or clause or phrase in this Ordinance or any part thereof is for any reason held to be unconstitutional, invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have adopted each section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective.

SECTION 7. Effective Date. This Ordinance shall become effective thirty (30) days after the date of its adoption.

SECTION 8. Notice of Adoption. The City Clerk of the City of San Bernardino shall certify to the adoption of this Ordinance and cause publication to occur in a newspaper of general circulation and published and circulated in the City in a manner permitted under Section 36933 of the Government Code of the State of California.

APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of _________, 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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7 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 Ordinance No. MC-1591, introduced by the City Council of the City of San Bernardino, California, at a regular meeting held on the 3rd day of August, 2022, and adopted by the City Council of the City of San Bernardino, California, at a regular meeting held on the ___ day of _________, 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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CALIFORNIA NEWSPAPER SERVICE BUREAU
SBS#

D A I L Y J O U R N A L C O R P O R A T I O N
To the right is a copy of the notice you sent to us for publication in the SAN BERNARDINO COUNTY SUN. Please read this notice carefully and call us with any corrections. The Proof of Publication will be filed with the County Clerk, if required, and mailed to you after the last date below. Publication date(s) for this notice is (are):

Mailing Address : 915 E FIRST ST, LOS ANGELES, CA 90012 Telephone (800) 788-7840 / Fax (800) 464-2839
Visit us @ www.LegalAdstore.com

JESSICA NAMETZ

SAN BERNARDINO CITY DEV SERVICE
300 NORTH D ST #300
SAN BERNARDINO, CA 92418

HRGSB NOTICE OF HEARING-SB
NOTICE OF PUBLIC HEARING Wednesday, August 3, 2022
07/23/2022
Notice Type:

Ad Description

COPY OF NOTICE
3607667
!A000006072105!
The charge(s) for this order is as follows. An invoice will be sent after the last date of publication. If you prepaid this order in full, you will not receive an invoice.

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NOTICE OF PUBLIC HEARING
Notice is hereby given that the City of San Bernardino Mayor and City Council will hold a public hearing on Wednesday, August 3, 2022 at 7:00 p.m. in the Feldheym Public Library, Bing Wong Auditorium, 555 W. 6th Street, San Bernardino, California 92410, on the following item(s):

DEVELOPMENT CODE AMENDMENT 22-03 – A City-initiated amendment to Section 19.04.030(2) (P)(6)(a)(i) of the City of San Bernardino Municipal Code (Title 19) to increase the maximum size of a detached Accessory Dwelling Unit from 1,000 square feet to 1,200 square feet.

Environmental Determination: Statutorily Exempt under the California Environmental Quality Act (“CEQA”), pursuant to Section 15282(h) (Other Statutory Exemptions) of the State CEQA Guidelines.

Applicant: City of San Bernardino – Community and Economic Development Department DEVELOPMENT CODE AMENDMENT 22-04 - A City-initiated amendment to Section 19.06.030(2) (B) Article II Section III(A) (Alcohol Beverage Sales – Locational Restrictions) and Section

19.06.030(2)(B) Article II Section VI(D)-(E) (Alcohol Beverage Sales – Permit Application) of the City of San Bernardino Municipal Code (Title 19) to increase the locational restriction from 500 feet to 1,000 feet for a new alcoholic beverage sales activity from a sensitive land uses.

Environmental Determination: Statutory Exemption, pursuant to Section 15061(b)(3) (Review for Exemption) of the State CEQA Guidelines.

Applicant: City of San Bernardino – Community and Economic Development Department The Mayor and City Council of the City of San Bernardino welcomes your participation in evaluating these items. The Mayor and City Council will review the proposal and will consider the proposed environmental determination in making its decisions. The public is welcome to speak at the public hearing or to submit written comments prior to the hearing. For more information, please contact the City Clerk’s Office by phone at (909) 384-5002.

If you challenge the resultant action of the Mayor and City Council in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Planning Division at, or prior to, the public hearing.

Submitted: July 19, 2022
Publish: July 23, 2022 (Display Ad)
CNSB 3607667
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PUBLIC HEARING
City of San Bernardino
Request for Council Action
Date: August 3, 2022
To: Honorable Mayor and City Council Members
From: Robert D. Field, City Manager;
Nathan Freeman, Agency Director of Community, Housing, and Economic Development
Department: Community & Economic Development (CED)
Subject: Development Code Amendment 22-04 (Alcoholic Beverage Sales Locational Restrictions) (All Wards)
Recommendation
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1) Introduce, read by title only, and waive further reading of Ordinance No. MC1592 of the Mayor and City Council of the City of San Bernardino, California, approving Development Code Amendment 22-04 amending Section

19.06.030(2)(B) Article II Section III(A)-(I) (Alcohol Beverage Sales – Locational Restrictions) and Section 19.06.030(2)(B) Article II Section VI(D)-(E) (Alcohol Beverage Sales – Permit Application) of the City of San Bernardino Municipal Code (Title 19) to increase the locational restriction from 500 feet to 1,000 feet for new alcoholic beverage sales activities from sensitive land uses; and finding the Ordinance is exempt under the California Environmental Quality Act (Attachment 1); and
2) Schedule the adoption of the above Ordinance for the regularly scheduled meeting of the Mayor and City Council on August 17, 2022.

Background
An application for a convenience store with an Alcoholic Beverage Control (ABC) offsale license requires the approval of a Conditional Use Permit by the Planning Commission. Additionally, the California Department of Alcoholic Beverage Control (ABC) has established license concentration standards allowing for a maximum of ABC Packet Pg. 235
off-sale licenses within the census tracts. If a new ABC off-sale license will cause the subject census tract to become over concentrated with ABC off-sale licenses, the Conditional Use Permit also requires a Public Convenience or Necessity Letter application for consideration by the Planning Commission.

The Police Department reviews all Conditional Use Permit ABC off-sale license applications and conducts an investigation based upon the information provided to report alcohol related and other crimes that have been reported during the previous calendar year within half-mile of the subject reporting district. The Police Department also provides appropriate recommended Conditions of Approval to ensure that the sale of alcohol will not be detrimental to the surrounding area.

With the continued increase in the number of convenience store applications there has also been an increase in the number of requested ABC Type-20 (Off-Sale: Beer and Wine) and ABC Type-21 (Off-Sale: General – Beer, Wine and Distilled Spirits) Licenses. There has also been an increase in the number of census tracts with over concentrations. The over concentration of ABC off-sale licenses creates the potential for impairing the integrity and character of commercial corridors and may be detrimental to sensitive land uses within the vicinity, such as schools, parks and places of worship.

On April 12, 2022, the Planning Commission unanimously adopted Resolution No. 2022-020 forwarding a recommendation to the Mayor and City Council recommending approval of Development Code Amendment 22-04 (Attachment 2).

Public Hearing Noticing
July 23, 2022: Legal advertisement was published in the San Bernardino Sun Newspaper (Attachment 3).

Discussion
Under proposed Development Code Amendment 22-04, Section 19.06.030(2)(B) Article II Section III(A)-(I) (Alcohol Beverage Sales – Locational Restrictions) of the City of San Bernardino Development Code will be amended to read, as follows:
“(A) Unless otherwise exempted under subsections B – H, a new alcoholic beverage sales activity is not permitted within 1,000 500 feet of any of the following locations:

1. A public or private state licensed or accredited school.

2. A public park, playground, recreational area, or youth facility, including a nursery school, preschool, or day-care facility.

3. A place of worship or religious institution.

4. A hospital.

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5. An alcohol or other drug abuse recovery or treatment facility.

6. A county social service office.
(B) Establishments containing 10,000 square feet or more, including but not limited to supermarkets and drugstores, which do not sell alcoholic beverages as the principal business are exempt from the locational restrictions.
(C) Sit down restaurants whose predominant function is the service of food and where the on-site sale of alcoholic beverages is incidental or secondary are exempt from these locational restrictions. An incidental bar or lounge shall be allowed for the convenience of dining patrons. (Establishments which are primarily a bar or lounge or have a bar or lounge area as a principal or independent activity are not included in this exemption.)
(D) All other establishments for on-site consumption of alcohol may be exempted from the locational restrictions, subject to evaluation of site-specific conditions through the Conditional Use Permit review process and considering recommendations from the Police Department.
(E) Specialty retail establishments that offer unique product lines or variety of selection warranting a finding of public convenience or necessity are exempt from the locational restrictions.
(F) An automobile service station convenience store that meets the location criteria of Section 19.06.030(2)(T) may be exempted from these locational restrictions, subject to evaluation of site-specific conditions through the Conditional Use Permit review process and considering recommendations from the Police Department. (G) A fraternal organization or veterans club may be exempted from the locational restrictions, subject to evaluation of site-specific conditions through the Conditional Use Permit review process and considering recommendations from the Police Department.
(H) Temporary uses issued a Temporary License by the California Department of Alcoholic Beverage Control and established in compliance with all City laws and regulations are exempt from the locational restrictions.
(I) The following location conditions will be considered in the review of Conditional Use Permit applications, and may be grounds for denial Packet Pg. 237
based on potential adverse effects to the public interest, health, safety or convenience:
a. A location within a crime reporting district, or within 1,000 500 feet of a crime reporting district, where the general crime rate exceeds the city-wide general crime rate by more than 20 percent.
b. A location where the new alcoholic beverage sales activity would be within 1,000 500 feet from an existing alcoholic beverage sales activity, or would lead to the grouping of more than four alcoholic beverage sales activities within a 1,000 foot radius from the new alcoholic beverage sales activity.” Under proposed Development Code Amendment 22-04, Section 19.06.030(2)(B) Article II Section VI(D)-(E) (Alcohol Beverage Sales – Permit Application) of the City of San Bernardino Development Code will also be amended to read, as follows:
“(D) The name, address, and telephone number, if available, of all existing schools, parks, playgrounds or recreational areas, nonprofit youth facilities, places of worship, hospitals, alcohol or other drug abuse recovery or treatment facilities or county social service offices within 1,000 500 feet of the proposed alcoholic beverage sales activity establishment.
(E) The name, address, and telephone number, if available, of all alcoholic beverage sale activities within 1,000 500 feet of the proposed alcoholic beverage sales activity establishment and within a 1,000 foot radius from the proposed alcoholic
beverage sales activity establishment.”
General Plan Goals and Policies
The City of San Bernardino General Plan includes goals and policies to guide future Accessory Dwelling Units, as follow:
 Land Use Goal 2.1: Preserve and enhance San Bernardino’s unique Neighborhoods.
 Land Use Element Policy 2.1.1: Actively enforce development standards, design guidelines, and policies to preserve and enhance the character of San Bernardino’s neighborhoods.
 Land Use Element Policy 2.2.8: Control the location and number of community-sensitive uses, such as alcohol sales, adult bookstores and businesses, game arcades, and similar uses based on proximity to residences, schools, religious facilities, and parks.

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 Land Use Element Policy 2.2.9: Require Police Department review of uses that may be characterized by high levels of noise, nighttime patronage, and/or rates of crime; providing for the conditioning or control of use to prevent adverse impacts on adjacent residences, schools, religious facilities, and similar “sensitive” uses.

The adoption and implementation of Development Code Amendment 22-04 is consistent with the City’s General Plan by regulating the location of alcoholic beverage sales activities in order to prevent potential negative impacts to the existing sensitive land uses and the community at-large and by minimizing the overconcentration of alcoholic beverage sales activities. The Police Department will continue to review applications for new alcoholic beverage sales to investigate crimes within a half-mile of the respective reporting district.
2021-2025 Key Strategic Targets and Goals
Development Code Amendment 22-04 aligns with Key Target No. 4: Economic Growth and Development, under No. 4(b): Update the General Plan and Development Code.

Specifically, the amendment to the Development Code for location regulations of alcoholic beverage sales activities proposed under Development Code Amendment 22-04 will preserve the integrity of commercial corridors, residential neighborhoods and sensitive land uses within the City.

Fiscal Impact
There will be no fiscal impact to the City’s General Fund as a result of this action.

California Environmental Quality Act
The Planning Division conducted an environmental evaluation in connection with proposed Development Code Amendment 22-04 and concluded that it is exempt from CEQA under Section 15061(b)(3) (Review for Exemption) of the CEQA Guidelines due to the fact that the proposed Development Code Amendment will not create significant effects on the environment as it increases the locational restriction from 500 feet to 1,000 feet for a new alcoholic beverage sales activity from sensitive land uses.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1) Introduce, read by title only, and waive further reading of Ordinance No. MC1592 of the Mayor and City Council of the City of San Bernardino, California, approving Development Code Amendment 22-04 amending Section

19.06.030(2)(B) Article II Section III(A)-(I) (Alcohol Beverage Sales – Locational Restrictions) and Section 19.06.030(2)(B) Article II Section VI(D)-(E) (Alcohol Beverage Sales – Permit Application) of the City of San Bernardino Municipal Code (Title 19) to increase the locational restriction from 500 feet to 1,000 feet for new alcoholic beverage sales activities from sensitive land uses; and finding the Packet Pg. 239
Ordinance is exempt under the California Environmental Quality Act (Attachment 1); and
2) Schedule the adoption of the above Ordinance for the regularly scheduled meeting of the Mayor and City Council on August 17, 2022.

Attachments
Attachment 1 Ordinance No. MC-1592 (Alcoholic Beverage Sales Locational Restrictions)
Attachment 2 Planning Commission Resolution No. 22-020
Attachment 3 Proof of Publication – Public Hearing Notice Ward: All
Synopsis of Previous Council Actions: None
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ORDINANCE NO. MC-1592
1 ORDINANCE NO. MC-1592

ORDINANCE OF THE MAYOR AND CITY COUNCIL OF

THE CITY OF SAN BERNARDINO, CALIFORNIA,
APPROVING DEVELOPMENT CODE AMENDMENT 22-04
AMENDING SECTION 19.06.030(2)(B) ARTICLE II
SECTION III(A)-(I) (ALCOHOL BEVERAGE SALES –

LOCATIONAL RESTRICTIONS) AND SECTION

19.06.030(2)(B) ARTICLE II SECTION VI(D)-(E) (ALCOHOL
BEVERAGE SALES – PERMIT APPLICATION) OF THE

CITY OF SAN BERNARDINO MUNICIPAL CODE (TITLE
19) TO INCREASE THE LOCATIONAL RESTRICTION
FROM 500 FEET TO 1,000 FEET FOR NEW ALCOHOLIC

BEVERAGE SALES ACTIVITIES FROM SENSITIVE LAND
USES; AND FINDING THE ORDINANCE IS EXEMPT

UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY
ACT.

WHEREAS, the last comprehensive update to the City's Development Code (Title 19) was adopted in May 1991; and
WHEREAS, an application for a new convenience store with an Alcoholic Beverage Control (ABC) off-sale license requires the approval of a Conditional Use Permit by the Planning Commission. Additionally, the California Department of Alcoholic Beverage Control (ABC) has established license concentration standards allowing for a maximum of ABC off-sale licenses within the census tracts. If a new ABC off-sale license will cause the subject census tract to become over concentrated with ABC off-sale licenses, the Conditional Use Permit also requires a Public Convenience or Necessity Letter application for consideration by the Planning Commission; and WHEREAS, with the continued increase in the number of convenience store applications there has also been an increase in the number of requested ABC Type-20 (Off-Sale: Beer and Wine) and ABC Type-21 (Off-Sale: General – Beer, Wine and Distilled Spirits) Licenses. There has also been an increase in the number of census tracts with over concentrations. The over concentration of ABC off-sale licenses creates the potential for impairing the integrity and character of the commercial corridors and may be detrimental to sensitive land uses within the vicinity, such as schools, parks and places of worship; and WHEREAS, Development Code Amendment 22-04 is a City-initiated amendment to Section 19.06.030(2)(B) Article II Section III(A) (Alcohol Beverage Sales – Locational Restrictions) and Section 19.06.030(2)(B) Article II Section VI(D)-(E) (Alcohol Beverage Sales – Permit Application) of the City of San Bernardino Municipal Code (Title 19) to increase the locational restriction from 500 feet to 1,000 feet for new alcoholic beverage sales activities from sensitive land uses; and
WHEREAS, the Planning Division of the Community and Economic Development Department of the City of San Bernardino has prepared Development Code Amendment 22-04 consistent with the City of San Bernardino General Plan and compliance with the City of San Bernardino Development Code; and
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2 WHEREAS, pursuant to requirements of the California Environmental Quality Act (“CEQA”), the Planning Division of the Community and Economic Development Department evaluated Development Code Amendment 22-04 and determined that it is not a project within the meaning of State CEQA Guidelines Section 15378, and alternatively is exempt from CEQA under Section 15061(b)(3) (Review for Exemption) of the CEQA Guidelines; and WHEREAS, on April 12, 2022, the Planning Commission of the City of San Bernardino held a duly noticed public hearing to consider public testimony and the staff report, and adopted Resolution 2022-030 forwarding a recommendation of approval of Development Code Amendment 22-04 to the Mayor and City Council; and
WHEREAS, notice of the August 3, 2022 public hearing for the Mayor and City Council's consideration of this proposed Ordinance was published in The Sun newspaper on July 23, 2022 in accordance with Development Code Chapter 19.52; and
WHEREAS, pursuant to the requirements of Chapters 19.52 (Hearing and Appeals) and Chapter 19.42 (Development Code Amendments) of the City of San Bernardino Development Code, the Mayor and City Council have the authority to take action on Ordinance No. MC-____.

NOW THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, DO ORDAIN AS FOLLOWS:

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

Based upon the facts and information contained in the administrative record, including all written and oral evidence presented to the Mayor and City Council, the Mayor and City Council hereby finds, as follows:
(1) The administrative record has been completed in compliance with the California Environmental Quality Act (“CEQA”), the State CEQA Guidelines, and the City’s Local CEQA Guidelines;
(2) Development Code Amendment 22-04 is not a project within the meaning of Section 15378 of the State CEQA Guidelines, because it has no potential for resulting in physical change in the environment, directly or indirectly. Development Code Amendment 22-04 does not authorize any specific development within the City’s boundaries. Development Code Amendment 22-04 is exempt from CEQA because the adoption of the Development Code Amendment is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment (State CEQA Guidelines, Section 15061(b)(3)). The Development Code Amendment to increase of the locational restriction from 500 feet to 1,000 feet for a new alcoholic beverage sales activity from sensitive land uses is exempt from the requirements of CEQA under Section 15061(b)(3) (Review for Exemption) of the CEQA Guidelines due to the fact that the Development Code Amendment will not create significant Packet Pg. 242
ORDINANCE NO. MC-1592
3 effects on the environment as it consists of updates to the alcoholic beverage sales requirements; and
(3) The determination of CEQA exemption reflects the independent judgment of the Mayor and City Council.

SECTION 3. FINDINGS FOR DEVELOPMENT CODE AMENDMENT 22-04:

Section 19.42.050 (Findings) of the City of San Bernardino Development Code requires that Development Code Amendments meet certain findings prior to approval by the Mayor and City Council. Accordingly, the following findings are provided in support of the approval of Development Code Amendment 22-04:

Finding No. 1: The proposed amendment is consistent with the General Plan.

Finding of Fact: Development Code Amendment 22-04 is consistent with the General Plan, as follows:
 Land Use Goal 2.1: Preserve and enhance San Bernardino’s unique Neighborhoods.
 Land Use Element Policy 2.1.1: Actively enforce
development standards, design guidelines, and policies to preserve and enhance the character of San Bernardino’s
neighborhoods.
 Land Use Element Policy 2.2.8: Control the location and number of community-sensitive uses, such as alcohol sales, adult bookstores and businesses, game arcades, and similar uses based on proximity to residences, schools, religious facilities, and parks.
 Land Use Element Policy 2.2.9: Require Police Department review of uses that may be characterized by high levels of noise, nighttime patronage, and/or rates of crime; providing for the conditioning or control of use to prevent adverse impacts on adjacent residences, schools, religious facilities, and similar “sensitive” uses.

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ORDINANCE NO. MC-1592
4 alcoholic beverage sales to investigate crimes within a half-mile of the respective reporting district.

Finding No. 2: The proposed amendment would not be detrimental to the public interest, health, safety, convenience, or welfare of the City.

Finding of Fact: The adoption and implementation of Development Code Amendment 22- 04 is necessary and desirable for the development of the community and is in the interests or furtherance of the public health, safety, convenience, and general welfare. Location regulations of alcoholic beverage sales activities proposed under Development Code Amendment 22-04 will preserve the integrity of the commercial corridors, residential neighborhoods and sensitive land uses within the City.

SECTION 4. Section 19.06.030(2)(B) Article II Section III(A)-(I) (Alcohol Beverage Sales – Locational Restrictions) of the City of San Bernardino Municipal Code (Title 19) is hereby amended, in its entirety, to read as follows:
“
(A)Unless otherwise exempted under subsections B – H, a new alcoholic beverage sales activity is not permitted within 1,000 feet of any of the following locations:

1. A public or private state licensed or accredited school.

2. A public park, playground, recreational area, or youth facility, including a nursery school, preschool, or day-care facility.

3. A place of worship or religious institution.

4. A hospital.

5. An alcohol or other drug abuse recovery or treatment facility.

1. A location within a crime reporting district, or within 1,000 feet of a crime reporting district, where the general crime rate exceeds the city-wide general crime rate by more than 20 percent.

2. A location where the new alcoholic beverage sales activity would be within 1,000 feet from an existing alcoholic beverage sales activity, or would lead to the grouping of more than four alcoholic beverage sales activities within a 1,000 foot radius from the new alcoholic beverage sales activity.”
SECTION 5. Section 19.06.030(2)(B) Article II Section VI(D)-(E) (Alcohol Beverage Sales – Permit Application) of the City of San Bernardino Municipal Code (Title 19) is hereby amended, in its entirety, to read as follows:
“
(D)The name, address, and telephone number, if available, of all existing schools, parks, playgrounds or recreational areas, nonprofit youth facilities, places of worship, hospitals, alcohol or other drug abuse recovery or treatment facilities or county social service offices within 1,000 feet of the proposed alcoholic beverage sales activity establishment.

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ORDINANCE NO. MC-1592
6 (E) The name, address, and telephone number, if available, of all alcoholic beverage sale activities within 1,000 feet of the proposed alcoholic beverage sales activity establishment and within a 1000 foot radius from the proposed alcoholic beverage sales activity establishment.”
SECTION 6. Notice of Exemption: The Planning Division of the Community and Economic Development Department is hereby directed to file a Notice of Exemption with the County Clerk of the County of San Bernardino within five (5) working days of final project approval certifying the City’s compliance with the California Environmental Quality Act in approving the Project.

SECTION 7. Severability: If any section, subsection, subdivision, sentence, or clause or phrase in this Ordinance or any part thereof is for any reason held to be unconstitutional, invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have adopted each section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective.

SECTION 8. Effective Date. This Ordinance shall become effective thirty (30) days after the date of its adoption.

SECTION 9. Notice of Adoption. The City Clerk of the City of San Bernardino shall certify to the adoption of this Ordinance and cause publication to occur in a newspaper of general circulation and published and circulated in the City in a manner permitted under Section 36933 of the Government Code of the State of California.

APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of _________, 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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ORDINANCE NO. MC-1592
7 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 Ordinance No. MC-1592, introduced by the City Council of the City of San Bernardino, California at a regular meeting held on the 3rd day of August, 2022, and adopted by the City Council of the City of San Bernardino, California, at a regular meeting held on the ___ day of _________, 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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CALIFORNIA NEWSPAPER SERVICE BUREAU
SBS#

Mailing Address : 915 E FIRST ST, LOS ANGELES, CA 90012 Telephone (800) 788-7840 / Fax (800) 464-2839
Visit us @ www.LegalAdstore.com

JESSICA NAMETZ

SAN BERNARDINO CITY DEV SERVICE
300 NORTH D ST #300
SAN BERNARDINO, CA 92418

HRGSB NOTICE OF HEARING-SB
NOTICE OF PUBLIC HEARING Wednesday, August 3, 2022
07/23/2022
Notice Type:

Ad Description

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Environmental Determination: Statutorily Exempt under the California Environmental Quality Act (“CEQA”), pursuant to Section 15282(h) (Other Statutory Exemptions) of the State CEQA Guidelines.

Environmental Determination: Statutory Exemption, pursuant to Section 15061(b)(3) (Review for Exemption) of the State CEQA Guidelines.

Submitted: July 19, 2022
Publish: July 23, 2022 (Display Ad)
CNSB 3607667
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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: August 3, 2022
To: Honorable Mayor and City Council Members
From: Robert D. Field, City Manager;
Nathan Freeman, Agency Director of Community, Housing, and Economic Development
Department: Community & Economic Development (CED)
Subject: Amendment No. 1 to Owner Occupied Rehabilitation Program (OORP) Agreement with Neighborhood Partnership Housing
Services, Inc. (NPHS)
Recommendation
It is recommended that the Mayor and City Council of the City of San Bernardino approve Amendment No. 1 to the Owner-Occupied Rehabilitation Program (OORP) Agreement with Neighborhood Partnership Housing Services, Inc. (NPHS) Background
On July 19, 2017, the Mayor and City Council adopted Resolution No. 2017-134, authorizing a Vendor Service Agreement (VSA) with Neighborhood Partnership Housing Solutions, Inc. (NPHS) for Owner Occupied Residential Rehabilitation Administration Services.

On June 6, 2018, the Mayor and City Council adopted Resolution No. 2018-157, approving Fiscal Year 2018-2019 Annual Action Plan that designated $450,000 in CDBG funds to continue Owner Occupied Rehabilitation Program OORP.

On September 5, 2018, the Mayor and City Council approved a CDBG Subrecipient Agreement with Neighborhood Partnership Housing Solutions, Inc. (NPHS) for a term of one year to replace the existing Vendor Services Agreement, and Policies and Packet Pg. 258
Procedures for Owner Occupied Rehabilitation Program.

On May 15, 2019, the Mayor and City Council adopted Fiscal Year 2019-2020 Annual Action Plan which changed the Owner-Occupied Rehabilitation Program from CDBG to HOME funds in the amount $450,000.

On July 24, 2020, NPHS entered into an Agreement with the City to utilize $450,000 in HOME funds to make loans for city eligible households for OORP projects.

Discussion
NPHS requires additional time to expend HOME funds and has requested a modified date to the term of the agreement. NPHS uses HOME funding to rehabilitate single family residences for low-income households. Although the Master Agreement was signed on July 24, 2020, and NPHS had until June 30, 2022, to fully expend the funds, the organization experienced a series of setbacks related to COVID-19. Currently, there are two (2) single family residences that have been identified for rehabilitation. The income earners for each household are actively engaged in the approval process. If NPHS is unable to have the term of the agreement extended, the two (2) single family residences are at risk of not having their property restored, remodeled, or improved.

The OORP was created to meet the five-year goal of preserving and rehabilitating housing units as adopted in the City’s FY 2020-2025 HUD Consolidated Plan.

NPHS desires to amend its OORP Agreement with the City, which would extend the term of the Agreement, thereby allowing additional time for NPHS to expend funds. The term of the OORP Agreement will be extended until June 30, 2023. NPHS will continue to provide financial assistance to eligible households within the City of San Bernardino seeking to perform rehabilitation to their single-family residences.

OORP is currently funded with HOME funds in the amount of $450,000 and provides income-eligible households with loans up to $40,000 for home improvements to their single-family residences. Such improvements include paint, plumbing, roofing, landscaping, ADA improvements, and energy efficiency upgrades. The loan is for a term of ten (10) years at zero interest and is forgiven by 20% beginning in year 6 and through year ten (10), at which time the entire balance is forgiven. OORP is currently administered by Neighborhood Partnership Housing Services, which has provided assistance to six (6) households throughout the City of San Bernardino. 2021-2025 Key Strategic Targets and Goals
The purpose of City’s Owner-Occupied Rehabilitation Program is to create sustainable living environments by improving the City’s aging housing stock. The Owner-Occupied Rehabilitation Program supports Key Target No. 3: Quality of Life and Key Target No.4:

Economic Growth & Development.

Fiscal Impact
No fiscal impact to the City as this program will be funded with HOME Investment Partnership Program funds provided by HUD.

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Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve Amendment No. 1 to the Owner-Occupied Rehabilitation Program (OORP) Agreement with Neighborhood Partnership Housing Services, Inc. (NPHS).

Attachments
Attachment 1 First Amendment to the HOME Investment Partnership Program Owner Occupied Rehabilitation Program Master Agreement
Attachment 2 2020-2021 HOME OORP Master Agreement.

Ward:

All Wards
Synopsis of Previous Council Actions:

June 6, 2018 The Mayor and City Council adopted Resolution No. 2018-157, approving Fiscal Year 2018-2019 Annual Action Plan that designated $250,000 in Community Development Block Grant (CDBG) funds to continue Owner Occupied Rehabilitation Program (OORP).

September 5, 2018 The Mayor and City Council approved a Community Development Block Grant (CDBG) Subrecipient Agreement with Neighborhood Partnership Housing Solutions, Inc. (NPHS) for a term of one year to replace the existing Vendor Services Agreement, and Policies and Procedures for Owner Occupied Rehabilitation Program (OORP).

May 15, 2019 The Mayor and City Council adopted Fiscal Year 2019-2020 Annual Action Plan which changed the funding for OORP from CDBG to HOME Investment Partnerships Program (HOME) funding in the amount $450,000.

July 19, 2017 The Mayor and City Council adopted Resolution No. 2017-134, authorizing a Vendor Service Agreement (VSA) with Neighborhood Partnership Housing Solutions, Inc. (NPHS) for Owner Occupied Residential Rehabilitation Administration Services.

August 21, 2019 The Mayor and City Council approved HOME Agreement with NPHS and modification of the OORP loan terms and obligations from a forgivable loan to a deferred loan.

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Mayor and City CouncilAugust 3, 2022

Mayor and City Council
August 3, 2022