Agenda packet — Mayor and City Council, March 1, 2023 (part 3 of 4)

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RESOLUTION NO. 2023-038

RESOLUTION OF THE MAYOR AND CITY COUNCIL OF

THE CITY OF SAN BERNARDINO, CALIFORNIA,

AUTHORIZING THE CITY MANAGER TO ACCEPT THE
2022 EDWARD BYRNE JUSTICE ASSISTANCE GRANT,

AND THE AGENCY DIRECTOR OF ADMINISTRATIVE
SERVICES TO AMEND THE FY2022/23 ADOPTED
BUDGET BY $213,617 IN BOTH REVENUE AND
EXPENDITURES.

WHEREAS, the City of San Bernardino is a sub-recipient to the County of San Bernardino for the Edward Byrne Memorial Justice Assistance Grant and; WHEREAS, the City of San Bernardino has been awarded the 2022 Edward Byrne Justice Memorial Justice Assistance Grant in the amount of $213,617

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. The City Manager is authorized to execute the 2022 Sub Award Grant Agreement for the Edward Byrne Memorial Justice Assistance Grant Program and the Interlocal Agreement between the City of San Bernardino and County of San Bernardino attached hereto as Exhibit “A” and Exhibit “B”, and by this reference made a part thereof.

SECTION 3. The Agency Director of Administrative Services is hereby authorized and directed to appropriate revenue and expenditures in the amount of $213,617 and incorporate the changes into the FY2022/23 Adopted Budget.

SECTION 4.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 5.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 6. Effective Date. This Resolution shall become effective immediately.

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Resolution No. 2023-038
Resolution 2023-038
March 1, 2023

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APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 1st day of March 2023.

Helen Tran, 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. 2023-038
Resolution 2023-038
March 1, 2023

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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. 2023-038, adopted at a regular meeting held on the 1 st day of March 2023 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 ____________ 2023.

Genoveva Rocha, CMC, City Clerk

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INTERLOCAL AGREEMENT

BETWEEN THE TOWNS OF APPLE VALLEY AND YUCCA VALLEY, THE CITIES OF

ADELANTO, BARSTOW, CHINO, COL TON, FONTANA, HESPERIA, HIGHLAND,

MONTCLAIR, ONTARIO, RANCHO CUCAMONGA, REDLANDS, RIALTO, SAN

BERNARDINO, UPLAND, VICTORVILLE, YUCAIPA, AND SAN BERNARDINO COUNTY, CA

CONCERNING DISTRIBUTION OF THE
2022 JUSTICE ASSISTANCE GRANT AWARD
This Agreement is made and entered into this 15th day of November , 2022, by and between SAN BERNARDINO COUNTY, acting by and through its governing body, the Board of Supervisors (hereinafter referred to as "COUNTY"), and the aforementioned TOWNS (hereinafter referred to as "TOWNS") and named CITIES (hereinafter referred to as "CITIES"), acting by and through their respective governing bodies, the Town Councils and City Councils, all of whom are situated within San Bernardino County, State of California, as follows:

WHEREAS, each governing body, in performing governmental functions or in paying for the performance of governmental functions hereunder, shall make that performance or those payments from current revenues legally available to that party; and WHEREAS, each governing body finds that the performance of this Agreement is in the best interests of all parties, that the undertaking will benefit the public, and that the division of costs fairly compensates the performing party for the services or functions under this Agreement; and
WHEREAS, the COUNTY agrees to release to TOWNS and CITIES their respective grant allocation from the JAG Award within sixty (60) days upon receipt of funds, less five percent (5%) for administrative fees, as reflected on Appendix 1 here attached and hereby incorporated by reference as part of this agreement; and COUNTY agrees to use the five percent (5%) of JAG award funds received from TOWNS and CITIES under this agreement for administrative fees toward the administration of TOWNS' and CITIES' programs during the entire permissible duration of said programs; and TOWNS and CITIES agree to deposit their JAG award funds into a separate trust account in accordance with JAG guidelines; and TOWNS and CITIES each agree to the five percent (5%) reduction of their respective grant allocation from the JAG award, as reflected on Appendix 1 for administrative fees toward the administration of this program; and additionally the TOWNS and CITIES each agree that it is their responsibility to ensure these funds are expended in accordance with JAG guidelines, and that the interest generated from such funds shall be solely applied and expended in accordance with these same JAG guidelines; and WHEREAS, the TOWNS, CITIES and COUNTY believe it to be in their best interests to reallocate the JAG funds,
NOW THEREFORE, the COUNTY and TOWNS and CITIES agree as follows:

Section 1.

COUNTY agrees to release to TOWNS and CITIES their respective grant allocation from the JAG Award within sixty (60) days upon receipt of funds, less five percent (5%) for administrative fees, as reflected in Appendix 1 here attached and hereby incorporated by reference as part of this Agreement, and; COUNTY agrees to use the five percent (5%) of JAG award funds received from MOU - 2022 Justice Assistance Grant Page 1

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DISCUSSION
City of San Bernardino
Request for Council Action
Date: March 1, 2023
To: Honorable Mayor and City Council Members
From: Charles E. McNeely, Interim City Manager;
Barbara Whitehorn, Agency Director of Administrative Services Department: Finance
Subject: Fiscal Year 2022/23 Mid-Year Update (All Wards) Recommendation:

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

1. Receive and file the Fiscal Year 2022/23 Mid-Year Budget Report; and

2. Adopt Resolution No. 2023-039 Authorizing the Agency Director of Administrative Services to amend the Fiscal Year 2022/23 Operating Budget by $5,914,730 as outlined in the Fiscal Year 2022/23 Mid-Year Budget Report.

Background
In December 2022, the Mayor and City Council received the first quarter report for Fiscal Year 2022/23 and amended the budget accordingly. The first quarter report included information on higher-than-expected revenues at the close of Fiscal Year 2021/22 as well as detailed information on General Fund revenue trends and expenditures. The Mid-Year Report for Fiscal Year 2022/23 is a continuation of the budget monitoring and performance for the year. Included in this report is a review of the City’s revenue trends and projections, as well as a review of the General Fund expenditures and projections for the remainder of the fiscal year. The Mid-Year Budget Report is an important opportunity to review projected revenues and expenditures for the remainder of the fiscal year and consider critical needs that require additional funding. This Mid-Year Report also previews revenue expectations and cost projections for the biennial update for FY 2023/24.

Discussion
Following the first quarter report, the City’s finance team worked in close partnership with departments to put together a mid-year review of the operating budgets. Each department prepared revenue estimates and projected expenses for the remainder of the year. In reviewing the budget performance with departments, the City’s Finance Department and Budget Division identified areas in which there are potential savings to utilize for

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department needs, and the areas in which additional support is needed for the remainder of the fiscal year. Further into this report, there is a detailed outline of the General Fund expenditures and operating budgets. Most of the departments remain within target for the year; however, some departments have experienced unforeseen expenditures that require additional funding.

As the City continues to grow and rebuild, additional programs and positions have been funded, aligning with the Mayor and City Council’s goals for investments within the City.

The requests before the Mayor and City Council to review for additional funding have been thoroughly reviewed by the City’s Budget and Finance team in partnership with the City Manager’s Office. As departments work to execute the programs that were funded with the first quarter update, the requests brought forth at this time address only the most essential funding needs as identified by the City Manager’s Office and Finance Department. These requests supplement the ongoing work within the departments and expand the ability for these teams to meet the needs of the community. The requests are detailed below with the fiscal impact for this fiscal year and includes any on-going fiscal impacts where relevant.

Overall, the projected expenditures in the General Fund through the end of the fiscal year are $192,083,271 and revenues are projected to be $199,266,023. The difference in the projected revenues and expenditures for the operating budget allows the City to maintain healthy reserves and remain fiscally sound; however, it is important to note that given the current additions to the budget from the time of adoption through the first quarter update, any additional significant investments outside of those presented in this report would result in the use of fund balance.

General Fund Revenue Trends
The City of San Bernardino continues to operate in a period of growth, with positive revenue trends year-to-date through December 31, 2022. Overall, revenues are trending either on budget for the projected budgeted amount or slightly higher. The primary drivers of the City’s revenue continue to be from Sales and Use Tax and Measure S; however, revenue from other categories such as charges for services, intergovernmental, and licenses and permits are trending slightly higher than the adopted budget for the fiscal year as well. The review below covers some of the primary areas in which revenue projections vary from the amended budget.

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Charges for Services
This revenue stream is comprised of fees the City collects from services provided to the community. Most notable in this category are plan check fees, code single family inspection fee (SFIF), miscellaneous police receipts, program and facility use fees, as well as a number of other fees within this category. A revenue trend analysis was recently completed, and the results suggest that these revenues will continue to trend higher than budget. As departments continue to recruit and fill vacant positions, some of these revenue categories will grow further. Staff continues to monitor economic indicators that influence this revenue category, and the FY 2023/24 revenue budget will be updated accordingly.

Intergovernmental
The primary driving force behind the revised revenue projection in this category is the service agreement the San Bernardino International Airport Authority (SBIAA) and the City entered into for two SBPD police officers to be assigned to SBIAA with the launch of commercial flights.

Sales & Use Tax and Measure S Transaction & Use Tax (TUT) The City is primarily a sales-tax dependent City, with Sales and Use Tax, and the Measure S Transaction and Use Tax representing nearly 50% of the FY 2022/23 General Fund revenues in the adopted budget. Sales tax receipts are reported and remitted to the State on a monthly basis, and the City receives its remittance two months after the taxes are Adopted Budget Amended Budget Actual Through
12/31/22 Projections FY 23
Charges for services 8,232,400$ 8,394,734$ 4,272,626$ 10,335,402$ Fines and forfeitures 1,365,500$ 1,365,500$ 439,139$ 1,050,200$ Franchise Tax 11,781,000$ 11,781,000$ 3,226,322$ 11,781,000$ Intergovernmental 2,367,000$ 2,525,670$ 418,361$ 2,702,000$ Investment income 525,000$ 525,000$ 393,323$ 575,000$ Licenses & permits 12,430,000$ 12,430,000$ 6,795,420$ 12,488,000$ Miscellaneous 1,181,556$ 1,181,556$ 577,179$ 1,495,386$ Other Taxes 7,656,000$ 7,656,000$ 3,774,353$ 7,756,000$ Property Taxes 22,500,000$ 22,500,000$ 320,550$ 21,436,789$ Sales and Use Tax 50,000,000$ 50,000,000$ 19,130,065$ 52,000,000$ Taxes -$ -$ 488$ -$ Use of Money and Property 529,000$ 529,000$ 143,621$ 646,246$ Utility Users Tax 21,430,500$ 21,430,500$ 14,227,743$ 23,000,000$ Cannabis Tax 4,000,000$ 4,000,000$ 605,692$ 4,000,000$ Measure S Tax 46,000,000$ 46,000,000$ 16,884,229$ 50,000,000$ General Fund Total 189,997,956$ 190,318,960$ 71,209,112$ 199,266,023$

CITY OF SAN BERNARDINO REVENUE ESTIMATES
FY 2022-2023

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collected. The mid-year update reflects two months’ worth of sales tax receipts, and the revenue collections continue to stay on budget, trending just slightly higher than the amended budgeted amount.

Because sales tax is a volatile revenue stream, staff monitors economic indicators and evaluates local, state, and national trends to predict the potential impact of shifts in interest rates, inflation, and consumer confidence on the City’s revenue. Over the last few months, marginal improvements in inflation in various industries have helped the national economy, but inflation remains high, and interest rates are at their highest since 2007. In contrast, consumer spending remained strong during the holiday season, and national economists are not predicting a significant slow-down in spending. This is in part due to the high level of savings that many households built up during the pandemic; overall savings accumulated nationwide reached more than $2.3 trillion. Nevertheless, as a City that is largely dependent on volatile revenue streams that are largely influenced by consumer confidence, the City should exercise prudence in budgeting. With the higher cost of utilities, food, and other necessities, there is the potential for households to begin to limit discretionary spending. With strong spending, household savings rates dropped to their lowest since 2005 in October 2022 at 2.3%, but have started to climb slightly, reaching 3.4% in December, a potential leading indicator of softening discretionary spending, which could negatively impact the City’s largest source of revenue.

Sales & Use Tax
Staff remains conservative with revenue projections. Based on collections year-to- date, economic indicators, and trend analyses, Sales and Use Tax is projected to end the year over the amended budget amount of $50 million by 4%, with total estimated collections of $52 million for the fiscal year.

Measure S
Like the sales and use tax, this transaction and use tax represents a considerable portion of the City’s General Fund revenue and continues to perform well. The actual collections to date are slightly higher than originally projected. Based on collections year-to-date, economic indicators and trend analyses, staff is estimating that the revenue stream will continue doing well and is projected to end the year 8.7% over the budgeted amount of $46 million, with estimated collections of $50 million.

Cannabis Revenue
Cannabis revenue comprises approximately two percent of the total revenue for the City.

The revenue comes to the City through permit application and regulatory fees, special events, as well as the cannabis tax which comprises the largest component. Revenues for mid-year are low due to late payment of taxes. Staff anticipates that it will end the year at the adopted budget amount. Staff in both Economic Development and Business Registration are working with the companies that are late paying to expedite payment.

Licenses and Permits
Revenue from various licenses and permits are currently trending higher than budgeted

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due to the increased numbers of permits issued by the city. The increase in development activity within the community is reflected in the increase in building, mechanical and various other permit fees.

Property Taxes
The City receives two payments from the County of San Bernardino for Vehicle License Fees (VLF) in lieu of Property Tax. These are received in January and June. The snapshot above captures revenue collected through the end of December 2022 and therefore doesn’t reflect the payment the City received in January.

General Fund Expenditures
Departments continue to recruit for positions to ensure a high level of service, and to staff programs and initiatives that positively impact the community. During the mid-year review process, the Finance team reviews the actual expenditures year-to-date with each department, and projects areas that may need additional funding through the end of the fiscal year due to unexpected expenses.

The chart below provides a snapshot of the General Fund current year-to-date transactions through December 2022 and the anticipated projections through the end of the fiscal year. Most of the departments remain on track for the fiscal year with a few exceptions that will require additional funding as outlined below.

Budget Amendments Current Service Levels:

In reviewing the operating budget expenditures at mid-year a few critical items were identified that will require additional budget amendments. Staff is requesting that the Mayor and City Council approve the following budget amendments due to unforeseen expenses:

Department Adopted Budget Amended Budget Actual Through 12/31/22 Estimated Year-End FY 23 Variance Est. Year-End to Amended Mayor's Office 377,224$ 377,135$ 160,850$ 377,135$ -$ City Council 931,882$ 939,459$ 544,742$ 939,459$ -$ City Clerk's Office 1,486,807$ 1,863,641$ 599,646$ 1,853,304$ (10,337)$ Legal Services 3,176,084$ 3,278,996$ 1,691,079$ 4,278,996$ 1,000,000$ General Government 15,685,165$ 16,011,961$ 6,335,737$ 17,311,961$ 1,300,000$ City Manager's Office 2,331,558$ 2,360,906$ 1,008,327$ 2,360,906$ -$ Human Resources 2,508,177$ 2,550,908$ 897,810$ 2,550,908$ -$ Finance 6,000,647$ 6,002,026$ 2,709,074$ 5,988,843$ (13,183)$ Community & Economic Development 9,647,543$ 12,115,904$ 4,460,136$ 11,929,822$ (186,082)$ Police 106,395,588$ 108,693,077$ 64,708,530$ 107,977,823$ (715,254)$ Parks Recreation & Community Services 4,596,710$ 4,800,802$ 2,031,699$ 4,800,802$ -$ Public Works, Operations & Maintenance 26,567,943$ 28,330,794$ 10,201,938$ 25,497,715$ (2,833,079)$ Library 2,633,501$ 2,743,043$ 1,165,292$ 2,626,197$ (116,846)$ Special Assesment District 150,000$ 34,004$ -$ 150,000$ 115,996$ Total General Fund Expenditures 182,488,829$ 190,102,656$ 96,514,860$ 188,643,871$ (1,458,785)$ CITY OF SAN BERNARDINO GENERAL FUND EXPENDITURE ESTIMATESFY 2022-2023

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Internal Service Funds
Internal Service Funds provide services to internal departments within the City. Costs in these funds are distributed to departments within the General Fund as a transfer, and any increase is a cost to the General Fund.

Liability Fund
The Liability Fund maintains a balance from which claims liabilities are paid. The General Fund pays into this fund annually to ensure that there is adequate funding to pay estimated claims. As of December 8, 2022, the Human Resources Department has expensed a total of approximately $3 million, exceeding the original adopted budget of $2.4 million. Due to higher than anticipated settlement agreements, staff is recommending an addition of $2 million in FY 2022/23 to cover these additional expenses. Legal Services has also informed staff that an additional $2 million will probably be necessary in FY 2023/24 should current litigation be settled and paid sooner than anticipated.

Fleet Services Fund
The Fleet Services Fund is an internal service fund in which costs for vehicle maintenance program for the City are recorded. Due to the increasing rates of utilities, the adopted budget amount in the fund is insufficient. Staff recommends an addition of $56,000 in FY 2022/23 to cover the additional expense in Fleet Services.

Information Technology Fund
The Information Technology (IT) Fund is an internal service fund which includes all costs associated with providing IT services city-wide. The IT department not only provides computer, email, phone, virtual meeting, and remote assistance, but also supports staff at more than 40 locations throughout the City through its Local Area Networks (LAN) and Wide Area Networks (WAN). For many years the City was not fully capable of enhancing the networks or expanding the services offered by IT due to limited funds. As the City invests in services city-wide by adding personnel, and expanding or adding locations, there is a direct impact to the IT Department that the Department’s current budget does not currently support. Additionally, IT staff has identified many systems city-wide that are nearing end-of-life and need immediate replacement, storage devices are nearing full capacity, and necessary security enhancements are needed to continue to protect the City. Outdated and obsolete systems put the City in a vulnerable position.

All necessary additions are described below as well as the budgetary impacts for the current fiscal year. In total, staff is recommending an addition of $949,060 to the IT Department budget in FY 2022/23. It is important to note that these are one-time capital purchases and will have an estimated on-going cost of approximately $94,000 in the following years for software licensing and maintenance.

Data Center Replacement. The City currently has data centers at various locations.

Each have systems that allow for nightly backup of the City’s servers. The backup is then stored on storage devices that have 30TB of capacity and are nearing full capacity. If these devices are not upgraded to allow for a larger capacity, the City

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could risk being unable to properly restore data, restore documents, or fulfill Public Records Act requests in a timely manner. The estimated cost to upgrade the devices to a total capacity of 60TB is approximately $150,000 for FY 2022/23.

Virtual Server Replacement. In addition to the data centers located at City Hall and the Police Department, are the VxRail systems located at both locations. The VxRail system are virtual servers that are the foundation for critical software systems used city-wide. Some of these systems include the financial system, payroll system, Computer Aided Dispatch system, and Document Imaging System.

The current VxRail system is nearing end of warranty and nearing full storage capacity. Replacement of the current system to obtain a newer data center infrastructure is estimated to cost approximately $500,000 for FY 2022/23.

Email Storage Upgrade. Storage for emails resides on the servers located at City Hall and the Police Department; all emails have migrated to the Office 365 cloud- based solution. The software used at both locations to back up emails is no longer compatible with Office 365’s cloud-based solution or Microsoft OneDrive.

Upgrading the software that is currently used will allow for compatibility between the two systems and will assist in the fulfillment of Public Records Act requests.

The upgrade to this system is estimated to be approximately $32,000 for FY 2022/23.

Access Control System. The City also has access control system servers at two different locations that are currently operating on old hardware and unsupported software. Replacement of these different systems is crucial to the security access of the City’s property entrance points. These systems could be replaced with a single cloud-hosted solution that can provide uniformity and be more easily managed. The cost of this is estimated to be approximately $100,000 for FY 2022/23.

Document Management System. The document management system used by the City requires an upgrade due to the system changing licensing models. To continue with the current system and allow accessibility for necessary users, and addition of other users, the City must move into this new licensing model. This upgrade also aligns with the updated Records Management Policy that was recently taken to, and approved by, council. The cost of this upgrade is estimated to be approximately $75,000 for FY 2022/23.

Multi-Factor Authentication. The Police Department uses mobile computers for field operations. These computers run on programs that access criminal offender record information (CORI). The Criminal Justice Information System (CJIS) has enacted new requirements for protecting CORI which requires agencies to implement a multi-factor process that prevents unauthorized access to systems that provide CORI. To comply with CJIS regulations, the Police Department will be given licensing to allow for two-factor authentication. The cost of this implementation is estimated to be approximately $34,560 for FY 2022/23.

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Social Media Management. The City currently operates on several social media platforms with dozens of accounts spread throughout the city departments and have become cumbersome and time consuming to manage and monitor all accounts. The City is looking to implement a social media management solution to avoid regulatory infractions around administrative and user permissions within internal teams, individuals, and content being published. In order to consolidate the social media platforms, a software service that provides a unified dashboard for the management of all social media users is needed. The cost of a software service like this is estimated to cost approximately $23,000 for FY 2022/23.

Laptops. Human Resources (HR) and IT have occasional needs to work offsite due to the nature of their work. Issues that need to be addressed immediately could arise when the necessary personnel are not onsite. If an individual that is needed to handle a task is not in the office, but could do the task remotely, the individual would need to have the resources to do so - such as a City-owned laptop. It is beneficial to use City-owned laptops as opposed to personal laptops to ensure ease of access to necessary information and data security. IT can use a Mobile Device Manager to help with remote assistance and inventory as well. If a laptop user needs support, the staff is familiar with the city-owned laptops and can offer immediate support. Also, in the event that the City-owned laptop were lost or stolen, it can be locked or wiped remotely. A total of 23 laptops are needed for an estimated cost of approximately $34,500 in FY 2022/23.

General Fund Departments
Legal Services
The City has seen an increase in tort litigation since exiting the Chapter 11 Bankruptcy.

The City no longer enjoys the benefits of the bankruptcy protection and plaintiffs' attorneys once again see the City as a viable target for litigation. Most of the budget and costs associated with the Legal Services Office are driven by specialized legal counsel retained for specific projects and large cases; not the municipal legal services retainer with BB&K for day-to-day legal work and review. Like many fields, professional services are subject to the same inflationary pressures affecting other sectors of the economy. As the City continues to address several complex and high-profile cases that have proven difficult to resolve, staff is recommending an increase of $1,000,000 to allow for outside specialized legal counsel to continue to serve the City. Staff anticipates that this increase will be on- going until all complex and high-profile cases have been settled. It should be noted that, despite inflationary pressures, the overall cost of legal services remains significantly lower with contracted legal services than the City paid when it had an in-house City Attorney's Office. Additionally, attorneys’ fees and costs represent a smaller portion of the City’s governmental expenses today than they did prior to the transition.

General Government
The General Government Department functions as the budgetary mechanism to account for costs that are not directly applicable to any one department. All utility accounts that

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the City pays are housed in this department excluding Animal Services and Fleet Services. Due to the increasing rates of utilities, the adopted budget amount estimated City-wide has proven inadequate. Staff recommends an addition of $1.3 million to cover the additional cost for the remainder of the fiscal year and anticipates the need to increase this account for FY 2023/24.

Community, Housing, and Economic Development
In December 2021, during the Fiscal Year 2021/22 1 st Quarter Report, three analysts were added to the Housing Division to allow the City to move away from using contracted staff to manage the Housing programs. At the time, the Housing Division was severely understaffed, and the short-term solution was to have contracted staff overseeing the Housing programs and initiatives. Having in-house personnel allows for more direct City involvement in implementing and managing the Community Development Block Grant (CDBG), Emergency Services Grant (ESG), Home Investment Partnership Act (HOME), and other grant funded programs. These analyst positions were proposed to be funded in part through CDBG. The Housing Division is now fully staffed in FY 2022/23, and with the addition of the three analysts, the personnel expense total exceeds the allowable administration cost percentage for CDBG. To comply with the CDBG allowable administration percentage, a portion of personnel expenses must be funded through the General Fund on an on-going basis. Staff recommends amending the Division’s General Fund budget by $446,699 for FY 2022/23. The increase for the FY 2023/24 budget will be approximately $610,000.

Transparency & Accountability
In December 2021, the Council approved amendments to the City’s Municipal Code that granted authority to the City’s finance team to make administrative transfers within the City’s budget. These amendments enabled greater flexibility to transfer available resources within a given fund between departments and allowed finance staff to allocate salary or personnel savings to operating expenses. For those departments that had small deficits due to unforeseen costs, the finance staff will transfer funds from personnel savings or from other areas within department budgets to cover the difference. For example, a department may have a deficit due to a vacation payout for an employee who departed from the City. While unexpected, the cost is covered through transfers from salary savings within the department or within the organization. This doesn’t impact the total expenditures, or the spending authority granted to staff through the adoption of the budget.

Budget Amendments- Increasing Service Levels
During the mid-year review with departments the following requests were identified to meet the on-going demand for services in the community. These requests increase the current service level and require additional funding. Staff is recommending the approval of the following amendments to the Fiscal Year 2022/23 operating budget:

City Clerk
The City Clerk’s Office is requesting an addition of an Executive Assistant position to their team. This is a position that existed in the department prior to bankruptcy but was left

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unfilled for years as the City worked to reach financial stability. The work of this position was divided amongst staff members to provide the necessary support that is needed from the Clerk’s Office to other departments and to the public. This position is crucial in the department to provide a wide array of complex, diverse and confidential secretarial, administrative, and executive support services. The estimated cost and impact to the General Fund for the addition of this position is estimated to be $65,457 for FY 2022/23 and $100,272 for FY 2023/24.

The City Clerk’s Office is also requesting funds to obtain qualified, temporary contracted services to address the backlog of meeting minutes. Using a contracted service that can focus solely on the preparation of minutes from calendar years 2020, 2021 and 2022 would clear 155 hours of meeting minutes in approximately six months. The meeting minutes are extremely important for the City as a whole to provide staff direction after meetings regarding the actions taken by Council on projects, agreements, and specific general government business. This would be a one-time, one-year contract and is estimated to cost $25,000 for FY 2022/23.

Library
The Library is requesting the addition of two full-time Library Technicians. Several rounds of recruitment for part-time positions in the department have been unsuccessful and retention of the current part-time employees has also proven to be difficult. Though there have been small additions to the full-time staff previously, the branch libraries continue to be staffed at a minimum and have yet to return to pre-bankruptcy hours of operation, though they have expanded hours significantly in the last two years. The addition of two Library Technicians would greatly enhance the level of public services that the libraries could offer the community. Savings in part-time salaries will be used to cover a portion of the costs for these positions. The estimated remainder of costs and impact to the General Fund for these positions is estimated to be $18,184 for FY 2022/23 and $142,000 for FY 2023/24.

Animal Services Fund
The Animal Services Fund is a special revenue fund that is majority supported through a General Fund operating transfer. Animal Services is requesting three additional full-time positions. The increase in staffing levels for the Department is a critical need due to the large number of animal intakes. For comparison purposes, a study was conducted by staff to compare staffing levels in other agencies. The study showed that no surrounding city, or any other city in California, came close to number of animal intakes at the City of San Bernardino’s Animal Services. The total intake for dogs and cats in calendar year 2022 for the City was 5,156. The only agencies in California with similar intake numbers were Ventura County, with an area covering 2,200 square miles, with an intake of 6,015 animals, and Contra Costa County, with an area covering 716 square miles with an intake of 6,152 animals (calendar year 2021). These agencies have staffing levels of 76 and 83 full-time employees, respectively. The City’s Animal Services Department functions with only 25 full-time staff.

The Animal Services Department has no Deputy Director and no mid-level managers.

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Lacking this crucial backup, the Director must fulfill the management duties for the entire operation. With service demands that are increasing and showing no signs of slowing, this is an unsustainable staffing model. To continue to provide the high level of service that has become the standard for the City of San Bernardino Animal Services, the Department needs an Animal Services Manager, Animal Services Supervisor, and an additional Animal Control Officer to support the Field Unit.

Savings are available within the Department budget due to the Animal License Inspector and Veterinarian positions proving difficult to fill. Staff is proposing reallocating the funds assigned to the vacant Animal License Inspector positions to partially cover the three proposed additional positions during this fiscal year. The savings would be used to cover a portion of the salaries and benefits, costs of an additional vehicle, as well as supplies and uniforms for the new team members. Additional funds would nevertheless be required to support the additional employees. The estimated impact to the General Fund for these positions is $54,340 for FY 2022/23 and $322,688 for FY 2023/24. 2021-2025 Strategic Targets and Goals
Receiving and Filing the FY 2022/23 Mid-Year Budget Update Report aligns with Key Target No. 1: Improved Operational & Financial Capacity. Updated revenue and expenditure projections provide the Mayor and City Council with important information and analysis needed to make financial decisions impacting the City.

Fiscal Impact
Summary of the requested budget amendments are listed below:

Department Item Description Request Type FY 23 Impact FY 24 Impact Animal Services
Animal Services Manager, Supervisor, and
Animal Control Officer On-Going 54,340$ 322,688$ CED Adminstration costs for Housing Division On-Going 446,699$ 610,000$ City Clerk Executive Assistant to the City Clerk On-Going 65,457$ 100,272$ City Clerk Contracted services for minutes backlog One-time 25,000$ -$ Fleet Services Increase of utility costs One-time 56,000$ -$ General Government Increase of utility costs On-Going 1,300,000$ 1,300,000$ Human Resources Liability Claims On-Going 2,000,000$ 2,000,000$ Information Technology Data center replacement One-time 150,000$ 11,750$ Information Technology Virtual server replacement One-time 500,000$ 11,750$ Information Technology Email storage upgrade One-time 32,000$ 11,750$ Information Technology Access control system replacement One-time 100,000$ 11,750$ Information Technology Document Management system upgrade One-time 75,000$ 11,750$ Information Technology Multi-Factor authentication PD One-time 34,560$ 11,750$ Information Technology Social media management system One-time 23,000$ 11,750$ Information Technology 23 Laptops (14 IT, 9 HR) One-time 34,500$ 11,750$ Legal Services
Increase of costs for specialized legal
counsel On-Going 1,000,000$ 1,000,000$
Library Two full-time Library Technicians On-Going 18,174$ 142,000$ 5,914,730$ 5,568,960$ Total Mid-Year Budget Requests:

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

1. Receive and file the Fiscal Year 2022/23 Mid-Year Budget Report; and

Attachments

1. Attachment 1 - Resolution No. 2023-039 Fiscal Year 2022-23 Budget Amendments

2. Attachment 2 - Fiscal Year 2022-2023 Mid-Year Report Presentation Ward:

All Wards
Synopsis of Previous Council Actions:

June 1, 2022 The Mayor and City Council adopted Resolution No. 2022-102 approving the City of San Bernardino’s Operating Budget and Capital Improvement Program (CIP) for Fiscal Year 2023 and Fiscal Year 2024.

December 7, 2022 The Mayor and City Council received and filed the 1st Quarter Budget Report for Fiscal Year 2022/23 and adopted Resolution No. 2022- 268 approving the amendments for the 1st Quarter Report.

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Resolution No. 2023-039
Resolution No. 2023-039
March 1, 2023

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RESOLUTION NO. 2023-039

RESOLUTION OF THE MAYOR AND CITY COUNCIL OF

THE CITY OF SAN BERNARDINO, CALIFORNIA,

AUTHORIZING THE AGENCY DIRECTOR OF

ADMINISTRATIVE SERVICES TO AMEND THE FY
2022/23 OPERATING BUDGET IN THE AMOUNT OF
$5,914,730 FOR THE AMOUNTS DETAILED IN THE MID
YEAR FISCAL YEAR 2022/23 REPORT
WHEREAS, the City of San Bernardino is in a period of growth and development; and WHEREAS, departments continue to focus on improving external and internal customer services; and
WHEREAS, in order to make necessary improvements some departments require additional funding.

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. That the Mayor and City Council hereby authorize the Agency Director of Administrative Services to amend the Fiscal Year 2022/23 Operating Budget in the amount of $5,914,730 as detailed in the Mid-Year Fiscal Year 2022/23 Report.

SECTION 3. That the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

SECTION 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.

APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 1st day of March 2023.

Helen Tran, Mayor
City of San Bernardino

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Resolution No. 2023-039
Resolution No. 2023-039
March 1, 2023

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Attest:

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

Sonia Carvalho, City Attorney

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Resolution No. 2023-039
Resolution No. 2023-039
March 1, 2023

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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. 2023-039, adopted at a regular meeting held on the 1 st day of March 2023 by the following vote:

Genoveva Rocha, CMC, City Clerk

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FY 2022/23 Mid-Year Report
Barbara Whitehorn, Agency Director of Administrative
Services
Zuyva Ruiz, Budget Division Manager
March 1, 2023

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FY 2022/23 Mid-Year Report
ØPresentation Overview
• Mid-Year Review
• Budget Monitoring & Evaluation
• Proposed Amendments
• Questions/Discussion
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REVENUE REVIEW
FY 2022/23
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FY 2022/23 Mid Year Revenues
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FY 2022/23 Mid Year Revenues
5 2023
Revenue
ON budget
2023
Revenue
BELOW
budget
2023
Revenue

EXCEEDING
budget

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FY 2022/23 Mid Year Revenues
• Strong Revenue Performance
• Revised year-end projections for Sales & Use Tax as well as Measure S Revenue
• Strong performance in categories:
• Charges for Services
• Intergovernmental
• Licenses and Permits
• Continuous monitoring of revenues to prepare updates for FY 2023/24
6 Revenue Performance

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BUDGET PERFORMANCE
FY 2022/23
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FY 2022/23 Mid-Year Expenditures
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FY 2022/23 Mid-Year Expenditures
9 Department Budget Performance
• On Track
• Most departments are either at or below targets
(inclusive of 1st Quarter additions)
• Utilizing savings to cover unexpected expenses
• Over Budget
• Legal Services, General Government, Liability Fund,
Fleet Services Fund

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Internal Service Funds
10 Budget Amendments
Liability Fund
• $2,000,000 increase in FY 2022/23 – higher than anticipated settlements
Fleet Services Fund
• $56,000 to cover increased costs of utilities
Information Technology Fund
• $949,060 one-time capital investment in necessary
technology infrastructure

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Internal Service Funds
11 • $150,000 - Data Center
replacement
• $500,000 - Virtual Server
replacement
• $32,000 - Email storage upgrade
• $100,000 - Access control system
replacement
• $75,000 – Document management
system upgrade
• $34,560 - Multi-Factor
authentication – PD
• $23,000 - Social media
management system
• $34,500 – 23 Laptops
Information Technology Fund
Budget Amendments

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General Fund Departments
12 Budget Amendments
Legal Services:
• $1,000,000 for on-going outside specialized legal
counsel
General Government:
• $1,300,000 to cover increased costs of utilities city- wide
Community, Housing, and Economic Development:
• $446,699 for Housing Division personnel costs
General Fund – Current Service Levels

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INCREASING SERVICE LEVELS

MEETING THE NEEDS OF THE COMMUNITY
FY 2022/23
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Budget Planning and and Identified Needs
14 City Clerk’s Office

Challenges:
• Understaffed as compared to demands for service
• Large backlog of meeting minutes
Requests:
• 1 full-time Executive Assistant position
• $65,457 in FY 2022/23 and $100,272 in FY 2023/24
• Contracted temporary services to clear backlog of meeting minutes
• $25,000 in FY 2022/23 one-time expense

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Budget Planning and and Identified Needs
15 Challenges:
• Understaffed; expanded hours, still not at pre-bankruptcy levels • Unsuccessful recruitments and retention of part-time
employees
Request:
• 2 full-time Library Technicians
• $18,184 in FY 2022/23 and $142,000 in FY 2023/24
Library

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Budget Planning and Identified Needs
16 Challenges:
• Extremely high animal intake; comparable to counties
• Understaffed with high-level service demands
• Lacking crucial backup for Director
Requests:
• 3 full-time positions: (1) Animal Services Manager, (1) Animal Services Supervisor, (1) Animal Control Officer
• $54,340 in FY 2022/23 and $322,688 in FY 2023/24
Animal Services

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Mid-Year Budget Amendment Summary
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BUDGET LOOK AHEAD
FY 2022/23
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19 Mid-Year
Review
(March 1, 2023)
Year 2 Budget
Updates
(Starting March
2023)
FY 2024 Budget
Adoption
(June 7, 2023)
Biennial Budget Fiscal Year 2022-23 to 2023-24 Timeline

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DISCUSSION
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DISCUSSION
City of San Bernardino
Request for Council Action
Date: March 1, 2023
To: Honorable Mayor and City Council Members
From: Charles E. McNeely, Interim City Manager
Daniel Hernandez, Agency Director of Public Works,
Operations and Maintenance
Department: Public Works
Subject: Introduce Ordinance No. MC-1612 Amending Section

8.24.050 of the Municipal Code (Notification of
Administrative Hearing) (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. MC- 1612 amending Section 8.24.050 of the San Bernardino Municipal Code regarding notification of administrative hearing decision and final report of delinquent solid waste charges to affected persons.

Background
On April 1, 2016, as part of the City of San Bernardino’s Bankruptcy Recovery Plan, the City of San Bernardino contracted with Burrtec Waste Industries to provide solid waste, recycling, and right of way clean up services.

San Bernardino Municipal Code Section 8.24.050 provides that in the event the bill for solid waste collection service together with any late charge thereon is not paid in full within thirty days after the date of mailing the notice of delinquency to the property owner and tenant pursuant to Chapter 8.24.050(B), the franchised hauler may assign such bill to the City for collection through the initiation of special assessment and lien proceedings.

Discussion
Pursuant to San Bernardino Municipal Code Section 8.24.050(E), property owners and tenants are mailed a notice of an administrative hearing to impose a special assessment and lien against a property for unpaid delinquent solid waste charges.

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Following the administrative hearing, San Bernardino Municipal Code Section

8.24.050(F) provides that the City Manager shall send a copy of the administrative hearing decision and final report of delinquent solid waste charges to both Council and the property owners and tenants. Following the hearing, a letter with a website link to the order and report is mailed to the property owners and tenants.

In an effort to streamline the administrative hearing process, which will provide information more expediently, consolidate the number of mailings sent to the property owners and tenants to one letter, reduce staff administrative time, and save on printing and mailing costs, the City wishes to amend San Bernardino Municipal Code Section 8.24.050 to allow the City to provide the website link to property owners and tenants in advance, by including the link in the mailed notice of the administrative hearing regarding the proposed special assessment and lien to be imposed against the property receiving solid waste services. 2021-2025 Strategic Targets and Goals
Amending San Bernardino Municipal Code Section 8.24.050 aligns with Key Target No. 1b: Continue to seek opportunities to secure long-term revenue sources as special assessment and lien proceedings enable the waste hauler to continue providing mandatory waste removal services throughout the City despite non-paying customers and saves on printing and mailing costs.

Fiscal Impact
No fiscal impact to the City. The City of San Bernardino and Burrtec Waste will continue to recover the amounts owed for services provided to the customers.

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

Attachments
Attachment 1 Redline Section 8.24.050 Failure to Pay
Attachment 2 Clean – Ordinance No. MC-1612
Ward:

All Wards
Synopsis of Previous Council Actions:

November 7, 2016 The Mayor and City Council adopted Ordinance No. MC- 1431 amending San Bernardino Municipal Code, Title 8,
Health and Safety, Article 24.

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8.24.050 Failure to Pay.

A. Failure to Pay for Solid Waste Collection Service.

The franchised hauler shall be entitled to payment from the property owner, tenant or any other subscribing person on behalf of the property owner for any services rendered or to be rendered. Solid waste collection service shall not be discontinued for residential customers by reason of any failure to pay the charges for such service. The franchised hauler may temporarily suspend services if a commercial customer has been delinquent in payment for a period of at least forty-five (45) days in accordance with the terms of the franchise agreement.

B. Notification of Delinquency.

1. Customers (owners or tenants) who have not remitted required payment within forty-five (45) days after the date of billing shall be notified by the franchised hauler on forms that contain a statement that if payment is not received within fifteen (15) days from the date of the notice, the delinquent and unpaid charges, including a 10% penalty and 1.5% monthly interest, may be placed on the San Bernardino County annual secured property tax rolls and that any amount owing would then become a lien on the property.

Contractor shall provide such notice to customers as is required under Proposition 218 to include notification via U.S. Mail to the current billing address on file.

2. All notices pursuant to this division shall be made to the property owner, if the property owner is the subscriber, or else to the property owner and tenant or any other subscribing person on behalf of the property owner. The form of delinquency notice shall be approved by the City Manager.

C. Assignment of Delinquent Account.

In the event the bill for Solid Waste collection service together with any late charge thereon is not paid in full within thirty (30) days after the date of mailing the notice of delinquency to the property owner and tenant pursuant to Chapter 8.24.050(B), the franchised hauler may assign such bill to the City for collection through the initiation of lien and special assessment proceedings. The assignment shall include the name and address of the property owner and tenant, the assessor's parcel number of the premises, the period of Solid Waste collection service covered by the bill, the amount owed for such service, the amount of any late charge and such other information as requested by the City Manager, together with a copy of the notices of delinquency mailed or otherwise delivered to the property owner and tenant with proof of service.

D. Initiation of Special Assessment and Lien.

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Upon the City's receipt of the assignment from the franchised hauler, the City Manager shall prepare a report of delinquency delinquent Solid Waste collection service charges and initiate proceedings to create a special assessment and lien on the premises to which the Solid Waste collection service was provided. The City Manager shall fix a time, date and place for an administrative hearing by the City Manager to consider any objections or protests to his or her report.

E. Notice of Administrative Hearing on Special Assessment and Lien.

The City Manager shall send written notice of the administrative hearing to the property owner and tenant of the premises against which the special assessment and lien will be imposed at least ten (10) days prior to the hearing date. The notice shall be mailed to each person to whom such premises is assessed in the latest equalized assessment roll available on the date the notice is mailed, at the address shown on said assessment roll or as known to the City Manager. A copy of the notice shall also be mailed to the franchised hauler. Said notice shall set forth the amount of delinquent Solid Waste collection service charges, the amount of any late charge thereon, and shall inform the recipient of the possible levy of a special assessment and lien on the premises and administrative charges as provided in this division.

Said notice shall also inform the property owner and tenant of the time, date and place of the administrative hearing and the subsequent public hearing to be conducted by the Common Council, include a link to the webpage on which the administrative hearing order and final report in 8.24.050(F) will be posted and advise the property owner and tenant of his or her right to appear at both the administrative hearing and the public hearing to state his or her objections to the report or the proposed special assessment and lien.

F. Administrative Hearing on Special Assessment and Lien.

At the time and place fixed for the administrative hearing, the City Manager shall hear and consider any objections or protests to his or her report. The City Manager may correct or modify the report as he or she deems appropriate, based upon the evidence presented at the hearing, and shall notify the affected persons of his or herpost a copy of the decision on the City website. The City Manager shall thereupon submit a final report to the Common Council for confirmation and shall furnish post a copy of such final report on the City websiteto all the persons to whom notice was sent pursuant to this division.

G. Public Hearing on Special Assessment and Lien.

The Common Council shall conduct a public hearing to consider the City Manager's final report at the time and place set forth in notice described in Chapter

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any charge shown in the final report or overrule any or all objections as it deems appropriate, based upon the evidence presented at the hearing. If the Common Council is satisfied with the final report as rendered or modified, the Common Council shall confirm such final report by resolution. The decision by the Common Council on the final report and any objections or protests thereto, shall be final and conclusive.

H. Recording of Lien.

Upon confirmation by the Common Council of the final report, the City Manager shall cause to be recorded in the office of the recorder for San Bernardino, a lien against each premises described in the final report for the amount of delinquent Solid Waste collection service charges and late charges as confirmed by the Common Council by resolution. The lien shall also include such additional administrative charges as established by resolution of the Common Council. All affected property owners persons to whom notice was sent pursuant to this division shall be notified by the City Manager that the delinquent Solid Waste collection service charges, late charges and administrative charges are due and payable to the City and that said lien has been recorded.

I. Levy of Special Assessment.

Upon confirmation by the Common Council of the City Manager's final report, as rendered or modified, the delinquent Solid Waste collection service charges, late charges and administrative charges contained therein shall constitute a special assessment levied upon the premises against which such charges have been imposed. The City Manager shall file a copy of the final report, together with a certified copy of the resolution by the Common Council confirming the same, with the tax collector for San Bernardino County with instructions to enter the delinquent Solid Waste collection service charges, late charges and administrative charges as special assessments against the respective premises described in the City Manager's lien report. The tax collector shall include such special assessment on the next regular bill for secured property taxes sent to the property owner.

J. Collection of Special Assessment.

The special assessment shall be collected at the same time in the same manner and frequency and by the same persons as ordinary municipal taxes, and shall be subject to the same interest and penalties and the same procedure of sale as provided for delinquent ordinary municipal taxes. The special assessment shall be subordinate to all existing special assessment liens previously imposed upon the premises and paramount to all other liens except those for state, county and municipal taxes, with which it shall be upon parity. Each special assessment shall continue until all of the delinquent Solid Waste collection service charges, late charges and administrative charges due and payable thereon are paid in full. All laws applicable to the levy, collection and enforcement of municipal taxes shall be applicable to such special assessment.

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Ordinance No. MC-1612
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8 ORDINANCE NO. MC-1612

AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY
OF SAN BERNARDINO, CALIFORNIA, AMENDING SECTION 8.24.050

OF THE SAN BERNARDINO MUNICIPAL CODE REGARDING

NOTIFICATION OF ADMINISTRATIVE HEARING DECISION AND

FINAL REPORT OF DELINQUENT SOLID WASTE CHARGES TO

AFFECTED PERSONS
WHEREAS, the City of San Bernardino, California (“City”), is a chartered city and municipal corporation, duly organized under the California Constitution and laws of the State of California; and
WHEREAS, the San Bernardino Municipal Code section 8.24.050(F) provides that following an administrative hearing to impose a special assessment and lien against a property for unpaid delinquent solid waste charges, the City Manager shall send a copy of the administrative hearing decision and final report of delinquent solid waste charges to both Council and the delinquent property owners and customers; and
WHEREAS, following the administrative hearing, the City mails a letter to property owners and customers with a website link to the order and report; and WHEREAS, the City wishes to amend San Bernardino Municipal Code section

8.24.050(F) to allow the City to provide the website link to property owners and customers in advance, by including the link in the mailed notice of the administrative hearing regarding the proposed special assessment and lien to be imposed against the property receiving solid waste services to provide information more expediently and save on printing and mailing costs.

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

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

SECTION 2.The City Council hereby amends sections 8.24.050 to read in full as follows:

8.24.050 Failure to Pay.

A. Failure to Pay for Solid Waste Collection Service.

B. Notification of Delinquency.

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Ordinance No. MC-1612
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8 1. Customers (owners or tenants) who have not remitted required payment within forty-five (45) days after the date of billing shall be notified by the franchised hauler on forms that contain a statement that if payment is not received within fifteen (15) days from the date of the notice, the delinquent and unpaid charges, including a 10% penalty and 1.5% monthly interest, may be placed on the San Bernardino County annual secured property tax rolls and that any amount owing would then become a lien on the property.

Contractor shall provide such notice to customers via U.S. Mail to the current billing address on file.

C. Assignment of Delinquent Account.

D. Initiation of Special Assessment and Lien.

Upon the City's receipt of the assignment from the franchised hauler, the City Manager shall prepare a report of delinquent Solid Waste collection service charges and initiate proceedings to create a special assessment and lien on the premises to which the Solid Waste collection service was provided. The City Manager shall fix a time, date and place for an administrative hearing by the City Manager to consider any objections or protests to his or her report.

E. Notice of Administrative Hearing on Special Assessment and Lien.

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Ordinance No. MC-1612
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8 and lien on the premises and administrative charges as provided in this division.

F. Administrative Hearing on Special Assessment and Lien.

At the time and place fixed for the administrative hearing, the City Manager shall hear and consider any objections or protests to his or her report. The City Manager may correct or modify the report as he or she deems appropriate, based upon the evidence presented at the hearing, and shall post a copy of the decision on the City website. The City Manager shall thereupon submit a final report to the Common Council for confirmation and shall post a copy of such final report on the City website.

G. Public Hearing on Special Assessment and Lien.

The Common Council shall conduct a public hearing to consider the City Manager's final report at the time and place set forth in notice described in Chapter

8.24.050(E). At such hearing, any interested person shall be afforded the opportunity to appear and present evidence as to why the final report, or any portion thereof, should not be confirmed. The Common Council's review shall be limited to the administrative record and evidence presented at the City Manager's administrative hearing. The Common Council may adopt, revise, reduce or modify any charge shown in the final report or overrule any or all objections as it deems appropriate, based upon the evidence presented at the hearing. If the Common Council is satisfied with the final report as rendered or modified, the Common Council shall confirm such final report by resolution. The decision by the Common Council on the final report and any objections or protests thereto, shall be final and conclusive.

H. Recording of Lien.

Upon confirmation by the Common Council of the final report, the City Manager shall cause to be recorded in the office of the recorder for San Bernardino, a lien against each premises described in the final report for the amount of delinquent Solid Waste collection service charges and late charges as confirmed by the Common Council by resolution. The lien shall also include such additional administrative charges as established by resolution of the Common Council. All affected property owners shall be notified by the City Manager that the delinquent Solid Waste collection service charges, late charges and administrative charges are due and payable to the City and that said lien has been recorded.

I. Levy of Special Assessment.

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Ordinance No. MC-1612
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8 Upon confirmation by the Common Council of the City Manager's final report, as rendered or modified, the delinquent Solid Waste collection service charges, late charges and administrative charges contained therein shall constitute a special assessment levied upon the premises against which such charges have been imposed. The City Manager shall file a copy of the final report, together with a certified copy of the resolution by the Common Council confirming the same, with the tax collector for San Bernardino County with instructions to enter the delinquent Solid Waste collection service charges, late charges and administrative charges as special assessments against the respective premises described in the City Manager's lien report. The tax collector shall include such special assessment on the next regular bill for secured property taxes sent to the property owner.

J. Collection of Special Assessment.

SECTION 3.Effective Date. This Ordinance shall take effect thirty (30) days after its adoption.

SECTION 4.Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this ordinance, or any part thereof, is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause or phrase be declared unconstitutional. If for any reason any portion of this Ordinance is found to be invalid by a court of competent jurisdiction, the balance of this Ordinance shall not be affected.

SECTION 5.Certification. 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.

SECTION 6.CEQA. The City Council finds that this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines (California Code of Regulations, Title 14, Chapter 3) because it has no potential for resulting in physical change to the environment, directly or indirectly.

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Ordinance No. MC-1612
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8 APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this XXth day of , 2023.
__________________________________
Helen Tran, 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-1612
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8 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-1612, introduced by the City Council of the City of San Bernardino, California, at a regular meeting held the 1 st day of March 2023. Ordinance No. MC-1612 was approved, passed and adopted at a regular meeting held the XX day of , 2023 by the following vote:

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PUBLIC HEARING
City of San Bernardino
Request for Council Action
Date: March 1, 2023
To: Honorable Mayor and City Council Members
From: Charles E. McNeely; Nathan Freeman, Agency Director of Community, Housing, and Economic Development
Department: Community, Housing, & Economic Development (CED) Subject: Public Hearing on Annexation No. 31 to Community Facilities District 2019-1 (Ward 3)
Recommendation:

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

1. Hold a Public Hearing; and

2. Adopt Resolution No. 2023-040 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. 31); and

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

4. Adopt Resolution No. 2023-041 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. 31); and

5. Introduce, read by title only, and waive further reading of Ordinance No. MC-1613 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 2023-2024 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

6. Schedule the adoption of Ordinance No. MC-1613 for March 15, 2023.

Background
On January 18, 2023, the Mayor and City Council adopted Resolution No. 2023-017, 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”),

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pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”. A public hearing was set for March 1, 2023, 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 January 19, 2023, at 1:24 p.m. in Book 90 Page 92, Document No. 2023-0013741 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 13.28 gross acres of a zoned commercial property within the City, requesting that the City assist them in annexing their property into CFD No. 2019-1 under the Mello-Roos Act. The proposed project will consist of a truck and trailer parking facility. 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. Public lighting and appurtenant facilities, including streetlights within public rights- of-way and traffic signals; and

2. Maintenance of streets, including pavement management; and

3. 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 32 and is located north of W Rialto Ave and east of N Rancho Ave, as shown in Attachment #12.

The maximum annual special tax for this development has been calculated to be $452 per acre for FY 2023/24. This tax rate includes a Maximum Special Tax A of $358 per acre per year for maintenance services of public facilities and a Maximum Annual Special Tax B (Contingent) of $94 per acre per year. Special Tax B (Contingent) is for the maintenance and operation of the improvements described in Exhibit “B” attached hereto. If the Property Owners Association (POA) were to default of its obligation to maintain such improvements, the City would be able to collect funds to pay for those services. Annual Special Tax A and Annual Special Tax B (Contingent) rate are 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 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.

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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 January 18, 2023. •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 second reading of the amended Ordinance would be scheduled for March 15, 2023.

Discussion
The Resolution of Intention called for a public hearing to be held on March 1, 2023, 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. 2023-040 it may immediately proceed to the opening of the ballots and adopt Resolution No. 2023-041 declaring the results of the election.
2021-2025 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

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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. It is estimated, upon full completion of the development, there will be an annual collection of special tax revenues of approximately $4,760 from Special Tax A to be used to pay for maintenance costs within the development.

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

1. Hold a Public Hearing; and

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

6. Schedule the adoption of Ordinance No. MC-1613 for March 15, 2023.

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Attachments
Attachment 1 - Resolution No. 2023-040- 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. 2023-041- Resolution Declaring Election Results Attachment 6 - Exhibit A Certificate of Election Results Attachment 7 – Ordinance No. MC-1613
Attachment 8 - Exhibit A Description of Services
Attachment 9 - Exhibit B Parcel List
Attachment 10 – Signed Petition and Waiver
Attachment 11 - PowerPoint Presentation
Attachment 12 - Project Map
Ward:

Third Ward
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 “Mello-Roos 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.

January 18, 2023: Mayor and City Council adopted Resolution No. 2023-017, 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. 2023-040

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.
31)
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 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 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 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 City Council on January 18, 2023, duly adopted Resolution No. 2023- 017 (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 March 1, 2023; and
WHEREAS, the territory proposed to be annexed is identified in a map entitled "Annexation Map No. 31 Community Facilities District No. 2019-1 (Maintenance Services)" a copy of which was recorded, on January 19, 2023, in Book 90 of Maps of Assessment and Community Facilities Districts at Page 92, in the office of the San Bernardino County Recorder; and

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WHEREAS, pursuant to the Act and the Resolution of Intention, a noticed public hearing was convened by the City Council on March 1, 2023, 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 March 1, 2023, 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 and 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 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 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 City Council reconfirms all of its findings and determinations as set forth in the Resolution of Intention.

SECTION 3.Findings Regarding Protests. The City Council finds and determines that written protests to the proposed annexation of territory to the CFD No. 2019-1 and the levy of the

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special tax within such territory are insufficient in number and in amount under the Act, and the City Council hereby further orders and determines that all such protests are hereby overruled.

SECTION 4.Findings Regarding Prior Proceedings. The City Council finds and determines that all prior proceedings had and taken by the 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 92410, 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 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 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 March 1, 2023, and shall be conducted as follows:
(a) Qualified Electors. The 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 January 4, 2023 (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 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.

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(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 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 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 March 1, 2023. 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 March 1, 2023, 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 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 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 ____ day of ____________ 2023.

Helen Tran, 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. 2023-040, adopted at a regular meeting held on the ___ day of _______ 2023 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 Serv ices) (the “CFD No. 2019-1”) Annexation No. 31 is currently comprised of one (1) parcel, located within the City boundaries. The property is identified by the following San Bernardino County Assessor's Parc el Number (APN).

APN Owner Name
0142-211-29 Elliot Precision Block Co.

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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 prep aring the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs to 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 inqui ries regarding the Special Tax es; 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 s alaries 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 Coun ty 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 P OA 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 et seq.) 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 1 st 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 determin ed 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 Pr operty 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. 201 9-1 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 limite d 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 circu mstances 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 bui lding 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 a n 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 Un its 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

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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 is identified 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, 20 20 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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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, 20 20 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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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, 20 20 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 Cate gory. 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

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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: I f 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 b een 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

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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 S pecial 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: I f 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 purposes set 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 det ermined 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. 201 9-1 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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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.

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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 2023-24. These services are being funded by the levy of Special Tax A for Community Facilities District No. 2019-1.

TAX ZONE 32
PM 20334

Item Description Estimated Cost
1 Lighting $300
2 Streets $3,415
3 Reserves $45
4 Admin $1,000
Total $4,760

Special Tax B Contingent Services – The estimate in the table below breaks down the costs of providing one year’s contingent maintenance services for Fiscal Year 2023-24. If necessary, these services will be funded by the levy of Special Tax B (Contingent) for Community Facilities District No. 2019-1 Tax Zone 32.

TAX ZONE 32 (CONTINGENT SERVICES)
PM 20334

Item Description Estimated Cost
1 Streets $242
2 Admin $1,000
Total $1,242

TAX ZONE 32
FY 2023-24 MAXIMUM SPECIAL TAX RATES

DEVELOPED PROPERTY AND APPROVED PROPERTY

Land Use
Category
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Non-Residential Property Acre $358 $94

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TAX ZONE 32
FY 2023-24 MAXIMUM SPECIAL TAX RATES

UNDEVELOPED PROPERTY

Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Acre $358 $94

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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 22 LM 2021-013 2022-23 $807 / Acre $0 / Acre SBABP IV, LLC 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 24 25 TR 20494 2022-23 $174 / RU $17 / RU PI Properties, LLC 25 26 TR 20495 2022-23 $204 / RU $45 / RU Pacific West Company, et al. 26 To Be Determined
27 28 PM 20320 2022-23 $1,851 / Acre $292 / Acre SB Drake Central Avenue LLC 28 29 TR 17329 2023-24 $347 / RU $0 / RU Verdemont Ranch 20, LLC 29 30 LL 2022-11 2022-23 $922 / Acre $372 / Acre CIVF VI – CA1W01, LLC 30 31 PM 20143 2022-23 $2,957 / Acre $1,855 / Acre California Cajun Properties LLC 31 32 PM 20334 2023-24 $358 / Acre $94 / Acre Elliott Precision Block Co. 32 33 PM 3613,
4230 & 4250 2022-23 $1,094 / Acre $186 / Acre S.B. Universal Self Storage LLC

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Annexation
Tax
Zone
Tract
APN
Fiscal
Year
Maximum
Special Tax A
Maximum
Special Tax B

Subdivider
33 34 PM 20392 2023-24 $2,785 / Acre $158 / Acre GWS#7 Development, LLC 34 35 CUP 21-16 2023-24 $533 / Acre $193 / Acre MLG SB Land LLC & Grandfather’s Land Holdings LLC

ESCALATION OF MAXIMUM SPECIAL TAXES
On each July 1, commencing on July 1, 20 20 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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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. 201 9-1, 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. Mainte nance 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 pollut ants 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, 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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APPENDIX C

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

PROPOSED BOUNDARIES AND POTENTIAL ANNEXATION AREA BOUNDARIES

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EXHIBIT C

CITY OF SAN BERNARDINO

COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 31

(March 1, 2023)
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:

Name of Landowner Number of Acres Owned Total Votes
Elliot Precision Block Co. 13.28 14

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. 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:

Mail
Delivery: If by mail, place ballot in the return envelope provided, and mail no later than February 15 , 2023, 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 March 1, 2023, 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 March 1, 2023.

Very truly yours,

Genoveva Rocha, CMC, City Clerk

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TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

OFFICIAL SPECIAL TAX BALLOT

Name & Address of Property Owner: Assessor’s Parcel Number(s):

Elliot Precision Block Co.

Attn: Melvin G. Elliot
157 N. Rancho Ave.

San Bernardino, CA 92410

0142-211-29

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 January 18, 2023 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 31 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__.

Melvin G. Elliot
President

Signature

Print Name

Title

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Resolution No. 2023-041
Resolution No. 2023-041
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RESOLUTION NO. 2023-041

RESOLUTION 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. 31)
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 No. 2023-041 calling a special election for March 1, 2023, 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 March 1, 2023, 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

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Resolution No. 2023-041
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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. 2023-017 adopted by the Mayor and City Council on January 18, 2023. The boundaries of the territory annexed are shown on the map entitled, "Annexation Map No. 31 Community Facilities District No. 2019-1 (Maintenance Services)" a copy of which was recorded, on January 19, 2023, in Book 90 of Maps of Assessment and Community Facilities Districts at Page 92, 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 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 ___ day of __________ 2023.

Helen Tran, 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. 2023-041
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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. 2023-041, adopted at a regular meeting held on the ___ day of _______ 2023 by the following vote:

Genoveva Rocha, CMC, City Clerk

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EXHIBIT A

CITY OF SAN BERNARDINO
COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 31

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, dated January 4, 2023, 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 measure, the measure has therefore passed.

Landowner
Qualified
Landowner Votes Votes Cast YES NO
Elliot Precision Block Co. 14 14
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 ____________, 2023.

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

(Attach completed copies of Waiver/Consent and Ballot)

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Ordinance No. MC-1613
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0 ORDINANCE NO. MC-1613

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 2023-2024 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 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 March 1, 2023, at the time and place specified in said published and mailed notice, the 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 City Council adopted resolutions entitled "Resolution of the 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 within the District on

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Ordinance No. MC-1613
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0 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 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 2023-2024, 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 _______, 2023.

Helen Tran, Mayor
City of San Bernardino

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Ordinance No. MC-1613
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0 Attest:

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

Sonia Carvalho, City Attorney

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0 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-1613, introduced by the City Council of the City of San Bernardino, California, at a regular meeting held the ____ day of ______, 2023. Ordinance No. MC-1613 was approved, passed and adopted at a regular meeting held the ____ day of ______, 2023 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 inc lude all costs attribut able 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 simila r 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 inc lude, without lim itation, 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 s ituated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal fr om and maintenance and repair of public struc tures situated on parks, parkway s, streets, roads and open space; maintena nce and repair of playground or recreation program equipment or facilities situated on any park; and (b) maintenance and operation of water qualit y 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 replac ement 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 appur tenant facilities, clearing of inle ts and outlets; erosion repairs; and cleanup to improvements, and other it ems 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 s ubdivisions 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 pr ovided 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 2023-24
(Effective as of March 15, 2023)

ASSESSOR'S PARCEL NUMBERS
Annexation Owner Assessor's Parcel Numbers
Original Formation Cauffman Family Trust 4/20/98
0142-811-01 thru -13 and
0142-811-14
Cauffman Family Trust 5/4/11 0142-041-52
1 17329, LLC 0261-031-10, -13, 0261-771-01
thru -29 and 0348-111-52
2 GWS #4 Development, LLC 0141-431-24
3 Devore Storage Facility, LLC 0266-041-39
4 TH Rancho Palma, LLC
0261-761-01 thru -65 and
0261-762-01 thru -72
5 Strata Palma, LLC 0261-182-41
6 San Bernardino Medical Center, LLC 0147-114-20 and -21 7 ICO Fund VI, LLC
0281-441-01 thru -56 and
0281-442-01 thru -55
8 TR 2600 Cajon Industrial LLC 0148-122-04
9 Central Commerce Center, LLC 0280-151-29
10 Lankershim Industrial, LP 1192-311-01
11 Prologis, LP
0137-011-01, -31, 0137-051-27,
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 0134-054-33, -40, -44
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 SBABP IV, LLC 0136-371-36, -37, -40, -43
22 1300 E Highland Ave LLC 0150-471-04, -05, -06, -07, -08 23 Vone SB, LLC 0272-161-17 and -18
24 PI Properties, LLC 0143-191-59
25 Pacific West Company, Chenmei
Cheng, Ann C. Lau, and Hanhsing Li 0285-211-05, -21, -22, -23, -25

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Annexation Owner Assessor's Parcel Numbers
26 To Be Determined
27 SB Drake Central Avenue, LLC 0280-032-07 thru -11, -13, -14, - 15, -37 and -38
28 Verdemont Ranch 20, LLC 0348-111-51
29 CIVF VI – CA1W01, LLC 0280-051-11, -12, -15
30 California Cajun Properties LLC 0261-182-43
31 Elliott Precision Clock Co. 0142-211-29
32 S.B. Universal Self Storage LLC 0266-021-17, -18, -27, -32, -33, -34, -38, -39, -40, -41
33 GWS #7 Development LLC 0280-171-13, -14, -15, -16, -18, -19 and 0280-191-05 thru -10
34 MLG SB Land, LLC &
Grandfather’s Land Holdings, LLC 0280-091-27

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Public Hearing
CFD No. 2019-1 Annexation No. 31:

PM 20334 (Elliott Precision Block Co.)

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Public Hearing on CFD 2019-1 Annexation No. 31
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:
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; and

2. Upon approval of the preceding resolutions, Introduce, read by title only, and waive further reading of Ordinance No. MC-____ amending Ordinance No MC-1522 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 adoption of the Amended Ordinance for March 15, 2023.

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Public Hearing on CFD 2019-1 Annexation No. 31
Discussion:
• The Property Owner, Elliott Precision Block Co., 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. 31 includes one (1) parcel, APN 0142-211-29. • On January 18, 2023 the City Council adopted Resolution No. 2023-017, a Resolution of Intention to annex these properties into CFD No. 2019-1 and hold a Public Hearing on March 1, 2023. The property owner consented to waiving certain time restriction and conduct the election the same night.
• The proposed maximum annual tax of $358 per acre for Special Tax A will be included in CFD No. 2019-1 as Tax Zone 32.
• 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. 31
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 streetlights 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.

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Project Location

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Public Hearing on CFD 2019-1 Annexation No. 31
Fiscal Impact:
• It is anticipated that at build-out the total Special Tax revenues to pay for maintenance costs will be approximately $4,758. 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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PENSYLVANIA
AVE
RANCHO

AVENARANGA ST

RIALTO AVE
^_
£¤66

MILL ST
16TH ST

SPRUCE ST

SIERRA W

AYNINTH ST

CAMPUS WAY
2ND ST

MAGNOLIA AVE

ORANGE SHOW RD
4TH STRANCHO AVE
17TH ST

BASE LINE ST

SECOND ST

PEPPER AV

PACIFIC ST

CEDAR AVE

TIPPECANOE ST

CENTRAL AVE
M

ERIDIAN AVE

SAN BERNARDINO AVE
M

T VERNON AVE

NORMAN RD

PENNSYLVANIA AVE
W
ATERM
AN AVE

CITRUS AVE

EUCALYPTUS AVE

ACADEMY ST
M
T.VIEW
AVE

COLTON AVE

REDLANDS BLVD

MILL ST
§¨¦
215
£¤66
CFD NO. 2019-1 (MAINTENANCE SERVICES)
ANNEXATION NO. 31

PROJECT MAP

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PUBLIC HEARING
City of San Bernardino
Request for Council Action
Date: March 1, 2023
To: Honorable Mayor and City Council Members
From: Charles E. McNeely, Interim City Manager;
Nathan Freeman, Agency Director of Community, Housing,
and Economic Development
Department: Community, Housing, & Economic Development (CED) Subject: Substantial Amendment to the Fiscal Year 2022-2023 Annual Action Plan – HOME Investment Partnership
American Rescue Plan Program (HOME-ARP) (All Wards)
Recommendation:

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

1. Conduct a Public Hearing of the draft HOME Investment Partnership Allocation and Substantial Amendment to the Fiscal Year 2022-2023 Approved Action Plan; and

2. Authorize the Interim City Manager, or his designee, to execute any further documents as may be necessary to effectuate the submittal of the Substantial Amendment to the Fiscal Year 2022-2023 Action Plan.

Background
On March 11, 2021, the American Rescue Plan Act of 2021 (ARP) was signed into law.

To address the need for homelessness assistance and supportive services, $5 billion in federal ARP funds were appropriated to be administered through the federal HOME Investment Partnerships Program (HOME).

On April 8, 2021, the U.S. Department of Housing and Urban Development (HUD) allocated HOME-ARP funds to grantees using the HOME formula established in 24 CFR 92.50 and 92.60. As a recipient of HOME funds, the City of San Bernardino (City) is eligible to receive a HOME-ARP allocation in the amount of $5,058,437.

On July 20, 2022, the Mayor and City Council conducted a public hearing and adopted the Fiscal Year 2022-2023 Annual Action Plan as an application for funding under Community Development Block Grant (CDBG), Home Investment Partnerships (HOME), and Emergency Solutions Grant (ESG) programs. Per 24 CFR 570.200(h) and 24 CFR 92.212(b), the City is required to amend the Fiscal Year 2022-2023 Annual Action Plan as a request for HOME-ARP pre-award costs.

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HOME-ARP funds can be used to fund activities that primarily benefit qualifying individuals and families who are homeless, at risk of homelessness, or in other vulnerable populations. These activities include:
•Development and support of affordable housing;
•Tenant-based rental assistance (TBRA);
•Provision of supportive services; and
•Acquisition and development of non-congregate shelter units.

To receive its HOME-ARP funds, in addition to amending the 2022-2023 Annual Action Plan, the City must also engage in a consultation and public participation processes, develop a HOME-ARP allocation plan that meets the HUD requirements, and submit it to HUD as a substantial amendment to the City’s Fiscal Year 2022-2023 Annual Action Plan. Specifically, the HOME-ARP allocation plan must describe how the City intends to distribute HOME-ARP funds, including how it will use these funds to address the needs of HOME-ARP qualifying populations.

On February 1, 2023, the Mayor and City Council adopted Resolution No. 2023-028 declaring a Homelessness State of Emergency. It is anticipated that HOME-ARP funds will provide additional financial resources to support the unhoused community by providing low-barrier shelter access, supportive services, and case management.

Discussion
In accordance with the City’s Citizen Participation Plan, a substantial amendment to the Annual Action Plan is required when the City:
•Changes allocation priorities.
•Expects to carry out a new or existing activity while using funds that have not been covered by the Consolidated Plan or included in the approved Action Plan. •Change the purpose, scope, location, or beneficiaries of an activity (any activity whose funding allocation is increased by more than 50% will constitute a substantial amendment).

The City intends to allocate an additional $4,299,672 of HOME-ARP funds to assist in the financial support needed in the designing, construction, and operation of the City’s future Navigation Center. The Navigation Center will assist the City’s vulnerable homeless populations with income stabilization services, job training, mental health services, case management, and non-congregate shelter units. The HOME-ARP Program allows for up to 15% ($758,766) of the funds to be utilized for program administration.

Lastly, the Navigation Center activity is aligned with the City’s Consolidated Plan, Continuum of Care initiatives to provide emergency, temporary accommodations for the City’s homeless populations in the City of San Bernardino.

Lastly, the City will address and incorporate comments received during the 30-day

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public commenting time-frame between February 6, 2023, and March 7, 2023 and a public hearing will be held on March 1, 2023. The item will return to the Mayor and City Council on March 15, 2023 for approval.

2021-2025 Strategic Targets and Goals
Submittal of the Substantial Amendment and HOME-ARP Allocation Plan aligns with Key Target No. 1: Improved Operational & Financial Capacity, by securing a funding allocation for housing, and Key Target No. 3: Improved Quality of Life, by securing additional funds to reduce the burden of homelessness through engagement, collaboration, and alignment with other entities.

Fiscal Impact
There is no fiscal impact to the General Fund associated with this report.

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

1. Conduct a Public Hearing of the draft HOME Investment Partnership Allocation and Substantial Amendment to the Fiscal Year 2022-2023 Approved Action Plan; and

Attachments
Attachment 1 FY 2022-2023 Action Plan
Attachment 2 Draft FY2022-2023 Substantial Amendment
Attachment 3 Draft HOME-ARP Allocation Plan
Attachment 4 Resolution No. 2023- Proclaiming Homelessness Local Emergency
Ward:

All Wards
Synopsis of Previous Council Actions:

July 20, 2022 The Mayor and City Council conducted a Public Hearing and adopted the Fiscal Year 2022-2023 Annual Plan as an
application for funding under Community Development Block Grant (CDBG), Home Investment Partnerships (HOME), and
Emergency Solutions Grant (ESG) programs and authorized the City Manager or designee to take any further actions and execute any further documents as are necessary to effectuate the submittal of the Draft HUD Fiscal Year 2022-23 Annual Action Plan and Certification to HUD.

June 15, 2022 The Mayor and City Council of the City of San Bernardino, California, conduct public hearing No. 1 on the review of the

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draft Fiscal Year 2022-2023 Annual Action Plan (AAP)
associated with the Community Development Block Grant,
HOME Investment Partnerships and Emergency Solutions
Grant Programs.

February 1, 2023 The Mayor and City Council approved Resolution No. 2023- 028 Declaring a Homelessness State of Emergency.

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Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)

1. Introduction
Each year, the US Department of Housing and Urban Development (HUD) provides funding for housing and community development programs to the City of San Bernardino, specifically Community Development Block Grant (CDBG) and other federal housing funds. To receive these funds, the City must complete a report every five years called the Consolidated Plan. The Consolidated Plan is carried out through Annual Action Plans, which provide a concise summary of the actions, activities, and the specific federal and non-federal resources that will be used each year to address the priority needs and specific goals identified by the Consolidated Plans.

The City is an entitlement jurisdiction and will receive the following federal grants:
•Community Development Block Grant (CDBG)
•HOME Investment Partnerships Program (HOME)
•Emergency Solutions Grant (ESG)

2. Summarize the objectives and outcomes identified in the Plan This could be a restatement of items or a table listed elsewhere in the plan or a reference to another location. It may also contain any essential items from the housing and homeless needs assessment, the housing market analysis or the strategic plan.

The City of San Bernardino has identified a range of housing and community development needs in accordance with the structure presented in HUD regulations affordable housing, homelessness, and non-housing community development. Priority is assigned based on the level of need demonstrated by the data collected during the plan preparation, specifically in the Needs Assessment and the Market Analysis, the information gathered during the consultation and citizen participation process, and the availability of resources to address these needs. Based on these components, housing needs are considered a high priority, particularly low-income ownership housing and transitional housing with supportive services for the homeless population. Out of the top ten priority needs, the feedback from citizen participation indicated that the top four pressing concerns of the City are:
•Homelessness and homelessness issues (i.e., supportive housing) •Access to affordable housing
•Street infrastructure (i.e., road maintenance and street lighting)

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•Joblessness/job creation
Priorities Objectives/Goals
The following goals outlined in the Consolidated Plan and to be implemented during the FY 22-23 Annual Action Plan are listed below:

1.Promote Economic Development: Repayment of debt service for the Arden Guthrie Project which will create 214 jobs.

2.Fair Housing: Support fair housing services, landlord/tenant mediation, and housing counseling services.

3.Expand Homeownership Opportunities: Fund construction of three (3) single family homes, city-wide where opportunities exist for infill housing for low to moderate income households whose incomes will range from 50% to 80% of Area Median Income (AMI).

4.New Affordable Housing Construction or Rehabilitation: Assist with new affordable housing construction or rehabilitation projects.

5.Improve Facilities and Infrastructure: Improve selected streets resulting from new Infill Housing projects. The following streets will be improved: 10th between F Street and G Street (1st Ward)- multiple APN- 30,000 SF; 49th Street between Sepulveda Avenue and End (4th Ward)- Multiple APN- 65,000 SF; Rialto Avenue from Mt. Vernon and Muscott to Bridget (3rd Ward) Multiple APN-180,000 SF.

Summary of some of the findings used to determine priority needs •222,101 persons reside in San Bernardino (US Census Bureau 2020) comprising of 59,770 households.
•Approximately 23.7% live in poverty
•San Bernardino County homeless count data have indicated a need to support programs that serve people experiencing homelessness. The 2020 PIT count for the City is 1,056 which accounts for 34% of San Bernardino County’s total count. •City provides for and residents benefits from participating in homelessness and homelessness issues (i.e., supportive housing), access to affordable housing, street infrastructure (i.e., road maintenance and street lighting) and joblessness/job creation. •The creation City uses CDBG funds for public services, public facilities and improvements, housing activities, and planning and administrative costs. The CDBG program’s primary objective is to develop viable urban communities by providing decent housing, a suitable living environment, and economic opportunities, principally for persons of low and moderate income.

Funds can be used for a wide array of activities, including housing rehabilitation, homeownership assistance, lead-based paint detection and removal, construction or rehabilitation of public facilities and infrastructure, removal of architectural barriers, public services, rehabilitation of commercial or industrial buildings, and loans or grants to businesses.

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3. Evaluation of past performance
This is an evaluation of past performance that helped lead the grantee to choose its goals or projects.

Preserve and rehabilitate existing single-family dwellings – The Owner-Occupied Housing Rehabilitation Program provided financial assistance to income-qualified, San Bernardino homeowners for repairs to their homes. The program serviced five owner occupied Housing Rehabilitation projects.

Expand Homeownership opportunities and assist homebuyers with the purchase of affordable housing In FY 21-22, the City completed the construction on Three (3) homes on an infill lot to create affordable housing opportunities. This program improves neighborhoods by utilizing vacant and blighted lots for new owner-occupied housing. The City and their CHDO partner, Neighborhood housing Partnership Services, are marketing these affordable units for sale to households at 50% to 80% of AMI for the County of San Bernardino.

Provide Supportive Services - Homeless / Non-Homeless Special Needs - In FY 21-22, the City utilized HOME program income for the Arrowhead Grove, formerly known as Waterman Gardens Public Housing Community, for phase 2 of the multi-phase Rental Assistance Demonstration (RAD) project. Phase two entails the building of 147 affordable units for mixed-income family apartments to households with 30% to 60% of AMI.

Promote Economic Development - In partnership with the Inland Empire Small Business Development Center, the City promoted and hosted small business/entrepreneur workshops. 12 San Bernardino small businesses were assisted. Due to the COVID-19 pandemic, workshops had to be postponed.

Improve Public Facilities and Infrastructure - In FY 21-22, the City worked on the following projects which are expected to be completed by September of 2022: 532 Ramona Avenue (Ward 1); 2129 Wall Avenue (Ward 2); 938 N. G Street (Ward 2); 140 W. 13th Street (Ward 2); 2060 E. 18th Street (Ward 7); Grape Street (Walnut and Mill) (Ward 3); and Davidson Avenue (Baseline to 14th) (Ward-6).

Fair Housing - The Inland Fair Housing and Mediation Board provided landlord-tenant counseling and other fair housing services to eliminate identified impediments to fair housing through education, enforcement, and testing to approximately 3,300 persons in the City.

Planning and Administration: Provided funds for planning and administration of CDBG, HOME and ESG.

Provide rental assistance and preserve existing affordable rental housing - In FY 21-22, 105.4 units were monitored and 75.8 were physically inspected to ensure units remained affordable and habitable.

Expand the affordable housing inventory through new construction - In FY 21-22, the fourth phase of construction commenced on the site of the former Waterman Gardens Public Housing community (now

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called Arrowhead Grove), which resulted in a total of 184 mixed-income family apartments. Arrowhead Grove will provide 147 affordable one- to four-bedroom family units with an additional 35 market-rate units interspersed across the site and two units for property managers. In addition to the new units constructed, a new traffic signal and bus shelter were installed.

4. Summary of Citizen Participation Process and consultation process Summary from citizen participation section of plan.

The development of the action plan was aligned with the goals of the Consolidated plan. To solicit public input during the development of the Consolidated Plan, the City conducted the following meetings:
•Virtual Community Workshop.
•Stakeholder Interviews; and
•Online Survey.

The Action Plan will be discussed in a publicly noticed meeting where opportunity for public comment is provided. The first public hearing for the draft FY 22-23 Annual Action Plan to City Council was held on June 15, 2022. The draft plan will be made available for public review between June 15, 2022, and July 20, 2022 on the City's website. The public review period for the Draft 2022-23 Action Plan will be published in the Sun (English), and El Chicano (Spanish).

5. Summary of public comments
This could be a brief narrative summary or reference an attached document from the Citizen Participation section of the Con Plan.

The top three infrastructure needs that were identified in the Consolidated Plan were street improvements, street lighting, and tree planting/urban greenery. City-facility needs identified were community centers, park and recreational facilities, and youth centers. For housing needs, the top three identified were:

1. First-time home buyer assistance

2. Owner-occupied rehabilitation

3. Renter-occupied housing rehabilitation
Respondents also identified two primary homeless needs:

1. Permanent supportive housing with social services
Transitional housing (short-term up to 6 months

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6. Summary of comments or views not accepted and the reasons for not accepting them No comments or views were not accepted by the City.

7. Summary
The City has taken diligent and good faith efforts to reach all segments of the community that may benefit from the City’s CDBG, HOME, and ESG programs. PR-05 Lead & Responsible Agencies – 91.200(b)

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PR-05 Lead & Responsible Agencies – 91.200(b)

1. Agency/entity responsible for preparing/administering the Consolidated Plan Describe the agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.

Agency Role Name Department/Agency
Lead Agency SAN BERNARDINO
CDBG Administrator SAN BERNARDINO Community and Economic Development Department HOPWA Administrator
HOME Administrator SAN BERNARDINO Community and Economic Development Department ESG Administrator SAN BERNARDINO Community and Economic Development Department HOPWA-C Administrator

Table 1 – Responsible Agencies
Narrative (optional)
The City’s Community and Economic Development Department administers, implements, and monitors activities and projects funded through the federal grants. The Community and Economic Development Department is responsible for developing and carrying out the priorities and goals established in the Consolidated Plan. In addition, the Department works collaboratively with the Public Works Department, City Parks and Recreation Department, City Manager’s Office, City Council, and the CDBG Ad Hoc Committee to develop goals and priorities for the current year that is aligned with the Consolidated Plan and address the needs of the residents of San Bernardino.

Consolidated Plan Public Contact Information
For matters concerning the City of San Bernardino’s CDBG, HOME, and ESG programs, please contact:

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Ms. Marim Fam
Finance Department
201 N. E Street, 3rd Floor
San Bernardino, CA 92418
(909) 384-5345
[email protected]

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AP-10 Consultation – 91.100, 91.200(b), 91.215(l)

1. Introduction
The City views the Consolidated Plan and Annual Action Plan as an opportunity to engage the community in the CDBG, HOME, and ESG investment process. The City encourages their residents to voice their needs and concerns regarding homelessness, affordable housing, and community development. All members of the public, especially those living in low- and moderate-income neighborhoods, are encouraged to participate in the planning stages. The goal of the consultation process was to gather data to help determine the priority needs. The City also coordinates and collaborates with various service providers to identify specific needs or certain vulnerable populations.

Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l))
•The City has been working in partnership with the Housing Authority of the County of San Bernardino (HACSB) and County Community Development and Housing Agency to redevelop 251 units of public housing at the former Waterman Gardens public housing project (now known as Arrowhead Grove). The City is also working in partnership with National CORE, an Inland Empire CHDO, and the Housing Authority of the County of San Bernardino in the development of Arrowhead Grove.
•The City partners with Neighborhood Partnership Housing Services (NPHS), a CHDO, for the administration of an owner-occupied, single family rehabilitation program. •Housing Partners I, also a CHDO, and NPHS partners with the City to build new single family, ownership housing on vacant and blighted lots throughout the city, in order to increase homeownership among households at and below 80% of Area Median Income. •The City coordinates with the County Department of Behavioral Health (DBH) in an ongoing exchange of information and resources available to persons who are experiencing homelessness and mental health crises. The City has also partnered with DBH in the Golden Apartments project where DBH provides the case management services for the formerly homeless residents who live with mental illness.
•The City has also been working on investment strategies for housing and health with Dignity Health. Dignity Health’s Community Investment program provided a $1.2 million dollar loan for the construction (which is currently underway) of Arrowhead Grove Phase 3, which will result in the construction of a 184 mixed income development, with 147 units reserved for low-income households.
•The City has been consulting with the Housing Authority of the County of San Bernardino and the Community Development and Housing Agency of the County of San Bernardino concerning lead-based paint hazards as it relates to rehabilitation of owner-occupied single-family homes. The City has also consulted with HUD’s environmental office regarding lead-based paint

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and staff attended the most recent lead-based paint training provided onsite at the HUD Los Angeles office.
•The City has been in coordination with the San Bernardino Unified School District with their Uplift San Bernardino initiative. Uplift San Bernardino is focused on the future of the youth community, such as launching the future workforce into local jobs; ignite Upward Mobility in the community; convene leadership work groups to change systems & policies; effectively inspire community voice & engagement to inform better decisions & increase access to opportunities especially for youth; create shared understanding of issues & opportunities based on research & data; mobilize people and resources to fill in gaps identified between systems and promote accountability through a transparent history of Uplift’s decisions, progress, & learning.

Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness.

The City recognizes the needs to address people experiencing homelessness, particularly the chronically homeless populations. The City collaboratively works with four entities throughout the County of San Bernardino. The following entities are:
1) Interagency Council on Homelessness
2) Homeless Provider Network
3) Central Valley Steering Committee
4) San Bernardino County Behavioral Health Administration, Office of Homeless Services These entities comprise of policy-making bodies, advisory groups of faith-based and non-profit housing organizations, collaborative organization among City jurisdictions, and committees established specifically to assist those experiencing homelessness. The “10-Year Strategy to End Homelessness in San Bernardino County” guides the actions and serves as a blueprint to end homelessness in the County of San Bernardino.

Concurrently, the City of San Bernardino also actively participates in the Continuum of Care (CoC) and is fully supportive of the objectives of the 10-Year Strategy to End Homelessness in San Bernardino County plan. Bessine Richard represents the City on the board of the Interagency Council on Homelessness. The City’s Police Department support and participates in the Point-in-Time (PIT) Homeless County. The Community & Economic Department requires their ESG subrecipients to participate in the CoC’s Homeless Management Information System (HMIS). This software application is designed to collect client-level data and data on the provision of housing and services to homeless individuals, families, and person at-risk of homelessness. Lastly, the City funds four organizations through the ESG programs that provide street outreach, emergency shelter, homeless prevention services, rapid rehousing and HMIS.

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Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS The City closely works with the CoC and attends its regularly scheduled meetings and trainings in the area of homelessness. The City consults with the Interagency Council on Homelessness (ICH), which has not less than one former homeless member, in regard to funding recommendations. The discussions at the ICH meetings are comprised of updates on HMIS and a monthly data quality report is provided illustrating the number of clients enrolled in the non-profit organizations using HMIS. The updates are helpful in evaluating the outcomes of projects and activities assisted with ESG. Other topics of discussion include presentations to the Office of Homeless Services on activities from the San Bernardino County Reentry Collaborative regarding workshop meetings to discuss updating their strategic plan, and a Community Recidivism Reduction Program. A Veterans Initiative from the Housing Authority of the County of San Bernardino (HACSB) has continued to develop creative and effective ways to address the needs of the County’s homeless veterans. Over the past year, HASCB, along with the support and efforts of our affiliate non-profits, KEYS and HP1 Inc., has created housing opportunities for homeless veterans.

2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdiction’s consultations with housing, social service agencies and other entities

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Table 2 – Agencies, groups, organizations who participated Agency/Group/Organization Dignity Health St Bernardine Medical Center Agency/Group/Organization Type Health Agency
Major Employer
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Non-Homeless Special Needs
1 Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
The organization was interviewed by the City of City of San Bernardino and participated in a community workshop. The anticipated outcomes are increased commitment to affordable housing/economic investment in the community.

Agency/Group/Organization Neighborhood Partnership Housing Services, Inc. (NPHS) Agency/Group/Organization Type Housing
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Non-Homeless Special Needs
2 Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
The organization was interviewed by the City of San Bernardino. The anticipated outcomes are increased commitment to affordable housing and infrastructure investment in the community.

Agency/Group/Organization Lutheran Social Services of Southern California Agency/Group/Organization Type Services - Housing
What section of the Plan was addressed by
Consultation?
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
3 Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
The organization was interviewed by the City of San Bernardino. The anticipated outcomes are increased commitment to affordable housing/economic investment in the community

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Agency/Group/Organization Housing Authority of the County of San Bernardino Agency/Group/Organization Type PHA
Other government - County
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Public Housing Needs
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Homelessness Strategy
4 Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
The organization was interviewed by the City of San Bernardino. The anticipated outcomes are increased commitment to affordable housing/economic investment in the community.

Agency/Group/Organization City of San Bernardino - Housing Agency/Group/Organization Type Other government - Local 5 What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Public Housing Needs
Non-Homeless Special Needs
Economic Development
Lead-based Paint Strategy
Hazard Mitigation

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Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
The Public Works Department has an ongoing internal coordination process with the Housing Department for projects and plans funded through CDBG. The coordination provides the City with input regarding hazard mitigation and a continued open channel with resilience agencies (agencies whose primary responsibilities include the management of flood prone areas, public land or water resources and emergency management agencies) in the development of its plan. The IT Department has an ongoing coordination process with the Housing Department for projects and plans funded through CDBG. The internal coordination provides the City with input regarding broadband (broadband internet service providers, organizations engaged in narrowing the digital divide) in the development of its plan.

Identify any Agency Types not consulted and provide rationale for not consulting No agency types were excluded from engagement. For future planning processes, the City will make a special effort to include specified organizations that provide a wide range of services to the residents of San Bernardino.

Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan?
Continuum of Care Continuum of Care Alliance Potential funding allocations to address homeless needs will complement the COC Strategy.
10-Year Strategy to End
Homelessness Continuum of Care Alliance Funding allocations to address homeless needs will be consistent with the 10-Year Strategy to End Homelessness.

City of San Bernardino 2013 -
2021 Housing Element
City of San Bernardino Department of
Community Development
Potential funding allocations to address housing needs that will complement the 2013-2021 Housing Element

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Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan?
Housing Authority of the County
of San Bernardino
Housing Authority County of San
Bernardino (HACSB)
The City will support HACSB's efforts on public housing and the ongoing partnership on Waterman Gardens
Table 3 – Other local / regional / federal planning efforts Narrative (optional)
During the preparation of the Consolidated plan, City staff, along with assistance from their consultant, worked to engage a wide array of residents and stakeholder for the community outreach process. The City engaged residents and stakeholders through a community survey, stakeholder interviews, and community meetings. Various service providers, such as Health Agencies and Homeless Service providers, were included.

Stakeholders and residents provided feedback on priorities, housing problems and possible solutions. They were asked to provide input on how the City should spend their CDBG, HOME and ESG funding.

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AP-12 Participation – 91.105, 91.200(c)

1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting The City published will notice for public hearings and 30-day public review of the FY 2022-2023 Annual Action Plan in El Chicano and the San Bernardino Sun. The report will be made available on the City’s website at the Community and Economic Development Department. In addition, notification of the Virtual Community Workshop was posted to the City’s social media account.

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Citizen Participation Outreach
Sort Ord
er
Mode of Outrea
ch
Target of Outre
ach
Summary of
response/attenda
nce
Summary of
comments receiv
ed
Summary of comme
nts not accepted
and reasons
URL (If applicable)
1 Newspaper Ad
Minorities

Non-English
Speaking -
Specify other
language:

Spanish

Persons with
disabilities

Non-
targeted/broad
community

Residents of
Public and
Assisted Housing

Low Income
Persons
No responses were
received.

No responses
were received. N/A
http:iecn.com/newspaper
s/el-chicano/
https://www.sbsun.com

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Sort Ord
er
Mode of Outrea
ch
Target of Outre
ach
Summary of
response/attenda
nce
Summary of
comments receiv
ed
Summary of comme
nts not accepted
and reasons
URL (If applicable)
2 Public Hearing
Minorities

Non-English
Speaking -
Specify other
language:

Spanish

Persons with
disabilities

Non-
targeted/broad
community

Residents of
Public and
Assisted Housing
No responses were
received.

No responses
were received. N/A www.sbcity.org/housing
3 Public Hearing
Minorities

Non-English
Speaking -
Specify other
language:

Spanish
Members of the
public attended
the July 20, 2022
public hearing.

No comments
received N/A
Table 4 – Citizen Participation Outreach

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Expected Resources
AP-15 Expected Resources – 91.220(c)(1,2)
Introduction
San Bernardino, like many other jurisdictions is faced with the challenging task of meeting increasing needs with fluctuating and/or decreasing federal and state resources.

The figures shown in the Anticipated Resources table below reflect HUD's current allocation. The figure for "Expected Amount Available for Remainder of Con Plan" anticipates the level of funding using the current year allocations and projecting those allocations over the remaining years covered by the Consolidated Plan. If there are any cuts to the City's allocation over the coming years, the City will adjust this figure

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accordingly and prepare the Annual Action Plans reflective of the funding reality.

Anticipated Resources
Expected Amount Available Year 1Program Source
of
Funds
Uses of Funds
Annual
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
Expected
Amount
Available
Remainder
of ConPlan
$
Narrative Description
CDBG public -
federal
Acquisition
Admin and
Planning
Economic
Development
Housing
Public
Improvements
Public Services 3,112,512 0 0 3,112,512 6,400,000
Funding for program year 2022
includes the CityÃ¢Â¿Â¿s HUD
allocation.

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Expected Amount Available Year 1Program Source
of
Funds
Uses of Funds
Annual
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
Expected
Amount
Available
Remainder
of ConPlan
$
Narrative Description
HOME public -
federal
Acquisition
Homebuyer
assistance
Homeowner
rehab
Multifamily
rental new
construction
Multifamily
rental rehab
New construction
for ownership
TBRA 1,569,520 200,000 0 1,769,520 2,900,000
The City plans to invest its HOME
dollars affordable housing projects;
Infill Housing Program
(homeownership)

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Expected Amount Available Year 1Program Source
of
Funds
Uses of Funds
Annual
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
Expected
Amount
Available
Remainder
of ConPlan
$
Narrative Description
ESG public -
federal
Conversion and
rehab for
transitional
housing
Financial
Assistance
Overnight shelter
Rapid re-housing
(rental
assistance)
Rental Assistance
Services
Transitional
housing 278,068 37,512 0 315,580 560,000
ESG monies will fund subrecipients to
assist people experiencing
homelessness with Emergency Shelter
(ES), HMIS, Motel Vouchers, Rapid Re-
Housing, Rental Assistance,
Homelessness Prevention (HP) and
Financial Assistance.

Other public -
federal
Admin and
Planning
Overnight shelter
Rapid re-housing
(rental
assistance)
Other 0 0 0 0 0

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Expected Amount Available Year 1Program Source
of
Funds
Uses of Funds
Annual
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
Expected
Amount
Available
Remainder
of ConPlan
$
Narrative Description
Other public -
federal
Admin and
Planning
Public
Improvements
Other 0 0 0 0 0

Other public -
federal
Public
Improvements
Rental Assistance
Services
Other 0 0 0 0 0

Table 5 - Expected Resources – Priority Table
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied
The City will focus on leveraging its federal resources with state, local, and private capital in order to develop quality and decent affordable housing for San Bernardino residents. Additional funds to serve the needs of lower- and moderate-income residents were derived from a variety of other sources, including:

Federal Resources
•Section 8 Housing Choice Voucher Program
•Federal Low-Income Housing Tax Credit Program

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•Tax Exempt Bond Financing
•Community Investment Funds from Dignity Health
State Resources
•Tax Exempt bonds
•State Low-Income Housing Tax Credit Program
•No Place Like Home
•Community Reinvestments Funds
•Permanent Local Housing Allocation (PLHA) from California State Department of Housing •Veteran Housing and Homeless Prevention Program
Local Resources
•San Bernardino County Continuum of Care
•Housing Authority of San Bernardino County (HACSB)
Private Resources
•Dignity Health
•San Manuel Band of Mission Indians
•San Bernardino Unified School District
•City of San Bernardino Successor Housing Agency

Per HUD regulations, ESG recipients must match 100 percent of their ESG annual allocation. For those organizations that received ESG funds, agencies met the match requirement through utilization of volunteerism, in-kind contributions, and funds from other local, state, and federal programs.

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In addition, HUD requires HOME recipients to match 25 percent of their HOME annual allocation. In accordance with 24 CFR 92.222, when a local jurisdiction meets one of the distress criteria, it is determined to be in fiscal distress and receives a 50 percent reduction of match. The FY 2021-2022 match reductions are not available as of date of this writing. However, in FY 2022-2023, the City received a 100 percent match reduction due to severe fiscal distress. The City of San Bernardino will continue to leverage its HOME funds with other housing resources as required. Any funds that are used in a HOME activity in excess of the required match will be documented by the City and reported to HUD as part of the Consolidated Annual Performance and Evaluation Report each year.

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If appropriate, describe publically owned land or property located within the jurisdiction that may be used to address the needs identified in the plan With the dissolution of the redevelopment agency, successor agencies with real property assets are required to dispose of the properties pursuant to the City’s Long-Range Property Management Plan or Housing Asset Transfer (HAT) Plan. The Successor Agency has transferred all property listed on the Housing Asset Transfer list to the City as the Successor Housing Agency. The City will determine the development and/or disposition of these properties in the following months.

Discussion
The Housing Successor Agency has a disposition plan for the parcels and the City will retain some for economic development purposes, sell a number of the parcels and retain others for housing. The majority of the properties are single family parcels that the city intends to utilize for the construction of single-family ownership housing.

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Annual Goals and Objectives
AP-20 Annual Goals and Objectives
Goals Summary Information
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
1 Promote Economic
Development
2020 2025 Economic
Development
CityWide Promote Economic
Development
CDBG:
$788,803
Jobs created/retained: 214
Jobs
2 Fair Housing 2020 2025 Non-Housing
Community
Development
CityWide Fair Housing CDBG:
$73,000
Public service activities other
than Low/Moderate Income
Housing Benefit: 2700 Persons
Assisted
3 Expand Home
Ownership
2020 2025 Affordable
Housing
CityWide
LMI Areas
of the City
Expand Home
Ownership
HOME:
$755,000
Homeowner Housing Added: 3
Household Housing Unit
4 New Affordable
Rental Housing
2020 2025 Affordable
Housing
CityWide
LMI Areas
of the City
New Affordable
Rental Housing
HOME:
$857,568
Rental units constructed: 15
Household Housing Unit
5 Improve Facilities
and Infrastructure
2020 2025 Non-Housing
Community
Development
CityWide Improve Facilities
and Infrastructure
CDBG:
$1,628,207
Public Facility or Infrastructure
Activities other than
Low/Moderate Income Housing
Benefit: 1500 Persons Assisted
6 Provide Homeless
and Homeless
Prevention Services
2020 2025 Homeless CityWide Provide Homeless
and Homeless
Prevention Services
ESG:
$318,580
Homelessness Prevention: 612
Persons Assisted

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Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
7 Planning and
Administration
2020 2025 Program
administration
funds
CityWide Planning and
Administration
CDBG:
$622,502
HOME:
$156,952
ESG:
$20,855
Other: 1 Other
Table 6 – Goals Summary
Goal Descriptions
Goal Name Promote Economic Development1
Goal
Description
Section 108 Loan Repayment: Debt service repayment for Arden Guthrie Project. The project will create 214 jobs.

Goal Name Fair Housing2
Goal
Description
Eliminate identified impediments to fair housing through education, enforcement, and testing. Assist 2,700 households.

Goal Name Expand Home Ownership3
Goal
Description
Infill Housing Project to create a total of six (6) new houses throughout San Bernardino and will also include down payment assistance for first-time homebuyers between 70%-80% AMI.

Goal Name New Affordable Rental Housing4
Goal
Description
Create new affordable rental units

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Goal Name Improve Facilities and Infrastructure5
Goal
Description
Goal Name Provide Homeless and Homeless Prevention Services6 Goal
Description
Provide funding to assist homeless individuals and those with special needs with supportive services; includes funding for emergency shelters, rapid rehousing, homelessness prevention, street outreach, and HMIS costs. 612 persons to be assisted.

Goal Name Planning and Administration7
Goal
Description
The City will implement the goals and objectives of the Consolidated Plan by delivering a variety of housing and community development programs and activities. The City will also continue to comply with the planning and reporting requirements of the Consolidated Plan regulations and CDBG, HOME and ESG regulations. Annually, the City will monitor its use of CDBG, HOME and ESG funds to ensure effective and appropriate use of funds.

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Projects
AP-35 Projects – 91.220(d)
Introduction
With its CDBG, HOME, and ESG funds, the City of San Bernardino will fund FY2022-2023 eligible projects in the following categories: promote economic development, fair housing, expand homeownership opportunities, new affordable rental housing, improve public facilities and infrastructure, provide supportive services to homeless individuals and those with special needs, and program planning and administration.

Projects
# Project Name
1 Section 108 Loan Repayment
2 Street Improvement Project
3 Fair Housing
4 Infill Housing Project
5 CDBG Administration
6 ESG - Homeless Services - Provide Supportive Services and ESG Administration 7 HOME Administration
8 Affordable Housing
Table 7 - Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs

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AP-38 Project Summary
Project Summary Information

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Project Name Section 108 Loan Repayment
Target Area CityWide
Goals Supported Promote Economic Development
Needs Addressed Promote Economic Development
Funding CDBG: $788,803
Description Section 108 Loan Repayment Program in order to pursue physical and economic revitalization that will provide jobs.

Target Date 6/30/2023
Estimate the number
and type of families
that will benefit from
the proposed
activities
214 families will be employed at project completion.

Location Description 17.43 acre commercial property located along Highland Avenue between Arden Street and Guthrie Street in the City of San Bernardino. 1 Planned Activities The City has moved forward with the sale of the property and using Section 108 loan for the repayment of the Arden Guthrie Project.

Project Name Street Improvement Project
Target Area LMI Areas of the City
Goals Supported Improve Facilities and Infrastructure
Needs Addressed Improve Facilities and Infrastructure
Funding CDBG: $1,628,207
Description Three (3) streets have been identified for sidewalk replacement and ADA accessibility improvements.

Target Date 6/30/2023
2 Estimate the number
and type of families
that will benefit from
the proposed
activities
Area with an average income level of 30% to 50% of AMI will benefit of the improvements made to these streets.

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Location Description The City has proposed to fund Citywide Pavement Rehabilitation.

1. 10th between F Street and G Street (1st Ward)- multiple APN- 30,000 SF

2. 49th Street between Sepulveda Avenue and End (4th Ward)- Multiple APN- 65,000 SF

3. Rialto Avenue from Mt. Vernon and Muscott to Bridget (3rd Ward) Multiple APN-180,000 SF
Planned Activities Street improvements and ADA compliance Project Name Fair Housing
Target Area CityWide
Goals Supported Fair Housing
Needs Addressed Fair Housing
Funding CDBG: $73,000
Description
Target Date 6/30/2023
Estimate the number
and type of families
that will benefit from
the proposed
activities
This program will benefit approximately 2,700 Low/Moderate Income Households/Tenants.

Location Description Citywide
3 Planned Activities IFHMB will provide investigation, education, reconciliation, and/or referral of housing discrimination complaints free of charge in the City of San Bernardino. IFHMB offers workshops to educate housing providers, tenants, homeowners, and financial and lending institutions on fair housing laws.

Project Name Infill Housing Project
Target Area CityWide
Goals Supported Expand Home Ownership
Needs Addressed Expand Home Ownership
Funding HOME: $937,000
4 Description Infill Housing Project construction of new houses by two developers â¿¿ Mary Erickson Community Housing (MECH) and Neighborhood Partnership Housing Services (NPHS).

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Target Date 6/30/2023
Estimate the number
and type of families
that will benefit from
the proposed
activities
The program will create 6 new houses. Additionally, three homebuyers with AMI’s between 70%-80% will receive down payment assistance up to $100,000 each to purchase one of three infill homes.

Location Description Citywide
Planned Activities COnstruction of new homes
Project Name CDBG Administration
Target Area CityWide
Goals Supported Planning and Administration
Needs Addressed Planning and Administration
Funding CDBG: $622,502
Description The City will implement the goals and objectives of the Action Plan by delivering a variety of housing and community development programs and activities. The City will also continue to comply with the planning and reporting requirements of the Action Plan regulations and CDBG, HOME and ESG regulations. Assist homeless and special needs populations with supportive services. Funding for various Emergency Solutions Grant Program Projects to include Emergency Shelter, Rapid Rehousing, Homelessness Prevention, Street Outreach and HMIS costs.

Annually, the City will monitor its use of CDBG, HOME and ESG funds to ensure effective and appropriate use of funds.

Target Date 6/30/2023
Estimate the number
and type of families
that will benefit from
the proposed
activities
N/A
Location Description 210 N E Street
San Bernardino, CA 92401
5 Planned Activities Grant and Project Management
Project Name ESG - Homeless Services - Provide Supportive Services and ESG Administration
6 Target Area CityWide

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Goals Supported Provide Homeless and Homeless Prevention Services Planning and Administration
Needs Addressed Provide Homeless and Homeless Prevention Services Planning and Administration
Funding ESG: $315,580
Description The City will implement the goals and objectives of the Action Plan by delivering a variety of housing and community development programs and activities. The City will also continue to comply with the planning and reporting requirements of the Action Plan regulations and CDBG, HOME and ESG regulations. Assist homeless and special needs populations with supportive services. Funding for various Emergency Solutions Grant Program Projects to include Emergency Shelter, Rapid Rehousing, Homelessness Prevention, Street Outreach and HMIS costs.

Annually, the City will monitor its use of CDBG, HOME and ESG funds to ensure effective and appropriate use of funds.

Funding for various Emergency Solutions Grant Program Projects to include Emergency Shelter, Rapid Rehousing, Homelessness Prevention, Street Outreach and HMIS costs.

Project Name HOME Administration
Target Area CityWide
Goals Supported Planning and Administration
Needs Addressed Planning and Administration
7 Funding HOME: $156,952

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Description The City will implement the goals and objectives of the Action Plan by delivering a variety of housing and community development programs and activities. The City will also continue to comply with the planning and reporting requirements of the Action Plan regulations and CDBG, HOME and ESG regulations. Assist homeless and special needs populations with supportive services. Funding for various Emergency Solutions Grant Program Projects to include Emergency Shelter, Rapid Rehousing, Homelessness Prevention, Street Outreach and HMIS costs.

Annually, the City will monitor its use of CDBG, HOME and ESG funds to ensure effective and appropriate use of funds.

Target Date 6/30/2023
Estimate the number
and type of families
that will benefit from
the proposed
activities
N/A
Location Description 210 North E Street
San Bernardino, CA 92401
Planned Activities Grant and Program Management
Project Name Affordable Housing
Target Area CityWide
Goals Supported New Affordable Rental Housing
Fair Housing
Needs Addressed Expand Home Ownership
New Affordable Rental Housing
Funding HOME: $675,568
Description Construction of Single-Family homes and loans for rehabilitation of single family homes. Applicant incomes are to be at or below 80% of Area Median Income.

Target Date 6/30/2023
8 Estimate the number
and type of families
that will benefit from
the proposed
activities
6 families will be assisted

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Location Description Location has not been determined. However, the project will take place within the City of San Bernardino. Once the location has been selected and approved, staff will notify HUD.

Planned Activities Construction of Permanent Supportive Housing (PSH) project for very low to low income residents

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AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed The City will use its funding for FY 2022-2023 to fund a variety of housing, community development, economic development, and capital improvement projects. The majority of federal funds will be used to finance projects targeting low- to moderate-income individuals and families throughout the City.

CDBG Benefit Service Areas are defined as geographic locations within the City of San Bernardino where 51 percent or more of the households in those areas are low- to moderate-income.

The City of San Bernardino has become increasingly diverse in its racial and ethnic makeup. Over the past decades the City has seen a shift from a non-Hispanic, White majority to a Hispanic Origin majority. According to the U.S. 2020 Census, approximately 66.2 percent of the population is of Hispanic Origin, 14.4 percent is Non-Hispanic, White, 13.2 percent is Black, and 4.1 percent is Asian, and

8.1 percent is comprised of two or more races.

See attached maps in the Action Plan document as a reference to the geographic distribution.

Geographic Distribution
Target Area Percentage of Funds
CityWide 30
LMI Areas of the City 70
Table 8 - Geographic Distribution
Rationale for the priorities for allocating investments geographically The funding available under the 2022-2023 Action Plan may be used to meet a variety of community development and housing needs. As part of the development of the 2022-2023 Action Plan, the City established priority needs based on an in-depth analysis of the several factors housing, homelessness, poverty, special needs, lead hazards, institutional structure, etc. The City will utilize its federal funding to pursue goals and objectives listed in the section “AP-20 Annual Goals and Objectives” of this document. The City’s primary intent is to spend its CDBG funds in predominantly low-income neighborhoods where residents have the greatest need for housing/services.

Discussion
As noted previously, the City does not allocate funds on a geographic basis, instead, funds are allocated to organizations that provide low-income households with housing and supportive services. On an annual basis, the City prioritizes the use of its CDBG funding for housing and community development activities, including preservation and conservation of affordable housing and activities that serve low-

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and moderate-income households.

Public improvements and public facilities are qualified as benefitting low- and moderate-income persons. Activities identified under the public service category and targeted to special needs populations are offered on a citywide basis and/or where resources can be coordinated with existing facilities or services.

The City of San Bernardino does not have any Neighborhood Revitalization Strategy Areas (NRSA) within its City’s boundaries.

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Affordable Housing
AP-55 Affordable Housing – 91.220(g)
Introduction
As a reflection of the Housing Needs Assessment of the 2020-2024 Consolidated Plan, housing problems within the City of San Bernardino include: 1) Units with physical defects; 2) overcrowded conditions; and 3) housing cost burden. The City will use CDBG and HOME funds to pursue three affordable housing goals: 1) Preserve and Rehabilitation Housing, 2) Expand Home Ownership Opportunities Preserve and Rehabilitate Housing
Approximately 67 percent of both owner-occupied housing (18,125) and rental units (20,735) were built prior to 1980. In general, housing begins to require major repairs after 30 or 40 years of age. Those repairs could include important health and safety repairs such as for heating/air systems, roof, kitchen appliances, bathroom or kitchen plumbing, and insulation. Many low- to moderate-income households may be unable to afford these needed repairs. In the City of San Bernardino, substandard housing conditions may consist of the following: structural hazards, poor construction, inadequate maintenance, faulty wiring, plumbing, fire hazards, and inadequate sanitation. Substandard units suitable for rehabilitation are those units where the total rehabilitation costs do not exceed 25 percent of the after- rehabilitation value (Data Source: 2011-2015 ACS).

Expand Home Ownership Opportunities
There is a need for affordable housing in San Bernardino. The most prevalent housing problems within the City is cost burden and overcrowded conditions. San Bernardino has a population of 214,115 persons and a total of 57,547 households. Nearly 59 percent of households in San Bernardino (33,760 total) qualify as low- to moderate-income, earning up to 80 percent of HUD Area Median Family Income (HAMFI).

Families who pay more than 30 percent of their income for housing are considered cost burdened and may have difficulty affording necessities such as food, clothing, transportation, and medical care. Overcrowded conditions exist when more people are living within a single dwelling than there is space for, so that movement is restricted, privacy is compromised and levels of stress increase.

Low-moderate income (LMI) renter households experience housing problems at a higher rate (60 percent) than LMI owner households (44 percent).

Many of San Bernardino’s extremely low-income households (42 percent) are small families (four

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persons or less), which shows a need for smaller (one, two, or three bedroom) affordable housing units.

The City’s housing market has increased over the past few years. In 2015, the median income in the City was $37,047, a 16 percent increase, with an MHV of $159,800, which would make most homeowners cost burdened. In 2020, the median income in the City was $49,287, a 18 percent increase, with an MHV of $272,600, which would make most homeowners cost burdened.

Based on the 2015-2019 ACS, the median income would be sufficient for a renter to afford $1,059 in housing costs per month, which includes rent and utilities, and not be cost burdened; 37 percent of the City’s renter population pays $999 or less per month.

One Year Goals for the Number of Households to be Supported Homeless 600
Non-Homeless 349
Special-Needs 0
Total 949
Table 9 - One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households Supported Through Rental Assistance 600
The Production of New Units 0
Rehab of Existing Units 0
Acquisition of Existing Units 0
Total 600
Table 10 - One Year Goals for Affordable Housing by Support Type Discussion
The table “One Year Goals for the Number of Households to be Supported” consists of 349 non- homeless households to be supported. New Infill Housing construction of three (3) for-sale single family homes citywide is planned (incomes will range from 50% to 80% of Area Median Income (AMI)).

Below is a continuation of the introduction discussion above.

Provide Assistance to Renter Households
The City has a significant inventory of publicly assisted rental housing affordable to low-income households. Eighteen affordable rental housing developments in the City offer income/rent restricted housing for approximately 2,205 very low-income households. A total of 15 projects, with a combined

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total of 1,627 affordable units, are at risk of losing their affordability status. HACSB does not anticipate losing affordable housing units due to expiration of contracts in the next five years. These projects are technically considered at risk of converting to market-rate housing. However, most of these projects are non-profit owned senior housing which will receive priority for rental of subsidy contracts with HUD. Therefore, it is unlikely that the projects will convert to market-rate housing.

Nonetheless, the City will periodically reach out to owners of assisted projects to understand their intentions for opting out of the Housing Choice Voucher Program or pursuing financial restructuring in order to extend the terms of affordability.

The City also will continue to work with qualified Community Housing Development Organizations (CHDO) to acquire and construct or rehabilitate multifamily housing as long-term affordable housing for lower-income households.

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AP-60 Public Housing – 91.220(h)
Introduction
Public housing and other assisted housing programs are crucial elements of the City’s efforts to address affordable housing needs of low- and moderate-income families, senior citizens, disabled individuals, and other individuals.

The City falls within the jurisdiction of the Housing Authority of the County of San Bernardino (HACSB).

This agency administers the Housing Choice Voucher Program, which provides rental assistance to eligible residents of San Bernardino by providing monthly rental assistance to participants who want to rent from a private landlord but cannot afford the full monthly rental payment. The Housing Choice Voucher program is funded by the U.S. Department of Housing and Urban Development (HUD).

In 2019, the latest year for which data is available, HACSB provided 10,798 housing choice vouchers throughout San Bernardino County, assisting 25,331 individuals. Of those 10,798 housing choice vouchers, 2,694 were issued to San Bernardino City residents.

The City will continue to support the efforts of HACSB in the administration of the Housing Choice Voucher and maximize the use of those funds and other resources in San Bernardino.

Actions planned during the next year to address the needs to public housing To assist HACSB in addressing public housing needs, the City will do the following:

Monitor At-Risk Units
The City will maintain contact with the owners of at-risk units, encourage the owner to keep the at-risk units affordable and utilize, if feasible, local incentives to preserve any at-risk units.

Support and Assist Local Non-Profit Organizations
In order to develop or preserve the City’s affordable housing stock, the City will provide technical and/or financial assistance to local non-profit organizations that provide affordable housing.

Actions to encourage public housing residents to become more involved in management and participate in homeownership
Because the City does not own any public housing units, the City has not taken efforts to encourage public housing residents to become more involved in management and participate in homeownership.

However, the City collaborates with the Housing authority of the County of San Bernardino to encourage public housing residents to contribute and participate in the management and HACSB has a

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homeownership program for residents of public housing.

As for homeownership opportunities, the City has initiated an 750 Housing Program that will acquire distressed properties within San Bernardino, rehabilitate them and sell them to income qualified homebuyers. The City will work with HACSB, to identify any households who may be eligible for the Housing Choice Voucher Program.

If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
The Housing Authority of the County of San Bernardino has not been designated as troubled. Actually, it has a moving to work designation which is a designation that a limited number of PHAs across the country have.

Discussion
There is no discussion relative to the designation of the county PHA.

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AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction
According to the San Bernardino County 2020 Homeless PIT Count, there were 1,056 homeless persons in the City. A total of 183 individuals were sheltered, 50 in transitional housing, and 823 were unsheltered. To address this issue, the City will allocate approximately $294,725 in ESG funds to homeless service providers who are skilled at transitioning homeless individuals and families from homelessness to permanent housing through a variety of activities including street outreach, homeless prevention, rapid re-housing, emergency shelter and essential services Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including
Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The City is an active member of the San Bernardino CoC and fully supports the goals and objectives of the San Bernardino County 10-Year Strategy to End Homelessness. To reach out to homeless persons and assess their individual needs, the City will continue to support the CoC’s coordinated entry system, 2-1-1 San Bernardino County. The Coordinated Entry System will provide people who are at imminent risk of becoming homeless (HUD Homeless definition (Category 2) with problem solving support to retain current housing or to locate get housing placement.

The City is continuing its contract in FY 2022-2023 with Step Up On Second, with the goal of reaching 150 homeless persons through street outreach, providing social service referrals to those persons and facilitating the placement of 13 homeless persons into permanent housing.

Addressing the emergency shelter and transitional housing needs of homeless persons The City will continue to fund Lutheran Social Services Southern California (LSSC) to provide an emergency men’s shelter. LSCC will provide 150 homeless persons in the City of San Bernadino with emergency shelter.

The City has partnered with Step Up on Second to provide street outreach services to 150 homeless persons and assist them with obtaining their vital documents, housing navigation, transportation to appointments and placement in permanent housing.

The City will also be working with the Salvation Army to provide emergency shelter for 100 persons, focusing on women and women with children. The Salvation Army San Bernardino Hospitality House operates several programs within its 21-room facility. Currently there are 21 units/rooms of transitional housing for families, three units/rooms set-aside for emergency shelter for families and one room with

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six beds for single females experiencing homelessness. Total residential capacity is 82 beds but is often over capacity due to cribs and family size.

Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
The City of San Bernardino recognizes that homelessness is a regional issue that impacts every community in the region. As the largest community in the County, the City also serves as a hub for service providers. The City supports the efforts of the network of agencies working to end homelessness through the Regional Continuum of Care Strategy. The Continuum of Care Strategy involves four key components, one of which is homeless prevention. The provision of preventative services will decrease the number of households and individuals who will become homeless and require emergency shelters and assistance. The City is working to prevent persons from becoming homeless by funding emergency rental assistance for households at-risk of homelessness.

Utilizing its HOME dollars, the City funded the acquisition of the Golden Apartments a 21-unit apartment complex that has been rehabilitated and converted into 38 one-bedroom apartments of supportive housing for homeless persons. Residents moved into their new one-bedroom flats in December 2019. Golden has onsite health and mental health services available through the Department of Behavioral Health and Molina Health.

San Bernardino County’s 10-Year Strategy for Ending Homelessness was recalibrated in 2013 to focus on a rapid re-housing approach that is also consistent with a Housing First Model. This approach is intended to minimize the amount a time an individual or family remains homeless or in shelters. The Housing First Model also focuses on homeless prevention by emphasizing the need to keep individuals and families in their current housing if appropriate.

Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs.

The City will continue to support the regional CoC’s efforts to implement the San Bernardino County 10- Year Strategy for Ending Homelessness. This plan includes a recommendation to focus on discharge planning in order to prevent people from becoming homeless when they are discharged from

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correctional, foster care, health care, or mental health care systems. The McKinney-Vento Act requires that State and local governments have policies and protocols in place to ensure that persons being discharged from a publicly funded institution or system of care are not discharged immediately into homelessness. In order to meet HUD’s requirements, the 10-Year Strategy has established a Discharge Planning Committee to focus on improving coordination between discharge planning agencies, local government, and homeless service providers in order to implement a “zero tolerance” plan that will prevent persons being discharged into homelessness.

Discussion

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AP-75 Barriers to affordable housing – 91.220(j)
Introduction:

The City recognizes that barriers to affordable housing exist and continues to employ strategies to overcome them. Policies can create barriers to the production of affordable housing and residential investment because such factors increase costs. The high cost of affordable housing and residential investment can be contributed to the following:

Lack of Affordable Housing Funds: The availability of funding for affordable housing has been severely affected by the dissolution of redevelopment agencies. Prior to 2012, redevelopment activities and funding were the City’s primary tool for assisting with neighborhood revitalization efforts and production of affordable housing. The loss of this funding represents a constraint for the City of San Bernardino’s efforts to continue to support neighborhood revitalization. Now the City relies on private resources, federal grant programs, state resources, and philanthropy to fund affordable housing projects.

Environmental Protection: State law (California Environmental Quality Act and California Endangered Species Act) and federal law (National Environmental Policy Act and Federal Endangered Species Act) regulations require environmental review of proposed discretionary projects (e.g., subdivision maps, use permits, etc.). Costs and time delay resulting from the environmental review process are also added to the cost of housing.

Site Improvements: Many parts of San Bernardino are undeveloped and lack adequate pedestrian and automobile infrastructure to support new residential subdivisions. All new residential development is required to provide sidewalk with curbs and gutters and must be served by appropriate roadways consistent with the General Plan Circulation Element and adopted road development standards. The cost of these improvements increases the cost of development but is necessary to facilitate pedestrian and vehicular access and movement in the City.

Planning and Development Fees: Planning and development impact fees, such as for transportation, water, and sewer infrastructure improvements, often add to the overall cost of development. The City’s fees reflect the fair share of the costs of providing permitting, infrastructure, and services for new residences.

Permit and Processing Procedures: Builders and developers frequently cite the cost of holding land during the evaluation and review process as a significant factor in the cost of housing. The City of San Bernardino’s development review process is designed to accommodate growth without compromising quality. Project quality is of critical concern, as the City faces challenges in securing foreclosed single- family homes and poorly maintained multifamily complexes.

State and Federal Davis-Bacon Prevailing Wages: The State Department of Industrial Relations (DIR)

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expanded the kinds of projects that require the payment of prevailing wages. Prevailing wage adds to the overall cost of development. A prevailing wage must also be paid to laborers when federal funds are used to pay labor costs for any project over $2,000 or on any multi-family project over eight units. Based on discussions with developers, various prevailing wage requirements typically inflate the development costs by 35 percent.

Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment
The City undertook a major effort to eliminate constraints, with respect to land use regulations, by developing and adopting a new Development Code that unified and simplified the City’s development regulations and processes. That effort was followed by a reorganization of the City to unify the various development-related departments into a single Community Development Department and a one-stop permit counter. The City has made the following additional amendments to the Municipal Code in order to further reduce barriers to affordable housing:

1. General Lot Consolidation Incentive - Small, individual lots offer limited development potential, and generally cannot support onsite property management. Development opportunities could be increased through a small-lot consolidation program that offers a 15 percent density bonus for projects with a residential component that are committing to a maintenance plan and having on-site management. The City is anticipating amending the Development Code to incentivize lot Consolidation.

2. Density Bonus Provisions - Density bonus projects can be an important source of housing for lower-and moderate-income households. The City anticipates amending the Development Code to reflect the latest amendments to State density bonus law.

3. Transitional and Supportive Housing - The City plans to amend the Development Code to adequately define transitional and permanent supportive housing and permit these uses based on unit type, in accordance with Senate Bill 2.

4. Streamlined Processing - The City is committed to continuing the streamlining of development activities and regulations and will continue to analyze potential programs that seek to eliminate land use constraints, particularly as related to the provision of new housing and rehabilitation of existing housing. The City amended its Development Code in 2012 to make it more user-friendly and to minimize confusion for staff and the development community. As part of the Development Code update, the City also introduced a new streamlined type of Conditional Use Permit: the Minor Use Permit (MUP). The MUP is reviewed by the Development/Environmental Review Committee rather than the Planning Commission, which requires less staff time (and a relatively shorter process for developers), lower fees, and can be used in lieu of a CUP for certain qualified projects.

5. The City will update its General Plan.

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Discussion:

To address housing affordability and the lack of monetary resources for affordable housing, the Consolidated Plan calls for the investment of CDBG and/or HOME funds to preserve and rehabilitate housing units and provide homeownership opportunities to low and moderate-income households.

For FY 2022-2023, the City will continue to fund its Infill Housing Program and its Owner-Occupied Residential Rehabilitation Program (OORP). The OORP will be funded with carryover funds from last year that were not fully expended. Through the City’s Infill Housing Program, the City will acquire, rehabilitate vacant and/or underutilized parcels of land and create housing affordable to low- and moderate-income households. The Owner-Occupied Residential Rehabilitation Program will provide deferred loans for the rehabilitation of single-family units owned by low and moderate-income households.

Although the City no longer has access to redevelopment funds, the City will continue to leverage its CDBG and HOME funds to attract private and other available public resources, including land conveyed to the City for the purpose of creating affordable housing for low- and moderate- income households.

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AP-85 Other Actions – 91.220(k)
Introduction:

Priority Needs established in the FY 2020-2024 Five-Year Consolidated Plan, which forms the basis for establishing objectives and outcomes in the FY 2022-2023 One-Year Action Plan, are as follows:

High Priority
•Preserve and Rehabilitate Housing
•Expand Homeownership Opportunities
•Provide Homeless and Homeless Prevention Services
Low Priority
•New Affordable Rental Housing
•Improve and Expand existing Community Facilities and Infrastructure to meet current and future needs
•Eliminate identified impediments to fair housing through education, enforcement, and testing •Planning and Administration – CDBG, HOME, ESG
•New Affordable Housing Construction or Rehabilitation
•Expand Homeownership opportunities – Infill Housing
•First-Time Homeownership – CHDO 15% set-aside
Actions planned to address obstacles to meeting underserved needs To address obstacles to meeting underserved needs, the City will allocate CDBG, uncommitted HOME and ESG funds through the Action plan in projects that provide financing for the affordable housing development, housing rehabilitation, job creation, public facility/infrastructure improvements and homeless prevention. Lack of resources is the primary obstacle to meeting underserved needs. In order to leverage additional ongoing resources for housing and homeless services, the City is applying for the Permanent Local Housing Allocation (PLHA) funds which are administered by the State Department of Housing and Community Development. It anticipated that in the 2021 the City can receive up to $1.6 million in PLHA funds.

The City will also support HACSB’s efforts to obtain additional rental assistance funding, especially for seniors and lower-income households.

Actions planned to foster and maintain affordable housing The City will continue to invest HOME funds to expand the supply of affordable housing and will use HOME funds to preserve and maintain existing affordable housing through the City of San Bernardino’s

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Owner-Occupied Rehabilitation Loan Program. The City will continue this program using re-programmed funds from the previous year’s allocation.

Actions planned to reduce lead-based paint hazards
To reduce lead-based paint hazards, housing constructed prior to 1978 and assisted through the City of San Bernardino’s Owner-Occupied Residential Rehabilitation Program will be tested for lead-based paint hazards. If lead based-paint hazards are found, safe work practices or abatement procedures will be included in the scope of work for the rehabilitation of the housing unit. All procedures will be in compliance with 24 CFR Part 35.

Actions planned to reduce the number of poverty-level families For FY 2022-2023, the City will support:
•An Infill Housing Program that will acquire and rehabilitate/construct underutilized properties within the City and when complete sell these homes to low- and moderate-income households •Service providers who can provide street outreach, rapid-rehousing, homeless prevention, emergency shelter, and other essential services to homeless and near-homeless persons and families.
•The improvement of streets, along with the Infill Housing that will be taking place. These improvements will have a greater impact in the neighborhoods. •The efforts of HACSB, who provides rental assistance and conventional housing to low-income households.
•The efforts of the CoC, San Bernardino County Behavioral Health Administration, Office of Homeless Services and various Homeless Service Agencies to provider public and social services to residents living in poverty, including health services, counseling, educational programs, food distribution, academic and vocational training, youth services, and senior services. •The goals and objectives of San Bernardino County 10-Year Strategy to End Homelessness.

The CoC’s coordinated entry system, 2-1-1 San Bernardino County that provides persons who are at imminent risk of becoming homeless with problem solving support to retain current housing or to locate another housing placement.

Actions planned to develop institutional structure
During the next year, the San Bernardino Community & Economic Development Department will continue consulting with and inviting a wide variety of agencies and organizations (i.e., CoC, HACSB, National CORE, County of San Bernardino Community Development and Housing Agency, etc.) involved with the delivery of housing and social services to low- and moderate-income San Bernardino residents. This will allow to coordinate the City's activities by not duplicating efforts and to know what

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other agencies are doing. Currently, the City is working with the Center for Community Investment and Dignity Health (Accelerating investments for Healthy Communities). The City's collaboration with CCI and Dignity Health has resulted in the investment of $1.2 million in permanently affordable rental housing in the City. These types of collaborations build the capacity for the City to continue providing affordable housing.

Actions planned to enhance coordination between public and private housing and social service agencies
During the next year, the San Bernardino Community & Economic Development Department will continue consulting with a wide variety of agencies and organizations such as HACSB, County Workforce Development, County Department of Behavioral Health and County Office on Aging and Adult Services involved with the delivery of housing, supportive services and economic development to low- and moderate- income San Bernardino residents. Workforce Development, for example, provides job placement services for person in the County and also provides up to three months of paid on the job training and any equipment that an employee may require to carry their new job. In the realm of economic development, the City recently established a partnership with the Mexican Consulate’s “Emprendedoras” program. The program partners with the Small Business Administration and the City’s Micro Enterprise program to provide Spanish language training for persons interested in launching a small business or expanding an existing small business. Through the City’s partnership with the “Emprendedoras” program, the City will cross promote the services available through Workforce Development.

Discussion:

The implementation of the FY 2021-2022 Action Plan will invest federal resources to address obstacles to meeting underserved needs, foster and maintain affordable housing, reduce lead-based paint hazards, inspection of HOME units, reduce the number of families living in poverty, develop institutional structure, and enhance coordination between public and private housing and social service agencies.

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Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Introduction:

In the implementation of programs and activities under the 2021-2022 Action Plan, the City of San Bernardino will follow all HUD regulations concerning the use of program income, forms of investment, overall low-and moderate-income benefit for the CDBG program and recapture requirements for the HOME program. The years 2020, 2021 and 2022 are used to determine that an overall benefit of 80% of CDBG funds is used to benefit persons of low and moderate income.

Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.

1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0

2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0

3. The amount of surplus funds from urban renewal settlements 0

4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0

5. The amount of income from float-funded activities 0
Total Program Income: 0
Other CDBG Requirements

1. The amount of urgent need activities 0

2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income.Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. 80.00% HOME Investment Partnership Program (HOME)
Reference 24 CFR 91.220(l)(2)

1. A description of other forms of investment being used beyond those identified in Section 92.205 is

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as follows:

The City does not anticipate using other forms of investment beyond those identified in Section

92.205.

2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows:

HOME Recapture Provision If Buyer at any time during the Period of Affordability sells or transfers the Eligible Property, whether voluntarily or involuntarily due to foreclosure or other circumstance, the following provisions shall apply, pursuant to 24 C.F.R. Part 92.254:
(a) If Buyer sells or transfers the Eligible Property within the first two years of the Period of Affordability, City shall recover from the Net Proceeds, if any, the entire amount of the HOME Subsidy, or such lesser amount as the Net Proceeds may permit to be recovered. The Net Proceeds are the sales price paid to Buyer minus repayment of loans that are superior in priority to this Affordable Housing Covenant and the Deed of Trust securing it, and any closing costs. (b) If Buyer sells or transfers the Eligible Property after occupying the Eligible Property for at least two years (24 months from the Delivery Date), City’s recovery from the Net Proceeds shall equal the amount of the HOME Subsidy, reduced by a percentage determined by dividing the number of Buyer’s full years of occupation of the Eligible Property by the number of years of the Period of Affordability, and multiplying the result by 100. In calculating recapture of the HOME subsidy only full 12-month periods of occupancy will be utilized in the calculation. For example, if Buyer sells or transfers the Eligible Property during the third year, before the completion of the full third year of a ten-year Period of Affordability, the percentage reduction of the amount of the HOME Subsidy to be recovered by City shall equal 20 percent:
(2 years ÷ 10 years) × 100 = 20. Assuming sufficient Net Proceeds, City would recover 80 percent of the HOME Subsidy. If there were not sufficient Net Proceeds, City would recover 80 percent of Net Proceeds, whatever the amount.
(c) In no event shall City’s recovery exceed the amount of the Net Proceeds.

The City requires that its CHDO/subrecipients, who carry out HOME funded ownership programs, utilize the noted recapture provisions, which are part of the affordability covenant executed by the homeowner and recorded against the property.

In its homeownership and single-family rehabilitation programs the City utilizes the homeownership

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limits for the San Bernardino Metropolitan/FMR Area provided by HUD.

3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds? See 24 CFR 92.254(a)(4) are as follows:

Measured from the Delivery Date and determined based on the amount of the HOME Subsidy, as follows:

Amount of HOME Subsidy Period of Affordability Less than $15,000 5 years $15,000 to $40,000 10 years More than $40,000 15 years The City's affordability covenant requires that HOME units acquired with HOME funds remain affordable for the period noted based on the amount of HOME subsidy. The City requires that its CHDO/subrecipients who carry out HOME funded ownership programs utilize the noted recapture provisions, which are part of the affordability covenant executed by the homeowner and recorded against the property.

In its homeownership and single-family rehabilitation programs the City utilizes the homeownership limits for the San Bernardino Metropolitan/FMR Area provided by HUD.

4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows:

The City will not be undertaking any refinancing of existing debt secured by multifamily housing that is rehabilitated with HOME funds. The City will not undertake the refinancing of single-family units rehabilitated with HOME funds. With regard to eligible beneficiaries, the City will adhere to the requirements under 24 CFR 2.203 with regard to income determinations; 92.216 with respect to incomes of applicants; 92.253 with regard to tenant protections and selection and other HOME regulatory requirements that ensure beneficiaries are not precluded from participating in HOME funded programs.

The City utilizes Notice of Funding Availability and Requests for Proposals to solicit applications for funding under the HOME program. Solicitations for applications are conducted as funds are available for various programs and/or when contracts and renewal periods with applicants

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expire and new NOFAs and RPS are released.

Emergency Solutions Grant (ESG)
Reference 91.220(l)(4)

1.Include written standards for providing ESG assistance (may include as attachment) See Attachment under Admin - IDIS (AD-26).

2.If the Continuum of Care has established centralized or coordinated assessment system that meets HUD requirements, describe that centralized or coordinated assessment system.

The Continuum of Care (CoC) is led by the County of San Bernardino, Department of Behavioral Services. The Coordinated Entry System, referred to as 211 San Bernardino County, is operated by the United Way of San Bernardino County and provides free and confidential information and referral service to persons in need of help connecting with various free or low-cost health and human service providers.

211 San Bernardino County, is available 24 hours a day, 7 days a week by dialing 2-1-1 in San Bernardino County or by dialing the toll-free number at 1-888-435-7565. Bilingual staff is available to assist English and/or Spanish speaking callers. However, if another language is need, 211 San Bernardino County, utilizes a translation line that can assist in disseminating information in over 150 languages. 211 San Bernardino County is also available by going to http://211sb.org.

Within the City’s ESG written agreement, the Subrecipient must agree to coordinate and integrate, to the maximum extent practicable, ESG-funded activities with other programs targeted to homeless people in the area covered by the Continuum of Care or area over which the services are coordinated to provide a strategic, community-wide system to prevent and end homelessness.

3.Identify the process for making sub-awards and describe how the ESG allocation available to private nonprofit organizations (including community and faith-based organizations).

The City of San Bernardino will competitively procure for services that will meet the goals and objectives of the City’s Consolidated Plan and San Bernardino Continuum of Care’s (CoC) 10-Year Plan to End Homelessness.

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The application review process has three phases. In the first phase, all applications are reviewed by the Community and Economic Development Department staff for completeness and eligibility under the Federal program guidelines. Eligible programs and projects are then reviewed according to their contribution to the goals and objectives of the City’s approved Consolidated Plan and CoC’s 10-Year Plan to End Homelessness. Preference is given if a program has the ability to help the City meet federal program objectives and local priorities. Organizational capacity, experience, and past performance are also considered.

Based on this review, Community and Economic Development Department staff prepares general funding recommendations. Lastly, a public hearing before City Council will be held to consider the 2021-2022 Draft Annual Action Plan. The City Council adopts the Annual Action Plan, which acts as the CDBG, HOME and ESG program annual budget. Upon completion of this process, the City forwards the adopted Annual Action Plan to the U.S. Department of Housing and Urban Development for approval.

4.If the jurisdiction is unable to meet the homeless participation requirement in 24 CFR 576.405(a), the jurisdiction must specify its plan for reaching out to and consulting with homeless or formerly homeless individuals in considering policies and funding decisions regarding facilities and services funded under ESG.

The City of San Bernardino attends and participates, on a quarterly basis, the Interagency Council on Homelessness (ICH). The ICH is a vital component of the San Bernardino County Homeless Partnership. The ICH serves as the policy making body of the Partnership and oversees the implementation of the 10-Year Strategy to End Homelessness in San Bernardino County. The ICH will focus on resource development to insure the funding of homeless projects and 10-Year Strategy recommendations. In addition, ICH serves as the HUD-designated primary decision-making group and oversight board of the City of San Bernardino & County (hereinafter referred to as the “geographic area”) Continuum of Care for the Homeless (CA-609) funding process, (hereinafter referred to as the “CoC”). There are currently former homeless individuals that participate in the policy making decisions of the CoC, regarding facilities or services that receive ESG funding from the City.

The ICH is charged with directing, coordinating, and evaluating all of the activities related to implementation of the 10-Year Strategy to End Homelessness. The ICH members are directed to report progress on the implementation of the 10-Year Strategy to their colleagues and constituents following each meeting of the ICH. The ICH will promote collaborative partnerships among homeless providers and stakeholders throughout San Bernardino County in order to carry out implementation activities and will develop resources to insure the funding of homeless projects and 10-Year Strategy

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recommendations.

As the oversight board of the CoC, the ICH duties are: 1. To ensure that the CoC is meeting all of the responsibilities assigned to it by the United States Department of Housing and Urban Development (HUD) regulations including: a. The operation and oversight of the local CoC; b. Designation and operation of a Homeless Management Information System (HMIS); i. Designate a single HMIS for the geographic area; ii. Designate an eligible applicant to manage the CoC’s HMIS, which will be known as the HMIS Lead; iii. Ensure consistent participation of recipients and sub-recipients of CoC and Emergency Solutions Grant (ESG) funding in the HMIS. iv. Ensure the HMIS is administered in compliance with all requirements prescribed by HUD. c. The development of a CoC plan that includes outreach, engagement, assessment, annual gap analysis of the homeless needs and services available, prevention strategies, shelter and housing supportive services, and HUD CoC annual and biennial requirements; 2. To represent the relevant organizations and projects serving homeless subpopulations; 3. To support homeless persons in their movement from homelessness to economic stability and affordable permanent housing within a supportive community; 4. To be inclusive of all the needs of all of geographic area’s homeless population, including the special service and housing needs of homeless sub-populations; 5. To facilitate responses to issues and concerns that affect the agencies funded by the CoC that is beyond those addressed in the annual CoC application process; 6. To consult with recipients and sub-recipients of CoC funding to establish performance targets appropriate for population and program type, monitor recipient and sub- recipient performance, evaluate outcomes, and take action against poor performers; and 7. To evaluate outcomes of projects funded under the County of San Bernardino CoC program including the ESG.

5.Describe performance standards for evaluating ESG.

ESG Subrecipients must demonstrate the financial management and programmatic expertise to successfully develop, design, implement, and monitor the ESG-funded activities.

ESG Subrecipients must participate in HMIS and be able to meet all federal, State of California, and City of San Bernardino requirements relative to the ESG program, specifically those concerning equal opportunity and fair housing, affirmative marketing, environmental review, displacement, relocation, acquisition, labor, lead-based paint, conflict of interest, debarment and suspension, and flood insurance.

Under the City ESG agreement, ESG Subrecipient are required to conduct an initial evaluation to determine the eligibility of each individual or family’s eligibility for ESG assistance and the amount and types of assistance the individual or family needs to regain stability in permanent housing.

All subrecipient providers should meet or exceed project quality goals established by HUD and CoC

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guidelines which include the following: At least 80 percent of project participants either remained in permanent housing or exited to permanent housing; At least 20 percent or more of project participants have employment income (or other sources such as SSI and/or SSDI, for those who are not employable); At least 54 percent of project participants increased their income from sources other than employment in a given operating year; At least 56 percent of project participants obtained mainstream benefits; and 100 percent of the project participants came from the street or other locations not meant for human habitation, emergency shelters, or safe havens. In addition, PSH providers must: Implement a housing first approach. Fill vacant beds with only chronically homeless persons.

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Attachments

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Citizen Participation Comments

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Grantee SF-424's and Certification(s)

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SUBSTANTIAL AMENDMENT
2022-2023 ANNUAL ACTION PLAN

HOME-ARP FUNDS
2 2
1 7
Background:

On March 11, 2021, the American Rescue Plan Act of 2021 (ARP) was passed to provide support for individuals experiencing homelessness, are at risk of homelessness, and vulnerable populations through housing and supportive services. Through ARP, the City of San Bernardino was eligible to receive additional funds through the HOME Investment Partnerships Program (HOME-ARP) administered through the United States Department of Housing and Urban Development (HUD). Eligible activities include providing supportive services, affordable housing, non-congregate shelter (NCS), and tenant-based rental assistance (TBRA). Per 24 CFR 570.200(h) and 24 CFR 92.212(b), the City is required to amend the 2022-2023 Annual Action Plan as a request for HOME-ARP pre-award costs.

In accordance with the City’s Citizen Participation Plan, a substantial amendment to the Annual Action Plan is required when the City:
•Changes allocation priorities
•Expects to carry out a new or existing activity while using funds that has not been covered by the Consolidated Plan or included in the approved Action Plan;
•Change the purpose, scope, location, or beneficiaries of an activity (Any activity whose funding allocation is increased by more than 50% will constitute a substantial amendment.

Proposed Amendment to 2022-2023 Annual Action Plan:

The City will allocate additional $5,058,437 of HOME-ARP funds to assist in the financial support needed to design, construction, and operations of a Navigation Center. The Navigation Center will assist City’s vulnerable homeless populations with income stabilization services, job training, mental health services, case management and non- congregate shelter units.

These activities are eligible under HOME-ARP and would further the City’s support

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HOME-ARP FUNDS
2 2
1 7
unhoused populations including homeless veterans, victims of domestic violence, those with mental and physical challenges and needs as well as underserved populations.

Public Comments:

The City of San Bernardino will address and incorporate comments received during the 30-day public commenting timeframe between February 9, 2023, and March 11, 2023. A public hearing will be held on March 1, 2023. After public comments are received, the item will go before Council on March 15, 2023 for final approval.

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Michael Baker International

DRAFT HOME-ARP Allocation Plan
FEBRUARY 3, 2023

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City of San Bernardino HOME-ARP Allocation Plan
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Consultation.....................................................................................................................................2 Consultations Summary...............................................................................................................3 Homeless as defined in 24 CFR 91.5...........................................................................................4 At Risk of Homelessness as defined in 24 CFR 91.5 ..................................................................4 Fleeing, or Attempting to Flee, Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking ..................................................................................................................5 Other populations requiring services or housing assistance to prevent homelessness and other populations at greatest risk of housing instability .......................................................................5 Public Participation..........................................................................................................................5 Needs Assessment and Gaps Analysis.............................................................................................6 Describe the size and demographic composition of qualifying populations within the PJ’s boundaries: ...................................................................................................................................7 Homeless as defined in 24 CFR 91.5.......................................................................................7 At Risk of Homelessness as defined in 24 CFR 91.5 ..............................................................8 Fleeing, or Attempting to Flee, Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking...............................................................................................9 Other populations requiring services or housing assistance to prevent homelessness and other populations at greatest risk of housing instability ...................................................................9 Describe the unmet housing and service needs of qualifying populations, including but not limited to:.................................................................................................................................9 Identify and consider the current resources available to assist qualifying populations, including congregate and non-congregate shelter units, supportive services, TBRA, and affordable and permanent supportive rental housing: ...........................................................10 Identify any gaps within the current shelter and housing inventory as well as the service delivery system: .....................................................................................................................11 Identify the characteristics of housing associated with instability and an increased risk of homelessness if the PJ will include such conditions in its definition of “other populations” as established in the HOME-ARP Notice:.................................................................................12 Identify priority needs for qualifying populations:.................................................................12 Explain how the level of need and gaps in its shelter and housing inventory and service delivery systems based on the data presented in the plan were determined:.........................13 HOME-ARP Activities ..................................................................................................................13 Describe the method for soliciting applications for funding and/or selecting developers, service providers, subrecipients and/or contractors and whether the PJ will administer eligible activities directly:.....................................................................................................13

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City of San Bernardino HOME-ARP Allocation Plan
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0 Use of HOME-ARP Funding...................................................................................................13 Additional narrative, if applicable:.......................................................................................14 HOME-ARP Production Housing Goals........................................................................................14 Preferences.....................................................................................................................................14 HOME-ARP Refinancing Guidelines ............................................................................................15

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City of San Bernardino HOME-ARP Allocation Plan
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Before developing its plan, a PJ must consult with the CoC(s) serving the jurisdiction’s geographic area, homeless and domestic violence service providers, veterans’ groups, public housing agencies (PHAs), public agencies that address the needs of the qualifying populations, and public or private organizations that address fair housing, civil rights, and the needs of persons with disabilities, at a minimum. State PJs are not required to consult with every PHA or CoC within the state’s boundaries; however, local PJs must consult with all PHAs (including statewide or regional PHAs) and CoCs serving the jurisdiction.

Summarize the consultation process:

The City selected relevant service providers in the area that are best suited to provide detailed information on the service provision landscape for each qualifying population throughout the City.

Each group was consulted using a uniform set of interview questions, discussing needs for all qualifying populations. The wide range of groups included fair housing groups, public housing agencies, veterans’ groups, domestic violence groups, public organizations addressing the needs of qualifying populations, and organizations addressing fair housing, civil rights, and the needs of persons with disabilities.

List the organizations consulted, and summarize the feedback received from these entities.

Agency/Org
Consulted
Type of
Agency/Org
Qualifying
Population
Served
Method of
Consultation Feedback
Celebration City
Community
Development
Private Agency All Interview See
Summary.

Lutheran Social
Services Southern
California
Homeless
Services
All Interview See
Summary.

Partners Against
Violence
Domestic
Violence
All Interview See
Summary.

Step Up on Second Homeless
Services,
Agency that
Addresses Fair
Housing/Civil
Rights/Persons
with Disability
Homeless, At-
Risk of
Homelessness
Interview See
Summary.

Reentry
Community and
Housing
Supportive
Fair Housing,
Homeless
Services
Homeless, At-
Risk of
Homelessness,
Other
Interview See
Summary.

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0 Services Populations
City of San
Bernardino
Public Agency All Interview See
Summary.

Deborah Robertson
Foundation
Private Agency ??? Interview See
Summary.

City of San
Bernardino Police
Public Agency Homeless,
Victims of
Domestic
Violence
Interview See
Summary.

San Bernardino
County Continuum
of Care
Continuum of
Care
All Interview See
Summary.

Veterans’
Group
Interview See
Summary.

Public Housing
Authority
Interview See
Summary.

Consultations Summary
Interviews were conducted with service providers throughout the City using a uniform question set. The goal was to establish characteristics, needs, and gaps for the City’s current qualifying populations.

When asked to rank the needs of qualifying populations, the top choice across all interviews was tied between non-profit operating funding and non-profit capacity building. This was closely followed by supportive services. These needs helped to guide this allocation. The least common choice of need for all interviews was Tenant-Based Rental Assistance (TBRA).

The most commonly cited gap within service provision or housing inventory was found to be the lack of shelter beds. This common acknowledgement heavily aligns with forthcoming data in the Needs Assessment and Gap Analysis, which shows a large gap in shelter resources. Almost 97% of the City’s homeless are thus unsheltered. A few other gaps that were commonly cited were also related to this issue, including Lack of Low-Barrier, Non-Congregate Shelters for Individuals and Families, and Lack of Housing/Homeless Prevention Programs.

The top three priority needs specifically for supportive services, according to respondents, were Drug Abuse/Addiction Services, Mental Health Services, and Life Skills Training. Once again, this adds strength to data in the following section, which shows that of the 989 homeless individuals in the City, 831 struggle with a disability or health condition, including mental health disabilities and substance use disabilities, among others.

Organizations that were consulted indicated a rate of 62% likelihood to apply for Homeless Prevention Services Funding, but they were less favorable for housing counseling, which had a 46% likelihood to apply for Housing Counseling Funding. All organizations except for 3 said

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0 housing counseling services such as housing search, landlord/tenant rights, budgeting, and credit education/repair programs have a significant impact on the community. One organization indicated No, and two others indicated that they were Not Sure. Organizations stated that help is needed from foundations and individual donors to help fill fundraising gaps that grants may not cover, and they stated a need for transitional housing.

When asked about what sorts of projects would benefit the City, respondents most commonly said emergency housing was needed, but also that street outreach programs and engagement teams may be useful for the City.

For consultation results on each Qualifying Population, see the summaries below:

Homeless as defined in 24 CFR 91.5
Nearly half of all consultations (46%) dealt directly with self-identified Homeless Service Providers, but the needs of this population were present in all consultations. Specifically, consultations pointed towards an additional need of support across shelter and housing programs.

Lack of low-barrier shelters, and lack of shelters beds were two of the top three identified largest gaps for all consultations
At Risk of Homelessness as defined in 24 CFR 91.5
Homelessness Prevention Services were the second most identified priority need for qualifying populations across all consultations, trailing behind Lack of Shelters, and 52% indicated they would be looking to apply for additional Homeless Prevention Services funding to fill existing gaps in capacity. This would help extend the existing shelter programs and provide additional services. These findings helped identify the shelter program as a recipient of this allocation.

Additionally, 90+% of consultations saw organizations state that housing counseling services have a significant impact on our community. This specifically includes services such as housing search, landlord/tenant rights, budgeting, and credit education/repair programs.

Fleeing, or Attempting to Flee, Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking
When consultations shifted to identifying needs for specific supportive services, drug abuse/addiction services and mental health services wer the most commonly cited response.

Additionally, domestic violence services was cited as a top five need for supportive services.

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0 Other populations requiring services or housing assistance to prevent homelessness and other populations at greatest risk of housing instability Drug Abuse/Addiction Services were the most commonly cited need for supportive services while Life Skills Training and services for Persons with Disabilities were commonly cited need for supportive services across all consultations.

Additional Notes:

Veterans agencies in the San Bernardino City area and Housing Authority of the County of San Bernardino have been contacted numerous times to participate in consultations, but the City has yet to receive a response.

Public Participation
PJs must provide for and encourage citizen participation in the development of the HOME-ARP allocation plan. Before submission of the plan, PJs must provide residents with reasonable notice and an opportunity to comment on the proposed HOME-ARP allocation plan of no less than 15 calendar days. The PJ must follow its adopted requirements for “reasonable notice and an opportunity to comment” for plan amendments in its current citizen participation plan. In addition, PJs must hold at least one public hearing during the development of the HOME-ARP allocation plan and prior to submission.

For the purposes of HOME-ARP, PJs are required to make the following information available to the public:

The amount of HOME-ARP the PJ will receive, $5,058,437
The range of activities the PJ may undertake: Development of Non-Congregate Shelter Describe the public participation process, including information about and the dates of the public comment period and public hearing(s) held during the development of the plan:

San Bernardino conducted wide stakeholder interview and survey process with the primary consultation groups as well as other social service and interested organizations. Thirteen stakeholders participated in a survey process. Public meeting and comment period are as follows:
•Public comment period: February 9, 2023, to March 11, 2023 •Public hearing: March 1, 2023
•Item returns to Council for approval: March 15, 2023

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City of San Bernardino HOME-ARP Allocation Plan
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A PJ must consider any comments or views of residents received in writing, or orally at a public hearing, when preparing the HOME-ARP allocation plan. Public meetings were held with stakeholders, online survey and public comment in area newspapers and final public hearing.

Summarize the comments and recommendations received through the public participation process:

The public comment period and public hearing are yet to be held.

Summarize any comments or recommendations not accepted and state the reasons why:

All comments were accepted.

Needs Assessment and Gaps Analysis
PJs must evaluate the size and demographic composition of qualifying populations within its boundaries and assess the unmet needs of those populations. In addition, a PJ must identify any gaps within its current shelter and housing inventory as well as the service delivery system. A PJ should use current data, including point in time count, housing inventory count, or other data available through CoCs, and consultations with service providers to quantify the individuals and families in the qualifying populations and their need for additional housing, shelter, or services.

The PJ may use the optional tables provided below and/or attach additional data tables to this template.

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City of San Bernardino HOME-ARP Allocation Plan
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0 Homeless Needs Inventory and Gap Analysis Table
Homeless
Current Inventory (County) Homeless Population (City) Gap Analysis Family Adults Only Vets Family Adults Only
# of
Beds
# of
Units
# of
Beds
# of
Units
# of
Beds
Family
HH (at
least 1
child)
Adult
HH
(w/o
child)
Vets Victims
of DV # of
Beds
# of
Units
# of
Beds
# of
Units
Emergency
Shelter 282 90 448 - 0
Transitional
Housing 199 60 153 - 15
Permanent
Supportive
Housing
714 240 977 - 776
Other Permanent
Housing -
Sheltered
Homeless - 32 - -
Unsheltered
Homeless 989 166 166
Current Gap - - 811 -
Suggested Data Sources: 1. Point in Time Count (PIT); 2. Continuum of Care Housing Inventory Count (HIC); 3.

Consultation
Housing Needs Inventory and Gap Analysis Table
Non-Homeless
(City)
Current Inventory Level of Need Gap Analysis
# of Units # of Households # of Households
Total Rental Units 31,175
Rental Units Affordable to HH at 30% AMI
(At-Risk of Homelessness) 3,105
Rental Units Affordable to HH at 50% AMI
(Other Populations) 8,530
0%-30% AMI Renter HH w/ 1 or more severe
housing problems
(At-Risk of Homelessness)
8,295
30%-50% AMI Renter HH w/ 1 or more
severe housing problems
(Other Populations)
3,385
Current Gaps 8,635
Suggested Data Sources: 1. American Community Survey (ACS); 2. Comprehensive Housing Affordability Strategy (CHAS)

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Homeless as defined in 24 CFR 91.5
As identified in the 2022 Point In Time report prepared by the San Bernardino County Homeless Partnership, a total of 1,021 unhoused individuals lived in the City of San Bernardino. Of the 1,025 unhoused, 989 were unsheltered (96.9 percent) and 32 were sheltered (3.1 percent). Unsheltered homeless are individuals or families not housed in a shelter and whose primary nighttime residence is public/private place not designed for or ordinarily used as a regular sleeping accommodation for human beings. These are people living on the street or in makeshift shelters (tents, boxes), motorhomes (RV), vans, or cars. Sheltered homeless are individuals or families living in a supervised operated shelter to provide temporary living arrangement.

Of the 989 unsheltered homeless in the City, volunteers were able to administer 537 surveys for additional information. This included demographic data and other important subpopulation information.

Overall, 69.3 percent of individuals were male while 30.0 percent were female. The most common races were White (48.2 percent), Black or African American (24.4 percent) and Multiple Races (17.1 percent). In total, 39.1 percent of individuals were Hispanic or Latino. For age distribution, the most common age bracket was 25-39 (37.8 percent), followed by 40-49 (21.6 percent) and 55- 61 (14.2 percent). Seniors (62+) represented 10.4 percent of the homeless population.

One-hundred forty-four (144) individuals became homeless for the first time during the past 12 months (26.8 percent). Additionally, disabilities are a common issue within the population.

Specifically, 57.9 percent indicated a substance use problem disability, 44.1 percent indicated a mental health disability, 23.8 percent indicated a physical disability, and 11.9 percent indicated developmental disability.

Other data points showed that 59 percent of those surveyed were Chronically Homeless. Also, 16.9 percent have a chronic health condition that is life threatening such as heart, lung, liver, kidney, or cancerous disease. And finally, there were 5.6 percent of individuals that were Veterans, 3.5 percent of individuals have HIV/AIDS, and 21 percent were released from a correctional institution withing the past year.

At Risk of Homelessness as defined in 24 CFR 91.5
As shown above in the Housing Needs Inventory and Gap Analysis Non-Homeless Table, there are significant totals of at-risk homeless within San Bernardino. First, there are a total of 3,105 occupied or for-sale rental units within the City that are affordable for households making 0-30% AMI. However, there are 10,495 renters in the City in this income bracket. That creates a gap of 7,390 households that will struggle to find housing that is affordable within this income group, which is defined as at-risk of homelessness. Additionally, there are 5,425 occupied or for-sale rental units within the City that are affordable for households making 30-50% AMI. However,

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0 there are 6,670 renters in the City in this income bracket. That creates a gap of 1,245 households that will struggle to find housing that is affordable within this income group. The total of both income groups creates a total gap of 8,635 affordable units.

There is also data indicating severe housing problems for renters within these groups, which puts some households at the risk of homelessness. Of these 10,495 renters in the 0-30% income group,

79.0 percent experience a severed housing problem, such as severe housing cost burden of 50%.

Additionally, there are 6,670 renters in the 30-50% income group, and 50.7 percent of these renters experience a severe housing problem. For San Bernardino, households in these groups are more likely to be at-risk-of-homelessness.

Fleeing, or Attempting to Flee, Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking
The Point in Time count report specified 36 individuals that were victims of domestic violence within the County, and there were 36 of these individuals specifically in the City of San Bernardino. This population has increased since 2020.

Other populations requiring services or housing assistance to prevent homelessness and other populations at greatest risk of housing instability As described in San Bernardino’s Consolidated Plan, supportive housing services are needed for the City’s elderly (26,174 individuals, 11.9% of the City population), persons with disabilities (26,498 individuals, 12.5% of the City population), developmentally disabled persons, veterans (6,062 individuals, 3.8% of the City population), persons with addictions, and those living with HIV/AIDS. Elderly persons may require long-term supportive housing that includes long-term assisted living, transportation, and nursing care. While many disabled persons can live and work independently within a conventional housing environment, more severely disabled individuals require a group living environment where supervision is provided. The most severely disabled individuals may require an institutional environment where medical attention and physical therapy are provided. Those suffering from substance abuse might require counseling or case management and a short-term housing solution while undergoing rehabilitation. Other more challenging or on- going conditions might require supportive services that include long-term assisted living, as well as transportation and nursing care. Persons with HIV are often able to live independently as advances in medical treatment enable persons with HIV to lead normal lives. However, persons living with AIDS may require long-term supportive housing as their health conditions deteriorate and impact their ability to work. The Point-in-Time count identified numerous individuals in these populations that were homeless within the City of San Bernardino, as stated previously. There were 30 homeless veterans in the City, in addition to 19 homeless HIV/AIDS individuals, and 831 individuals with either a physical disability, developmental disability, mental health disability, substance use disability, or a chronic life-threatening heart condition.

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0 Describe the unmet housing and service needs of qualifying populations, including but not limited to:
•Sheltered and unsheltered homeless populations;
•Those currently housed populations at risk of homelessness; •Other families requiring services or housing assistance or to prevent homelessness; and, •Those at greatest risk of housing instability or in unstable housing situations:

While homelessness is a complex problem with many causes, the high cost of housing is a significant contributor. Rising housing costs that have exceeded growth in wages, particularly for low-income households, put San Bernardino residents at risk of housing instability and homelessness. To measure the number of homeless persons in San Bernardino, the City relies on point in time surveys prepared by the San Bernardino Homeless Partnership. Population estimates for people experiencing homelessness are difficult to quantify. Census information is often unreliable due to the difficulty of efficiently counting a population without permanent residences.

Given this impediment, local estimates of the homeless and anecdotal information are often the source of population numbers. As stated earlier however, there is a population of 1,021 homeless individuals in San Bernardino as of the 2022 Point in Time Count, and a potential gap of affordability for 8,635 at-risk households. There is also an extremely high proportion of at-risk families (79%) that already experience severe housing problems. These populations are in the most unstable housing situations.

In addition to the at-risk population, there are gaps facing the existing homeless community. This is shown by the vast differences between the unsheltered and sheltered population within the City.

As stated previously, there are 989 unsheltered in the City, opposed to only 32 sheltered. There is a lack of shelter beds for these individuals in the City.

There also appears to be a lack of space in the City to house other populations, including those with disability, those fleeing from domestic violence, and veterans. In the City alone, there are 36 unhoused victims of domestic violence, 30 veterans, and 831 disabled/health condition individuals.

This shows the gaps in the shelter network, and a lack of services for these individuals.

Identify and consider the current resources available to assist qualifying populations, including congregate and non-congregate shelter units, supportive services, TBRA, and affordable and permanent supportive rental housing:

The City of San Bernardino assists homeless populations through funding supportive service providers in the community. The City has traditionally provided funding through the ESG program to support services that include emergency shelter, rapid rehousing, homelessness prevention, street outreach, and HMIS costs.

According to the City’s Consolidated Plan, many organizations in San Bernardino, including businesses, civic groups, corporations, educational institutions, faith-based organizations, local government, and nonprofit agencies, provide financial assistance, food, health care, clothing, legal

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0 assistance, public assistance, rental assistance, and utility assistance at little or no cost. Mainstream benefit programs such as CalFresh, Medicaid/Medi-Cal, Social Security Disability Income (SSDI), Supplemental Security Income (SSI), and Veteran’s Benefits are available to homeless persons in the City.

Additionally, the Homeless Provider Network (HPN) acts as an advocate for homeless populations and those at risk of becoming homeless. The HPN facilitates the collaboration between the public and private sectors to coordinate services to assist and prevent homelessness. Member organizations of the HPN meet monthly.

The City works with various agencies and provides referrals for services to homeless populations and those at risk of homelessness:
•Community Action Partnership of San Bernardino County – provides homeless persons and those at risk of homelessness with temporary rental assistance, financial literacy education, and linkages to other support services.
•Family Service Association of Redlands – provides emergency shelter (motel vouchers), wraparound services, and case management to prevent homelessness. •Lutheran Social Services – provides emergency shelter as a "bridge" to permanent housing, and wrap-around services to help homeless men 18 years and older to achieve self- sufficiency.
•Step Up on Second – provides supportive services which begin with engagement and street outreach activities.
•The Salvation Army Hospitality House – provides emergency shelter, referrals to permanent housing services, and meals to families and single females experiencing homelessness.
•Other agencies in the County providing services to address homelessness include:
oCatholic Charities San Bernardino
oHigh Desert Homeless Services, Inc.
oVictor Valley Family Resource Center
Time for Change Foundation provides emergency shelter services to women and children as well as permanent housing. Helping Hands Pantry, a food bank, serves the communities of the County of San Bernardino; programs include a mobile food pantry and the College Student Food Assistance Program for students who do not have the resources to buy enough food.

Identify any gaps within the current shelter and housing inventory as well as the service delivery system:

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0 As shown in the Housing Needs Inventory and Gap Analysis Homeless Table, there is a lack of Emergency Shelter, Transitional Housing, and Permanent Supportive Housing in the City. Within this area, there are only 45 emergency shelter beds, transitional housing beds, and Permanent Supportive Housing beds within this area despite there being 989 unsheltered homeless. This leaves a gap of 957 beds for individuals. As stated in the other Non-Homeless Table, there is a gap of affordable housing options for 8,635 households.

Identify the characteristics of housing associated with instability and an increased risk of homelessness if the PJ will include such conditions in its definition of “other populations” as established in the HOME-ARP Notice:

These populations would include Seniors, Large Families, Persons with Disabilities, Veterans, Victims of Domestic Violence, Persons with HIV/AIDS, and Single Parents. These populations align with characteristics of housing need, as identified by the Consolidated Plan, including but not limited to:

Seniors – Due to their fixed incomes, increasing medical needs and mobility challenges, seniors require accessible housing in close proximity to healthcare facilities and ease of transit. Seniors also need rehabilitation services to maintain and improve the condition of their housing.

Additionally, seniors often need rental assistance through housing vouchers due to their fixed incomes.

Disabled - Disabled individuals would require not only housing assistance in the form of rental and mortgage subsidies, but also group housing with accessibility features that would be ideal for people with mobility issues and sensory limitations. Their housing needs will also require ease of access to transit, shopping and healthcare facilities. They may also require specialized medical care and education, especially for the developmentally disabled. Additionally, disabled individuals who have been discharged from medical/healthcare facilities might also need transitional housing.

Large Families and Families with Female Heads of Households - Large families need low-cost housing that require a minimum of 3 bedrooms to accommodate all members in the home sufficiently. Families with Female Heads of Households may not only require affordable housing assistance, but those with children also need accessibility to healthcare facilities and educational institutions. Child Care assistance for those who are not of school-going age may also be required.

These same needs may also apply to large families
Identify priority needs for qualifying populations:

The Consolidated Plan highlights current needs for qualifying populations and needs for the entire City. This includes identified priority needs to:
•Preserve and Rehabilitate Housing

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0 •Expand Homeownership
•Provide Homeless and Homeless Prevention Services
•Create New Affordable Rental Housing
•Promote Economic Development (Micro-Enterprise)
•Improve Facilities and Infrastructure
•Pursue Fair Housing
Explain how the level of need and gaps in its shelter and housing inventory and service delivery systems based on the data presented in the plan were determined:

These gaps were determined from data provided by Point in Time Counts, Housing Inventory Counts, American Community Survey (ACS) Data, and Comprehensive Housing Affordability Strategy (CHAS) Data. The first two sources showed the existing homeless populations, and the existing housing they may access. The next two data sources identified additional populations based on income and housing problems. These populations are at high risk of becoming homeless.

There is a need for housing inventory and service systems to account for these at-risk populations as well, to avoid becoming overrun.

HOME-ARP Activities
Describe the method for soliciting applications for funding and/or selecting developers, service providers, subrecipients and/or contractors and whether the PJ will administer eligible activities directly:

The City of San Bernardino intends to work with operators to design, construct, and operate a shelter and navigation center to be located in the City.

If any portion of the PJ’s HOME-ARP administrative funds were provided to a subrecipient or contractor prior to HUD’s acceptance of the HOME-ARP allocation plan because the subrecipient or contractor is responsible for the administration of the PJ’s entire HOME-ARP grant, identify the subrecipient or contractor and describe its role and responsibilities in administering all of the PJ’s HOME-ARP program:

Not applicable.

PJs must indicate the amount of HOME-ARP funding that is planned for each eligible HOME- ARP activity type and demonstrate that any planned funding for nonprofit organization operating assistance, nonprofit capacity building, and administrative costs is within HOME-ARP limits. The following table may be used to meet this requirement.

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Funding Amount Percent of the
Grant
Statutory
Limit
Supportive Services
Acquisition and Development of Non-
Congregate Shelters
$4,299,672
Tenant Based Rental Assistance (TBRA)
Development of Affordable Rental Housing
Non-Profit Operating % 5%
Non-Profit Capacity Building % 5%
Administration and Planning $758,765 % 15%
Total HOME ARP Allocation $5,058,437
Additional narrative, if applicable:

Describe how the characteristics of the shelter and housing inventory, service delivery system, and the needs identified in the gap analysis provided a rationale for the plan to fund eligible activities:

The City of San Bernardino intends to allocate its HOME-ARP funds evenly to one activity:
1) Non-Congregate Shelter and Navigation Center ($4,299,672) The city owns a 2.48 acre property that will be adaptively reused and converted for a non- congregate homeless shelter that will include space for needed homeless and homeless prevention services. The City intends to competitively bid through an RFP process the project’s design planning and engineering, and construction. The City also intends to interview area social services and shelter operators to find a qualified operator for the shelter. The Navigation Center will include space for a variety of operation needs and needed services:
•Identification documentation, mailbox, storage locker, and pet kennel area •Income stabilization guidance
•Job training/placement workstation and training area
•Office space for mental health services, substance abuse recovery, case management, and housing navigation
HOME-ARP Production Housing Goals
Estimate the number of affordable rental housing units for qualifying populations that the PJ will produce or support with its HOME-ARP allocation:

Not Applicable

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Not Applicable
Preferences
Identify whether the PJ intends to give preference to one or more qualifying populations or a subpopulation within one or more qualifying populations for any eligible activity or project:

Existing Coordinated Entry System (CES) preferences will be used, pursuant to the operator’s current waiting list.

If a preference was identified, explain how the use of a preference or method of prioritization will address the unmet need or gap in benefits and services received by individuals and families in the qualifying population or category of qualifying population, consistent with the PJ’s needs assessment and gap analysis:

The preference of CES is consistent with the Needs Assessment and Gap Analysis, this will help fill the gap of shelter beds in the City.

If a preference was identified, describe how the PJ will use HOME-ARP funds to address the unmet needs or gaps in benefits and services of the other qualifying populations that are not included in the preference:

The Plan is also supporting navigation services that will be open to all qualifying populations to help fill gaps and unmet needs. The property operations shall work in tandem with the Continuum of Care and the Coordinated Entry System to with regards to case selection.

HOME-ARP Refinancing Guidelines
If the PJ intends to use HOME-ARP funds to refinance existing debt secured by multifamily rental housing that is being rehabilitated with HOME-ARP funds, the PJ must state its HOME- ARP refinancing guidelines in accordance with. The guidelines must describe the conditions under with the PJ will refinance existing debt for a HOME-ARP rental project, including:
•Establish a minimum level of rehabilitation per unit or a required ratio between rehabilitation and refinancing to demonstrate that rehabilitation of HOME-ARP rental housing is the primary eligible activity
Not Applicable

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0 •Require a review of management practices to demonstrate that disinvestment in the property has not occurred; that the long-term needs of the project can be met; and that the feasibility of serving qualified populations for the minimum compliance period can be demonstrated.

Not Applicable
•State whether the new investment is being made to maintain current affordable units, create additional affordable units, or both.

Not Applicable
•Specify the required compliance period, whether it is the minimum 15 years or longer.

Not Applicable
•State that HOME-ARP funds cannot be used to refinance multifamily loans made or insured by any federal program, including CDBG.

Not Applicable
•Other requirements in the PJ’s guidelines, if applicable:

Not Applicable

Packet Pg.
759

Resolution No. 2023-028

Resolution No. 2023-028
February 1, 2023

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Mayor and City CouncilMarch 1, 2023

Mayor and City Council
March 1, 2023